OPM RIF Performance Rule Is Final: Who Survives After Sept 2

Last Updated: August 2, 2026

UPDATE, August 2, 2026: This rule is now FINAL. OPM signed the final version on July 31, 2026 (FR 2026-15665, published August 3), and it took effect September 2, 2026 (in effect as of today, with no court having blocked it). The scoring system below survived from the proposed rule intact, verified against the final regulatory text. Two changes from the proposal: OPM withdrew the provision loosening rules on unpaid furloughs over 30 days, and added a requirement that agencies document any competitive area created fewer than 90 days before a RIF notice. The transition rule is date-of-notice: RIF notices issued before September 2 are processed under the old rules; notices on or after September 2 use the new system. The companion appeals rule was finalized the same day, and we cover what that means for your appeal rights in our appeals-elimination guide.

OPM first published this as a proposed rule on March 5, 2026 (Federal Register 2026-04377). It is the most significant structural change to RIF rules since the Civil Service Reform Act of 1978.

The three ratings are totaled. Three Outstanding ratings = 7+7+7 = 21 points maximum.

Veterans preference points are added on top of the performance score:

• 30% or greater service-connected disability: +5 points
• Other veterans preference eligible: +3 points

A veteran with three Outstanding ratings could score as high as 26 points. But veterans preference is now a supplement to performance, not a primary protection.

Note on revision from the earlier draft: A draft OPM circulated in November 2025 assigned 1 point for Unacceptable and 2 points for Minimally Successful. The published proposed rule sets both to 0. The bottom two rating levels offer zero RIF protection.

Under the rules in force through September 1, tenure and veterans preference dominate. Performance barely matters. The final rule inverts this entirely.

How the current system works (for comparison)

Under current regulations (5 CFR Part 351), RIF retention is decided in this order:

Step 1: Tenure Group

• Group I: Career employees not on probation (most protected)
• Group II: Career-conditional employees
• Group III: Temporary and term appointments (least protected)

Within each group, employees are divided by veterans preference subgroup:

• Subgroup AD: Veterans with 30%+ compensable service-connected disability
• Subgroup A: Other veterans preference eligible
• Subgroup B: Non-veterans

Step 2: Adjusted Service Computation Date (SCD)

Within each group and subgroup, employees are ranked by their adjusted SCD, which is actual years of service plus a performance credit:

• Level 5 (Outstanding): +20 years added
• Level 4 (Exceeds Fully Successful): +16 years added
• Level 3 (Fully Successful): +12 years added
• Level 2 or 1: No credit

The credit uses the most recent rating of record, averaged over three ratings. A single high rating provides significant protection under the current system.

The real-world math: who survives under each system

Scenario 1: The 15-year veteran vs. the 5-year star

Employee A: GS-12, 15 years of service, all three ratings Fully Successful (Level 3) Employee B: GS-12, 5 years of service, all three ratings Outstanding (Level 5)

Current system result:

• Employee A adjusted SCD: 15 actual years + 12-year credit = 27-year SCD
• Employee B adjusted SCD: 5 actual years + 20-year credit = 25-year SCD
• Employee A is retained. Seniority, combined with the performance credit, wins.

Proposed new system result:

• Employee A performance score: 3+3+3 = 9 points
• Employee B performance score: 7+7+7 = 21 points
• Employee B is retained. A 10-year seniority advantage is completely wiped out.

Scenario 2: The veteran with mid-level ratings

Employee C: GS-11, 10 years, veteran with 30% disability, all Fully Successful ratings Employee D: GS-11, 6 years, non-veteran, two Outstanding and one Exceeds Fully Successful

Current system result:

• Employee C is in Tenure Group I, Subgroup AD, the best-protected category. Non-veterans at the same grade and tenure are cut first.
• Employee D is in Subgroup B. Employee D is laid off first.

Proposed new system result:

• Employee C: 3+3+3 = 9 points + 5 (veterans) = 14 points
• Employee D: 7+7+5 = 19 points + 0 (no preference) = 19 points
• Employee D is retained. Three strong ratings overcome veterans preference.

Veterans preference still provides meaningful protection. The 5-point addition can be decisive in close races. But it no longer provides the categorical protection that has historically made Subgroup AD employees nearly untouchable.

The three-rule system: how they work together

These three OPM rules, all now final, are often reported separately. Read together, the structure is clearer.

Rule 1: Performance Appraisal (2026-03619): "Control the ratings"

Published February 24, 2026. Comment period closed March 26, 2026.

This rule caps the number of employees who can receive Level 4 or Level 5 ratings (forced distribution, modeled on the existing SES 30% cap). Currently 65% of federal employees receive a top-two rating. Under this cap, roughly 740,000 employees would be moved down, often from Level 5 to Level 3.

Rule 2: RIF Performance Scoring (2026-04377): "Use ratings to decide who goes"

Proposed March 5, 2026; finalized as FR 2026-15665 on July 31, 2026; effective September 2, 2026.

This rule makes those same ratings the primary layoff factor. Employees with lower ratings face RIF before senior employees.

Rule 3: RIF Appeals (2026-02576): "Eliminate independent review"

Published February 10, 2026. Comment period closed March 12, 2026.

This rule transfers RIF appeals from the independent Merit Systems Protection Board to OPM itself. Federal court review is eliminated. Employees cannot get an independent third party to review whether the RIF was conducted properly.

The combined effect: Agencies control what ratings employees receive (Rule 1). Those ratings determine who is laid off (Rule 2). Employees cannot appeal to an independent body if they believe the process was abused (Rule 3).

AFGE National President Everett Kelley described the package as "a blueprint for faster, less accountable mass firings."

The connection between Rules 1 and 2 is worth spelling out mathematically. A supervisor who gives an employee Level 3 instead of Level 5 (because of the forced distribution cap) reduces that employee's RIF score from 21 points to 9 points. That 12-point reduction, in a competitive RIF field, could easily determine whether they survive.

Who loses RIF protections entirely

Under the outgoing rules, only SES members and political appointees are excluded from RIF procedures. The final rule expands that list significantly:

• Probationary employees (typically the first year of service)
• Employees on time-limited appointments of one year or less
• All career excepted service employees, including positions converted to Schedule Policy/Career (formerly Schedule F)

The Schedule Policy/Career overlap: Approximately 50,000 positions were converted to Schedule Policy/Career effective March 7, 2026. These employees are now at-will for discharge purposes. Under the final RIF rule, they are also excluded from RIF competition entirely. That is double exposure: they can be fired without cause AND would lose the procedural protections of the RIF system.

One protection retained in the final rule: Agencies cannot initiate an erosion-of-duties reclassification (downgrading an employee's position mid-RIF) in a way that adversely affects that employee's retention standing between the time a RIF is announced and the time it is completed. This prevents using reclassifications as a weapon during an active RIF.

The legal question around MSPB appeals

OPM's authority to transfer RIF appeals from MSPB to itself rests on a legal argument: MSPB's jurisdiction over RIF appeals exists only by OPM regulation (5 CFR 351.901), not by statute. Congress deliberately excluded RIF appeals from MSPB's statutory jurisdiction in the Civil Service Reform Act of 1978. If OPM created the authority by regulation, OPM can revoke it by regulation.

Federal employee unions dispute this analysis. FedSmith's legal commentary notes this question is "likely to return to the Supreme Court." AFGE has stated it will pursue all legal options if the appeals rule is finalized.

The appeals rule is final (FR 2026-15666): starting September 2, RIF appeals go to OPM's Merit System Accountability and Compliance (MSAC) office, with reconsideration and Director review inside OPM. The rule contains an explicit no-judicial-review provision; no federal court appeal is available for the RIF itself. Our appeals-elimination guide covers the surviving collateral remedies. The rule states the new appeals process supersedes negotiated grievance procedures for RIF appeals.

Critical context: Agencies can issue 60-day RIF notices now. A notice issued before September 2 runs under the old rules from start to finish, including MSPB appeal rights. A notice on or after September 2 runs under the new scoring and the OPM-only appeals process.

What you should do now

Whether or not this rule is finalized, federal employees in restructuring agencies face real decisions now.

If you are in an agency with an active RIF or major restructuring:

• Review your most recent three performance appraisals. Under the final system, your total score is what matters.
• Request copies of your official ratings of record from HR if you do not have them.
• Calculate your potential severance pay so you know your financial cushion. Use the Severance Pay Calculator.
• If your agency is offering VERA, check your eligibility now. Use the VERA Eligibility Calculator to see if you qualify before a RIF forces your hand.
• Model your FERS annuity at different retirement ages to understand what early retirement actually costs you in monthly income. Use the FERS Retirement Calculator.

If your agency is not currently restructuring:

• Document your accomplishments in writing throughout the year. Performance is now the primary currency of job security. If your agency implements forced distribution and your supervisor must choose who gets Level 3 vs. Level 5, detailed accomplishment records strengthen your case.
• Understand your current retention standing. Know your adjusted SCD under the current system so you have a baseline.
• The comment window is closed (roughly 1,250 comments came in; 99% opposed the appeals transfer). The remaining lever is documentation: make sure your ratings on file are accurate before a notice lands.

If you are a manager or HR professional:

• Study the proposed retention register mechanics. HR offices will need to build performance-based retention registers if this rule is finalized.
• Note the erosion-of-duties reclassification limitation: you cannot downgrade positions mid-RIF to affect retention standing.

How to submit a public comment

The comment deadline for the RIF performance scoring rule is May 4, 2026. For the forced distribution companion rule, the deadline is March 26, 2026.

To comment on Federal Register Document 2026-04377 (the RIF performance scoring rule):

1. Go to regulations.gov
2. Search for "2026-04377" or "Reduction in Force" in the search bar
3. Submit your comment electronically (comments can be brief, even 2-3 sentences count)
4. Do not include your Social Security number, home address, or other sensitive information. Comments are public.

Effective comments address the specific regulatory text being changed, describe concrete impacts on real employees, and propose alternative approaches OPM should consider.

Comments can also be mailed to: Office of Personnel Management, Employee Services, 1900 E Street NW, Washington, DC 20415.

Estimate your financial cushion now

Knowing your numbers is useful regardless of how this rule lands. Three calculators apply directly to this situation:

Severance Pay Calculator If you are laid off in a RIF, your severance is calculated on years of service: one week of basic pay per year for the first 10 years, two weeks per year after that, plus an age adjustment. Get your number before a RIF notice lands.

VERA Eligibility Calculator If your agency offers a Voluntary Early Retirement, you may be able to retire now rather than wait for a RIF. Check your eligibility instantly based on your age and years of service.

FERS Retirement Calculator If you are weighing early retirement against waiting, model your monthly annuity at different ages. Knowing the dollar difference between retiring at 57 versus 62 makes the decision clearer.

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Frequently Asked Questions

What is OPM's proposed new RIF scoring system?

OPM proposed on March 5, 2026 (Federal Register 2026-04377) that performance ratings replace seniority as the primary factor in federal layoffs. The scoring system awards 7 points for Outstanding, 5 points for Exceeds Fully Successful, 3 points for Fully Successful, and 0 points for Minimally Successful or Unacceptable. Three most recent appraisals are totaled for a maximum of 21 points. Veterans preference adds 5 or 3 additional points.

Under the current RIF system, how is retention standing determined?

Under current rules (5 CFR Part 351), retention is decided by four factors: (1) Tenure group, (2) Veterans preference subgroup, (3) Adjusted service computation date (actual service plus performance credit of 20, 16, or 12 years for Level 5, 4, or 3 ratings), and (4) Performance, which is the lowest-weighted factor. A career veteran with 20 years of service has historically been nearly impossible to lay off before a junior non-veteran, regardless of performance.

How does the proposed rule interact with the forced distribution performance rating cap?

The two rules work as a coordinated system. The forced distribution rule (2026-03619) caps top ratings at roughly 30%, down from the current 65% of employees receiving Level 4 or 5. The RIF scoring rule then uses those ratings as the primary layoff factor. Critics argue this means agencies control both who gets high ratings and who gets laid off, effectively enabling politically targeted separations dressed up as performance-based decisions.

Who is excluded from RIF protections under the proposed rule?

The proposed rule would exclude: probationary employees, employees on time-limited appointments of one year or less, and all career excepted service employees, including the approximately 50,000 positions converted to Schedule Policy/Career effective March 7, 2026. These employees could be separated without the procedural protections such as retention register competition, bump and retreat rights, and CTAP/ICTAP priority placement.

Does the proposed rule affect veterans' preference in layoffs?

Yes, significantly. Under the current system, a veteran in Subgroup AD (30%+ disability) is categorically superior to any non-veteran regardless of performance. Under the proposed rule, veterans preference adds 5 or 3 points to the performance score. But a non-veteran with consistently Outstanding ratings (21 points) can outrank a veteran with Fully Successful ratings (9 points plus 3 equals 12 points). Veterans advocacy groups including NARFE have flagged serious concerns about this change.

What happens to MSPB appeal rights for RIF decisions?

The companion appeals rule is now FINAL (FR 2026-15666, effective September 2, 2026). RIF appeals go to OPM's Merit System Accountability and Compliance (MSAC) office, and the rule contains an explicit no-judicial-review provision: OPM's process is the sole and exclusive means of appealing a RIF. EEOC, OSC, IG, and DOL VETS collateral remedies survive. 99% of roughly 1,250 commenters opposed the transfer; OPM finalized it anyway.

A GS-12 with 15 years and Fully Successful ratings vs. a GS-12 with 5 years and Outstanding ratings: who survives?

Under the outgoing system, the 15-year employee likely survives with an adjusted SCD of 27 years vs. the 5-year employee's 25 years. Under the new system effective September 2, the 5-year employee with Outstanding ratings survives with 21 points vs. 9 points. This complete reversal is the intended outcome of the rule.

When could this rule take effect?

The final rule was signed July 31, 2026, published in the Federal Register August 3, and takes effect September 2, 2026. The transition is date-of-notice: a RIF notice issued before September 2 is processed entirely under the old rules; notices on or after September 2 use the new scoring system. No court challenge had been confirmed as of publication, though union suits on court-access grounds are widely expected.

How do I calculate my potential severance pay if I am laid off in a RIF?

Severance for a RIF separation is based on years of service: one week of basic pay per year for the first 10 years, two weeks per year beyond 10, plus a 2% per-year age adjustment over age 40. Use the Severance Pay Calculator to estimate your payout.

Should I consider early retirement (VERA) to avoid a potential RIF?

If your agency offers VERA, it lets you retire before normal eligibility without the standard age and service requirements. It eliminates the uncertainty of waiting to see if you survive a RIF. Use the VERA Eligibility Calculator to check eligibility. Keep in mind early retirement means a reduced FERS annuity due to fewer years of service.

Related resources

• RIF Survival Guide 2026: Complete guide to your rights, bump and retreat rules, CTAP/ICTAP, and severance
• OPM Performance Rating Rules 2026: How the companion forced distribution rule (2026-03619) affects your step increases and bonuses
• Schedule F / Schedule Policy Federal Employees 2026: What the March 7 conversion means for career protections
• VERA/VSIP Guide 2026: How voluntary early retirement and buyouts work for federal employees
• State of the Federal Workforce 2026: The broader DOGE-era restructuring context for federal workers
• Severance Pay Calculator: Estimate your RIF severance payout
• FERS Retirement Calculator: Model your annuity at any retirement age

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Sources:

• Federal Register 2026-04377: Reduction in Force (proposed rule)
• GovExec: OPM proposes new layoff rules emphasizing performance and reducing employee protections
• Federal News Network: OPM wants agencies to prioritize employees' performance, not tenure, during RIFs
• FedWeek: OPM Proposes to Increase Role of Ratings in RIF Retention
• Federal Register 2026-02576: Reduction in Force Appeals
• Federal Register 2026-03619: Performance Appraisal Forced Distribution
• FedSmith: Can OPM Revoke MSPB's Authority To Hear RIF Appeals?
• AFGE: Administration's Proposed Changes to RIF Rules Will Trigger Another Mass Layoff
• NARFE: OPM Proposed Rule Would Eliminate MSPB Appeals for RIFs
• OPM: Reductions in Force (RIF)
• eCFR: 5 CFR Part 351