What changed: the new RIF rule took effect Sept 2, and early-out offers continue through 2026
Get Your Free Consultation
Talk one-on-one with a licensed financial professional who specializes in federal benefits. Completely free, no obligation.
By the FERS Made Easy editorial team · Last updated
Short answer: OPM's new reduction-in-force (RIF) rule took effect September 2, 2026. In a RIF, employees are now ranked first by performance credit plus veterans' preference, and tenure subgroup and length of service only break ties. OPM has also told agencies they may use Deferred Resignation Program (DRP) agreements of up to six months in FY 2026, and that it will approve early-retirement (VERA) requests through the end of calendar 2026. If you are offered an exit, the key question is whether you can take an immediate retirement or would leave on a deferred one.
What the new RIF rule changes (5 CFR Part 351)
- Performance comes first. Agencies add up your three most recent ratings of record from the four-year period: Level 5 = 7 points, Level 4 = 5, Level 3 = 3, and Levels 1 or 2 = 0.
- Veterans' preference adds points. Preference eligibles with a compensable service-connected disability of 30% or more get 5 extra points, and other preference eligibles get 3.
- Tenure and service date break ties. Employees are ranked within their tenure group, with tenure subgroup and length of service used as tie-breakers.
- Some employees don't compete in a RIF at all: people in initial probationary or trial periods, temporary or time-limited appointments of one year or less, and Schedule C and Schedule G employees.
- "Bump and retreat" is replaced by assignment rights to a position held by an employee with lower retention standing.
- OPM published a correction to the rule on September 15, 2026.
DRP and VERA in 2026
- In FY 2026, agencies may offer DRP agreements of up to six months, depending on their budgets.
- OPM says it will approve agency VERA requests through the end of calendar 2026.
- A DRP is a resignation, not a retirement. Whether you get an immediate annuity depends on whether you meet one of OPM's retirement rules on your separation date.
Your retirement options if you are offered an exit (confirm with HR)
- Early retirement (VERA or a RIF): age 50 with 20 years of service, or any age with 25 years, according to OPM.
- MRA+10: an immediate annuity at your Minimum Retirement Age with 10–29 years, reduced 5% a year for each year you are under 62 unless you have 20 years and the annuity starts at 60 or later. See MRA+10.
- Deferred retirement: if you leave with at least 5 years of creditable civilian service but can't retire yet, you can claim your annuity later (at 62 with 5 years, or at your MRA with 10 or 30 years). See Deferred vs. postponed.
- Your TSP: once you separate, you can start installments or withdrawals. See how long your balance could last with the TSP Withdrawal calculator, and read TSP withdrawal options.