OPM has proposed rewriting federal Reduction in Force (RIF) rules to put recent performance ratings ahead of seniority and veterans’ preference when agencies decide who is retained during layoffs, according to FedSmith. The proposal would be a major shift for employees who have long relied on tenure and preference as key protections in a RIF.
- What’s changing: OPM’s proposed rule would prioritize employees’ most recent performance ratings as the primary driver of retention standing in a RIF, FedSmith reported.
- What’s reduced: The proposal would diminish the weight of seniority (length of service) and veterans’ preference in determining who is released first, according to FedSmith.
- Who could be most affected: Employees with weaker recent ratings could face higher separation risk even if they have more federal service time or veterans’ preference, based on FedSmith’s summary of the proposal.
- What to watch: The proposal is part of the federal rulemaking process, meaning employees should track public comment opportunities and any changes in the final rule before it takes effect, FedSmith noted.
- Why it matters now: RIF rules shape not only separations but also bump-and-retreat rights and assignment decisions inside competitive areas—so changes to the weighting factors can alter outcomes across an organization.
Brief context
Under current RIF procedures, agencies build retention registers using a combination of factors that traditionally include tenure group, veterans’ preference, length of service, and performance. FedSmith reported that OPM’s proposal would elevate recent performance to the top of that hierarchy, aiming to retain higher-rated employees even if they have less service time or no preference eligibility.
For employees, the practical impact is that your latest rating of record could become the deciding factor in a RIF outcome. That raises the stakes for documenting accomplishments, ensuring performance plans are accurate, and addressing rating disputes quickly through internal processes when available.
If you’re trying to understand the financial side of a potential separation—especially the value of a lump-sum annual leave payment—use an annual leave payout calculator to estimate what you might receive based on your leave balance and pay rate.
Source: FedSmith