How to Fill Out DD Form 2903-3
Follow these steps to complete your Voluntary Separation Incentive Payment Agreement accurately before your separation date.
Step 1 – Enter your personal information. Provide your full name, Social Security Number, position title, pay grade, and step in Section I of the form.
Step 2 – Review the VSIP buyout terms. Confirm the total VSIP amount and verify the two six-month payment installments listed in Section II. These payment amounts are set by your DoD component and cannot be negotiated after approval.
Step 3 – Read the repayment and reemployment conditions. The form states that you must repay the entire buyout if you accept any federal government position within five years, and that you cannot return to the DoD for one year. Review both restrictions carefully before you sign.
Step 4 – Confirm HR counseling. Your signature certifies that your Human Resources Office has counseled you on all terms. Do not sign this section until that counseling has occurred.
Step 5 – Get the authorized official's co-signature. A designated DoD official must sign and date Section III for the agreement to be binding. Return the completed form to your servicing HR office before your separation effective date.
Who Is Eligible to Use This Form?
This agreement is required for Department of Defense civilian employees who have been offered and accepted a Voluntary Separation Incentive Payment. If your DoD agency is conducting a reduction in force or workforce restructuring and is offering VSIP buyouts, you will complete this form before your departure is processed.
This form does not apply to uniformed military members, employees leaving for involuntary reasons, or individuals participating in a Voluntary Early Retirement Authority (VERA) without a cash incentive payment. Related forms you may need include DD Form 2656 for retirement payment data, DD Form 93 for emergency contact records, and the Separation Notice for state-level documentation requirements.
Frequently Asked Questions
What happens if I return to any federal job within five years? You must repay the full VSIP buyout amount to the federal government. The repayment obligation applies to any federal position, not only DoD roles.
How is the VSIP amount paid after I sign? The total is divided into two equal installments paid six months apart, beginning after your official separation date, as specified in Section II.
What is the difference between DD Form 2903-1 and DD Form 2903-3? DD Form 2903-1 is the election form you complete when applying for the buyout. DD Form 2903-3 is the binding payment agreement you sign once your application is approved and you are ready to finalize your separation.
