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A Federal Reduction in Force (RIF) is a formal process used by federal agencies when positions must be eliminated or employees must be separated or downgraded for organizational reasons such as reorganization, lack of work, shortage of funds, or changes in agency needs.
Unlike private-sector layoffs, federal RIF actions are governed by specific federal laws and regulations. The U.S. Office of Personnel Management (OPM) provides guidance to agencies, while the primary RIF regulations are found in Title 5, Code of Federal Regulations, Part 351.
For federal employees facing possible workforce reductions, understanding how the RIF process works, what factors can affect retention, and what benefits or transition options may be available can help with informed planning.
In February 2025, President Donald Trump issued an executive order directing federal agencies to begin preparing for large-scale workforce reductions and reorganizations. OPM and the Office of Management and Budget (OMB) subsequently issued guidance requiring agencies to prepare and submit workforce reduction and reorganization plans. The initial deadline for agency plans was March 13, 2025.
The workforce changes that followed included a combination of hiring restrictions, voluntary separation programs, attrition, reorganizations, and Reduction in Force actions.
It is important to distinguish between these different actions. Not every federal employee who left government service during the workforce reductions was separated through a RIF.
According to OPM workforce data, federal employment declined substantially during 2025 as a result of several workforce-shaping initiatives, including hiring restrictions, early retirement incentives, reductions in force, and the Deferred Resignation Program.
Because workforce policies and agency actions can change, federal employees should review their individual notices and consult their agency’s human resources office before making decisions about retirement, separation, benefits, or other employment options.
A Reduction in Force, commonly called a RIF, is a formal federal workforce action used when an agency needs to eliminate positions or separate or downgrade employees for organizational reasons.
OPM explains that RIF procedures can apply when an agency faces circumstances such as:
The purpose of the RIF regulations is to determine which employees are affected and whether an employee may have rights to another position or other forms of placement.
A RIF is different from an employment action based on an individual’s misconduct or poor performance. RIF procedures are designed for organizational reasons rather than personal performance issues.
A federal RIF generally involves several stages. The exact process can vary depending on the agency, position, employee status, and circumstances surrounding the workforce reduction.
The agency first determines which positions, functions, or organizational areas may be affected by a reorganization or workforce reduction.
Agencies have authority to make organizational decisions, including determining which positions may be abolished and when a RIF is necessary.
Employees are generally evaluated within the applicable competitive area and competitive level.
A competitive level groups positions that are sufficiently similar for RIF purposes. The agency then establishes retention registers to determine which employees have greater or lesser retention standing.
Federal RIF rules consider several factors when determining an employee’s retention standing.
These include:
These factors are applied under the applicable RIF regulations and agency procedures.
Employees affected by a RIF generally receive written notice before the action takes effect.
The standard notice period is generally at least 60 days, although exceptions and special circumstances can apply. OPM provides specific guidance and templates concerning RIF notices, including circumstances in which an agency may seek approval for a notice period of less than 60 days.
Employees should carefully review the specific notice they receive because it may contain important information about the proposed action, effective date, assignment rights, benefits, and appeal or grievance procedures.
RIF decisions are not simply based on seniority.
Federal retention standing generally takes several factors into account.
An employee’s appointment type and tenure group can affect retention standing.
Veterans’ preference can affect an employee’s position on the retention register under the applicable federal rules.
Total creditable federal civilian and qualifying uniformed service can affect retention standing.
Performance ratings are also one of the factors used under federal RIF regulations.
Because the interaction between these factors can be complicated, employees should review their individual records and RIF documentation rather than assuming that years of service alone determine the outcome.
Some federal employees affected by a RIF may have assignment rights that are commonly described as bumping or retreating.
These rights can allow an employee to be assigned to another position in certain circumstances rather than being immediately separated.
However, these rights depend on the employee’s circumstances, competitive level, grade structure, qualifications, and applicable RIF rules.
OPM provides detailed guidance on bumping, retreating, competitive levels, and assignment rights.
A RIF is not necessarily the only workforce-reduction tool available to a federal agency.
Depending on agency authority and employee eligibility, agencies may use alternatives such as:
These programs have different eligibility requirements and consequences.
For example, OPM identifies VERA and VSIP as tools that agencies may use as part of workforce restructuring.
Employees should review the terms of any voluntary separation or retirement offer carefully before accepting it.
A RIF can affect an employee’s pay, leave, insurance, retirement benefits, and other federal employment benefits.
The specific consequences depend on whether the employee is separated, downgraded, reassigned, or otherwise affected by the workforce action.
OPM provides guidance covering areas such as:
For example, OPM states that eligible separated civilian employees who earn annual leave under Title 5 are generally entitled to a lump-sum payment for accrued, accumulated, and restored annual leave.
Because benefits can vary based on employment status and individual circumstances, employees should confirm their situation with their agency’s human resources office and the appropriate federal benefits resources.
Federal employees affected by workforce reductions may have access to career transition programs.
One important program is the Career Transition Assistance Plan (CTAP).
Agencies are required to provide assistance to certain surplus and displaced employees, including services designed to help affected employees find other employment and, in qualifying circumstances, selection priority for certain competitive-service vacancies.
Employees may also qualify for other placement or priority programs depending on their agency and employment circumstances.
Federal employees may have rights to challenge a RIF when they believe the action was not carried out in accordance with applicable law or regulations.
However, the applicable appeal process has changed.
Effective September 2, 2026, OPM revised its regulations so that RIF appeals covered by the new rules are transferred from the Merit Systems Protection Board (MSPB) to OPM. The revised procedures apply to RIF actions for which the agency issued the specific RIF notice on or after September 2, 2026.
This means employees should not automatically assume that an RIF appeal should be filed with the MSPB.
The appropriate procedure can depend on the date of the RIF notice, the employee’s status, the type of action, and other circumstances.
Employees who believe their RIF was improperly handled should review their notice and seek appropriate guidance regarding the applicable appeal or grievance process.
The outcome of a RIF can vary.
Depending on the circumstances, an affected employee may:
The employee’s individual RIF notice and agency procedures are important in determining what happens next.
A workforce reduction can raise important retirement questions, particularly for employees who are already eligible or close to becoming eligible for retirement.
Employees may need to consider questions such as:
These decisions can have long-term financial consequences. Employees should review the specific terms of their situation before making an irreversible retirement or separation decision.
If you receive a RIF notice, consider taking the following steps:
Review the effective date, position information, proposed action, and any information about assignment rights or appeal procedures.
Your agency’s human resources office can provide information about the specific RIF action, applicable procedures, benefits, and available workforce programs.
Check your tenure, service history, veterans’ preference, performance information, and other records that may affect your retention standing.
If retirement is an option, carefully review how the decision could affect your federal retirement and benefits.
Ask whether CTAP, reassignment, other placement programs, or career transition resources may apply to your situation.
If you believe an agency did not properly follow applicable RIF procedures, review the instructions in your notice and determine which appeal, grievance, or review process applies.
RIF stands for Reduction in Force. It is a formal process federal agencies use when positions must be eliminated or employees must be separated or downgraded for certain organizational reasons.
No. A RIF is generally based on an agency’s organizational needs rather than an employee’s individual misconduct or performance.
Federal RIF regulations generally provide for at least 60 days of written notice, although exceptions can apply. Employees should rely on the specific notice issued by their agency.
No. Federal RIF retention standing considers factors including tenure, veterans’ preference, creditable service, and performance ratings.
In some circumstances, an agency may reassign an employee or an employee may have assignment rights under the applicable RIF regulations. The availability of these options depends on the individual circumstances.
Potential review or appeal rights may be available when an employee believes a RIF was not conducted according to applicable requirements. The correct process depends on the circumstances and the applicable rules.
As of September 2, 2026, OPM’s revised regulations provide for OPM to handle certain RIF appeals that were previously handled by MSPB.
Depending on eligibility and individual circumstances, federal employees may have access to benefits or programs involving severance, retirement, health insurance, life insurance, accrued leave, career transition assistance, and other federal employment benefits.
A Federal Reduction in Force can create significant uncertainty for federal employees and their families. Understanding how RIF procedures work, what factors may affect retention, and what benefits or transition programs may be available can help employees make more informed decisions.
If you receive a RIF notice or are considering retirement or separation during a workforce reduction, review your agency’s information carefully and consider speaking with qualified professionals who can evaluate your individual circumstances.
Federal Employee Advisor Network provides educational resources designed to help federal employees better understand federal employment, retirement, benefits, and workforce-related topics.
This article is provided for general educational and informational purposes only. It is not legal, tax, investment, retirement, or individualized financial advice, and it does not create an advisor-client relationship. Federal workforce policies, RIF procedures, benefits, and appeal rules may change. Eligibility and outcomes depend on individual circumstances and applicable federal regulations. Federal employees should consult their agency’s human resources office and, where appropriate, qualified legal, tax, retirement, or financial professionals before making decisions based on their situation.
