Voluntary Separation Program

Attention State Employees: 

VSP APPLICATION DEADLINE HAS PASSED

Key Dates to Remember

March 17, 2015 ​Tuesday New deadline for employee submission of application/release to OPSB
March 27, 2015 ​Friday Deadline for employee to revoke VSP Application
April 24, 2015 ​Friday Deadline for agency HR offices to notify employees of acceptance into VSP
April 28, 2015 ​Tuesday Last day of work for VSP participating employees

The deadline to apply to participate in the Voluntary Separation Program (VSP) has been extended to Tuesday, March 17, 2015.  The VSP permits eligible employees who are selected to participate to voluntarily separate from State service effective Tuesday, April 28, 2015.  The VSP is open to employees at all grade levels who are in certain classifications in participating agencies.  If you are interested in learning more about the VSP, please take the time to carefully review the information found on this site. Applications are due by 5:00 p.m. Eastern Standard Time on Tuesday, March 17, 2015, and may be mailed or hand-delivered, but must be received by this extended deadline. Postmarks are not acceptable.

Participants will receive a lump sum severance payment of $15,000 and an additional $200 for each year of State service, as well as three months of State-paid health benefits, in addition to any other benefits upon separation to which the participant otherwise is entitled under applicable law. Please note that the three months of no cost coverage will be the continuation of the medical, prescription and dental coverage in which the Participant was enrolled on April 28, 2015 and will be processed automatically.  Additionally, the Employee Benefits Division will directly bill participants for other benefits that they are enrolled in (i.e. AD&D, Life Insurance).

As a service to its members, the Maryland State Retirement Agency (SRA) sent an Unaudited Projection of Benefit Allowances to any member who is currently eligible for an early or normal service retirement.  Like the annual Personal Statement of Benefits, these projections were not released to anyone but the individual employee.  Neither DBM nor the employing agencies were provided any information regarding an employee’s retirement eligibility.  The SRA provided the projections as a courtesy to members based on the short deadline to apply for the VSP.

Keep in mind that you do not have to be eligible to retire to participate in the program, but if you are considering applying for the VSP and you are eligible to retire, please:

Complete the Retiree health benefits form ​and submit it with your VSP Application. If your VSP Application is approved, the VSP Administrator will forward your Retiree enrollment form to the Employee Benefits Division (EBD). EBD will hold this form and process it for the August 1, 2015 effective date, which is the date immediately following your three months of free benefits coverage provided through the VSP; and

Fill out the specially designated Retirement Application for Service Retirement that is available on this website and take it to your agency Retirement Coordinator.  Your Retirement Coordinator will submit your forms to the State Retirement Agency (SRA); your forms will be given expedited processing by the SRA.

Important Points to Remember

  • The VSP is completely voluntary
  • You do not have to apply if you decide it is not right for you
  • Applying does not entitle you to receive the severance pay or severance benefits; your Application is subject to approval
  • If you participate in the VSP, you cannot be re-employed with the State for a period of 18 months after you are separated
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VSP applications due March 13, 2015 

If VSP Not Accepted:

If you filed paperwork to retire, purchase service credit, or withdraw your pension contributions, and you no longer wish to do so because your application for participation in the VSP was denied, you must rescind your request in writing using Form to Rescind VSP Retirement Requests​  If you wish to do so, fill out this form and give it to your agency Retirement Coordinator as soon as you are advised that you will not be participating. Your agency Retirement Coordinator also will sign it and submit it on your behalf to the State Retirement Agency (SRA). You should not submit your request directly to the SRA. Ideally, your agency Retirement Coordinator will submit written requests to rescind on or before May 1, 2015 to ensure that there is sufficient time to cancel the processing of the original request.

VSP Details


Retirement Information


Questions?

If you have questions please
email them to vsp.administrator@maryland.gov ​​​

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Payment Dates

  • 5/6 - Last full paycheck including $15,000 lump sum and $200/yr
  • 5/20 or 6/3 - Annual Leave payout depending on your agency's processing schedule
  • 6/30 - First retirement payment for those retiring on 5/1 (retro to 5/1)

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