Waiver of Repayment of Voluntary Separation Incentive Payments

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The Federal Workforce Restructuring Act of 1994, Public Law 103-226, enacted March 30, 1994, generally requires that an employee who accepts a voluntary separation incentive payment must repay the entire amount of the payment to the agency that paid the payment if the employee is reemployed by the Federal Government, in either a temporary or permanent status, within 5 years following the effective date of separation on which the payment was based. The payment must also be repaid if the employee accepts a personal services contract with the Federal Government within the 5-year period. The Act allows Executive agencies to request waivers of repayment from the Office of Personnel Management if the individual the agency wants to reemploy possesses unique abilities and is the only qualified applicant available for the position. These regulations implement this waiver authority.