Farm Service Agency employees to get buyout offers

The Agriculture Department announced Monday that it is preparing to offer buyouts to hundreds of Farm Service Agency employees due to a budget shortfall.

In a note to employees, Michael Yost, associate administrator for farm programs, wrote that, "despite FSA's attempt to secure full funding," budget cuts will result in about 850 fewer positions than were authorized for fiscal 2005.

FSA will offer 214 permanent employees and 321 county employees the opportunity for voluntary buyouts or early-out incentives. The buyout option will be available to those employees who already are eligible to retire and to those who are either at least 50 years old with 20 or more years of service or any age with 25 or more years of service.

The remainder of the 850 positions are being reduced through cutbacks in temporary employees and by not replacing employees who left before the buyout incentives were offered, according to John Williams, deputy administrator for management at the agency.

Employees who receive one of the options will collect a lump sum payment of up to $25,000. If the calculated severance pay is less than $25,000, the worker will receive that amount. Severance pay is equal to one week's pay for the first 10 years of federal service and two weeks' pay for every year over that. In addition, employees will receive 10 percent more for every year worked over the age of 40. The payouts are subject to all applicable taxes.

Eligible employees have until midnight on Sept. 6 to apply for the early-out option. They must leave the agency between Oct. 1 and Nov. 3.

Yost said FSA is "undergoing business process modernization efforts" and wants to update the skills of some employees in program development and information technology. As a result, up to 55 of the 214 federal positions could be "backfilled" by new employees with the right skills, amounting to a reduction of only 159 federal employees.

In order to be eligible for the buyouts, employees must have worked three consecutive years for the Agriculture Department and must have been permanent employees since at least July 9. Employees who receive a buyout option and then return to work within five years are required to pay back the incentive payment.

Williams said the Office of Personnel Management granted FSA's request for the authority to offer the buyouts on Tuesday.

Employees can apply for the voluntary separation by filling out this form and faxing it to 202-418-9121 or 202-418-9123.