[Federal Register Volume 66, Number 107 (Monday, June 4, 2001)]
[Rules and Regulations]
[Pages 29895-29897]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-13917]



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  Federal Register / Vol. 66, No. 107 / Monday, June 4, 2001 / Rules 
and Regulations  

[[Page 29895]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Parts 330, 332, 351, 353

RIN 3206-AJ32


Career Transition Assistance for Surplus and Displaced Federal 
Employees

AGENCY: Office of Personnel Management.

ACTION: Interim regulation with request for comment.

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SUMMARY: The Office of Personnel Management is issuing interim 
regulations making the current career transition assistance programs 
permanent to help Federal employees displaced from their jobs by 
downsizing. These interim regulations remove the September 30, 2001 
sunset date and reporting requirements and eliminate the Interagency 
Placement Program.

DATES: This interim regulation is effective on June 4, 2001. We will 
consider written comments received by August 3, 2001.

ADDRESSES: Send or deliver written comments to: Richard A. Whitford, 
Acting Associate Director for Employment, Office of Personnel 
Management; Suite 6500, 1900 E Street NW., Washington, DC 20415-9000.

FOR FURTHER INFORMATION, CONTACT: Jacqueline Yeatman on (202) 606-0960, 
FAX (202) 606-2329, TDD (202) 606-0023 or by email at: 
[email protected].

SUPPLEMENTARY INFORMATION: It has long been the Federal Government's 
policy to help displaced workers affected by downsizing and 
restructuring find other employment, either within the Government or 
the private sector. The Office of Personnel Management (OPM) has 
provided placement priority for employees affected by downsizing since 
at least 1970, by regulation. Before 1996, this consisted of the 
Displaced Employee Program/Interagency Placement Assistance Program 
(DEP/IPAP), later followed by the Interagency Placement Program (IPP). 
All of these programs operated under a passive model with centralized 
inventories, or ``lists'' of separated Federal employees. Agencies 
received these lists only when they planned to fill a vacancy through a 
competitive appointment register or certificate. Placement rates for 
these programs were relatively low for several reasons. In many cases, 
agencies filled jobs through the transfer or reinstatement of current 
or former Federal employees--and these actions did not generate IPP 
referral lists. In other cases, candidates on the placement list were 
unreachable, unavailable, or uninterested by the time their name was 
referred for a job.
    In 1995, OPM published regulations temporarily suspending the IPP 
and establishing the Career Transition Assistance Plan (CTAP) and 
Interagency Career Transition Assistance Plan (ICTAP). The regulations 
were developed in cooperation with representatives from agencies and 
employee unions. These new programs were based on the ``employee 
empowerment'' model--an entirely different premise from previous 
placement programs. The idea was relatively simple--affected employees 
get the resources and information they need, coupled with meaningful 
hiring priority for Federal jobs, to help them take charge of their job 
search as early and effectively as possible. Placement data suggest 
that when employees take an active role in their own transition, faster 
and better placements result. The designers of these programs also 
believed that giving only well-qualified displaced employees hiring 
priority would improve the quality of placements made and reduce the 
``stigma'' sometimes associated with selection priority. Because this 
was a new and untested approach to the placement of former Federal 
employees, the regulations included reporting requirements and a sunset 
date. This gave OPM the opportunity to evaluate these programs and 
determine their usefulness. On July 27, 1999, OPM published regulations 
extending the sunset date through September 30, 2001.
    Each year, OPM gathers information from Executive Branch agencies 
on their use of CTAP and ICTAP, as well as data on involuntary 
separations and hiring. We can assess the effectiveness of the existing 
placement programs using this information. The data show that agencies 
hired 1,182 displaced employees through ICTAP in the past four years. 
This represents a placement rate that is significantly higher than 
under the IPP. The CTAP and ICTAP programs combined have placed nearly 
4,000 surplus or displaced employees since 1996. When the results for 
the Department of Defense Priority Placement Program (PPP) and agency 
Reemployment Priority Lists (RPLs) are added, the overall placement 
rate approaches 50% of those eligible. It is true that, over the last 
four years, the number of placements through CTAP and ICTAP has 
decreased--but this is not surprising, since fewer employees have 
become surplus or displaced and the number of involuntary separations 
has dropped off as well. Significantly, the placement rate (the 
proportion of those placed relative to the number of RIF separations) 
has stayed about the same. This tells us that our existing placement 
programs are effective tools whether downsizing activity is widespread 
or limited.
    If we allow the current placement programs to expire in 2001, the 
Government's primary placement tool will once again be the IPP. Based 
on the lower placement rate of the IPP, and the long-standing 
dissatisfaction of agencies with its operation, we concluded that this 
is not a viable option. During the IPP era, agencies used centralized 
registers for most competitive Federal hiring; today's environment of 
decentralized and delegated job-by-job examining does not lend itself 
to a centralized, placement-list approach. The IPP added more time to 
the recruitment process--time agencies cannot afford to lose in today's 
fast-moving and highly competitive job market. In addition, the IPP 
sets significantly lower standards for qualification and demonstrated 
performance, making it less likely to result in good placements. In 
contrast, CTAP and ICTAP give the employee more control over the 
process, are decentralized and faster, and set higher standards for 
``matches.'' OPM and the Human Resources Management Council's Executive 
Committee (composed of human resource directors

[[Page 29896]]

from cabinet departments, large agencies, and representatives from 
small agencies) concluded that returning to the IPP would be a step 
backward for the Federal Government's placement process.
    While ICTAP was designed primarily to help employees affected by 
reductions in force, it is a crucial program for other reasons. The 
regulations currently provide two years of ICTAP selection priority to 
veterans in certain restricted positions affected by competitive 
outsourcing under OMB Circular A-76 procedures (see 5 CFR part 330, 
subpart D). Former employees trying to return to work after long-term 
recovery from compensable injuries, former disability annuitants who 
have recovered, and disabled National Guard Technicians have been using 
ICTAP selection priority to return to work. In addition, placement 
programs for some District of Columbia Department of Corrections 
employees (5 CFR part 330, subpart K) and employees affected by the 
turnover of the Panama Canal (5 CFR part 330, subpart L) were patterned 
after ICTAP and use many of the same regulatory provisions. If we let 
the current programs sunset, it would affect all of these former 
employees.
    CTAP and ICTAP provide a continual ``safety net'' that is always 
available when needed, but does not significantly hamper other 
personnel processes when not needed. Given the continuing need for a 
placement safety net for employees, we believe it makes sense to remove 
the sunset date from these regulatory provisions. Therefore, this 
regulation, when finalized, will permanently eliminate the IPP and 
replace it with the CTAP and ICTAP. In a related change, we are 
eliminating the agency reporting requirements under CTAP and ICTAP to 
reduce the administrative burden on agencies and because these reports, 
originally designed to monitor agency progress when these programs were 
initially established, are no longer necessary. We are also deleting 
references to the IPP in parts 332, 351 and 353 and replacing them with 
ICTAP where appropriate.
    We are issuing this regulation as interim for several reasons. 
Because these placement programs would otherwise expire in September 
2001, displaced employees need to know now whether they will get the 
one year of eligibility to which they would normally be entitled. 
Although current downsizing activity has tapered off significantly 
since the peak of a few years ago, agencies such as the Department of 
Defense and others are still implementing base closures, restructuring, 
and consolidations. In addition, the potential effects of privatization 
or outsourcing initiatives make these placement programs critical for 
those employees wishing to pursue other Federal employment options 
rather than accepting private employment. Finally, there are employees 
recovering from disability or injury who may need to use this program 
for help in getting back to work. In summary, we want to ensure that 
these important and effective placement tools for Federal employees 
remain in place. This will help the Federal Government maintain its 
image as an employer who values employees and treats them with concern 
even when restructuring is necessary.
    While we are not proposing any changes to the way these programs 
will operate at this time, we believe there is room for improvement. We 
plan to work with Federal agencies, employees, and other stakeholders 
on ways to improve and streamline the entire portfolio of placement 
programs for displaced employees. Any changes resulting from this 
effort would be published as proposed regulations, with request for 
comment, to allow for maximum dialogue on these issues.

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 Government 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.
Steven R. Cohen,
Acting Director.

    Accordingly, OPM is amending parts 330, 332, 351 and 353 as 
follows:

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

    1. The authority citation for part 330 is revised 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 G also issued under 5 U.S.C. 8337(h) 
and 8457(b); subpart K also issued under sec. 11203 of Pub. Law 105-
33 (111 Stat. 738) and Pub. Law 105-274 (112 Stat. 2424); subpart L 
also issued under sec. 1232 of Pub. L. 96-70, 93 Stat. 452.

Subpart C--Reserved


Secs. 330.301--330.307  [Reserved]

    2. In part 330, subpart C consisting of Secs. 330.301 through 
330.307, is removed and reserved.

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


Secs. 330.603 and 330.610  [Removed and reserved]

    3. In Subpart F, Secs. 330.603 and 330.610 are removed and 
reserved.

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


Secs. 330.702 and 330.710  [Removed and reserved]

    4. In Subpart G, Secs. 330.702 and 330.710 are removed and 
reserved.

PART 332--RECRUITMENT AND SELECTION THROUGH COMPETITIVE EXAMINATION

    5. The authority citation for part 332 continues to read as 
follows:

    Authority: 5. U.S.C. 1302, 3301, 3302; E.O. 10577, 3 CFR, 1954-
1958 Comp., p. 218.


Sec. 332.314  [Removed and reserved]

    6. Section 332.314 is removed and reserved.

PART 351--REDUCTION IN FORCE

    7. The authority citation for part 351 continues to read as 
follows:

    Authority: 5 U.S.C. 1302, 3502, 3503; sec. 351.801 also issued 
under E.O. 12828, 58 FR 2965.


    8. In Sec. 351.807, paragraph (f) is revised to read as follows:


Sec. 351.807  Certification of Expected Separation.

* * * * *
    (f) An agency may also enroll eligible employees on the agency's 
Reemployment Priority List up to 6 months in advance of a reduction in 
force. For requirements and criteria, see subpart B of part 330 of this 
chapter.

PART 353--RESTORATION TO DUTY FROM UNIFORMED SERVICE OR COMPENSABLE 
INJURY

    9. The authority citation for part 353 continues to read as 
follows:

    Authority: 38 U.S.C. 4301 et seq., and 5 U.S.C. 8151.


[[Page 29897]]



    10. In Sec. 353.110, paragraph (b) is revised to read as follows:


Sec. 353.110  OPM Placement Assistance.

* * * * *
    (b) Employee returning from compensable injury. OPM will provide 
placement assistance to an employee with restoration rights in the 
executive, legislative, or judicial branches who cannot be placed in 
his or her former agency and who either has competitive status or is 
eligible to acquire it under 5 U.S.C. 3304(C). If the employee's agency 
is abolished and its functions are not transferred, or it is not 
possible for the employee to be restored in his or her former agency, 
the employee is eligible for placement assistance under the Interagency 
Career Transition Assistance Plan (ICTAP) under part 330, subpart G, of 
this chapter. This paragraph does not apply to an employee serving 
under a temporary appointment pending establishment of a register 
(TAPER).

[FR Doc. 01-13917 Filed 6-1-01; 8:45 am]
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