Under recently finalized rules, all federal agencies now have the authority to offer buyouts. In order to use this authority, the agency would have to submit a plan to the Office of Personnel Management detailing how they would use the buyouts. This does not mean that buyouts are “coming soon to an agency near you”, but it does give agencies greater flexibility to offer buyouts. Agencies already have a great deal of leeway in deciding whether or not to offer early outs.
What does this mean to the average federal employee? Well, it might mean that their agencies are more likely to use these tools during reorganizations.
What should the average federal employee consider when looking at a potential buyout or early out? Several things come to mind.
Can I actually afford to live on the amount I may be getting as an early out pension?
How much in future pension benefits will I be giving up if I take an early out?
If I cannot afford to live on my pension, what would I do to supplement my pension income?
Do I have the skills needed to do whatever it is I need to do to bring in the extra income?
Are there actual opportunities in my area where I can make enough money using the skills I now have?
Is there any likelihood that I will return to government service within five years of accepting a buyout?
Too many people who accept an early out or buyout offer are focused on the fact that they do not like where they are now. They focus on the “from” part of the transition they will be making. Adequate time must be given to the “to” part of the equation.
You should begin to think of whether you want to take an early out or buyout long before it is offered. This will allow you to consider all of the pros and cons without feeling the pressure of having to make a decision before the offer of buyout or early out is withdrawn. With buyouts and early outs, as with other decisions we make in life, the more prepared we are and the more information we have – the better decision we will make.
** John Grobe, President of Federal Career Experts, is the contributing editor of FEDweek’s The Federal Employees Career Transition Handbook and an expert in employment and job search issues. He provides career advising services to individual employees. John can be reached at (708) 771-2445 or johngrob@ripco.com. **
