New Authorization for Buyouts Date: Thu, 3 Oct 1996 17:39:30 -0400 Message-Id: <199610032139.RAA29292@igsrsparc4.er.usgs.GOV> X-Sender: pmalam@opsmail.er.usgs.gov Mime-Version: 1.0 Content-Type: text/plain; charset="us-ascii" To: "USGS Employees" From: "Kathleen B Rutledge, Reston, VA" (Office of Human Resources) Subject: New Authorization for Buyouts X-Mailer: In Reply Refer To: Mail Stop 601 MEMORANDUM Date: October 3, 1996 To: USGS Employees From: Barbara J. Ryan Associate Director Subject: New Authorization for Buyouts A surprise result of last-minute compromises on the FY 1997 Omnibus appropriation bill signed by the President Monday is new Governmentwide buyout authority. Because this language is new, we do not have many details about how the buyout program will be implemented. AT THIS POINT, NO DECISIONS HAVE BEEN MADE RELATIVE TO THE SCOPE AND EXTENT OF BUYOUTS AT EITHER THE DEPARTMENT OF THE INTERIOR OR USGS LEVELS. Based on information provided by the Department so far, we know the following: -- Separation incentives (buyouts) have been authorized for employees eligible for both full retirement and early retirement as well as for employees who voluntarily resign; -- Employees covered by the buyout offer must separate by December 31, 1997; -- Buyout amounts will be the lesser of $25,000, or the employee's calculated severance pay; -- FTE for the Department of the Interior will be reduced by one for each employee who receives a buyout payment; -- We will be required to pay to the retirement fund a contribution of 15 percent of the last year's salary of each employee taking a buyout; -- Employees who take a buyout cannot return to the Federal service or accept a personal services contract within 5 years of separation unless they repay the entire buyout amount PRIOR TO the first day of employment; -- The Department of the Interior must submit a plan to Congress outlining how it will function with reduced FTE. The Office of Management and Budget (OMB) will provide guidance on specifics of the legislation within the next several weeks. They will also give us instructions on how to prepare our plans for Congress. Our plan will have to include specifics as to the scope of the buyout option, including organizational justification, targeted occupations, locations, and open periods for sign-up. ONCE AGAIN, NO DECISIONS HAVE BEEN MADE RELATIVE TO THE SCOPE AND EXTENT OF BUYOUTS AT THE DEPARTMENTAL OR BUREAU LEVELS. We will provide more information as soon as it is available. Meanwhile, please understand that this is a developing situation, and we will not be able to tell individual employees what the new authority means for them for some weeks yet.