How a Federal Reduction in Force (RIF) Works: Rules and Rights
OPM rewrote the federal RIF rules in 2026. This explainer covers who competes, how retention scores are built, assignment rights, severance, early retirement and appeals.
A federal reduction in force (RIF) is the process an agency must use to release employees because of lack of work, a shortage of funds, reorganization or a similar reason, under Office of Personnel Management rules in 5 CFR part 351. For notices issued since September 2, 2026, employees are ranked mainly by performance ratings plus veterans’ preference points, get at least 60 days’ notice and appeal to OPM. Your specific RIF notice lists your standing and rights.
OPM published the revised rules on August 3, 2026 (91 FR 49178) and they took effect September 2, 2026. A RIF notice issued before that date is processed under the old rules, including the old appeal route. OPM’s reductions in force page carries the regulations, a RIF basics guide and FAQs.
When does an agency have to use RIF procedures?
An agency must follow part 351 when it releases a competing employee by separation, demotion, a furlough of more than 30 days, or a reassignment that requires displacing someone, and the reason is lack of work, shortage of funds, insufficient personnel ceiling, reorganization or someone’s reemployment rights.
- A furlough counts when it exceeds 30 consecutive calendar days, or 22 workdays spread over up to a year.
- An emergency shutdown furlough during a lapse in appropriations is not a RIF furlough when its length is unknown at the start.
- Employees serving an initial probationary or trial period, temporary employees on appointments of a year or less, and Schedule C and Schedule G employees are excluded from RIF competition. They still get a modified written notice in most cases.
The private-sector WARN Act does not cover federal agencies, but part 351 has its own notification duty: when 50 or more employees in a competitive area are separated, the agency must also notify OPM, unions, the state dislocated worker unit and local officials. For comparison with private employers, see our guide to WARN Act notice rules.
How are employees ranked in a federal RIF?
Under the 2026 rules, tenure decides which list you are on, and performance plus veterans’ preference decides your place on it. The agency first sets the competitive area (an organizational unit or a geographic location) and groups interchangeable positions into competitive levels. Competitive service and excepted service employees go on separate retention registers.
| Factor | How it counts (notices on or after Sept. 2, 2026) |
|---|---|
| Performance credit | Three most recent ratings of record from the 4 years before notice: Level 5 = 7 points, Level 4 = 5, Level 3 = 3, Levels 1 and 2 = 0 |
| Veterans’ preference | Subgroup AD (compensable service-connected disability of 30% or more) adds 5 points; subgroup A adds 3; subgroup B adds 0 |
| First tiebreaker | Tenure subgroup I ranks ahead of subgroup II |
| Second tiebreaker | Earlier service computation date ranks higher |
Missing ratings are filled in by formula. With one rating, its points are tripled. With two, their average stands in for the third.
A quick example
Employee 1 has three Level 4 ratings and no veterans’ preference: 15 points. Employee 2 has three Level 3 ratings and a 30% service-connected disability: 9 + 5 = 14 points. Employee 1 ranks higher. Under the old rules, veterans’ preference subgroups were sorted first and performance only added extra years to length of service, so the order could have been reversed.
What replaced bump and retreat rights?
The revised rule replaces “bump” and “retreat” with a single right to assignment. A released competitive service employee with a current rating of Level 2 or higher must be offered a position instead of separation or furlough when all of these are true:
- the position is in the same competitive area and has the same type of work schedule;
- it is held by an employee with lower retention standing in the same tenure group;
- it is no more than three grades or grade intervals below your position, or five for a preference eligible with a compensable disability of 30% or more;
- it requires no reduction, or the least possible reduction, in your representative rate; and
- you are qualified for it, generally shown by a job-related, skills-based assessment unless you did the same work within the past five years.
How much notice do federal employees get?
At least 60 days of specific written notice before the RIF action takes effect. An agency can ask OPM to approve a shorter period, but never less than 30 days. The notice must identify your competitive area and level, tenure group and subgroup, veterans’ preference subgroup, service computation date and the ratings used, plus your appeal rights and information on reemployment programs.
When an agency will abolish every position in a competitive area within 180 days, it may use a streamlined process without retention registers or assignment rights, but it still owes the tailored notice.
What severance pay and retirement options are there?
Severance pay is available to employees who are involuntarily separated, not for inefficiency, have 12 months of continuous service and are not eligible for an immediate annuity. OPM’s severance pay fact sheet sets the formula:
- 1 week of basic pay for each full year of creditable service through 10 years;
- 2 weeks for each full year beyond 10;
- an age adjustment of 2.5% of that amount for each full 3 months of age over 40;
- a lifetime cap of 52 weeks, paid at the same pay-period intervals as salary.
For example, an employee aged exactly 50 with 15 years of service gets a basic allowance of 20 weeks (10 + 10). Being 40 quarters over age 40 adds 100% of that, for 40 weeks in total. At basic pay of $1,800 a week, that is $72,000 before taxes.
Discontinued service retirement is the main alternative. An employee who is involuntarily separated can take an immediate annuity at age 50 with 20 years of service, or at any age with 25 years, provided they did not decline a reasonable offer of another position. Under FERS that annuity is not reduced for age. Agencies may also get OPM approval for voluntary early retirement (VERA) or buyouts before a RIF. Unused annual leave is paid as a lump sum, and federal workers can claim unemployment through their state; our guide to filing for unemployment after a layoff covers timing.
What are CTAP and ICTAP?
They are hiring priorities for displaced employees. The Career Transition Assistance Plan (CTAP) gives selection priority for vacancies in your own agency, and the Interagency Career Transition Assistance Plan (ICTAP) does the same at other agencies, if you are well qualified for the job. The Reemployment Priority List (RPL) covers later rehiring by your agency. OPM says the core priorities under all three remain in place under the 2026 rules.
How do I appeal a federal RIF?
If your specific RIF notice was issued on or after September 2, 2026, and you are separated, demoted or furloughed for more than 30 days, you may appeal to OPM through its e-filing system, generally within 30 days after the RIF action takes effect. If you are in a bargaining unit whose negotiated grievance procedure covers RIFs, you generally must use that procedure instead. Notices issued before September 2, 2026, keep the right to appeal to the Merit Systems Protection Board. Federal unions opposed moving these appeals away from the MSPB, so check OPM’s site for any court action affecting the rule.
Bottom line
Under the 2026 rules, your last three ratings are now the biggest driver of whether you keep your job, so the ratings listed on your notice are the first thing to check. Errors in ratings, tenure subgroup or veterans’ preference can change your standing, and the 30-day appeal clock starts at the effective date. Your agency HR office or a federal employment attorney can review the register entry.
FAQ
Can I see the retention register?
Yes. The rules give employees who receive a specific RIF notice access to the retention register and related records for their competitive level, so they can check how they were ranked.
Does veterans’ preference always protect me in a RIF?
No. Preference adds 3 or 5 points to your performance score. An employee without preference but with higher ratings can rank above a preference eligible.
Can I get severance and an immediate annuity at the same time?
No. Severance pay is not available to an employee who is eligible for an immediate annuity on separation, including discontinued service retirement.
