Title: VOLUNTARY EARLY RETIREMENT (VER) AND OTHER WORKFORCE RESHAPING LEGAL ISSUES
1VOLUNTARY EARLY RETIREMENT (VER) AND OTHER
WORKFORCE RESHAPING LEGAL ISSUES
2OVERVIEW
- LEGAL ISSUES RELATING TO VER
- Legal Authorities Governing VER
- Other Office of Personnel Management (OPM) VER
Resources - OPM Approval of VER Offer
- Scope of VER Offer
- Criteria for Civil Service Retirement System
(CSRS)/Federal Employees Retirement System (FERS)
VER Eligibility
3OVERVIEW (contd)
- LEGAL ISSUES RELATING TO OTHER WORKFORCE
RESHAPING TOPICS - Avoidance of Reduction in Force (RIF) Actions for
Veterans Preference Eligible Bargaining Unit
Employees
4LEGAL ISSUES RELATING TO VER
- LEGAL AUTHORITIES GOVERNING VER
- Statutes
- CSRS Title 5 of the United States Code, Section
8336(d)(2) - FERS Title 5 of the United States Code, Section
8414(b)(1)(B)
5LEGAL ISSUES RELATING TO VER (contd)
- LEGAL AUTHORITIES GOVERNING VER (contd)
- Regulations
- CSRS Title 5 of the Code of Federal
Regulations, Section 831.114 - FERS Title 5 of the Code of Federal
Regulations, Section 842.213
6LEGAL ISSUES RELATED TO VER (contd)
- OTHER OPM VER RESOURCES
- Voluntary Early Retirement Authorities Agency
Guide to Implementing Early Retirement Programs
(www.opm.gov/employ/vera/vera01.htm) - Note The current issue of this publication is
dated August 2000 and does not include recent
revisions in the VER statutes and regulations.
7LEGAL ISSUES RELATED TO VER (contd)
- OTHER OPM RESOURCES (contd)
- CSRS and FERS Handbook for Personnel and Payroll
Offices, Chapter 43 (www.opm.gov/asd/htm/hod.htm) - Note The current issue of this publication is
dated April 1998 and does not include recent
revisions in the VER statutes and regulations.
8LEGAL ISSUES RELATING TO VER (contd)
- OPM APPROVAL OF VER OFFER
- An agency must obtain approval from OPM prior to
offering CSRS/FERS VER.
9LEGAL ISSUES RELATING TO VER (contd)
- OPM APPROVAL OF VER OFFER (contd)
- OPM may only grant approval for an agency to
offer CSRS/FERS VER if OPM has determined, based
on information provided by the agency, that the
one of the following exists - the agency (or a component) is undergoing
substantial delayering, substantial
reorganization, substantial RIFs, substantial
transfer of function, or other substantial
workforce restructuring or shaping OR
10LEGAL ISSUES RELATING TO VER (contd)
- OPM APPROVAL OF VER OFFER (contd)
- a significant percentage of employees serving in
the agency (or component) are likely to be
separated or subject to an immediate reduction in
the rate of basic pay (without regard to the
statutes providing for grade/pay retention under
specified circumstances) OR
11LEGAL ISSUES RELATING TO VER (contd)
- OPM APPROVAL OF VER OFFER (contd)
- employees have been identified as being in
positions which are becoming surplus or excess to
the agencys future ability to carry out its
mission effectively.
12LEGAL ISSUES RELATING TO VER (contd)
- OPM APPROVAL OF VER OFFER (contd)
- OPM generally grants an agency approval to offer
and process VERs for a specified time.
13LEGAL ISSUES RELATING TO VER (contd)
- SCOPE OF VER OFFER
- Within the parameters of OPMs VER approval, an
agency may further define the scope of the VER
offer on the basis of - 1 or more organizational units OR
- 1 or more occupational series or levels OR
- 1 or more geographic locations OR
14LEGAL ISSUES RELATING TO VER (contd)
- SCOPE OF VER OFFER (contd)
- specific periods OR
- skills, knowledge, or other factors related to a
position OR - any appropriate combination of the above factors.
15LEGAL ISSUES RELATED TO VER (contd)
- SCOPE OF VER OFFER (contd)
- Within the parameters of OPMs VER approval, an
agency may choose to not only offer VER to those
employees in positions which are directly
impacted by the relevant organizational event,
but also to employees in non-impacted positions
which reasonably may provide landing spots for
employees in impacted positions.
16LEGAL ISSUES RELATED TO VER (contd)
- SCOPE OF VER OFFER (contd)
- Within the OPM-approved VER period, an agency may
limit CSRS or FERS VER offers by establishing
window periods based on - opening and closing dates that are announced to
employees at the time of the VER offer AND/OR
17LEGAL ISSUES RELATED TO VER (contd)
- SCOPE OF VER OFFER (contd)
- the acceptance of a specified number of VER
applications, provided that at the time of the
VER offer, the agency notified employees that it
retained the right to limit the number of VERs on
that basis.
18LEGAL ISSUES RELATED TO VER (contd)
- SCOPE OF VER OFFER (contd)
- Under this authority, an agency may establish an
opening and closing date for receipt of VER
applications, but also provide that of the VER
applications received by the closing date, the
agency will only approve a specified number.
19LEGAL ISSUES RELATING TO VER (contd)
- SCOPE OF VER OFFER (contd)
- Under this authority, an agency may establish an
opening and closing date for receipt of VER
applications, but also provide that if a
specified number of VER applications are received
prior to the closing date, the VER offer will
terminate.
20LEGAL ISSUES RELATING TO VER (contd)
- SCOPE OF VER OFFER (contd)
- Under this authority, an agency may provide that
a submitted VER application cannot be withdrawn
after the established closing date for receipt of
VER applications.
21LEGAL ISSUES RELATED TO VER (contd)
- SCOPE OF VER OFFER (contd)
- Under this authority, an agency may set the date
by or on which employees whose VER applications
have been approved must separate. If the agency
has not set such a separation date, employees
must separate by the end of the OPM-approved VER
period.
22LEGAL ISSUES RELATED TO VER (contd)
- SCOPE OF VER OFFER (contd)
- When managements downsizing or reshaping needs
change, the agency subsequently may, within the
OPM-approved VER period - revise (by shortening or lengthening) a
previously-established closing date, which must
be announced to the same group of employees
included in the original announcement OR
23LEGAL ISSUES RELATING TO VER (contd)
- SCOPE OF VER OFFER (contd)
- revise (by increase or decrease) a
previously-established number of VER applications
it will accept, which must be announced to the
same group of employees included in the original
announcement OR
24LEGAL ISSUES RELATING TO VER (contd)
- SCOPE OF VER OFFER (contd)
- establish a new window period through new opening
and closing dates or a new instance of a
specified number of VER applications which will
be accepted, which may be announced to a
different group of employees as long as they are
covered by OPMs VER approval.
25LEGAL ISSUES RELATING TO VER (contd)
- CRITERIA FOR CSRS/FERS VER ELIGIBILITY
- The employee must be serving in a position
covered by the VER offer.
26LEGAL ISSUES RELATED TO VER (contd)
- CRITERIA FOR CSRS/FERS VER ELIGIBILITY (contd)
- The employee must have completed at least 20
years of creditable service and be at least 50
years of age OR must have completed at least 25
years of creditable service and be any age.
27LEGAL ISSUES RELATED TO VER (contd)
- CRITERIA FOR CSRS/FERS VER ELIGIBILITY (contd)
- Of the 20 or 25 years of creditable service, at
least 5 of those years must be creditable
civilian service (career or noncareer). Military
service may be used to meet the balance of either
creditable service requirement.
28LEGAL ISSUES RELATED TO VER (contd)
- CRITERIA FOR CSRS/FERS VER ELIGIBILITY (contd)
- Accumulated sick leave and accumulated annual
leave may not be used to meet the 20- or 25-year
creditable service requirement.
29LEGAL ISSUES RELATED TO VER (contd)
- CRITERIA FOR CSRS/FERS VER ELIGIBIILTY (contd)
- Note The annuities of CSRS and CSRS Offset
employees will be reduced by 2 for each year (or
1/6 of 1 for each full month) they are under the
age of 55. This reduction is permanent the
annuity will not be recomputed at the unreduced
rate when the employee reaches the age of 55.
30LEGAL ISSUES RELATING TO VER (contd)
- CRITERIA FOR CSRS/FERS VER ELIGIBILITY (contd)
- Note For FERS employees with frozen CSRS
components, the portion of their annuities based
on benefits they accrued and retained under CSRS
frozen service is subject to the reduction
referred to above for CSRS/CSRS Offset employees.
31LEGAL ISSUES RELATED TO VER (contd)
- CRITERIA FOR CSRS/FERS VER ELIGIBILITY (contd)
- The employee must have been employed continuously
by the agency for which OPM has granted VER
approval for at least the 31-day period ending on
the date on which the agency requested VER
approval from OPM.
32LEGAL ISSUES RELATED TO VER (contd)
- CRITERIA FOR CSRS/FER VER ELIGIBILITY (contd)
- The employee must be serving under an appointment
that is not time limited. - The employee must not have been notified that
he/she is to be involuntarily separated for
misconduct or unacceptable performance.
33LEGAL ISSUES RELATING TO VER (contd)
- CRITERIA FOR CSRS/FERS VER ELIGIBILITY (contd)
- CSRS employees must be covered by CSRS for at
least 1 year within the 2-year period immediately
preceding the separation on which the annuity is
based, although the 1 year of service does not
have to be continuous.
34LEGAL ISSUES RELATING TO OTHER WORKFORCE
RESHAPING TOPICS
- AVOIDANCE OF RIF ACTIONS FOR VETERANS PREFERENCE
ELIGIBLE BARGAINING UNIT EMPLOYEES - When a personnel action qualifying as a RIF
action is taken against a veterans preference
eligible Postal Service employee, that employee
is entitled to application of the federal RIF
statutes and OPMs RIF regulations.
35LEGAL ISSUES RELATING TO OTHER WORKFORCE
RESHAPING TOPICS (contd)
- AVOIDANCE OF RIF ACTIONS FOR VETERANS PREFERENCE
ELIGIBLE BARGAINING UNIT EMPLOYEES (contd) - RIF actions occur when
- an agency releases a competing employee from
his/her competitive level by - furlough for more than 30 days OR
- separation OR
- demotion OR
- reassignment requiring displacement,
- AND
36LEGAL ISSUES RELATING TO OTHER WORKFORCE
RESHAPING TOPICS (contd)
- AVOIDANCE OF RIF ACTIONS FOR VETERANS PREFERENCE
ELIGIBLE BARGAINING UNIT EMPLOYEES (contd) - the release was required because of
- lack of work OR
- shortage of funds OR
- insufficient personnel ceiling OR
- reorganization OR
- the exercise of reemployment rights or
restoration rights OR - reclassification of an employees position due to
erosion of duties when such action will take
effect after an agency has formally announced a
RIF in the employees competitive area and when
the RIF will take effect within 180 days.
37LEGAL ISSUES RELATING TO OTHER WORKFORCE
RESHAPING TOPICS (contd)
- AVOIDANCE OF RIF ACTIONS FOR VETERANS PREFERENCE
ELIGIBLE BARGAINING UNIT EMPLOYEES (contd) - For the purposes of RIF, a demotion means the
change of an employee to a lower grade or to a
position with a lower rate of pay.
38LEGAL ISSUES RELATING TO OTHER WORKFORCE
RESHAPING TOPICS (contd)
- AVOIDANCE OF RIF ACTIONS FOR VETERANS PREFERENCE
ELIGIBLE BARGAINING UNIT EMPLOYEES (contd) - In order to avoid creating a RIF action requiring
application of the RIF statutes and regulations
for a veterans preference eligible bargaining
unit employee, the employee must not be demoted
during the course of workforce reshaping.
39LEGAL ISSUES RELATING TO OTHER WORKFORCE
RESHAPING TOPICS (contd)
- AVOIDANCE OF RIF ACTIONS FOR VETERANS PREFERENCE
ELIGIBLE BARGAINING UNIT EMPLOYEES (contd) - Assignment of excess bargaining unit employees
must be in accordance with the applicable
provisions of the appropriate collective
bargaining agreement and memoranda of
understanding.
40LEGAL ISSUES RELATING TO OTHER WORKFORCE
RESHAPING TOPICS (contd)
- AVOIDANCE OF RIF ACTIONS FOR VETERANS PREFERENCE
ELIGIBLE BARGAINING UNIT EMPLOYEES (contd) - Merit System Protection Board and Federal Circuit
cases deciding when a demotion for RIF purposes
has taken place