Office of Personnel Management

Saving money on the Separation from Federal Employment process

1) Allow separating federal employees, or SFE, (without gross misconduct) the option to not receive the forced pay-out of accrued Annual Leave totals. Instead, allow the SFE the ability to permit the federal government to invest those monies in an interest bearing fund, etc.


2) In return, allow returning employees who opted-in to this option the ability to have their Annual Leave reinstated to the levels present at the time of their respective separations.


3) The benefits are several-fold


a) The Federal government saves lump sum pay-outs for many separating employees that would assuredly opt-in to leave their accrued totals

b) The government earns interest on monies that normally would have been paid out.

c) Adds an additional benefit of becoming a federal employee, since the majority of federal employees who separate in good standing are doing it for personal reasons; moreover, most of these employees would give up the lump sum payment for the chance to have their Annual Leave reinstated once they are able to return to the federal workforce.

d) If the SFE opts-out of this option, then the federal government has neither gained, nor lost anything from how the system currently performs.



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Idea No. 11626