Voluntary Separation Incentive Payment


Q. What part of repaying the federal VSIP goes back toward your retirement? Or is it considered as a debt paid back to the government?

A. It is a debt paid back to the government. And here are the rules: If you return to work for the government within five years of the date you qualified for a Voluntary Separation Incentive Payment, you must repay the entire amount before the first day you report for your new job.


About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

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