[Federal Register Volume 65, Number 169 (Wednesday, August 30, 2000)]
[Rules and Regulations]
[Pages 52641-52642]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-21948]



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 Rules and Regulations
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  Federal Register / Vol. 65, No. 169 / Wednesday, August 30, 2000 / 
Rules and Regulations  

[[Page 52641]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 330

RIN 3206-AI69


Positions Restricted to Preference Eligibles

AGENCY: Office of Personnel Management.

ACTION: Final rule.

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SUMMARY: The Office of Personnel Management is issuing final 
regulations covering competitive service positions that are restricted 
to preference eligibles. These regulations update the responsibilities 
of both individual agencies and OPM to provide career transition 
assistance to preference eligibles who are separated by reduction in 
force because their positions are contracted out to the private sector 
under authority of Office of Management and Budget Circular A-76.

DATES: These final regulations are effective September 29, 2000.

FOR FURTHER INFORMATION CONTACT: Thomas A. Glennon or Jacqueline R. 
Yeatman, 202-606-0960, FAX 202-606-2329.

SUPPLEMENTARY INFORMATION:

Background

    On July 27, 1999, OPM published interim regulations at 64 FR 40505 
covering special career transition assistance benefits that are 
available to preference eligibles in restricted positions whose work is 
contracted out to the private sector under authority of Office of 
Management and Budget Circular A-76.
    The interim regulations were effective upon publication in the 
Federal Register. Interested parties could submit written comments to 
OPM concerning the regulations in the 60 day period following 
publication of the regulations.
    For reference, section 5 U.S.C. 3310 limits entrance examinations 
for the positions of custodian, elevator operator, guard, and messenger 
only to preference eligibles, provided that preference eligibles are 
available for these positions. OPM implements this statutory 
requirement through regulations published in 5 CFR part 330, subpart D.
    Beginning with final regulations OPM published on September 30, 
1985, at 50 FR 39876, OPM has provided special career transition 
benefits for preference eligible employees who hold restricted 
positions, and who are separated by reduction in force because their 
positions were contracted out to the private sector under authority of 
OMB Circular A-76. OPM later revised the 5 CFR part 330, subpart D 
regulations on June 27, 1994, at 59 FR 32873, to include changes in 
OPM's programs for displaced employees.
    OPM is now again revising this subpart to reflect subsequent 
changes in available placement programs, including the Career 
Transition Assistance Plan authorized by 5 CFR 330, subpart F, and the 
Interagency Career Transition Assistance Plan authorized by 5 CFR 330, 
subpart G.

Comments

    OPM received one comment, from a Federal agency, on the interim 
regulations. The agency concurred with the regulations as written.

Final Regulations

    The interim regulations published at 64 FR 40505 are published as 
final regulations without further revision to 5 CFR 330, subpart D. A 
cross-reference is added to these regulations concerning eligibility 
for the Interagency Career Transition Assistance Plan is added to 5 CFR 
330, subpart G.

Summary of Benefits Provided by These Final Regulations

    Final 5 CFR 330.404 affirms that both individual agencies and OPM 
have additional responsibilities when the agency, under authority of 
Office of Management and Budget Circular A-76, contracts out the work 
of a preference eligible who holds a restricted position.
    Final 5 CFR 330.405 affirms that, if a preference eligible is 
separated from a restricted position by reduction in force because the 
agency contracts out the veteran's work under OMB Circular A-76, the 
agency must provide the employee with transition services and selection 
priority authorized under the Career Transition Assistance Plan and the 
Interagency Career Transition Assistance Plan. The agency is also 
responsible for applying OMB's policy directives on the preference 
eligible's right of first refusal for positions that are contracted out 
to the private sector. Finally, the agency is required to cooperate 
with State dislocated worker units in retraining the displaced 
preference eligible for other continuing positions.
    Final 5 CFR 330.406 updates OPM's responsibilities under 5 CFR 330, 
subpart D. OPM's responsibilities for preference eligibles displaced 
from restricted positions as the result of contracting out include 
requiring agencies to provide the veterans with both internal selection 
priority (e.g., the Career Transition Assistance Plan), and with 
interagency selection priority (e.g., the Interagency Career Transition 
Assistance Plan). Other OPM responsibilities include encouraging 
cooperation between local Federal activities to assist these displaced 
preference eligibles in obtaining other Federal positions, including 
positions with the U.S. Postal Service, and monitoring these placement 
efforts.
    Final 5 CFR 330.407 provides that preference eligibles who are 
separated from restricted positions by reduction in force because their 
work is contracted out have interagency selection priority under the 
Interagency Career Transition Assistance Plan for 2 years following 
separation by reduction in force. Other Federal employees have this 
interagency selection priority for 1 year following reduction in force 
separation. A cross reference to this provision is added to the final 
regulations in a new Sec. 330.704(c)(7).

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 certain 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.

[[Page 52642]]

List of Subjects in 5 CFR Part 330

    Armed Forces reserves, Government employees.

Office of Personnel Management.
Janice R. Lachance,
Director.


    Accordingly, the interim rule which was published at 64 FR 40505 on 
July 27, 1999, is adopted as final with the following changes:

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; subpart 
B also issued under 5 U.S.C. 3315 and 8151; Sec. 330.401 also issued 
under 5 U.S.C. 3310, subpart I also issued under sec. 4432 of Pub. 
L. 102-484, 106 Stat. 2315; subpart K also issued under sec. 11203 
of Pub. L. 105-33, 111 Stat. 738; subpart L also issued under sec. 
1232 of Pub. L. 96-70, 93 Stat. 452.


    2. Subpart D of part 330 is revised to read as follows:
Subpart D--Positions Restricted to Preference Eligibles
Sec.
330.401   Competitive examination.
330.402   Direct recruitment.
330.403   Noncompetitive actions.
330.404   Displacement of preference eligibles occupying restricted 
positions in contracting out situations.
330.405   Agency placement assistance.
330.406   OPM placement assistance.
330.407   Eligibility for the Interagency Career Transition 
Assistance Plan.

Subpart D--Positions Restricted to Preference Eligibles


Sec. 330.401  Competitive examination.

    In each entrance examination for the positions of custodian, 
elevator operator, guard, and messenger (referred to in this subpart as 
restricted positions), OPM shall restrict competition to preference 
eligibles as long as preference eligibles are available.


Sec. 330.402  Direct recruitment.

    In direct recruitment by an agency under delegated authority, the 
agency shall fill each restricted position by the appointment of a 
preference eligible as long as preference eligibles are available.


Sec. 330.403  Noncompetitive actions.

    An agency may fill a restricted position by the appointment by 
noncompetitive action of a nonpreference eligible only when authorized 
by OPM.


Sec. 330.404  Displacement of preference eligibles occupying restricted 
positions in contracting out situations.

    An individual agency and OPM both have additional responsibilities 
when the agency decides, in accordance with the Office of Management 
and Budget (OMB) Circular A-76, to contract out the work of a 
preference eligible who holds a restricted position. These additional 
responsibilities are applicable if a preference eligible holds a 
competitive service position that is:
    (a) A restricted position as designated in 5 U.S.C. 3310 and 
Sec. 330.401; and
    (b) In retention tenure group tenure I or II, as defined in 
Sec. 351.501(b) (1) and (2) of this chapter.


Sec. 330.405  Agency placement assistance.

    An agency that separates a preference eligible from a restricted 
position by reduction in force under part 351 of this chapter because 
of a contracting out situation covered in Sec. 330.404 must, consistent 
with Sec. 330.602, advise the employee of the opportunity to 
participate in available career transition programs. The agency is also 
responsible for:
    (a) Applying OMB's policy directives on the preference eligibles' 
right of first refusal for positions that are contracted out to the 
private sector; and
    (b) Cooperating with State dislocated worker units, as designated 
or created under title III of the Job Training Partnership Act, to 
retrain displaced preference eligibles for other continuing positions.


Sec. 330.406  OPM placement assistance.

    OPM's responsibilities include:
    (a) Assisting agencies in operating positive placement programs, 
such as the Career Transition Assistance Plan, which is authorized by 
subpart F of this part;
    (b) Providing interagency selection priority through the 
Interagency Career Transition Assistance Plan, which is authorized by 
subpart G of this part; and
    (c) Encouraging cooperation between local Federal activities to 
assist these displaced preference eligibles in applying for other 
Federal positions, including positions with the U.S. Postal Service.


Sec. 330.407  Eligibility for the Interagency Career Transition 
Assistance Plan.

    (a) A preference eligible who is separated from a restricted 
position by reduction in force under part 351 of this chapter because 
of a contracting out situation covered in Sec. 330.404 has interagency 
selection priority under the Interagency Career Transition Assistance 
Plan, which is authorized by subpart G of this part. Section 330.704 
covers the general eligibility requirements for the Interagency Career 
Transition Assistance Plan.
    (b) A preference eligible covered by this subpart is eligible for 
the Interagency Career Transition Assistance Plan for 2 years following 
separation by reduction in force from a restricted position.

    3. In subpart G, Sec. 330.704, paragraph (c)(7) is added to read as 
follows:


Sec. 330.704  Eligibility.

* * * * *
    (c) * * *
    (7) Two years after separation, for those employees eligible under 
Sec. 330.407(b).

[FR Doc. 00-21948 Filed 8-29-00; 8:45 am]
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