Many employees at HHS and its 13 operating and staff divisions (e.g., FDA, HHS-OIG, CDC, NIH) are eligible for either early retirement ("VERA") or a Voluntary Separation Incentive Payments ("VSIP").  As readers will recall, HHS (really OPM) illegally dismissed a number of probationary employees last month.  In addition, there was the “Fork in the Road” program that many employees were reluctant to take given the numerous articles about its lack of legal authority - employees were concerned that they could have compensation clawed-back over time.  

The VSIP and VERA programs, in contrast, are apparently consistent with the statutory authorities.  This, in addition to the provisions of VERA (20 years of service) , means that experienced and senior employees are eligible.  

We expect that these offers, combined with the general sense of uncertainty at the Department, will result in a material exodus of senior talent and leadership. 

As employees taking VERA must retire no later than April 19, 2025, we expect that many leadership positions will suddenly be vacant prior to the traditional rulemaking season.  These retirements will add an additional layer of uncertainty to the regulatory environment as experienced employees leave the agency without obvious replacements.   

Not all employees are eligible for VSIP, however.  FDA, for example, has exempted employees who are investigators or cybersecurity experts from the program.