Q. I may be offered an early-out in May. I have been working for the Army Corps of Engineers for the past 34 years. I’m a CSRS employee. If I take the buyout and have a chance to go work for FEMA or the U.S. Forest Service fighting fires out west this summer, can I do this without paying back the bonus? A. According to the Office of Personnel management, “An employee who receives a [Voluntary Separation Incentive Pay] and later accepts employment for compensation with the Government of the United States within five years of the date of the…
Browsing: VSIP
Q. I am about to retire as a heavy equipment operator for the Department of Public Works. I have been offered a job as a property book manager with a contractor. Will I have to repay their Voluntary Separation Incentive Pay? A. According to the Office of Personnel Management, “An employee who receives a VSIP and later accepts employment for compensation with the Government of the United States within 5 years of the date of the separation on which the VSIP is based, including work under a personal services contract or other direct contract, must repay the entire amount of…
Q. I retired under CSRS at Wright-Patterson Air Force Base, Ohio, on Aug. 31 and I deferred my Voluntary Separation Incentive Payment to 2013. The first installed payment is supposed to be six months after retirement. I have not received any notification that a payment will be made. Do I contact the Office of Personnel Management, or does this payment come from another agency? A. OPM has nothing to do with it. You’ll have to contact your former agency.
Q. What is the difference between VERA and VSIP? A. The Voluntary Early Retirement Authority allows employees to retire early if they are age 50 with 20 years of service or any age with 25. The Voluntary Separation Incentive Payment can be made to any employee who leaves government, whether he is eligible to retire or not. VERAs and VSIPs are often offered at the same time, with the VSIP being narrowly targeted to positions the agency wants to restructure or eliminate.
Q. I worked for the federal government for over 28 years. I retired last year under Voluntary Separation Incentive Pay provisions June 30, 2012. I am considering re-employing/reinstating. Am I eligible to return to work on July 1, one year after retiring? Can I repay the VSIP in cash or in payments? I read once that you can make payments for up to 36 months upon re-employment but am not sure whether this is correct. I understand the VSIP must be paid back before I return to work. Upon re-employing with the government, will I be able to contribute to…
Q. I am a FERS employee with 23+ years of federal service and 62 years old. My agency is offering Voluntary Separation Incentive Pay to eligible employees, including those who are retirement-eligible. Would the incentive reduce the amount of Social Security I can draw this year? A. VSIPs are considered earned income. To find out if accepting one would affect your Social Security benefit, go to www.socialsecurity.gov/retire2/rule.htm and see how the “first year rule” would apply to your situation.
Q. I’ve worked for the U.S. government as a Department of Defense Dependents Schools teacher for 40 years. I am under CSRS and have 230 days of accumulated sick leave. What would this be converted to should I elect to retire this year at age 65? Also can I, should I wish, work as a substitute teacher once retired, even should I be granted Voluntary Separation Incentive Pay? A. Because unused sick leave is added to hours of actual service that weren’t included in the initial annuity computation, you’ll have to do the arithmetic. Go to www.opm.gov/retirement-services/publications-forms/csrsfers-handbook/c050.pdf and scroll to…
Q. I am 62 with 25 years of service. Since Voluntary Separation Incentive Payments have been offered in my organization, I am thinking about taking one. Do I have to take the lump sum, or can the incentive be taken in installments? A. How the payments are made is entirely up to your agency, and, with the exception of the Postal Service, they usually make it in a one-time lump sum.
Q. I will be age 59 in May with 21 years in. How does VERA/VSIP apply? Will I be able to get the special retirement supplement until age 62, and at what age would it start? A. The Voluntary Early Retirement Authority and the Voluntary Separation Incentive Payment are two different things. If an employee is offered a VERA, he can retire at age 50 with 20 years of service or at any age with 25. If he is offered a VSIP, he can accept the money and leave, regardless of whether he is eligible to retire. Because you meet…
Q. With 20 years of federal civilian employment at age 50, would I be eligible for Voluntary Separation Incentive Pay if it’s offered? I am under FERS. A. Yes, because anyone who is offered a VSIP can accept it, whether or not he is eligible to retire. In your case, you have the years and service to both accept the payment and retire.