Guide to Voluntary Separation Incentive Payments

To be eligible to separate with a VSIP, an employee must:

  1. Be serving under an appointment without time limitation;
  2. Be currently employed by the Executive Branch of the Federal Government for a continuous period of at least 3 years;
  3. Be serving in a position covered by an agency VSIP offer as described above; 8 Voluntary Separation Incentive Payment Guide
  4. Apply for and receive approval for a VSIP from the agency making the VSIP offer; and
  5. Not be included in any of the ineligibility categories listed in Section 13 below

Ineligibility for VSIP Employees in the following categories are not eligible for VSIP: Employees who:

  1. Are reemployed annuitants;
  2. Have a disability such that the individual is or would be eligible for disability retirement;
  3. Are in receipt of a decision notice of involuntary separation for misconduct or unacceptable performance;
  4. Previously received any VSIP from the Federal Government;
  5. During the 36-month period preceding the date of separation, performed service for which a student loan repayment benefit was paid, or is to be paid;
  6. During the 24-month period preceding the date of separation, performed service for which a recruitment or relocation bonus was paid, or is to be paid; or
  7. During the 12-month period preceding the date of separation, performed service for which a retention bonus was paid, or is to be paid. (This applies to General Schedule employees only.)

Click Here for the VSIP guide