OPM Formally Proposes Major Overhaul of Federal Performance Ratings

The Office of Personnel Management (OPM) issued a formal rule proposal to overhaul the way federal employees are rated in their annual reviews– the first major overhaul of performance ratings in decades.

At the center of the proposal is the removal of the current ban on “forced distribution” of ratings. If finalized, agencies could limit how many employees receive certain rating levels, including the highest marks. OPM indicated it would likely cap top-tier ratings, a move the agency says is aimed at curbing “ratings inflation.”

While OPM previously enacted a similar rule for the Senior Executive Service (SES), this new rule will cover nearly everyone else in the civil service. 

“Such updates will strengthen the agencies' ability to evaluate performance accurately and fairly, ensure that high performance is recognized and rewarded, and align workforce management with mission accomplishment,” wrote OPM in the proposal. 

In addition to removing the ban on forced ratings, the rule would consolidate performance rating levels and would require agencies to have employee review systems certified by OPM every two years. The rule would also restrict formal challenges to performance scores and stop requiring automatic second-look reviews for those scoring at the lowest level rating. 

Critics say the change could stifle agency innovation, hurt workplace culture, and may result in employees not receiving accurate ratings due to the limits. 

A similar rule was proposed for senior-level (SL) and scientific and professional (ST) employees. 

Comments on both proposals are due on or before March 26, 2026. 

OPM Formally Nixes ACWA 

Meanwhile, OPM told agencies to stop using the Administrative Careers with America (ACWA) assessment in the hiring process. 

OPM says there is no longer a need for the “outdated” ACWA with the development of validated, state of the art assessment tools like the USA Hire platform. 

“As we implement the Merit Hiring Plan and Chance to Compete Act and modernize federal hiring, we have found that ACWA no longer meets that need, and therefore we are ending it after 36 years. We look forward to working with agencies to drive implementation of validated assessment tools that will ensure the hiring of top talent across the federal government,” said OPM Director Scott Kupor.