This manual chapter applies to non-RIF job abolishment procedures only. Job abolishments involving RIF procedures are outside the scope of this chapter.

Business Units (BU) - Includes all IRS organizations including top-level organizations reporting to the Commissioner, Services and Enforcement organizations, and Operations Support functions.

Commuting area - The geographic locality that constitutes one area for employment purposes. It includes any population center and the surrounding localities within which people live and can reasonably be expected to travel back and forth daily to their usual employment.

Discontinued Service Retirement (DSR) - Provides an immediate, possible reduced annuity for employees who are separated against their will. Under DSR, the key is the involuntary nature of the separation. Employees who are separated for cause on the charges of misconduct or delinquency are not eligible for a DSR.

Job abolishment - The actual termination of a position, with the duties being eliminated entirely or combined with the duties of another position or positions. Job abolishment does not involve situations where:

Reasonable offer - For this manual chapter, an offer of a position to an employee which meets all of the following conditions:

Tenure - The type of appointment an employee holds. The tenure groups are:

Voluntary Change to Lower Grade/Band - An employee’s acceptance of a formal (written) offer of voluntary change to lower grade/band within the employee’s commuting area to a position that is not lower than 3 grade/band levels or 3 grade/band intervals below the employee’s position of record. Employees who accept such offers will be offered optional grade retention if they meet the regulatory criteria. If they do not meet the regulatory requirements for optional grade retention, they will be offered optional pay retention. Acceptance of such an offer must be strictly voluntary. For purposes of this IRM, offers of voluntary changes to lower grade are not reasonable offers.

This IRM applies to competitive service employees in tenure groups 1 or 2 and in grade/bands GS-15 and below, and equivalents. It does not apply to employees designated as SES-in-Waiting who are participants in the Candidate Development Program.

Management usually resolves job abolishment issues in one of the four ways outlined below. Since this manual chapter covers Non-RIF job abolishment procedures, only those noted in Options 2 through 4 apply.

When an employee’s position is abolished, management may offer the employee the opportunity to apply for DSR if eligible. Management may attempt to place the employee in a vacant position in the same series, grade/band (or equivalent), and commuting area as the position that has been abolished--provided the affected employee meets the qualification requirements for the position. If a position cannot be identified, the employee may be placed in a vacant position at the same grade/band (or equivalent) as the abolished position, within or outside the commuting area, if the affected employee is qualified for the position. Management may also offer an employee a voluntary change to lower grade/band to a position that is not lower than 3 grade/band levels or 3 grade/band intervals below their positions of record. Management must ensure that employees are not coerced into accepting changes to lower grade/band. An employee who believes coercion has occurred should consult the local Labor Relations Office. An employee who is within the bargaining unit may wish to contact a union official. Where an employee cannot be placed through one of these methods, action will be taken under RIF procedures. When that occurs, the policies and procedures outlined in this chapter will not be followed.

In most cases, RIF procedures must be followed when it is not possible to identify which employees’ positions have been abolished. This occurs when one or more of a group of identical positions are abolished, IRS reduces the number of employees performing the same work, and it is not possible to identify which employees’ positions have been abolished. This chapter will not be used when this situation occurs.

When IRS uses generic position descriptions for multiple positions, and there are substantial differences in the actual duties performed, the positions are different for job abolishment purposes if the differences are officially recognized and well documented.

To properly document the differences between positions that appear to be identical, the Director of the Embedded Human Resources Office, or the equivalent, must provide a signed statement of differences. The statement of differences must indicate how the positions differ in terms of:

When more than one position exists under a single position description and there are substantial differences in the positions (as described above), an application for DSR based on position abolishment must be accompanied by a written statement of differences. The statement of differences will become a part of the case file, and will explain how the position being abolished is different from all other positions under the same position description, as described in item 3, above.

Employees who receive a notice of job abolishment without a specific offer will be considered surplus. Those who receive a notice of proposed removal for declining a directed reassignment are considered displaced employees. See Exhibit 6.350.1-1 for the steps in the job abolishment process, Exhibit 6.350.1-2 for a sample job abolishment letter offering DSR, and Exhibit 6.350.1-3. for a sample letter offering a voluntary change to lower grade/band. When a directed reassignment is planned, advice, processes and notices should be obtained from the Workforce Relations Division. The actions taken under this chapter are dictated by the employees’ acceptance or non-acceptance of the positions offered.

When an employee accepts, in writing, a directed reassignment within the commuting area, the employee is placed in the position represented by the offer. The employee is ineligible for CTAP.

When an employee accepts, in writing, a directed reassignment outside the commuting area:

When an employee declines, in writing, a directed reassignment within the commuting area, the employee is removed for failure to accept the directed reassignment.

When an employee declines, in writing, a directed reassignment outside the commuting area (and the employee signed a mobility agreement as a condition of employment):

When an employee declines, in writing, a directed reassignment outside the commuting area, and was not required to sign a mobility agreement as a condition of employment, the employee is removed for failure to accept the directed reassignment.

When an employee accepts, in writing, a voluntary change to lower grade/band to a position that is within his or her commuting area and is not lower than 3 grade/band levels or 3 grade/band intervals below his or her position of record, the employee is placed in the position represented by the offer. Employees who accept such offers are offered optional grade retention if they meet the regulatory criteria. If they do not meet the regulatory requirements for optional grade retention, they are offered optional pay retention. (See IRM 6.536.1, Grade and Pay Retention.) The employee is ineligible for CTAP on the date he or she accepts the position.

If an employee declines, in writing, a voluntary change to lower grade/band, the employee is not penalized for the declination (will not be perceived as having declined a reasonable offer, since this document discusses only Non-RIF job abolishment procedures). Employees must not be coerced into accepting changes to lower grade/band. Such actions must be voluntary. As circumstances within the organization change, management may make the employee a better offer if one becomes available. The employee is eligible for either DSR or severance pay, depending upon eligibility for an immediate annuity. The employee continues to receive surplus CTAP eligibility until the employee is placed, accepts DSR or voluntary retirement, or is removed.

Vacant positions and an employee’s eligibility for DSR. If an employee’s position is abolished, and a vacant position is available in the employee’s same grade/band (or equivalent) and operating, support, or functional division and commuting area, and the employee is at least minimally qualified for the position, then management should consider offering the position to the employee. If management chooses not to offer the position to the employee, the employee is still eligible for DSR if all other DSR requirements described above are met.

Reestablishing positions that have been abolished. Abolished positions should not be re-established or filled for at least 1 year after the abolishment. This includes filling the same position in the same location as a position which a buyout recipient separated. It does not cover positions abolished where the voluntary separation incentive payment (VSIP) plan indicated the position will be filled by an individual with different skills or positions filled at a location that is different from the location where the VSIP recipient separated. If there is a critical need to reestablish a position less than 1 year after job abolishment, the Business Unit (BU) should submit the following:

When an employee has been placed in a new position due to position abolishment, and the old position is reestablished within 3 years of the abolishment, an employee is given selection preference, if application is made within 15 calendar days of receiving written notice from the employer. The Embedded Human Resources Office or the Head of the Business Unit, if there is no Embedded Human Resources Office, must provide the affected employees a written notice of the reestablishment of their previously abolished positions. If there are two or more applicants for a reestablished position, the most senior applicant (using IRS entrance on duty date), who meets the position requirements, will have preference.

Appeal rights. An employee with 1 year or more of current continuous service who is removed due to circumstances related to the abolishment of his or her position may appeal the abolishment to the Merit Systems Protection Board (MSPB). As an alternative to an appeal to MSPB, a bargaining unit employee may appeal a job abolishment decision, with the consent of the Union, to binding arbitration in accordance with the National Agreement between IRS and the National Treasury Employees Union. If the employees are within the bargaining unit, they may elect to file a grievance, with subsequent invocation to arbitration, under the National Agreement (NA) or appeal to MSPB under 5 USC 7701, but not both. Management must inform these employees of these facts, and provide information about filing deadlines, filing procedures, etc.

Employees on military leave. If an employee is on military leave and his or her position is abolished, IRS must reassign the employee to another position of like status and pay upon return to duty. An employee on military leave may not be demoted or separated from civilian service except for cause or performance. If the employee performed military service for more than 30 days but less than 181 days, he or she may not be discharged, except for conduct or performance, within 6 months of his or her return to duty. If the military service was more than 180 days, the employee may not be discharged, except for conduct or performance, within 1 year after returning to duty. (See 5 CFR § 353.209(b)).

When an employee’s position is abolished, steps must be taken to remove the employee from the position and eliminate the position.

An employee who declines a directed reassignment will be removed from Federal service using the procedures in 5 CFR § 752, Adverse Actions, and section 6.752.2 of the Internal Revenue Manual (IRM). The steps outlined in section 6.752.2 of the IRM, in conjunction with any required steps for removal actions for bargaining unit employees, will govern the amount of time required to effect the removal. Removal for failing to accept a directed reassignment is a non-conduct, non-performance action.

When bargaining unit employees are removed for the reasons described above, the employees must be given written notice specifying the reasons for the proposed action thirty (30) calendar days in advance. An employee’s request for an oral and/or written reply must be received by the employer within a reasonable time after receipt of the proposed action. An employee’s request for an oral reply must be made within seven (7) calendar days of receipt of the proposal letter. Any documents not submitted by the employee at the time of the oral reply, but received within five (5) days of the oral reply, where practicable, will be included in the reply record.

When non-bargaining unit employees are removed as described above, they must be given 30-day advance written notice specifying the reasons for the proposed action. An employee must make an oral or written reply within 15 calendar days of receipt of the proposed action. An employee must request an oral reply within seven (7) calendar days of receipt of the proposal letter. Any documents not submitted by the employee at the time of the oral reply, but received within five (5) days of the oral reply, where practicable, will be included in the reply record.

Bargaining unit employees are reassigned pursuant to Article 15 of the National Agreement II. If a bargaining unit employee refuses a reassignment under circumstances requiring removal, the procedures in Article 39 of the National Agreement II will govern the amount of time required to effect the removal.