Performance is one of the four retention factors used in reduction in force (RIF) as outlined in 5 USC 3501 - 3503.

This IRM section specifies the policies and procedures that the IRS uses in determining the proper retention service credit for performance ratings in a competitive area undergoing a RIF.

Only a rating of record or an equivalent rating of record may be used as the basis for granting retention service credit in RIF.

An equivalent rating of record means a performance evaluation not given under 5 CFR 430, Subpart B, but meeting the following requirements:

To be used as the employee's rating of record, an IRS performance appraisal must:

Ratings of Record from other Federal agencies and Treasury bureaus may be accepted for RIF purposes if they are given under the requirements of Subpart B, Part 430, Office of Personnel Management (OPM) regulations or meet the requirements of an equivalent rating of record specified above.

Each employee in a competitive area undergoing a RIF receives additional retention service credit for performance based on the average of the employee's three most recent ratings of record received the 4-year period prior to the date the IRS freezes ratings before issuing specific RIF notices.

The IRS will provide additional retention service credit to the employees under the same summary rating pattern in additional years of service on the basis of the mathematical average of each employee's ratings of record:

The IRS may not give any additional retention service credit for ratings of record of "Minimally Successful" or equivalent (Level 2), or "Unacceptable" or equivalent summary (Level 1).

If the average is a fraction, the Service will round up the fraction to the next higher whole number.

The IRS has established the use of a cutoff date of a minimum of 60 days prior to the planned issuance of the specific RIF notices to freeze ratings of record from being used in a RIF.

After this cutoff date, no new ratings of record may be put on the record and used for RIF purposes.

Ratings of record received after the cutoff date may still be used for other purposes such as awards, merit promotion actions, etc.

The performance appraisal cutoff date may be longer than 60 days based on the results of negotiations with the National Treasury Employees Union (NTEU).

No annual performance appraisal will be completed before the ending date of the employee's appraisal period to circumvent the specified cutoff date. The only exceptions to the prohibition of early appraisals are:

If an employee in a competitive area undergoing a RIF has not received three actual ratings of record during the applicable 4-year period prior to the date the IRS freezes ratings, the IRS provides additional retention service credit using the following procedures:

The modal rating is the summary rating level assigned most frequently among the actual ratings of record that are:

The IRS bases the modal rating on the competitive area undergoing a RIF.

At the time a RIF is contemplated for a competitive area, the Service will review the affected employees' records to determine if the use of modal ratings will be necessary.

If one or more employees in the competitive area do not have at least one rating of record during the previous 4- year period, the modal rating is calculated separately for each competitive area facing a RIF.

There is no requirement for the IRS either to determine or to use modal ratings when every employee in the competitive area has at least one rating of record during the applicable 4-year time period.

The modal rating can only used for RIF purposes.

Although all IRS employees have five summary rating levels (e.g. "Outstanding," "Exceeds Fully Successful" ) based on their IRS performance, some employees in a competitive area may have performance ratings from other Federal agencies or Treasury bureaus. These performance ratings may be under more than one pattern of summary levels as specified in 5 CFR 430.208.

In the event that a competitive area undergoing a RIF has employees with ratings of record under other summary rating patterns, the IRS is required to consider the mix of rating patterns and to specify additional retention service credit for employees who have the same summary level, but are under different patterns.

The range of additional service credit is still limited from 12 to 20 years.

Exhibit 6.430.4-1 shows the amount of additional years of retention service credit for performance provided to employees undergoing a RIF and who have a different summary rating pattern.