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Free tool · VSIP + VERA

VERA / VSIP Calculator

Offered a federal buyout? Estimate your VSIP amount (the lesser of your severance formula or the $25,000 cap) and check whether you qualify for VERA early retirement.

Your annual salary at separation, including locality pay.

Creditable civilian service

VSIP requires at least 3 years of continuous federal service.

Age at separation

Age affects the underlying severance formula and your VERA early-retirement eligibility.

Buyout cap

Most agencies cap VSIP at $25,000. DoD may offer up to $40,000.

Your estimated buyout and VERA eligibility appear here once you enter your pay, service, and age.

A buyout is capped at $25,000. Your next salary isn't.

VSIP is a one-time payment with a 5-year federal rehire bar. A private-sector role keeps every dollar of your buyout and replaces the paycheck. FedUp matches your federal experience with jobs that value it.

Find matching jobs

Or estimate your severance pay

How VSIP works

How your buyout is calculated

VSIP is not a flat $25,000 for everyone. It is built from the severance formula, then capped.

  1. 1

    Start from the severance formula

    VSIP is anchored to the amount of severance pay you would get under 5 U.S.C. 5595(c): one week of basic pay per year for your first 10 years, two weeks per year after that, plus an age adjustment if you are over 40.

  2. 2

    Apply your agency's dollar cap

    Your buyout is the lesser of that formula amount or your agency's cap — $25,000 for most agencies, up to $40,000 at the Department of Defense. Anyone with more than a handful of years of service typically hits the cap.

  3. 3

    Check VERA eligibility

    If your agency has an approved early-out, VERA lets you retire at age 50 with 20 years of service, or any age with 25 years. VSIP is the cash; VERA is the early pension. They are often offered as a pair.

  4. 4

    Weigh the 5-year rule

    Accepting VSIP bars you from federal employment for 5 years unless you repay it. A private-sector job does not affect your buyout, which is why many feds pair a buyout with a move to industry.

Eligibility

Who can take a VSIP

Your agency decides which positions are covered in each buyout window. These are the governmentwide rules.

Generally eligible

  • You have at least 3 years of continuous federal service.
  • You are in a position and organization covered by your agency's approved VSIP plan.
  • You apply for and are approved for the buyout by the agency making the offer.
  • You separate by resignation, optional retirement, or (with VERA) early retirement by the agency's deadline.

Generally not eligible

  • You received a student loan repayment benefit in the 36 months before separation, or a recruitment or relocation incentive in the prior 24 months, or a retention incentive in the prior 12 months.
  • You already received a VSIP from any federal agency.
  • You have a written agreement for future federal employment, or you are being removed for cause.
  • You are not in a covered position — coverage is set agency by agency for each buyout window.

Your agency HR office makes the official eligibility call and sets the buyout amount. This page is an estimate based on OPM rules, not tax, legal, or financial advice.

VSIP FAQ

Common questions

QHow is VSIP calculated?

Your VSIP buyout is the lesser of two amounts: the severance pay you would be entitled to under 5 U.S.C. 5595(c) — one week of basic pay per year for your first 10 years, two weeks per year after 10, plus 2.5% for every full 3 months over age 40 — or the dollar cap your agency sets, which is $25,000 for most agencies. Because the cap is low, most employees with more than a few years of service receive the full cap amount.

QCan VSIP be more than $25,000?

Not at most agencies. The governmentwide VSIP cap is $25,000. The Department of Defense has separate authority to offer up to $40,000. Your agency can offer less than the cap, but never more than its statutory limit — even if your severance-formula amount is higher.

QIs VSIP the same as severance pay?

No. VSIP is a voluntary buyout you accept to leave; severance pay is paid when you are involuntarily separated. VSIP uses the severance formula only to set the dollar amount. You cannot receive both for the same separation, and unlike severance, VSIP is available even if you are eligible for an immediate annuity.

QIs VSIP paid as a lump sum?

Usually yes. Most agencies pay VSIP as a single lump sum after you separate, though some pay in installments. It is taxed as supplemental wages, with federal income tax and Social Security/Medicare withheld.

QWhat is the difference between VERA and VSIP?

VERA (Voluntary Early Retirement Authority) lets you retire early — at age 50 with 20 years of service, or any age with 25 years — and start an immediate annuity. VSIP is the cash buyout. Agencies often offer them together during a reduction in force, but you can take VSIP without being VERA-eligible.

QDo I have to pay back VSIP if I return to federal work?

Yes. If you accept VSIP and return to federal employment within 5 years, you generally must repay the entire buyout before reentering. Taking a private-sector, state, or local government job does not trigger repayment.

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