News Release

OPM issues Interim Rules on Voluntary Separation Incentives

Washington, D.C. - The U.S. Office of Personnel Management has issued interim regulations on voluntary separation incentives (buyouts) that are intended to help agencies reshape their work force. The regulations were included in the Homeland Security Act, and are a major part of President George W. Bush's attempt to give managers and supervisors the tools they need to create a first-rate federal work force.

"If we expect government operations and performance to improve, we must equip our agencies and managers with the necessary flexibilities to efficiently and effectively manage resources and programs," said OPM Director Kay Coles James. "The statutory authority for these regulations is the result of a bipartisan agreement on the need for managerial flexibility, and is a win-win for federal agencies, employees, and the American people who expect better government."

In addition, James said the new authority gives agencies the opportunity to reshape their employee populations through planned separations. It also strengthens their ability to carry out vital missions while easing budgetary constraints.

The regulations give agencies the ability to pay buyouts. However, agencies must obtain approval from OPM before they may offer buyouts to their employees. Agencies may pay employees an amount equal to what they would get in severance pay, or an amount to be determined by the agency up to $25,000, whichever is less.

The regulations give federal agencies and managers increased discretion and flexibility in managing a high-quality work force, ensuring a work force that is able and motivated to successfully and productively operate programs and produce results.

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OPM oversees the federal work force and provides the American public with up-to-date employment information. OPM also supports U.S. agencies with personnel services and policy leadership including staffing tools, guidance on labor-management relations and programs to improve work force performance.

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