What is voluntary separation incentive payment?

What is voluntary separation incentive payment?

A Voluntary Separation Incentive Payment (VSIP), also referred to as a buy-out, is a lump-sum payment made to eligible employees who separate through resignation, optional retirement, or early retirement.

Who is eligible for VSIP?

Be currently employed by the Executive Branch of the federal government for a continuous period of at least three (3) years; Be serving in a position covered by an agency VSIP plan; and. Apply for and receive approval for a VSIP from the agency making the VSIP offer.

What is a voluntary separation package?

What is a voluntary separation package? A voluntary severance package is “a financial incentive that’s offered to an employee in hopes that he will resign or retire,” according to What Is. And, unlike most severance packages, a voluntary severance package gives the employee the option to indeed decline the offer.

What is the difference between VSIP and VERA?

The VSIP is a one-time payment, while the VERA pays out yearly for possibly multiple years, depending on the age of the early-retiree.

Did OPM approve USPS Vera?

The Postal Service has requested voluntary early retirement authority (VERA) from OPM. Based on that, OPM cannot approve USPS’s VERA request until it revises the existing regs to allow agencies to request VERA based on either (1) a need to reshape its workforce or (2) a need to downsize.

Who is eligible for voluntary early retirement?

Under a Voluntary Early Retirement Authority (VERA), federal employees are eligible only if they have 20 years of service at age 50 or 25 years of service at any age. Eligible employees are allowed to voluntarily retire and earn an immediate annuity.

What is a voluntary separation?

Voluntary separation means an employee whose employment has been terminated and whose position is filled by another employee who was about to be or has been given a lay-off notice or who has been laid-off and is on the priority list as a result of a lay-off.

What is a voluntary separation program?

Voluntary Separation Program means a program of limited time duration under which an Eligible Management Employee is permitted to voluntarily separate from employment with the Employer, thereby receiving certain associated benefits, including eligibility to participate in this Plan.

How is VSIP paid?

The VSIP payment is equal to the amount that employees would be entitled to receive as severance pay, or an amount not to exceed $25,000. Severance pay is paid for involuntary separations. Since leaving the agency to take a VSIP is a voluntary action, employees are not eligible for both severance pay and VSIP.