Agencies utilizing lump-sum payments, early retirement program to cut federal employees
March 13 is deadline to submit prepare for massive layoffs
Workers would get buyout payment of approximately $25,000
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Buyout program less susceptible to legal difficulty
By Alexandra Alper, Tim Reid, Marisa Taylor and Nathan Layne
March 11 (Reuters) - Multiple government companies are turning to early retirement programs to minimize headcount as they rush to fulfill President Donald Trump's Thursday deadline for them to submit strategies for a second round of mass layoffs.
The Office of Personnel Management, the Social Security Administration, and the Department of Health and Human Services, including its Fda, are among the firms which have offered lump-sum payments of up to $25,000 before tax to employees who accept leave their tasks.
The buyout uses, combined with another program that eases eligibility requirements for early retirement, are being welcomed as a lower-friction method to assist satisfy the Thursday due date, human resource professionals at a number of federal firms told Reuters.
The Trump administration has actually been grappling with myriad claims after it fired thousands of probationary employees in a very first wave of mass layoffs and took apart entire departments like USAID, the U.S. humanitarian help firm, and the Consumer Financial Protection Bureau, which secures Americans against unscrupulous loan providers.
All U.S. government companies have actually been ordered to come up with large-scale layoff plans by Thursday as part of Trump's unmatched campaign to overhaul the federal government. Among his leading advisers, the tech billionaire Elon Musk, is leading that effort with his so-called Department of Government Efficiency.
The General Services Administration, which manages the government's residential or commercial property portfolio, is also seeking approval to provide the buyout payments to workers, according to an e-mail sent by its acting head to personnel on Monday and seen by Reuters. The Securities and Exchange Commission has actually already offered bonuses of up to $50,000, Reuters reported.
Human resource and public governance professionals said the appeal of the buyout program, called voluntary separation reward payments, is that it is voluntary and less vulnerable to legal challenges. It also needs workers who have actually accepted the offer to repay the cash if they take another government task within five years.
"If your strategy is to get as numerous people out the door willingly, that reduces the threat of court orders and opposition to you in the long run," stated Don Moynihan, a public policy professor at the University of Michigan.
OPM STILL WAITING FOR PLANS
Only a couple of agencies have actually telegraphed through media leaks how many staff members they plan to cut in the second phase of layoffs. They consist of the Department of Veterans Affairs, which is intending to cut more than 80,000 workers, and the National Oceanic and Atmospheric Administration, which is planning to cut 1,029 staff.
Despite the looming deadline, no agency has yet submitted its job-cutting strategy to OPM, the federal government's personnels department that is collating the information, an individual familiar with the matter informed Reuters. OPM decreased to comment.
OPM itself has offered lump-sum payments to some 650 OPM workers, according to another individual with understanding of the matter. Employees were provided up until March 12 to react.
At the General Services Administration, workers were notified on Monday that OPM had greenlit a strategy to offer an early retirement program to all qualified workers.
"I motivate each of you to consider your alternatives as we progress," GSA Acting Administrator Stephen Ehikian wrote in an email seen by Reuters. "The new GSA will be slimmer, more efficient and laser-focused on efficiency and high-value outcomes."
On March 10, the HR department of the Fda sent an e-mail to all its 19,000 staff members revealing a Friday, March 14, deadline to decide into a VSIP. Those who accept would have to retire by April 19.
"There will be no extensions," mentions the email, evaluated by Reuters and signed by Tania Tse, director of the of Human Capital Management.
Late on Monday, HHS sweetened its previous VSIP deal by including that employees accepting it would get 2 months of complete pay in addition to the bonus, according to a copy of the e-mail seen by Reuters.
Steve Lenkart, executive director of the National Federation of Federal Employees, a union which represents 110,000 federal government employees, said the Trump administration was utilizing "a legitimate program to more damage the capabilities of firms to complete their mission."
OPM decreased to react to Lenkart's comments. (Reporting by Alexandra Alper, Tim Reid, Marisa Taylor and Nathan Layne
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US Agencies Offer Staff new Buyouts Ahead Of Trump's Layoff Deadline
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