The Social Security Administration is offering financial incentives ranging from $15,000 to $25,000 to employees who choose to voluntarily resign from the federal agency, ahead of what they warn will be “significant workforce reductions.”
A message sent out to employees Thursday stated that the agency will soon implement restructuring that includes workforce cuts and “massive reorganizations.”
The SSA said that wholesale “abolishment of organizations and positions” could happen, as well as reassignments and staff cuts.
Earlier this week, the Office of Personnel Management advised agencies to submit “reorganization plans” by March 13 and prepare for “reductions in force.”
Thursday’s message offers all Social Security employees three options ahead of the agency’s expected cuts: voluntary reassignment “to a mission critical position,” voluntary early retirement, if eligible, or “voluntary separation incentive payments,” if eligible.
Those who would take the voluntary separation incentive payment must opt in by March 14 and leave the agency no later than April 19. The option echoes the “fork in the road” or deferred resignation program from OPM, in which eligible federal employees could resign from their positions and retain full pay and benefits until Sept. 30.
The incentive payments offered the SSA is dependent on an employee’s classification, or where they stand on the federal payscale. Those with a GS-8 or under would get $15,000, while those classified with GS-9 to GS-12 would receive $20,000. Those with a GS-13 or higher would receive $25,000.
SSA notes that employees who opt in may be put on administrative leave through April 19 and must not have already opted into the buyout program offered by OPM earlier this year.
Nancy Altman, the president of the advocacy group Social Security Works, told CBS News they fear employees may opt in to get the separation payment, and that it could already strain the benefits agency she said is in need of more investment to shorten wait times and open more field offices, not cuts.
“If people don’t take it, then they’re going to be constantly looking over their shoulder, looking through their email waiting to see if they get fired,” Altman said. “It’s going to add stress, chaos and uncertainty.”
Altman added that employees should first see if their severance pay from a potential termination could be more than what the SSA is offering for voluntarily resigning.
Jill Hornick, a 33-year Social Security employee, noted that public-facing employees who work in field offices and handle claims at Social Security’s 1-800 number were told by former acting SSA Commissioner Michelle King that they were exempt from OPM’s buyout offer.
“[King] knew it would hurt public service” if these hires were allowed to take the offer, said Hornick, who is also an administrative director at an Illinois local chapter of the American Federation of Government Employees, which nationally represents hundreds of thousands of federal workers. “Because we’re at a 25-year staffing low.”
Now that this separation incentive is available to them, Hornick said she has “no doubt” these frontline employees will take it, and warned that processing times for claims could “go through the roof.”
“I have been trying to reassure [these] employees to take a deep breath. They’re terrified, scared to death they will not have a job tomorrow, and put a roof over their head. It’s just been one thing after another this week,” Hornick added.
The incentive payments offer does not apply to probationary employees, who generally have less than a year on the job, and must have worked in the executive branch for at least three years.
Those looking to retire early must opt in between March 1 and Dec. 31. To be eligible for early retirement, an employee must be at least 50 years old and have 20 years of “creditable service,” or have 25 years of creditable service at any age.
The SSA has seen several changes in recent weeks. Acting SSA Commissioner Leland Dudek was appointed to the role after the previous commissioner, King, was resistant to allowing staff with the White House’s Department of Government Efficiency, or DOGE, get access to sensitive agency data.
Earlier this week, two SSA offices were closed — the Office of Transformation and the Office of Civil Rights and Equal Opportunity — which resulted in 190 staffers being put on administrative leave.