INCENTIVE PAYMENTS – HOW MUCH & WHEN
1. What is the incentive amount for full-time employees?
The total incentive amount for full-time employees is $15,000.
2. How is the incentive pay for full-time employees going to be paid out?
At approximately mid month after the effective date of retirement or separation, each eligible full-time employee will receive an initial incentive of $10,000 (less required deductions and withholdings). The remaining $5,000 (less required deductions and withholdings) balance will be paid approximately one year later.
3. What is the incentive amount for part-time employees?
The incentive for part-time employees will be prorated based on an agreed upon payment plan that factors in the number of hours an employee has worked – namely, the number of hours paid in the twenty-six full pay periods prior to 8/24/09. Part-time employees can calculate their incentive amount by reviewing their pay stubs and adding up the hours between pay period 18-08 and pay period 17-09. Incentive pay will be based on the following schedule:
Number of Paid Hours Percent of Incentive Payment
Under 520 25
520 and under 1020 50
1020 and under 1520 75
1520 and over 100
Prorated percentages will be applied separately to the $10,000 and $5,000 payments (less required deductions and withholdings).
4. How is the incentive pay for part-time employees going to be paid out?
Part-time flexible and part-time regular employees will receive the initial, prorated lump sum payment (less required deductions and withholdings) at approximately mid month after the effective date of retirement. The remaining prorated balance will be paid approximately one year later (less required deductions and withholdings).
5. Where will my incentive payments be mailed?
Just like terminal leave, incentive payments will be mailed to the installation head of the duty station from which you retire or separate. It is incumbent upon you, the employee, to speak with your supervisor and make arrangements for incentive payment pickup.
6. When will I receive my initial lump sum incentive payment?
The initial lump sum incentive payment will be paid out based on the retirement or separation date as follows:
§ Retire/separate before 10/31/09, payment is made approximately three to six weeks after retirement or separation
§ Retire/separate on 10/31/09, payment is made on December 11, 2009
§ Retire/separate on 11/30/09, payment is made on January 10, 2010
§ Retire/separate on 12/31/09, payment is made on February 5, 2010
7. What deductions will be withheld from my lump sum payment(s)?
The following deductions will be withheld from your lump sum payment(s):
§ Federal Income Tax
§ State Income Tax (if applicable)
§ Medicare Tax
§ Social Security-OASDI Tax*
*Applies only to FERS and CSRS Offset employees.
