[Federal Register Volume 62, Number 110 (Monday, June 9, 1997)]
[Rules and Regulations]
[Pages 31315-31326]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-14905]



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  Federal Register / Vol. 62, No. 110 / Monday, June 9, 1997 / Rules 
and Regulations  

[[Page 31315]]


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OFFICE OF PERSONNEL MANAGEMENT

5 CFR PART 330

RIN 3206-AH26


Career Transition Assistance for Surplus and Displaced Federal 
Employees

AGENCY: Office of Personnel Management.

ACTION: Final regulation.

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SUMMARY: The Office of Personnel Management is issuing final 
regulations to implement the President's memorandum of September 12, 
1995, that requires Federal agencies to develop career transition 
assistance programs to help their employees affected by downsizing 
obtain other employment. The regulations require agencies to provide 
transition assistance services and give hiring priority to surplus and 
displaced employees.

DATES: Effective July 9, 1997. Agencies will amend their Career 
Transition Assistance Plans (CTAP), reflecting regulatory changes on 
providing internal selection priority and services to their surplus and 
displaced employees, as soon as possible, but no later than 90 calendar 
days after publication in the Federal Register.

FOR FURTHER INFORMATION CONTACT: Susan Shelton or Ed McHugh on (202) 
606-0960, FAX (202) 606-2329, or TDD (202) 606-0023.

SUPPLEMENTARY INFORMATION: On September 12, 1995, the President issued 
a memorandum entitled ``Career Transition Assistance for Federal 
Employees,'' that directs Federal Executive agencies to establish 
career transition assistance programs to help surplus and displaced 
workers find other jobs as the Federal Government undergoes downsizing 
and restructuring. As set forth in the memorandum, such programs are to 
be developed in partnership with labor and management, in accordance 
with guidance and regulations provided by the Office of Personnel 
Management (OPM).
    OPM issued interim regulations on December 29, 1995, 60 FR 67281, 
which were developed in cooperation with representatives from the 
Interagency Advisory Group of Personnel Directors and employee unions. 
These regulations provided the framework for implementing the 
President's directive, the purpose of which is to maximize employment 
opportunities for displaced workers, both within and outside the 
Federal Government.
    The program set up under the Presidential directive incorporates a 
new concept in career transition assistance for displaced workers 
called ``employee empowerment.'' Instead of placing surplus workers in 
new jobs from a centralized inventory (the traditional Federal model 
for assisting displaced civil servants), the new program gives 
individual workers the power to find, apply and exercise priority for 
specific vacancies in which they themselves are interested. It seeks to 
motivate and reinforce an employee's self interest in finding work 
opportunities by giving displaced workers the resources and hiring 
priority necessary to support their transition to other employment.
    Transition assistance consists of four components:
     Programs to provide career transition services to the 
agency's surplus and displaced employees;
     Policies for retraining displaced employees for new career 
opportunities;
     Policies that require the selection of a well-qualified 
surplus or displaced internal agency employee who applies for a vacant 
position in the commuting area, before selecting any other candidate 
from either within or outside the agency; and
     Policies that require the selection of a well-qualified 
displaced employee from another agency who applies for a vacant 
position in the commuting area before selecting any other candidate 
from outside the agency.
    Under these regulations, Federal agencies are required to implement 
Career Transition Assistance Plans to provide career transition 
services to their surplus and displaced employees, and give special 
selection priority to these workers. These regulations set minimum 
standards for these plans, which can be supplemented at the agency's 
discretion. These plans will operate through September 30, 1999, unless 
further extended because of severe downsizing. Because the Department 
of Defense (DOD) manages an effective program which provides selection 
priority to surplus and displaced employees within the Department--the 
Priority Placement Program--it is exempt from the special selection 
requirement affecting its own employees under the Career Transition 
Assistance Plan. The Department of Defense is subject to the other 
elements of these regulations, and the Reemployment Priority List under 
Subpart B of 5 CFR part 330, and its employees are eligible for the 
benefits provided by these programs.

Program Results to Date

    On February 29, 1996, the interim regulations took effect. During 
the next few months, each major Federal agency established a Career 
Transition Assistance Plan for its employees and began giving selection 
priority for vacancies--first to its own surplus and displaced 
employees and then to displaced employees from other Federal agencies. 
During the first seven months the program was in operation, over 1,000 
non-Defense surplus and displaced employees were selected for other 
jobs within their agencies. Over 400 more displaced employees were 
selected for vacancies in other Federal agencies through the 
Interagency Career Transition Assistance Program. The latter figure, 
achieved in seven months using the ``employee empowerment'' concept 
embodied in the Presidential directive, is roughly twice as many 
selections as were made during the last 3 years that the old 
Interagency Placement Program, a centralized referral and placement 
program which ICTAP replaced, was in operation.
    During the same period, two Internet websites were set up to assist 
surplus and displaced Federal employees in finding other employment. 
OPM's USAJOBS Internet site (http://www.usajobs.opm.gov) provides 
information on Federal employment and complete vacancy listings which 
are updated daily. A joint website operated by the U.S. Department of 
Labor in

[[Page 31316]]

partnership with the U.S. Office of Personnel Management (http://
safetynet.doleta.gov) is titled ``Planning Your Future--A Federal 
Employee's Survival Guide.'' It provides a wide range of critical 
information to Federal employees who are affected by downsizing and are 
attempting to make successful career transitions, especially to 
occupations in the private sector. (Additional information on these 
sites and other career transition resources is available from OPM's 
Workforce Restructuring Office at (202) 606-0960; (202) 606-2329, FAX).
    A number of Federal agencies undergoing downsizing have set up 
career transition centers to assist their displaced workers. In May, 
1996, OPM, the Interagency Advisory Group of Personnel Directors, 
several local governments, and the Department of Labor opened a network 
of transition centers for displaced Federal workers in the Washington, 
DC area. The centers, which are a pilot for replication in other areas 
of the country, provide job search assistance, skills analysis, 
counseling and resume preparation services.

Changes Incorporated in the Final Regulations

    Like the interim regulations, the final regulations require an 
agency, when filling a vacancy, to select an employee eligible under 
its Career Transition Assistance Plan before selecting any other 
candidate from within or outside the agency. When an agency has met its 
obligations under its Career Transition Assistance Plan (CTAP) and 
elects to fill a position from outside its workforce, it must first 
select agency employees who have been separated through reduction in 
force (RIF) and are eligible under its Reemployment Priority List 
(RPL); then, Federal employees displaced from other agencies who apply 
for positions in the local commuting area and are eligible under the 
Interagency Career Transition Assistance Plan (ICTAP).
    Several changes have been made in the final regulations to improve 
the program for employees, and to provide agencies more flexibility in 
managing their workforce during this time of downsizing. These changes 
were made based upon written and oral comments received from agencies, 
employees, unions, and other interested persons. In addition, OPM's 
Workforce Restructuring Office obtained feedback on the interim 
regulations through OPM's Oversight function, field activity 
conferences, and by visiting over a dozen agencies at the headquarters 
level, soliciting their input and ideas.
    We received written comments on the interim regulations from 18 
Federal agencies, one union, two professional associations, and several 
individuals. As a result of those comments, we have listed the major 
changes to the interim regulations by category:

Internal Selection Actions

    Under the interim regulations, agencies are required to announce 
any vacancy lasting 90 or more days, and give selection priority to 
employees eligible under their Career Transition Assistance Plan. Of 
the agencies commenting, nine expressed their concern that internal 
reassignments were subject to the CTAP, thus limiting the flexibility 
of their managers to make workload assignments based on shifting 
priorities. The problems appear especially acute in those situations 
where managers have neither the personnel ceiling authorization nor the 
funding to bring in employees from outside their immediate 
organization, and need the flexibility to move their employees around 
in order to meet fluctuating workload and shifting priorities. OPM, in 
response to the many concerns expressed by these agencies, is adding an 
exception under 5 CFR 330.606(d), actions not covered, to permit, at 
the agency's discretion, those actions taken by an agency component to 
fill a position from among its employees after well-qualified surplus 
and displaced employees of that component, in the same local commuting 
area, have been accorded selection priority. This exception will allow 
agency components to make internal selections, including reassigning 
their employees to other positions, where this is necessary, without 
being required to give selection priority to CTAP candidates from 
outside that component.
    For example, if Agency Component A in the local commuting area of 
Philadelphia, Pennsylvania, wants to reassign an employee to another 
position in the component within the Philadelphia area, it may do so 
without having to give selection priority to a CTAP candidate from 
outside the component. Special selection priority must still be 
afforded any eligible candidates within the component in the local 
commuting area, however. In our example, if Agency Component A wants to 
reassign an employee to Agency Component B, i.e., across component 
lines, then selection priority must first be given to eligible CTAP 
candidates from all components of the agency in the Philadelphia area. 
A component is considered to be the first major subdivision of an 
agency, e.g., the Customs Service within the Department of Treasury, or 
the U.S. Geological Survey within the Department of Interior. We have 
added a definition of ``component'' to Sec. 330.604, Definitions.

Expanded Geographical Eligibility for CTAP and ICTAP Eligible Employees

    Under the interim regulations, a surplus or displaced Federal 
employee can exercise selection priority only for those positions that 
are in the same local commuting area as the position occupied at the 
time of his or her RIF separation. Two agencies and one association 
stated that selection priority should be extended to surplus and 
displaced employees beyond the local commuting area. Many agency 
officials voiced concern, however, that to open up every vacancy 
nationwide would place undue administrative and cost burdens on the 
agency. The agency could be forced to bear the costs of relocating the 
employee, when in most cases, well-qualified displaced candidates would 
be available within the local commuting area. This problem may be 
susceptible to change by statute or new regulation. Until such steps 
are taken, however, OPM is retaining the requirement under 
Sec. 330.605(a)(4), Eligibility for CTAP, and Sec. 330.704(a)(4), 
Eligibility for ICTAP, that in order to receive special selection 
priority, the applicant must apply for positions in the same local 
commuting area in which he or she works or worked at the time of his or 
her separation from the competitive service. Agencies have the 
discretion in their Career Transition Assistance Plans, however, to 
expand internal selection priority beyond the local commuting area for 
their own surplus and displaced employees. However, in no case could an 
eligible applicant outside of the local commuting area be given 
selection priority over a well-qualified surplus or displaced agency 
employee within the local commuting area.

Content of Vacancy Announcements

    OPM received comments from both agencies and employees that job 
vacancy announcements sometimes do not contain clear and concise 
information for ICTAP candidates on eligibility requirements, how to 
apply, or documentation required. In response to those concerns, OPM is 
adding the requirement under Sec. 330.707, Reporting Vacancies to OPM, 
that when the agency is posting a job announcement to the Federal Jobs 
Database, it must clearly state the definition of ``well-qualified'' on 
the vacancy announcement, including information on how a CTAP and/or 
ICTAP eligible may apply, and what proof of eligibility is required. A 
similar requirement is

[[Page 31317]]

contained in Sec. 330.607(b) for an agency's internal announcements 
issued in connection with its Career Transition Assistance Plan.

Notification Requirements

    OPM received numerous complaints from surplus and displaced 
employees who had filed applications under CTAP and ICTAP, but were not 
able to find out the results of their application. Because surplus and 
displaced employees are entitled to selection priority, OPM feels that 
it is critical that the agency provide them with information relative 
to their application for a specific vacancy. Thus, OPM is adding a 
requirement to 5 CFR 330.607(c) and 330.706(c) for agencies to advise, 
in writing, surplus and displaced employees who apply under specific 
vacancy announcements of the results of their applications, including 
whether or not they were found well-qualified. If well-qualified, the 
agency should notify the applicant of his/her selection as soon as 
possible, or if another well-qualified CTAP or ICTAP candidate is 
chosen. If the applicant is not found well-qualified, then he or she 
must be advised in writing of the results of a second independent 
review of his or her application.

Definition of ``Well-qualified''

    OPM received many requests from agencies to clarify the definition 
of ``well-qualified'' under 5 CFR 330.604(h) of the interim 
regulations. In response to those requests, OPM is clarifying the 
language and including a statement under Sec. 330.604(k) that ``well-
qualified'' generally includes those applicants whose knowledge, 
skills, and abilities clearly exceed the minimum qualification 
requirements, but who would not necessarily meet the agency's 
definition of ``highly or best qualified.'' For purposes of the career 
transition assistance regulations, the terms ``highly qualified'' and 
``best qualified'' are not applicable.

Review of Qualification Determinations

    Under the interim regulations, surplus and displaced employees must 
be well-qualified for a position in order to receive selection 
priority. Currently Sec. 330.609 and Sec. 330.708 of the interim 
regulations require that agencies conduct a documented review whenever 
otherwise eligible employees are found not to be well-qualified. OPM 
received many comments regarding the requirement for this review. One 
association commented that employees should be able to ask for a review 
of their applications in those instances where they meet minimum 
qualification requirements, but are not found well-qualified. The 
commenter went further to suggest that a reviewing panel, consisting of 
an equal employment opportunity specialist and a personnel specialist, 
review the selection. One individual commented that the regulations 
should provide an avenue of appeal to the applicant. Another 
association asked that in lieu of an appeals procedure, that the final 
regulations clarify the right of the individual to grieve 
determinations through either the negotiated or administrative 
grievance procedure. One agency agreed that a qualifications review 
should be conducted only in those instances where the employee has not 
been found well-qualified. The Workforce Restructuring Office at OPM 
also received numerous calls from surplus and displaced employees who 
expressed concern that they were not afforded an avenue of appeal. OPM 
has considered these comments, and has determined that the language in 
5 CFR 330.609 and 330.708 of the interim regulations needs to be 
clarified, to specify that agencies will conduct a documented, 
independent second review in those instances where an otherwise 
eligible CTAP or ICTAP applicant is not found well-qualified. An 
example of a second independent reviewer might be a supervisor in the 
human resources office, an Equal Employment Opportunity official, or a 
subject matter specialist who was not involved in the original rating 
process. The applicant must be advised in writing of the results of the 
second review.

Length of Positions Subject to CTAP/ICTAP

    Several agencies objected to the definition of the word ``vacancy'' 
under Sec. 330.604(g) of the interim regulations, saying that the 
requirement to announce positions lasting 90 days or more was too 
restrictive, and carried an administrative burden that resulted in few, 
if any, CTAP or ICTAP applicants. Further, vacancies of short duration, 
e.g., 90 days, did not provide the CTAP or ICTAP eligible a significant 
placement opportunity to ease the employee's reduction in force 
separation. In response to those objections, OPM has changed the 
definition of ``vacancy'' to positions lasting 121 or more days. The 
final regulations thus allow agencies to temporarily fill positions for 
up to 120 days without requiring that selection priority be afforded 
their surplus or displaced employees. A conforming change was also made 
to Sec. 330.102, which previously required that agencies notify OPM of 
all competitive service vacancies lasting more than 90 days.

Extensions of Temporary and Term Employment Actions

    In response to many concerns raised by agencies, OPM is including 
exceptions in the final regulations which allow agencies to make an 
extension to a temporary action, e.g., promotion, or an extension to a 
temporary or term appointment, without having to reannounce the 
position and reconsider surplus and/or displaced employees. The 
original vacancy announcement must have been open to CTAP and/or ICTAP 
candidates, whichever is appropriate, and it must have clearly stated 
that the original action, e.g., promotion, or appointment could be 
extended. Temporary actions which took place prior to the effective 
date of the interim regulations, i.e., February 29, 1996, including 
subsequent extensions, are not subject to the CTAP and ICTAP.
    OPM is thus adding as an exception under CTAP, Sec. 330.606(d)(26), 
actions not covered, the following:
     Extensions of temporary or term actions, up to the full 
period allowed, provided the original vacancy announcement was open to 
CTAP candidates, and selection priority conferred to them, as 
appropriate. The original announcement must have specified that the 
action could be extended without reannouncement.
     OPM is also adding as an exception to ICTAP, 
Sec. 330.705(c)(11), the following: Extensions of temporary or term 
actions, up to the full period allowed, provided the original vacancy 
announcement specified that ICTAP candidates could apply, and if found 
well-qualified, would be conferred special selection priority. The 
original announcement must have specified that the action could be 
extended without reannouncement. This exception includes extensions 
granted by OPM to the 2 or 4 year limit allowed for temporary and term 
appointments, respectively.

Eligibility of Excepted Service Employees

    Currently, the interim regulations do not provide selection 
priority to employees separated from excepted service positions. The 
reason for this is that such employees do not have the same kind of 
eligibility to be appointed on an ``interchangeable'' basis as 
employees in the competitive civil service. Excepted service employees 
are eligible to receive all the same career transition services, e.g., 
career counseling, attendance at workshops,

[[Page 31318]]

access to career transition centers and their resources, etc., as 
competitive service employees. One agency commented that selection 
priority should be afforded all Federal employees, because downsizing 
is taking place Federal-wide, and all employees are affected. One 
association commented that employees in Schedule A or B positions 
should be afforded not only the full range of career transition 
assistance available to competitive service employees, but also should 
be given selection priority to other Schedule A or B positions.
    The final regulations give agencies the discretion to offer 
selection priority under CTAP to excepted service employees who were 
hired into appointments without time limit under Schedule A or B 
appointing authorities. If a permanent Schedule A or B excepted service 
employee is being separated through RIF, or because he or she declined 
a transfer of function or directed reassignment outside of the local 
commuting area, he or she, at the agency's discretion, may be given 
selection priority for other similar permanent excepted service 
Schedule A or B vacancies within an agency's local commuting area.
    The policy set by the agency must be consistently applied to all 
Schedule A and B appointees within the agency, and must be in 
accordance with the provisions of 5 CFR part 302, as applicable. 
Selection priority would be exercised based upon the nature of the 
appointing authority, e.g., a Schedule A employee who is in receipt of 
a RIF notice would have selection priority for other Schedule A 
positions in the agency, within the local commuting area. We are thus 
adding under Sec. 330.604(i)(3), Definitions, the provision that a 
surplus employee may include an employee in the excepted service, who 
serves without time limit under a Schedule A or B appointing authority 
at grade levels GS-15 or equivalent and below, who is in receipt of a 
certificate of expected separation or a RIF notice of separation, or 
who is in receipt of a notice of proposed separation for declining a 
directed reassignment or transfer of function outside of the local 
commuting area. The employee, at the agency's discretion, may exercise 
special selection priority for positions having the same appointing 
authority as the position from which the employee is being separated, 
within the agency's local commuting area. This provision will apply to 
all Schedule A or B employees serving in positions without time limit. 
These employees are not eligible for special selection priority under 
the ICTAP.

Filling Excepted Service Positions as Exceptions to CTAP and ICTAP

    The interim regulations allow agencies to fill excepted service 
positions without having to give selection priority to surplus or 
displaced employees. This includes the movement of excepted service 
employees within an agency and conversions of agency employees from 
excepted appointments to competitive service positions, in certain 
defined situations. These same provisions apply to Subpart G, the 
ICTAP. That is, an agency can appoint, reassign, promote, or transfer 
an excepted service employee to an excepted service position without 
first being required to provide selection priority to surplus or 
displaced competitive service employees. Again, this is based on the 
fact that excepted service employees are usually hired for very special 
positions or purposes, and they are not generally interchangeable with 
other competitive service employees. During the comment process, one 
union suggested that excepted appointments be eliminated as an 
exception from the CTAP and ICTAP, stressing that the integrity of the 
career transition assistance program could not be preserved otherwise. 
We considered this suggestion, but feel that since excepted service 
positions are often used for specialized purposes, e.g., attorney 
positions, and typically have requirements that are not found in an 
agency's workforce, making them subject to career transition programs 
would not significantly increase selection opportunities for most 
surplus or displaced employees. The final regulations thus continue to 
permit agencies to fill excepted service positions without regard to 
the agency's Career Transition Assistance Program or the Interagency 
Career Transition Assistance Program.

Eligibility of Employees Who Decline a Directed Reassignment or 
Transfer of Function Outside of the Local Commuting Area

    Under the interim regulations, employees who decline a directed 
reassignment or transfer of function outside of the local commuting 
area are eligible for selection priority under ICTAP on the date of 
their declination. Two agencies commented that the language in 5 CFR 
330.704(b) (i) and (iv), eligibility for special selection priority, 
was not consistent. Specifically, the commenter suggested that it was 
not equitable to state that eligibility for special selection priority 
for an employee being RIF separated begins on the date the agency 
issues a specific RIF separation notice; whereas, in 
Sec. 330.704(b)(iv), eligibility for special selection priority for an 
employee who declines a directed reassignment or transfer of function 
to another commuting area begins on the date of declination. OPM has 
considered this comment and agrees that in order to ensure that 
employees are treated equitably, employees who decline a directed 
reassignment or transfer of function to another commuting area should 
be eligible for CTAP and ICTAP beginning on the date on which the 
separation notice is issued to the employee by the agency.
    We are thus amending Sec. 330.605(b), Eligibility for CTAP, and 
Sec. 330.704(b)(4), Eligibility for ICTAP, to clarify that CTAP and 
ICTAP eligibility begins when the agency issues a notice of proposed 
separation for declining a directed reassignment or transfer of 
function outside of the local commuting area. Employees who decline a 
directed reassignment or transfer of function to another commuting area 
prior to the effective date of these final regulations will remain 
eligible for ICTAP based upon the date of their declination, under 
Sec. 330.704(b)(iv) of the interim regulations.

Length of Eligibility

    One union, one agency, and several individuals expressed their 
concern that eligibility for special selection priority is too short to 
provide adequate opportunity for placement. OPM believes, however, that 
current eligibility periods are adequate. Realistically, selection 
priority within an agency can only be afforded while the employee is 
still on the agency rolls. Eligibility for the ICTAP begins with the 
date of the RIF separation notice, for example, and ends one year from 
the date of the actual RIF separation. Thus, a displaced employee has a 
minimum of 60 calendar days (120 days for Department of Defense 
employees) of CTAP eligibility (beginning with the date the agency 
issues the RIF separation notice) and 1 year, 60 days (1 year, 120 days 
for Department of Defense employees) of ICTAP eligibility. We feel that 
this provides a reasonable time during which a displaced employee can 
apply for and be selected for employment.

CTAP/ICTAP Briefing for Each Displaced Employee

    OPM has received information indicating that some individuals 
eligible for the CTAP and/or ICTAP are not being provided information 
by their

[[Page 31319]]

human resources office about the program. As a result, some employees 
may not fully understand their entitlement under this new program, or 
that they must apply within the local commuting area for vacancies in 
which they are interested. In order to better educate affected 
employees on the requirements and benefits of this new program, OPM is 
requiring agencies under 5 CFR 330.602(a)(1)(iv), Agency plans, to 
conduct a specific orientation session for their current surplus and 
displaced eligible employees.

Reporting Requirements

    Consistent with other chapters in the regulations, OPM is adding a 
requirement under Sec. 330.610(b) (2) and (3) that an agency report the 
number of eligible applicants found well-qualified, and not well-
qualified under CTAP. In addition, a new requirement has been added, 
under Sec. 330.610(b)(5), Reporting, asking agencies to report the 
number of second reviews and the results of such reviews. We are also 
requiring agencies under Sec. 330.610(b)(6) to report the number of 
CTAP eligibles who declined job offers. We are adding similar 
requirements to Sec. 330.710(b), Reporting, as they pertain to ICTAP, 
including the requirement of the agency to report the number of 
placements made from the Reemployment Priority List.

Labor-Management Requirements

    Agreement provisions in conflict with the interim regulations, 
which were effective February 29, 1996, remain in effect for the term 
of the agreement by operation of 5 U.S.C. 7116(a)(7). However, in the 
spirit of partnership, agencies and unions are urged to mutually amend 
existing agreements to make them consistent with these regulations 
prior to the expiration of conflicting negotiated agreements.
    Apart from the aforementioned agreements, these regulations were 
effective at the time they were issued as interim regulations. In 
implementing them, agency officials should check with their labor 
relations officials to determine to what extent, if any, there is a 
duty to give notice and, upon request, bargain on their impact and 
implementation.

Technical Exceptions

    As a result of the comments received, we are adding several 
technical exceptions to agency Career Transition Assistance Plans 
(CTAP) under 5 CFR 330.606(d), actions not covered. These include:
    1. The internal placement of an injured or disabled worker whose 
agency has identified a position for which he or she can be reasonably 
accommodated;
    2. An action taken to return an employee to his or her original or 
similar position during a supervisory probationary period;
    3. Actions taken by the agency head or his designee pursuant to the 
settlement of a formal complaint, grievance, appeal, or litigation;
    4. The retention of individuals whose positions are brought into 
the competitive service under Sec. 316.701 or Sec. 316.702 of this 
chapter and subsequent conversion, when applicable, under Sec. 315.701 
of this chapter;
    5. The retention of an employee for whom OPM has approved a rule 
5.1 variation;
    6. The reemployment of a former agency employee who retired under a 
formal trial retirement and reemployment program, and who seeks 
reemployment with that agency under the program's provisions, including 
the program's applicable time limits;
    7. The placement of a member of the Senior Executive Service under 
5 U.S.C. 3594; and
    8. The noncompetitive movement of displaced employees between 
agencies as a result of reorganization, transfer of function, or mass 
transfer.
    Likewise, OPM is adding several technical exceptions to the 
Interagency Career Transition Assistance Plan (ICTAP) under 5 CFR 
330.705(c), actions not covered, including those listed as items 3-7 
above, and:
     The reappointment of former employees with their former 
agency into hard-to-fill positions, and whose unique skills and 
experience are needed in order to conduct a formal skills-based 
training program for the agency; and
     Assignments made under the Intergovernmental Personnel Act 
(IPA).

Expanding Definition of ``Surplus'' Employees to Include Individuals 
Whose Positions Are Abolished

    OPM is also expanding the definition of ``surplus employee'' under 
5 CFR 330.604(i) to include an employee who is officially notified in 
writing by the agency that his or her position is being abolished, and 
that he or she is eligible for discontinued service retirement. This is 
in response to numerous concerns raised by employees who had been 
advised that they were eligible for discontinued service retirement 
because of position abolishment, but they were not eligible for 
selection priority under CTAP.

CTAP/ICTAP Eligibility of Excepted Service Employees Who Are Given 
Placement Assistance for Competitive Service Positions by Special 
Statute

    OPM is extending the definition of ``surplus'' under 
Sec. 330.604(i) and ``displaced'' under Sec. 330.604(c), Definitions, 
to include a current Executive Branch excepted service employee serving 
on an appointment without time limit, at grade levels GS-15 or 
equivalent and below, who has been issued an official certificate of 
expected separation (or similar official agency notice that his or her 
job is surplus), RIF notice of separation, or notice of proposed 
removal for declining a transfer of function or directed reassignment 
outside of the local commuting area, and who has noncompetitive 
appointment eligibility and special selection priority, granted under 
special statute. OPM is also including under Sec. 330.703(b)(8), 
Definitions for displaced employees, a former Executive Branch 
employee, at grade levels GS-15 or equivalent and below, who has been 
separated from a permanent appointment in the excepted service and who 
has been given noncompetitive eligibility and selection priority for 
career or career conditional appointment by statute in order to 
facilitate placement into the competitive service. Similar language is 
added under Sec. 330.703(b)(7) for current excepted service employees 
in receipt of a RIF separation notice. These definitions are intended 
to clarify that employees in the excepted service who have 
noncompetitive appointment eligibility into the competitive service 
based on statute do not have selection priority for competitive service 
positions, unless the pertinent statute so states.

Regulatory Flexibility Act

    I certify that this regulation will not have a significant economic 
impact on a substantial number of small entities because it affects 
only Federal employees.

Executive Order 12866, Regulatory Review

    This rule has been reviewed by the Office of Management and Budget 
in accordance with Executive Order 12866.

List of Subjects in 5 CFR Part 330

    Armed forces reserves, Government employees.

U.S. Office of Personnel Management.
James B. King,
Director.
    Accordingly, OPM is amending part 330 of title 5, Code of Federal 
Regulations, as follows:

[[Page 31320]]

PART 330--RECRUITMENT, SELECTION, AND PLACEMENT (GENERAL)

    1. The authority citation for part 330 continues to read as 
follows:

    Authority: 5 U.S.C. 1302, 3301, 3302; E.O. 10577, 3 CFR 1954-58 
Comp., p. 218; Sec. 330.102 also issued under 5 U.S.C. 3327 and 
3330; subpart B also issued under 5 U.S.C. 3315 and 8151; 
Sec. 330.401 also issued under 5 U.S.C. 3310; subpart H also issued 
under 5 U.S.C. 8337(h) and 8457(b); subpart I also issued under 106 
Stat. 2720, 5 U.S.C. 3301 note.


Sec. 330.102  [Amended]

    2. In Sec. 330.102, paragraph (b) is revised to read as follows:
* * * * *
    (b) All other vacancies--(1) Notice required. Under 5 U.S.C. 3330, 
OPM must maintain, and make available to the public, a list of agency 
vacancy announcements for positions in the competitive service. Under 
Sec. 330.707 of this chapter, agencies must notify OPM promptly of 
competitive service vacancies to be filled for more than 120 days when 
the agency will accept applications from individuals outside the 
agency's own work force.
    (2) [Reserved]
    3. Section 330.301 is revised to read as follows:


Sec. 330.301  Coverage.

    (a) This subpart covers the Interagency Placement Program for 
employees who will be displaced or who have been separated from their 
Federal jobs as a result of agency workforce reductions, compensable 
on-the-job injury, discontinued service retirement, or disability 
retirement. Agencies have the primary responsibility for providing 
placement assistance to their surplus and displaced employees, and for 
administering career transition assistance programs. OPM supplements 
these agency efforts by administering the Interagency Placement Program 
which gives surplus or displaced employees priority referral to 
positions in other agencies.
    (b) The operation of this subpart will be suspended from February 
29, 1996 through September 30, 1999. In the interim, placement 
assistance will be provided in accordance with subparts B, F, and G of 
this part. OPM may extend this date if it determines that the Federal 
Government is still experiencing an emergency downsizing situation.
    4. Subpart F is revised to read as follows:
Subpart F--Agency Career Transition Assistance Plans (CTAP) for Local 
Surplus and Displaced Employees
330.601  Purpose.
330.602  Agency plans.
330.603   Duration.
330.604  Definitions.
330.605  Eligibility.
330.606  Order of selection for filling vacancies from within the 
agency.
330.607  Notification of surplus and displaced employees.
330.608  Application and selection.
330.609  Qualification reviews.
330.610  Reporting.
330.611  Oversight.

    Authority: Presidential memorandum dated September 12, 1995, 
entitled ``Career Transition Assistance for Federal Employees.''

Subpart F--Agency Career Transition Assistance Plans (CTAP) for 
Local Surplus and Displaced Employees


Sec. 330.601  Purpose.

    (a) This subpart implements the President's memorandum of September 
12, 1995, to establish agency Career Transition Assistance Plans for 
Federal employees during a period of severe Federal downsizing. It is 
the policy of the United States Government to provide services to help 
surplus and displaced Federal employees take charge of their own 
careers and find other job offers, either within the Federal Government 
or in the private sector.
    (b) These regulations set forth minimum criteria for agency Career 
Transition Assistance Plans. Consistent with the regulations, agencies 
may supplement these provisions to expand career transition 
opportunities to their surplus and displaced workers at their 
discretion.
    (c) Sections 330.602(a)(2) and 330.604 through 330.609 do not apply 
to the Department of Defense Priority Placement Program.
    (d) New negotiated agreements and agreements which have expired 
since February 29, 1996, the effective date of the interim regulations, 
will be subject to the provisions set forth in this part.


Sec. 330.602  Agency plans.

    (a) Each agency will establish a Career Transition Assistance Plan 
(CTAP) to actively assist its surplus and displaced employees. A copy 
of the final plan and any additional modified plans will be sent to OPM 
as approved by the agency/department head or deputy or under secretary. 
An agency plan will include:
    (1) Policies to provide career transition services to all surplus 
and displaced agency employees affected by downsizing or restructuring, 
including employees in the excepted service and the Senior Executive 
Service, which include the following:
    (i) Types of career transition services to be provided by the 
agency;
    (ii) Use of excused absence for employees to use the services and 
facilities;
    (iii) Access to services or facilities after separation;
    (iv) The requirement for a specific orientation session for surplus 
and displaced employees on the use of career transition services and 
the eligibility requirements for selection priority under CTAP and 
ICTAP. The orientation session must include information on how to apply 
for vacancies under the CTAP and ICTAP (if applicable);
    (v) Retraining to be provided to employees;
    (vi) Access by employees, including those with disabilities, to 
services in headquarters, field offices, and remote site locations;
    (vii) Access to resource information on other forms of Federal, 
state, and local assistance which are available to support career 
transition for employees with disabilities;
    (viii) Role of employee assistance programs in providing services; 
and
    (ix) Designation of agency components, if the agency exercises its 
discretion under Sec. 330.606(d)(24).
    (2) Policies to provide special selection priority to well-
qualified surplus and/or displaced agency employees, as defined by 
Sec. 330.604 (c) and (i), who apply for agency vacancies in the local 
commuting area, before selecting any other candidate from either within 
or outside the agency, and agency procedures for reviewing 
qualification issues; and
    (3) Operation of the agency's Reemployment Priority List under 
subpart B of 5 CFR part 330.
    (b) Each agency is responsible for assuring that its Career 
Transition Assistance Plan and the provisions of these subparts are 
uniformly and consistently applied to all employees.


Sec. 330.603  Duration.

    This subpart will expire on September 30, 1999, unless the Office 
of Personnel Management extends the program based on its determination 
that the Federal Government is still experiencing an emergency 
downsizing situation.


Sec. 330.604  Definitions.

    For purposes of this subpart:
    (a) Agency means an Executive Department, a Government corporation, 
and an independent establishment as cited in 5 U.S.C. 105. For the 
purposes of this program, the term ``agency''

[[Page 31321]]

includes all components of an organization, including its Office of 
Inspector General.
    (b) Component means the first major subdivision of an agency, that 
is separately organized and clearly distinguished from other components 
in work function and operation.
    (c) Displaced employee means:
    (1) A current career or career conditional competitive service 
employee in tenure group 1 or 2, at grade levels GS-15 or equivalent 
and below, who has received a specific reduction in force (RIF) 
separation notice or notice of proposed removal for declining a 
directed reassignment or transfer of function outside of the local 
commuting area; or,
    (2) A current Executive Branch agency employee in the excepted 
service, serving on an appointment without time limit, at grade levels 
GS-15 or equivalent and below, who has been given noncompetitive 
appointment eligibility and selection priority by statute for positions 
in the competitive service, and who is in receipt of a reduction in 
force separation notice or notice of proposed removal for declining a 
transfer of function or directed reassignment outside of the local 
commuting area.
    (d) Eligible employee means a surplus or displaced employee who 
meets the conditions set forth in Sec. 330.605(a).
    (e) Local commuting area means the geographic area that usually 
constitutes one area for employment purposes as determined by the 
agency. It includes any population center (or two or more neighboring 
ones) and the surrounding localities in which people live and can 
reasonably be expected to travel back and forth daily to their usual 
employment.
    (f) Reorganization means the planned elimination or redistribution 
of work functions within an agency, normally announced in writing.
    (g) Special selection priority means that, except as provided by 
Sec. 330.606(d), surplus and/or displaced employees eligible under this 
subpart must be selected over any other candidate for vacancies in the 
local commuting area for which they apply and are found well-qualified.
    (h) Suitability means determinations based on an individual's 
character or conduct that may impact the efficiency of the service by 
jeopardizing an agency's accomplishment of its duties or 
responsibilities, or by interfering with or preventing effective 
service in the competitive, excepted or SES position applied for or 
employed in, and determinations that there is a statutory or regulatory 
bar to employment.
    (i) Surplus employee means:
    (1) A current agency employee serving under an appointment in the 
competitive service, in tenure group 1 or 2, at grade levels GS-15 or 
equivalent and below, who has received a certificate of expected 
separation or other official certification issued by the agency 
indicating that the position is surplus, for example, a notice of 
position abolishment, or a notice stating that the employee is eligible 
for discontinued service retirement; or,
    (2) A current Executive Branch agency employee serving on an 
excepted service appointment without time limit, at grade levels GS-15 
or equivalent and below, who has been issued a certificate of expected 
separation or other official agency certification indicating that his 
or her position is surplus, for example, a notice of position 
abolishment or a notice stating that the employee is eligible for 
discontinued service retirement, and who has been conferred 
noncompetitive appointment eligibility and special selection priority 
by statute for positions in the competitive service; and
    (3) At an agency's discretion, a current Executive Branch employee 
serving on a Schedule A or B excepted appointment without time limit, 
at grade levels GS-15 or equivalent and below, and who is in receipt of 
a certificate of expected separation or other official agency 
certification indicating that his or her job is surplus, for example, a 
notice of position abolishment, or an official notice stating that the 
employee is eligible for discontinued service retirement; or an 
employee who has received a RIF notice of separation, or a notice of 
proposed removal for declining a transfer of function or directed 
reassignment outside of the local commuting area. Such employee may 
exercise selection priority for permanent excepted service positions 
within the agency's local commuting area, provided the position to 
which appointed has the same appointing authority, i.e., Schedule A or 
B, as the position from which being separated.
    (j) Vacancy means a competitive service position filled for a total 
of 121 days or more, including all extensions, which the agency is 
filling, regardless of whether the agency issues a specific vacancy 
announcement.
    (k) Well-qualified employee means an eligible employee who 
possesses the knowledge, skills, and abilities which clearly exceed the 
minimum qualification requirements for the position. A well-qualified 
employee will not necessarily meet the agency's definition of ``highly 
or best qualified,'' when evaluated against other candidates who apply 
for a particular vacancy, but must satisfy the following criteria, as 
determined and consistently applied by the agency:
    (1) Meets the basic qualification standards and eligibility 
requirements for the position, including any medical qualifications, 
suitability, and minimum educational and experience requirements; and
    (2) Satisfies one of the following qualifications requirements:
    (i) Meets all selective factors where applicable. Meets appropriate 
quality rating factor levels as determined by the agency. Selective and 
quality ranking factors cannot be so restrictive that they run counter 
to the goal of placing displaced employees. In the absence of selective 
and quality ranking factors, selecting officials will document the job-
related reason(s) the eligible employee is or is not considered to be 
well qualified; or
    (ii) Is rated by the agency to be above minimally qualified in 
accordance with the agency's specific rating and ranking process. 
Generally, this means that the individual may or may not meet the 
agency's test for ``highly qualified,'' but would in fact, exceed the 
minimum qualifications for the position;
    (3) Is physically qualified, with reasonable accommodation where 
appropriate, to perform the essential duties of the position;
    (4) Meets any special qualifying condition(s) that OPM has approved 
for the position; and
    (5) Is able to satisfactorily perform the duties of the position 
upon entry.


Sec. 330.605  Eligibility.

    (a) To be eligible for the special selection priority, an 
individual must meet all of the following conditions:
    (1) Is a surplus or displaced employee (still on the agency rolls) 
as defined in Sec. 330.604 (c) and (i);
    (2) Has a current performance rating of record of at least fully 
successful or equivalent;
    (3) Applies for a vacancy that is at or below the grade level from 
which the employee may be or is being separated, that does not have a 
greater promotion potential than the position from which the employee 
may be or is being separated;
    (4) Occupies a position in the same local commuting area of the 
vacancy; or, at the agency's discretion, occupies a position beyond the 
local commuting area. An eligible agency applicant outside of the local 
commuting area, however, can only exercise selection priority when 
there are no eligible surplus and displaced agency

[[Page 31322]]

employees within the local commuting area who apply and are found well-
qualified;
    (5) Files an application for a specific vacancy within the time 
frames established by the agency, and provides proof of eligibility as 
required under Sec. 330.608(a)(2); and
    (6) Is determined by the agency to be well-qualified for the 
specific vacancy.
    (b) Eligibility for special selection priority begins on the date 
the agency issues the employee a RIF separation notice, certificate of 
expected separation, notice of proposed separation for declining a 
directed reassignment or transfer of function outside of the local 
commuting area, or other official agency certification identifying the 
employee as being in a surplus organization or occupation, whichever is 
earliest.
    (c) Eligibility expires on the earliest of:
    (1) The RIF separation date, the date of the employee's resignation 
from the agency, or the date of separation under adverse action 
procedures for declining a directed reassignment or transfer of 
function to another local commuting area; or
    (2) Cancellation of the RIF separation notice, certificate of 
expected separation, notice of proposed removal for declining a 
directed reassignment or transfer of function outside of the commuting 
area, or other official agency certification identifying the employee 
as surplus; or
    (3) When an eligible employee receives a career, career-
conditional, or excepted appointment without time limit in any agency 
at any grade level; and
    (4) Within an agency, and at the agency's discretion, when an 
eligible employee declines a career, career conditional, or excepted 
appointment (without time limit), for which the employee has applied 
and been rated well-qualified.


Sec. 330.606  Order of selection for filling vacancies from within the 
agency.

    (a) Except as provided in paragraph (d) of this section, when 
filling a vacancy as defined in Sec. 330.604(j), an agency must select 
an employee eligible under Sec. 330.605 of this subpart before 
selecting any other candidate from within or outside the agency, unless 
the agency can show that another employee would otherwise be separated 
by reduction in force. In addition, agencies may not procure temporary 
help services under 5 CFR part 300, subpart E, in lieu of appointing a 
surplus or displaced Federal employee as required by subparts F and G 
of this chapter.
    (b) Once the agency has met its obligation to select employees 
eligible under its CTAP, it is free to select any other competitive 
service tenure group 1 or 2 candidate from within its workforce, under 
appropriate procedures. An agency may provide selection priority to 
surplus and displaced agency employees from another commuting area 
after it has discharged its obligation to eligible surplus and 
displaced agency employees from within the local commuting area.
    (c) When an agency selects a candidate from outside of its 
workforce, the agency is subject to the order of selection prescribed 
in Sec. 330.705.
    (d) The following are not covered under this subpart:
    (1) Actions taken under 5 CFR part 335, including reassignments, 
changes to lower grade, or promotions, when no employees eligible under 
this subpart apply;
    (2) Reemployment of a former agency employee exercising regulatory 
or statutory reemployment rights, including the reemployment of injured 
workers who have either been restored to earning capacity by the Office 
of Workers' Compensation Programs (OWCP), or who have received a notice 
that their compensation benefits will cease because of recovery from 
the disabling injury or illness;
    (3) Position changes resulting from disciplinary actions;
    (4) Temporary appointments of under 121 days (including all 
extensions);
    (5) Exchange of positions between or among agency employees, when 
the actions involve no increase in grade or promotion potential, i.e., 
job swaps;
    (6) Conversion of an employee of the same agency who is serving on 
an excepted appointment which confers eligibility for noncompetitive 
conversion into the competitive service, e.g., conversion of a 
veterans' readjustment appointee to a career conditional appointment 
under Sec. 315.705;
    (7) An action taken under part 351 of this chapter;
    (8) Non-competitive placement of an employee into a different 
position as a result of a formal reorganization, when the former 
position ceases to exist, and no actual vacancy results;
    (9) Assignments made under the Intergovernmental Personnel Act 
(IPA) as provided in part 334 of this chapter;
    (10) The filling of a position through an excepted appointment;
    (11) Details;
    (12) Time-limited promotions of under 121 days, including all 
extensions;
    (13) Noncompetitive movement of surplus or displaced employees 
within the agency, and within the same local commuting area;
    (14) Movement of excepted service employees within an agency;
    (15) A placement under 5 U.S.C. 8337 or 8451 to allow continued 
employment of an employee who has become unable to provide useful and 
efficient service in his or her current position because of a medical 
condition;
    (16) A placement that is a ``reasonable offer'' as defined in 5 
U.S.C. 8336(d) and 8414(b);
    (17) Career ladder promotions or position changes resulting from 
reclassification actions, e.g., accretion of duties, or application of 
new position classification standards;
    (18) Recall of seasonal or intermittent employees from nonpay 
status;
    (19) The internal placement of an injured or disabled worker whose 
agency has identified a position for which he or she can be reasonably 
accommodated;
    (20) An action taken by the agency head or his designee pursuant to 
the settlement of a formal complaint, grievance, appeal, or other 
litigation;
    (21) An action taken to return an employee to his or her original 
or similar position during a supervisory probationary period;
    (22) The retention of individuals whose positions are brought into 
the competitive service under Sec. 316.701 or Sec. 316.702 of this 
chapter and subsequent conversion, when applicable, under Sec. 315.701 
of this chapter;
    (23) The retention of an employee for whom OPM has approved a rule 
5.1 variation;
    (24) At the agency's discretion, the selection of an employee from 
within a component of an agency within the local commuting area, after 
all eligible surplus and displaced applicants of that component who are 
eligible under CTAP within the local commuting area have been accorded 
selection priority;
    (25) The reemployment of a former agency employee who retired under 
a formal trial retirement and reemployment program, and who seeks 
reemployment with that agency under the program's provisions, and 
within the program's applicable time limits;
    (26) Extensions of temporary or term actions, up to the full period 
allowed, provided that the original action, upon which the extension is 
based, was made on or before February 29, 1996; or for actions 
initially made after February 29, 1996, the original vacancy 
announcement must have specified that the position was open to CTAP 
candidates and that if they were found

[[Page 31323]]

well-qualified, would be afforded selection priority. The original 
announcement must have stated that an extension was possible without 
further announcement;
    (27) Noncompetitive movement of displaced employees between 
agencies as a result of reorganization, transfer of function, or mass 
transfer; and
    (28) The placement of a member of the Senior Executive Service 
under 5 U.S.C. 3594.


Sec. 330.607  Notification of surplus and displaced employees.

    (a) In addition to meeting the requirements of 
Sec. 330.602(a)(1)(iv), at the time it issues a specific RIF separation 
notice, certificate of expected separation, or other official agency 
certification that identifies an employee as being likely to be 
separated by RIF, or by adverse action procedures for declining a 
directed reassignment or transfer of function outside of the local 
commuting area, an agency must give each of its eligible employees 
information in writing about the special selection priority available 
to them under the agency's Career Transition Assistance Plan. Such 
information must contain guidance to the employee on how to apply for 
vacancies under the CTAP, and what documentation is generally required 
as proof of eligibility.
    (b) Agencies must take reasonable steps to ensure eligible 
employees are notified of all vacancies the agency is filling and what 
is required for them to be determined well-qualified for the vacancies. 
Vacancy announcements within an agency must contain information on how 
eligible employees within the agency can apply, what proof of 
eligibility is required, and the agency's definition of ``well-
qualified.''
    (c) Each agency is required to advise, in writing, their surplus 
and displaced employees who apply for specific vacancies within its 
local commuting area of the results of their application, and whether 
or not they were found well-qualified. If they are not found well-
qualified, such notice must include information on the results of an 
independent, second review conducted by the agency. If an applicant is 
found well-qualified, and another well-qualified surplus or displaced 
candidate is selected, the applicant must be so advised.


Sec. 330.608  Application and selection.

    (a) Application.
    (1) To receive this special selection priority, an eligible 
employee must apply for a specific agency vacancy in the same local 
commuting area as the position the employee occupies within the 
prescribed time frames, attach the appropriate proof of eligibility as 
described in paragraph (a)(2) of this section, and be determined well-
qualified by the agency for the specific vacancy.
    (2) Employees may submit the following as proof of eligibility for 
the special selection priority:
    (i) RIF separation notice or notice of proposed removal for 
declining a directed reassignment or transfer of function outside the 
local commuting area;
    (ii) Certificate of expected separation or other official notice 
from the agency indicating that the employee is surplus or eligible for 
discontinued service retirement; or
    (iii) Other official agency certification identifying the employee 
as being in a surplus organization or occupation.
    (b) Selection. An agency may decide the specific order of selection 
of its eligible employees within the provisions set forth in 
Sec. 330.606(a) (e.g., the agency may decide to select displaced 
employees before surplus employees or may select surplus and/or 
displaced employees from within a particular component of the agency 
before selecting surplus and/or displaced employees from another 
component of the agency).
    (c) An agency cannot select any other candidate from within or 
outside the agency if eligible employees are available for the vacancy 
or vacancies.
    (d) If two or more eligible employees apply for a vacancy and are 
determined to be well-qualified, any of these eligible employees may be 
selected.
    (e) If no eligible employees apply or none is deemed well-
qualified, the agency may select another agency employee without regard 
to this subpart.


Sec. 330.609  Qualification reviews.

    Agencies will ensure that a documented, independent second review 
is conducted whenever an otherwise eligible employee is determined to 
be not well-qualified. The applicant must be advised in writing of the 
results of the second review.


Sec. 330.610  Reporting.

    (a) Each agency shall submit an annual report covering each fiscal 
year activity under this subpart to OPM no later than December 31 of 
each year.
    (b) Each report will include the following:
    (1) Number of employees identified by the agency as surplus and 
displaced during that fiscal year;
    (2) The number of CTAP applicants who were found to be well-
qualified;
    (3) The number of CTAP applicants who were found to be not well-
qualified;
    (4) Number of selections of eligible employees under the agency's 
CTAP, or in the case of the Department of Defense, under its Priority 
Placement Program;
    (5) The number of second reviews and the results of those reviews;
    (6) The number of CTAP eligibles who declined job offers; and
    (7) The name, title, and telephone number of the agency official 
responsible for the report.
    (c) Reports should be addressed to: U.S. Office of Personnel 
Management, Workforce Restructuring Office, Employment Service, 1900 E 
Street, NW., Washington, DC 20415, FAX: 202-606-2329.


Sec. 330.611  Oversight.

    OPM provides advice and assistance to agencies in implementing 
their Career Transition Assistance Programs. OPM is also responsible 
for oversight of agency CTAPs and may conduct reviews of the plans at 
any time.
    5. Subpart G is revised to read as follows:
Subpart G--Interagency Career Transition Assistance Plan for Displaced 
Employees
330.701  Purpose.
330.702  Duration.
330.703  Definitions.
330.704  Eligibility.
330.705  Order of selection in filling vacancies from outside the 
agency's workforce.
330.706  Notification of displaced employees.
330.707  Reporting vacancies to OPM.
330.708  Application and selection.
330.709  Qualification reviews.
330.710  Reporting.
330.711  Oversight.

    Authority: Presidential memorandum dated September 12, 1995, 
entitled ``Career Transition Assistance for Federal Employees.''

Subpart G--Interagency Career Transition Assistance Plan for 
Displaced Employees


Sec. 330.701  Purpose.

    (a) This subpart implements the President's memorandum of September 
12, 1995, to establish a special interagency career transition 
assistance program for Federal employees during a period of severe 
Federal downsizing.
    (b) This subpart is effective July 9, 1997.
    (c) The provisions of the Reemployment Priority List (RPL) set 
forth in subpart B of this part will remain in effect during the period 
of severe Federal downsizing. When an

[[Page 31324]]

agency considers candidates from outside the agency for vacancies, 
registrants in an agency's RPL have priority for selection over 
employees eligible under this subpart in accordance with Sec. 330.705.
    (d) This subpart applies only when agencies are making selections 
from outside their workforce, and does not prohibit movement within an 
agency, as permitted by subpart F of this part.


Sec. 330.702  Duration.

    This subpart will expire on September 30, 1999, unless the U. S. 
Office of Personnel Management extends the program based on its 
determination that the Federal Government is still experiencing an 
emergency downsizing situation.


Sec. 330.703  Definitions.

    For the purposes of this subpart:
    (a) Agency has the meaning given in Sec. 330.604(a).
    (b) Displaced employee means:
    (1) A current career or career-conditional competitive service 
employee, in tenure group 1 or 2, at grade levels GS-15 or equivalent 
and below, who has received a specific RIF separation notice, or a 
notice of proposed removal for declining a directed reassignment or 
transfer of function outside of the local commuting area;
    (2) A former career or career-conditional competitive service 
employee, in tenure group 1 or 2, at grade levels GS-15 or equivalent 
and below, who was separated through reduction in force, or removed for 
declining a directed reassignment or transfer of function outside of 
the local commuting area;
    (3) A former career or career-conditional employee who was 
separated because of a compensable injury or illness as provided under 
the provisions of subchapter I of chapter 81 of title 5, United States 
Code, whose compensation has been terminated and whose former agency is 
unable to place the individual as required by part 353 of this chapter;
    (4) A former career or career-conditional competitive service 
employee, in tenure group 1 or 2, who retired with a disability under 
sections 8337 or 8451 of title 5, United States Code, whose disability 
annuity has been or is being terminated;
    (5) A former career or career-conditional competitive service 
employee, in tenure group 1 or 2, at grades GS-15 level or equivalent 
or below, who received a RIF separation notice, and who retired on the 
effective date of the reduction in force or under the discontinued 
service retirement option;
    (6) A former Military Reserve Technician or National Guard 
Technician who is receiving a special disability retirement annuity 
from OPM under section 8337(h) or 8456 of title 5 United States Code, 
as described in subpart H of this part;
    (7) A current Executive Branch agency employee in the excepted 
service, serving on an appointment without time limit, at grade levels 
GS-15 or equivalent and below, who has been given noncompetitive 
appointment eligibility and selection priority by statute for positions 
in the competitive service, and who is in receipt of a reduction in 
force separation notice or notice of proposed removal for declining a 
transfer of function or directed reassignment outside of the local 
commuting area; or
    (8) A former Executive Branch agency employee in the excepted 
service, who served on an appointment without time limit, at grade 
levels GS-15 or equivalent and below, who has been given noncompetitive 
appointment eligibility and selection priority by statute for positions 
in the competitive service, and who has been separated through 
reduction in force or removed for declining a transfer of function or 
directed reassignment outside of the local commuting area.
    (c) Eligible employee means a displaced employee who meets the 
conditions set forth in Sec. 330.704(a).
    (d) Local commuting area has the meaning given in Sec. 330.604(e).
    (e) Special selection priority has the meaning given in 
Sec. 330.604(g).
    (f) Vacancy has the meaning given in Sec. 330.604(j).
    (g) Well-qualified employee has the meaning given in 
Sec. 330.604(k).


Sec. 330.704  Eligibility.

    (a) To be eligible for the special selection priority, an 
individual must meet all of the following conditions:
    (1) Is a displaced employee as defined in Sec. 330.703(b);
    (2) Has a current (or a last) performance rating of record of at 
least fully successful or equivalent (except for those eligible under 
Sec. 330.703(b)(3), (b)(4), and (b)(6);
    (3) Applies for a vacancy at or below the grade level from which 
the employee has been or is being separated, that does not have a 
greater promotion potential than the position from which the employee 
has been or is being separated;
    (4) Occupies, or was displaced from a position in the same local 
commuting area of the vacancy;
    (5) Files an application for a specific vacancy within the time 
frames established by the agency, and provides proof of eligibility 
required under Sec. 330.708(a)(2); and
    (6) Is determined by the agency to be well-qualified for the 
specific position.
    (b) Eligibility for special selection priority begins:
    (1) On the date the agency issues the RIF separation notice;
    (2) On the date an agency certifies that it cannot place an 
employee eligible under Sec. 330.703(b)(3);
    (3) On the date an employee eligible under Sec. 330.703(b)(4) is 
notified that his or her disability annuity has been or is being 
terminated;
    (4) On the date the agency issues a formal notice of proposed 
separation to an employee for declining a transfer of function or 
directed reassignment outside the local commuting area; or
    (5) On the date the National Guard Bureau or Military Department 
certifies that an employee under Sec. 330.703(b)(6) has retired under 5 
U.S.C. 8337(h) or 8456.
    (c) Eligibility expires:
    (1) 1 year after separation, except for those employees separated 
on or after September 12, 1995, and prior to February 29, 1996. For 
these employees, eligibility expired February 28, 1997;
    (2) 1 year after an agency certifies that an individual under 
Sec. 330.703(b)(3) cannot be placed;
    (3) 1 year after an individual under Sec. 330.703(b)(4) receives 
notification that his/her disability annuity has been or will be 
terminated;
    (4) When the employee receives a career, career-conditional, or 
excepted appointment without time limit in any agency at any grade 
level;
    (5) When the employee no longer meets the eligibility requirements 
set forth in paragraph (a) of this section (e.g., the employee is no 
longer being separated by RIF, or under adverse action procedures for 
declining a transfer of function or directed reassignment outside the 
local commuting area, or separates by resignation or non-discontinued 
service retirement prior to the RIF effective date); or
    (6) At an agency's discretion, when an eligible employee declines a 
career, career conditional, or excepted appointment (without time 
limit), for which the employee has applied and been rated well-
qualified; or upon the failure of the applicant to respond within a 
reasonable period of time to an offer or official inquiry of 
availability.

[[Page 31325]]

Sec. 330.705  Order of selection in filling vacancies from outside the 
agency's workforce.

    (a) Except as provided in paragraph (c) of this section, when 
filling a vacancy from outside the agency's workforce an agency must 
select:
    (1) Current or former agency employees eligible under the agency's 
Reemployment Priority List described in subpart B of this part, then;
    (2) At the agency's option, any other former employee displaced 
from the agency (under appropriate selection procedures), then;
    (3) Current or former Federal employees displaced from other 
agencies eligible under this subpart; and then;
    (4) Any other candidate (under appropriate selection procedures) 
(optional).
    (b) The following actions are subject to the above order of 
selection and are covered under this subpart:
    (1) Competitive appointments (e.g., from registers or delegated 
examining);
    (2) Noncompetitive appointments to the competitive service (e.g., 
the types listed in part 315, subpart F of this chapter, as well as 
Outstanding Scholar and Bilingual/Bicultural appointments made under 
the authority of the Luevano consent decree);
    (3) Movement between agencies (e.g., transfer), except as provided 
for in paragraph (c)(8) of this section or part 351 of this chapter;
    (4) Reinstatements (except as provided for in paragraph (a)(2) of 
this section); and
    (5) Time-limited competitive appointments of 121 days or more, 
including all extensions, except as provided in (c)(11) of this 
section.
    (c) The following actions are not covered under this subpart:
    (1) Selections from an agency's internal Career Transition 
Assistance Plan or Reemployment Priority List as described in subparts 
F and B of this part respectively or any other internal agency movement 
of current agency employees;
    (2) Appointments of 10 point veteran preference eligibles (CP, CPS, 
and XP), if reached through an appropriate appointing authority;
    (3) Reemployment of former agency employees who have regulatory or 
statutory reemployment rights, including the reemployment of injured 
workers who have either been restored to earning capacity by the Office 
of Workers' Compensation Programs (OWCP), or who have received a notice 
that their compensation benefits will cease because of recovery from 
the disabling injury or illness;
    (4) Temporary appointments of under 121 days (including all 
extensions);
    (5) An action taken under part 351 of this chapter;
    (6) The filling of a position by an excepted appointment;
    (7) Conversion of an employee of the same agency who is serving on 
an excepted appointment that confers eligibility for noncompetitive 
appointment into the competitive service, e.g., conversion of a 
veterans' readjustment appointee to a career conditional appointment 
under Sec. 315.705 of this chapter;
    (8) Noncompetitive movement of displaced employees between agencies 
as a result of reorganization, transfer of function, or mass transfer;
    (9) The reemployment of a former agency employee who retired under 
a formal trial retirement and reemployment program, and who seeks 
reemployment with that agency under the program's provisions, and 
within the program's applicable time limits;
    (10) An action taken by the agency head or his or her designee 
pursuant to the settlement of a formal complaint, grievance, appeal, or 
other litigation;
    (11) Extensions of temporary or term actions, up to the full period 
allowed, provided that the original action, upon which the extension is 
based, was made on or before February 29, 1996 (the effective date of 
the interim regulations); or for actions initially made after February 
29, 1996, the original vacancy announcement must have specified that 
the position was open to ICTAP candidates, and that if they were found 
well-qualified, would be afforded selection priority. The original 
announcement must have stated that an extension was possible without 
further announcement. This exception includes extensions granted by OPM 
to the 2 or 4 year limit allowed for temporary and term appointments, 
respectively;
    (12) The reappointment of former employees with their agency into 
hard-to-fill positions, the duties of which require unique skills and 
experience necessary to conduct a formal skills-based training program 
for the agency;
    (13) The retention of individuals whose positions are brought into 
the competitive service under Sec. 316.701 or Sec. 316.702 of this 
chapter and subsequent conversion, when applicable, under Sec. 315.701 
of this chapter;
    (14) The retention of an employee for whom OPM has approved a rule 
5.1 variation;
    (15) The placement of a member of the Senior Executive Service 
under 5 U.S.C. 3594; and
    (16) Assignments made under the Intergovernmental Personnel Act 
(IPA) as provided in part 334 of this chapter.


Sec. 330.706  Notification of displaced employees.

    (a) In addition to meeting the requirements of 
Sec. 330.602(a)(1)(iv) and Sec. 330.607(a), at the time it issues a 
specific RIF separation notice or notice of proposed removal for 
declining a directed reassignment or transfer of function outside of 
the local commuting area, an agency must give each of its eligible 
employees information in writing about the special selection priority 
available to them under the Interagency Career Transition Assistance 
Plan. Such information must contain guidance to the employee on how to 
apply for vacancies under the ICTAP, and what documentation is 
generally required as proof of eligibility.
    (b) Agencies must take reasonable steps to ensure eligible 
employees are notified of all vacancies the agency is filling and what 
is required for them to be determined well-qualified for the vacancies.
    (c) Each agency is required to advise, in writing, ICTAP candidates 
who apply for specific vacancies within its local commuting area of the 
results of their application, and whether or not they were found well-
qualified. If they are not found well-qualified, such notice must 
include information on the results of an independent, second review 
conducted by the agency. If an applicant is found well-qualified, and 
another well-qualified surplus or displaced candidate is selected, the 
applicant must be so advised.


Sec. 330.707  Reporting Vacancies to OPM.

    (a) Agencies are required to report all competitive service 
vacancies to OPM when accepting applications from outside the agency 
(including applications for temporary positions lasting 121 or more 
days), except when they elect to fill a position by the transfer or 
reassignment of an ICTAP eligible from another agency.
    (b) Content. Notice to OPM of job announcements must include the 
position title, location, pay plan and grade (or pay rate) of the 
vacant position; application deadline; and other information specified 
by OPM. In addition, for all positions reported, agencies are required 
to provide OPM with an electronic file of the complete vacancy 
announcement or recruiting bulletin, which must contain:
    (1) Title, series, pay plan, and grade (or pay rate);
    (2) Duty location;

[[Page 31326]]

    (3) Open and closing dates, plus any other information dealing with 
how application receipt will be controlled, such as the use of early 
cut-off dates;
    (4) Name of issuing agency and announcement number;
    (5) Qualification requirements, including knowledges, skills, and 
abilities;
    (6) Entrance pay;
    (7) Brief description of duties;
    (8) Basis of rating;
    (9) What to file;
    (10) Instructions on how to apply;
    (11) Information on how to claim veterans' preference, if 
applicable;
    (12) The agency's definition of well-qualified and information on 
how CTAP and/or ICTAP candidates may apply, including proof of 
eligibility required; and
    (13) Equal employment opportunity statement.


Sec. 330.708  Application and selection.

    (a) Application.
    (1) To receive this special selection priority, eligible employees 
must apply directly to agencies for specific vacancies in the local 
commuting area within the prescribed time frames, attach the 
appropriate proof of eligibility as described in paragraph (a)(2) of 
this section, and be determined well-qualified by the agency for the 
specific position.
    (2) Employees may submit the following as proof of eligibility for 
the special selection priority:
    (i) RIF separation notice, or notice of proposed removal for 
declining a directed reassignment or transfer of function to another 
commuting area;
    (ii) Documentation, e.g., SF-50, Notification of Personnel Action, 
showing that they were separated as a result of reduction in force, or 
for declining a transfer of function or directed reassignment to 
another commuting area;
    (iii) Official certification from an agency stating that it cannot 
place an individual whose injury compensation has been or is being 
terminated;
    (iv) Official notification from OPM that an individual's disability 
annuity has been or is being terminated; or
    (v) Official notification from the Military Department or National 
Guard Bureau that the employee has retired under 5 U.S.C. 8337(h) or 
8456.
    (b) Selection. In making selections, an agency will adhere to the 
overall order of selection set forth in Sec. 330.705. In addition, the 
following apply:
    (1) An agency cannot select another candidate from outside the 
agency if eligible employees are available for the vacancy or 
vacancies.
    (2) If two or more eligible employees apply for a vacancy and are 
determined to be well-qualified, any of these eligible employees may be 
selected.
    (3) If no eligible employees apply or none is deemed well-
qualified, the agency may select another candidate without regard to 
this subpart. (This flexibility does not apply to selections made from 
the agency's Reemployment Priority List as described in subpart B of 
this part.)
    (c) An agency may select a candidate from its Career Transition 
Assistance Plan or Reemployment Priority List, as described in subparts 
F and B of this part respectively, or another current agency employee 
(if no eligible employees are available through its CTAP) at any time.


Sec. 330.709  Qualification reviews.

    Agencies will ensure that a documented, independent second review 
is conducted whenever an otherwise eligible employee is found to be not 
well-qualified. The applicant must be advised in writing of the results 
of the second review.


Sec. 330.710  Reporting.

    (a) Each agency shall submit an annual report covering each fiscal 
year activity under this subpart to OPM no later than December 31 of 
each year.
    (b) Each report will include data specified in Sec. 330.610 of 
subpart F of this part, and will also include information on:
    (1) The number of selections of ICTAP eligible employees from other 
Federal agencies;
    (2) The number of ICTAP candidates found not well-qualified;
    (3) The number of ICTAP candidates found well-qualified;
    (4) The number of selections of competitive service tenure group 1 
or 2 employees from other Federal agencies who are not displaced;
    (5) The number of declinations from ICTAP eligible candidates;
    (6) The number of competitive service tenure group 1 or 2 
appointments from outside the Federal Government; and
    (7) The number of placements made from the agency's Reemployment 
Priority List.


Sec. 330.711  Oversight.

    OPM is responsible for oversight of the Interagency Career 
Transition Assistance Plan for Displaced Employees and may conduct 
reviews of agency activity at any time.

[FR Doc. 97-14905 Filed 6-6-97; 8:45 am]
BILLING CODE 6325-01-P