Following is an overview of standard Reduction in Force (RIF) procedures in the federal government, including how employees are affected and what options are available. (Note: While standard workforce rules and procedures are being challenged aggressively in the new Administration, it remains in your interest to know what’s on the books.)
What is a RIF?
When a federal agency reduces jobs due to reorganization, budget cuts, or lack of work, it follows formal RIF procedures set by the Office of Personnel Management (OPM). Employees are retained or released based on:
- Tenure (permanent vs. temporary appointment)
- Veterans’ preference
- Length of service
- Performance ratings
A RIF also includes furloughs of more than 30 calendar days or 22 non-consecutive workdays.
How RIFs Are Organized
- Competitive Area: Defines the geographical and organizational limits where employees compete for retention.
- Competitive Level: Groups employees with similar job grades, series, and qualifications.
- Retention Register: Ranks employees based on tenure, veterans’ preference, service length, and performance ratings. Employees are released in inverse order of their retention standing.
Rights to Other Positions (Bumping & Retreating)
- Bumping: A released employee may take the position of another with a lower tenure group.
- Retreating: A released employee may reclaim a position they previously held.
- Employees with “Minimally Successful” or lower ratings may not have placement rights.
Pay, Benefits, and Insurance
- Severance Pay: Available for permanent employees with at least one year of service who are separated involuntarily.
- Health & Life Insurance: Continues for 31 days free of charge.
- FEHB can be extended for 18 months (employee pays full premium + admin fee).
- FEGLI can be converted to an individual plan.
- Retirement: Employees may qualify for early retirement or defer annuities based on their service.
Appeals & Career Transition Assistance
- Employees can appeal a RIF decision to the Merit Systems Protection Board (MSPB) within 30 days if regulations were not properly followed.
- Career Transition Assistance Programs (CTAP & RPL) help displaced employees find new jobs.
- The Defense Department offers additional support through its Priority Placement Program (PPP).
Unemployment Compensation
Employees affected by RIFs may qualify for unemployment benefits under their state’s Unemployment Compensation for Federal Employees (UCFE) program.
A Benefit Analysis is the logical next step so you can make the best possible decision. Click on our Get Your Benefits Review. That way, you’ll have everything laid out clearly so you can make a fully informed decision
• What your benefits look like today
• What they’ll look like at retirement
• When you’ll be eligible for different benefits
• How this Deferred Resignation Offer might impact you
Reach out to John for a complete Benefit analysis to “know before you go.
Disclaimer: This information is for general guidance only and does not constitute financial or legal advice. Consult with a qualified professional for personalized advice tailored to your specific circumstances.