The FDIC will offer buyouts and early retirement offers to about 20 percent of its workforce, a move it says is designed to “reduce layers of management, acquire new skillsets, and allow the agency to proactively address succession planning prior to any crisis or emergency situation.”
Because the quasi-corporate FDIC operates outside of many general federal personnel policies it is able to offer buyouts much larger than most: generally, six months of salary and for some administrative employees up to a full year, compared to a maximum of $40,000 at DoD and $25,000 elsewhere.
Eligible employees will be notified in upcoming weeks and will have to decide whether to accept by May 4, with separation required by June 6. As part of the process, the agency will close or consolidate several field offices.
The agency said that the move is a reaction to several recent studies, including one by the agency’s IG, raising concerns about an imbalanced workforce. Within five years, 42 percent of the current workforce of about 5,800 will be eligible for retirement, “which could deplete the FDIC’s institutional experience and knowledge, especially during a crisis.”
“Over the past 15 years, the number of senior managers and executives at the FDIC has grown at more than twice the rate of the agency’s total workforce, creating an imbalance that challenges the agency’s agility and its long-term goal of supporting employee empowerment and succession management,” it said.
“This program is not designed to reduce the FDIC budget or the overall size of the workforce. Indeed, the agency remains focused on retaining and growing its examination and risk-related workforce, as well as adding specialized information technology, computer science, data management, and loan review skills at various levels throughout the agency,” it added.
How it works: Early outs, buyouts, reduction in force (RIF)