What do these words have in common? They could mean you’re out of a job, today, tomorrow or next week. Although much has been written about all three, it is important to be reminded that the once secure federal job is now on par with a civilian corporation, wherein you could be out on the street, even if you think your job is important. I come from the corporate world, and I found myself “Merged Out” four times. It is not secure, but it is survivable.
Federal Government and its employees, through the Department of Government Efficiency (DOGE).
And the babies at congress are at it again. They are our representatives but seem to represent only themselves. A shutdown is imminent. Our phones and emails have been ringing off the hook. ‘What do we know?” “Can you tell if my or my department will be cut?” “Help me out of here!”
First, let’s all calm down here. No one knows what is going to happen, but movements, yes, are already afoot, by both sides.
This is not the first time in our history that the gages have been rattled, Jimmy Carter and Ronald Reagan both had plans to cut government. Reagan created the Grace Commission the Biden Administration had a program. Is this time different? Time will tell.
US federal workers ‘nervous’
Federal employee unions, such as American Federation of Government Employees, which represents 750,000 federal workers, is also looking to Congress, see this movement as a David vs Goliath, are lining up lawyers and preparing public campaigns to try to stave off any mass firings, but they’re hoping Republican Congress members will join Democrats in defending their importance to local economies, health and safety, union members and government watchdogs tell Reuters.
The U.S. government is the country’s largest employer. While workers are concentrated in Washington, D.C., and nearby Maryland and northern Virginia, some of the greatest concentrations of federal workers can be found in areas like southern Oklahoma and northern Alabama, which are represented by Republicans in the House.
Let’s look at what DOGE will try to accomplish and why?
- Government Accountability Office report on 10 “outdated or obsolete” government IT that cost the federal government about $337 million a year to operate.
- “The government runs on ancient computers & software. Needs an upgrade!”
- Experts familiar with previous government efficiency task forces warn that DOGE may run into many of the same challenges as its predecessors when it comes to making its recommendations a reality.
- GAO’s findings that 18 agencies made $247 billion in improper payments in fiscal 2022.
Remember, every department, agency, component, grant or acquisition program has a constituency that will fight to maintain it. Each piece also has patrons in Congress, which has a variety of statutes it can invoke to maintain federal operations. Several powerful Unions are in your corner. So, the day after inauguration, do this:
Get up, make your bed and go to work. Your job is unlikely to disappear right away, if at all.
So, now, we have a couple scenarios to consider:
- Your position is eliminated, but you wish to continue working for the federal government.
- Your positions are eliminated, you have earned a retirement, or early retirement, and you wish to leave your federal employment.
- You have been employed for 6 or 7 years, and you really don’t care.
Let’s look at what the federal government MUST DO, in the event of RIF:
If a federal government employee is facing a Reduction in Force (RIF), the primary requirement is that the agency must provide at least 60 days written notice before taking any action, allowing the employee to review their personnel records and understand their potential re-employment rights within the agency; additionally, affected employees may be entitled to benefits like severance pay, continued health insurance, and the ability to appeal the decision to the Merit Systems Protection Board (MSPB) if they believe the RIF process was not followed properly.
Key points about federal RIFs for employees:
- Notice period:
60 days advance notice is mandatory before a RIF action occurs.
- Review rights:
Employees must be given the opportunity to review their personnel records and understand how their retention standing is calculated.
- Priority placement:
Agencies may have programs to place affected employees in other available positions within the agency before resorting to termination.
- Benefit continuation:
Depending on the situation, employees may be eligible for continued health insurance coverage and other benefits like unused leave.
- Appeal process:
If an employee believes the RIF decision was unfair, they can appeal to the MSPB
What are your options:
- Voluntary Early Retirement Authority (VERA)
Description
Voluntary Early Retirement Authority (VERA) allows agencies that are undergoing substantial restructuring, reshaping, downsizing, transfer of function, or reorganization to temporarily lower the age and service requirements in order to increase the number of employees who are eligible for retirement. The authority encourages more voluntary separations and helps the agency complete the organizational change needed with minimal disruption to the work force. By offering these short-term opportunities, an agency can make it possible for employees to receive an immediate annuity years before they would otherwise be eligible.
An agency must request VERA and receive approval from the Office of Personnel Management (OPM) before the agency may offer early retirement to its employees. The approval from OPM will stipulate a period of time during which the option will remain available. Agencies such as the Department of Defense that have been granted agency-specific VERA are not required to seek OPM approval for their use of this option.
Employee Coverage
Voluntary Early Retirement offers apply to employees covered under both the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS). When an agency has received VERA approval from OPM, an employee who meets the general eligibility requirements may be eligible to retire early. The employee must:
- Meet the minimum age and service requirements –
- At least age 50 with at least 20 years creditable Federal service, OR
- Any age with at least 25 years creditable Federal service.
- Have served in a position covered by the OPM authorization for the minimum time specified by OPM (usually 30 days prior to the date of the agency request);
- Serve in a position covered by the agency’s VERA plan; and
- Separate by the close of the early-out period.
Effect of Early Retirement on Annuity
Employees considering early retirement must consult with their human resources office and follow agency procedures to receive an annuity estimate and obtain advice specific to their personal situation.
There is no annuity reduction in FERS for employees who retire on an early voluntary retirement under age 55. A FERS transferee with a CSRS component in his/her annuity, who retires before age 55, will have the CSRS portion of the payable annuity reduced by one-sixth of one percent for each full month he/she is under age 55. No reduction will be applied to the FERS component of the annuity.
A FERS annuity supplement is payable to an employee who has completed at least one calendar year of FERS service when he/she reaches Minimum Retirement Age (MRA). MRA is age 55 to 57, depending on date of birth. The annuity supplement is payable until eligibility for Social Security begins at age 62, subject to an earnings limitation.
Voluntary Separation Incentive Payments (VSIP)
Description
The Voluntary Separation Incentive Payment Authority, also known as buyout authority, allows agencies that are downsizing or restructuring to offer employees lump-sum payments up to $25,000 as an incentive to voluntarily separate. When authorized by the Office of Personnel Management (OPM), an agency may offer VSIP to employees who are in surplus positions or have skills that are no longer needed in the workforce who volunteer to separate by resignation, optional retirement, or by voluntary early retirement, if approved. By allowing employees to volunteer to leave the Government, agencies can minimize or avoid involuntary separations through the use of costly and disruptive reductions in force (RIFs). Agencies such as the Department of Defense that have been granted agency-specific VSIP authority are not required to seek OPM approval for their use of this option.
Employee Coverage
When an agency has received approval from OPM to offer VSIPs, any employee (as defined in 5 U.S.C. 2105) who meets this general eligibility requirements may receive an offer. The employee must:
- Be serving in an appointment without time limit.
- Be currently employed by the Executive Branch of the Federal Government for a continuous period of at least 3 years.
- Be serving in a position covered by an agency VSIP plan (i.e., in the specific geographic area, organization, series and grade).
- Apply for and receive approval for a VSIP from the agency making the VSIP offer; and
- Not to be included in any of the ineligibility categories listed below.
Employees in the following categories are not eligible for a VSIP:
- Are reemployed annuitants.
- Have a disability such that the individual is or would be eligible for disability retirement.
- Have received a decision notice of involuntary separation for misconduct or poor performance.
- Previously received VSIP from the Federal Government.
- During the 36-month period preceding the date of separation, a service performed for which a student loan repayment benefit was paid or is to be paid.
- During the 24-month period preceding the date of separation, performed service for which a recruitment or relocation incentive was paid, or is to be paid; and
- During the 12-month period preceding the date of separation, performed service for which a retention incentive was paid, or is to be paid.
Computation of Incentive Payment
An agency computes a Voluntary Separation Incentive Payment on the basis of the lesser of:
- An amount equal to the amount of severance pay the employee would be entitled to receive, as computed under 5 U.S.C. 5595(c), without adjustment for any previous payment made; or
- An amount determined by the agency head, not to exceed $25,000.
The amount that the employee actually receives is less than the amount determined using the above computations because of the deduction of taxes, including Federal, state, social security, and Medicare, as appropriate.
Federal disability retirement requirements:
Service requirement:
Must have at least 18 months of federal civilian service under the Federal Employees Retirement System (FERS).
Disability development:
The disability must have developed or worsened while employed in a federal position.
Medical documentation:
Comprehensive medical documentation from a qualified physician is necessary to prove the severity of the disability and its impact on job performance.
Inability to perform job duties:
The disability must prevent the employee from performing at least one major function of their current job.
Accommodation attempts:
The agency must demonstrate that they have explored all reasonable accommodation options to allow the employees to continue working in their current position.
Application timeframe:
An application for disability retirement must be submitted within a specific time frame, usually within one year of separation from the federal service.
Income:
- 60% of your current salary, year one.
- 40% of your current salary, year two
- Regular earned retirement, year three.
Termination:
A federal government retirement pension, after 5 years of employment, that can be drawn at age 62 refers to the “Federal Employees Retirement System (FERS)” where you become eligible to receive a pension benefit at age 62 if you have completed at least 5 years of federal service, though the amount will be calculated based on your “high-3” average salary and years of service, potentially resulting in a smaller pension if you retire earlier than your Minimum Retirement Age (MRA) with less than 30 years of service; essentially, you can access a portion of your pension at 62 with 5 years of service, but waiting longer with more service could result in a larger monthly payout.
Key points about this scenario:
- Minimum service requirement:
You must work for the federal government for at least 5 years to be eligible for any FERS pension.
- Age 62 benefits:
Reaching age 62 allows you to access your pension even if you haven’t reached your full retirement age based on your service years.
- “High-3” average salary:
The calculation of your pension is based on the average of your highest 3 consecutive years of salary.
- Reduced benefit potential:
Retiring at age 62 with only 5 years of service may result in a smaller pension compared to waiting until your MRA with a longer service record.
Retirement would be denied, if termination were for cause:
Key points about termination for cause:
- Valid reasons:
Examples include gross misconduct, fraud, theft, intentional violation of company policies, extreme insubordination, repeated poor performance, or safety violations.
Additionally: Spying, theft, murder, other crimes.
- Documentation is crucial:
Employers typically need to document instances of misconduct and provide warnings to the employee before taking action to terminate for cause.
- Legal implications:
Depending on the jurisdiction, an employee terminated for cause may not be eligible for unemployment benefits.
REDUCTION IN FORCE (RIF) occurs, but what about now, DOGE and the employee right to refuse, to transfer, to keep their jobs and appeals. So, I decided to go to the horse’s mouth and ask OPM:
Shipe: “Has OPM eliminated the Employee Right, in the DOGE process of elimination of personnel, agencies and departments?
OPM: “No, OPM has not eliminated employee rights related to Reductions in Force (RIF) or the Department of Government Efficiency (DOGE) initiative; federal employees still have rights and protections during RIFs, including appeal rights to the Merit Systems Protection Board”
Shipe: What are the employee rights when RIF?
OPM: The U.S. Office of Personnel Management develops policy and provides guidance to Federal agencies regarding Reduction in Force (RIF). This page serves as a portal to assist you in locating pertinent information and content related to RIF in the Federal Government.
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 regulatory requirements governing reduction in force are contained in Title 5, Code of Federal Regulations, Part 351. Federal agencies must follow the procedures contained in the Code of Federal Regulations when conducting a RIF. The law provides that OPM’s RIF regulations must have effect on four factors in releasing employees:
- tenure of employment (e.g., type of appointment);
- Veterans’ preference.
- length of service; and
- performance ratings.
An agency is required to use the RIF procedures when an employee is faced with separation or downgrading for a reason such as reorganization, lack of work, shortage of funds, insufficient personnel ceiling, or the exercise of certain re-employment or restoration rights. A furlough of more than 30 calendar days, or of more than 22 discontinuous workdays, is also a RIF action. (A furlough of 30 or fewer calendar days, or of 22 or fewer discontinuous workdays, is an adverse action.)
This site provides general and detailed information and guidance on RIF procedures.
Click the Tabs for general information about:
Summary of Reduction in Force
This summary covers the procedures in OPM’s reduction in force regulations.
The Employee Guide to Reduction in Force Benefits
The information presented in this guide is intended to provide an overview of benefits and entitlements if you are affected by RIF. The information is general in nature and cannot cover every situation. It may not be applicable to every Federal employee. If you need more specific information, please contact your human resources office.
Summary of Transfer of Function
A transfer of function takes place when a function ceases in one competitive area and moves to one or more other competitive areas that do not perform the function at the time of transfer. This summary covers the rights of non-temporary employees who have the right to move with their work to another organization if the alternative is separation or downgrading by RIF.
Workforce Reshaping Operations Handbook and Appendices
The Workforce Reshaping Operations Handbook(PDF file) with Appendices(PDF file) assists Federal agencies that are reshaping by identifying mandatory procedures that agencies must follow and by suggesting related options that may reduce the likelihood of involuntary separations.
In summation
Do not panic. Although DOGE is favored in some corners, it is not in all corners. You have rights, you have experience, now, you have options.
