Reduction in Force: Legal Requirements and Check List for Federal Employees

In the complex landscape of federal employment, understanding the intricacies of a Reduction in Force (RIF) is crucial for both employing agencies and employees. A RIF is a significant event that can lead to employment loss, affecting the livelihoods of many federal employees. 

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Proactive Checklist for Federal Employees to Prepare for Reduction in Force (RIF)

Retrieve Important HR Documents from eOPF

While employees still have access to government HR systems, they should retrieve important documents from their eOPF (electronic Official Personnel Folder) related to employment, service credits, and retirement benefits. These include, but are not limited to: 

• SF-50: Notification of Personnel Action – important document that records changes such as appointments, promotions, reassignments, separations, and other significant actions affecting an employee’s position or pay. 
• Compensation Statement – provides information about salary and other pay, benefits such as retirement and health insurance, payroll deductions such as taxes, and total compensation figures. 
• RIF Service Credit – information about tenure of federal service, veteran’s preference (if any), performance ratings, and what type for appointments were served during federal employment.

Confirm Mailing Address and Prepare for Loss of Access

If there is a sudden RIF and impacted employees’ access to government computer systems is terminated when the RIF notice is sent, then important correspondence with employees regarding severance pay, options retirement benefits, unemployment benefits, and possible reassignment opportunities would all be mailed to the address on file. Preparing for a sudden loss of access, including confirming the correct mailing address on file and gathering copies of personal documents, is a crucial step when proactively preparing for a possible RIF. 

Reassignment Rights: Confirm Service Type and Review Possible Government Placement Programs

Investigating possible re-employment at a different federal agency or occupying a different position within the same agency will depend on a couple of factors, and may result in a separation or demotion by reduction. Most importantly, whether of not the federal employee’s terminated job was considered excepted or competitive service. Those hired and employed under excepted service have no appeal rights when facing an RIF unless those rights were explicitly given to an employee by their agency. For individuals leaving an excepted service position, but who also have veteran service, there might be government re-employment lists they’d be able to contribute their name to. Jobs considered competitive service undergo a different hiring process and have more rights to appeal the RIF decision. Once you have figured that out, you can start looking into government placement programs and the workforce restructuring and placement system process, including:

• Inter-Agency Career Transition Plan (ICTAP) – competitive service employees that vacated their job due to an RIF are eligible. The program determines the selection priority and objective criteria for reassignment and process for application. Grade and pay retention is not guaranteed when reemployed in the federal government, meaning your former rate of basic pay for each year could change. 
• Reemployment Priority List (RPL) – helps eligible employees (for competitive service jobs removed when conducting a RIF, employees who received a certification of excepted separation, and employees who had previous left their position for at least one year due to a disability) find new positions in the federal government. Those on the RPL receive priority in the hiring process for applicable competitive service positions in commuting distance of the employee’s designated locality.
• Career Transition Assistance Plan (CTAP) – While ICTAP involves reemploying displaced federal workers with a different agency than their original employer, CTAP operates within the same agency, finding employment for those who lost their job due to an RIF. 
• Workforce Innovation and Opportunity Act of 2014 Programs – For workers who recently separated from the federal government, these programs can help employees find new employment, provide training and preparation, and assist with career development. 

Severance Payments and Unemployment Benefits

The last items on this checklist for federal employees to prepare for reduction in force (RIF) are:

• Locate Social Security Card – This might be required to receive unemployment benefits, so if you are unsure where yours is located, ordering a replacement now could prevent future delays in receiving pay from unemployment. 
• Estimate Severance Pay – An agency can provide severance pay to employees who lost their employment due to an RIF. To calculate the amount of a future severance package, here is a worksheet from OPM. 

While severance pay provides immediate financial support to employees affected by a RIF, it is distinct from unemployment benefits, which are administered by state agencies. Severance pay is typically a one-time payment, whereas unemployment benefits provide ongoing financial assistance to individuals who are actively seeking new employment.