DOD has civilian buyout, retirement authority

  • Published
  • By Tech. Sgt. David A. Jablonski
  • Air Force Print News
WASHINGTON --  The Department of Defense now has permanent authority to offer civilian employees voluntary early retirements and buyouts (voluntary separation incentives) without having to get Office of Personnel Management approval each year.

The voluntary early retirement and voluntary separation incentive programs are similar to other programs the Air Force has used since 1993. They allow the Air Force to offer employees up to $25,000 to leave the Air Force, and/or take a voluntary early retirement. By exercising these authorities, the Air Force will be able to take reductions in their civilian workforce while minimizing reductions in force, personnel officials said.

These permanent authorities came as part of the new National Security Personnel System.

“These programs may be used to reduce the number of personnel or to restructure the workforce to meet mission objectives,” said Sara Bonilla, chief of the Air Force NSPS project management office. “Because the authority is now permanent, it allows managers greater flexibility in long-range planning. In addition, NSPS included a limit on the total number of VSIPs that can be used in DOD and our allocation this year is 5,873. This does not imply we are downsizing 5,873 civilians or that we must use all of the VSIPs. It just means that, if needed, we could offer up to that number.”

There are no limits for using voluntary early retirements.

“Buyouts allow the Air Force to decrease (its) workforce without resorting to reductions in force, or reshape it without requiring the loss of positions,” Ms. Bonilla said. “In addition to offering a separation incentive to employees eligible for early or optional retirement, it can be also be used for resignations.”

Employees who accept a buyout, or an early retirement must leave government service in the same fiscal year.

Both the early retirement and buyout programs have other requirements.

For early retirement, the employee:

-- Must have at least 20 years of federal service and be at least 50 years old. Younger employees may be eligible if they have 25 years of federal service.

-- Must have worked for DOD continuously for at least one year.

For buyouts, the employee:

-- Can receive a maximum of $25,000 before taxes and deductions.

-- Must be a U.S. citizen.

-- Must be serving under an appointment without time limitation.

-- Must have been employed by DOD for a continuous period of at least 12 months.

Employees who accept buyouts may not take another position with the federal government, directly or via contract, for at least five years or they will be required to repay the buyout. Additionally, employees may not return to work for the DOD for at least one year unless they receive a waiver from the secretary of defense.

The cost of the buyout is funded by the organization offering it.