We are receiving many questions about reductions in force, VERA, Incentives, Layoffs, and firings, which most folks have comingled words, meanings, and rumor in dialog. The real fact should dispel all issues because each has a separate meaning. A RIF, VERA or a VSIP, with most employees, do not fully understand what the difference is and thus, much confusion.
RIF (Reduction in Force):
May or may not mean an immediate retirement. I will not go into the million differences and qualifications, but to simply say this:
A RIF has rules. The government is required to offer a like type position, somewhere, even if with another agency. Convenience of locale is not considered. If a position is offered, and, not accepted, then a forced retirement or termination may occur. Further, the RIF may not necessarily mean termination, but a transfer and or a demotion. Certainly, if one were told by supervision that you are subject to RIF, the first thought is retirement, but if offered and you don’t take their offer, you might just be out of a job or demoted.
VSIP (Voluntary Separation Incentive Payment):
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.
VERA(voluntary early retirement authority):
The agency must receive VERA authority in order to offer. The agency that desires to offer VERA, in the mid-1990s during a major reorganization of the FAA was denied. Certain positions must be determined as targets. The offer of VERA is asking for volunteers to retire. We should be part of the decision of an employee to accept, by providing our 14-page retirement report. The client should determine if they can afford to retire and what is the impact if they turn down and then the agency decided to RIF?
The list is growing and includes the USPS, Department of Agriculture, Department of Energy, Government Printing Office (GPO), the Smithsonian Institute, Department of Defense, and the list keeps growing in light of the fiscal crisis that we find ourselves in.
VERA and VSIP programs allow federal agencies that are reorganizing or downsizing to offer early outs rather than lay employees off through a Reduction in Force (RIF). Agencies find it far easier to offer early outs to those who wish to leave than to lay federal employees off.
Early outs provide more cost savings than RIF’s because younger employees subject to layoffs generally receive lower pay and benefits than the senior employees that would be eligible for early retirement.
Agencies often offer Voluntary Early Retirement Authority (VERA) to employees without a Voluntary Separation Incentive Payment (VSIP). In this case you can retire early and receive benefits, however no incentive payment of up to $25,000 is offered for you to do so. To apply for an early out employees must be at least age 50 with 20 years of service or any age with 25 years of creditable service.
We are being told currently, by employees of the USPS, that early retirement is being offered to include up to 5 years additional creditable time awarded to their retirement. As of this writing, we have not seen documentation of this offer, but, on the face, it does not fit any authority previous history.
