Source: https://www.federalregister.gov/documents/2005/01/27/05-1483/voluntary-separation-incentive-payments
Timestamp: 2018-07-19 16:06:39
Document Index: 65030077

Matched Legal Cases: ['art 576', 'art 576', 'art 576', 'art 576', 'art 576', 'ART 576', '§\u2009576']

These regulations are effective January 27, 2005.
70 FR 3858
3858-3861 (4 pages)
https://www.federalregister.gov/d/05-1483 https://www.federalregister.gov/d/05-1483
The Office of Personnel Management (OPM) is issuing final regulations on Voluntary Separation Incentive Payments (generally known as “VSIPs” or “buyouts”). These final regulations explain how an agency requests authority from OPM to offer Voluntary Separation Incentive Payments under the Chief Human Capital Officers Act of 2002, which applies to most executive branch agencies.
These final regulations also explain how agencies must inform employees returning from military leave of any Voluntary Separation Incentive Payment offers they may have missed while on military leave. Finally, these regulations explain how in exceptional circumstances an agency that is hiring a former employee who previously received a Voluntary Separation Incentive Payment may request that OPM waive the general requirement that the individual repay the incentive if reemployed in the Government within 5 years of receiving the incentive.
Sharon K. Ginley at (202 606-0960, fax at (202) 606-2329, TTY at (202) 418-3134, or e-mail at sharon.ginley@opm.gov.
Section 1313(a) of the Chief Human Capital Officers Act of 2002 (Public Law 107-296; 116 Stat. 2135) added new sections 3521 through 3525 to title 5, United States Code, to allow executive branch agencies, at their option, to offer Voluntary Separation Incentive Payments to employees who separate by voluntary retirement or by resignation. On February 4, 2003, OPM issued interim regulations to revise part 576 of title 5, Code of Federal Regulations, with a request for public comments. These final regulations incorporate public comments and make clarifying revisions.
To offer buyouts, an agency must submit a plan for OPM approval. The plan must describe how the agency will use Voluntary Separation Incentive Payments as a tool to facilitate its restructuring goals. OPM will review each agency's plan and, in consultation with the Director of the Office of Management and Budget (OMB), may make any appropriate modifications to the agency's plan for Voluntary Separation Incentive Payments. The review may include a consideration of costs and benefits associated with using the authority. OPM will issue supplemental guidance for agency use in preparing a VSIP implementation plan. The agency must have OPM approval before using this flexibility.
A former employee who accepts any employment with the Government of the United States for compensation within 5 years after the date of separating for a Voluntary Separation Incentive Payment must repay the entire amount of the incentive payment before the first day of reemployment in the Federal service. Under exceptional circumstances, and at the request of the hiring agency, the OPM Director may waive the repayment requirement for former executive branch employees.
OPM received five comments from agencies concerning the interim regulations. One agency pointed out that the interim regulations contained the words “* * * to offer Voluntary Separation Incentive Payments to surplus or displaced employees.” The agency pointed out that the words Start Printed Page 3859“surplus or displaced” were not in Public Law 107-296. We agree that the words are unnecessary, but note that they were mentioned only in the Supplementary Information to the interim regulations, and not the actual interim regulations themselves. We have not included those words in the final regulations.
Two agencies disagreed with OPM's interpretation of the phrase “currently employed for a continuous period of at least 3 years,” which is a minimum service requirement for a Voluntary Separation Incentive Payment. OPM's interpretation has been 3 years of continuous employment within the same agency, and it had been included in OPM's instructions to agencies in the use of Voluntary Separation Incentive Payments (attached to Voluntary Separation Incentive Payment approval letters). For purposes of clarification, in order to fall within the coverage of section 576.101(b) of this regulation, an individual must have 3 years of current continuous employment as an employee within the meaning of 5 U.S.C. 2105 or 16 U.S.C. 590(h)(b)(5).
One agency expressed concern with the regulations allowing OPM, in consultation with OMB, to modify an agency's buyout plan. They said that the requesting agency should also be consulted before any changes are made to its plans. Although the statute does not require OPM to consult with the agency before modifying a plan, we agree with the commenter, and have made the suggested change.
Two agencies expressed concern that the requirements in section 576.102(c) of the interim regulations are more restrictive than the provisions of Public Law 107-296. Section 576.102(c) of the interim regulations requires listings of employees by organizational unit, geographic location, occupational category, and grade level. Public Law 107-296 requires “* * * a description of which categories of employees will be offered incentives.” Of the two agencies that commented about this section, one felt that the more detailed requirements in section 576.102(c) hamper managerial flexibility during restructuring. The other agency expressed concern that these requirements hinder an agency's ability to plan for restructuring (and submit requests for buyout authority) during periods when competitive sourcing is being studied. They pointed out that specific information about the positions for which they intend to offer buyouts might be sensitive at that time. Also, they said, such information might be inaccurate depending upon whether they won or lost a bid.
In addition to the Public Law 107-296 requirement the agency cited above, the statute also requires that agency plans identify “the specific positions and functions to be reduced or eliminated” and specifies the basis upon which employees shall be offered voluntary incentive payments. Identifying specific positions and functions necessarily entails identification of organizational units, occupational series or levels, and geographic locations. OPM believes, therefore, that its requirements are consistent with the statute and in the best interest of the Federal Government. Requiring the specific information about the positions for which agencies plan to offer buyouts is the best way to ensure that agencies' buyout plans are executed in the manner intended by the statute. Retaining the level of position specificity shown in the interim regulations will reinforce the fact that this is a management tool and not an employee entitlement. In regard to the competitive sourcing comment, OPM will work with agencies to determine the best course of action during study periods. For these reasons, we are retaining the specific position requirements contained in section 576.102(c) of the interim regulations. They can be found in section 576.102(a) of the final regulations.
New subpart A of 5 CFR part 576 defines the terms “Employee” and “Specific Designee” and provides additional guidance concerning making buyout offers to employees.
New subpart B of 5 CFR part 576 discusses the term “employment with the Government of the United States” for buyout repayment and waiver of buyout repayment purposes. It indicates that personal service contracts and other direct contracts are considered to be employment with the Government of the United States for buyout repayment purposes. Like other buyout recipients who accept Federal employment within 5 years of receipt of a buyout, employees working on personal service contracts and other direct contracts are also subject to buyout repayment if they begin working on such contracts within 5 years of receipt of a buyout.
Accordingly, OPM amends part 576 of title 5, Code of Federal Regulations, as follows:
1. Part 576 is revised to read as follows:
PART 576—VOLUNTARY SEPARATION INCENTIVE PAYMENTS Subpart A—Voluntary Separation Incentive Payments
Authority: Sections 3521, 3522, 3523, 3524, and 3535 of title 5, United States Code.
(a) After OPM approves an agency's plan for Voluntary Separation Incentive Payments, the agency is required to immediately notify OPM of any subsequent changes in the conditions that served as the basis for the approval of the Voluntary Separation Incentive Payment authority.
(b) Agencies are required to provide OPM with interim and final Voluntary Separation Incentive Payment reports, as covered in OPM's approval letter to the agency. OPM may suspend or cancel a Voluntary Separation Incentive Payment authority if the agency is not in compliance with the reporting requirements or reporting schedule specified in OPM's Voluntary Separation Incentive Payment authority approval letter.
‘Employment’ means employment with the Government of the United States, including employment under a personal services contract (or other direct contract) with the United States Government (other than an entity in the legislative branch) unless employed pursuant to § 576.203(a).
(a)(1) If the proposed reemployment is with an agency other than the General Accountability Office, the United States Postal Service, or the Postal Rate Commission, the Director of the Office of Personnel Management may, at the request of the head of the agency, waive the repayment if—
[FR Doc. 05-1483 Filed 1-26-05; 8:45 am]