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:
- Tenure of employment (type of appointment—permanent, TERM, temporary, etc.)
- Veterans’ preference
- Length of service
- 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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