OPM has proposed a major rewrite of federal Reduction in Force (RIF) regulations that would shift retention decisions away from seniority and toward employee performance, potentially changing who is protected—and who is most at risk—during agency downsizing and restructuring.
- What’s happening: The Office of Personnel Management (OPM) has issued a proposed rule to overhaul how agencies conduct RIFs, according to FedSmith.
- Core change: The proposal would increase the weight of performance in retention standing and reduce the role of seniority (service length) in determining who stays and who is separated.
- Why it matters: RIF rules govern layoffs, position abolishments, and other workforce reshaping actions when agencies must reduce staff. Retention order can determine outcomes for employees in the same competitive area and level.
- Who’s affected: Covered competitive service and certain excepted service employees subject to RIF procedures; impacts would be felt most in organizations planning reorganizations, budget-driven cuts, or mission changes.
- Status: The changes are not final; they would take effect only after OPM completes the rulemaking process. (FedSmith, March 5, 2026)
- What to watch: If finalized, agencies could place greater emphasis on recent ratings of record when ranking employees, which may increase the stakes of annual performance cycles and documentation.
Brief context
Under current RIF procedures, agencies generally establish retention standing using a mix of tenure group, veterans’ preference, length of service, and performance (via additional service credit tied to performance ratings). FedSmith reports OPM’s proposal would rebalance that formula—elevating performance as a deciding factor compared with time-in-service.
The proposal arrives as agencies across government continue to face pressure to reshape workforces, consolidate functions, and meet shifting mission demands. While RIFs are relatively infrequent compared with other separation tools, the rules matter because they set the default framework for large-scale layoffs and can drive employee outcomes even when agencies attempt to minimize involuntary separations.
For employees, the practical impact is straightforward: performance documentation may matter more than seniority if a RIF is triggered in your competitive area. That includes ensuring your position description aligns with your actual duties, confirming your most recent rating of record is accurate, and understanding how your organization defines competitive levels.
For additional background on RIF mechanics and common misconceptions, see FedBrief’s explainer: https://fedbrief.org/ (RIF policy analysis).
Source: FedSmith, “OPM Overhaul Federal RIF Process,” published March 5, 2026. https://www.fedsmith.com/2026/03/05/opm-overhaul-federal-rif-process/