THE EMPLOYEE'S
GUIDE TO BENEFITS
FOR THOSE
AFFECTED BY
REDUCTION IN
FORCE




U.S. OFFICE OF 
PERSONNEL MANAGEMENT


WORKFORCE
RESTRUCTURING OFFICE



                      OCTOBER 1999 (Revised)




The Office of Personnel Management (OPM) created the Workforce
Restructuring Office in March 1994, in response to Administration
and Congressional downsizing initiatives.  The Office provides
assistance to agency personnelists and Federal employees on all
aspects of downsizing.  These areas include, but are not limited
to:

          early retirements 
          buyouts
          alternatives to RIF
          reorganization and delayering tools and strategies
          reductions in force and furlough procedures
          grade and pay retention, and severance pay
          unemployment compensation
          retraining programs
          inplacement and outplacement programs
          on-site technical assistance

The telephone number for the Workforce Restructuring Office is
(202) 606-0960.  The fax number is (202) 606-2329.  To request
that information be mailed to you, please call (202) 606-2425 and
leave your name, address, and the type of information you would
like to receive.

Additional information on downsizing may also be obtained from
the linked OPM and Department of Labor websites at
http://safetynet.doleta.gov and http://www.opm.gov .










                                 

There are a variety of potential benefits available to employees
facing downgrading or separation because of Reduction in force
(RIF).  The information presented in this Guide is intended to
provide an overview of how RIF affects various benefits and
entitlements of a Federal employee.  The information is general
and cannot possibly cover every circumstance.  It is not
necessarily applicable to every Federal employee.  If you need
specific information or more details, please contact your
servicing personnel office. 


Benefits for Downgraded Employees








          Grade and Pay Retention


An employee who is placed in a lower-graded position in his or
her agency through reduction in force (RIF) procedures is
normally entitled to retain the same grade for two years.  An
employee who is downgraded after receiving a specific RIF notice
and taking a lower-graded position offered at management's
initiative is eligible for grade retention on the same basis as
an employee who is actually downgraded by a RIF action. 

Grade and pay retention do not apply to employees holding
temporary or term appointments at the time of the RIF.  Also, an
employee who is downgraded during a RIF is eligible for grade
retention only after first completing at least 52 consecutive
weeks at a higher grade than the position into which he or she is
placed. 

The employee's retained grade is considered to be the grade the
employee holds after RIF downgrading for most "benefits" purposes
(including pay and pay administration, retirement, life
insurance, eligibility for training, noncompetitive promotions,
and within-grade increases), but the retained grade CANNOT be
used as the employee's grade for future RIF competition.  For
example, a GS-12 employee who is downgraded because of a RIF to a
GS-9 position is still considered to be a GS-12 for most pay-
related purposes, but would compete as a GS-9 in any subsequent
RIF.

After grade retention expires, the employee is eligible for
indefinite pay retention.  An employee who is downgraded because
of a RIF, but who does not meet the 52-week eligibility for grade
retention, is also eligible for indefinite pay retention.  If an
employee's former rate of basic pay fits in the pay range for the
lower-graded position, the employee is placed in the pay range
without a reduction in pay and pay retention ceases.  If an
employee's former rate of basic pay is greater than the maximum
rate of the pay range, the former rate is continued as a
"retained rate" (not to exceed 150% of the maximum rate for the
grade in which the employee is placed).  The employee then
receives 50% of any adjustments (e.g., an annual increase) in the
maximum rate for the grade to which he or she was reduced until
that maximum rate equals or exceeds the employee's retained rate
and pay retention ceases.  

Part 536 of Title 5, Code of Federal Regulations, contains more
information on grade and pay retention.  



          Repromotion Consideration


Agencies are authorized to provide in their internal placement
plans that those employees who are downgraded because of a RIF
may receive priority consideration for promotion to positions up
to their former grade level.  The specific policies and
procedures for such consideration are established by each agency. 





Benefits for Separated Employees




                                 
                                 

               Severance Pay


Severance pay is available to an involuntarily separated employee
provided that the employee did not refuse an offer of a position
that is (1) in the same commuting area, (2) in the same agency,
and (3) no more than two grades lower than the employee's current
grade level.  In addition, the employee must have been employed
for at least 12 continuous months, and cannot be eligible for an
immediate annuity as a Federal employee or as a retired member of
the armed forces.  The employee also cannot be receiving workers'
compensation benefits for wage loss due to an on-the-job injury.

Computation of Severance Pay:  

Only civilian service is creditable for severance pay.  An
employee is entitled to 1 week's basic pay for each year of
civilian service up through 10 years, plus 2 weeks' basic pay for
each year of creditable service beyond 10 years.  In addition, an
age adjustment allowance of 2.5 percent is added for each full
quarter of a year the employee is over 40 years of age.  The
maximum amount of severance pay eligibility is one year's salary
(52 weeks).  (This is a lifetime limitation; thus, any severance
pay an employee has received in the past is taken into account in
applying the limit.)  Severance payments are equal to the
employee's rate of basic pay at separation and are paid out at
regular pay period  intervals (usually biweekly) until the
severance pay is exhausted.   The only deductions made from
severance pay are taxes, social security (if applicable), and
Medicare.  

Severance pay computation sheets may be found at the end of this
Guide.  The actual calculation formula is somewhat more
complicated and technical.  The samples are intended to help
compute the approximate amount of severance pay an employee may
receive. To receive an actual computation, please contact your
servicing personnel office. 

If an employee is reemployed in a permanent position with the
Federal Government or the District of Columbia, severance
payments are immediately stopped.  If an employee is reemployed
in the Federal Government on a temporary appointment after a
break of more than 3 calendar days, severance pay will be
suspended temporarily.  At the termination of the temporary
appointment, the unexpired portion of severance pay will be
restarted by the agency.  If an employee accepts a temporary
appointment within 3 calendar days of separation and subsequently
leaves that temporary job on an involuntary basis (e.g.,
expiration of appointment), the employee would be eligible for
severance pay based on the separation from the temporary job. 
Severance pay would be calculated based on the rate of pay
received when separated from the temporary job.  Employment in
the private sector has no effect on an employee's severance pay
entitlement.



               Unemployment Compensation


The unemployment insurance program for Federal employees is
administered by the Department of Labor through State
governments.  States, including the District of Columbia,
determine the eligibility for benefits and the amounts to be paid
to unemployed individuals.  The program provides a weekly income
for a limited period of time.  The length of time is determined
by the jurisdictional State's law.  A separated employee should
file a claim for benefits at his or her State Employment Service
office or unemployment insurance claims office.  These State
offices also allow individuals to register for potential
employment opportunities.  The employee must take his or her
social security card, official notice of separation or non-pay
status (Standard Form 50), specific RIF notice letter, and notice
about unemployment insurance (Standard Form 8).

     



          Unused Annual Leave


All civilian employees covered by annual leave laws are entitled
to receive a lump sum payment for accrued annual leave when
separated from the Federal Government.

In some cases, employees close to retirement eligibility may be
able to use annual leave to qualify for retirement benefits.  See
the "Retirement" section later in this guide for more
information.



               Unused Sick Leave


There is no payment for unused sick leave.  However, an employee
who is separated from the Federal Government is entitled to have
his or her sick leave restored to his/her sick leave account if
the individual is reemployed in the Federal Government.  All
unused sick leave is added to the total service of an employee
who is eligible for an annuity under the Civil Service Retirement
System (CSRS).  For a Federal Employees Retirement System (FERS)
employee who switched from CSRS, the unused sick leave balance 
accrued at the time of transfer may be applied to the CSRS
retirement component.  Regular FERS employees cannot apply unused
sick leave to total service for retirement.



               Federal Employees Health Benefits Program (FEHBP)
                                 

Separated Employees Only:

After separation, an employee not eligible for an immediate
annuity can continue health insurance free for 31 days.  The
employee may then elect to continue receiving benefits under
FEHBP.  However, this request for continued coverage is not
automatic--it must be requested in writing within 60 days of
separation (or within 60 days of receiving a notice from the
agency that FEHB coverage is terminating) and the employee must
pay their own share, the government's cost, and an additional 2%
administrative fee (this totals 102 percent of the cost). This
temporary extension of coverage can only last for 18 months. 
Dependents of employees may carry this coverage for up to 36
months.  An employee may also convert to a private plan.

Department of Defense employees who are separated may continue
enrollment for 18 months following separation.  During this time
the agency continues to pay its share and any additional
administrative costs.  Employees continue to pay their share.



          
          Federal Employees Group Life Insurance
               (FEGLI) Program

Separated Employees Only:

Separated employees are covered free by FEGLI for 31 days.  An
employee who is separated and is not eligible for an immediate
annuity may convert all or part of the life insurance to an
individual policy without having to take a medical examination. 
The individual policy may be purchased from any eligible
insurance company selected by the employee and is considered a
private transaction between the employee and the company.  The
employee pays the entire premium of the conversion policy, and
the conversion must be made within 31 days after the effective
date of the separation.


          
          Thrift Savings Plan (TSP)


Withdrawing Money:

When an employee separates from Federal service for more than 31
days, the employee can choose to either leave their money in
their TSP account or to withdraw the vested TSP account balance.  
There are several options for withdrawal:

1.  If the account balance is under a certain amount (currently
$3500 or less), the TSP Service Office will notify the employee
and the employee's account balance will be paid to the employee
automatically in a single payment, unless the employee requests
that it be retained or selects another withdrawal option.

2.  After separation from Federal service, the employee may:

                   Leave it in the TSP.

                   Transfer it entirely to an Individual Retirement
          Account (IRA) or other eligible retirement plan.

                   Purchase a life annuity immediately or at a later date
          if the account balance is at least $3,500.

                   Receive a single payment immediately or at a later
          date.

                   Receive a single payment and ask the TSP to transfer a
          portion of it to an IRA or other retirement plan.

                   Receive a series of equal monthly payments beginning
          immediately or at a later date.

                   Receive a series of equal monthly payments and ask the
          TSP to transfer each payment (or a portion of it) to an
          IRA or other eligible retirement plan if the series of
          payments is expected to last less than 10 years and is
          not based on the employee's life expectancy.

Any funds paid directly to the employee from TSP are taxable; a
10 percent penalty may be charged for early withdrawal if the
employee separates before the year the employee attains age 55. 
Options are outlined in detail in the booklet, "Withdrawing Your
TSP Account" dated December 1996.  The employee will also receive
all appropriate forms to exercise the withdrawal option.



                       Retirement Benefits


Most Federal employees who were first hired before January 1,
1984, are covered by CSRS.  Most employees first hired on or 
after January 1, 1984, are automatically covered by FERS.



               Refunds


An employee who separates from Federal employment before
completing a minimum of 5 years of creditable civilian service
are not eligible to receive optional or deferred annuity benefits
under CSRS or FERS.  An employee who receives a refund of
retirement deductions under CSRS may, after reemployment with the
Federal Government, repay the amount refunded plus interest so
that the period of service covered by the refund may be included
in the computation of annuity benefits.  However, while an
employee covered by FERS may also receive a refund of his or her
retirement contributions, a FERS employee will not be eligible to
receive annuity benefits based on the period of service covered
by the refund if the employee is reemployed in the Federal
Government.  There is no provision in law which permits the
repayment of FERS contributions that have been refunded.  A
separated employee does not have to take a refund. Interest has
been paid on all funds in a FERS account, while CSRS employees
receive no interest for accounts more than 5 years old.  Taxes
have already been paid on the deductions themselves.  Payment of
taxes is required only on the interest earned on money in the
retirement account.


          
          Deferred Annuity


An employee who separates from the Federal service after
completing at least 5 years of creditable civilian service, but
before becoming eligible for an immediate annuity, is entitled to
a deferred annuity at age 62 under both CSRS and FERS.  Under
certain conditions, a FERS employee may be eligible for a
deferred annuity before age 62.  An employee who is eligible for
a deferred annuity may, in lieu of the annuity at a later date,
receive a refund of his or her retirement deductions, provided
that the employee is not eligible to receive an annuity within 31
days after filing a refund application.



          
          Using Annual Leave to Reach Eligibility



                    
An employee scheduled for RIF separation may use his or her
accumulated annual leave to remain on an agency's rolls past the
RIF effective date if doing so would allow the employee to reach
his or her first retirement eligibility date.  The employee must
have enough annual leave to cover the period from the RIF
effective date to the first date he/she meets the minimum age and
service criteria for CSRS or FERS retirement(as applicable).  The
employee must meet the other eligibility requirements for
optional or discontinued service retirement as described below.

The accumulated annual leave balance generally includes all
annual leave in the employee's account as of the RIF effective
date, plus the annual leave earned while on leave between the RIF
effective date through first retirement eligibility date. 
Employees wishing to exercise this option should check with their
personnel office for the necessary steps to take.

     



               Immediate Annuity (CSRS)


An employee serving under CSRS for at least 1 of the last 2 years
before his or her separation is eligible for an immediate annuity
if he or she meets the following minimum age and service
requirements:



          Optional Retirement: 

                    (a) Age 62 and 5 years creditable civilian service. 

                    (b) Age 60 and 20 years total creditable service. 

                    (c) Age 55 and 30 years total creditable service.


          Discontinued Service Retirement:

                    (a) Age 50 and 20 years total creditable service.

                    (b) Any age and 25 years total creditable service.

The CSRS annuity of an employee who retires before age 55 is
reduced by 2 percent for each year the employee is under age 55
at the time of retirement.

An employee is eligible for discontinued service retirement under
both CSRS and FERS only if the employee is reached for an
involuntary action (such as job abolishment or reassignment to a
position in a different commuting area), and does not receive an
offer from his or her agency of another position in the same
local commuting area that is within two grades of the employee's
present position.



               Immediate Annuity (FERS)


An employee serving under FERS is eligible for an immediate
annuity if he or she meets the following minimum age and service
requirements:

          Optional Retirement:

                    (a) Age 62 and 5 years creditable civilian service.

                    (b) Age 60 and 20 years total creditable service.

                    (c) Minimum retirement age and 10 years total
          creditable service.

The minimum retirement age for FERS employees born before 1948 is
55, but gradually increases from 55 to 57 for employees born
between 1948 and 1970.  Also, the FERS annuity is reduced by 5
percent for each year the employee is under age 62.  The employee
can avoid the age reduction entirely by choosing as the
commencing date of annuity either: 1) a date that is less than 1
full month before the employee reaches age 62 if he or she has
less than 20 years of service; or 2) the first day of any month
after reaching age 60 if he or she has at least 20 years of
service.

          Discontinued Service Retirement:

                    (a) Age 50 and 20 years total creditable service.

                    (b) Any age and 25 years total creditable service.

There is no annuity reduction in FERS for employees who retire on
a discontinued service annuity under the age of 55.  Transferees
with a CSRS annuity component will have the CSRS portion of the
annuity reduced by 2 percent per year if he or she is under age
55.


               Reemployment and Retraining Programs

For further information regarding reemployment programs, please
call OPM's Restructuring Hotline on 202-606-2425 to order a free
copy of the "Employee's Guide to Career Transition".  This guide
and additional information on career transition is also available
the linked OPM and Department of Labor websites at
http://safetynet.doleta.gov and http://www.opm.gov .


          
          Agency Career Transition Assistance Plans (CTAP)


Agencies are required to provide assistance to help their surplus
and displaced employees find new employment.  Each agency will
provide 1) services to help their employees find new employment,
either in the public or private sector, and 2) selection priority
for competitive service vacancies within the agency.  Agencies
have developed specific Career Transition Assistance Plans with
the specific policies on what types of assistance are available
to their employees.  Copies of individual agency plans are posted
on the web at http://safetynet.doleta.gov.  Specific questions
regarding an agency's CTAP should be referred to the agency's
personnel office.




               Priority Placement Program (PPP)

The Priority Placement Program (PPP) also sometimes called the
"DOD Stopper List", is a program run solely by the Department of
Defense for its employees.  It is the equivalent of a non-Defense
agency's Career Transition Assistance Plan.  Questions regarding
the PPP should be referred to the nearest Department of Defense
personnel office or the DOD Civilian Assistance in Re-Employment
(CARE) Office at (703) 696-1799. 


          
          Reemployment Priority List (RPL)


RPL is a post-RIF program that provides separated employees first
opportunity for positions within their former agency that would
otherwise be filled by employees from outside the agency.  A
separate RPL must be established for each commuting area from
which eligible employees have been separated due to RIF.

Eligibility: 

An eligible employee is entitled to consideration for positions
for which that employee is available providing all of the
following conditions are met:

          1.  The employee must meet the qualification requirements
     for the position;

          2.  The position must be at no higher grade (or equivalent)
     and have no greater promotion potential than the position
     from which separated;

          3.  The position must have the same work schedule as the
     position from which separated; and

          4.  The position must be in the same commuting area as the
     position from which separated.

To be eligible to apply for the RPL, an employee must: a) be serving
under an appointment in the competitive service in tenure group I or II
at the time of RIF separation; b) have not refused an offer of
assignment to a position at the same grade or representative rate
during RIF; and c) have a current rating of record of at least
"minimally successful".  Tenure group I employees can remain on the RPL
for 2 years.  The time limit for tenure group II employees is 1 year.


How To Apply:

The employees applies through the servicing personnel office within 30
days after separation.



          Interagency Career Transition Assistance Plan (ICTAP)


The Interagency Career Transition Assistance Plan (ICTAP) is designed
to help Federal employees who lose their jobs due to downsizing find
jobs in other Federal agencies.  

How the ICTAP Works:  

1)  Agencies' competitive service vacancies are available on OPM's
automated Governmentwide employment information system, USAJOBS.

USAJOBS is easily accessible Federal employment information.  USAJOBS
provides worldwide job vacancy information, employment information fact
sheets, job applications and forms, and has on-line resume development
and electronic transmission capabilities.  In many instances, job
seekers can apply for positions on-line.  USAJOBS is updated every
business day from a database of more than 12,000 worldwide job
opportunities.  USAJOBS is available to job seekers in a variety of
formats, ensuring access for customers with differing physical and
technological capabilities.  It is convenient, user friendly,
accessible through the computer or telephone and available 24 hours-a-
day, seven days-a-week.

USAJOBS consists of:

Internet - The official world wide web site for jobs and employment
information, may be accessed at http://www.USAJOBS.opm.gov. 

On the web site, job seekers can access worldwide current job
vacancies, employment information fact sheets, applications and forms,
and in some instances, apply for jobs online.  Complete job
announcements can be retrieved from the web site.  The USAJOBS web site
also has an Online Resume Builder feature.  Using the resume builder,
job seekers can create online resumes specifically designed for
applying for Federal jobs.  Resumes created on the USAJOBS resume
builder can be printed from the system for faxing or mailing to
employers; and saved and edited for future use.  For many of the
vacancies listed on the site, job seekers can submit resumes created
through USAJOBS directly to hiring agencies through an electronic
submission process.

Touch Screen Computer Kiosk - A kiosk network of self-service information
providers located in OPM offices and many Federal buildings nationwide.

At the touch of a finger, job seekers can access worldwide current job
vacancies, employment information fact sheets, and applications and
forms.  Complete job announcements can be retrieved from the kiosk.

Automated Telephone System  - An interactive voice response telephone
system which can be reached at (912) 757-3000 or TDD (912) 744-2299 or
at 17 OPM Service Centers located throughout the country (local numbers
listed in the blue pages).

By telephone, job seekers can access worldwide current job vacancies,
employment information fact sheets, and applications and forms, and in
some instances, apply for jobs by phone.



2)  When an employee sees a vacancy for which he/she is qualified, the
employee would tailor the application package to show how he/she meets
the specific qualification requirements of the position, attach
appropriate proof of eligibility, and apply directly to the location
stated on the vacancy announcement.  Displaced employees must meet all
the requirements stated on the vacancy announcement (e.g., closing
date, area of consideration, etc.).

3)  Agencies will review the displaced employee's application material. 
If the employee meets all of the qualification requirements of the
position, is considered well-qualified for the job, and the vacancy is
in the same local commuting area from which the employee was separated,
agencies are required to select the displaced employee over any
candidate from outside the agency.

4)  Questions regarding specific vacancies and well-qualified
requirements may be addressed to the specific agency that is conducting
the recruitment.

Eligibility Requirements

a.  Separated by RIF:   Employees who have received a specific RIF
separation notice.

b.  Declined Directed Reassignment/Transfer of Function:  Employees who
have been or are being separated because they declined a transfer of
function or directed reassignment outside the commuting area.

c.  Discontinued Service Retirement/Retirement in Lieu of RIF: 
Employees who retire in lieu of RIF (separate under the discontinued
service retirement option, or retire ON the last day of the RIF).
 
Eligibility Periods 

Depending on eligibility category, employees are eligible for special
selection priority in other agencies for the time periods listed below:

a.  Separated by RIF:  1 year after the RIF separation date.

b.  Declined Directed Reassignment/Transfer of Function:  1 year after
separation due to declination of reassignment or transfer of function
outside the commuting area.

c.  Discontinued Service Retirement/Retirement in Lieu of RIF:  1 year
after separation by discontinued service retirement or retirement in
lieu of RIF.


Proof of Eligibility

When applying for positions, in order to exercise selection priority,
employees must attach the following proof of eligibility:

a.  Separated by RIF: I)  A copy of the Standard Form 50 (personnel
action) stating you were separated by RIF, or ii) a copy of the RIF
separation notice.

b.  Declined Directed Reassignment/Transfer of Function:  A copy of the
Standard Form 50 indicating that the employee was separated because
he/she declined a transfer of function or directed reassignment outside
his/her local commuting area.

c.  Discontinued Service Retirement/Retirement in Lieu of RIF:  A copy
of the Standard Form 50 stating that the employee retired in lieu of
RIF.


               
          Retraining Opportunities

          
Many states offer excellent opportunities for displaced employees to
take various types of training through government funding to help them
qualify for jobs.  This may include the opportunity to train for a new
career field.  

The best source of information on such training is the individual state
dislocated workers unit or state unemployment office.  If you are
interested in training or retraining opportunities, you should contact
your local state employment services department and ask about
training/retraining possibilities under the Economic Dislocation and
Worker Adjustment Assistance Act (EDWAA).  The U.S. Department of Labor
administers a dislocated worker program authorized under EDWAA to
assist workers who have been laid off and who are unlikely to return to
their previous industry or occupation.  The dislocated worker program
authorizes a wide range of services to help individuals obtain
meaningful re-employment.  These services may include assessments of
skills and interests, job development, counseling, job search
assistance, career exploration, basic and remedial training, and
occupational skills retraining, like computer training.  The particular
mix and availability of services are decided upon by the States and
their local substate grantees that administer the program.  The program
is funded by U.S. Department of Labor, Employment & Training
Administration, Office of Work-Based Learning, 200 Constitution Avenue,
NW, Room N-5426, Washington, DC  20210; their telephone number is (202)
219-5577.  

                  Severance Pay Computation Worksheets

The following are samples for use in estimating the amount of severance pay.  The actual
calculation formula is somewhat more complicated and
technical.  The samples are intended to allow you to figure the approximate amount of severance
pay you may receive.  The computation presumes
that you were a full-time employee and that you have not previously received severance pay based
on an earlier involuntary separation.  OPM is not
responsible for the accuracy of the results that this worksheet may give you.  IF YOU WANT AN
ACCURATE CALCULATION, PLEASE
CONTACT YOUR SERVICING PERSONNEL OFFICE.

Severance Pay Estimation Worksheet
          line 1.   Annual Rate of Basic Pay (at time of separation)=  _______________

          line 2.   Weekly Rate (divide line 1 by 2087 and then multiply result by 40)= 
_______________
     (Note:  This weekly rate can also be derived by dividing the annual rate by 52.175.)

          line 3.   Years of Service (see A and B below)
          A.  If your length of service is LESS THAN 10 years, enter your length of service on line
3a.

          B.  If your length of service is MORE THAN 10 years:

          (1)  enter your length of service:                __________

          (2)  subtract 10 from your length of service:          -10       =  __________

          (3)  multiply the result by 2:                      2       =  __________

          (4)  add 10 to the amount listed in 3):                              +10

          (5)  enter this total on line 3a.                 ___________

          line 3a.  Adjusted Years of Service            =  _______________

          line 4.   Basic Severance Pay (multiply amount on line 2 by the number on line 3a)= 
_______________

          line 5.   Age Adjustment Factor (if your age is above 40, look
     your age up on the "AGE TABLE AND FACTORS" chart
     attached.  Enter the "factor" number shown.)

          Age = _______ years and _______ months.  Factor = _______

          line 6.   Adjusted Severance Pay (multiply the amount in line 4 by the line 5 factor)= 
_______________

          line 7.   Multiply the amount in line 2 by 52 weeks.  =  _______________
          This is the maximum amount of severance pay payable under the 1-year (52 weeks) limit.

line 8.   If  line 6 exceeds line 7, enter amount on line 7.  Otherwise enter the line 6 amount. = 
_______________
     This is the estimated amount of your total severance pay fund.        

          line 9.   Multiply the amount in line 2 by 2.  =  _______________
     This is the estimated amount of your biweekly severance payment (before deductions).

line 10.  Divide the amount in line 8 by the amount in line 9 and multiply the result by 2. = 
_______________
          This is the approximate number of  weeks of severance payments you will receive 
          (assuming you are not reemployed by the Government).

               Severance Pay Computation Worksheet

The following are samples for use in estimating the amount of severance pay.  The actual
calculation formula is somewhat more complicated and
technical.  The samples are intended to allow you to figure the approximate amount of severance
pay you may receive.  The computation presumes
that you were a full-time employee and that you have not previously received severance pay based
on an earlier involuntary separation.  OPM is not
responsible for the accuracy of the results that this worksheet may give you.  IF YOU WANT AN
ACCURATE CALCULATION, PLEASE
CONTACT YOUR SERVICING PERSONNEL OFFICE.

Severance Pay Estimation Worksheet
          line 1.   Annual Rate of Basic Pay (at time of separation)=  $ 73,619

          line 2.   Weekly Rate (line 1 divided 2087 and then multiplied by 40)= $1,411
     (Note:  This weekly rate can also be derived by dividing the annual rate by 52.175.)

          line 3.   Years of Service (see A and B below)
          A.  If your length of service is LESS THAN 10 years, enter your length of service on line
3a.

          B.  If your length of service is MORE THAN 10 years:

          (1)  enter your length of service:           18

          (2)  subtract 10 from your length of service:          -10       =   8

          (3)  multiply the result by 2:                 2       =  16

          (4)  add 10 to the amount listed in 3):                     +10

          (5)  enter this total on line 3a.             26  

          line 3a.  Adjusted Years of Service                          = 26

          line 4.   Basic Severance Pay (multiply amount on line 2 by the number on line 3a)   = $
36,686

          line 5.   Age Adjustment Factor (if your age is above 40, look
     your age up on the "AGE TABLE AND FACTORS" chart
     attached.  Enter the "factor" number shown.)

          Age = 52 years and 0 months.  Factor = 2.2

          line 6.   Adjusted Severance Pay (multiply the amount in line 4 by the line 5 factor)=  $
80,709.20

          line 7.   Multiply the amount in line 2 by 52.          = $73,372
          This is the maximum amount of severance pay payable under the 1-year (52 weeks) limit.

line 8.   If  line 6 exceeds line 7, enter amount on line 7.  Otherwise enter the line 6 amount.= 
$73,372
     This is the estimated amount of your total severance pay fund.        

          line 9.   Multiply the amount in line 2 by 2.          =  $ 2,822
     This is the estimated amount of your biweekly severance payment (before deductions).

line 10.  Divide the amount in line 8 by the amount in line 9 and multiply the result by 2. = 52
weeks
          This is the approximate number of  weeks of severance payments you will receive 
          (assuming you are not reemployed by the Government).
AGE TABLE AND FACTORS

Yrs.        Factor       Yrs.      Factor            Yrs.        Factor
     Mos.                Mos.                     Mos.

40   3-5    1.025        48   4-8  1.850             56     9-11 2.675
40   6-8    1.050        48   9-11 1.875             57     0-2  2.700
40   9-11   1.075        49   0-2  1.900             57     3-5  2.725
41   0-2    1.100        49   3-5  1.925             57     6-8  2.750
41   3-5    1.125        49   6-8  1.950             57     9-ll 2.775
41   6-8    1.150        49   9-ll 1.975             58     0-2  2.800
41   9-ll   1.175        50   0-2  2.000             58     3-5  2.825
42   0-2    1.200        50   3-5  2.025             58     6-8  2.850
42   3-5    1.225        50   6-8  2.050             58     9-ll 2.875
42   6-8    1.250        50   9-11 2.075             59     0-2  2.900
42   9-11   1.275        51   0-2  2.100             59     3-5  2.925
43   0-2    1.300        51   3-5  2.125             59     6-8  2.950
43   3-5    1.325        51   6-8  2.150             59     9-11 2.975
43   6-8    1.350        51   9-ll 2.175             60     0-2  3.000
43   9-11   1.375        52   0-2  2.200             60     3-5  3.025
44   0-2    1.400        52   3-5  2.225             60     6-8  3.050
44   3-5    1.425        52   6-8  2.250             60     9-11 3.075
44   6-8    1.450        52   9-11 2.275             61     0-2  3.100
44   9-11   1.475        53   0-2  2.300             61     3-5  3.125
45   0-2    1.500        53   3-5  2.325             61     6-8  3.150
45   3-5    1.525        53   6-8  2.350             61     9-11 3.175
45   6-8    1.550        53   9-11 2.375             62     0-2  3.200
45   9-11   1.575        54   0-2  2.400             62     3-5  3.225
46   0-2    1.600        54   3-5  2.425             62     6-8  3.250
46   3-5    1.625        54   6-8  2.450             62     9-11 3.275
46   6-8    1.650        54   9-11 2.475             63     0-2  3.300
46   9-11   1.675        55   0-2  2.500             63     3-5  3.325
47   0-2    1.700        55   3-5  2.525             63     6-8  3.350
47   3-5    1.725        55   6-8  2.550             63     9-11 3.375
47   6-8    1.750        55   9-11 2.575             64     0-2  3.400
47   9-11   1.775        56   0-2  2.600             64     3-5  3.425
48   0-2    1.800        56   3-5  2.625             64     6-8  3.450
48   3-5    1.825        56   6-8  2.650             64     9-11 3.475