Office of Personnel Management

Offer current federal employees cash retirement incentives

Offer cash retirement incentives for current federal employees who are eligible to retire. In 2007, OPM estimated that approximately 18% of the non-seasonal full-time permanent federal workforce was eligible to retire. By 2010 this was projected to be 36%. That is a lot of jobs and a significant source of federal spending. If the Federal Government offered cash retirement incentives (such as a $10,000 bonus) for those currently eligible to retire to encourage retiring it would create permanent jobs, boost the economy, reduce spending and therefore stimulate and recover the economy. Specifically it would 1) stimulate the economy by provide excess cash for inreased spending by these new retirees, 2) it would reduce government spending because this part of the work force is the most expensive in that the majority are near the top of their pay level, 3) it would increase the numbers of long term jobs and reduce unemployment by creating career vacancies within the federal workforce, and 4) it would reduce government spending because these new employees who replace retirees would be starting at the bottom of the pay schedules. Many of the new employees would bring skill sets using modern technologies that the aging workforce have difficulty with. The new employees would also bring new ideas and new energy to the federal government building the workforce for the next 30-years.

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Idea No. 1453