Expert's View

The prospect of an early out or buyout fires the imagination of federal employees. And when one doesn’t come their way, it creates a lot of frustration. Who gets the offers and who is left out can even raise dark suspicions about the integrity of the process.

Under the law and regulations, offers to retire early or offers of buyouts are required to come from an agency’s identification of specific positions and functions to be reduced or eliminated, identified by organizational unit, geographic location, occupational series, grade level, etc. These must be included in the plan an agency submits to OPM.

In addition, if buyouts are to be offered, the plan must contain a description of the categories of employees to whom the offers will be made by organizational unit, geographic location, occupational series, grade level, and such other factors as skills, knowledge, or retirement eligibility. In either case, the agency must describe how it will operate without the eliminated or restructured positions and functions and provide a proposed organizational chart displaying the expected changes in the agency’s organizational structure.

The ultimate purpose of early outs and buyouts is to encourage the voluntary departure of employees in areas that require downsizing or restructuring and reduce the negative impact on those in the same areas who remain. They are neither an employee right nor a reward.

Ideally, these authorities should be used with great objectivity, and, in the case of buyouts, targeted with surgical precision to meet agency needs. Not uncommonly that means getting rid of functions that are no longer needed, cutting staff to match reduced workloads, adjusting to changing technology, realigning to meet new goals or eliminating layers of management, especially at the upper levels.

While good behavior on an agency’s part is its own reward, it has another incentive to use these authorities properly. If it doesn’t, OPM can cancel its right to use them.