The Governor signed an Executive Order authorizing a Voluntary Separation Program (VSP) effective July 10, 2025. The VSP offers Eligible Employees who voluntarily choose to separate from State employment severance pay and severance benefits.
The VSP Application is now closed and those who applied were notified if their applications were approved or rejected on September 16th. Notifications were sent to applicants’ e-mail address on file in Workday. Follow up notifications and/or reminders may be sent via automated Workday messages and emails from agency HR staff.
If you applied but did not receive an email notification with your application decision on September 16th, please email [email protected].
Important Message for VSP Accepted Employees
Your last day of employment with the State will be September 30, 2025.
If you are planning to retire October 1, 2025 and have not yet submitted retirement paperwork, please use the following adapted retirement form – Application for Disability or Service Retirement – AS SOON AS POSSIBLE.
If you are planning to retire October 1, 2025 and previously submitted a retirement application, please continue to coordinate all retirement-related matters through your Agency Retirement Coordinator.
As an employee approved to participate in the VSP, you 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) - i.e. through March 31, 2026.
- 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 per standard State policy. If you would like to roll your annual leave payout into MSRP, please visit https://msrp.maryland.gov/ for details on the process. In order to roll over a portion of your annual leave payout into MSRP, you will need to have a previously established MSRP account.
- Any other benefits to which the employee is entitled to under applicable law.
Payment schedule following separation
Your final paycheck and VSP incentive payments will be disbursed, less any taxes and other required deductions, on the following schedule:
- October 8 - Last working pay period check
- October 22 - Wage catch ups, VSP lump sum, and adjusted service pay out
- November 5 - Final leave payout, including applicable annual leave and compensatory leave.
- October 31 - First pension check for retirees (There may be a delay in receiving first pension checks until November 30; however, if so, that check will be retroactive to cover October’s pension check as well.)
Restrictions on Future State Employment
Please be aware that as a VSP participant, you are ineligible to seek or accept employment or other work with any State agency, unit, or entity for 18 months (from October 1, 2025, through March 31, 2027) in any branch of State Government. This includes employment in any capacity, such as an employee, temporary employee, independent contractor, consultant, or employee of a contractor. If you are reemployed during this period, you will be required to reimburse the State for the full amount of the severance payment and severance benefits that you received under this program.
Webinar for VSP Accepted Employees
The Maryland Department of Budget and Management (DBM), the Maryland State Retirement and Pension System (SRPS), and the Maryland State Employees Supplemental Retirement Plans (MSRP) will host a webinar for employees approved for participation in the VSP on Thursday, September 18, 2025 from 2:00 PM to 3:30 PM.
An invitation link to the webinar is included in each accepted employee’s VSP approval notification email. If you have further questions about this webinar for VSP accepted employees, please contact us at [email protected].
Important Information for VSP Applicants Whose Application was Denied
If you have already applied for a State retirement, and wish to rescind your retirement application and maintain your current State position, please contact your Agency Retirement Coordinator as soon as possible. It is imperative that you work with them to fill out and submit the Form to Rescind VSP Retirement Request as soon as possible and no later than October 24.
If you submitted an application for state retirement and do not rescind it, it will be processed as a normal state retirement outside the VSP process. If you are eligible for Retiree Health Benefits, please submit a 2025 Retiree Enrollment Form within 60 days.
As you continue your State service, you will not be treated any differently with respect to future terms and conditions of employment than any other similarly situated employee.
Additional Retirement Resources
If you have any questions regarding retirement, your retirement eligibility, or any other retirement matter please contact the SRA at 1-800-492-5909, 410-625-5555 or [email protected].
In addition, if employees have questions regarding the process for, or VSP’s impact on, Supplemental Retirement Plans, please contact MSRP at [email protected], 1-800-543-5605, or 410-767-8740. If you reach out by phone, please ask to speak with a Member Services Education Specialist.
Your mySRPS Account may help you estimate the amount of your retirement benefit.