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David1961 · 02-18-2009, 07:53 AM

Hello. I'm a federal employee just chomping at bit the retire asap. Later his year, I'll be eligible for an early retirement. Has anybody here heard or have any idea of the prospects for the federal government offering early outs for their employees? Seems to me with the deficit skyrocketing, it would be a feasible option.

W2R · 02-18-2009, 08:00 AM

I think that with so much new work related to the economic stimulus efforts, a lot of agencies (including mine) will be increasing their efforts and eventually might even have to hire more people. Agencies are getting more money for projects that need to be done, and some of these projects require hiring additional employees. Plus, baby boomers are starting to retire and agencies are stepping up their recruitment and retention efforts in order to deal with that phenomenon. We have not heard of any early outs. Now if you work for the USPS, that could be a different matter.

And always, anything is possible!

Texarkandy · 02-18-2009, 09:10 AM

I don't anticipate cuts in the federal workforce.

According to the current philosophy for economic recovery, the economy needs us right now as we (govt) are one of the few stable "industries" whose employees feel enough job security to continuing paying their mortgages, buy cars, etc.

(not saying I agree with that)

RAE · 02-18-2009, 05:37 PM

Quote:

Originally Posted by David1961

Hello. I'm a federal employee just chomping at bit the retire asap. Later his year, I'll be eligible for an early retirement. Has anybody here heard or have any idea of the prospects for the federal government offering early outs for their employees? Seems to me with the deficit skyrocketing, it would be a feasible option.

David - our agency (US Forest Service) is currently offering early-outs, but only for certain National Forests that are going through reorganization. Mine is one of those, and I am eligible, so I currently have the option to apply for an early-out if I want to. At this point I am leaning toward applying, because, like you, I've had about enough and want to do some other things with my life.

Amethyst · 02-18-2009, 06:02 PM

We keep hearing early-out rumors, but our agency probably can't afford it, and most of us need our jobs/full pensions and would not be tempted by a paltry $25K. Especially with some of the traditional Beltway Bandits cutting back, and at least small one about to go under.

RAE · 02-18-2009, 06:16 PM

Quote:

Originally Posted by Amethyst

We keep hearing early-out rumors, but our agency probably can't afford it, and most of us need our jobs/full pensions and would not be tempted by a paltry $25K. Especially with some of the traditional Beltway Bandits cutting back, and at least small one about to go under.

The $25K that you mention is actually a buyout, or Voluntary Seperation Incentive Payment (VSIP), and is seperate from an early-out, or Voluntary Early Retirement Authority (VERA). Our agency is currently offering only the VERA, not VSIP. So, no extra cash for me, just an offer to leave earlier than I would otherwise be eligible. Your annuity is reduced by 2% for every year that you are under age 55, when you retire. So, it's definitely not for everyone, but I am strongly considering it.

freebird5825 · 02-18-2009, 06:43 PM

Quote:

Originally Posted by RAE

The $25K that you mention is actually a buyout, or Voluntary Seperation Incentive Payment (VSIP), and is seperate from an early-out, or Voluntary Early Retirement Authority (VERA)...

Absolutely correct!
Some of my friends, who took the traditional VSIP incentive, report that they cleared approx $17K after taxes.
As always...YMMV

Gpond · 02-18-2009, 06:47 PM

Quote:

Originally Posted by Texarkandy

I don't anticipate cuts in the federal workforce.

You need to talk to some of the fine folks that work for the Post Office.

Gpond · 02-18-2009, 06:52 PM

First-Ever Layoffs Loom at Postal Service | Labor Notes

The U.S. Postal Service faces a serious financial shortfall that is accelerating reductions in its workforce and raising the possibility of the first-ever layoffs of career employees.