Already facing a 50-year staffing low as the number of Social Security beneficiaries continuing to rise, the Social Security Administration is seeking to reduce its workforce.

SSA will offer employees voluntary separation incentives and early retirement options as part of a major reorganization.

“Through these massive reorganizations, offices that perform functions not mandated by statute may be prioritized for reduction-in-force actions that could include abolishment of organizations and positions, directed reassignments and reductions in staffing,” SSA stated in a Feb. 27 release. “The agency may reassign employees from non-mission critical positions to mission critical direct service positions (e.g., field offices, teleservice centers, processing centers). Reassignments may be involuntary and may require retraining for new workloads.”

SSA says its looking to shed about 7,000 workers. The latest data from last March says SSA had 56,645 employees, up slightly from 2023 and down from 66,967 in 2010.

Source: President Biden’s 2025 budget request.

SSA says employees who want to take the early retirement can do so between March 1 and Dec. 31 and must leave by the end of calendar year 2025.

“Employees not eligible now or who wish to retire later in the year under early out may do so, but may be subject to restructuring activities,” SSA said. “Employees who are not yet eligible for voluntary early retirement, but who would like to apply later in the calendar year should alert management of their intent to do so and work with their servicing benefits specialists to process their cases as their dates become due.”

Employees qualify for early retirement if:

• They have been in the government for at least 20 years of creditable service and be at least 50 years of age
• They have been in the government for at least 25 years of creditable service at any age (this must include 5 years of civilian service).
• They are serving under a non-time-limited appointment.
• They have been continuously on SSA’s rolls at least 30 days prior to Jan.17.
• They are not in receipt of an involuntary separation decision for misconduct or unsatisfactory performance.

At the same time, SSA is offering all employees, including those who retire early, voluntary separation incentive payments (VSIP) starting March 14. This option is not available for anyone who took part in the Deferred Resignation Program.

“Employees must opt in by March 14 and separate from the agency no later than April 19. Employees may be placed on administrative leave through April 19,” SSA stated. “Employees must complete the VSIP sign up as soon as possible, but no later than March 14 at Noon EST. Please let your manager know immediately if you sign up for VSIP. Completing the form does not guarantee VSIP.”

SSA is offering separation payments ranging from $15,000 to $25,000.

• Up to GS 8 $15,000
• GS 9–12 $20,000
• GS 13 and up $25,000

SSA says certain employees are not eligible for VSIP payments, including reemployed annuitants, anyone who has a disability such that the individual is or would be eligible for disability retirement or anyone who received or is slated to receive a recruitment or relocation incentive in the last 24 months.

The agency says if it can’t get down to about 50,000 employees through these tools, a reduction-in-force (RIF) is possible. It has asked the Office of Personnel Management for approval.

Five other offers since 2012

The last time SSA offered voluntary early retirements and VSIPs was in 2021. At that time about 175 employees, or slightly more than 2% of those eligible, accepted the offer.

SSA has offered early outs several times in recent years. The agency usually announces an early-out opportunity once a year. SSA offered early retirements in 2012, 2014, 2017 and 2019. In the past, anywhere from 3-to-4 % of those eligible took the early retirement offer.

These new efforts would wipe out any workforce gains made over the last four years. SSA had planned to hire almost 4,000 new employees in fiscal 2025 as outlined in former President Joe Biden’s 2025 budget request.

Former SSA Commissioner Martin O’Malley told House lawmakers last year that as a result of the staffing problems, customer service has worsened. There are longer wait times on phone lines and longer delays in receiving decisions on disability applications and appeals.

Right now, SSA employees “are understaffed, and they are overwhelmed,” O’Malley said. “Not surprisingly, when somebody’s been on hold for an hour, they come off that call hot. We right now have an attrition rate of about 24% in our teleservice centers.”

SSA eliminates 3 offices

The restructuring and rebalancing comes after years of trying to improve SSA’s workforce. In 2024, the Federal Employee Viewpoint Survey (FEVS) showed SSA’s employee engagement, satisfaction and agency leadership are all trending positively. The agency increased its engagement index score from 65% positive responses in 2023, to 68% positive results in 2024.

In addition to the workforce restructuring, SSA is reorganizing its offices.

“SSA has operated with a regional structure consisting of 10 offices, which is no longer sustainable. The agency will reduce the regional structure in all agency components down to four regions,” the agency stated. “The organizational structure at headquarters also is outdated and inefficient. SSA will now have seven deputy commissioner level organizations.”

The reorganization will “prioritize customer service by streamlining redundant layers of management, reducing non-mission critical work and potential reassignment of employees to customer service positions. Also supporting this priority is looking for efficiencies and other opportunities to reduce costs across all spending categories, including IT and contractor spending.”

Additionally last week, SSA said its closing down the Office of Analytics, Review and Oversight (OARO) and moving those functions into other offices. It’s also getting rid of the Office of Transformation and the Office of Civil Rights and Equal Opportunity, altogether, putting those employees on paid administrative leave.

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Vicky