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The Office of Personnel Management is proposing to modify the regulations for reduction in force (RIF) to amend the retention factors to prioritize performance over length of service when determining which employees will be retained in a RIF and streamline the RIF process.

Statement of Need:

The proposed changes are needed because current reduction in force rules are outdated and no longer address the needs of agencies in the twenty first century.  The current rules have become cumbersome and inefficient.  The proposed changes offer a more streamlined RIF structure that emphasizes performance over other factors in the downsizing process.  These changes promote the general principle that employees should be retained on the basis of merit, which will assist Federal agencies in retaining their best performing employees when conducting RIF actions.  The rulemaking would also allow agencies to undertake more strategic downsizing efforts with respect to competitive areas and would provide more flexibility in moving functions internally without also reassigning employees, and in furloughing employees.

Anticipated Costs and Benefits:

OPM anticipates this rulemaking will result in a more streamlined and efficient reduction in force process. OPM expects this rulemaking will result in cost savings for an agency running a reduction in force under part 351. The modernized rules will be less cumbersome and more flexible than current rules in their application.  Agencies will benefit by having an increased ability to retain their better-performing employees in a RIF, which will help agencies more effectively and efficiently meet their mission-critical responsibilities in the aftermath of a RIF and provide a higher level of service to the public than would otherwise be the case.