Attorneys for Federal Employees — Nationwide

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Today at a Glance

• Performance Ratings Overhaul: OPM finalized the largest rewrite of the federal performance review system in decades. Agencies must cap how many employees receive top ratings, level 2 of the five-level scale disappears, and employees lose the ability to grieve their ratings — with agency compliance required by January 1, 2027.

• Schedule Policy/Career Notices: Close to 8,000 reclassified employees have now received official notice that they lost their civil service protections, and some agencies are asking them to sign acknowledgment forms. Attorneys advising affected employees say signing confirms receipt — not agreement.

• Retirement Goes Digital: OPM announced the “last day of paper” — all but about 5% of federal retirement applications will now be filed and processed through its online portal, with a pledge to issue a first pension payment within seven days of retirement for complete packages.

Top Stories:

1. OPM Finalizes Performance Review Overhaul — Top Ratings Capped, Grievance Rights Removed

Source: Federal News Network, July 6, 2026

TL;DR: The Office of Personnel Management (OPM) released a final rule overhauling the federal performance management system — the largest change to that system in decades. The rule was posted for public inspection (document 2026-13715) with Federal Register publication scheduled for July 7, and agencies must comply by January 1, 2027. The rule removes the longstanding ban on forced distribution of ratings: agencies will have to cap the share of employees who can receive ratings at the top two performance levels, while no limits apply to lower ratings. It also eliminates level 2 of the government's five-level rating scale, removes employees' ability to contest their ratings through negotiated grievance and arbitration proceedings, and drops the requirement that agency officials review unsatisfactory ratings before they become final. OPM will review agency rating systems every other year, and supervisors will be rated in part on driving a culture of accountability. OPM points to Government Accountability Office and Merit Systems Protection Board (MSPB) reports on rating inflation; the American Federation of Government Employees told OPM in comments that a standardized distribution conflicts with the Civil Service Reform Act's requirement for objective, merit-based evaluation, and OPM responded by adding language that appraisal systems must be administered consistent with the merit system principles.

For federal employees, this means:

• Expect fewer top ratings once your agency adopts the new system (compliance is due by January 1, 2027). Under a cap, a top rating can be limited even when many employees meet the standard — and ratings feed performance awards, promotions, and extra retention service credit in a RIF (Reduction in Force) under 5 C.F.R. § 351.504.

• If your collective bargaining agreement currently lets you grieve a performance rating, the rule removes that avenue. Remaining routes are narrower — internal reconsideration where your agency offers it, or EEO and whistleblower-reprisal channels where the facts support them.

• Keep your own record of accomplishments — self-assessments, metrics, and written recognition. In a capped system, contemporaneous documentation is what distinguishes similarly performing employees when ratings, awards, and RIF credit are on the line.

Legal Insight:

Chapter 43 of Title 5 (5 U.S.C. § 4302) requires agencies to appraise employees against established performance standards and to use those appraisals as a basis for rewarding, promoting, retaining, and removing employees; OPM's rule rewrites the implementing regulations at 5 C.F.R. Part 430. Removing ratings from negotiated grievance procedures narrows a right many employees have exercised under 5 U.S.C. § 7121, and a downgraded rating can carry real consequences — from RIF retention credit under 5 C.F.R. § 351.504 to a Performance Improvement Plan (PIP) or a Chapter 43 action under 5 U.S.C. § 4303. If a lower rating leads to a PIP or a proposed action, response deadlines run quickly — consult a federal employment attorney early.

2. Schedule Policy/Career Notices Arrive — Nearly 8,000 Employees Face At-Will Status and Acknowledgment Forms

Source: Federal News Network, July 6, 2026

TL;DR: In the days after the June 3 executive order finalizing Schedule Policy/Career, close to 8,000 career federal employees received official notice that they lost their civil service protections; the order gave agencies seven days to notify affected employees. Reclassified employees can now be removed at will, with no MSPB appeal of adverse actions and no avenue to challenge the reclassification itself. About 97% of the reclassified positions are GS-15 or Senior-Level, and the Defense Department accounts for roughly 1,608 positions — about a third of the list — followed by HHS, DHS, Treasury, and Commerce. At HHS, Federal News Network reports the HR office asked hundreds of employees to sign forms acknowledging placement in the excepted service, at-will status, ineligibility for MSPB appeals, and loss of access to the Office of Special Counsel (OSC), described in the form as conditions of continued employment. OPM's implementation guidance directs agencies not to punish employees who decline to sign, and OPM says the classification complies with due process requirements and preserves whistleblower protections. Attorneys advising affected employees note that signing an acknowledgment confirms receipt of the notice, not agreement with it. Three lawsuits challenging Schedule Policy/Career are pending, including an amended complaint from the Government Accountability Project and NARFE aimed at the June 3 order — and with OPM having originally estimated 50,000 positions, attorneys tracking implementation say the list could still grow.

For federal employees, this means:

• If you received a reclassification notice, keep copies of the notice, any acknowledgment form, and your SF-50s. Signing an acknowledgment form documents that you received it — it does not waive your legal arguments, and OPM's own guidance says employees should not be punished for declining to sign.

• Your other rights do not disappear with reclassification. EEO protections still apply — the 45-day deadline to contact an EEO counselor under 29 C.F.R. § 1614.105(a)(1) runs from each discriminatory act — and OPM states whistleblower protections remain in place, though the pending lawsuits dispute how much protection survives in practice.

• Watch for expansion. The June 3 order converted fewer than 8,000 positions against an original estimate of 50,000, and attorneys following the rollout say later rounds could reach deeper into the GS scale.

Legal Insight:

The removal procedures in 5 U.S.C. § 7513 — 30 days' advance written notice, a chance to respond, a written decision, and an MSPB appeal — do not apply to positions excepted under 5 U.S.C. § 7511(b)(2) as confidential, policy-determining, policy-making, or policy-advocating, which is the exclusion Schedule Policy/Career invokes. Pending litigation, including Government Accountability Project v. OPM, No. 1:25-cv-00347 (D.D.C.), contends the reclassifications violate the Civil Service Reform Act and constitutional due process. Reclassified employees still hold the 45-day EEO counselor clock under 29 C.F.R. § 1614.105(a)(1), and protected disclosures are defined at 5 U.S.C. § 2302(b)(8) — though whether and how OSC access survives reclassification is one of the questions now in dispute. If you receive an adverse action after reclassification, the timelines are short and the forum questions are unsettled — consult a federal employment attorney promptly.

3. OPM Declares the “Last Day of Paper” — Nearly All Retirement Applications Now Run Through the Online Portal

Source: FEDweek, July 1, 2026

TL;DR: OPM announced that going forward, all but about 5% of federal retirement applications will be filed and processed through its Online Retirement Application portal, calling the shift the “last day of paper.” OPM also committed to issuing a retiree's first pension payment within seven days of retirement for applicants who submit a complete retirement package by their separation date. A new pre-retirement application lets employees and agency HR offices complete much of the process before separation, and OPM says it will begin processing applications while final payroll information is still being finalized. The most recent monthly data shows why the change matters: of 11,300 applications received in May, 8,300 were digital, and digital applications averaged 66 days to process versus 105 days for paper. Some cases still take a year or more, and every application first passes through agency personnel and payroll offices — a stage OPM has said can take months before its own clock starts. NARFE called the announcement a welcome development but said it fixes only one part of the process, pointing to continuing difficulty reaching OPM by phone on annuity, health insurance, and 1099-R issues.

For federal employees, this means:

• If you are within a year of retirement, ask your HR office now how it handles the online portal and the new pre-retirement application. The longest delays often happen at the agency stage — before OPM ever sees your file.

• The seven-day first-payment commitment applies only to complete packages submitted by your separation date. Gather service-credit records, survivor elections, and insurance documentation early; one missing form takes you out of the fast lane.

• Plan for reduced income during processing. While OPM adjudicates your claim, you receive interim payments that are only part of your final annuity and can vary widely; the difference is paid once your case is finalized.

Legal Insight:

OPM administers FERS retirement claims under 5 U.S.C. Chapter 84, and a faster process does not change your rights when OPM gets it wrong: an employee or retiree may seek reconsideration of an adverse determination — eligibility, service credit, or annuity computation — and then appeal to the MSPB under 5 U.S.C. § 8461(e) (for CSRS, 5 U.S.C. § 8347(d)). In a retirement appeal, the applicant bears the burden of proving entitlement, so your SF-50s, deposit records, and election forms are the evidence that carries the case. Keep complete copies of everything you submit through the portal, including confirmation screens and dates.

Mindful Moment of the Day

The Hallway Comment Release

A hallway comment from a supervisor, coworker, or leader can stay with you long after the conversation ends. Maybe it was vague, dismissive, or tense, and now your mind keeps replaying it while you try to work. When that happens, pause and notice where the comment landed in your body: chest, stomach, throat, or shoulders. Take a slow breath into that area without forcing it away. Then write down only the factual part of what was said, if it matters. This helps separate what happened from all the fear and meaning your mind may be adding around it. 

In Case You Missed It

A few quick hits from our recent videos and posts:

OPM's New Suitability Rule Lets Agencies Bar Federal Employees for Up to Three Years

DoD Canceled Your Union Contract — Your EEO and MSPB Rights Didn't Go With It

Bureau of Prisons Closures and RIF Notices: What Affected Employees Need to Know