The Social Security Administration (SSA) has recently begun offering financial incentives to employees who voluntarily resign, a move that signals significant impending staff reductions. These incentives range from $15,000 to $25,000, depending on the employee’s position on the federal payscale.
The organization sent a memo to employees last Thursday detailing upcoming restructuring efforts that will lead to workforce reductions and major reorganizations. The SSA warns of possible abolishment of entire organizations and positions, along with staff cuts and reassignments.
This week, the Office of Personnel Management (OPM) suggested that agencies prepare “reduction in force” plans by March 13. The SSA message outlines three options for Social Security employees in anticipation of the expected cuts: voluntary reassignment to a critical role, voluntary early retirement if eligible, or voluntary separation incentive payments if eligible.
Those who choose the voluntary separation incentive payment must do so by March 14 and leave the agency by April 19. This option is similar to the OPM’s “fork in the road” or deferred resignation program, allowing federal employees to resign while maintaining full pay and benefits until Sept. 30.
The amount of the incentive payment depends on an employee’s classification within the federal payscale. Those at GS-8 or below will receive $15,000, those at GS-9 to GS-12 will receive $20,000, and those at GS-13 or above will receive $25,000.
Nancy Altman, president of advocacy group Social Security Works, expressed concern that employees may take the separation payment, potentially straining an agency already in need of more investment. Altman warns that these cuts could lead to longer wait times and fewer field offices.
Employees who do not take the incentive may face constant uncertainty and stress, according to Altman. She advises employees to compare the SSA’s voluntary resignation offer with potential severance pay from a termination.
Jill Hornick, a veteran SSA employee, mentioned that former acting SSA Commissioner Michelle King had exempted public-facing employees from the OPM’s buyout offer due to potential negative impacts on public service. With the new separation incentive, Hornick fears that processing times for claims could drastically increase.
Employees eligible for the incentive payments must have worked in the executive branch for at least three years, excluding probationary employees. Employees looking to retire early can opt in between March 1 and Dec. 31, provided they meet certain age and service requirements.
The SSA has experienced several changes recently, including the appointment of Acting SSA Commissioner Leland Dudek and the closure of two SSA offices, resulting in 190 employees being placed on administrative leave.
