Reduction In Force and Performance Crediting FAQs
Reduction in force is a process designed to handle the displacement or
removal of employees during agency downsizing or restructuring. An employee's
rating of record is one factor used to determine the employee's standing
in a reduction in force. Some frequently asked questions about crediting
performance in a reduction in force include:
List of Questions
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Can an agency drop the use of performance
in the reduction in force process entirely? |
How is performance credited in a reduction
in force? |
What happens if an employee does not
have three ratings of record in the last four years? |
What is a modal rating and are agencies
required to notify the Office of Personnel Management of their modal
rating and/or the basis used to determine this rating? |
What if the modal rating for one year is
based on an agencywide calculation, but a later calculation is made
using a single competitive area? |
How much does the additional service
credit based on performance affect the outcome of a reduction in force? |
Will an employee's rating of record change
if he or she moves to another agency or organization that uses a different
summary rating pattern? |
Can the number of years of additional
service credit be awarded differently for the same reduction in force
in different competitive areas? |
If all the ratings of record being credited
for a reduction in force in the competitive area are under a single
rating pattern, does the agency still have the option to vary credit? |
If an agency is running reductions in
force in two separate competitive areas and each area has ratings
given under a different pattern, does this constitute a mix of patterns
under the reduction in force regulations? |
If an agency uses a single rating pattern,
but an employee comes from another agency and has one or more ratings
of record given under a different pattern used in the former agency,
does this constitute a mix of patterns under the reduction in force
regulations? |
Are agencies required to vary the credit
from 12/16/20 in every situation where they have mixed rating patterns? |
If an agency can establish different
amounts of additional service credit in different reductions in force,
different competitive areas, and even different summary level patterns,
how can they apply the additional service credit in a uniform and
consistent manner? |
Can an agency assign 16 years of additional
service credit to a Pass (Level 3) in Pattern A (two summary levels)
and 12 years credit to a Fully Successful (Level 3) in Pattern H (five
summary levels) in the same reduction in force? |
If employees are on anniversary-date
performance cycles instead of fixed-date cycles, and the agency implements
the performance crediting provisions for an upcoming reduction in
force, does the agency have to wait until the new performance cycle
begins to assign additional performance credit? |
May an agency grant additional service
credit for reduction in force based on employees' receiving quality
step increases? |
If an agency gives a summary performance
rating when it does its mid-year review, can that rating be used for
crediting performance in a reduction in force if it was given before
the cut-off date? |
Can ratings given by private industry
employers be used as equivalent ratings of record for crediting performance
in a reduction in force? |
What are equivalent ratings of record? |
Can an agency use a close-out performance
rating brought by an employee transferring in from another agency
as a rating of record? |
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|
Can an agency drop the
use of performance in the reduction in force process entirely? |
No, under current law, performance ratings
must be a factor in the reduction in force process. Only under a demonstration
project that waives pertinent law or regulation could an agency drop
the use of performance in a reduction in force. |
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|
How is performance credited
in a reduction in force? |
Additional years of service credit are
added to an employee's length of service based on the employee's three
most recent ratings of record during the four years prior to the reduction
in force. In a competitive area where all the ratings of record being
credited were done under a single pattern of summary levels, the additional
service credit is computed by averaging the three most recent ratings
of record given in the previous four years using the following values:
- 20 years of service for each Level 5 (Outstanding or equivalent
rating);
- 16 years of service for each Level 4; and
- 12 years of service for each Level 3 (Fully Successful or equivalent
rating).
In an agency where employees in a competitive area have ratings
of record being credited for reduction in force that were done under
more than one pattern of summary levels, the agency can establish
the values for the summary levels (within 12 to 20 years) so that
performance crediting will be as fair and equitable as possible.
Within a competitive area, the agency must use the same number of
years additional retention service credit for all ratings of record
with the same summary level in the same pattern of summary levels.
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What happens if an employee
does not have three ratings of record in the last four years? |
If an employee has fewer than three ratings
of record during the last four years, the actual rating(s) of record
available would serve as the sole basis of the employee's credit (no
assumed ratings would be used). Consequently, if an employee has received
only two actual ratings of record during this period, the value assigned
to each rating would be added together and divided by two to determine
the amount of additional retention service credit. If an employee
has only one actual rating of record, the value assigned to that rating
would be used. If, however, the employee has no ratings of record
during the last four years, the modal rating for the appraisal program
that covers the employee's position of record at the time of the reduction
in force is used to grant performance credit. |
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|
What is a modal rating
and are agencies required to notify the Office of Personnel Management
of their modal rating and/or the basis used to determine this rating? |
The modal rating is the summary level within
a single pattern given most often as the latest rating of record to
the employees in a specified group that is no smaller than the competitive
area and no larger than the agency undergoing a reduction in force.
It is important that the employees undergoing a reduction in force
understand the basis used to determine the modal rating, but there
is no requirement to notify the Office of Personnel Management of
this information. |
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|
What if the modal rating
for one year is based on an agencywide calculation, but a later calculation
is made using a single competitive area? |
The agency will have to determine the modal
rating based on the rating of record information it has available.
If ratings of record are aggregated only at the agency level, that
is what the agency will have to use. It might be possible for them
to adapt their systems to do smaller aggregations. The
Office of Personnel Management recommends that the modal rating which
is based on the most recent ratings of record, be tabulated for the
specific competitive area undergoing a reduction in force whenever
possible, and that larger aggregations of agency population be used
only when the rating of record information is not available for the
specific competitive area itself. |
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|
How much does the additional
service credit based on performance affect the outcome of a reduction
in force? |
The possible effect of performance-based
additional service credit is most likely to appear in the second round
of the reduction in force process, when employees exercise their bump
(into positions held by employees in lower tenure groups for which
they meet the basic qualification standard) and retreat (to previously
held positions) rights. Even at this stage, experience suggests that
the performance-based additional service credit often has no impact
on the actual final result of the reduction in force. |
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|
Will an employee's rating
of record change if he or she moves to another agency or organization
that uses a different summary rating pattern? |
No. A rating of record does not change
when an employee moves to another agency or organization, whether
or not they use a different summary pattern. However, there is no
predetermined value associated with a specific rating of record for
reduction in force purposes if there is a mix of rating patterns within
the competitive area. Therefore, an employee will not know how many
years of additional service credit will be given for a specific rating
of record until an agency is getting ready to run a reduction in force,
determines whether a mix of patterns exists, and, if one does, decides
how service credit will be assigned. To help employees understand
the crediting for performance within a particular competitive area,
agencies should communicate this information as soon as practicable
after they make the necessary decisions. |
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Can the number of years
of additional service credit be awarded differently for the same reduction
in force in different competitive areas? |
Yes. Each competitive area must be looked
at individually to analyze what the situation is regarding the ratings
of record being credited. For example, an agency needs to determine
whether a mix of rating patterns exists, what the combination of rating
patterns used looks like, and the relative numbers of employees rated
under each pattern. Only then can the agency make an appropriate determination
of how to assign years of additional service credit, based on the
specific situation found. |
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|
If all the ratings of
record being credited for a reduction in force in the competitive
area are under a single rating pattern, does the agency still have
the option to vary credit? |
No, the agency may only vary credit if
the competitive area includes employees with ratings of record being
credited for this reduction in force that were received under more
than one summary level pattern. If all ratings being credited were
given under a single pattern, the agency must use the 12/16/20 system
regardless of the pattern used. |
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If an agency is running
reductions in force in two separate competitive areas and each area
has ratings given under a different pattern, does this constitute
a mix of patterns under the reduction in force regulations? |
No, there is no comparison across competitive
areas to determine if a mix of patterns exists. Only if there is a
mix of patterns within a single competitive area can an agency vary
credit. |
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|
If an agency uses a single
rating pattern, but an employee comes from another agency and has
one or more ratings of record given under a different pattern used
in the former agency, does this constitute a mix of patterns under
the reduction in force regulations? |
Yes. Even if an agency uses a single summary
level pattern, if there is any employee with one or more ratings of
record being credited in the reduction in force that were given under
a different summary level pattern, the agency has a mix of patterns. |
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|
Are agencies required
to vary the credit from 12/16/20 in every situation where they have
mixed rating patterns? |
The regulations require that agencies look
at the situation and make a determination on what, if anything, should
be done regarding the credit assigned for ratings of record when there
is a mix of rating patterns among the ratings of record being credited
for reduction in force. If the agency decides that the best course
of action is to still use the 12/16/20 assignment of credit, they
may do so. |
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|
If an agency can establish
different amounts of additional service credit in different reductions
in force, different competitive areas, and even different summary
level patterns, how can they apply the additional service credit in
a uniform and consistent manner? |
Once an agency determines how it will assign
the amounts of additional service credit based on performance, everyone
who has ratings of record with the same summary level within the same
pattern in the same competitive area will get the same amount of additional
service credit. This is a uniform and consistent application of service
credit for everyone who meets the specified criteria (i.e., level,
pattern, and competitive area). |
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|
Can an agency assign
16 years of additional service credit to a Pass (Level 3) in Pattern
A (two summary levels) and 12 years credit to a Fully Successful (Level
3) in Pattern H (five summary levels) in the same reduction in force? |
Yes. Based on its analysis of the competitive
area(s) and its determination of what would minimize severely advantaging
or disadvantaging employees, an agency can assign different values
to the same summary level (Level 3) in different patterns (A and H)
in the same reduction in force, and even within the same competitive
area. |
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|
If employees are on anniversary-date
performance cycles instead of fixed-date cycles, and the agency implements
the performance crediting provisions for an upcoming reduction in
force, does the agency have to wait until the new performance cycle
begins to assign additional performance credit? |
No. Crediting provisions are not tied to performance cycle dates. They can be applied only to ratings of record put on record (i.e., given to the employee with all appropriate reviews and signatures and available to the office responsible for establishing retention registers). Many agencies establish a cut-off date after which no new ratings of record will be put on record for use in a specific reduction in force. Using a cut-off date could be particularly helpful when an agency uses anniversary-date cycles, since there is no other single, clear-cut date available to signify when the last creditable appraisal period ended. |
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May an agency grant additional
service credit for reduction in force based on employees' receiving
quality step increases? |
No. The only basis for granting additional
service credit for reduction in force is a rating of record as specified
at section 351.504(a) of title 5, Code of Federal Regulations. |
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If an agency gives a
summary performance rating when it does its mid-year review, can that
rating be used for crediting performance in a reduction in force if
it was given before the cut-off date? |
No. Only ratings of record can be used
as the basis for assigning additional service credit during a reduction
in force. Performance ratings are used to capture performance information
for many different kinds of situations, including mid-year or quarterly
reviews, details, employee transfers, etc., and are factored into
the employee's rating of record at the end of the appraisal period,
but they do not constitute ratings of record themselves. The reduction
in force regulations were written specifically to minimize confusion
over which ratings can be used for reduction in force purposes by
limiting the crediting of years of additional service to ratings of
record only. |
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Can ratings given by
private industry employers be used as equivalent ratings of record
for crediting performance in a reduction in force? |
No. Only ratings given by Federal Government
entities can be used and only when they meet the requirements for
equivalent ratings of record as specified in the performance management
regulations. |
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What are equivalent ratings
of record? |
There are agencies and organizations within
the Federal Government that are not covered by the performance appraisal
provisions in the law and regulations. However, many of them have
adopted these procedures or developed their own procedures to evaluate
the performance of their employees. The previous regulations on reduction
in force restricted the application of additional service credit based
on performance to those ratings of record given under the provisions
of the appraisal law and regulations. When employees moved between
agencies and organizations that are and are not subject to the appraisal
law and regulations, they lost credit for Federal performance. To
help alleviate this problem, the regulations have been changed to
give agencies the basic guidelines by which they can review the performance
evaluations employees bring with them from other Federal organizations
and determine whether they qualify as equivalent ratings of record
that can then be used as the basis for assigning additional service
credit in a reduction in force.
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Can an agency use a close-out
performance rating brought by an employee transferring in from another
agency as a rating of record? |
No. Under the new regulatory definition,
the rating of record is: the performance rating done at the end of
the appraisal period that reflects performance over the entire period;
or the more current rating of record required by regulation at section
531.404(a)(1) of title 5, Code of Federal Regulations, to support
a within-grade pay decision. The regulations do not provide for agencies
to specify other circumstances for giving a rating of record. |
Frequently Asked Questions