Announcement of Workforce Optimization
Two days before the March 26 payment date, the Social Security Administration (SSA) hinted at potential layoffs. In its ‘Transparency and Accountability’ release on Monday, the agency stated that it has ‘identified opportunities to optimize its workforce by offering voluntary opportunities’.
Impact on Services
The release coincided with a report by Axios, which indicated that the SSA is accelerating cuts to phone services at the behest of the White House. The report suggested, ‘changes will strain the already struggling Social Security system and could even deprive some people of benefits entirely’.
A White House official stated that the Trump administration is focused on eliminating ‘waste, fraud and abuse’ at Social Security.
Developments on Workforce Plans
According to the release, the SSA has added a ‘Workforce Update’ section to its website, offering opportunities for employees to leave the agency or transition to frontline customer service positions.
Deferred Resignation Program (DRP)
The SSA initiated the Deferred Resignation Program (DRP) for non-mission critical employees, closing applications on February 12, 2025. A total of 345 eligible employees have opted for paid administrative leave until September 30, 2025.
Voluntary Separation Incentive Payment (VSIP)
The VSIP program provides a one-time payment of up to $25,000 for eligible employees who leave federal service. By the March 14, 2025 deadline, 2,674 employees expressed interest, with 2,477 confirmed applicants. The breakdown includes:
- 1,153 employees opting for retirement
- 925 choosing early retirement
- 399 resigning without retirement
Payment incentives vary by General Schedule level:
- Up to GS-8: $15,000
- GS 9-12: $20,000
- GS 13 and above: $25,000
Voluntary Early Out Retirement (VERA)
The VERA program, initially for non-mission critical staff, has expanded to all SSA employees, remaining open until December 31, 2025. Employees must inform supervisors of their retirement intent by November 1, 2025.
Voluntary Reassignments
To enhance staffing in critical areas, all employees can volunteer for reassignment to essential roles in various local offices and support centers. By the March 14, 2025 deadline, 2,259 employees volunteered for reassignment with training provided as necessary.
Reduction-in-Force (RIF) Plan
The SSA submitted a draft RIF plan to the Office of Personnel Management by March 13, 2025. The agency indicated that the implementation date is not set; however, if sufficient voluntary separations occur, an RIF may be avoided. Updates will be shared as they develop.
