The Voluntary Separation Incentive Payment (VSIP), commonly known as a federal buyout, is a financial incentive offered to federal employees to encourage voluntary separation from federal service. This lump-sum payment, which can be up to $25,000, is typically used during periods of downsizing or restructuring to reduce the workforce without resorting to involuntary layoffs.​ https://www.federalpensionadvisors.com/post/voluntary-separation-incentive-payment