Top 10 Frequently Asked Questions 

Voluntary Early Retirement Authority (VERA) 

and Voluntary Separation Incentive Payments (VSIP) 

1. What are Voluntary Early Retirement Authority (VERA) 

and Voluntary Separation Incentive Payments (VSIP)? 

VERA and VSIP are management tools that can be used alone or 

together to incentivize employees to voluntarily leave, in order to 

avoid or lessen the impact of involuntary reductions that are 

necessary due to known budgetary shortfalls and/or to address 

positions that are no longer needed due to mission changes or 

different skills requirements. 

Voluntary Early Retirement Authority (VERA) – also referred to as “early 

out” retirement, VERA temporarily lowers the age and service 

requirements in order to increase the number of employees who are 

eligible for retirement during periods of substantial restructuring, 

reshaping, downsizing, or reorganization. 

SURVEY PERIOD 

Voluntary Separation Incentive Payment (VSIP) - also known as a 

“buyout”, VSIP allows agencies that are downsizing or restructuring to 

offer employees lump-sum payments up to $25,000 (or the employee’s 

severance pay amount, whichever is less) as an incentive to voluntarily 

retire or resign. 

2. Who authorizes VERA and VSIP? Can it be delegated to 

my agency? 

The law only authorizes OPM to grant VERA and RESPONSE RATE VSIP based on a 

request from an agency head, so it can’t be delegated to agencies. 

Additionally, VSIP requests require the concurrence of the Office of 

Management and Budget (OMB). OPM and OMB perform a joint 

review of requests involving VSIPs. 

3. What information does OPM need to make a decision on 

my agency’s request? 

The law is very specific on the kinds of information that agencies need 

to provide in order for their request to be evaluated. This includes 

(but is not limited to): identification of which agency components 

have excess personnel and will be covered by the incentive; which 

positions and functions will be reduced or eliminated; the time period 

during which incentives will be offered and the numbers of employees 

covered. In the case of VSIP, additional detailed information is 

needed to understand the expected changes from the agency’s 

current structure and staffing levels, to the future/desired state to be 

achieved through the use of the incentives. Please visit 

www.opm.gov/reshaping for more information and additional 

guidance on how to request VERA and/or VSIP. 

4. Can my agency get approval to offer a VERA and/or 

VSIP based on an anticipated scenario (e.g., a possible 

budget shortfall or possible reorganization requiring 

additional approval)? 

A VERA and/or VSIP can only be authorized when an agency is 

responding to a known decision or circumstance (vs. an uncertain or 

possible scenario). Note that decisions made under an agency head’s 

authority to reorganize, re-prioritize, reduce, etc., are a valid basis for 

requesting VERA and/or VSIP. 

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5. Can my agency simply offer VERA and/or VSIP to all our 

employees? 

Unless your agency needs to eliminate all positions in the agency or a 

component, a general “blanket” VERA and/or VSIP is not permissible 

under the law and regulations. VERA and VSIP are tools that can help 

an agency/component reshape from a current state, to a future 

desired state. It’s important for agency leaders and workforce 

managers to be thoughtful about identifying the specific positions and 

functions that need to be reduced or eliminated. Without careful 

planning, an agency could end up incentivizing the wrong people to 

leave, and find itself in the position of not having the right people 

remaining to effectively deliver on its mission and essential functions. 

And because positions that are vacated due to VERA and/or VSIP must 

be abolished or restructured, an agency could find itself in a bind if 

the wrong jobs are included in a VERA and/or VSIP offering. 

6. It seems complicated...can OPM make it easier for my 

agency to get a VERA and/or VSIP authorization? 

While OPM doesn’t have the authority to relax the 

criteria/requirements in the law, we have looked at ways to 

streamline the process, including the creation of a simplified template 

that agencies can use to submit the basic information that OPM needs 

to make a decision. Often, the difficult part for the agency is to go 

through the deliberative process of identifying which specific 

positions have to be reduced or restructured--how many, which 

locations and organizational components--and what they want the 

future workforce and organization to look like after the VERA and/or 

VSIP tool is applied. Effective planning is essential to helping to 

ensure that an agency is targeting the right places for reduction 

toward the future desired state. 

7. Can I offer more than $25,000? That’s not much of an 

incentive for many people... 

The maximum amount of a VSIP is capped by law at $25,000 for OPMapproved VSIPs (some agencies have their own VSIP authorities and 

may have higher caps). 

8. How long does it take to get a VERA or VSIP approved? 

OPM can approve a complete request in a matter of days. OPM’s 

ability to promptly render a decision on an agency’s request depends 

heavily on the extent to which the requesting agency provides the 

supporting information specified in the law and regulations (see #3). 

9. What else do I need to know about VERA and VSIP? 

It’s important to note that while VERA and VSIP can be useful tools, 

they aren’t always the right tool. Agencies need to consider factors 

such as the timing of when reductions must be achieved (e.g., is there 

enough time to implement the VERA and/or VSIP, including giving 

employees time to get retirement estimates and information they 

need to make a decision, apply, and be processed off the agency’s 

rolls); does the agency have sufficient funding to cover a VSIP 

payment and other expenses associated with a separating employee 

(e.g., lump sum payment of unused annual leave); is the need for 

reduction a short-term issue (which could be addressed through a 

cost-saving measure such as furlough) or a long-term issue (a need to 

permanently reshape the workforce to reflect mission priorities). It’s 

also important to note that except in limited circumstances, an 

individual who takes a VSIP must repay the entire amount if they 

return to Federal employment within 5 years of receiving the VSIP. 

10. Where can I get more information? 

For more information visit www.opm.gov/reshaping or email 

workforce@opm.gov 

April 2017