RIFs: seniority no longer wins
Your last three ratings do.
A RIF notice can open early retirement. Check that before anything else.
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OPM proposed this in March 2026 and published the final rule on August 3, 2026 (91 FR 49178). It took effect September 2. Which rules apply to you depends on the date your RIF notice was issued. The full rule, including who is exempt, is in OPM’s new RIF rules.
1. What the rule does
The rule revises 5 CFR part 351, reworking subpart E (“Retention Standing”) and related sections. The governing statute, 5 U.S.C. 3502, requires OPM to give “due effect” to four factors when releasing employees in a RIF: tenure of employment, military preference, length of service, and performance ratings. Those four factors don’t change — what changes is the weight and order OPM assigns them.
It also ends bump and retreat rights and takes some groups out of RIF competition entirely; see the full guide for who.
2. The old order versus the new order
Under the old regulations, employees were classified on a retention register by tenure group, veterans’ preference, length of service, and performance — in that descending order. Within a subgroup, ranking ran by years of service, augmented by a performance credit. Seniority did the heavy lifting.
Now: tenure group → performance score (+ vet points) → subgroup → service date
Now employees are ranked within their competitive- or excepted-service tenure group on performance, augmented by veterans’ preference points. Ties go to the higher tenure subgroup, and remaining ties break on service computation date — meaning seniority drops from primary driver to final tiebreaker.
3. The scoring system: 7 / 5 / 3 / 0
Performance credit comes from your three most recent ratings of record, each converted to points and totaled.
| Rating of record | Points each | Three ratings |
|---|---|---|
| Outstanding | 7 | 21 max |
| Exceeds Fully Successful | 5 | 15 |
| Fully Successful | 3 | 9 |
| Minimally Successful / Unacceptable | 0 | 0 |
The spread is what matters. A consistently Outstanding employee carries 21 points; a consistently Fully Successful one carries 9. That 12-point gap is far larger than anything veterans’ preference or a tiebreaker can close.
4. What happens to veterans’ preference
Preference still counts — but its character changes. It used to work as a subgroup placement that lifted preference-eligible employees above non-preference employees in their tenure group; combined with solid tenure, that made many veterans close to untouchable in a RIF. Now it is an additive bonus of 5 or 3 points depending on eligibility category, stacked on top of the performance score: 5 for a 30%-or-more disabled preference eligible, 3 for others.
The practical consequence: preference is no longer a trump card. A preference-eligible employee with three Fully Successful ratings (9 + 5 = 14) ranks below a non-veteran with three Outstanding ratings (21 + 0 = 21).
5. Score your retention standing
Enter your three most recent ratings of record and your preference category to see where you land under the new rule.
Your ratings
Illustrative, based on the final rule — not an official determination. Scores only compare employees within the same competitive area and tenure group.
6. Fifteen years versus five years
The clearest way to see the shift is a head-to-head. Two GS-12s in the same competitive area, one with 15 years and steady Fully Successful ratings, one with 5 years and straight Outstanding ratings.
| 15 years, Fully Successful | 5 years, Outstanding | |
|---|---|---|
| Performance points | 9 | 21 |
| Under the old rules | Retained | Released |
| Under the new rule | Released | Retained |
A ten-year seniority advantage, erased. If you have spent a career assuming your service date protects you, that assumption is exactly what this rule targets.
7. The other rule: where you appeal
A separate rule moved RIF appeals from the MSPB to OPM itself. For notices issued on or after September 2, 2026, you have 30 calendar days after the RIF takes effect to appeal to OPM, filed online. Details are in RIF appeals move to OPM.
OPM’s legal argument is that MSPB’s jurisdiction over RIF appeals exists only by OPM regulation, not by statute — Congress having excluded RIF appeals from MSPB’s statutory jurisdiction in the Civil Service Reform Act of 1978 — so what OPM created by regulation it can revoke the same way. Federal employee unions dispute that reading. The rule provides no court review.
8. What it means for your retirement decision
The new rule leaves the retirement math unchanged and it is the part most people get wrong. Whether you separate or retire governs your annuity, your FERS supplement, and your health insurance for life.
If a RIF or early-out lets you retire on an immediate annuity — through Discontinued Service Retirement at age 50 with 20 years of service, or at any age with 25 — your pension starts now, and you can generally carry FEHB into retirement if you satisfied the five-year enrollment rule. Separate without retirement eligibility and you may be looking at temporary continuation of coverage and a deferred annuity years later.
Three things worth doing before you accept anything: verify your service record and ratings (they now carry far more weight), run a retirement estimate at each eligible date, and confirm the five-year FEHB rule in writing. The FERS supplement in particular has eligibility traps — it isn’t payable on a deferred retirement, and for a DSR before your MRA it doesn’t begin until you reach your MRA.
9. FAQ
Does seniority still protect you in a federal RIF?
Not much. Since September 2, 2026, employees in each tenure group are ranked by a score built from their last three performance ratings plus veterans’ preference points. Length of service only breaks ties. A 5-year employee with three top ratings now outranks a 15-year employee with three Fully Successful ratings.
How is the new RIF retention score calculated?
Each of your three most recent ratings of record earns points: Level 5 (Outstanding) 7, Level 4 5, Level 3 (Fully Successful) 3, and Levels 1 and 2 zero. Add 5 points if you are a 30%-or-more disabled preference eligible, or 3 for other preference eligibles. The maximum is 21, or 26 with the top preference.
Which RIF rules apply to me?
It depends on the date your specific RIF notice was issued. Notices issued on or after September 2, 2026 use the new scoring; earlier notices use the old rules, even if the RIF takes effect later.
Where do I appeal a RIF now?
For notices issued on or after September 2, 2026, appeals go to OPM, not the MSPB. You have 30 calendar days after the RIF takes effect, and appeals are filed online. The rule provides no court review.
What should I do about retirement if a RIF is coming?
Check whether you qualify for an immediate annuity. A RIF can open discontinued service retirement at age 50 with 20 years or at any age with 25. Retiring keeps your annuity and, if you meet the five-year rule, FEHB for life; separating without eligibility does not.