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VA’s Workforce Optimization Hub
On May 22, 2025, the U.S. District Court, Northern District of California issued a court order in AFGE, et. al, v. Trump, et al., No. 25-cv-03698-SI, that prohibits the federal agencies “from taking any actions to implement or enforce sections 3(c) and 3(e) of Executive Order 14210 or the February 26, 2025 OMB/OPM Memorandum…including but not limited to: execution of any existing RIF notices (including final separation of employees), issuance of any further RIF notices, placement of employees on administrative leave, and transfer of functions or programs between the agency defendants….” among other things.
Department of Veterans Affairs (VA) human resources (HR) offices must use this guidance in conjunction with 5 C.F.R. § 351; the Office of Personnel Management (OPM) Workforce Reshaping Handbook and appendices; VA Handbook 5005, Part IV; VA Handbook 5007; and all applicable Collective Bargaining Agreements (CBA).
When required, RIF procedures will be noted with an asterisk to comply with the Initial Guidance Regarding DEIA Executive Orders (EO), dated January 21, 2025.
A RIF is a management tool to downsize an organization when deemed necessary due to reorganization, lack of work, shortage of funds, insufficient personnel ceiling, or the exercise of certain reemployment or restoration rights. When implemented, the RIF process may facilitate the involuntarily separation, demotion, and/or reassignment of impacted employees.
Per 5 C.F.R. § 351.202, these procedures apply to each civilian employee in the executive branch of Federal Government.
These procedures do not apply to employees serving in the Senior Executive Service (SES) or appointed under 38 U.S.C. § 7306.
The four key data components are tenure of employment (i.e., type of appointment), Veteran’s preference, length of service, and performance ratings. RIF regulations specify how these components aid VA HR offices in determining whether an employee keeps his or her position or has a right to a different position. These components are critical to the success and integrity of the RIF and must be updated to properly administer the process.
Servicing HR offices must take advanced steps to review and validate the accuracy of key RIF data in the electronic Official Personnel File (e-OPF) to ensure personnel data quality and integrity prior to implementing a RIF.
When the VA workforce reshaping plan will result in involuntary separations, demotions, and/or relocations because some employees hold surplus positions, VA’s first option is often to try to place the surplus employees in other continuing positions through an effective outplacement program. The Career Transition Assistance Plan (CTAP) provides most surplus and displaced permanent competitive service employees with intra-agency selection priority for vacancies VA is filling in the current local commuting area. CTAP also requires VA to provide specific career transition services, such as career counseling, career transition services and facilities, application referrals, job search counseling, and an orientation session for surplus and displaced employees that explains both how to use VA’s career transition services and what the eligibility requirements are for selection priority under available programs.
An employee’s eligibility for VA’s CTAP begins as soon as they receive a RIF separation notice. A CTAP eligible employee does not receive special consideration for hybrid title 38 or title 38 vacancies. In accordance with VA Handbook 5005, Part IV, Chapter 2, Section I, where practicable, eligible VA hybrid title 38 and title 38 employees subject to RIFs and related activities are afforded the provisions of their local CTAP such as career transition assistance services.
Individual CBAs may have additional assistance requirements. HR offices should refer to all applicable CBAs to ensure appropriate assistance is offered.
A displaced employee is a current career or career-conditional competitive service employee in tenure group I or II who holds a position at the GS-15 or below (or equivalent) and has received a specific notice of separation by RIF or a written notice of proposed removal (including a final decision) by adverse action for declining a directed reassignment, transfer of function, or other similar reason, outside of the employee’s current local commuting area.
A surplus employee is a current employee serving under an appointment in the competitive service as well as an excepted service employee in Schedule A or B in tenure group I or II, and a title 38 employee serving on an appointment under 38 U.S.C. 7401(1) who has received a notice or other certification issued by the agency, which identifies the employee as being in an excess organization or occupation. A surplus employee does not include an employee displaced from an Administrative Law Judge or Senior-Level (SL) position.
The precedence over any other candidates that eligible employees have for being chosen for vacancies for which they apply. Eligible surplus and displaced employees must be selected over any other candidate for vacancies in the local commuting area for which they apply and are found well-qualified. Exception – No VA CTAP special selection priority can be made that would cause another VA employee to be separated by RIF.
HR offices should refer to VA Handbook 5005, Part IV, Chapter 3 and Appendix A for the staffing actions not covered by the VA CTAP.
Yes. To the extent possible, VA may generally place employees in vacant positions that satisfy employee’s assignment rights under 5 C.F.R. § 351.201. If a hiring freeze accompanies a RIF, reassignments may only be made in accordance with hiring freeze guidance.
*Note: For RIF actions related to the Initial Guidance Regarding DEIA Executive Orders (EO), dated January 21, 2025, OPM approval is required prior to reassigning employees.
No. Employees may not be reassigned to positions with greater promotion potential under RIF procedures and would need to compete for such positions.
When management chooses to offer vacancies using RIF procedures, title 5 qualifications may be waived under 5 C.F.R. § 351.703, however, they may not waive any minimum education requirements. They must also determine that the employee has the capacity, adaptability, and special skills needed to satisfactorily perform the duties and responsibilities of the position.
Qualifications may not be waived for title 38 and hybrid title 38 vacancies.
Yes. An employee may be allowed to volunteer to accept a lower-graded position.
Subject to the requirements in 5 C.F.R. 536.102, 536.201, and 536.203, VA must provide grade retention to an employee who moves from a position under a covered pay system to a lower-graded position under a covered pay system (as defined in 5 C.F.R. 536.103) as a result of a RIF. The employee must be placed in the position offered in the specific RIF notice or placed in a position other than that in the notice but also within VA and offered in writing at the initiative of management.
Subject to the requirements in 5 C.F.R. 536.102 and 536.301, VA must provide pay retention to an employee placed in a lower-graded position when the employee does not meet the eligibility requirements for grade retention under 5 C.F.R. § 536(b).
HR offices should refer to 5 C.F.R. Part 536 and VA Directive and Handbook 5007, Pay Administration, for more guidance.
Yes. The position to which the employee is reassigned may be in the same or a different commuting area.
*Note: For RIF actions related to the Initial Guidance Regarding DEIA Executive Orders (EO) dated January 21, 2025, OPM approval is required prior to reassigning employees.
An employee who declines a reassignment to a different commuting area is subject to RIF and may be eligible for benefits available to an employee who is separated by a RIF including severance pay, discontinued service retirement, and the Interagency Career Transition Assistance Plan (ICTAP). The employee is not eligible to be placed on the reemployment priority list.
HR offices should refer to the OPM Workforce Reshaping Handbook for further guidance.
The RIF regulations provide mandatory assignment rights to an employee who:
VA also grants the following administrative assignment rights:
*Note: For RIF actions related to the Initial Guidance Regarding DEIA Executive Orders (EO) dated January 21, 2025, OPM approval is required prior to reassigning employees.
Some may be eligible, but it depends. Severance pay is authorized for full-time and part-time employees who are involuntarily separated from Federal service and meet other conditions of eligibility found in 5 C.F.R. §, 550.704 and VA Handbook 5007, Part IV, Chapter 2.
HR offices should refer to OPM’s Fact Sheet on Severance Pay and the SHCPS FAQs on Severance Pay for more information.
Yes.
Competitive Service:
The Reemployment Priority List (RPL) is a required component of an agency’s placement programs to assist its current and former competitive service employees who will be or were separated by reduction in force (RIF) under 5 C.F.R. § 351 or who have recovered from a compensable work-related injury after more than 1 year, as required by 5 C.F.R. § 353. In filling vacancies, VA must give its RPL registrants placement priority for most competitive service vacancies before hiring someone from outside its own permanent competitive service workforce. Each facility must maintain a Reemployment Priority List (RPL) for each local commuting area of employees separated by RIF.
HR offices should refer to 5 C.F.R. § 330(b) and VA Handbook 5005, Part IV, Chapter 3, Appendix A, for further guidance on RPL and the order of selection and consideration.
Excepted Service:
VA must establish a Priority Reemployment List (PRL) whenever any applicants rated eligible under 5 C.F.R. § 302.302 meet the conditions set out in paragraphs (b)(1) through (b)(3) of 5 C.F.R. § 302.303 and must consider candidates from that list in accordance with 5 C.F.R. § 302.304(a). Included names should be each former employee of the agency who is a preference eligible, has been furloughed or separated from a continuing appointment without delinquency or misconduct, and applies for reemployment. Candidates in this category are considered for positions in the commuting area where they were separated unless the agency elects to provide broader consideration. Candidates remain on the list for 2 years unless the agency elects to provide a longer period of eligibility.
HR offices should refer to 5 C.F.R. § 302(a) for further guidance on PRL and the order of selection and consideration.
Yes. The Interagency Career Transition Assistance Plan (ICTAP) provides eligible displaced VA employees with interagency selection priority for vacancies other Federal agencies are filling outside their respective permanent competitive service workforces.
HR offices should refer to 5 C.F.R. § 330(g) and VA Handbook 5005, Part IV, Chapter 2, for further guidance on ICTAP.
The servicing HR office must request the declination in writing from the employee and include it in the recruitment case file.
VA must provide specific RIF notices to employees at least 60 calendar days before the employee is released from the competitive level by a RIF action. The notice period begins the day after the employee receives the notice.
HR offices should refer to 5 C.F.R. 351 Subpart H and consult all applicable CBAs for further information on specific notice requirements.
A personnel action must be effected under RIF procedures when both the action and the reason for the action are covered by RIF regulations.
RIF Action – the release of an employee from a RIF competitive level by:
RIF Reason for Action:
A specific RIF notice must contain the following information:
VA facility directors must provide notice to the unions prior to a RIF and prior to notifying any affected bargaining unit employees. Notices must comply with requirements and timeframes established in all applicable CBAs.
Yes. An employee has a right to file an appeal regarding a RIF action to the Merit Systems Protection Board (MSPB) under the provisions of the Board’s regulations if, under authority of the RIF regulations, the employee was separated, demoted, or furloughed for more than 30 consecutive calendar days or 22 discontinuous workdays, but not more than 1 year.
An employee in a bargaining unit covered by a negotiated grievance procedure with exclusive procedures for resolving any personnel action (including a RIF) that could otherwise be appealed to the MSPB must use the negotiated grievance procedure in lieu of appealing the RIF action to the MSPB unless, as provided in section 5 U.S.C. § 7121(d), the employee alleges discrimination. If the negotiated grievance procedure excludes RIF actions, then the employee may not use the grievance procedure, but instead may appeal the RIF action to the MSPB. There are exceptions to these appeal rights as noted in 5 C.F.R. § 1201.3(c).
Employees serving on temporary appointments are considered non-competing employees and are released from the RIF competitive level first during a RIF. Employees serving on a temporary promotion, but who hold a permanent position of record, will be returned to their position or record or equivalent.
Employees serving a probationary period for initial appointment to a competitive position will be considered in the RIF as part of tenure group II. Employees serving on a trial period under an excepted service appointment, whose tenure is equivalent to a career-conditional appointment in the competitive service, will be considered in the RIF as part of tenure group II.
A reemployed annuitant serves at the will of VA and, regardless of type of appointment, can be terminated without regard to the RIF regulations. If VA does not separate the reemployed annuitant prior to the RIF effective date, the reemployed annuitant competes in the RIF on the same basis as other employees holding the same type of appointment. HR offices should refer to VA Handbook 5005, Chapter 3, Section G, for more information on the excepted service appointments of reemployed annuitants under 38 U.S.C. § 7405(a)(1).
HR offices should refer to VA Handbook 5005, Chapter IV and the OPM Workforce Reshaping Handbook.
Facility directors will conduct RIF actions within their respective jurisdictions unless the action involves a centralized position or separating an employee without an assignment offer. The VA Secretary or designee(s) will authorize RIF actions involving positions centralized to the Secretary. Under Secretaries, Assistant Secretaries, other Key Officials or their designee(s), with the advice of the OCHCO, will authorize RIFs within VACO elements under their jurisdiction and within field facilities under their jurisdiction requiring VACO approval.
A transfer of function is when a function wholly leaves one competitive area and moves to another competitive area that does not already perform that same function. Before a reduction in force is made in connection with the transfer of any or all the functions of a competitive area to another continuing competitive area, each competing employee in a position identified with the transferring function or functions will be transferred to the continuing competitive area without any change in the tenure of their employment. VA may not separate an employee who declines to transfer with the function any sooner than it transfers employees who chose to transfer with the function to the gaining competitive area.
Yes, a furlough, or placement of an employee in a temporary status without duties or pay because of a lack of work, funds, or other non-disciplinary reasons, for either consecutive or non-consecutive days, may be conducted during a RIF. Furloughs are appropriate to address temporary conditions when it is intended to recall employees to duty. The determination as to which employees are furloughed will be based on an assessment of which assignments are critical to the continuing operation of the organization during the furlough. When feasible, furloughs will be spread out among employees in affected competitive levels to minimize the impact on each employee and the disruption of VA activities.
