New Buyout Max at DoD; Will Other Agencies Follow? (by Ralph R. Smith)

Whether an event is a good thing depends on the self-interest of those who are impacted.

Here is an example. President-elect Trump has indicated there will be a hiring freeze early in his administration. For those who were hoping to be hired by the federal government, that is bad news.

$40,000 Buyout Authority Authorized for DoD

On the other side, some federal employees may be thinking of leaving the federal government for another job or retiring. In that case, some may find an extra financial incentive to leave. For at least a few employees, the payoff could be as much as $40,000 (before taxes).

At least initially, the increase in a financial bonus will only apply to some employees in the Department of Defense. The National Defense Authorization Act will allow a bonus of up to $40,000 for employees leaving their job early.

Buried deep in the new legislation is a section entitled “TEMPORARY INCREASE IN MAXIMUM AMOUNT OF VOLUNTARY SEPARATION INCENTIVE PAY AUTHORIZED FOR CIVILIAN EMPLOYEES OF THE DEPARTMENT OF DEFENSE.”

In effect, the Secretary of Defense has been given legislative authority to spend up to $40,000 (instead of the current $25,000) as Voluntary Separation Incentive Pay (VSIP). The authority expires on September 30, 2017.

 

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Source: FedSmith.com