WASHINGTON (NNS) -- The Navy announced the Voluntary Separation Pay (VSP) program that provides individually identified officers with six to 12 years of service a chance to bid on the amount of money they would receive to separate from the Navy by Sept. 30, 2006.
"The focus is on maintaining quality leadership in our officer force through this program," said Vice Adm. John C. Harvey Jr. Chief of Naval Personnel. "We want to make effective use of VSP to reach our force-shaping goal."
VSP will be offered to officers in the ranks of O-3 and O-4 who are in over-manned career fields or communities. Each community manager will determine the number and mix of officers offered a chance to bid on VSP. These officers will be notified through their commanding officer that they have 14 days to decide if they wish to volunteer and what amount they will bid. They will also be informed of the maximum bid amount for their community and the eligible pool number.
The community mangers will then decide the VSP amount for their community and which officers will receive the pay. All officers who accept VSP will receive honorable discharges. The winning bid and selection of officers should be made in mid-July. Officers must separate by Sept. 30, 2006.
"The Navy has reduced end strength requirements steadily since 2003 using a controlled, measured approach to shape and balance the skill mix within the force," said Harvey. "As we go through this process, we find there still exists a small excess of officers in some communities and pay grades."
VSP is part of a carefully balanced process to maintain the long-term health and balance of the officer corps, said Harvey. Community managers expect the VSP program will identify about 200-300 officers for voluntary separation this fiscal year.
For more information on this program refer to NAVADMIN 169-06 available soon at www.npc.navy.mil.
For related news, visit the Chief of Naval Personnel Navy NewsStand page at www.news.navy.mil/local/cnp/.