Click here to skip navigation
An official website of the United States Government.

Latest News News

You have reached a collection of archived material.

The content available is no longer being updated and as a result you may encounter hyperlinks which no longer function. You should also bear in mind that this content may contain text and references which are no longer applicable as a result of changes in law, regulation and/or administration.


News Release

FOR IMMEDIATE RELEASE
Sunday, January 30, 2005
Contact: Edmund Byrnes
Tel: 202-606-2402

OPM Director Kay Coles James Issues Final Regulations on Voluntary Separation Incentive Payments

Washington, DC- U.S. Office of Personnel Management (OPM) Director Kay Coles James has issued the final regulations on voluntary separation incentive payments (VSIP), also known as "buyouts." The incentives authorized by these regulations provide agencies with another option to minimize involuntary separations resulting from organizational change.

"These regulations help achieve President George W. Bush's goal of providing federal managers with state of the art staffing tools to create an efficient yet responsive federal workforce," said James.

The President's strategic management of human capital calls for a transformation in the employment, deployment, development, and evaluation of the federal workforce with results in mind. The VSIP regulations make it easier for agencies to respond quickly and retool their staffs with employees who possess the skills, knowledge, or similar factors needed to perform a position. Under the regulations, most non-Defense executive branch agencies may, at their option, offer voluntary separation incentive payments to employees who separate by voluntary retirement or by resignation in a downsizing, reshaping, restructuring, or similar situation.

Before offering separation incentives to their employees, agencies must first obtain approval from OPM, with concurrence from the Office of Management and Budget. Agencies may then offer employees who agree to voluntarily separate a lump sum payment equal to what they would get in severance pay, or an amount to be determined by the agency up to $25,000, whichever is less.
- end -

Our mission is to Recruit, Retain and Honor a World-Class Workforce to Serve the American People. OPM supports U.S. agencies with personnel services and policy leadership including staffing tools, guidance on labor-management relations and programs to improve work force performance.


Control Panel