what fact and fiction?
What concerns me, is what is said about this subject, which is far from fact, when in fact, as of this writing, much is unknown and not explained well to the federal employee. I am speaking loss of job and early retirement through a , RIF, VERA, and VSIP, the incentive bonus programs.
First, to be clear, VERA would mean an early retirement for you, however, a VSIP does not. VSIP means you are out a job, but you have money in your pocket.
As a basis for my hypothesis is the co-mingling of fact and fiction. I am asked if one can retire when there is a RIF (reduction in force), I hear, “they are offering 5 bonus years to retire out early” and I am MRA with 30 years, but I am waiting for the$40,000.00 bonus they will pay.
VSIP:
The Voluntary Separation Incentive Program is, with a few exceptions, limited by law to $25,000.00, with some exceptions. The agencies of the Department of Defense can and often do offer a $40,000.00 buyout. Any employee that has achieved MRA (Minimum Retirement Age) and 30 years of employment has already earned a full retirement. The VSIP is primarily the younger employee in a less critical positions. Any employee accepting VSIP, and later re-employed must pay the full bonus back.
RIF (Reduction in Force) does not necessarily mean retirement, early or otherwise. It means your position, department, office, or station is being reduced in number of employees. If you are target of a RIF, it could mean a transfer to another locale, to another agency, promotion, or demotion or just termination. If you are eligible, and your agency has been authorized accordingly, a VERA may be offered. A transfer for you, is part of the RIF regulations. If offered and refused, then termination may be a possibility.
VERA, (Voluntary Early Retirement Authority) another method of encouraging personnel to retire out, rather than waiting for years. In the case of VERA, the agency must gain prior approval (authority) from OPM. Then, the agency will invite anyone eligible to take advantage. A VERA might be just over the horizon for some of our postal friends, but it does not seem to be before the election. Too big of a hot potato, as this time.
Before anyone anticipating a VERA, here are some basic rules to consider:
- You must be age 50 with 20 years of service.
- Or: Any age with 25 years of service.
Your advantage is that you will be able to draw an immediate annuity, earlier than MRA and 30 years.
A word of caution, you will not be eligible for the FERS Supplement*, until you have reached your MRA.
(*Special Provisions not included)
