Ask The Experts: Retirement

By Reg Jones

VSIP eligibility

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Q. I will complete nine years of civil service as of August, as well as 22 years of military service. If I apply for Voluntary Separation Incentive Pay, what, if anything, can I expect to receive?

A. According to the Office of Personnel Management, “An agency computes a Voluntary Separation Incentive Payment on the basis of the lesser of:

1. An amount equal to the amount of severance pay the employee would be entitled to receive, as computed under 5 U.S.C. 5595(c), without adjustment for any previous payment made; or

2. An amount determined by the agency head, not to exceed $25,000.

The amount that the employee actually receives is less than the amount determined using the above computations because of the deduction of taxes, including Federal, state, social security, and Medicare, as appropriate.”

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