How is the SIP calculated?
The SIP is the lesser of $25,000.00 or an amount the employee would be entitled to receive under the severance pay formula: i.e. one week’s pay at the rate of basic pay immediately before separation for each year of civilian service up to and including 10 years, and 2 weeks basic pay at the rate of each year of civilian service beyond 10 years, plus an age adjustment allowance of 10% for each year over age 40 at the time of separation. Incentive payments cannot exceed one year’s salary at the rate of pay immediately preceding separation.
