Title 5Government Organization and EmployeesRelease 119-73not60

§3523 Authority to Provide Voluntary Separation Incentive Payments

Title 5 › Part III— EMPLOYEES › Subpart B— Employment and Retention › Chapter 35— RETENTION PREFERENCE, VOLUNTARY SEPARATION INCENTIVE PAYMENTS, RESTORATION, AND REEMPLOYMENT › Subchapter II— VOLUNTARY SEPARATION INCENTIVE PAYMENTS › § 3523

Last updated Apr 3, 2026|Official source

Summary

Agencies may pay a voluntary separation incentive only if their plan under section 3522 allows it. Agencies can offer the payment to employees by unit, job series or level, location, skills, a set time period, or a mix of those factors. The payment is a single lump sum after the employee leaves. The amount is the smaller of what the employee would get under section 5595(c) (without adjusting for any prior payment) or an agency-set amount up to $25,000. Only employees who leave voluntarily (retire or resign) under this subchapter qualify. The payment does not count toward other Government benefits or change severance under section 5595, and it must come from funds available for the employee’s basic pay.

Full Legal Text

Title 5, §3523

Government Organization and Employees — Source: USLM XML via OLRC

(a)A voluntary separation incentive payment under this subchapter may be paid to an employee only as provided in the plan of an agency established under section 3522.
(b)A voluntary incentive payment—
(1)shall be offered to agency employees on the basis of—
(A)1 or more organizational units;
(B)1 or more occupational series or levels;
(C)1 or more geographical locations;
(D)skills, knowledge, or other factors related to a position;
(E)specific periods of time during which eligible employees may elect a voluntary incentive payment; or
(F)any appropriate combination of such factors;
(2)shall be paid in a lump sum after the employee’s separation;
(3)shall be equal to the lesser of—
(A)an amount equal to the amount the employee would be entitled to receive under section 5595(c) if the employee were entitled to payment under such section (without adjustment for any previous payment made); or
(B)an amount determined by the agency head, not to exceed $25,000;
(4)may be made only in the case of an employee who voluntarily separates (whether by retirement or resignation) under this subchapter;
(5)shall not be a basis for payment, and shall not be included in the computation, of any other type of Government benefit;
(6)shall not be taken into account in determining the amount of any severance pay to which the employee may be entitled under section 5595, based on another other 11 So in original. separation; and
(7)shall be paid from appropriations or funds available for the payment of the basic pay of the employee.

Legislative History

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Section effective 60 days after Nov. 25, 2002, see section 1313(a)(4) of Pub. L. 107–296, set out as a note under section 3521 of this title.

Reference

Citations & Metadata

Citation

5 U.S.C. § 3523

Title 5Government Organization and Employees

Last Updated

Apr 3, 2026

Release point: 119-73not60