OPM Proposes Changes to Federal Reduction in Force (RIF) Rules

The Office of Personnel Management (OPM) published a proposed rule on March 5, 2026, in the Federal Register that would significantly revise the federal Reduction in Force (RIF) process under 5 CFR part 351 and related regulations. The changes aim to make RIFs more efficient, merit-focused, and flexible for agencies while reducing administrative complexity. The proposal is open for public comment, and would not take effect until a final rule is issued.

The most significant shift is a reordering of retention standing. Performance would become the primary factor in determining who stays during a RIF, replacing the emphasis on length of service and tenure. Retention would be calculated using “performance credit” from an employee’s three most recent ratings of record:

• 7 points for Outstanding/Level 5
• 5 for Exceeds Fully Successful/Level 4
• 3 for Fully Successful/Level 3
• 0 for Minimally Successful or Unacceptable

Veterans’ preference would add 5 or 3 points, depending on eligibility. Ties would be broken by tenure subgroup and service computation date. This change is designed to retain higher-performing employees longer and better align workforce reductions with agency mission needs.

Competitive areas would be simplified and defined by official organizational charts, focusing on function, staff, and supervision rather than geography in most cases. When an entire competitive area is abolished within 180 days, agencies could release employees without creating a full retention register or applying bump/retreat rights, streamlining the process.

Assignment rights (bump and retreat) would be narrowed: employees could only displace lower-standing individuals in positions no more than three grades below (five for certain preference eligibles), with qualifications determined through validated, skills-based assessments rather than self-certification. Temporary and discretionary exceptions for post-RIF retention (e.g., for medical leave, retirement processing, or military spouses) would be expanded and clarified, with agencies required to document and notify affected employees.

Furlough procedures for periods exceeding 30 continuous or 22 discontinuous days would be simplified: no retention register required, with agencies notifying employees of criteria based on mission needs, performance, tenure, veterans’ preference, and service. Emergency shutdown furloughs of unknown duration would be excluded from standard rules.

Other updates include streamlined transfers of function (limited to inter-agency moves), alignment of related programs like the Reemployment Priority List (RPL) and CTAP/ICTAP with the new tenure definitions, and a prohibition on post-RIF “erosion of duties” reclassifications that harm retention standing.

If finalized, these changes could accelerate separations for lower-rated or probationary employees while offering stronger protection to top performers. Veterans’ preference remains, but is supplemented by performance weighting.