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
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
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
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
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.