THE WHITE HOUSE

Office of the Press Secretary

FEDERAL WORKFORCE RESTRUCTURING ACT OF 1993

Federal workers deserve to have the best training available. They need to be better trained and more prepared in today's multiskilled workforce. And, they should be trained to meet the mission and performance goals of their agency or department, not just told to perform "official" duties. That's why the President, following the recommendations of the National Performance Review, has directed the federal government to change and improve the way employees are trained.

• Training can be used to advance an employee's professional goals, regardless of whether the training pertains to the employee's current occupation or profession. In addition, this policy will benefit government by creating an environment more conducive to meeting agency goals and missions.
• The most cost-efficient and effective training available, whether offered by government or the private sector, will be provided to employees.

The federal government can be more efficient and cost-effective. The National Performance Review recommends streamlining the federal bureaucracy by 12 percent. To help meet this goal, the Federal Workforce Restructuring Act will allow a time-limited buyout program for eligible employees. Executive Branch agencies will be authorized to pay a voluntary separation incentive to employees who retire or resign during a three-month "window." The amount of the voluntary separation incentive is the amount the employee would be entitled to receive as severance pay, or $25,000, whichever is less.

• The window of opportunity will be designated by each agency head in the period beginning on the date of enactment and ending on September 30, 1994. Employees eligible for an incentive are those who have permanent employee status and at least one year of service. Employees with the Department of Defense and Central Intelligence Agency (CIA), who already are covered by similar programs are excluded, as are reemployed annuitants and those eligible for disability retirement.
• Separation incentives will be paid in a lump sum after the employee's separation and will be fully taxable for the year received.
• The agency head will designate components, occupations, particular locations, etc., where separation incentives will be offered. The Administration expects agency heads to personally approve any incentive payment to members of the Senior Executive Service.
• The Office of Management and Budget will approve agencies' plans for use of the voluntary separation incentives.
• To continue the performance of critical agency missions and to implement elements of the NPR, the head of each agency will have the authority to delay an employee's separation for up to two years.
• For every two separation incentives paid, agencies would reduce employment by one position.
• An employee who receives a voluntary separation incentive will have to repay the full amount if he or she is reemployed by the federal government within two years of the separation service. The repayment requirement may be waived for individuals filling "hard to fill" positions. The repayment requirements also applies to similar Department of Defense and CIA programs.

To remedy a long-standing problem for the Civil Service Retirement System (CSRS), the "underfunding" of early retirements, the Act also provides for a change in annuity. Effective at the same time as the voluntary separation incentive program, agencies will now be required to pay an extra 9 percent of the CSRS-covered employee's final annual salary for each early retirement. The proposal will apply to all early retirements, not just those resulting from voluntary separation incentive programs. As a result, federal workers will be guaranteed to have full retirement benefits.

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