Social Security Administration preempts DOGE cuts with $25,000 ‘early out’ option
The Social Security Administration (SSA) is facing important workforce reductions and has introduced an incentive programme for employees to voluntarily resign, offering up to $25,000 in payments. This decision comes as part of a broader initiative from the office of Personnel management aimed at reorganizing federal agencies to promote efficiency. The SSA’s restructuring plans are due by March 13, with warnings that non-essential roles may be eliminated, and employees may be reassigned to critical positions. Voluntary options being provided include early retirement and a voluntary separation incentive payment (VSIP), which varies based on pay grade and could result in different amounts for employees. Two SSA offices have already been closed, and employees in those areas have been placed on administrative leave.
Social Security Administration preempts DOGE cuts with $25,000 ‘early out’ option
The Social Security Administration is preparing for “significant workforce reductions.” As part of these changes, it has offered current employees up to $25,000 to resign.
The Office of Personnel Management issued a memorandum earlier this week advising agency heads to have their reorganization plans developed by March 13, including reductions in the workforce as part of the Department of Government Efficiency‘s efforts to cut waste in the federal government. The SSA issued a message to its employees Thursday discussing options as it begins its reorganization plan.
“Through these massive reorganizations, offices that perform functions not mandated by statute may be prioritized for reduction-in-force actions that could include abolishment of organizations and positions, directed reassignments, and reductions in staffing,” the message to staff sent out Thursday said.
The memo also warned employees that the administration “may reassign employees from non-mission critical positions to mission-critical direct service positions.” It also provided various voluntary options for employees ahead of the changes to the SSA.
The voluntary options include reassignment through a questionnaire, early retirement, optional retirement, or voluntary separation incentive payments.
The VSIP is a “limited” option that will be available until March 14 on a “first-come basis.” It would offer payments depending on the pay scale classification of an employee, with general schedule 8 or lower getting $15,000, GS 9-12 employees getting $20,000, and GS 13 or higher employees getting $25,000.
The agency said employees who opt for the VSIP will be placed on administrative leave through April 19, when they must separate through the SSA. The message said that VSIPs may go to those who opt for an optional retirement, voluntary early retirement, or resignation as part of the changes.
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The message to the Social Security Administration’s workforce comes as cuts have affected departments in the agency under the early weeks of the Trump administration’s DOGE efforts.
Two SSA offices, the Office of Civil Rights and Equal Opportunity and the Office of Transformation, were shuttered earlier this week, and employees in those offices were placed on administrative leave.
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