A buyout, also called a voluntary separation incentive payment (VSIP), generally is offered to encourage eligible employees to separate voluntarily through resignation, early retirement, or regular retirement, during an agency downsizing or restructuring. As a practical matter, buyout offers commonly are coupled with early retirement offers.
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These benefits are paid to persons unemployed through no fault of their own and who meet other eligibility requirements. These are matters of state law even though the federal government was the employer. In general, the law of the state in which your last official duty station in federal civilian service was located will determine eligibility for unemployment insurance benefits.
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Individuals who were involuntarily separated from the federal government for various reasons not relating to performance or conduct have certain rights to re-enter the competitive service workforce without competing with the public and to apply for federal vacancies open only to “status” candidates. You also would have to meet the job qualification standards and other requirements.
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