Displaced Employee Fact Sheet

Benefit and Entitlement Information

To comply with the general information requirements in Section 351.803 of title 5, Code of Federal Regulations (CFR) and provide basic information concerning the right to reemployment consideration, career transition assistance, and benefits and entitlements for employees adversely affected by reduction in force (RIF), or transfer of function (TOF) outside of the commuting area, the Department of Defense (DoD) compiled the Displaced Employee Guide (DEG). DoD activities must ensure that a copy of the DEG is provided to all employees adversely affected by Reduction in Force or Transfer of Function, and to those entitled to grade retention. The DEG must be provided to each employee with his or her specific notice of separation or change to lower grade. The DEG may also be distributed to employees immediately upon announcement of any planned reorganization or transformation action. Activities must insert a copy of the Merit Systems Protection Board (MSPB) Appeals Regulations and Appeal Form when issuing the DEG. Activities must also include any negotiated grievance procedures that apply.

Below is a synopsis of some programs that are covered in more detail in the DEG:

  • Priority Placement Program (PPP) isan automated, mandatory placement program used to match eligible displaced employees with vacant DoD positions. The PPP is the cornerstone of the Department’s transition assistance programs.
  • Interagency Career Transition Assistance Plan (ICTAP) gives eligible, well-qualified employees priority placement status for jobs in other Federal agencies within the same commuting area if the agencies are hiring from outside of their current workforce.
  • Reemployment Priority List (RPL) is administered under procedures established by the Office of Personnel Management to match displaced employees with vacant DoD positions within the commuting area.
  • Voluntary Early Retirement Authority (VERA) allows employees to take an early retirement if there is a need to reduce or restructure the workforce. VERA may be offered to all eligible employees or it may target specific groups of employees.
  • Lump-Sum Severance Pay provides eligible DoD employees the option to receive severance pay in a lump sum rather than the usual bi-weekly installments.
  • Automatic Waiver of Federal Employee Health Benefit (FEHB) Minimum Participation Requirements allows DoD employees to continue FEHB coverage into retirement even if they don’t meet the standard requirement of having been enrolled in the program for 5 years.
  • Unemployment Compensation provides monetary payments for workers whose employment has been terminated through no fault of their own.