Understanding the “Retention Factors” for Federal Reductions in Force (RIFs)

When federal agencies conduct reductions in force (RIFs), agency leaders cannot simply select the employees who will be impacted. Instead, they must conduct all layoffs, demotions, or furloughs in accordance with the federal RIF regulations. These regulations establish both procedural and substantive requirements for federal reductions in force, and they provide important protections for federal workers. Learn more from our knowledgeable Maryland employment attorney.

When Federal Agencies Must Comply with the Federal RIF Regulations

While the federal RIF regulations establish several important protections for federal workers, one of the most important protections is the obligation to give due consideration to the federal “retention factors” during the RIF process. As the Office of Personnel Management (OPM) explains:

“When an agency must abolish positions, the RIF regulations determine whether an employee keeps his or her present position, or whether the employee has a right to a different position. . . . The law provides that the RIF regulations must give effect to four retention factors . . . .”

The RIF regulations apply whenever a federal agency reorganizes or downsizes its workforce. As the OPM goes on to explain, federal agencies must use the RIF regulations, “before separating or demoting an employee because of an organizational reason such as reorganization, including lack of work, shortage of funds, . . . or the exercise of certain reemployment or restoration rights.” The RIF regulations also apply when federal agencies conduct furloughs of more than 30 calendar days or more than 22 discontinuous work days.

Applying the “Retention Factors” During a Federal Reduction in Force (RIF)

When conducting reductions in force, federal agencies must “give effect” to the four “retention factors”—as noted in the OPM quote above. So, what are the four “retention factors,” and how do they protect employees during the RIF process?

1. Tenure of Employment (Type of Appointment)

The first “retention factor” is tenure of employment. This is based primarily on an employee’s type of appointment within the competitive service. When an agency is preparing to conduct a reduction in force, it must separate its competitive service employees into three groups based on their type of appointment:

• Group I – Group I includes career employees who are not currently on probation.
• Group II – Group II includes career-conditional employees as well as career employees who are on probation due to a new appointment.
• Group III – Group III includes employees who have term appointments and other non-status appointments with the agency.

Based on this “retention factor” alone, employees in Group I would be the least at risk of losing their jobs or being furloughed. However, agencies must consider all four of the “retention factors” when making RIF-related employment decisions, and they must ultimately go through two rounds of RIF competition. As explained by the OPM:

“In ‘First Round RIF Competition,’ the agency applies the four retention factors to a competitive level to identify which employee has the lowest retention factor. The agency may use RIF procedures to release the lowest-standing employee from the competitive level.

“In ‘Second Round RIF Competition,’ the agency again applies the four retention factors, this time to determine whether a released employee has a bump or retreat right to a position in a different competitive level that is held by an employee with even lower retention standing.”

If it is not already abundantly clear, the federal RIF regulations are extremely complicated, and, as a federal employee, it can be difficult to understand your rights during the process. If you have questions or concerns, you should not hesitate to consult with an experienced Maryland employment attorney.

2. Veterans’ Preference

The second “retention factor” is employees’ entitlement to veterans’ preference. Here too, federal agencies must separate their employees into three groups—this time labeled as Subgroups AD, A, and B:

• Subgroup AD – Subgroup AD includes veterans who have a compensable service-connected disability of 30 percent or more.
• Subgroup A – Subgroup A includes veterans who are eligible for preference but who do not fall into Subgroup AD. It also includes eligible spouses, former spouses, and parents.
• Subgroup B – Subgroup B includes all nonveterans and other employees who are not eligible for inclusion in Subgroup AD or Subgroup A.

If you are not clear on the Subgroup into which you fall, or if you believe that your agency has placed you into the wrong subgroup based on your veteran status, you should consult with a Maryland employment attorney promptly in this scenario as well.

3. Total Creditable Federal Civilian and Uniformed Service

The third “retention factor” is total creditable civilian and uniformed service. After applying the veteran’s preference rules, federal agencies must rank their employees within each subgroup “by their respective service dates.” The more total creditable service an employee has, the more preference the employee receives during the RIF process.

4. Performance Ratings

The final “retention factor” is performance. As the OPM explains, “[e]mployees receive extra retention service credit for performance based upon the average of their last three annual performance ratings of record received during the 4‑year period prior to [the RIF].”

This also quickly gets very complicated. As briefly summarized by the OPM:

“Most employees receive performance ratings of record under one of eight possible summary rating patterns required by paragraph 5 C.F.R. 430.208(d) of the performance appraisal regulations . . . . The RIF regulations cover situations when all employees in the competitive area are covered by a single rating pattern . . . as well as situations when employees in the competitive area are covered by more than one summary rating pattern . . . .”

When preparing to go through a RIF as a federal employee, one of the most important steps you can take to protect yourself is to arm yourself with as much information as possible. Once again, if you need help understanding where you fall within the RIF priority scheme, you should not hesitate to seek advice from an experienced attorney.

Schedule a Confidential Consultation with a Maryland Employment Attorney Today

If you are preparing to go through a reduction in force—or if you have recently lost your job during a federal RIF—Maryland employment attorney Jay Stafford and his team can explain everything you need to know. If your federal agency has violated your rights, he can also help you take appropriate legal action. To schedule a confidential consultation, please call 410-514-6099 or tell us how we can reach you online today.