U.S. Office of Personnel Management - Ensuring the Federal Government has an effective civilian workforce
RESTRUCTURING INFORMATION HANDBOOK |
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MODULE 2, HUMAN RESOURCE RESPONSIBILITIES IN RESTRUCTURING (January 1999 version)
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UNIT B (GUIDANCE)
SECTION 1. OVERVIEW OF MODULE 2, page 2
SECTION 2. REDUCTION IN FORCE PLANNING, page 3
SECTION 3. REDUCTION IN FORCE CHECKLIST, page 68
SECTION 4. REDUCTION IN FORCE EMPLOYEES' SKILLS SURVEY, page 72
SECTION 5. RESTRUCTURING TOOLS FOR FEDERAL AGENCIES, page 76
MODULE 2 (HUMAN RESOURCE RESPONSIBILITIES IN RESTRUCTURING), UNIT B (GUIDANCE), SECTION 1. OVERVIEW OF MODULE 2
1. Restructuring Information Handbook Module 2 assists agencies in applying management principles to restructuring situations.
o Module 2 consists of five Sections on restructuring topics that may be used separately or together, depending on the user's needs.
2. This is the December 1998 version of Restructuring Information Handbook Module 2.
3. Other available Restructuring Information Handbook Modules include:
o Module 1, "Restructuring Planning and Alternatives," Unit B ("Guidance")
o Module 3, "Reduction in Force," Units A ("Required Procedures") and Unit B ("Guidance")
o Module 4, "Transfer of Function," Units A ("Required Procedures") and Unit B ("Guidance")
o Module 6, "Reemployment Priority List," Units A ("Required Procedures") and Unit B ("Guidance")
o Module 7, "Career Transition Assistance Plan," Unit A ("Required Procedures")
o Module 8, "Interagency Career Transition Assistance Plan," Unit A ("Required Procedures")
MODULE 2 (HUMAN RESOURCE RESPONSIBILITIES IN RESTRUCTURING), UNIT B (GUIDANCE), SECTION 2. REDUCTION IN FORCE PLANNING
REDUCTION IN FORCE PLANNING: A PRACTICAL GUIDE Reductions in force are a last resort in downsizing, used only after agencies have exhausted other, less drastic measures to reduce their workforce. OPM has produced this guide for use by agency personnel staff to help prepare for an actual reduction in force. This Planning Guide of practical suggestions should be used in conjunction with applicable rules and regulations, and other material available from OPM, such as the Restructuring Information Handbook Modules on subjects such as "Reduction in Force" (see Module 3) and "Transfer of Function" (see Module 4). It is assumed that the user of this guide is a Personnel Management Specialist who has had, at a minimum, basic reduction in force training, or comparable experience and similar training or experience in reduction in force entitlements and benefits. It is imperative that the user be "up to speed" on current reduction in force rules and regulations. Practical experience or training in the same areas identified for the reduction in force team described in Step 1 of this guide is also highly desirable.
This Guide starts at the point where it is determined that a reduction in force is definite, or at least is likely. The assumption is made that all appropriate reduction in force avoidance strategies have been implemented; however, for reference, Section 5 of this Module (i.e., Module 2) provides a current update of key reduction in force avoidance options that have proven successful for many agencies.
NOTE- OPM's REIMBURSABLE RIF ASSISTANCE: OPM's downsizing experts can assist you in planning and implementing your reduction in force.
On-site assistance is generally done on a reimbursable basis and is available by contacting our Restructuring Services Program located in OPM's San Francisco Service Center at 415-281-7094. You may also e-mail restructuring@opm.gov for further information.
OPM can provide technical on-site consultation or can conduct any part, or all, of the reduction in force process for you. Our reimbursable on-site services include:
o reduction in force planning
o employee records clean-up
o competitive level determinations
o reduction in force briefings to managers, partnerships, employees, and human resources staff
o conducting a mock and/or actual reduction in force
o benefits determinations
o developing and implementing a reduction in force notification process
o reduction in force and benefits counseling
o outplacement
o post-reduction in force recovery and revitalization.
TABLE OF CONTENTS
Action Item:
1. Establish RIF Team - Determine Support Requirements And Procure As Necessary - Identify Roles And Responsibilities In RIF.
2. Designate Outplacement Team And Begin Developing Outplacement Program.
3. Identify The Competitive Area(s) Where The RIF Will Occur.
4. Notify Parent Organization Of Impending RIF Action And Obtain Approval, If Necessary. 5. Establish Effective Date Of RIF.
6. Develop A Communication Plan For Dealing With Information Concerning The RIF. 7. Notify Unions In Accordance With Local Negotiated Agreements. 8. Contact Other Federal, State, And Local Agencies And Solicit Assistance In Placing Employees.
9. Account For All Employees And Positions In The Competitive Areas.
10. Review Employee Assignments To Insure Position Descriptions Are Accurate.
11. Review Competitive Levels For Accuracy.
12. Review And Verify Entitlement To Preference Eligibility Under RIF.
13. Review And Verify Service Computation Dates (SCDs).
14. Identify The Four Year Window To Be Used in Crediting Performance Ratings in RIF; Verify Ratings That Fall Within The Window; Determine Amount Of Credit To Be Given For Ratings.
15. Complete Review Of All Employee RIF Essential Data.
16. Provide a Definite Time Period for Employees to Review and Update Their OPFs, Resumes/OF-612's/SF-171's, Performance Ratings, and RIF Other Essential Information. 17. Determine Administrative Guidelines/Policy On Discretionary Issues Dealing With RIF.
18. Freeze All Personnel Actions Which Impact Employees' Retention Standing. 19. Identify Positions To Be Abolished.
20. Obtain Copies Of Pay Scales And Prepare Representative Rate Chart.
21. Identify Lines Of Progression For Occupations In The Competitive Area.
22. Prepare Retention Registers And Listing Of Vacancies To Be Used As RIF Placement Offers.
23. Conduct Mock RIFS And Analyze The Results.
24. Conduct Round One - Identify Employees Released From Their Competitive Level.
25. Separate Reemployed Annuitants, Temporary Employees; Return Status Employees On Details, Temporary Promotions, Etc., To Their Permanent Position Of Record As Necessary.
26. Determine Qualifications Of Affected Employees.
27. Identify Employee Assignment Rights - Round Two (i.e., employees' "bump" and "retreat" rights.
28. Complete Notification Requirements When 50 Or More Employees Are Identified For Separation.
29. Make RIF Entitlement Eligibility Determinations For Affected Employees. 30. Prepare RIF Notices And Associated Informational Materials.
31. Determine The Process Which Will Be Used For Delivering RIF Notices.
32. Deliver RIF Notices And Obtain Employees' Acknowledgment.
33. Notify Exclusive Bargaining Unit Representative(s) Of Each Affected Employee; Notify Local OPM Service Center Regarding Interagency Placement Program Registration And Outplacement Assistance.
34. Provide Counseling Sessions On Mechanics Of RIF, Employee Entitlements And Retirement. 35. Conduct Briefings And Registration For Placement Programs.
36. As Necessary, Run Additional Iterations Of The RIF During The Notice Period To Upgrade Offers When Possible.
37. Prepare Outprocessing Packages For Employees Scheduled For Separation; Effect Actions And Outprocess Employees.
38. Organize RIF Records And Retention Registers; Review For Completeness And Documentation. 39. Respond To Appeals Or Grievances, As Necessary. *
40. Review And Evaluate RIF Planning Process And Execution.
41. Develop And Implement A Post-RIF Recovery Plan.
Also, refer to:
o Section 2-B-3: "REDUCTION IN FORCE PLANNING GUIDE CHECKLIST;" and
o Section 2-B-4: "REDUCTION IN FORCE SKILLS SURVEY."
1. ESTABLISH RIF TEAM - DETERMINE SUPPORT REQUIREMENTS AND PROCURE AS NECESSARY - ROLES AND RESPONSIBILITIES IN RIF
(a) COMPOSITION OF RIF TEAM
The size of the reduction in force team varies because of factors such as the amount of resources available for the reduction in force, the size of the reduction in force, the location(s) of the reduction in force, and the total lead time for the agency to conduct the reduction in force.
The team approach to reduction in force planning and execution is essential - it is simply too much for one or two individuals to handle. Also, the reduction in force process involves employees' substantive rights; employees may later challenge the agency's reduction in force decisions through an applicable appeals or grievance process.
The team approach provides additional opportunities for the agency's personnelists to double check decisions relating to the mechanics of the reduction in force process (e.g., review of competitive level decisions, retreat right determinations, offers of vacant positions, etc.). This continual review provides reassurance to both agency managers and the agency's employees that the agency is properly conducting the reduction in force.
It is best if you have a minimum of two people on the team who have actual reduction in force experience to check and double check each other, and to guide the rest of the team.
The team should not be so big that people are duplicating the same tasks.
Consistency is important, so keep that in mind when you are deciding on the number of team members - the more there are, the more difficult it will be to remain consistent.
If possible, the agency should designate an official team leader.
All members of the reduction in force team should be able to cope with stress and extreme pressure. It is very important for the agency to relieve team members from their regular duties to enable them to devote full attention to preparing and running the reduction in force. Ability to work overtime is usually necessary. Funding for overtime should be calculated into the costs of the reduction in force.
The reduction in force team should consist of personnel specialists who have both a classification and staffing background. Additionally, knowledge of the overall mission and function of the agency as well as positions affected by the reduction in force is essential. Knowledge of the qualification requirements of the affected positions is also critical. Previous experience or at least training in reduction in force mechanics is essential. Personnelists must be knowledgeable about current reduction in force regulations. The personnelists should have current software training if the agency uses an automated reduction in force system such as the Department of Defense's "AUTORIF" program. (Information on downloading "AUTORIF" from the Internet is found in paragraph (e) below.)
(b) ESSENTIAL RIF SUPPORT TEAM o Staffing Assistants--
- Good with details and numbers. - Know how to figure service computation dates, veterans' preference determinations, etc. - Know how to access and download data from agency personnel data files.
o Clerical Support--
- Good with details. - Photocopies notices, assembles reduction in force packets, etc.
o Benefits Specialist--
- Knowledgeable about retirement, health and life insurance, and the Thrift Savings Plan.
o Computer Specialist--
- Develops interface between agency personnel data and automated reduction in force program (especially for non-Defense agencies).
- Assists reduction in force team in manipulating reduction in force data and setting up computers to use automated reduction in force programs.
(c) SUPPORT EQUIPMENT AND FACILITIES
The agency should provide the reduction in force team with a secure, private room which is large enough to accommodate all team members.
Briefings from security should be considered for the purpose of advising the reduction in force team on how to handle upset employees or tense situations.
Due to the sensitive nature of the task at hand, the agency should restrict access to the reduction in force room. The agency should allow access only to members of the reduction in force team, and designated other individuals who have specific business with the team.
The agency should outfit the team's room with the appropriate number of desks, telephones, fax machines, computers, printers, supplies, copying machines, and e-mail capability, for all team members. Also, it is helpful if the telephones have voice mail or call forwarding capabilities so the reduction in force team may work uninterrupted during critical phases.
For example, depending upon the size of the reduction in force and the number of competitive areas, a minimum of two or three personal computers and two printers are recommended. One computer should be dedicated to the employee database file. The other computers should be equipped with the automated reduction in force software (make sure there is adequate memory space available). All computers should be password coded. It would also be helpful to have a modem attached to at least one computer in order to access OPM's website for current technical information. Ready access to a FAX machine should also be helpful, especially if dealing with employees at different work sites.
Locking file cabinets in the room are helpful - one to three depending again upon the size of the reduction in force.
Easy access to Official Personnel Folders, and OPM regulations, is essential.
A dedicated copy machine is desirable as well as a shredder or burn bags. Caution needs to be taken with disposing the trash.
Tables for stacking Official Personnel Folders, reduction in force notice packages, etc., are also essential.
A blackboard or flip chart is desirable for keeping track of decisions, to do lists, etc.
Office supplies, including a large supply of white paper, letterhead paper, and large and small envelopes, are needed. Three ring binders and dividers are useful for keeping retention registers and mock reduction in force actions.
A file folder on each employee is also recommended. Verification of reduction in force essential data, correspondence, copies of reduction in force letters, counseling records, etc., are recommended for inclusion in this temporary file.
(d) TRAINING FOR RIF TEAM
It is essential that all members of the reduction in force team have, at a minimum, completed a training course (either classroom or correspondence) in reduction in force mechanics. If the reduction in force team is anticipating counseling individuals or making eligibility determinations on reduction in force entitlements and benefits (e.g., grade and pay retention, severance pay, discontinued service retirement, optional retirement, voluntary early retirement, the FERS retirement MRA + 10 option, etc.), it is recommended they complete a two or three day training course which covers these topics or have previous experience in these areas. If the agency uses an automated program such as "AUTORIF," the agency should provide the team with training and/or hands on practice with the software. Training in stress reduction techniques can also be very valuable.
Individuals may also need to brush up on the following:
- Determining creditable service and calculating employees' service computation dates (SCDs).
- Determining veterans' preference eligibility under reduction in force regulations.
- Agency performance management system.
- Bargaining unit contracts.
- Appeals and grievance procedures.
- Relevant final decisions from the Merit Systems Protection Board and the Federal Labor Relations Authority, as well as other relevant decisions from Federal courts.
- Outplacement options (e.g., the Career Transition Assistance Plan (CTAP), the Interagency Career Transition Assistance Plan (ICTAP), the Reemployment Priority List (RPL), and other placement programs available to an agency's employees (e.g., the Department of Defense's Priority Placement Program (PPP) for displaced employees).
- Internal agency programs providing downgraded employees with repromotion priority for continuing vacant positions.
- Basic qualification requirements and physical qualification requirements for positions within the agency including selective placement factors.
- Familiarity with agency practice of processing individuals who need security clearances for certain positions.
- Agency's policy on "reasonable accommodation" for handicapped employees.
- Restoration rights for employees on military duty, and/or employees who recently returned from active duty.
- Classification changes due to new class standards, classification error, or job erosion, and historical information on classification of agency positions (needed for determining employees' retreat rights).
(e) "AUTORIF" COMPUTER PROGRAM
The "AUTORIF" personal computer program is available directly from the Department of Defense through the Internet. The address is: "www.afpc.af.mil/tab/c_sdc.htm#." Select the AUTORIF option, which will then instruct you on how to download the software. The option will also direct you to the AUTORIF users manual for downloading.
(f) ROLES AND RESPONSIBILITIES IN RIF
This is usually a good time to identify roles and responsibilities in the downsizing effort. An example of how roles and responsibilities were defined by one agency with very limited resources follows:
EXAMPLE: ROLES AND RESPONSIBILITIES IN RIF
A. RIF TEAM
o Keeps management informed on issues/problems/status of the reduction in force.
o Completes database/personnel records cleanup.
o Runs the reduction in force.
o Prepares letters for issue.
o Trains supervisors on issuance of reduction in force letters.
o Furnishes management with listing of reduction in force placements/separations.
o Processes additional runs of the reduction in force.
o Counsels employees on: - reduction in force mechanics. - Entitlements - retained grade and pay, severance pay, continuance of health and life insurance benefits, placement programs. - Effect of offers on benefits. - Applying for vacant positions in the agency under the Career Transition Assistance Plan, and applying for vacant positions in other agencies under the Interagency Career Transition Assistance Plan. - Registering for the Reemployment Priority List.
o Holds Q and A sessions/briefings.
o Evaluates process.
o Prepares responses to Merit Systems Protection Board appeals, and/or grievances under an applicable collective bargaining agreement. (Also possibly testifies in an appeal or grievance concerning the agency's use of reduction in force procedures.)
B. PERSONNEL OFFICE
o Coordinates information/requests from central office personnel - Informs regional management/reduction in force team/transition team/etc.
o Immediately processes corrections in retention data.
o Assists reduction in force team in preparation of reduction in force notices.
o Provides retirement counseling.
o Expedites processing of voluntary separations.
o Processes reduction in force actions (prepares SF-52).
o Develops plan for processing involuntary separations.
o Processes involuntary separations.
o Prepares severance pay calculations.
o Issues downsizing letters to employees including: - Information on reduction in force (questions and answers) - Information on career transition - Success stories - those who find jobs!
C. MANAGEMENT
o Communicates with employees - both affected and unaffected.
o Holds weekly meeting with staff to keep them informed.
o Sets cut-off dates: - Personnel actions - Acceptance of qualifications information - Acceptance of performance appraisals
o Identifies positions to be abolished.
o Notifies personnel and the reduction in force team of any changes in personnel status (e.g., voluntary resignations, voluntary retirements, transfers, etc.).
o Makes management discretionary decisions: - Use of vacancies - Waiver of qualifications - Temporary exceptions - Undue interruption issues, etc.
o Delivers notices: - Develops plan - Writes script - Develops contingency plans for emergencies - medical and personnel
o Supports transition programs: - Encourages use/makes time available for use - Helps RIFed employees network
o Refers employees to proper source for assistance (e.g., reduction in force team/transition counselors/community resources/etc.)
o Develops and implements a post-reduction in force recovery plan - Makes repeated efforts to enhance productivity and morale during post-reduction in force recovery
o Evaluates processes/lessons learned
D. TRANSITION COUNSELORS
o COORDINATOR: - Point of contact for communication to counselors - Develops training/implementation plan - Oversees training of counselors - Identifies policy issues, problems and needs to management - Facilitates communication of job leads - Briefs groups of employees - Q & A sessions - Evaluates program - develops criteria and exit interviews
o COUNSELORS: - Communicate issues/concerns/needs to coordinator - Assist employees in working through stages of job loss - Career decisions: -- Skills assessment -- Interests/values assessment - Career transition: -- Resume/SF-171/OF-612 -- Contact and search strategies -- Networking -- Interviewing techniques -- Salary negotiations -- Follow-up -- Personal action plan
- Help counselor network - provide referrals/pass on job leads, etc. - Facilitate job clubs if appropriate - Referral source: -- Employee assistance programs -- Community services and resources - Conduct exit interviews: -- Feedback on career transition program/agency/etc.
E. EMPLOYEES WITH RIF NOTICES
o Take charge of transition immediately!
o Keep informed: - Attend meetings/telcons - Read newsletters - Ask questions
o Keep family informed.
o Take advantage of transition assistance programs (especially separatees).
o Request reduction in force counseling and/or retirement counseling, as necessary.
o Keep supervisor and personnel informed of any changes in personal status.
F. EMPLOYEES NOT AFFECTED
o Keep informed: - Attend meetings/telcons - Read newsletters - Ask questions
o Provide encouragement and support to RIFed co-workers: - Become a part of their network - pass on job leads/open doors/provide referrals.
o Prepare for change: - New ways of doing business because there are fewer employees o Be a partner in change.
o Immediately notify supervisor/personnel of any changes in personal status, decision to retire, acceptance of another job, etc. - This could save the job of a coworker!
2. DESIGNATE OUTPLACEMENT TEAM AND BEGIN DEVELOPING OUTPLACEMENT PROGRAM
Agencies should keep in mind that the outplacement program should be up and running by the time reduction in force notices are issued (preferably well before). A good outplacement program will be a positive influence on the work force during the notice period and is essential to post-reduction in force recovery.
As soon as it becomes apparent what effects the reduction in force will have on the agency, management needs to determine and disseminate its policies regarding employee use of official time and office equipment (faxes, computers, phones, etc.) for the purpose of finding other employment.
Agencies should be discouraged from having the same individuals plan and execute the reduction in force and develop and implement an outplacement program. There is simply not enough time in the day for the same individuals to do both functions.
3. IDENTIFY THE COMPETITIVE AREA(S) WHERE THE RIF WILL OCCUR
Identification of the competitive area is essential in order to prepare for the reduction in force because it will determine which positions and (potentially) which individuals will be involved in the reduction in force.
Changes in the competitive area 90 days or less before a reduction in force require OPM (central office) approval.
Advise agency management of things to think about when setting a competitive area:
o Relocation costs.
o Placement opportunities.
o Amount of disruption.
o Size of competitive area - a larger competitive area is more difficult to manage in a reduction in force.
o Economic considerations - (i.e., more retained grade/pay possibilities with a larger competitive area - more separations and severance pay with a smaller competitive area).
o Traffic patterns, congestion, and commute patterns.
Make sure that the agency documents the competitive area prior to running a reduction in force (preferably more than 90 days). Check agency administrative manuals and negotiated agreements to see if the competitive areas are already documented.
Discuss directed reassignments outside the competitive area with agency management prior to the reduction in force, if applicable.
If applicable, discuss the option of non-reduction in force offers outside of the competitive area for those identified for separation.
4. NOTIFY PARENT ORGANIZATION OF IMPENDING RIF ACTION AND OBTAIN APPROVAL, IF NECESSARY
Most agencies will have "parent organizations" that have provided specific instructions to follow in order to conduct a reduction in force. The reduction in force approval process and lead time to obtain approval varies from one agency to another and may also depend upon the size of the reduction in force.
It is important to be knowledgeable of your agency's approval process, including the amount of lead time required to obtain reduction in force approval, since failure to request this information early in the reduction in force process may cause a delay in issuing reduction in force notices.
5. ESTABLISH EFFECTIVE DATE OF RIF
The sooner the reduction in force effective date is established, the better it is for planning purposes. Once the effective date is established, the date the reduction in force notices are to be issued should be identified.
The bulk of the work in conducting a reduction in force occurs before the reduction in force notices are issued. The reduction in force team must be given adequate time to prepare for the reduction in force in order to insure proper execution. A single error in the execution of the reduction in force data has the potential to impact an entire organization.
6. DEVELOP A COMMUNICATION PLAN FOR DEALING WITH INFORMATION CONCERNING THE RIF
Timely, accurate, and complete communication is essential within the agency during times of change. An overall education and information delivery plan should be developed. Employees who understand the process and who feel that they are being given truthful, complete information will be more supportive of the change that is occurring in the organization. Rumors typically run wild during a reduction in force and frequently are much worse than the truth. Typically, productivity suffers during a reduction in force, but this can be lessened with open communication with the work force and the union. A good communication program can also speed up the recovery process after the reduction in force.
In developing a communication plan for a reduction in force, the following should be considered:
o Method of communication: - Meetings: -- All employees -- Small groups -- Brown bag sessions work units, etc. -- Video presentations -- Written memos/newsletters/newspaper/brochures/etc. -- Electronic mail/bulletinboards -- Internal TV or radio station telcons
- Audience: -- Management/supervisors -- Employees -- Unions/employee organizations -- Families of employees -- Local government officials and concerns -- Other Federal agencies -- Private sector: --- General public --- News media --- Lawyers --- Congressional offices
o Purpose of communication: -- Educate -- Inform -- Update -- Persuade -- Reassure
o Timing the release of information
Communication, especially during times of stress, should be approached in a variety of ways. Written communication is good because it provides individuals something in black and white that they can refer to in the future. However, it is important from a management/leadership perspective that managers make themselves available to the work force, that they show support to employees, and that they respond to specific concerns directly to the employees. It is impossible to over communicate during or after a reduction in force.
(a) FORMS OF COMMUNICATION
Listed below are some forms of communication agencies have used effectively during downsizing:
o Video presentations: - May be information videos from top management and sent to remote sites - Educational videos on the mechanics of RIF/entitlements/Q & A sessions, etc.
o Town hall (all employees) meetings:
- Advantages: -- Everybody hears and sees the same thing -- Management shows strength by meeting with large groups
- Disadvantages: -- Has the potential to erupt if emotions are running high -- Not an option with large RIF numbers -- May leave out remote sites -- May seem impersonal if group is large
o "ln-House" Newspaper/Newsletter - Advantages: -- Employees are already familiar with the newsletter and generally know when and where they can find it
- Disadvantages: -- Space limitations and format may not lend itself to topic at hand. (May want to consider a supplement to the regular newsletter/paper which is dedicated to downsizing or develop a special newsletter which is independently published and distributed. Consideration may also be given to having this type of information mailed to the employee's home so family members are aware of what is occurring.)
o RIF Hotline
A dedicated telephone line (or fax or computer bulletin board) where individuals may have their questions answered.
o Downsizing Guru
One agency had a "RIF Public Relations Contact" whose primary responsibility was to research and answer technical questions for employees. The "PR Contact" often met with small groups of employees at "brown bag" sessions as well as in individual work units.
o Weekly Updates
Members of the Reduction in Force team and Outplacement team should be available on a regular basis for general questions and answers. At one agency, this was handled on a drop-in basis starting at the same time every week and lasted no more than an hour. This could also go "on the road" to different work sites.
o RIF Briefings
Educating employees on the mechanics of reduction in force and entitlements for those affected by reduction in force is really beneficial in reducing distrust with the "process" and with management. Videos, "formal training sessions", and brochures all can be used in this process.
Management (and Human Resource Specialists) have particularly difficult roles during a reduction in force because they are often being personally affected by the reduction in force and also have responsibilities to others who are affected by the reduction in force. Information/training dealing with the human aspects of reduction in force is especially helpful.
It is often helpful to have an outside source do these briefings even though technical expertise may already exist in-house. An outside party often is more credible to employees than agency staff, usually due to the feelings of distrust which frequently exist inside an agency during downsizing. Having an outside party (including OPM) reinforce/confirm what has already been told to employees by the agency's own staff will increase the confidence the employees have in the way the process is being handled.
(b) TIMING OF COMMUNICATIONS
It almost goes without saying that timing is critical with communications. Information leaks lead to misinterpretations which cause rumors and increased stress levels.
It is important for employees to feel like they are part of the "loop" when it comes to matters that directly affect them. Timing the release of information so all employees have immediate access can be very challenging when dealing with large numbers or multiple work sites.
It is also important to recognize that in order to communicate, the receiver must be ready to receive the communication. Agencies should be sensitive to this, especially to individuals who have just received a reduction in force notice. Some individuals need time to deal with the shock before they are ready to deal with issues they need to confront before they are separated (like continuation of health benefits). You want to be able to respond to the employees' questions as soon as possible, but without overwhelming the employees with information. Management should make sure they are reaching their audience when talking to employees about reduction in force information.
(c) EMPLOYEES' RESPONSIBILITY
It should be pointed out to employees that they, too, have communication responsibility during the reduction in force. The employees need to make the effort to keep themselves informed and they need to ask questions of the right people to get accurate answers. The more informed the employees are, the more confidence and less stress they will have in identifying and thinking through their options.
(Remember that communication is a two way street!)
7. NOTIFY UNIONS IN ACCORDANCE WITH LOCAL NEGOTIATED AGREEMENTS
With the emphasis on Partnerships in Government, unions play a key role in a reduction in force. If the agency's relations with its union(s) were strained before the reduction in force, chances are employee cutbacks will not improve the situation. In any case, the agency should strive for the best possible relationship with its union during a period of downsizing. This joint effort will both assist the employees directly affected by the reduction in force, and allow the agency to return to its principal mission after the reduction in force.
The agency should review all applicable collective bargaining agreements early in the planning process to determine what impact the agreement may have on reduction in force determinations, as well as the impact on union members.
The agency should inform local union officials of the impact to their bargaining unit, consistent with requirements in an applicable collective bargaining agreement. When possible, the agency should offer the union updated information on a regular basis. Failure of the agency to fulfill its notification and bargaining obligations may, in some situations, result in an order by the Federal Labor Relations Authority to cancel a planned (or completed) reduction in force action.
A major effort by the agency to assist affected employees through programs such as outplacement, counseling, benefit entitlements, etc., can meet some of the union's concerns and possibly raise their understanding of the situation.
The decision to conduct a reduction in force is a management right. Generally, the agency must bargain over the impact and implementation of its decision, such as its appropriate arrangements for employees who are adversely affected by the reduction in force. Examples of items related to reduction in force which agencies may find at the bargaining tables include:
o Limiting when reduction in force procedures can be used (e.g., only after other cost cutting measures and attrition have been used to the maximum extent possible).
o Use of vacancies at the same location, and/or in different locations, to place surplus employees.
o Use of the Reemployment Priority List for filling vacancies after the reduction in force before using any other sources (e.g., when possible, recalling separated employees from the Reemployment Priority List before reassigning current employees of the agency to vacancies).
o Waiver of qualifications for filling vacancies, both to avoid the reduction in force (including modification of qualifications to place an employee in a vacancy), or as a waiver to a vacant positions as a reduction in force assignment action.
o Freezing outside hiring to fill vacancies with surplus employees even before the employees have priority for these positions under the Career Transition Assistance Plan.
o Retraining surplus employees for placement in the same agency, or in a different agency.
Agencies may want to spend some time researching issues that are likely to arise with the union. Appeals decisions by the Merit Systems Protection Board (MSPB), the Federal Labor Relations Authority (FLRA), and the Federal Service Impasse Panel (FSIP) decisions can provide agencies with a great deal of insight into potential issues. Resources which provide these types of information include:
o The websites of OPM, MSPB, and other organizations that adjudicate or track appellate decisions.
o PERSONNET (contains U.S. Code, CFR, and decisions from FLRA, MSPB, and FSIP). o Federal Labor Relations Reporter (a publishing service which has full text of some decisions and summaries of all FLRA and FSIP decisions).
o Federal Merit Systems Reporter (a publishing service which has full text and commentary of some decisions and summaries of all MSPB decisions).
o Decisions of the FLRA (official publication with full text of decisions).
o CEMPAR/WESTLAW (computer subscription research systems containing CFRs, and 5 U.S.C. decisions of FLRA, FSIP, MSPB and Federal courts).
8. CONTACT OTHER FEDERAL, STATE, AND LOCAL AGENCIES AND SOLICIT ASSISTANCE IN PLACING EMPLOYEES
The agency should initiate contact with these organizations in its efforts to outplace employees before actually issuing specific reduction in force notices. If not, as soon as possible the agency conducting the reduction in force should establish contact (preferably at a high level) with other local Federal agencies which may be potential employers for the surplus employees.
Other agency contacts (such as those with local public sector non-federal entities including colleges and community colleges, and non-profit organizations) may also provide valuable assistance to the surplus employees.
State employment services often are willing to come on-site to brief employees on their employment services and unemployment insurance. Private industry councils often are a source of funding for training for displaced workers. Social service agencies may be able to offer workshops on finances, stress management and the like.
9. ACCOUNT FOR ALL EMPLOYEES AND POSITIONS IN THE COMPETITIVE AREA
It is never too early for the agency to begin documenting both its employees and positions in the competitive area(s) where the reduction in force will take place. This is necessary to ensure that no employee's assignment rights are violated and that reduction in force records are properly documented. Identifying all of the employees in an agency who are subject to reduction in force regulations is not as easy as it seems.
It will be necessary for most agencies to identify all employees on agency rolls with duty stations in the competitive area of the reduction in force. Care should be taken in what number agencies use in reconciling their count. The on-board count may omit a number of individuals in a non-pay status. The FTE count will not take into consideration part-time positions.
Once the agency identifies all employees in the competitive area, the agency then documents situations when an employee does not compete in the pool where the reduction in force competition will occur (e.g., a Department of Veterans Affairs physician who is employed under title 38 U.S.C., rather than under title 5, U.S.C., does not compete for positions under OPM's reduction in force regulations, a nonappropriated fund employee (NAF) is not covered by OPM's reduction in force regulations, and an employee who is presently on active military duty with restoration rights after the effective date of the reduction in force also does not compete in the reduction in force).
The agency must also document all employees with official positions of record in the competitive area who are performing a different position (e.g., an employee who is on a detail or temporary promotion from an official position of record in a different competitive level must be returned to that competitive level if any employees are reached for release by reduction in force).
When identifying employees in the competitive area, the agency should also document:
o Employees who are receiving benefits based upon a job-related compensable injury, and who are still on the agency's rolls, who may require accommodation in the determination of the bump and retreat rights.
o Employees who are (or have been) carried in a leave-without-pay (LWOP) status, and may require special attention in determining their respective service computation dates.
o Employees who are carried on a detail to a different Federal agency, employees who are carried on a detail or temporary promotion within their present agency, or employees serving on Intergovernmental Personnel Act (IPA) assignments to a non-Federal organization such as a State government or a university; all of these employees compete in a reduction in force based on their official position of record rather than the position held on a detail, temporary promotion, or IPA assignment.
o Employees who are currently serving on military active duty, and have restoration rights to the agency after the effective date of the reduction in force, are not included in reduction in force competition.
o Employees who have been restored to duty after military service, and have additional retention protection for 6 months or 1 year after their restoration, compete for retention at the top of their respective tenure group and subgroup. If the employee is still separated or downgraded, the agency may have an additional restoration obligation to place the released employee in an equivalent position during the period of restoration rights. o Employees with a final decision of removal under authority of 5 CFR Part 430 because of poor performance, or under authority of 5 CFR Part 752 because of adverse action, are identified for separation and do not compete under the reduction in force regulations. (An employee who receives a final decision of demotion under authority of 5 CFR Part 430 because of poor performance competes in the reduction in force on the basis of the competitive level to which the employee will be demoted.)
In accounting for employees, the agency will also want to inventory, and hopefully locate, any missing official personnel folders. The folders are essential for the agency to determine employees' placement rights in the reduction in force. This can be time-consuming if the agency has not established accurate tracking procedures to control the official personnel folders.
A similar accounting process must occur for all positions in the competitive area. The number of positions in the competitive area includes both the number of occupied positions and the number of non-occupied positions.
Once the agency has identified all of the positions (by schedule and by service), management will need to decide which occupied positions are continuing and which vacant positions will be used as placement offers in the reduction in force. Obviously, the number of occupied continuing positions and vacant positions available for reduction in force offers should not exceed the FTE authorized for the organization.
10. REVIEW EMPLOYEE ASSIGNMENTS TO ENSURE POSITION DESCRIPTIONS ARE ACCURATE
If time allows, agencies may conduct a maintenance review of employees' official position descriptions. Management, with assistance from the reduction in force team, should review the qualifications, duties, and responsibilities of employees' official positions of record to make sure that these items are accurately described in the employees' position descriptions.
The agency should pay special attention to reviewing the qualification requirements of the positions and making certain that the qualifications are reflected in the employees' official position descriptions. The reduction in force team should remind management that they only should be looking at the duties and requirements of the position and not the qualifications or backgrounds of the incumbents when describing the qualification, duties, or responsibilities of a position.
However, without a long lead team prior to the reduction in force effective date, the agency normally should not make changes to employees' official position descriptions if the revisions may change the establishment of competitive levels or the determination of employees' assignment rights.
If the agency elects to conduct a review, again at its option, the agency may allow employees to participate in this review. Direct employee participation results in better documentation of the actual qualifications, duties, and responsibilities of the positions in the organization.
The benefits of employee participation may be positive, but not in every situation. For example, employee participation may help create feelings of trust during the reduction in force since the employees provided new information to the agency. However, employee participation in rewriting position descriptions can also have negative results, such as when the employees perceive that the agency used the new information to either target certain employees for actions, or to save other employees from the reduction in force.
11. REVIEW COMPETITIVE LEVELS FOR ACCURACY
Setting competitive levels is primarily a personnel office's responsibility. In setting competitive levels, the human resources (HR) specialist (preferably a classifier) will use the position description (which hopefully has been recently certified as accurate) as the primary source document.
Qualification standards and performance standards are also used in setting competitive levels to help assess interchangeability of positions. Caution should be exercised if consideration is being given to changing minimum qualification requirements of a position before a reduction in force. Changes are not recommended unless they can be fully justified.
12. REVIEW AND VERIFY ENTITLEMENT TO ELIGIBILITY FOR VETERANS' PREFERENCE IN RIF
The agency should review the records of all its 5 and 10 point veterans (including those with derivative preferences) to determine employees' eligibility for veterans' preference under the reduction in force regulations. Make certain that proper documentation exists for the granting of preference eligibility.
Review all veterans with 30% or more disability and have them obtain current certification from the Department of Veterans Affairs (VA) if their present certification is not permanent. (A VA rating of disability without a follow up date is permanent.)
Review all members of the Reserve Forces to determine if their status will change prior to the effective date of the reduction in force (reservist who retires at the rank of 0-4 or above may lose preference eligibility for reduction in force competition upon reaching age 60).
Review all retired military, checking on the nature and conditions of their retirement when determining eligibility for preference under the reduction in force regulations.
13. REVIEW AND VERIFY SERVICE COMPUTATION DATES (SCDs)
This is a very time-consuming but essential step in reduction in force preparation. Some agencies may have access to an automated system which computes "Service Computation Dates" (SCD). However, input must be done by someone who is knowledgeable on creditable service issues. Documentation should be kept in the employee's Official Personnel Folder (OPF) which shows decisions made on creditable service. Appropriate documentation should be in the OPF when granting credit for military service. Any changes in SCDs should be double checked before being made.
The SCD for leave and the SCD used in reduction in force are not always the same. Likewise, the SCD used in severance pay is also slightly different. It makes sense to verify all of these SCDs at the same time. Encourage your agency to set up a new data element in their personnel data file for SCD-Severance Pay if they have not already done so.
Refer to subchapter 6 in the Guide to Processing Personnel Actions handbook for determining creditable service. You may also refer to 5 U.S.C. 6303 (leave) and 3501-02 (RIF).
The primary difference in these three forms of SCDs has to do with military service. Individuals without military service will normally have the same SCD in all three situations. The following table shows the differences in crediting military service:
CREDITABLE MILITARY SERVICE
Leave RIF Severance
Not retired-military service under other than honorable or general discharge No Yes No
Not retired-military service with honorable or general discharge Yes Yes No
Retired military Depends upon Depends upon No circumstances of rank and retirement and circumstances of dates of civilian retirement and employment dates of civilian service
Military service when restoration rights are exercised Yes Yes Yes*
* Intervening military service between two periods of Federal civilian service is credited as civilian service when the employee exercises restoration rights from the Armed Forces.
Note: The reduction in force SCD with years subtracted for performance is used to determine retention standing.
14. IDENTIFY THE FOUR YEAR WINDOW TO BE USED IN CREDITING PERFORMANCE RATINGS IN RIF; VERIFY RATINGS THAT FALL WITHIN THE WINDOW; DETERMINE AMOUNT OF CREDIT TO BE GIVEN FOR RATINGS
(a) BASIC WINDOW TO CREDIT RATINGS
Employees receive additional service credit for retention based on the average of their three most recent ratings of record that were received during the 4-year window period prior to the date the agency issues specific reduction in force notices.
(b) CUTOFF DATE FOR PERFORMANCE RATINGS
The agency may also elect to use an earlier cutoff date for performance ratings. OPM's regulations require that the agency define the cutoff date on the basis of a specific number of days before the agency issues reduction in force notices. With a cutoff date, the 4-year window period begins on the date that the agency freezes ratings of record for purposes of reduction in force competition.
You should review the agency's performance management plan or (or other applicable reduction in force policy issuance) to see if the agency has established a cutoff date for performance ratings. If the agency has not set a cutoff date, the agency should consider whether to establish a freeze date and, if implemented, document this policy for the record.
For example, many agencies freeze ratings 30 to 60 days before issuing reduction in force notices. This usually will allow enough time, especially if a rating cycle is ending, for the agency to close out the appraisals and put them on the record for use them in determining employees' additional service credit for the reduction in force. Again, if the agency does not establish a cutoff date for performance appraisals, the default date is the day before the agency issues specific reduction in force notices. After the cutoff date, no new performance ratings will be put on record and used for reduction in force purposes.
(c) EFFECTIVE DATE OF RATING OF RECORD
You should also review the agency's performance management plan (or other applicable reduction in force policy issuance) to see if the available ratings are based on the ending date of the annual rating cycle rather than the date the rating of record was entered into the agency's records system.
For example, the agency's annual rating cycle for all employees ended on September 30, 1996. On November 15, 1996, one employee's rating was entered into the agency's system of records after all designated officials had signed the rating. On November 30, 1996, a different employee's rating was entered into the agency's system of records, again after all designated officials had signed the rating.
If the agency's ratings are based solely on the ending date of the annual rating cycle, the effective date of both ratings of record for purposes of the 4-year window period is September 30, 1996 (i.e., the rating cycle ended September 30, 1996).
If the agency's ratings are based on the date the rating of record was entered into the agency's records system, the effective date of one employee's rating for purposes of the 4-year window period is November 15, 1996, and the effective date of the second employee's rating is November 30, 1996 (i.e., the actual dates that the agency completed all processing of the employees' ratings). (d) VERIFY RATINGS
Once the agency determines the applicable 4-year window period for crediting employees' performance ratings of record, the agency must then review all ratings of record that fall within the window. The agency must verify the three most recent ratings in the 4-year window period of each employee in the competitive area.
Some agencies may be able to download this information from their Personnel Data File, while other agencies will have to collect the information manually. The agency should document each rating of record, and the ending date for the applicable rating period. For handy reference, most agencies will then enter the ratings information into a separate database covering the entire 4-year period.
The agency should verify the following types of information relating to employees' performance ratings of record:
o A hard copy of the ratings of record with all appropriate signatures in the employee performance file.
o The date used to determine whether the ratings of record are within the 4-year window.
o The summary level rating for each rating of record.
o The rating pattern for each rating of record (i.e., a five-level system, a two-level pass/ fail system, a three-level system, etc.)
The agency should inform its employees that its available ratings of record will be used to determine employees' retention standing in the reduction in force.
The agency should also provide its employees with the opportunity to supply copies of any ratings of record that are missing from the agency's official records. The agency must then use the employee's copy of the missing rating(s) of record, provided that the agency determines that the employee's documents evidencing the missing ratings are bona fide.
In collecting the performance ratings of record, the agency should take special care in identifying the current rating of record for each employee. The employee's current rating of record has a direct impact on the employee's potential bump and retreat rights in the reduction in force.
Example: An employee who has a current Level 2 performance rating of record (i.e., "Minimally Successful" or equivalent) has the potential right to retreat only to a position held by an employee with a current Level 2 or Level 1 rating of record. The employee's potential bump rights are not affected by the current Level 2 rating of record.
An employee who has a current Level 1 performance rating of record (i.e., "Unsuccessful" or equivalent) has no potential bump or retreat rights. However, the employee still competes for positions in the competitive level in first round reduction in force competition unless the agency issues the employee a final decision of separation under authority of 5 CFR Part 430 because of poor performance, or under authority of 5 CFR Part 752 because of an adverse action.
Because a Level 1 performance rating of record may lead to an action eliminating an employee from all reduction in force competition, the agency must flag any individuals who have received a proposed removal, demotion or reassignment due to poor performance.
If the final decision letter is issued before the effective date of the reduction in force, the employee will compete from the individual's new position (if the action is reassignment or demotion), or will be removed from the reduction in force completely (if the agency separates the employee because of poor performance). As noted in the preceding paragraph, this provision also applies to an employee who has received a final decision of separation resulting from an adverse action.
Note: Applicable Level 1 ratings (i.e., a rating of record of "Unsuccessful" or equivalent) are always used to determine employees' retention standing, with one exception. A Level 1 rating (i.e., an annual rating of "Unsuccessful" or equivalent) is deleted from an agency's records if:
(1) the employee received a Level 1 rating;
(2) the agency proposed separating or demoting the employee because of poor performance under authority of Chapter 43 of title 5 U.S.C.;
(3) the agency never carried out the separation or demotion action; and
(4) the employee has performed no lower than Level 3 (i.e., "Fully Successful" or equivalent) for at least 1 year after receiving the Level 1 rating.
(e) CALCULATE ADDITIONAL SERVICE CREDIT-BASIC VALUES
After the agency verifies employees' performance ratings of record, the agency then calculates the amount of additional service credit that employees receive for retention. The standard values are:
o 20 additional years retention service credit for each Level 5 rating ("Outstanding" or equivalent);
o 16 additional years retention service credit for each Level 4 rating ("Exceeds Fully Successful" or equivalent); and
o 12 additional years retention service credit for each Level 3 rating ("Fully Successful" or equivalent).
Employees do not receive any retention service credit for a Level 2 rating ("Minimally Successful" or equivalent), or for a Level 1 rating ("Unsuccessful" or equivalent) The agency must use the standard values for ratings put on record before October 1, 1997. Paragraph (f) below covers agencies' flexibilities to provide different amounts of additional service credit for retention for certain ratings that were put on record effective on or after October 1, 1997.
(f) CALCULATE ADDITIONAL SERVICE CREDIT-MIXED RATING PATTERNS
When preparing to calculate additional service credit for retention, the agency must also determine if more than one rating pattern exists within the competitive area. A "Mixed Rating Pattern" exists when the competitive area includes more than one rating pattern, and the agency is using these ratings under different rating patterns to determine employees' retention standing.
Example 1: A competitive area includes employees with ratings of record under both Performance Pattern A (a two-level Pass/Fail system consisting of Levels 3 and 1), and Pattern H (a five-level system consisting of Levels 5, 4, 3, 2, and 1). The three most recent ratings of record of some employees includes Pattern A, and the three most recent ratings of record of other employees includes Pattern H. The ratings may have been given in the employees' present agency, or in a different agency.
In this example, the agency must decide whether to change the value of Level 3 or higher ratings (Level 3 is "Fully Successful" or equivalent) which were approved on or after October 1, 1997, when giving additional service credit for reduction in force. The potential range of additional retention service credit for Level 3 or higher ratings is still limited to the standard values covered in paragraph (e) above (i.e., a minimum of 12 years to a maximum of 20 years for each rating). Also, at its discretion, the agency may use different values in separate reductions in force, including different values in separate competitive areas.
Example 2: A competitive area includes employees with ratings put on record after September 30, 1997, under both Performance Pattern A (a two-level Pass/Fail system consisting of Levels 3 and 1), and Pattern H (a five-level system consisting of Levels 5, 4, 3, 2, and 1).
For one option in this example, the agency may elect to use the default standard values for additional service credit based on performance (covered in paragraph (e) above) so that an employee under the two-level system always receives a maximum of 12 additional years of service credit for the Level 3 rating, while the employee under the five-level system always receives 12 additional years of service credit for the Level 3 rating, 16 additional years of service credit for a Level 4 rating, and 20 additional years of service credit for a Level 5 rating.
For a second option in this example, the agency may instead elect to provide different values for additional service credit based on performance. The agency may decide that an employee under the two-level system receives the maximum 20 additional years of service credit for the Level 3 rating, while the employee under the five-level system still receives 12 additional years of service credit for the Level 3 rating, 16 additional years of service credit for a Level 4 rating, and 20 additional years of service credit for a Level 5 rating. (g) CALCULATE ADDITIONAL SERVICE CREDIT-MODAL RATINGS
If there are employees in the competitive area with no ratings of record within the applicable 4-year window period, the agency must determine the "Modal Rating" in order to credit these employees with additional years of service credit for reduction in force competition.
The modal rating is based upon the employee's official position of record on the effective date of the reduction in force and the performance rating pattern associated with that position. In this case, the "Rating Pattern" refers only to ratings assigned by the agency in the most recent rating cycle used in the reduction in force.
The agency may establish the modal rating on the basis of the entire agency, the subagency, or the competitive area. Also, the agency must determine a modal rating for each rating pattern.
Example, a competitive area includes employees with ratings under Performance Pattern A (a two-level Pass/Fail system consisting of Levels 3 and 1), Pattern B (a three-level system consisting of Levels 5, 3, and 1), and Pattern H (a five-level system consisting of Levels 5, 4, 3, 2, and 1). An employee who has no ratings of record in the applicable 4-year period and whose current position is under Performance Pattern A receives additional retention service credit based solely on the modal rating for Pattern A. 15. COMPLETE REVIEW OF ALL EMPLOYEE RIF ESSENTIAL DATA
At this point, the agency should have carefully reviewed the following employee data:
o Title, series, grade of the employee's official permanent position of record.
o Position description number and competitive level to which assigned.
o Reduction in force SCD date.
o Veterans' preference eligibility for reduction in force competition.
o Performance ratings of record within the applicable 4-year window period.
The following reduction in force essential data still requires review/determination:
- Work schedule
- Appointment authority for excepted service employees
- Tenure
- Adjusted Service Computation Date (SCD). This is the reduction in force SCD as adjusted by the average of the last three performance ratings of record. The information should be entered on a database for input into the automated reduction in force program or input into the database used in establishing retention registers, if not using an automated reduction in force program. The adjusted reduction in force SCD is calculated automatically when performance data is uploaded into an automated reduction in force program.
It is important to note that all employee reduction in force essential data should be projected to the effective date of the reduction in force. The retention standing of the employee is based upon the effective date of the reduction in force, not when the reduction in force notices are issued or when the data is reviewed.
Data which needs to be projected to the effective date of the reduction in force includes:
o SCD (adjustment due to excessive LWOP/intermittent work schedule, etc.)
o Change in tenure (i.e., career conditional to career)
o Change in service (i.e., A conversion from an excepted service Veterans Readjustment Act (VRA) appointment to a competitive service appointment).
o Career ladder promotions (made before freezing of personnel actions).
o Change in preference eligibility (i.e., reservist turns 60/ military widow remarries).
o Any pay adjustments (e.g., within-grade-increases) that may affect benefits such as the amount of severance pay, or that may be reflected in documents such as the value of the employee's life insurance at the time of separation.
16. PROVIDE A DEFINITE TIME PERIOD FOR EMPLOYEES TO REVIEW AND UPDATE THEIR OPFs, RESUMES/OF-612's/SF-171s, PERFORMANCE RATINGS, AND OTHER ESSENTIAL RIF INFORMATION
Employees will have more confidence in the system if they know that data used in a reduction in force is accurate. It is imperative for agencies to do everything they can to ensure accuracy of the data.
It is highly recommended that the personnel office do everything it can to clean up and verify the accuracy of the data in "Official Personnel Folders" (OPF) before employees are asked to review this information.
If the records are in poor condition when the employees review it, they will become very skeptical as to whether personnel can do anything right - including running a reduction in force. If employees lack confidence in what "personnel is doing", a higher rate of appeals can be anticipated. Additionally, employees are likely to be more stressed and less productive during the waiting period prior to the reduction in force.
Many agencies send out an employee letter listing all of the reduction in force essential data they have on record for each employee. Employees are given an opportunity to review, question, and provide documentation as necessary for changes to the data. This data is best reviewed after employees have received training on the mechanics of reduction in force so they understand the data and fully realize its value and importance.
Many agencies encourage employees to review their OPFs so that employees know what information in the OPF is being used to determine their assignment rights. This may not always be practical with large numbers of employees or with employees at remote duty stations. Accommodations should be made for employees to review their OPF prior to the cutoff date for accepting qualification materials.
In some situations it may be easier (and more efficient) to take a group of OPFs to a work site and have all employees review at once while a member of personnel stands by to answer questions.
Employees should be encouraged to review/update their resume/OF-612/SF-171 in their OPF. They should be informed that information in their OPF will be used to make their assignment rights determinations in the RIF and it is essential that they have a current, complete resume/SF-171 on file. All licenses/certifications/etc., should be documented in their OPF.
Agencies should inform their employees which appraisals in their performance files will be used in the reduction in force. Employees should also be given an opportunity to supply any missing appraisals. Note: Only the three most recent annual appraisals within the applicable 4-year window period are used in reduction in force computations.
The agency should establish a firm cutoff date for acceptance of OPF and reduction in force-related information. The agency should provide employees with this information as far as possible in advance of the reduction in force. It may be less confusing to employees and easier for the personnel office to administer if the same cutoff date is used for accepting OPF and reduction in force-related information (i.e., performance appraisals, resumes/OF-612's/SF-171s, qualifications, etc.). That way, everything is due to personnel on the same date. Any materials submitted after the cutoff date should be date stamped and kept in a separate file or returned to the employee.
Agencies must hold firm on the cutoff date for receipt of missing performance appraisals and qualifications information. Any other information which affects an employee's retention standing (e.g., veterans' preference eligibility, a change in SCD, or a change in tenure not covered by a freeze on personnel actions) must be accepted right up until the effective date of the reduction in force.
17. DETERMINE ADMINISTRATIVE GUIDELINES/POLICY ON DISCRETIONARY ISSUES DEALING WITH RIF
(a) USE OF VACANCIES
Management has the right to decide whether some, all, or no vacancies will be used in the reduction in force. Employees do not have a right to vacancies in reduction in force competition unless the agency has voluntarily adopted a formal policy of using all vacant positions. To ensure fair and impartial treatment, it is best if management decides up front the policy on the use of vacancies in the reduction in force.
Management may also want to decide if the agency will offer vacancies in lieu of separation. This would apply to vacancies which remain unfilled after the reduction in force and which did not meet the definition of "available position" when determining assignment rights (i.e., an offer of a part-time position to a full time employee or offer a position below the three grade bump/retreat limit).
Management may also offer vacancies as an alternative offer for individuals who have been identified for a reassignment or change to lower grade. The "alternative" offer would have the same or lower representative rate than the position to which the employee is entitled. This is an offer in addition to the reduction in force offer which may allow the employee to remain at the same duty station or in the same line of work, but at a lower grade than the grade which they are entitled to under reduction in force procedures.
Management also must decide if it wants to offer vacancies of temporary positions in other competitive levels to individuals otherwise identified for separation. (Note: Employees have no assignment rights to occupied temporary positions in other competitive levels.)
(b) WAIVING QUALIFICATION REQUIREMENTS FOR VACANCIES
Waiving qualification requirements during a reduction in force applies only for placement into vacant positions. Waiving qualification requirements, if exercised, should be done with caution. Qualifications should only be waived when there is strong evidence that the individual can perform the duties of the position but lacks all of the qualification requirements. Positive education requirements cannot be waived. The agency should consider whether a decision to waive qualifications must be applied consistently to all vacancies.
(c) TIE-BREAKING PROCEDURES
Agencies should establish tie-breaking procedures in the event two employees have identical retention standing. If a decision has been made to use an automated system for running the reduction in force, a tie-breaking procedure (such as random number based upon the highest sum of employees' Social Security numbers) is usually already programmed into the system. Agencies will need to check the particulars of their reduction in force policy and their automated system.
For agencies which elect not to use an automated system, the agency must decide, and document how ties will be broken. Agencies may want to identify several ways to break ties and specify the order in which they will be used. Examples of potential tie breakers include:
o Years of service at the agency. o Rating on last performance rating of record.
o Length of time in present position or grade level. o Random number based upon last digit of social security number (the agency must decide whether to use the high or the low number).
(d) ASSIGNMENT RIGHTS FOR TENURE GROUP III AND EXCEPTED SERVICE EMPLOYEES
After release from their competitive level, tenure group III employees in the competitive service are subject to separation, unless the agency provides for bump in second round reduction in force competition. There is no authority for an agency to provide its group III employees with retreat rights.
All excepted service employees, regardless of tenure group, are also subject to separation after release from their competitive level unless the agency elects to provide for assignment rights in round two of reduction in force competition. At its option, the agency may provide its excepted service employees with both bumping and retreating rights.
Most agencies do not offer bump and retreat rights to either their released tenure group III employees, or to their released excepted service employees.
(e) TEMPORARY EMPLOYEES
Management has the option as to whether they will retain or release temporary employees while the agency is undergoing a reduction in force.
Temporary employees must be released before a competitive employee is released from the same competitive level. This does not mean that all temporary employees in all competitive levels must be terminated.
Competitive service temporaries are not covered by OPM's reduction in force regulations. However, certain excepted service temporary employees are covered by the reduction in force regulations and are competing employees.
Agencies often terminate temporaries prior to a reduction in force as a cost-savings measure and as a show of good faith to permanent employees that they are doing everything possible to avoid a reduction in force.
The decision to terminate temporaries should be based upon the circumstances of the reduction in force (i.e., budget) and the needs of the organization and not just a reflex reaction to having a reduction in force.
(f) REEMPLOYED ANNUITANTS
Reemployed annuitants serve at the will of the appointing officer and may be terminated at any time. At management's discretion, the reemployed annuitant may compete in the reduction in force or may be separated prior to the reduction in force.
Most agencies terminate reemployed annuitants rather than providing reemployed annuitants with reduction in force retention rights.
(g) "BUMPING" WITHIN SUBGROUP
This is another reduction in force "mechanic" option which is available to management. "Bumping" within a subgroup is similar to the retreat right, but does not require that the released employee previously held the position of the lower-standing employee. This option places maximum emphasis on total creditable service (i.e., seniority. However, the option also results in more displacement upon the organization conducting the reduction in force and, at this time, is seldom used by agencies.
(h) EXCEPTIONS TO THE REGULAR ORDER OF RELEASE
A released employee has the right to use annual leave in order to remain on the agency's rolls past the effective date of the reduction in force in order to obtain first eligibility for retirement, and/or to gain eligibility to carry health benefits into retirement.
An employee in a relocation situation (e.g., transfer of function, reassignment, realignment, change of duty station, etc.) has the same right to use annual leave past the effective date of separation by adverse action in order to obtain first eligibility for retirement, and/or to gain eligibility to carry health benefits into retirement.
Agencies should note that Section 653 of Public Law 105-277, which was approved on October 21, 1998, extended this option to members of the Senior Executive Service (SES).
The agency should decide if there are any situations which warrant a continuing or a temporary exception to the regular order of employees' release due to "undue interruption" of the agency's work. In order to provide for continuity of operations, the agency should consider the impact if a key competitive level, and/or essential employee, is reached for a reduction in force action. Neither a continuing exception (which lasts more than 90 days) nor a temporary exception (which lasts 90 days or less) allow an agency to avoid carrying out a reduction in force action. An exception simply provides the agency with the option of postponing the action until a later date because of workload considerations.
The agency should note that a higher-standing employee may appeal the agency's use of an exception to retain a lower-standing employee based upon undue interruption.
The agency should also decide whether to use a temporary exception to retain employees:
o On approved sick leave (the usual 90 day limit does not apply).
o In a pay and/or duty status in order to satisfy a Government obligation to the employee (the usual 90 day limit does not apply).
o For up to 90 days when the temporary retention does not impact on a higher-standing employee (e.g., the use of an exception to retain an employee with a notice of separation by reduction in force for up to 90 days past the effective date of the reduction in force in a leave-without-pay-status in order to assist the employee in outplacement initiatives).
18. FREEZE ALL PERSONNEL ACTIONS WHICH IMPACT EMPLOYEES' RETENTION STANDING
At a minimum, the following personnel actions should be frozen:
o New hires.
o Permanent position changes (i.e., promotions, reassignments, etc.).
o Work schedule changes.
o Reclassification actions.
o Conversion actions (i.e., temporary to career-conditional).
Personnel actions which do not affect an employee's retention standing (i.e., termination of temporary promotion, detail, separation, etc.) or those actions which do affect an employee's standing, but are mandated through regulation (i.e., conversion to career tenure, change in veterans' preference, etc.) should continue to be processed.
19. IDENTIFY POSITIONS TO BE ABOLISHED
As a first step in the process, management should identify both the positions to be abolished, and the positions that are included in the new or streamlined organization. These decisions are evidenced in "manning documents" (also called "personnel documents" or "staffing plans" in some agencies), which are the reference points for any eventual reduction in force actions. Also, these documents are essential in justifying the agency's actions if a separated or downgraded employee later files a reduction in force appeal or grievance and alleges that a job abolishment decision is not bona fide (e.g., a former employee alleges that a job abolishment decision is based on a nonorganizational reason such as reprisal or personal animosity rather than because of a reorganization).
This can be a difficult step for managers because people are now associated with the abolishments (e.g., a decision to contract out a data collection function will directly result in the abolishment of positions held by several of the manager's long-term employees). At this step, management should be reminded that, because reduction in force competition is based on four impartial retention factors, the employees who occupy the abolished positions are not necessarily the individuals who will actually be reached for separation or downgrading actions. It is nearly impossible to tell how these individuals will fare until the reduction in force is run.
It is recommended that positions be identified by title, series, grade, position number, organization, name of incumbent and social security number (if available to the manager). It is also recommended that the reduction in force team have written documentation on this from the managers to preclude any misunderstandings later on in the process.
20. OBTAIN COPIES OF PAY SCALES AND PREPARE REPRESENTATIVE RATE CHART
Representative rates are needed in order to determine assignment rights in conducting the reduction in force. The representative rates in effect on the effective date of the reduction in force are the appropriate ones to use.
If there are prevailing rate employees on different rate schedules within the same competitive area, you will need to determine if the automated reduction in force program you are using can accommodate more than one rate schedule for the same pay plan.
21. IDENTIFY LINES OF PROGRESSION FOR OCCUPATIONS IN THE COMPETITIVE AREA
Again, in order to determine assignment rights in round two of reduction in force competition, the agency must identify the normal line of progression for all occupations in the competitive area. Additional work is usually required for the agency to determine the normal line of progression for Federal Wage System (FWS) positions. The reduction in force team should identify the normal lines of progression for an occupation by series, grade, and pay system. The team will also later need to input this information into the "AUTORIF" program, if the agency uses this option.
Source documents for determining lines of progression include:
o Introduction to Position Classification Standards. o Agency Staffing Plan. o Position Management Plan. o Organizational charts. o Merit Promotion Plan.
22. PREPARE RETENTION REGISTERS AND LISTING OF VACANCIES TO BE USED AS RIF PLACEMENT OFFERS
When preparing the retention registers, be sure to have some way to identify:
o Individuals in temporary positions (placed below the competitive level).
o Individuals on temporary assignments to continuing positions, (i.e., promotion NTE) (placed below the competitive level).
o Individuals on temporary assignments to temporary positions.
o Individuals with restoration rights based upon service in the Armed Forces, who during the period of restoration compete in reduction in force on the basis of higher retention standing than other employees in the same tenure group and subgroup.
o Individuals with current performance ratings of Level 2 ("Minimally Successful" or equivalent) or Level 1 ("Unsuccessful" or equivalent).
o Individuals who have received a final decision of removal under authority of 5 CFR Part 430 based upon Level I ("Unacceptable" or equivalent) performance, or under authority of 5 CFR Part 752 based upon an adverse action. (In both situations, the employees are placed below the competitive level and do not compete for retention under OPM's reduction in force regulations).
The list of vacancies to be used as reduction in force placement offers should be identified and input into the automated system (if one is used). In identifying the vacancies, the following information (at a minimum) should be included:
o Position title, series, grade. o Position description number. o Competitive level. o Organization. o Duty station. o Temporary or permanent position. o Work schedule.
23. CONDUCT MOCK RIFS TO IDENTIFY RETENTION ERRORS AND PROVIDE OUTPLACEMENT BENEFITS
A mock reduction in force can be extremely valuable in identifying and correcting problems in the records used in the reduction in force before these problems impact the organization or the employees.
Often agencies use a mock reduction in force as a tool to help them assess the personnel costs of the reduction. Based upon the results of the mock reduction in force, agencies can calculate the costs and projected savings.
Items to include in calculating the costs of the reduction in force include severance pay, unemployment insurance, lump sum annual leave, relocation costs, retained grade and pay, and personnel costs including overtime expenditures in running the reduction in force.
Some automated reduction in force programs make it very easy to do many different scenarios while others will require more work on the part of the reduction in force team.
If the agency conducts a mock reduction in force, the agency must decide whether to share the results with the work force. For example, an employee identified for separation in a mock reduction in force could then be given priority for continuing vacant positions in the agency under the Career Transition Assistance Plan program.
Also, a mock reduction in force may serve as the basis for the agency issuing the employee a "Certification of Expected Separation" (CES) up to 6 months before the employee is likely to be actually separated from the agency. The CES allows the employee to receive priority for other positions in the agency by early registration on the agency's reemployment priority list. The CES also entitles the employee to outplacement assistance and, in some states, retraining benefits through the applicable state dislocated worker unit, as designated or created under title III of the Job Training Partnership Act.
If the agency shares the results of a mock reduction in force, the agency should advise employees that the assumptions used to conduct the mock reduction in force, as well as employee's relative retention standing, may change before an actual reduction in force takes place.
The agency should consider the advantages sharing the results of a mock reduction in force against the disadvantages of releasing the results. Things to consider include:
o Need to motivate individuals to begin considering other options.
o Amount of change likely before the "real" reduction in force is run (a mock reduction in force may needlessly upset some people or may give others a false sense of security).
o Impact on productivity.
o The readiness of the work force to deal with change.
o The need to provide employees with as much information as early as possible.
o The possibility that employees will perceive the mock reduction in force as an exercise for managers to target employees for separation.
o The possibility that a later real reduction in force will result in different outcomes for some employee, because of factors such as the total number of positions that were abolished, employee attrition, successful career transition placements, etc.
Based upon the results of the mock reduction in force, the reduction in force team may begin making entitlement determinations for potentially affected employees (i.e., eligibility for discontinued service retirement, the FERS MRA + 10 option), severance pay, retained grade or retained pay). Doing these determinations now will save a lot of time down the road when you are trying to get the reduction in force letters prepared and issued.
24. CONDUCT ROUND ONE-IDENTIFY EMPLOYEES RELEASED FROM THEIR COMPETITIVE LEVEL
"Round One" of reduction in force competition identifies which employees are reached for release from their present position. ("Round Two" competition determines whether the released employee has bump or retreat rights to a position in a different competitive level.)
In order to conduct "Round One" competition, you will need the following:
o All employees by competitive levels in retention standing order.
o Identification of abolished positions.
After Round One is completed, the reduction in force team must determine whether employees released from the competitive level have assignment rights to other positions.
Some released employees do not have assignment rights in Round Two competition (e.g., excepted service employees, tenure group III employees, or employees with a current Level 1 annual performance rating of record ("Unsuccessful" or equivalent). These released employees will be separated on the effective date of the reduction in force.
25. SEPARATE REEMPLOYED ANNUITANTS, TEMPORARY EMPLOYEES; RETURN STATUS EMPLOYEES ON DETAILS, TEMPORARY PROMOTIONS, ETC., TO THEIR PERMANENT POSITION OF RECORD AS NECESSARY
If a decision was made to separate reemployed annuitants rather than have them compete in the reduction in force, the separation should occur prior to the effective date of the reduction in force.
Based upon round one competition, before any competing employee is released from a competitive level, all noncompeting employees must be released from that same competitive level. This means if you release a competing employee in round one, all non-competing employees must be terminated (if temporary) or returned to their permanent position of record (if temporarily promoted or temporarily reassigned) before the effective date of the reduction in force.
26. DETERMINE QUALIFICATIONS OF AFFECTED EMPLOYEES
Once employees have been identified for release from their competitive level and if they have a higher retention standing, they may have assignment rights to other positions. In the process of determining whether the employee has rights to another position, qualifications for available positions must be determined. In newer automated programs (including"AUTORIF"), qualification determinations are made up front and input into the system. In a second type of program (such as the older "RIFRUNNER" program developed by the Department of the Army), individual qualification determinations are be made as the employee is identified for placement (based upon overall seniority). Newer automated programs allow you to select either approach.
In a front loading program, qualification determinations need to be made for all possible placements within the competitive area. If using the second type of program, qualification determinations are fewer, but made at the time the employee comes up for placement consideration. Qualification determinations then would be limited to those positions occupied by individuals with lower retention standing.
Regardless which software is used (if any), it will save time if some information regarding qualifications is gathered prior to beginning Round Two. An employee worksheet which identifies positions held and any special qualifications will speed up the process when it is time to do a full qualifications assessment.
If several individuals are involved in determining qualifications, make certain that there is consistency in the way the qualification requirements are interpreted and applied. All facts used to determine qualifications should be documented and made part of the reduction in force files for possible reference in future appeals.
27. IDENTIFY EMPLOYEE ASSIGNMENT RIGHTS-ROUND TWO
If you are using an automated system, all available placement options will be identified. Care must be taken to eliminate those individuals who do not have assignment rights in Round Two.
Displaced individuals are considered for available positions in the order of their overall retention standing.
In conducting Round Two (as in conducting round one), complete documentation is essential. Automated systems do an excellent job of creating a "paper trail" and prompting the specialist to document when necessary.
The types of decisions you will want to document (in case the actions are later challenged) include:
o Qualification determinations (including physical qualifications determinations).
o Exceptions to the regular order of release (whether mandatory or discretionary - including "undue interruption").
o Waiver (or lack of waiver) of qualifications.
o Denial of retreat rights.
If an automated system is not being used, it is desirable to document or be in a position to identify all available positions which were considered but not offered with the reason for non-placement documented.
After Round Two is completed, agencies may be required to summarize the impact of the reduction in force on women, minority groups, and disabled employees. Some automated reduction in force programs readily produce this type of report. This information would then be available to any appropriate offices of the agency (e.g., the Equal Employment Opportunity Office).
28. COMPLETE NOTIFICATION REQUIREMENTS WHEN 50 OR MORE EMPLOYEES ARE IDENTIFIED FOR SEPARATION
o Notification required when 50 or more in a commuting area are separated:
Department of Labor
o Notification required when 50 or more in a competitive area are separated:
1. State Dislocated Worker Unit 2. Local Chief Governmental Official(s) 3. OPM
Notification should include, at a minimum:
1. Number of people identified for separation by geographic location.
2. Effective date of the separation.
3. Reason for separation.
4. Point of contact for additional information.
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