September 1992

I.  RETIREMENT


Basic Requirements (CSRS or FERS)  In order to be eligible for retirement, you must meet basic requirements, which include:

  1. A minimum of five years of civilian service; and
  2. Except for retirement due to total disability, employment subject to the retirement law for at least one of the last two years immediately preceding the separation on which the retirement is based.

Optional Retirement  Is based on a combination of age and service. If you are under the retirement system you would be eligible for optional retirement with an immediate annuity upon separation if you have at least:

  1. 5 years of civilian service and are age 62, or
  2. 20 years of service and are age 60, or
  3. 30 years of service and are age 55.

Discontinued Service Retirement  is based on involuntary separation. An immediate annuity is payable to you upon involuntary separation, not for cause, if you have at least,

  1. 20 years of service and are age 50, or
  2. 25 years of service, regardless of age.

You are not entitled to retirement upon involuntary separation from the service if you have declined a reasonable offer to another position in lieu of RIF or TOF. Generally, a "reasonable offer" is a written offer of another position for which you are qualified, which is:

  1. No more than the equivalent of two grades below your current grade,
  2. In your agency, and
  3. Within your commuting area.

Deferred Retirement  If you do not meet the requirements for an immediate annuity, you are entitled to a deferred annuity to commence at age 62 if you have:

  1. At least five years of civilian service, and
  2. Employment under the retirement system for at least one year within the two-year period preceding separation.

You may obtain additional information regarding Deferred Retirement from your Civilian Personnel Office (CPO).

Combining Military and Civilian Experience Toward Retirement  Major provisions of the Civil Service Retirement System require deposits for certain civilian and military service performed on or after January 1, 1957 (referred to as post-1956) to receive credit for that time in determining length of service for retirement purposes and/or computation of annuity. In either case, you must have completed five years of civilian service and must have been employed under the retirement system for at least one year during the two-year period immediately preceding the separation on which the annuity is based.

Military service performed prior to January 1, 1957 is included in the computation of the annuity regardless of whether a deposit is made after December 31, 1956.

Military service performed on or after January 1, 1957 is covered by Social Security and the time served may be credited toward both Civil Service annuity and Social Security benefits only under certain conditions.

Employees first hired by the Federal Government on or after October 1, 1982 in positions subject to the Civil Service Retirement System will receive credit for post-1956 military service at the time of retirement only if they have made a deposit for the military service, whether or not they become eligible for Social Security benefits.

Military Retirees  Employees in receipt of retired military or retainer pay may waive such pay and receive credit under the Civil Service Retirement System by paying a deposit for post-1956 military service. Credit may be allowed for Civil Service retirement if the military retired pay was awarded on account of service-connected disability caused by an instrumentality of war and incurred in the line of duty during a period of war, or under the provisions of Chapter 57 or Title 10, United States Code. (These provisions grant retired pay to members of reserve components of the armed forces on the basis of age and service instead of disability.) The basic requirement for reserve retirees is the attainment of age 60 with the completion of 20 years of service.

Non-Deduction Civilian Service  Civilian service performed before October 1, 1982 for which retirement deductions were not taken is counted as creditable service in determining length of service for entitlement to an annuity. If the employee elects not to make a deposit, the annuity is reduced by ten percent of the amount which should have been deposited (plus interest) for the non-deduction service.

Civilian Service performed on or after October 1, 1982 for which retirement deductions were not taken will be included as creditable service in determining length of service for entitlement to an annuity. However, a deposit with interest will be required in order to count the service for use in the computation of annuity. Employees do not have the option of taking a ten percent reduction of the amount owed.

II.  ANNUAL AND SICK LEAVE


Annual Leave  You will receive a lump sum payment for accumulated annual leave to your credit at the time of separation. Payment is authorized for:

  1. Regular carry-over balance from the previous year, if any;
  2. Leave accrued and unused during the current leave year;
  3. Any unused restored annual leave maintained in a separate account.

Leave is not earned during the period covered by the lump sum payment; nor will the payment be subject to retirement deductions. If you are reemployed in the Federal Service within the period covered by leave for which you were paid, you must refund the amount of payment which covers the unexpireed portion of your regular annual leave. You will then be re-credited with the amount of leave covered by the refund. However, any restored annual leave which was maintained in a separate account and included in a lump sum payment is not subject to refund and may not be re-credited if you are reemployed prior to the expiration of the lump sum period. If you obtain another position in the Federal Service prior to your scheduled separation, your unused annual and sick leave will be transferred to your new agency.

Sick Leave  You will not be paid for sick leave to your credit at the time of your separation. However, it will be restored to your credit if your are reemployed in the Federal Service or by the Government of the District of Columbia within three years from the date of your separation.

III.  SEVERANCE PAY


Eligibility  You may be entitled to severance pay if your separation is involuntary, and on the date of separation you have been on the rolls in the Federal Service in a qualifying appointment for at least the preceding twelve calendar months. Service in temporary appointments which follow non-temporary service may be creditable for severance pay provided there was no break in service of more than three calendar days between appointments and you were involuntarily separated. Separation by Reduction In Force and resignation in lieu of Reduction In Force are considered to be involuntary separations provided you have received a specific written notice of separation because of Reduction In Force. Entitlement applies to full-time and part-time employees with regularly pre-scheduled tours of duty who have not declined reasonable offers and are otherwise eligible. Specific questions regarding eligibility for severance pay should be directed to your CPO.

Ineligibility for Severance Pay  There are several conditions which would exclude you from entitlement to severance pay (e.g., retirement eligibility, declination of an offer of a position, etc.). Contact your CPO for further information.

Reemployment  If you are in receipt of severance pay and you are reemployed by the Federal Government in a career or career-conditional appointment or the equivalent in the excepted service, payments will be discontinued beginning with the date of reemployment.

Temporary Reemployment  Reemployment in a temporary limited appointment will interrupt or defer severance pay until such appointment is terminated. The period of temporary appointment is not creditable for purposes of computing the severance pay it interrupts.

Computation of Severance Pay  Severance pay is computed on the basis of the following two elements:

  1. Basic Severance Allowance:

    1. One week's basic compensation at the basic pay rate received immediately before involuntary separation for each of the first ten years of creditable service; plus,
    2. Two week's basic compensation for each year of creditable service beyond ten years. You will be credited with 25% of the otherwise applicable amount for each full three months of creditable service beyond the final full year.

  2. Age adjustment Allowance: Severance pay allowance is augmented by an age adjustment allowance equal to 2.5 percent of the basic severance pay allowance for each full three months of age over 40 years.

Total severance pay is the sum of the basic severance allowance and the age adjustment allowance.

Maximum Allowance  Total severance pay may not exceed one year's pay at the rate received immediately before separation. There is a lifetime 52-week limit on the number of weeks an employee can be entitled to severance pay.

Methtod of Payment  Severance pay will be paid to you at the same basic rate and pay period intervals which existed immediately before separation until the severance pay is exhausted. Payment is equal to your rate of basic pay less taxes, Medicare, and FICA (Federal Insurance Contribution Act) as appropriate.

IV.  FEDERAL HEALTH BENEFITS PROGRAM (FHBP)


If you are enrolled in the FHBP, you should receive a Standard Form 2810 Notice of Change in Health Benefits Enrollment, indicating termination of your coverage upon separation subject to a 31-day temporary extension for conversion to a nongroup contract. You also may elect temporary continuation of your FHBP coverage for up to 18 months after separation instead of converting to a nongroup contract. Your CPO can provide additional information.

If you are retiring, you may elect to continue health benefits coverage as an annuitant with no change in benefits and Government contributions. The cost may be deducted from the annuity payments. Certain requirements must be met in order to continue this coverage. Contact your CPO for further information regarding these requirements.

V.  FEDERAL EMPLOYERS GROUP LIFE INSURANCE (FEGLI)


If you have basic FEGLI coverage, you will receive a Standard Form 2619, Notice of Conversion Privilege, or a Standard Form 2821, Agency Certification of Insurance Status. These forms fully explain the right to convert to an individual policy. If you wish to convert, the SF-2821 must be sent to the Office of FEGLI within 31 days after the insurance stops, or within 15 days after notification of the conversion privilege (whichever allows the most time).

If certain conditions are met, retiring employees will be eligible to continue basic life insurance (not accidental death and dismemberment) and may also retain optional insurance (not accidental death and dismemberment) if they are eligible to continue basic life insurance.

VI.  GRADE RETENTION


Eligibility Requirements for Grade Retention  To be eligible for grade retention if you are placed in a lower graded position as a result of a Reduction In Force, you must have served for 52 consecutive weeks at (a) grade(s) higher than the position in which placed. Any 52 consecutive weeks will satisfy this requirement.

(NOTE: If you are reduced in grade as a result of a reclassification process, the downgraded position you occupy must have been classified at a higher grade for at least one year immediately preceding your placement in the lower grade. The length of time you occupied the position is irrelevant.)

AR 690-990-2, BK 536,S3-1b provides additional information relating to situations which warrant grade retention.

In circumstances not covered, authority to grant grade retention has been delegated to MACOM commanders by DAFE-CPE Msg 1713408 Aug 90, Subject: "Delegation of Grade & Pay Retention Approval Authority".

Period of Grade Retention  If you are eligible for grade retention, you are entitled to retain your permanent grade for two years beginning on the date you are placed in the lower graded position. If, during the two-year period, you are further reduced in grade, also entitling you to grade retention, you will continue to retain the previous retained grade for the remainder of the original two-year period. At the end of that period, you will retain the grade from which you were further reduced until two years have passed form the date of the second demotion.

During the grade retention period, your retained grade will be treated as your grade for pay and pay administration purposes. For example, your retained grade is treated as your grade for within-grade increases, premium pay, comparability increases, wage adjustments and special rate increases, retirement, life insurance, and eligibility for promotion and training as determined by appropriate law and regulations. The retained grade is not used for the purpose of applying Reduction In Force procedures. In most cases, you will simply remain in the same step and continue to receive the same rate of basic pay based on your retained grade. There are some circumstances when it is not feasible or administratively possible for employees to continue in the same step and/or same rate of basic pay due to various special rate and regular wage schedules developed on the basis of geographic area (e.g., a move from or to a differenc geographic area where there is a change in the applicable rate schedule, a change to a different occupational series involving a change from or to a special rate schedule, etc.)

Loss of Eligibility for or Termination of Grade Retention  will occur under any of the following circumstances:

  1. Break in service of one work day or more;
  2. Demotion for personal cause or at employee's request;
  3. Placement in a position at a grade equal to or higher than the retained grade;
  4. Declination of a reasonable offer of a position, the grade of which is equal to, or higher than, the retained grade;
  5. Election in writing to have the benefits of grade retention terminated; or
  6. Non-compliance with registration required under Priority Placement programs.


VII.  PAY RETENTION


Eligibility for Pay Retention  applies when any of the following conditions occur:

  1. Expiration of the two-year grade retention period; or
  2. Reduction In Force or reclassification when an employee does not meet the eligibility requirements for grade retention; or
  3. Reduction or elimination of special rate schedules; or
  4. Placement in a lower wage area or in a different pay schedule; or
  5. Placement in a formal employee development program utilized Government-wide; or
  6. Placement involving changes from or to special rate positions.

AR 690-990-2, BK 536, S3-2b provides additional information relating to situations which warrant pay retention.

In circumstances not covered, authority to grant pay retention has been delegated to MACOM commanders by DAPE-CPE Msg 1713402 Aug 90, Subject: "Delegation of Grade & Pay Retention Approval Authority".

When you become entitled to pay retention  or you move to another position while receiving pay retention:

  1. You will receive the rate of basic pay which equals or exceeds your current rate of pay. Pay retention does not apply if your rate of basic pay can be accommodated in the rate range of the position to be occupied; or
  2. You will retain either your current rate of basic pay, if your current rate of basic pay exceeds the maximum rate of the position to be occupied; or, 150% of the maximum rate of basic pay of the new grade, whichever is less.

If comparability or wage adjustment increases occur while you are under pay retention, you will receive 50% of the amount of the increase in the maximum rate of basic pay for the grade of the position you occupy.

Loss of eligibility for or termination of pay retention  occurs under any of the following circumstances:

  1. Break in service of one work day or more; or
  2. Demotion for personal cause or at employee's request; or
  3. Entitlement to a rate of basic pay which is equal to, or higher than the retained rate; or
  4. Declination of a reasonable offer to a position for which the rate of basic pay is equal to or higher than the retained rate.


VIII.  SPECIAL CONSIDERATION FOR REPROMOTION


Special consideration for repromotion will be given to eligible employees before choosing to fill vacancies by competition. Eligibility normally includes current Department of the Army employees who:

  1. Are in the area of consideration for the position;
  2. Have been involuntarily placed in lower graded positions without personal cause and not at their request; and
  3. Are receiving grade, pay, or salary retention benefits.

The extent of coverage (such as length of time or number or referrals, positions covered, effect of declinations, etc.) for employees who are not receiving retention benefits, but have been changed to a lower grade without personal cause and not at their request, is determined by the applicable local merit promotion plan.

Other restrictions and time limits apply. Additional information may be obtained from your CPO.

IX.  PLACEMENT ASSISTANCE PROGRAMS


Over the years the Department of Defense has developed a reputation for making a maximum effort to minimize the adverse effects of Reduction In Force. In this regard, there are a number of programs available to assist employees in locating acceptable employment:

Department of Defense (DoD) Priority Placement Program (PPP)  Upon registration in this program, you will be certified to DoD installations where you are willing to accept employment and where vacancies are likely to exist or occur. This is accomplished by means of Stopper Lists and Priority Placement Resumes. Normally, when an installation has a vacancy to be filled that matches your skills, acceptable grade, priority for placement, service status (competitive or excepted service status), the installation is required to make you an offer of employment. Upon acceptance of this offer, necessary arrangements are made for your travel and transportation to the new location. Moving costs are paid by the Government to the maximum extent permitted under Joint Travel Regulations.

CIPMS employees are eligible for registration in the DoD PPP. CIPMS employees who have either personal competitive status (from prior work in the competitive service), or Interchange eligibility, are eligible for registration for both competitive and excepted service vacancies. Priority level determination and registration procedures are the same for CIPMS employees as for employees in the competitive service.

Defense Intelligence Special Career Automated System (DISCAS)  provides special administrative referral assistance to Intelligence positions throughout DoD. CIPMS employees scheduled for RIF separation who are registered in DISCAS may be referred from the time of official notification for up to 12 months following separation. This is not a mandatory placement program, but it provides an additional source of referral for RIF-affected CIPMS employees.

The Defense Outplacement Referral System (DORS)  is an automated referral system established through a cooperative effort between DoD and OPM. The purpose of DORS is to provide maximum placement opportunity for current DoD personnel and their spouses who may be adversely affected by downsizing. Referral will be to other DoD activities, non-DoD Federal agencies and private industry, including state and local governments. Registration and placement through DORS is strictly voluntary and should not be confused with the DoD Priority Placement Program (PPP), which affords mandatory placement of DoD employees to DoD positions. Eligibility for DORS typically occurs prior to eligibility for the PPP.

Local Placement Programs  are normally established by Civilian Personnel Offices. Such programs establish contacts with local Federal , State, and private employers in an effort to locate acceptable employment opportunities for employees who desire to remain in the local area. Depending upon the specific circumstances, it may be possible for the servicing Civilian Personnel Office to contract with private outplacement agencies to assist those personnel who face involuntary separation as a result of base closure and realignment or downsizing of the Army.

Reemployment Priority Lists (RPL)  give separated employees priority consideration over outside applicants for local vacancies as they occur. Though CIPMS employees are not eligible for the competitive service RPL, servicing CPOs may establish local RPLs for separated employees following guidance in FPM chapter 213 for excepted service programs. You may obtain specific information regarding the RPL from your CPO.

X.  HOMEOWNERS ASSISTANCE


The Homeowners Assistance Program (HAP)  is a program established by PL 89-754 to buy the homes of Federal employees living in an area affected by base closure or realignment where an adverse economic impact on the area real estate market is documented. The US Army Corps of Engineers was designated by law as the Executive Agent for this program. Additional information on program eligibility and requirements may be obtained from your CPO.

The Department of the Army Relocation Services for Employees (DARSE)&nsp is authorized by PL 98-151. This program provides relocation services for eligible Department of the Army civilian employees transferring for the benefit of the government within the United States and its possessions. Information pertaining to eligibility and specific services provided may be obtained from your servicing CPO.

XI.  ADDITIONAL INFORMATION


The information provided in this document is intended to provide CIPMS employees with general guidance relating to the various programs and benefits for which they may be eligible in the event of Reduction In Force (RIF) or Transfer of Function (TOF). Due to space limitations, it is not possible to fully describe all of the benefits available in every situation. The best source of specific information is the servicing CPO. RIF and TOF notification letters contain the names, locations and telephone numbers of the CPO points of contact for review of information and counseling as required.