Questions & Answers with Emily

What options does an agency have to reshape its workforce?

Before reshaping begins, agencies should assess their current organizational structure and develop their future, desired end state. Ideally, this strategic planning should allow reshaping efforts to be targeted to areas that require change. The agency can then use both voluntary and involuntary options to reshape the workforce to match the planned end state.

Agencies should start reshaping efforts with voluntary options, which minimizes impact to the workforce and reduces the need for a reduction in force (RIF). 

Voluntary reshaping options may include: 

• Hiring freeze,

• Voluntary reassignment offers,

• Voluntary Separation Incentive Payments (VSIP) offers, or

• Offers of retirement under the Voluntary Early Retirement Authority (VERA). 

Involuntary reshaping options may include:

• Management-directed reassignments,

• Furloughs,

• Separation of temporary employees (a RIF is not required for this action),

• Separation of re-employed annuitants (a RIF is not required for this action), or

• RIF.

What are Voluntary Separation Incentive Payment (VSIP) and Voluntary Early Retirement Authority (VERA)?  Are they the same?

No, VSIP and VERA are not the same, but you often see them used together (“VSIP/VERA”).

VSIP is a lump-sum payment that can be authorized for employees who voluntarily separate from federal service during a downsizing or restructuring event. They may be separating via resignation or retirement, and payments may be up to $25,000. Be aware that employees who receive a VSIP may not accept another federal position for five years after accepting the VSIP unless they repay the entire amount of the VSIP prior to their first day of reemployment. A VSIP may sound like an attractive option if your agency is reorganizing; however, you should consider whether you wish to return to the government in another capacity at a later date before accepting.

VERA is an authority under which an employee is permitted to retire early. Employees may be eligible to retire under VERA if they are at least age 50 with at least 20 years of creditable federal service or any age with at least 25 years of creditable federal service. You must receive approval from your agency to retire under VERA. Depending on the agency’s reorganization plan, the agency may only make VERA offers to employees occupying certain positions. This is a method used to target certain organizational units for reduction. Generally, an entire agency would not be offered VERA unless the plan was to eliminate the entire agency. Additionally, it is very important that employees consult with their agency's human resources office on their VERA eligibility and obtain an estimated annuity for retirement under VERA. It is also advisable that employees obtain a copy of their own official personnel file and independently verify their years of service prior to accepting a VERA offer.

What is a management-directed reassignment?  Can I refuse one?

A management-directed reassignment (MDR) occurs when an agency directs the reassignment of an employee to another position and/or to another physical location.  An agency has the right to reassign an employee to another position at the same grade and rate of pay if there is a legitimate business reason for the move and the employee is qualified for the position. A RIF is not required to execute this type of action. 

Unfortunately, if you decline an MDR, the agency can remove you through adverse action procedures.  Employees who are separated for declining a MDR should qualify for most of the benefits available to an employee who is separated in a RIF.  This could include severance pay, discontinued service retirement, and/or certain placement assistance programs.  Employees also have the right to appeal these separation actions to the Merit Systems Protection Board (MSPB). Review the following section for more information on the MSPB process: MSPB Appeals.

Keep in mind that MDRs are not specific to workforce reshaping.  They can occur at any time and may be used to implement other policy changes.  For example, MDRs were used to recall employees from remote work locations over the last year.

What is a RIF?

A RIF is the process an agency uses to abolish positions, and it should be used as a last resort for agencies that are reshaping their workforce. 

Agencies are required to use RIF procedures if an employee is faced with separation or demotion due to a reorganization, lack of work, shortage of funds, insufficient personnel ceiling, or exercise of certain reemployment/restoration rights. The procedures determine whether an employee will keep their position, whether they have the right to a different position, or whether they will be separated from federal service.

If you are facing a RIF action, your agency must provide you with a written notice that contains the following:

• At least 60 days advance written notice (this can be shortened to 30 days with OPM approval),

• Type of action being taken (reassignment, downgrade, or separation),

• Reason for the action,

• Effective date of the action,

• Your "competitive area" (the portion of your organization that is being reduced), your "competitive level" (the group of employees that are you are compared to during the RIF process), and the information considered during the RIF process (for example, your service date and your performance ratings), and

• Your right to appeal the action to the MSPB, if applicable (downgrades and separations can generally be appealed). 

Your agency must also notify you of benefits that you may be entitled to, which may include severance pay, discontinued service retirement, unemployment benefits, and certain placement assistance programs.

If I think my agency is going to reorganize, what should I do?

First and foremost, it is important that you review your own personnel records for accuracy.  Mistakes happen.  It is best to be proactive and ensure mistakes are corrected before they are relied upon for actions that could impact your career. For example, years of service, performance ratings, veteran's preference, appointment type, and probationary and trial period status are all factors that may come into play during a reshaping effort. Once your agency is in a RIF, it may be more difficult to identify errors and request that those errors be corrected.

Second, if you receive an incentive offer or notice of action in connection with a reorganization, contact me to ensure that you have the resources you need to make an informed decision and to ensure you preserve any rights of redress.