What is the Difference Between a RIF and a Transfer of Function?

While being separated from the organization can be a result of either a RIF or a Transfer of Function, these are two different kinds of personnel actions with differing rules and procedures. It is important to understand the differences between them.

Reduction in Force:

When an agency must abolish positions due to reorganization, shortage of funds, insufficient personnel ceiling, or lack of work, the RIF regulations establish procedures for determining how employees are released and whether an employee has retention rights to a different position. In determining who is affected by a RIF, agencies take 4 factors into account:

  1. Tenure of employment (type of appointment—permanent, TERM, temporary, etc.)
  2. Veterans’ preference
  3. Length of service
  4. Performance ratings

Transfer of Function:

A transfer of function takes place when a function ceases in one competitive area, and moves to one or more other competitive areas that do not perform the function at the time of transfer. OPM’s transfer of function regulations apply only when, after transfer, the gaining competitive area uses Federal employees to perform the function. For example, a transfer of function does not take place when after transfer the gaining competitive area performs the work through contract employees, a reimbursable agreement with a different competitive area, or by members of the Armed Forces. The movement of work solely within a competitive area is a reorganization, and is not a transfer of function.

A transfer of function also takes place when the entire competitive area moves to a different local commuting area without any additional organizational change. A transfer of function may be intra- or interagency. The transfer of function regulations use the same procedures for both types of transfers.

An employee has no right to transfer with the function unless the alternative in the competitive area losing the function is separation or demotion by reduction in force.

An agency may always direct an employee’s reassignment to another position (regardless of location) in lieu of transfer of function rights. The vacant position may be in the same or in a different classification series, line of work, and/or geographic location.

Finally, there are realignment actions that are not considered a transfer of function. An employee has no right to transfer with a function if, at the time of transfer, the gaining competitive area performs the same type of work as the function that is transferring from the losing competitive area. Also, an employee has no right to transfer if the function does not cease in the losing competitive area at the time of transfer. In these situations, the employee has a right to compete in a reduction in force in the losing competitive area if the agency does not offer the employee another position at the same grade. The offered position may be in the same or in a different local commuting area. The agency must use adverse action procedures to separate an employee who declines relocation (e.g., by reassignment, change of duty station, realignment, etc.) to a different local commuting area.

As you can see, this gets pretty complicated and employees’ individual situations matter. This is just intended as a basic overview. Again, it is important to understand the nuances and recognize that different actions have different procedures and employee rights.

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Think You Might Get RIF’d?

It is a challenging period for federal employees. The Office of Personnel Management (OPM) estimates that the federal workforce will have 350,000 fewer employees by the end of 2025. Additional cuts are expected for 2026. So it behooves every federal employee to prepare for further potential cuts. Here are 7 things to know about:

  1. Get a copy of your eOPF and check it carefully to ensure it is complete and accurate. Alert your HR office in writing of any problems. While you can still request your eOPF after separation, several media outlets are reporting that HR offices are overwhelmed with requests and HR staffs are depleted. The sooner you start, the better. And it is best practice to keep a hard copy of every SF-50 whether or not you think you might leave the government.
  2. If you are RIF’d and in the competitive service, you are entitled to advanced notice and appeal rights. Excepted service rights are more complicated and depend on individual situations and agencies. Again, if you plan to appeal, recognize that the Merit Systems Protection Board (MSPB), the Equal Employment Opportunity Commission (EEOC), and similar agencies are also overwhelmed and resolution is unlikely to be quick.
  3. You should not wait to start considering your options. The current job market is challenging and most recruiters are suggesting job searches will take 6-9 months—or more. Of course, you could be the exception but why take the chance?
  4. What about becoming a contractor? Federal contractors have been a traditional place for separating federal employees to land. However, many federal contractors are also laying off staff,. especially in the National Capitol Region, so targeting federal contractors only may not be the answer for everyone.
  5. What about getting another federal job? Competitive service employees who are RIF’d have CTAP (Career Transition Assistance Program) and ICTAP (Interagency Career Transition Assistance Program) rights. Basically employees who have been RIF’d must receive priority consideration in their own agency (CTAP) or in another federal agency (ICTAP) for positions at their grade or below in the same commuting area if they  are rated well qualified or higher. CTAP and ICTAP candidates must be offered a position before someone from outside the advertising agency is selected. RIF’d employees interested in exercising their CTAP / ICTAP rights must follow the instructions on the vacancy announcement. https://www.opm.gov/policy-data-oversight/workforce-restructuring/employee-guide-to-career-transition/
  6. Can I come back to the government if I retire? The short answer is yes—in many cases. Employees in this category are called reemployment annuitants. The specific rules and impact on a person’s annuity depend on the applicant’s  retirement system and the kind of reemployment. https://www.fedweek.com/experts-view/want-to-un-retire-returning-to-work-for-the-government/
  7. Ethics requirements can be complicated depending upon your federal position and agency. Employees should check with their Ethics Officer before reaching out to potential employers. https://www.fedweek.com/issue-briefs/oge-addresses-post-employment-restrictions-other-ethics-issues-for-deferred-resignation/

This is just a brief overview of things to be thinking about if you believe you might be RIF’d. Individual circumstances vary and it is those individual circumstances which affect eligibility and other details.