PRESIDENT SIGNS GOVERNMENT BUYOUT BILL:
HAILED AS MOST EFFECTIVE MANAGEMENT TOOL

Washington, D.C. -- Office of Personnel Management Director Jim King hailed today's signing of buyout legislation as the single-most important management tool government has been given to improve service and reduce the cost to taxpayers.

The legislation, signed by President Clinton, enables federal agencies to offer voluntary separation incentives (buyouts) of up to $25,000 to employees who resign or retire.

"Buyouts build on successful private sector experience, and they make good management sense," said Jim King. "Now that there is an incentive for people to leave government employment, federal agencies and departments will carry-on with the job of creating a government that works better and costs less."

Contained in the "Federal Workforce Restructuring Act of 1994," the buyout authority is part of President Clinton and Vice President Al Gore's overall plan to improve the effectiveness of government. Officially known as the voluntary separation incentive program, the buyout authority is based on a proven, humane way to cut personnel costs through the immediate and voluntary paring of the size of the work force.

Buyouts have been used successfully in industry, and recently with the Department of Defense where approximately 30,000 employees accepted buyouts.

"With Congressional approval of the bill, federal agencies may not have to resort to disruptive, inhumane and demoralizing reductions-in-force (RIFs) to reduce employment levels, with women and minorities disproportionately affected by seniority-based RIFs," said Jim King.

The buyout authority expires on March 31, 1995. During this period, agencies will examine their mission, re-engineer their organizations and delayer redundant management as they decide where buyouts should be offered in their organizations.

The Office of Personnel Management has established an office to provide employees and agencies throughout government information on retirement benefits, downsizing and other related matters.

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Web page created 2 December 1997