OPM Details New RIF Rules for Federal Workers

The process for deciding which federal employees will stay, and which will go during a reduction in force (RIF) was changed by the Trump administration.

The Office of Personnel Management (OPM) issued a final rule that took effect September 2, 2026, along with guidance outlining changes to the RIF process.

OPM stated that an employee’s performance ratings will be the primary consideration going forward when it comes to deciding RIFs. Agencies will rank employees on a point system– with an employee who has a level five (outstanding) rating receiving seven points, a level four employee receiving five points, a level three employee receiving three points, and zero points for levels one and two.

Employees will be ranked based on their three most recent ratings of record from the relevant four-year period while veterans’ preference will receive additional points.

Tenure and seniority are used only as a tiebreaker.

Employees in the competitive and excepted service will be placed on separate registers for RIFs.  Employees on a probationary period, as well as Schedule C and Schedule G employees, are excluded from this RIF process.

“Bump and Retreat” Replaced

The rule also replaces the “bump and retreat” process with a single assignment right standard.

Under the old system, an employee could “bump” another employee in the same competitive area who was in a lower tenure group or a lower subgroup within the employee’s own tenure group. An employee could also “retreat,” meaning they could displace an employee in the same competitive area with less service within the released employee’s own tenure group and subgroup.

Under the new standard, an employee may be assigned to a qualifying position held by an employee with a lower retention standing. 

“Generally, this assignment requires a job-analysis-based qualification assessment unless exceptions for doing the same work within five years and performance applies,” OPM wrote.

“Exactly Backwards”

In a recent blog post, OPM Director Scott Kupor said the changes will fix a process that he called “exactly backwards.”

“If an agency needs to reduce its workforce, the goal should be to retain the people who are best at the mission, not simply the people who have been around the longest. Merit matters – full stop,” wrote Director Kupor.

However, critics take a different view and worry about politicization, especially after OPM removed the longstanding ban on forced distribution of performance ratings and shifted RIF appeals from the Merit Systems Protection Board (MSPB) to OPM.

“Read together, the interlocking set of proposals would make RIFs more subjective, less contestable before independent and neutral adjudicators, and easier to use for targeting individuals rather than positions,” wrote Democracy Forward in comments over the proposed RIF changes.