1. Provide departments and agencies with the authority to offer separation pay. By October 1993, OPM should forward draft legislation to Congress to permit any department or agency to offer cash payments to encourage eligible employees to voluntarily separate from the federal service, whether by retirement or resignation, to avoid or minimize the need for involuntary separations due to reduction in force, reorganization, transfer of function, or similar action. The legislation should include a comprehensive, governmentwide strategy for determining the dates during which cash payments would be offered to maximize acceptance rates. Eligible employees would be those serving under permanent appointment without time limitation for a continuous period of at least 12 months, excluding reemployed annuitants and employees who would otherwise be eligible for disability retirement. The law will include a provision requiring repayment of separation pay should the individual become reemployed by the federal government within two years of the date of separation. Departments and agencies will fund the costs of this measure from within their available appropriations.
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