Reduction in Force

UNIVERSITY SYSTEM OF GEORGIA

Contents:

  • Use 'reduction in force (RIF)' in a Sentence
  • Summary of Reduction in Force
  • Human Resources

    • In the RIF, Robinson and Keane had the lowest retention standing, and are released from the competitive level. White is released from the competitive level because of lowest retention standing. Wilson retains the same I-A status after entering into White's former position. Wilson's displacement of White is not a RIF action because Wilson was not released from the competitive level. Unless White, Robinson, and Keane have bump or retreat rights to another position, the agency may separate each employee by RIF.

    Keane has no assignment right to another position and separates by RIF. Robinson has a bump right to another position, while White has a retreat right. This summary will cover both the bump and the retreat actions in more detail. An employee who the agency releases from a competitive level may have bump or retreat rights to a continuing position on a different competitive level held by another employee with lower retention standing. A released competitive service employee in tenure groups I or II has Bump or Retreat rights to an " Available Position " in the same competitive area if the agency would otherwise separate or demote the released employee by RIF, and the released employee has a current performance rating of record equivalent to Minimally Successful Level II or higher.

    The existence of an " available position " does not oblige an agency to offer an employee a particular position. However, an available position does establish the employee's right to be offered a position at the same grade of the available position. Promotion potential is not a consideration in filling a position under the RIF regulations.

    A RIF offer may have less, more, or the same promotion potential as the released employee's present position. An employee with an excepted service appointment has no assignment rights under the RIF regulations. However, an agency may elect to provide its excepted employees with RIF assignment rights to other excepted positions under the same appointment authority. To determine employees' potential qualifications to bump or retreat into another position, before the agency issues RIF notices the agency may ask employees to submit a qualifications update by a designated freeze date.

    Although the released employee must be qualified for the position, the bump right may be to a position that the released employee never held. At its option, the agency may consider employees' total service in determining an employee's bumping rights. This option provides the first offer to the otherwise eligible released employee with the most service. This sample retention register is a competitive level for GS Logistics Management full-time employees holding competitive service appointments. In this example, John Robinson from the example in Section 18 , who was released from the GS competitive level by RIF, has a bump right to a position in the GS competitive level because his II-A group and subgroup tenure is higher than the II-B tenure of Samuel Wills, and he is qualified for the position.

    The agency then determines whether Samuel Wills has a bump or retreat right to another position on a different retention register. This is the best offer available to John Robinson. After the displacement of Samuel Wills, the retention register for the GS positions looks like this:. The position must also be the same position or essentially identical to a position held by the released employee in any Federal agency on a permanent basis.

    An employee with a current annual performance rating of record of Minimally Successful Level II has retreat rights only to positions held by an employee with the same or a lower performance rating of record. This sample retention register is a competitive level for GS full-time employees holding competitive service appointments.

    Beatrice White from the example in Section 18 , who was released from the GS competitive level by RIF, has the right to retreat to a position held by Charles Gabriel in the GS competitive level. This is the best offer available to Beatrice White, who is qualified for the position.

    The agency then determines whether Charles Gabriel has a bump or retreat right to another position on a different retention register. No higher-standing employee has a right to this GS position:. After Beatrice White retreats to the position held by Charles Gabriel, the retention register for the GS positions looks like this:.

    The agency determines the grade limits of a released employee's assignment rights on the basis of the position the employee holds on the RIF effective date, regardless of how the employee progressed to the position. An agency is not required to offer vacant positions in a reduction in force, but may choose to fill all, some, or none of the vacancies. When an agency chooses to fill a vacancy with an employee reached for release from the competitive level by RIF, the agency must consider the relative retention standing of all the released employees.

    For example, the agency must offer a position to the released employee in the highest group and subgroup before offering a position to an employee in a lower group and subgroup. This is consistent with a bump offer to an occupied position. The agency is not required to consider total service in offering positions to employees in the same group and subgroup unless the employee with the most service also formerly held the position on a permanent basis.

    This is consistent with a retreat offer of an occupied position. The agency satisfies a released employee's right to RIF assignment rights if the agency offers the employee a vacant position at the grade to which the employee has bump or retreat rights. An agency may choose to waive qualifications in offering an employee RIF assignment to a vacant position.

    However, the agency may not waive a minimum educational requirement.

    An agency may never waive qualifications in offering assignment to an occupied position. An agency must give an employee at least 60 days specific written notice before the employee is released from the competitive level by a RIF action. If faced with an unforeseeable situation e.

    An employee in a bargaining unit covered by a negotiated grievance procedure that does not exclude RIF must use the negotiated grievance procedure. The employee may not appeal the RIF action to the Board unless the employee alleges the action was based upon discrimination. The collective bargaining agreement covers the time limits for filing a grievance under a negotiated grievance procedure. The agency's human resources office can provide both employees and managers with additional information on the RIF regulations.

    The office can also provide information on potential benefits, such as eligibility for:. If you are affected by reduction in force RIF , you may have many questions about how your employee benefits will be affected. The information presented in this guide is intended to provide an overview of these benefits and entitlements. Part of Title 5, Code of Federal Regulations, contains more information on grade and pay retention. If you are under FERS and retire on a discontinued service annuity under the age of 55, your annuity will not be reduced.

    Use 'reduction in force (RIF)' in a Sentence

    Reductions in force are typically permanent because the roles of those let go are usually eliminated with the termination of employment. Here's how to write a proper reduction in force letter to use when you need it.

    The following are samples for use in estimating the amount of severance pay. The actual calculation formula is somewhat more complicated and technical.

    The samples are intended to allow you to figure the approximate amount of severance pay you may receive. The computation presumes that you were a full-time employee and that you have not previously received severance pay based on an earlier involuntary separation. OPM is not responsible for the accuracy of the results that this worksheet may give you.

    Severance Pay Estimation Worksheet line 1. This weekly rate can also be derived by dividing the annual rate by Years of Service see A and B below A. Enter the "factor" number shown.

    • If You Believe.
    • Medals by Giovanni Cavino, the Paduan;
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    Multiply the amount in line 2 by 52 weeks. If line 6 exceeds line 7, enter amount on line 7. Otherwise enter the line 6 amount. Multiply the amount in line 2 by 2. Divide the amount in line 8 by the amount in line 9 and multiply the result by 2. Multiply the amount in line 2 by The transfer of function regulations require that under certain conditions nontemporary employees have the right to move with their work to another organization if the alternative is separation or downgrading by reduction in force. This summary covers the procedures in the transfer of function regulations.

    With this summary, employees, managers, employee representatives, and others will have an overview of both the agency's and employees' rights in a transfer of function or similar situation involving the transfer of positions from one organization to another.

    The appropriate human resources office can provide additional information on specific questions relating to transfer of function policies, options, and entitlements. The transfer of function regulations are derived from section of title 5, United States Code. The regulations published in subpart C, part of title 5, Code of Federal Regulations, implement the statute. The agency establishes each of its competitive areas on the basis of organization and geography. OPM's transfer of function regulations apply only when, after transfer, the gaining competitive area uses Federal employees to perform the function.

    For example, a transfer of function does not take place when after transfer the gaining competitive area performs the work through contract employees, a reimbursable agreement with a different competitive area, or by members of the Armed Forces. The movement of work solely within a competitive area is a reorganization, and is not a transfer of function. A transfer of function also takes place when the entire competitive area moves to a different local commuting area without any additional organizational change. For example, a claims office in Baltimore, Maryland, is a stand-alone competitive area.

    Summary of Reduction in Force

    A transfer of function takes place when the Baltimore claims office moves to Wilmington, Delaware a different local commuting area , where the office continues as a separate stand-alone competitive area. OPM's regulations do not define a mileage standard for local commuting area. A transfer of function may be intra- or interagency. The transfer of function regulations use the same procedures for both types of transfers.

    Congress has the authority to exempt intra- and interagency transfers of function from the transfer of function provisions. Congress may also modify the rights of employees involved in intra- or interagency transfers of function. An employee has no right to transfer with the function unless the alternative in the competitive area losing the function is separation or demotion by reduction in force. An agency may always direct an employee's reassignment to another position regardless of location in lieu of transfer of function rights.

    The "Summary of Reassignment" includes additional information on reassignment. If the transfer of function results in a surplus of employees in the gaining competitive area, before separation or demotion, with one exception covered in the next paragraph all employees who transfer with the function compete under the reduction in force regulations on equal terms with other employees in the gaining competitive area for available positions.

    An employee whose position is transferred to the gaining competitive area for liquidation with a function that will not continue for more than 60 days does not compete under the reduction in force regulations for other positions in the gaining competitive area. When a transfer of function will result in employees moving to a different local commuting area, the losing competitive area may use a " Transfer of Function Canvass Letter " to determine which employees wish to be considered for positions in a different local commuting area.

    A transfer of function canvass letter does not guarantee an employee a position at the new location, but simply asks the employee to state an interest in transferring with the function. The losing competitive area may use the canvass letter as the basis to separate an employee who declines to transfer with the function to a different local commuting area. An employee who chooses not to transfer with the function has no right to be in reduction in force competition for other positions in the losing competitive area. However, at its option the losing competitive area may include the employee in a concurrent reduction in force.

    An employee who initially chooses to transfer with the function may later reconsider and decline to transfer to the new location. However, an employee who declines to transfer with the function may not later change the original declination to an acceptance of the offer to transfer with the function to the new location. An employee is generally eligible for relocation expense allowances for a transfer of function that requires relocation to a different local commuting area. The losing competitive area must use adverse action procedures to separate an employee who chooses not to transfer with the function to a different geographic location unless the losing competitive area at its option includes the employee in a concurrent reduction in force.

    If the employee chooses not to transfer with the function, the losing competitive area may not separate the employee any sooner than it transfers employees who choose to transfer to the gaining competitive area. After receiving a separation notice, the employee becomes eligible for most of the benefits available to an employee who receives a notice of reduction in force separation e. See "Additional Information from the Agency" below. An employee does not have the option of declining transfer to a position in the employee's present local commuting area.

    The losing competitive area identifies employees and positions for transfer with a function on the basis of each employee's official position. The regulations provide agencies with two procedures to identify employees for transfer with a function:. Under Identification Method One, the losing competitive area identifies an employee with a transferring function if:. The losing competitive area uses Identification Method Two only to identify positions and employees not covered by Identification Method One. Under Identification Method Two, the losing competitive area identifies for transfer the number of employees it needs to perform the function.

    To determine which employees are identified for transfer under Identification Method Two, the losing competitive area uses " Retention Registers " that list employees working on the function in the order of their respective reduction in force retention standing. Identification Method Two provides that the losing competitive area identifies employees with the lowest retention standing for transfer with the function. However, if this procedure would result in the employees' separation or demotion by reduction in force in the losing competitive area of an employee with a higher retention standing , the losing competitive area instead identifies employees with the highest retention standing for transfer.

    At their option, the losing and the gaining competitive areas can agree that volunteers may transfer with the function, provided that no employee identified for transfer under Identification Methods One or Two is later separated or demoted solely because a volunteer transferred in place of a properly identified employee to the gaining competitive area. An employee may not file an appeal to the Merit Systems Protection Board based solely on a transfer of function issue. However, an employee who is reached for separation or demotion because of a reduction in force or an adverse action after declining transfer may raise transfer of function as in issue in that appeal.

    The released employee must file the appeal no later than 30 days after the effective date of the reduction in force or adverse action. In some situations, an employee may not have the right to file an appeal to the Board because the negotiated grievance procedures contained in relevant collective bargaining agreement are the exclusive procedures for resolving any action that could otherwise be appealed to the Board with some exceptions covered in the Board's regulations. The collective bargaining provides the time period for filing a grievance under the negotiated grievance procedures.

    An employee has no right to transfer with a function if, at the time of transfer, the gaining competitive area performs the same type of work as the function that is transferring from the losing competitive area. Also, an employee has no right to transfer if the function does not cease in the losing competitive area at the time of transfer.

    In these situations, the employee has a right to compete in a reduction in force in the losing competitive area if the agency does not offer the employee another position at the same grade. The offered position may be in the same or in a different local commuting area. The agency must use adverse action procedures to separate an employee who declines relocation e.

    The agency's human resources office can provide both employees and managers with additional information on OPM's transfer of function regulations. This website uses features which update page content based on user actions. If you are using assistive technology to view web content, please ensure your settings allow for the page content to update after initial load this is sometimes called "forms mode".

    Additionally, if you are using assistive technology and would like to be notified of items via alert boxes, please follow this link to enable alert boxes for your profile. Alert box notification is currently enabled, please follow this link to disable alert boxes for your profile. Workforce Restructuring Reductions in Force.

    2. Be clear about the business reasons for the RIF

    This site provides general and detailed information and guidance on RIF procedures. Click the Tabs for general information about: The Employee Guide to Reduction in Force Benefits The information presented in this guide is intended to provide an overview of benefits and entitlements if you are affected by RIF. Summary of Transfer of Function A transfer of function takes place when a function ceases in one competitive area, and moves to one or more other competitive areas that do not perform the function at the time of transfer.

    Workforce Reshaping Operations Handbook and Appendices The Workforce Reshaping Operations Handbook with Appendices assists Federal agencies that are reshaping by identifying mandatory procedures that agencies must follow and by suggesting related options that may reduce the likelihood of involuntary separations. The law provides that the RIF regulations must give effect to four retention factors: Tenure of employment i. This summary will cover each factor in more detail.

    Actions Covered by the RIF Regulations An agency must use the RIF regulations before separating or demoting an employee because of an organizational reason such as reorganization, including lack of work, shortage of funds, insufficient personnel ceiling, or the exercise of certain reemployment or restoration rights. Back to Top Defining the Local Commuting Area While defining its competitive area, the agency also defines the appropriate " Local Commuting Area s " for the competitive area.

    Back to Top Establishing Competitive Levels Within each competitive area, the agency groups interchangeable positions into " Competitive Levels. Back to Top Establishing Retention Registers After grouping interchangeable positions into competitive levels, the agency applies the four retention factors in establishing separate " Retention Registers " for each competitive level that may be involved in the RIF. Back to Top Determining Retention Standing-Tenure Beginning with Group I, the agency ranks competitive service employees on a retention register in three groups according to their types of appointment: Retention registers for excepted positions use similar tenure groups.

    Back to Top Determining Retention Standing-Total Creditable Service Within each subgroup, the agency ranks employees by their respective service dates. Retention service credit includes all creditable Federal civilian and military service. An agency has a single rating pattern when all employees in the competitive area received performance ratings of record under only one of the eight possible summary rating patterns. For example, all of the employees in the competitive area have ratings of record only under a five-level pattern, or only under a two-level pattern, or under the same three-level pattern, etc.

    The amount of extra retention service credit with a single rating pattern is: If an agency has employees in a competitive area who have performance ratings of record under more than one of the eight possible summary rating patterns, at its option the agency may provide different amounts of additional retention service credit for employees who have the same summary level, but are under different patterns. The range of additional service credit is still limited from 12 to 20 years. Back to Top Sample Release From the Competitive Level This sample retention register is a competitive level for GS full-time employees holding competitive service appointments: Finn transferred to a different agency before the RIF effective date.

    Back to Top Possible Right to Bump or Retreat to an Available Position An employee who the agency releases from a competitive level may have bump or retreat rights to a continuing position on a different competitive level held by another employee with lower retention standing. An " Available Position " must: In a lower retention subgroup who is subject to bump rights, or In the same subgroup, but with less service, and who holds a position which the employee formerly occupied on a permanent basis or an essentially identical position that is subject to retreat rights.

    Back to Top Bumping Rights "Bumping" means displacing an employee on a different competitive level who is in a lower tenure group, or in a lower subgroup within the released employee's own tenure group. After the displacement of Samuel Wills, the retention register for the GS positions looks like this: Back to Top Sample Retreat Right to a Different Competitive Level This sample retention register is a competitive level for GS full-time employees holding competitive service appointments.

    No higher-standing employee has a right to this GS position: Back to Top Offers of Assignment to Vacant Positions An agency is not required to offer vacant positions in a reduction in force, but may choose to fill all, some, or none of the vacancies. Back to Top RIF Notices An agency must give an employee at least 60 days specific written notice before the employee is released from the competitive level by a RIF action.

    Back to Top Additional Information from the Agency The agency's human resources office can provide both employees and managers with additional information on the RIF regulations. The office can also provide information on potential benefits, such as eligibility for: Career transition assistance, Separation incentives if available , Rehiring selection priority, Severance pay, Retirement, Retraining, Unemployment compensation, and Relocation allowances.

    Benefits for Downgraded Employees Grade and Pay Retention If you are placed in a lower-graded position through RIF procedures, you will be entitled to retain the higher grade for two years if you completed at least 52 consecutive weeks at the higher grade. Also, if you are downgraded after receiving a specific RIF notice and taking a lower-graded position offered by management, you will be eligible for grade retention on the same basis as an employee who was actually downgraded by a RIF action. Your retained grade is considered to be the grade you held prior to RIF downgrading for most benefits purposes including pay and pay administration, retirement, life insurance, eligibility for training, noncompetitive promotions, and within-grade increases.

    After grade retention expires, you will be eligible for indefinite pay retention. If you are downgraded because of a RIF but don't meet the week eligibility for grade retention, you will also be eligible for indefinite pay retention. If your former rate of basic pay fits in the pay range for the lower-graded position, you will be placed in the lower pay range without a reduction in pay and pay retention will cease. If your former rate of basic pay is greater than the maximum rate of the pay range for the new position, your former rate will be continued as a retained rate not to exceed percent of the maximum rate for the grade in which you have been placed.

    You will then receive 50 percent of any adjustments e. At that point, pay retention will cease. If you are on a temporary or term appointment at the time of a RIF, grade and pay retention will not apply. Repromotion Consideration If you are downgraded because of RIF, your agency's internal placement plans may allow you to receive priority consideration for promotion to positions up to your former grade level.

    The specific policies and procedures for such consideration are established by each agency. Back to Top Benefits for Separated Employees Severance Pay If you are about to be separated from a permanent position involuntarily and through no fault of your own, you will likely be eligible for severance pay. To be eligible, you must not have refused an offer of a position that is 1 in the same commuting area, 2 in the same agency, and 3 no more than two grades below your current grade level.

    In addition, you must have been employed for at least 12 continuous months, and cannot be eligible for an immediate annuity from a federal civilian retirement system or from the uniformed services. Also, you must not be receiving workers' compensation benefits for wage loss due to an on-the-job injury. Computation of Severance Pay: Only civilian service is creditable for severance pay.

    You will be entitled to 1 week's basic pay for each year of civilian service up through 10 years, plus 2 weeks' basic pay for each year of creditable service beyond 10 years. In addition, an age adjustment allowance of 2.

    Human Resources

    The maximum amount of severance pay is one year's salary 52 weeks. This is a lifetime limitation. Thus, any severance pay you may have received in the past is taken into account when applying the limit. Severance payments will be equal to your weekly pay at the time of separation and will be paid out at regular pay period intervals usually biweekly until the severance pay is exhausted.

    The only deductions made from severance pay are taxes, social security if applicable , and Medicare. Severance pay estimation sheets are located at the end of this guide. The samples are intended to help compute the approximate amount of severance pay you might receive. To receive an actual computation, please contact your servicing human resources office. If you are reemployed in a permanent position with the Federal government or the District of Columbia, severance payments will be stopped immediately.

    If you are reemployed in the Federal government on a temporary appointment after a break of more than 3 calendar days, severance pay will be temporarily suspended. When your temporary appointment ends, the agency will restart the unexpired portion of your severance pay. If you accept a temporary appointment with the Federal government within 3 calendar days of separation and subsequently leave that temporary job on an involuntary basis e. These are the same employees you originally entrusted to help build your business, so extend an equal level of sincerity at their departure as you did when you hired them.

    After all, the employees impacted by the rif will continue to have relationships and influence employees in your workforce; show them respect and humanity on the way out. Remember that not all your employees have as much visibility into the business as you do. For some, this could be a complete surprise. Help them to understand the reason behind the rif. While it may not soften the blow in that specific moment, it does help them to see it as a personnel rather than a personal decision in time. The key here is creating a clear communication plan so that everyone from line employees to third-party vendors knows what to expect in the coming months.

    By sharing the criteria with staff, it can help them process the rif in relation to the business more effectively. And, if they see these criteria applied equitably versus arbitrarily across the organization, it reinforces the business motivations of the decision. Additionally, you should have a documented, objective comparison of employees where skills and job performance are the criteria in making layoff determinations.

    This documentation is critical in the event of litigation challenging some aspect of the layoff. These will vary greatly by organization depending on your stage of growth, financial resources, and your industry. This can be anything from a credible severance package to employee retraining for another job. How you treat employees during a rif will speak directly to your workplace culture, so be aware of what is at stake. The choices you make during a rif will leave an impression with employees forever, whether they are departing or staying with your organization.

    Clearly communicate the rif and its reasons and criteria to these employees, along with reasonable assurances about their employment and insight into the company's plans. In this way, you can send a message of growth that helps to retain this talent versus frightening them into a covert job search.