The Department of Commerce has received approval from the Office of Personnel Management (OPM) for Voluntary Early Retirement Authority (VERA) and Voluntary Separation Incentive Payments (VSIP) authorities now through Thursday, April 17, 2025.

Eligibility Requirements

All employees, in all positions, at all grade/band levels, in every geographic location except for positions focused on immigration enforcement, national security, wage mariners, patent examiners, trademark examining attorneys, supervisory patent examiners, supervisory trademark examining attorneys, or public safety can apply for VERA or VSIP. The authorities can be used alone or together to incentivize employees to leave voluntarily to avoid or lessen the impact of a Reduction in Force (RIF). 

• VERA allows some younger employees and those with fewer years of service to retire and receive an immediate annuity (pension) and carry their FEHB participation into retirement.
• VSIP authority allows the Department to offer employees a lump-sum payment of up to $25,000 as an incentive to voluntarily separate. Employees do not need to be retirement eligible to accept the VSIP. 

Note that an employee who is separated during a RIF will not receive severance pay if they are eligible for retirement (including uniformed service retirement.) VERA and VSIP allow such employees to retire before a RIF and receive some or all of their severance entitlement (up to $25,000.)

VERA and VSIP Guidance

Employees may apply to VERA and/or VSIP authorities through Thursday, April 17, 2025, and must be offboarded (via resignation or retirement) no later than Saturday, May 3, 2025. 

Employees who elect to separate under VERA and/or VSIP may also elect to be placed on administrative leave from the date their application is approved through the date of their separation. Employees that would like to apply for VERA and/or VSIP may do so through their supervisor, in coordination with their servicing human resources office. 

Eligibility and other information can be found on the OHRM VERA and VSIP webpages.

FAQs

1. When will the VERA/VSIP authorities be offered?

Employees may apply to VERA and/or VSIP authorities through April 17, 2025.

2. When will employees be offboarded using these VERA/VSIP authorities?

Employees must be offboarded using these VERA/VSIP authorities no later than the end of Pay Period 8, Saturday, May 3^rd, 2025. 

3. Can I accept this VERA/VSIP offer if I am separating through the Deferred Resignation Program (DRP)?

No. Employees that have accepted the deferred resignation program are not eligible for this VERA/VSIP offering.

4. Will administrative leave be offered, like under the DRP?

Employees may elect to be placed on administrative leave effective the date their VERA/VSIP application has been approved by their servicing human resources office. Supervisors may delay placing an employee on administrative leave for a short period of time in order to facilitate transfer of functions and separation clearance procedures. 

5. I am a remote worker, if I accept this VERA/VSIP, will I still need to return to in-person work?

No, employees may continue to perform remote work through the date of their separation. 

6. Will I be included in a Reduction in Force (RIF) if I accept the VERA/VSIP?

No. Employees separating under VERA/VSIP would be off the rolls and not included in a RIF.

7. Do I receive severance pay if I am separating under the VSIP?

No. Since leaving the agency to take a VSIP is a voluntary action, employees are not eligible for both severance pay and VSIP. The VSIP is equal to the amount that employees would be entitled to receive as severance pay, or $25,000, whichever is less.

8. Why should I take VERA and VSIP before a RIF if I will be eligible for Discontinued Service Retirement (DSR)?

An employee who is eligible for DSR, or receiving or eligible to receive a military/uniformed services retirement, will not receive severance pay if they are separated involuntarily during a RIF. If an employee accepts VERA and VSIP prior to a RIF, they will receive a VSIP payment equivalent to what they would have received as severance (if they had been eligible) or $25,000, whichever is lower. 

9. Can I wait to see if I will be separated during the RIF and then apply for VERA/VSIP?

Employees will not have an opportunity to find out if they will be separated through a RIF before the application window closes. One of the purposes of this offer is to reduce the complexity and disruption of a RIF by reducing the number of employees involved. Employees accepting VERA/VSIP must be separated before the RIF process starts.

10. What happens to my health insurance (FEHB) if I accept VERA and/or VSIP?

Employees who are not eligible to retire or elect not to retire will be eligible for Temporary Continuation of Coverage (TCC). Employees should consult their servicing human resources office for TCC information.

Employees who elect to retire, either through regular retirement or VERA, will generally be eligible to continue their FEHB coverage.

SHROs should apply the following instructions from OPM:

Those retiring in conjunction with this authority must have been covered under the Federal Employees Health Benefits (FEHB) and Federal Employees’ Group Life Insurance (FEGLI) programs (1) for the last 5 years of their Federal civilian service in order to continue such coverage in retirement, or (2) if less than 5 years, for all service since the employee was eligible for these benefits unless these requirements are waived.

For FEHB only, OPM will grant pre-approved waivers to employees who have been:

• Covered under the FEHB Program continuously since the beginning date of the agency’s latest statutory VSIP authority, or OPM-approved VSIP or VERA authority (March 11, 2025), and
• Retire during the statutory VSIP or OPM-approved VSIP/VERA period; and
• Receive a VSIP; or
• Take early optional retirement; or
• Take discontinued service retirement based on an involuntary separation due to RIF, directed reassignment, reclassification to a lower grade, or abolishment of position. 

Employees who meet these requirements do not need to write a letter requesting a waiver.  Instead, agencies must attach a memorandum to the employee’s retirement application stating that the employee meets the requirements for a pre-approved waiver by OPM as set forth in these instructions.  Please provide the Public Law number granting your agency VSIP authority or the VSIP (2025-012) or VERA (2025-117) approval number.  Also include the beginning and ending dates of your agency’s VSIP or VERA period.

The below only applies to OS, BIS, EDA, ITA, MBDA, and NTIA:

Updated March 2025.