The information on this page will evolve in response to employee questions. Please keep an eye out for important updates from OPSB and your Human Resources department.
Voluntary Separation Program Introduction
The Governor signed an Executive Order authorizing a Voluntary Separation Program (VSP) effective July 10, 2025. The VSP has been established to address reductions in the FY26 budget passed by the Maryland General Assembly that necessitate a reduction in State salary and benefit expenses and positions. This program is designed to help the State control costs and operate within its budget.
The VSP offers Eligible Employees who voluntarily choose to separate from State employment severance pay and severance benefits. The VSP is open to eligible employees of all grade levels - details on eligibility requirements are below. Applications are due no later than 11:59pm EST on August 4th, 2025. Participation is completely voluntary and management may not pressure, direct, or require any employee to apply for the VSP.
The information provided on this page is intended to help eligible employees understand their options and make an informed decision whether or not to apply. Application to the program does not guarantee acceptance. It is up to the agency and ultimately the Secretary of Budget and Management to approve or deny an employee’s application. Only employees whose applications are approved by the Secretary of Budget and Management will be permitted to participate in the Program. VSP decisions are final and not subject to an appeal.
Timeline
- July 10, 2025 - Voluntary Separation Program (VSP) launches
- August 4, 2025 - Employee deadline to apply for VSP
- August 18, 2025 - Deadline for employees to rescind a VSP application
- September 16, 2025 - Employees notified of VSP application decision (approve or deny)
- September 30, 2025 - Last day of employment for employees accepted into the VSP
- March 31, 2026 - Last day of health benefits coverage under the VSP
Eligibility
An employee is eligible to participate in the VSP if all of the following requirements are met:
- actively employed in a full-time permanent position in the Executive Branch of the State (you are considered actively employed if you are actively at work, on paid leave, on unpaid leave of absence under FMLA, or on military leave);
- not in a classification or agency that has been designated as excluded from the VSP; and
- have at least twenty-four (24) months of current, continuous State service in a permanent position with an Executive Branch agency (required months of service must be achieved by August 4, 2025). Note: if you are an employee that underwent a contractual conversion as part of your continuous service, your contractual service time will apply for eligibility requirements.
An employee is ineligible to participate in the VSP if the employee:
- ceases to be eligible under the requirements of the program;
- submits a resignation prior to July 10, 2025. Rescinding a resignation will not resolve ineligibility for the VSP.;
- has a pending application for service or disability retirement, which has been approved or is under consideration by the State Retirement Agency (SRA). Rescinding a retirement application or declining retirement will not resolve ineligibility for the VSP.;
- is terminated or received notice of termination prior to September 30, 2025;
- accepts another position with the State between the period July 10, 2025, and September 30, 2025; or
- leaves State employment before VSP Separation date (September 30th, 2025).
If the VSP is canceled, rescinded, or otherwise terminated, an employee’s eligibility to participate in the program will be terminated.
Severance Package
- Employees approved to participate in the VSP will receive:
- One lump sum of $20,000 and an additional $300 for each year of State Service (partial years of service will be rounded up to the next year), subject to taxes and any other required deductions.
- Six (6) months of state paid health benefits (including health, prescription drug, dental, and life insurance benefits) - through March 31, 2026.
- If you have any questions about your employee health benefits please contact the Employee Benefits Division at 410-767-4775 or by email at ebd.mail@maryland.gov or visit their website: Employee Benefits Division.
- Also see the VSP Exiting Employee Information sheet at this link for further details.
- COBRA coverage eligibility for up to eighteen (18) months after the conclusion of State paid benefits.
- Payment for unused compensatory time and unused annual leave.
- Please consult your agency’s payroll representative for assistance in calculating your estimated final leave payment. The Central Payroll Bureau’s Net Pay Calculator may also be helpful.
- Any other benefits to which the employee is entitled to under applicable law.
VSP Application Procedure
To apply for the VSP, please submit a VSP Application Attestation and Agreement in SPS/Workday. You'll find a link to the application on your SPS/Workday Home page. Applications submitted outside of SPS/Workday will not be accepted. You can find a step by step guide
here on how to apply.
A VSP Application must be submitted no later than 11:59 p.m. EST on August 4, 2025 to be considered.
If you are an employee within the State Personnel Management System, the system (i.e., SPS/Workday) will not allow you to apply if you are not eligible because you are in an ineligible classification or you are employed by a non-participating agency. Individuals who are ineligible because of other criteria (e.g. a pending retirement application) will still be allowed to apply and their eligibility will be determined subsequently, outside of the SPS/Workday application process.
Employees of the Transportation Service Human Resources System (i.e., MDOT employees) will be allowed to apply in SPS/Workday regardless of their eligibility. Their eligibility to participate in the VSP will be determined subsequently, outside of the SPS/Workday application process.
If you are found ineligible, you may contact your agency HR office to find out more about why you are not eligible.
Rescinding a VSP Application
You may rescind your VSP Application by 11:59 p.m. EST on August 18, 2025. To rescind your VSP Application, you must send an email to vsp.administrator@maryland.gov. You will receive a confirmation email within two business days of notice of your recission.
If you do not rescind your VSP Application by 11:59 p.m. EST on August 18, 2025, and you are accepted into the VSP, then your employment with the State will terminate as of September 30, 2025. Your separation under these circumstances is not subject to appeal.
Restriction on Return to State Service
Employees who participate in this Program may not return to State service in any capacity for a period of eighteen (18) months from September 30, 2025 (date of separation under the VSP). This employment prohibition includes any work as a State/regular employee, temporary employee, independent contractor, or consultant with any State entity.
If a Participant is reemployed in any capacity with the State during this period, the Participant shall reimburse the State for the full amount of severance pay and the full cost of severance benefits before the Participant’s first day of reemployment.
Retirement Considerations
You do not need to be eligible for retirement to participate in the program, but if you are considering applying for the VSP and you are retirement eligible, please read this section closely.
When considering participation in this Program, an employee should review their retirement eligibility and benefit allowance carefully to assess whether this Program is beneficial. The following links may be helpful:
Additional resources for your retirement planning include:
If you have any questions regarding retirement, your eligibility, or any other retirement matter please contact the SRA at 1-800-492-5909, 410-625-5555 or sra@sra.state.md.us.
In addition, if employees have questions regarding the process for, or VSP’s impact on, Supplemental Retirement Plans, please contact MSRP at membersrvs.msrp@maryland.gov, 1-800-543-5605, or 410-767-8740. If you reach out by phone, please ask to speak with a Member Services Education Specialist.
Employee Information Sessions
The State will be hosting regular information sessions for employees to share information on the VSP program and its implications as well as answer employee questions. Each session will provide an overview of the program, eligibility, incentive package, application process, and retirement implications. There will be opportunity for Q&A from employees during each session.
Events will be held on the following dates and times:
Information sessions will be limited to the first 1000 participants to join the meeting. Please register for only one meeting to ensure all employees have access to a session. Register using your official State of Maryland email address.
To sign up to join one of these events, please click one of the links above. Registration will close at 4:00 PM the day before each event.
Questions?
For more information on the VSP, please review the
Frequently Asked Questions. These FAQs will be updated as new questions arise – if you don’t initially see an answer to your question in the FAQ, please check back periodically.
If you are not able to attend an employee information session or have any questions about the VSP program, please contact us at vsp.administrator@maryland.gov. We regularly monitor this inbox and seek to answer questions as rapidly as possible. MDOT employees are encouraged to contact Kristen Groves at kgroves1@mdot.maryland.gov.
