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March 10, 2025
by Ferdous Al-Faruque

FDA reviewers, inspectors, and investigators excluded from $25K buyout offer

Editor's Note: This article has been updated with details from a new email sent to HHS staff about the VSIP program.

On Friday evening, the US Department of Health and Human Services (HHS) sent a department-wide email offering a $25,000 incentive for staff to voluntarily leave their jobs; however, Focus has confirmed that this offer does not apply to staff serving in several critical functions at the Food and Drug Administration.
 
The Voluntary Separation Incentive Payments (VSIP) program enables agencies to offer lump sum payments to entice workers to quit and follows multiple efforts by the Trump Administration to slash the size of the federal workforce, including a previous buyout offer, mass layoffs of probationary staff, mandatory return-to-office policies, and a voluntary early retirement offer.
 
However, the $25,000 incentive does not apply to review staff in FDA’s medical product centers, inspectors and investigators in the Office of Inspections and Investigations, or other positions such as physical and cybersecurity roles. The offer also does not apply to those serving as officers in the Public Health Service (PHS) Commissioned Corps.
 
To qualify for the offer, eligible staff must notify their HR office by Friday, 14 March.
 
The news came just days after HHS gave veteran staff a 10-day window to voluntarily retire early under the Voluntary Early Retirement Authority (VERA) program. That program only applies to staff who are at least 50 years old with 20 years of federal service, or any age with 25 years of service. (RELATED: This Week at FDA: Nomination hearings, FDA lease cancellations, and more, Regulatory Focus 7 March 2025)
 
“Through VSIP, OPM ‘allows agencies that are downsizing or restructuring to offer employees lump-sum payments up to $25,000 as an incentive to voluntarily separate,’” said HHS in an email reviewed by Focus. “If you would like to apply, please submit your required information to your local HR Benefits Office via email before 5:00pm on Friday, March 14, 2025.”
 
The department noted that this offer is in addition to the VERA program.
 
However, by Monday, 10 March, HHS clarified in another email seen by Focus that not all FDA employees were eligible for the VSIP buyout. The department said: “VSIP may be paid for an optional retirement (full retirement age), VERA retirement, or resignation.” HHS said VSIP was unavailable to those who had already accepted the Deferred Resignation Program (DRP) offered last month. (RELATED: This Week at FDA: Kennedy faces Senate scrutiny, Trump’s ‘buyout’ offer to federal employees, Regulatory Focus, 31 January 2025)

After this article’s publication on Monday, FDA staff received a subsequent email, which has been reviewed by Focus, that provides additional detail about the VSIP program. Staff were told that if they were to accept the buyout they would be put on administrative leave and receive full pay and benefits for eight weeks after their request has been approved.
 
"This is in addition to the lump sum payment you will receive under the VSIP program," said HHS. "Once you are placed on administrative leave, you will have no further obligation to report for duty at HHS and you may seek outside employment.”
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