Skip to main content

Reduction in Force (RIF) Impact

The recent Reduction in Force (RIF) process may feel overwhelming and challenging. We acknowledge the stress and uncertainty that accompany such transitions and aim to provide you with the necessary information and support.

If you are an NIH employee who received a RIF notice and you are at least 50 years old with 20 years of service, you may qualify for a Discontinued Service Retirement or voluntary retirement.

Contact the Retirement and Employee Benefits Branch by emailing your assigned HR Contact for Retirement and Benefits Counseling. Include this in the subject for prompt assistance: DSR Inquiry – Your Full Name (IC).

To learn more about retirement, refer to our FAQ page.

Employees Impacted by the July 14, 2025, Reduction in Force (RIF)

HHS Reduction in Force (RIF) Information

For more specific information on the Department’s reduction-in-force plan, please see HHS Workforce Optimization Initiative.

RIF Frequently Asked Questions for NIH Employees

View the NIH Reduction in Force FAQs to support you during this time.

Key Deadlines

Important Dates (Based on 7/14/2025 separation date)

  • 07/14/2025 - RIF Effective Date (Separation)
  • 07/15/2025 - Research Benefits & Career Options - Investigate FEHB TCC, FEGLI conversion, TSP, Retirement (DSR/Deferred)
  • 07/15/2025 - Apply for Unemployment - File a claim with your state agency ASAP.
  • 07/26/2025 – FEDVIP coverage ends.
  • 08/13/2025 - MSPB Appeal Deadline - Generally, 30 days from the effective date to file an appeal.
  • 08/26/2025 – Free extended FEHB coverage ends.
  • 09/12/2025 - FEHB TCC Election Deadline - Generally 60 days from separation/notice date to elect TCC.
  • 09/12/2025 - Marketplace SEP Deadline - Generally 60 days from loss of coverage for Special Enrollment.

Benefits Deadlines (Deadlines are generally from the date of separation)

  • FEGLI Conversion: 31 Days
  • FEHB TCC Election: 60 Days
  • Spouse FEHB / Marketplace: 60 Days
  • FLTCIP Portability: Automatic
  • HCFSA & LEX HCFSA: Contributions end immediately. You can request reimbursement for expenses incurred through the termination date.
  • Dependent Care FSA: You may be reimbursed until the end of the benefit period or the account is exhausted.

Financial Deadlines

  • Final Paycheck: Employees who are separated, effective July 14, 2025, will receive their last paycheck on August 1, 2025.
  • Lump Sum Leave: Employees with unused annual leave as of July 14, 2025, will receive a lump sum payment by August 15, 2025.
  • Severance Pay: Begins soon after separation, paid bi-weekly (if eligible).
  • Unemployment: Apply first week after separation (State rules vary).

Severance Pay

Severance Pay Eligibility

To be eligible for severance pay due to a RIF, you generally must:

  • Be serving in a permanent appointment (career or career-conditional).
  • Have completed at least 12 months of continuous service.
  • Be involuntarily separated (RIF qualifies).
  • Not to be separated for misconduct or delinquency.
  • Not be eligible for an immediate retirement annuity (including DSR).
  • Not have declined a "reasonable offer" for another federal position.
  • Crucial Distinction: Retirement vs. Severance

Note: If you meet the age and service requirements for any type of immediate retirement (Voluntary, Early Voluntary (VERA), or Discontinued Service (DSR)) at the time of your RIF separation, you are NOT eligible for severance pay. You must choose the retirement option.

Calculating Severance Pay

Your total severance pay entitlement is based on your years of creditable service and your age at separation. The total severance pay amount cannot exceed 52 weeks (one year) of your basic pay (regular salary rate plus locality pay or special rate supplements) at the time of separation.

Basic Severance Calculation:

  • First 10 Years of Service: 1 week of basic pay for each year.
  • Years of Service Over 10: 2 weeks of basic pay for each year.

Age Adjustment Factor:

  • If you are over 40 years old at separation, your basic severance pay amount is increased:
  • Add 10% to the basic amount for each full year you are over 40 years of age.

For information on how to calculate the approximate amount of severance pay for employees with non-variable work schedules, please see OPM’s Severance Pay Estimation Worksheet.

How Payments are Made

  • Severance pay is issued in regular, bi-weekly installments.
  • Each payment is equal to your basic pay for a pay period.
  • Payments will continue until one of the following happens:
    • The total severance amount is paid out;
    • 52 weeks of payments have been made;
    • You are reemployed by the Federal government;
    • You are employed by the DC government; or
    • You begin receiving an immediate retirement annuity (including DSR or disability retirement.)

Note: If payments stop due to reemployment, you may be required to repay any amount received that covers the period after your reemployment date.

Note: Accepting non-federal employment will not stop your federal severance payments.

Tax Implications

Severance pay is considered taxable income.

  • Subject to Federal Income Tax withholding.
  • Subject to Social Security (6.2%) and Medicare (1.45%) taxes.
  • Subject to State and Local income taxes (if applicable).
  • Reported on Form W-2 by your agency.
  • Cannot be rolled over into retirement accounts such as TSP or IRA.

Sources

NIH’s Priority Placement Programs

View the NIH Priority Placement Program (PPP) Handbook: Guidance for Displaced Employees.

Obtaining Copies of Your Official Personnel Folder and SF-50s (OPFs)

If you are a former Federal employee and less than 120 days have passed since separation, you may request a copy of your most recent SF-50 or your complete Official Personnel Folder by contacting your servicing HR Specialist. You must verify the following data points with your HR Specialist before obtaining any documents:

  • DOB
  • SSN
  • Personal Email address
  • Current Mailing Address
  • City of Birth

After the above information is verified, your HR Specialist will utilize the NIH Secure Email and File Transfer (SEFT) Service to provide you with your eOPF or requested SF-50s and other documents found in your eOPF. Non-NIH users can access SEFT when they receive an email from a NIH user sent through SEFT. The email message will contain a link that users can click on to register and access the secure email.

Please note: OPFs are retired to the National Personnel Records Center (NPRC) within 120 days after separation from federal employment.

If more than 120 days have lapsed since separation, you may obtain copies of most civilian and personnel records on file at the NPRC, including copies of the Standard Form 50 (SF-50) (Personnel Action) via written request by mail or fax to (618) 496-4903 or (618) 496-4904:

National Personnel Records Center, Annex
1411 Boulder Boulevard
Valmeyer, IL 62295

Federal law [5 USC 552a(b)] requires that all requests for records and information be submitted in writing. Each request must be hand-signed (in cursive) and dated (within the last year). Please identify the documents or information needed and explain the purpose of your request. Certain basic information is needed to locate civilian personnel records and to respond to your request, including:

  • Full Name (used during Federal employment)
  • Date of Birth
  • Social Security Number
  • Last Employing Agency (including duty station) and Approximate Beginning and End Date(s) of the Employment
  • Complete Return Mailing Address and/or Authorized Return Fax Number
  • Contact Number (if they need additional information)
  • Signature (hand signed in cursive and dated)

Who Are My HR Contacts

Find your servicing HR contact. For questions related to retirement or benefits, please email the Benefits team at [email protected].

Returning Government Issued Property

When separating, all employees are obligated to return government-issued property in their possession. Such property includes, but is not limited to:

  • ID badge
  • Equipment
  • Electronic devices
  • Phone
  • Access passes
  • Keys
  • Parking permits
  • Library material(s)
  • Credit and phone cards
  • Transhare and SmarTrip fare cards
  • Government-issued passports
  • Official electronic and paper records
  • Advanced funds
  • Payments received in expectation of extended employment where the allotted time period has not been completed.

Please work with your individual Administrative Officer (AO) for property return procedures.

Last Updated: