Q: If offered a buyout, can an employee quit or resign from federal employment even though the employee is eligible for an immediate annuity? Can the buyout payment be extended into the next calendar year, or can the employee choose to retire early in a new calendar year and accept the buyout? How long after accepting a buyout can an employee who left federal employment, under conditions other then retirement, be rehired into federal service? A: If you are offered a Voluntary Separation Incentive Payment, the fact that you are eligible to retire would have no affect of your accepting…
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Q: With all of the angst and uncertainty in Civil Service (i.e., pay freeze, pay retention, prospect of having to contribute more into retirement fund, etc.), I decided the heck with it and submitted my retirement papers on July 28. I will be 62 on Nov. 3 and in December will have nine years of federal service. If my DoD agency should offer a buyout in the next two or three months like several other federal departments are starting to do, am I eligible to apply for it, or would I have to pull my papers and then resubmit them?…
Q. Can I get a buyout with seven years to go before retirement? A. Any employee who is offered a voluntary separation incentive is free to accept it, whether or not he is eligible to retire. The purpose of the offer is to get employees to leave who wouldn’t do so without the incentive. To also be eligible to retire would require that you meet one of the following age and service criteria: age 50 with 20 years of service or at any age with 25.
Q. I am 58 with 20 years of service. In January of this year, I transferred from a permanent employee to temporary. I was told at first that I was eligible for the early retirement/buyout program. Later, I was told I was not because I am now a temporary employee. This doesn’t seem right. I’ve put in my time. I have the age. I’d like to know if perhaps I really am eligible for the early retirement and buyout. A. No, you aren’t eligible. Because you are in a temporary position, you fail the first criterion to receive a voluntary separation…
Q. I am a Civil Service Retirement System federal employee who is considering taking the Voluntary Early Retirement Authority/Voluntary Separation Incentive Pay offered if I am approved. Are you taxed at a higher percentage rate on the $25,000 than you are taxed on your regular salary? According to the tax bracket table, my salary is taxed at 25 percent or 28 percent. A. Buyout incentives are taxed as ordinary income, just like your wages.
Q. I am 54 years old,and have 34 years’ service. I don’t want the early-out my agency is offering. However, since my agency is offering buyouts, can I get the buyout at only 54 years old? A If a buyout is offered, you can accept it at any age. However, unless you meet the age and service requirements to retire, you’d have to take the money and apply for a deferred retirement at age 62. You could only retire if your agency coupled the buyout with an offer of early retirement.
Q. I am enrolled in CSRS Offset. I received a VERA/VSIP buyout in 2001 and returned to work in 2008. I am 56 years old and have 28 years of federal service. I indicated on the recent survey that I would accept a buyout if offered. I am now told that I am ineligible for a buyout because a person can only receive one buyout in their lifetime. Is there any regulation that states an employee can only receive one buyout? A. Your agency is correct. For confirmation, go to www.opm.gov/employ/html/vsi.htm.
Q. I am an Air Force AFMC civilian employee and am planning to retire by Sept. 30. I have been holding my application pending AFMC’s possibility of offering buyout incentives (VSIP) to eligible retirees. My question is, do I have to wait until a VSIP is actually offered before I submit my retirement application to OPM? A. Yes. The purpose of a buyout incentive is to encourage employees to retire, not to reward those who have already made up their mind and submitted their retirement papers..
Q. Are there any planned buyouts for 2011 or 2012. If so, for which agencies? A. We don’t keep an inventory of current offers, nor do we have advanced knowledge of future ones. I suggest you continue to visit our website and, better yet, subscribe to the Federal Times to be sure you have the latest information.
Q: I work at Kirtland Air Force base, N.M. A Voluntary Separation Incentive Pay/Voluntary Early Retirement Authority survey was sent out in May with a suspense date of May 21 to show interest. I completed the survey and received confirmation that it was received. The VSIP/VERA is scheduled for fiscal year 2011/2012. It’s been more than a month and I haven’t heard anything. I’d like to know for planning purposes; I am a Civil Service Retirement System employee with 33 years’ experience. Are you aware of any details or rulings? A: We haven’t heard a thing.