What is it
Severance pay is a cash payment to an employee who is involuntarily separated from Federal employment and who meets the conditions of eligibility.
Who gets it
To be eligible for severance pay, and employee must be full or part-time (i.e., have a regularly scheduled tour of duty) have a regularly scheduled tour of duty, be serving under a qualifying appointment, have completed at least 12 months of continuous service, and be involuntarily separated from the Federal service. An employee who is eligible for an immediate annuity may not receive severance pay.
A "qualifying appointment" means a career or career-conditional appointment, a career SES appointment, an excepted appointment without time limitation (except under Schedule C or an equivalent appointment for similar purposes). Time limited appointment, unless they follow qualifying appointments within three calendar days, are not "qualifying" for purposes of this definition.
"Continuous service" means the employee must not have had a break in service of more than 3 calendar days between qualifying appointment. "Involuntarily separated" means the employee resigns or is separated after receiving a specific notice of separation or after receiving a general notice of reduction in force or transfer of function.
"Eligible for an immediate annuity" means at time of separation the employee fulfills either the CSRS or FERS retirement age and service requirements for an immediate annuity.
An "immediate annuity" is one that begins to accrue within 30 days of the employee's separation from Federal employment.
The specific age and service requirements under each retirement system are:
Optional Retirement | |
---|---|
CSRS | FERS |
Any age with 25 years service* | Any age with 25 years service* |
Age 50 with 20 years service* | Age 50 with 20 years service* |
Age 55 with 30 years service | Minimum retirement age (55-57) with 30 years service |
Age 60 with 20 years service | Minimum retirement age with at least 10 years service |
Age 62 with 5 years service | Age 60 with 20 years service |
  | Age 62 with 5 years service |
* Under an early retirement authority, or the special provisions for law enforcement officers and firefighters |
Discontinued Service Retirement |   |   | |||
---|---|---|---|---|---|
CSRS |   |   | FERS | ||
Any age with 25 years service |   |   | Any age with 25 years service | ||
Age 50 with 20 years service |   |   | Age 50 with 20 years service |