HOW IS THE SEPARATION INCENTIVE PAID?
It is paid in a lump sum at the time of separation (less FICA/Medicare taxes, federal income tax withholding, and applicable state and local taxes). ARE THERE ANY VSIP COSTS TO THE ARMY OTHER THAN THE INCENTIVE AMOUNT? Yes, under Public Law 105-85, November 18, 1997, the Army must pay 15% of the final annual basic pay for each VSIP paid on or after October 1, 1997 to the Civil Service Retirement Disability Fund (CSRD). This applies to an employee covered by the Civilian Service Retirement System (CSRS) or Federal Employees Retirement System (FERS), regardless of the type of buyout separation. ARE THERE ANY RESTRICTIONS ASSOCIATED WITH THE RECEIPT OF VSIP? Yes, there are restrictions on re-employment and requirements to repay the VSIP if re-employed. Since VSIP reemployment and repayment provisions for Department of Defense employees have been affected by several different laws and regulations, the DOD Field Advisory Services Office has provided the following guidance: – Former Federal
Related Questions
- The date of separation is November 30 which is a Monday. Do I have to work Monday to be paid for the holiday and furlough day of the week prior?
- What are the benefits of the proposed Pedestrian Grade Separation? How will that be paid for?
- How much extra money do deployed soldiers get paid for separation pay when they e married?
