Under a proposal under consideration at the Pentagon, the Defense Department would be able to offer buyouts to federal employees outside DoD.
Under the proposal being discussed by Pentagon human resource managers, non-Defense employees could be offered cash payments to encourage them to retire or resign, provided DoD employees who are slated to be laid off are available to fill their positions.
Cross-agency buyout offers would require a change to current law.
The buyout plan is one of 26 legislative proposals the Pentagon may introduce next year, though the discussion paper laying them out cautions that the suggestions are "pre-decisional" and "for discussion only." Many of the proposals are designed to make downsizing easier on employees by lessening the penalties for early retirement, offering incentives to employees who seek outside employment, and expanding the department's buyout program.
A modified buyout proposal, called the Alternative Form of Annuity, would allow DoD employees a one-time chance to withdraw their retirement contributions and receive a reduced pension. Currently the Alternative Form of Annuity is available only to employees who have a life-threatening illness or other critical medical condition. Expanding the option to all employees "would encourage retirement and serve to significantly draw down the workforce, creating organizational agility, accommodating skills refinement and permitting humane downsizing," the Pentagon's discussion paper says.
Some proposals suggest pay changes for civilian employees. For example, civilians deployed during hostilities would receive special pay, leave and insurance benefits, as well as special federal tax treatment, the discussion paper suggests. Another proposal would give team leaders a pay differential above their subordinates in place of a grade increase. Federal supervisors designated as team leaders have complained that they are not fairly compensated for their responsibilities (See Taking the Fall, November 1997).
Additional proposals include:
- Allowing DoD to pay for employees to get professional licenses, certifications and examinations.
- Extending health insurance coverage for employees who are laid off.
- Paying employees stationed overseas a locality rate.
- Paying an allowance to employees who are proficient in a foreign language while they are stationed overseas.
- Transferring control over wage surveys from the Office of Personnel Management to DoD.
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