RAAUZYUW RUENAAA0314 1631034-UUUU--RUCRNAD. ZNR UUUUU ZUI RUEWMCF8399 1631122 R 121034Z JUN 06 ZYB MIN ZYW PSN 934806K30 FM CNO WASHINGTON DC//N1// TO NAVADMIN BT UNCLAS //N05711// NAVADMIN 169/06 MSGID/GENADMIN/CNO WASHINGTON DC/N1/JUN// SUBJ/FY06 VOLUNTARY SEPARATION PAY (VSP) PROGRAM IMPLEMENTATION// REF/A/DOC/P.L. 109-163, SEC. 643/06JAN2006// REF/B/DOC/PDUSD(PR) MEMO/26MAY2006// REF/C/DOC/ASN(MRA) MEMO/02JUN2006// NARR/REF A IS SECTION 643 OF THE FISCAL YEAR 2006 NATIONAL DEFENSE AUTHORIZATION ACT (FY06 NDAA). REF B IS THE DOD POLICY MEMORANDUM IMPLEMENTING VSP. REF C IS ASN (M&RA) MEMORANDUM DIRECTING IMPLEMENTATION OF A NAVY VSP PROGRAM.// GENTEXT/REMARKS/1. THIS NAVADMIN ANNOUNCES THE ESTABLISHMENT OF A VOLUNTARY SEPARATION PAY (VSP) PROGRAM FOR THE NAVY. AN INTEGRAL PART OF NAVY'S FORCE SHAPING EXECUTION STRATEGY, VSP IS A FINANCIAL INCENTIVE TOOL DESIGNED FOR OFFICERS WITH AT LEAST SIX AND NOT MORE THAN 12 YEARS OF ACTIVE SERVICE IN CERTAIN OVERMANNED COMMUNITIES/SKILLS TO VOLUNTARILY SEPARATE FROM ACTIVE DUTY. 2. THE OBJECTIVE OF THE VSP PROGRAM, ALONG WITH OTHER FORCE SHAPING INITIATIVES, IS TO HELP THE NAVY MEET END STRENGTH REQUIREMENTS AND ASSIST IN CORRECTING INVENTORY IMBALANCES IN PAY GRADE AND LENGTH OF SERVICE/SKILL MIX. OFFICERS WHO VOLUNTEER TO PARTICIPATE IN THE PROGRAM AND ACCEPT A VSP PAYMENT UPON SEPARATION MUST SEPARATE NO LATER THAN 30 SEP 06. SINCE VSP WILL BE USED TO MEET SPECIFIC PERSONNEL FORCE SHAPING OBJECTIVES, IT IS NOT EXPECTED TO BE OFFERED EVERY FISCAL YEAR. PER REFS A THROUGH C, AUTHORITY TO CARRY OUT A VSP PROGRAM EXPIRES 21 DEC 2008. 3. PROGRAM OVERVIEW. THE VSP PROGRAM WILL EMPLOY A MARKET BASED AUCTION STYLE APPROACH, ALLOWING OFFICERS TO SET THE "PRICE" FOR SEPARATING FROM ACTIVE DUTY. THIS MEANS THAT NAVY CAN MEET OFFICER EXPECTATIONS OF A FAIR, OBJECTIVE INCENTIVE TO SHAPE THE FORCE. INITIALLY, VSP WILL ONLY BE OPEN TO OFFICERS. OFFICERS IDENTIFIED AS ELIGIBLE FOR THE PROGRAM WILL BE OFFERED THE OPPORTUNITY TO PARTICIPATE IN THE AUCTION AND WILL BE ADVISED OF THE MAXIMUM BID AMOUNT PER COMMUNITY WITHIN STATUTORY LIMITS ESTABLISHED IN REF A. THE ACTUAL NUMBER OF OFFICERS APPROVED FOR SEPARATION WITH VSP (THE TARGET POPULATION) WILL BE SOME NUMBER LESS THAN THE IDENTIFIED ELIGIBLE PARTICIPANTS IN ORDER TO ALLOW FOR "COMPETITION AMONGST BIDDERS IN THE MARKET PLACE". VSP APPROVALS WILL BE BASED ON WHETHER PARTICIPANTS MEET ELIGIBILITY CRITERIA, AND WHETHER THEIR BIDS ARE WITHIN THE COMMUNITY-SPECIFIC TARGET POPULATION (SEE PARA 7 BELOW FOR DETAILS REGARDING THE VSP AUCTION METHODOLOGY). NAVY WILL ESTABLISH MAXIMUM BID AMOUNTS WITHIN THE STATUTORY LIMITS ESTABLISHED BY REF A BY COMMUNITY. 4. VSP IS A SEPARATION PAY AND, AS SUCH, CANNOT BE CONTRIBUTED TO THE THRIFT SAVINGS PLAN (TSP). 5. ELIGIBILITY. TO BE ELIGIBLE TO PARTICIPATE IN THE VSP PROGRAM AN OFFICER MUST MEET ALL OF THE GENERAL ELIGIBILITY CRITERIA LISTED BELOW. ADDITIONALLY, THE OFFICER MUST MEET SPECIFIC CRITERIA ESTABLISHED FOR HIS/HER COMMUNITY. GENERAL ELIGIBILITY CRITERIA ARE BASED ON STATUTORY REQUIREMENTS OF REF A AND OVERARCHING NAVY IMPLEMENTATION POLICIES NECESSARY TO MEET THE OBJECTIVES OF THE VSP PROGRAM. COMMUNITY-SPECIFIC ELIGIBILITY IS ALSO BASED ON VSP PROGRAM OBJECTIVES, AND IN GENERAL, REPRESENTS AN OBJECTIVE SET OF CRITERIA THAT CAN BE USED TO IDENTIFY OFFICERS WHOSE LONG-TERM CAREER POTENTIAL IS NOT DEEMED TO BE AS COMPETITIVE AS THAT OF THEIR PEERS. EXAMPLES, WHICH ARE NOT ALL-INCLUSIVE, OF COMMUNITY-SPECIFIC CRITERIA ARE: A FIRST-TIME FAILURE OF SELECTION FOR PROMOTION TO THE NEXT HIGHER GRADE; FAILURE TO ACHIEVE A CAREER MILESTONE SUCH AS SCREENING FOR DEPARTMENT HEAD AFLOAT; OR AN AVIATION OFFICER SERVING IN A NON-FLYING DESIGNATOR. A. GENERAL ELIGIBILITY CRITERIA. OFFICERS MUST MEET ALL OF THE FOLLOWING GENERAL CRITERIA TO BE ELIGIBLE FOR PARTICIPATION IN THE FY06 VSP PROGRAM: (1) MUST BE AN OFFICER WHO HAS COMPLETED MORE THAN SIX, BUT NOT MORE THAN 12 YEARS OF ACTIVE DUTY SERVICE PRIOR TO THE DATE OF SEPARATION; (2) SERVED AT LEAST 5 YEARS OF CONTINUOUS ACTIVE DUTY IMMEDIATELY PRECEDING THE DATE OF THE MEMBER'S SEPARATION FROM ACTIVE DUTY; (3) SERVING ON THE ACTIVE DUTY LIST (ADL) IN A GRADE ABOVE WARRANT OFFICER; AND (4) SERVING IN AN OFFICER COMMUNITY (DESIGNATOR) THAT HAS BEEN TARGETED FOR VSP IN NAVY'S FORCE SHAPING EXECUTION STRATEGY PLAN. FOR FY06 TARGETED DESIGNATORS INCLUDE: 111X, 112X, 130X, 131X, 132X, 120X, 152X, 161X, 163X, 180X, 310X, 410X, AND 510X. B. COMMUNITY SPECIFIC ELIGIBILITY CRITERIA. ELIGIBILITY CRITERIA SPECIFIC TO EACH OF THE OFFICER COMMUNITIES/DESIGNATORS LISTED ABOVE CAN BE FOUND AT THE NPC WEBSITE HTTP:/WWW.NPC.NAVY.MIL/CHANNELS OR BY CONTACTING THE APPROPRIATE COMMUNITY MANAGER. COMMUNITY MANAGER CONTACT INFORMATION CAN BE FOUND AT THE NPC WEBSITE OR BY LOOKING IN THE MOST RECENT ISSUE OF LINK-PERSPECTIVE MAGAZINE. C. ELIGIBILITY OF CERTAIN RESERVE COMPONENT OFFICERS ON THE ADL. CERTAIN OFFICERS ON THE ADL WHO HAVE NOT BEEN AUGMENTED INTO THE REGULAR COMPONENT MAY BE ELIGIBLE TO PARTICIPATE IN THE VSP PROGRAM IF THEY MEET THE GENERAL ELIGIBILITY CRITERIA LISTED IN PARA 4A ABOVE. IF INCLUDED IN THIS CATEGORY, AN OFFICER WILL BE SPECIFICALLY NOTIFIED BY NPC. WHILE PARTICIPATION IN THE VSP PROGRAM IS VOLUNTARY, OFFICERS IN THIS CATEGORY ARE ADVISED THAT IF THEY CHOOSE NOT TO PARTICIPATE, THEY MAY BE LIABLE FOR INVOLUNTARY SEPARATION UNDER TITLE 10, UNITED STATES CODE (USC), SECTION 12313. 6. INELIGIBILITY. THE FOLLOWING OFFICERS ARE NOT ELIGIBLE TO PARTICIPATE IN THE VSP PROGRAM: A. AN OFFICER WHO IS BEING PROCESSED FOR DISCHARGE, OR HAS BEEN DISCHARGED, WITH DISABILITY SEVERANCE PAY UNDER SECTION 1212 OF TITLE 10, USC. B. AN OFFICER WHO IS BEING PROCESSED FOR TRANSFER, OR HAS BEEN TRANSFERRED, TO THE TEMPORARY DISABILITY RETIRED LIST UNDER SECTION 1202 OR 1205 OF TITLE 10, USC. C. AN OFFICER WHO IS BEING EVALUATED FOR DISABILITY RETIREMENT UNDER CHAPTER 61 OF TITLE 10, USC. D. AN OFFICER WHO IS SUBJECT TO PENDING DISCIPLINARY ACTION OR WHO IS SUBJECT TO ADMINISTRATIVE SEPARATION OR MANDATORY DISCHARGE UNDER ANY OTHER PROVISION OF LAW OR REGULATION. E. AN OFFICER SERVING ON THE RESERVE ACTIVE STATUS LIST (RASL) AS A FULL TIME SUPPORT (FTS) OFFICER (DESIGNATOR XXX7). 7. NOTIFICATION AND PARTICIPATION PROCEDURES. A. PERS-48 WILL CONTACT THE COMMANDING OFFICER (CO) OF OFFICERS ELIGIBLE FOR PARTICIPATION IN THE VSP PROGRAM BY EMAIL. THE EMAIL WILL CONTAIN TWO LETTERS. ONE IS A LETTER OF NOTIFICATION OF ELIGIBILITY. THE OTHER IS A TEMPLATE FOR THE OFFICER TO FILL OUT WITH HIS/HER ELECTION AND ELECTRONICALLY RETURN TO PERS-48 VIA THEIR CO. NOTIFICATION MESSAGES WILL BE SENT TO INDIVIDUALS IN A COMMUNITY'S ELIGIBLE POOL OF OFFICERS, AND WILL ESTABLISH THE MAXIMUM BID (I.E., MAXIMUM AMOUNT OF VSP BEING OFFERED), AS WELL AS THE NUMBER OF PERSONNEL WHO WILL BE OFFERED THE PAYMENT FOR EACH SPECIFIC COMMUNITY. B. THE CO'S ARE REQUIRED TO IMMEDIATELY NOTIFY ELIGIBLE MEMBERS WITHIN THEIR COMMANDS AND SEND AN ELECTRONIC ACKNOWLEDGEMENT OF ELIGIBLE MEMBER NOTIFICATION TO PERS-48. CO'S MAY, AS THEY DEEM APPROPRIATE, PROVIDE A FAVORABLE OR NEGATIVE ENDORSEMENT WRT OFFICERS WHO CHOOSE TO PARTICIPATE IN THE VSP PROGRAM. A NEGATIVE ENDORSEMENT IS NOT A GUARANTEE TO REMOVE THE OFFICER FROM ELIGIBILITY, OR CONSIDERATION FOR APPROVAL OF A VSP SEPARATION. THE CO'S ENDORSEMENT WILL BE GIVEN ALL DUE CONSIDERATION AS PART OF THE DECISION-MAKING PROCESS. ULTIMATELY, APPROVALS OR DISAPPROVALS FOR VSP WILL BE BASED UPON THE BEST INTERESTS OF THE NAVY. C. ELIGIBLE OFFICERS WILL HAVE 14 DAYS FROM RECEIPT OF CO'S NOTIFICATION TO SUBMIT A POSITIVE OR NEGATIVE VSP RESPONSE/ELECTION. OFFICERS WHO ELECT TO PARTICIPATE IN THE PROGRAM (I.E., SUBMIT A POSITIVE ELECTION) AND BE CONSIDERED FOR VSP, MUST SUBMIT A COMPETITIVE BID WITH THEIR REPLY. FAILURE TO SUBMIT A BID WILL AUTOMATICALLY RESULT IN A DISAPPROVAL OF THE OFFICER'S ELECTION TO PARTICIPATE IN THE PROGRAM. 8. SELECTION AND VSP AUCTION METHODOLOGY. COMMUNITY MANAGERS WILL REVIEW ALL POSITIVE VSP ELECTIONS TO ENSURE OFFICERS MEET ESTABLISHED ELIGIBILITY CRITERIA. THESE POSITIVE ELECTIONS WILL THEN BE RANKED FROM LOWEST TO HIGHEST COMPETITIVE BID UNTIL THE TARGET POPULATION FOR THE COMMUNITY IS REACHED. THIS TARGET POPULATION WILL CONSTITUTE THE "SUCCESSFUL BIDDERS." USING WHAT IS KNOWN AS A "UNIFORM PAYMENT AUCTION METHODOLOGY", ALL SUCCESSFUL BIDDERS OF EACH COMMUNITY WILL RECEIVE THE SAME VSP PAYMENT AS DETERMINED BY THE HIGHEST ACCEPTED BID. FOR EXAMPLE, IF 300 PEOPLE ARE SENT NOTIFICATION MESSAGES (ESTABLISHING THAT 100 PERSONNEL WILL BE OFFERED A SEPARATION PAYMENT) AND IF 275 PEOPLE ELECT TO PARTICIPATE BY SUBMITTING A BID, AND THE LOWEST COMPETITIVE BID IS $1,000 AND THE 100TH LOWEST COMPETITIVE BID SUBMITTED IS $30,000, THEN THE 100 SUCCESSFUL BIDS (I.E., THE 100 INDIVIDUALS WHO BID $30,000 OR LESS) WILL EACH RECEIVE THE $30,000 BID. 9. SEPARATION. A. PER REF C, VSP APPROVAL AUTHORITY RESTS WITH THE ASSISTANT SECRETARY OF THE NAVY FOR MANPOWER AND RESERVE AFFAIRS (ASN(M&RA)). THEREFORE, A LISTING OF SUCCESSFUL BIDDERS, FOR EACH COMMUNITY WILL BE SUBMITTED TO ASN (M&RA) FOR APPROVAL. B. PERS-48 WILL NOTIFY ALL SUCCESSFUL BID APPLICANTS OF APPROVAL AND AMOUNT OF SEPARATION PAY. C. OFFICERS WILL HAVE UNTIL 30 SEPTEMBER 2006 TO SEPARATE. A POSITIVE VSP ELECTION, AND SUBMISSION OF A BID, CONSTITUTES AN AGREEMENT ON THE PART OF THE PARTICIPATING OFFICER TO AGREE TO SEPARATE FROM ACTIVE NAVAL SERVICE NLT 30 SEP 06. D. MEMBERS WILL RECEIVE VSP IN A LUMP SUM UPON SEPARATION. E. IF AN OFFICER HAS ACCEPTED VSP AND IS SUBSEQUENTLY SELECTED FOR PROMOTION TO THE NEXT HIGHER PAY GRADE, HE/SHE WILL BE GIVEN THE OPPORTUNITY TO WITHDRAW FROM CONSIDERATION OF VSP AND CONTINUE ON ACTIVE DUTY. F. IF AN OFFICER HAS ACCEPTED VSP AND IS SUBSEQUENTLY SELECTED FOR LATERAL TRANSFER/REDESIGNATION TO THE REGULAR COMPONENT, HE/SHE WILL BE GIVEN THE OPPORTUNITY TO WITHDRAW FROM CONSIDERATION OF VSP AND CONTINUE ON ACTIVE DUTY. 10. RECOUPMENT. IN GENERAL, THE FOLLOWING SITUATIONS MAY REQUIRE RECOUPMENT OF VSP (FOR SPECIFIC CRITERIA REFER TO REF A, AND REF B): A. VOLUNTARY RETURN TO ACTIVE DUTY FOR GREATER THAN 180 DAYS. B. QUALIFICATION FOR, AND RECEIPT OF, RETIRED OR RETAINER PAY. C. RECEIPT OF DISABILITY COMPENSATION. 11. OFFICERS WHO DO NOT MEET THE VSP ELIGIBILITY CRITERIA CONTAINED IN THIS NAVADMIN, BUT WHO BELIEVE THEY SHOULD BE ALLOWED TO PARTICIPATE IN THE VSP PROGRAM MUST CONTACT THEIR COMMUNITY MANAGER TO DETERMINE IF THEIR APPLICATION WILL BE ACCEPTED FOR CONSIDERATION. VSP APPLICATIONS FROM SUCH OFFICERS WHO HAVE NOT RECEIVED PRIOR PERMISSION TO APPLY WILL BE RETURNED WITHOUT ACTION. 12. POC: OFFICERS ARE ADVISED TO CONTACT THEIR DETAILER OR COMMUNITY MANAGER FOR ANY QUESTIONS CONCERNING THE VOLUNTARY SEPARATION PAY PROGRAM. 13. RELEASED BY VADM J. C. HARVEY, JR., N1.// BT #0314 NNNN