Federal Workforce Early Separation Incentives Act

This legislative proposal, titled the Federal Workforce Early Separation Incentives Act, aims to significantly modify the limits on voluntary separation incentive payments for federal employees. It specifically amends section 3523(b)(3) of title 5, United States Code, to revise how these incentives are calculated and capped. Under the proposed changes, an agency head would gain the authority to determine the specific amount of a voluntary separation incentive payment. This amount, however, would be capped at a maximum of six months' pay , calculated at the employee's rate immediately before separation. The method for determining this limit would align with the calculation for total severance pay under section 5595(c), providing a standardized approach for increased flexibility in managing the federal workforce.