---
kind: "section"
citation: "5 U.S.C. § 3523"
title: "5"
title_heading: "Government Organization and Employees"
number: "3523"
heading: "Authority to provide voluntary separation incentive payments"
release: "119-102"
url: "https://uscodex.org/usc/5/3523"
units:
  - "Part III — Employees"
  - "Subpart B — Employment and Retention"
  - "Chapter 35 — Retention Preference, Voluntary Separation Incentive Payments, Restoration, and Reemployment"
  - "Subchapter II — Voluntary Separation Incentive Payments"
---

# §3523. Authority to provide voluntary separation incentive payments

- (a) A voluntary separation incentive payment under this subchapter may be paid to an [employee](/usc/5/5361.md?p=1) only as provided in the plan of an [agency](/usc/5/3521.md?p=1) established under [section 3522](/usc/5/3522.md).
- (b) A voluntary incentive payment—
  - (1) shall be offered to [agency](/usc/5/3521.md?p=1) [employees](/usc/5/5361.md?p=1) on the basis of—
    - (A) 1 or more organizational units;
    - (B) 1 or more occupational series or levels;
    - (C) 1 or more geographical locations;
    - (D) skills, knowledge, or other factors related to a [position](/usc/5/5531.md?p=2);
    - (E) specific periods of time during which eligible [employees](/usc/5/5361.md?p=1) may elect a voluntary incentive payment; or
    - (F) any appropriate combination of such factors;
  - (2) shall be paid in a lump sum after the [employee](/usc/5/5361.md?p=1)’s separation;
  - (3) shall be equal to the lesser of—
    - (A) an amount equal to the amount the [employee](/usc/5/5361.md?p=1) would be entitled to receive under [section 5595(c)](/usc/5/5595.md?p=c) if the [employee](/usc/5/5361.md?p=1) were entitled to payment under such section (without adjustment for any previous payment made); or
    - (B) an amount determined by the [agency](/usc/5/3521.md?p=1) head, not to exceed $25,000;
  - (4) may be made only in the case of an [employee](/usc/5/5361.md?p=1) who voluntarily separates (whether by retirement or resignation) under this subchapter;
  - (5) shall not be a basis for payment, and shall not be included in the computation, of any other type of Government benefit;
  - (6) shall not be taken into [account](/usc/5/8401.md?p=1) in determining the amount of any severance pay to which the [employee](/usc/5/5361.md?p=1) may be entitled under [section 5595](/usc/5/5595.md), based on another other[^1] separation; and
  - (7) shall be paid from appropriations or funds available for the payment of the basic pay of the [employee](/usc/5/5361.md?p=1).

## Footnotes

[^1]: So in original.

## Source credit

(Added Pub. L. 107–296, title XIII, § 1313(a)(1)(A), Nov. 25, 2002, 116 Stat. 2293.)

## Notes

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective 60 days after Nov. 25, 2002, see section 1313(a)(4) of Pub. L. 107–296, set out as a note under section 3521 of this title.