
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 5USC3502]

 
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
 
                           PART III--EMPLOYEES
 
                   Subpart B--Employment and Retention
 
     CHAPTER 35--RETENTION PREFERENCE, RESTORATION, AND REEMPLOYMENT
 
                   SUBCHAPTER I--RETENTION PREFERENCE
 
Sec. 3502. Order of retention

    (a) The Office of Personnel Management shall prescribe regulations 
for the release of competing employees in a reduction in force which 
give due effect to--
        (1) tenure of employment;
        (2) military preference, subject to section 3501(a)(3) of this 
    title;
        (3) length of service; and
        (4) efficiency or performance ratings.

In computing length of service, a competing employee--
        (A) who is not a retired member of a uniformed service is 
    entitled to credit for the total length of time in active service in 
    the armed forces;
        (B) who is a retired member of a uniformed service is entitled 
    to credit for--
            (i) the length of time in active service in the armed forces 
        during a war, or in a campaign or expedition for which a 
        campaign badge has been authorized; or
            (ii) the total length of time in active service in the armed 
        forces if he is included under section 3501(a)(3)(A), (B), or 
        (C) of this title; and

        (C) is entitled to credit for--
            (i) service rendered as an employee of a county committee 
        established pursuant to section 8(b) of the Soil Conservation 
        and Allotment Act or of a committee or association of producers 
        described in section 10(b) of the Agricultural Adjustment Act; 
        and
            (ii) service rendered as an employee described in section 
        2105(c) if such employee moves or has moved, on or after January 
        1, 1966, without a break in service of more than 3 days, from a 
        position in a nonappropriated fund instrumentality of the 
        Department of Defense or the Coast Guard to a position in the 
        Department of Defense or the Coast Guard, respectively, that is 
        not described in section 2105(c).

    (b) A preference eligible described in section 2108(3)(C) of this 
title who has a compensable service-connected disability of 30 percent 
or more and whose performance has not been rated unacceptable under a 
performance appraisal system implemented under chapter 43 of this title 
is entitled to be retained in preference to other preference eligibles.
    (c) An employee who is entitled to retention preference and whose 
performance has not been rated unacceptable under a performance 
appraisal system implemented under chapter 43 of this title is entitled 
to be retained in preference to other competing employees.
    (d)(1) Except as provided under subsection (e), an employee may not 
be released, due to a reduction in force, unless--
        (A) such employee and such employee's exclusive representative 
    for collective-bargaining purposes (if any) are given written 
    notice, in conformance with the requirements of paragraph (2), at 
    least 60 days before such employee is so released; and
        (B) if the reduction in force would involve the separation of a 
    significant number of employees, the requirements of paragraph (3) 
    are met at least 60 days before any employee is so released.

    (2) Any notice under paragraph (1)(A) shall include--
        (A) the personnel action to be taken with respect to the 
    employee involved;
        (B) the effective date of the action;
        (C) a description of the procedures applicable in identifying 
    employees for release;
        (D) the employee's ranking relative to other competing 
    employees, and how that ranking was determined; and
        (E) a description of any appeal or other rights which may be 
    available.

    (3) Notice under paragraph (1)(B)--
        (A) shall be given to--
            (i) the State or entity designated by the State to carry out 
        rapid response activities under section 134(a)(2)(A) of the 
        Workforce Investment Act of 1998; and
            (ii) the chief elected official of such unit or each of such 
        units of local government as may be appropriate; and

        (B) shall consist of written notification as to--
            (i) the number of employees to be separated from service due 
        to the reduction in force (broken down by geographic area or on 
        such other basis as may be required under paragraph (4));
            (ii) when those separations will occur; and
            (iii) any other matter which might facilitate the delivery 
        of rapid response assistance or other services under title I of 
        the Workforce Investment Act of 1998.

    (4) The Office shall prescribe such regulations as may be necessary 
to carry out this subsection. The Office shall consult with the 
Secretary of Labor on matters relating to title I of the Workforce 
Investment Act of 1998.
    (e)(1) Subject to paragraph (3), upon request submitted under 
paragraph (2), the President may, in writing, shorten the period of 
advance notice required under subsection (d)(1)(A) and (B), with respect 
to a particular reduction in force, if necessary because of 
circumstances not reasonably foreseeable.
    (2) A request to shorten notice periods shall be submitted to the 
President by the head of the agency involved, and shall indicate the 
reduction in force to which the request pertains, the number of days by 
which the agency head requests that the periods be shortened, and the 
reasons why the request is necessary.
    (3) No notice period may be shortened to less than 30 days under 
this subsection.
    (f)(1) The Secretary of Defense or the Secretary of a military 
department may--
        (A) separate from service any employee who volunteers to be 
    separated under this subparagraph even though the employee is not 
    otherwise subject to separation due to a reduction in force; and
        (B) for each employee voluntarily separated under subparagraph 
    (A), retain an employee in a similar position who would otherwise be 
    separated due to a reduction in force.

    (2) The separation of an employee under paragraph (1)(A) shall be 
treated as an involuntary separation due to a reduction in force.
    (3) An employee with critical knowledge and skills (as defined by 
the Secretary concerned) may not participate in a voluntary separation 
under paragraph (1)(A) if the Secretary concerned determines that such 
participation would impair the performance of the mission of the 
Department of Defense or the military department concerned.
    (4) The regulations prescribed under this section shall incorporate 
the authority provided in this subsection.
    (5) No authority under paragraph (1) may be exercised after 
September 30, 2005.

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 428; Pub. L. 90-367, Sec. 3, 
June 29, 1968, 82 Stat. 278; Pub. L. 90-623, Sec. 1(23), Oct. 22, 1968, 
82 Stat. 1313; Pub. L. 95-454, title III, Sec. 307(e), title IX, 
Sec. 906(a)(2), Oct. 13, 1978, 92 Stat. 1149, 1224; Pub. L. 99-251, 
title III, Sec. 306(a), Feb. 27, 1986, 100 Stat. 27; Pub. L. 101-508, 
title VII, Sec. 7202(c), Nov. 5, 1990, 104 Stat. 1388-335; Pub. L. 102-
484, div. D, title XLIV, Sec. 4433(a)(1), Oct. 23, 1992, 106 Stat. 2721; 
Pub. L. 104-106, div. A, title X, Secs. 1034, 1043(d)(1), Feb. 10, 1996, 
110 Stat. 430, 438; Pub. L. 104-201, div. A, title XVI, Sec. 1609, Sept. 
23, 1996, 110 Stat. 2738; Pub. L. 105-277, div. A, Sec. 101(f) [title 
VIII, Sec. 405(d)(1), (f)(1)], Oct. 21, 1998, 112 Stat. 2681-337, 2681-
417, 2681-429; Pub. L. 106-398, Sec. 1 [[div. A], title XI, Sec. 1103], 
Oct. 30, 2000, 114 Stat. 1654, 1654A-311.)

                      Historical and Revision Notes
------------------------------------------------------------------------
                                                    Revised Statutes and
     Derivation                U.S. Code             Statutes at Large
------------------------------------------------------------------------
(a)................  5 U.S.C. 861(a) (less 2d and  June 27, 1944, ch.
                      3d provisos), (c).            287, Sec.  12 (less
                                                    2d and 3d provisos),
                                                    58 Stat. 390.
                                                   Aug. 19, 1964, Pub.
                                                    L. 88-448, Sec.  202
                                                    (1)-(3), (4)
                                                    (``(c)''), 78 78
                                                    Stat. 486.
(b)................  5 U.S.C. 861(a) (2d           June 27, 1944, ch.
                      proviso).                     287, Sec.  12 (2d
                                                    proviso), 58 Stat.
                                                    390.
------------------------------------------------------------------------

    In subsection (a), the words ``reduction in force'' are substituted 
for ``reduction in personnel''. The words ``in any civilian service of 
any Federal agency'' are omitted as unnecessary because of the 
application stated in section 3501. In the second sentence, the word 
``total'' in the phrase ``length of service'' is omitted for consistency 
with paragraph (3), and the words ``subject to subsection (c) of this 
section'' are omitted as unnecessary in view of the supplied distinction 
between a competing employee who is not a retired member of a uniformed 
service and such an employee who is a retired member of a uniformed 
service. In paragraph (A), the words ``total length of time in active 
service'' are substituted for ``length of time spent in active service'' 
for consistency with paragraph (B)(ii).
    In subsections (a) and (b), the references to ``performance'' 
ratings and ratings of ``satisfactory'' are added on authority of former 
section 2005, which is carried into section 4304.
    Standard changes are made to conform with the definitions applicable 
and the style of this title as outlined in the preface to the report.

                       References in Text

    Section 8(b) of the Soil Conservation and Allotment Act, referred to 
in subsec. (a)(C)(i), probably means section 8(b) of the Soil 
Conservation and Domestic Allotment Act, which is classified to section 
590h(b) of Title 16, Conservation.
    Section 10(b) of the Agricultural Adjustment Act, referred to in 
subsec. (a)(C)(i), is classified to section 610(b) of Title 7, 
Agriculture.
    The Workforce Investment Act of 1998, referred to in subsec. (d)(3), 
(4), is Pub. L. 105-220, Aug. 7, 1998, 112 Stat. 936, as amended. Title 
I of the Act is classified principally to chapter 30 (Sec. 2801 et seq.) 
of Title 29, Labor. Section 134(a)(2)(A) of the Act is classified to 
section 2864(a)(2)(A) of Title 29. For complete classification of this 
Act to the Code, see Short Title note set out under section 9201 of 
Title 20, Education, and Tables.


                               Amendments

    2000--Subsec. (f)(5). Pub. L. 106-398 substituted ``September 30, 
2005'' for ``September 30, 2001''.
    1998--Subsec. (d)(3)(A)(i). Pub. L. 105-277, Sec. 101(f) [title 
VIII, Sec. 405(f)(1)(A)(i)], added cl. (i) and struck out former cl. (i) 
which read as follows: ``the appropriate State dislocated worker unit or 
office (referred to in section 311(b)(2) of the Job Training Partnership 
Act), or the State or entity designated by the State to carry out rapid 
response activities under section 134(a)(2)(A) of the Workforce 
Investment Act of 1998; and''.
    Pub. L. 105-277, Sec. 101(f) [title VIII, Sec. 405(d)(1)(A)(i)], 
added cl. (i) and struck out former cl. (i) which read as follows: ``the 
appropriate State dislocated worker unit or units (referred to in 
section 311(b)(2) of the Job Training Partnership Act); and''.
    Subsec. (d)(3)(B)(iii). Pub. L. 105-277, Sec. 101(f) [title VIII, 
Sec. 405(f)(1)(A)(ii)], struck out ``under the Job Training Partnership 
Act or'' before ``under title I of''.
    Pub. L. 105-277, Sec. 101(f) [title VIII, Sec. 405(d)(1)(A)(ii)], 
substituted ``other services under the Job Training Partnership Act or 
under title I of the Workforce Investment Act of 1998'' for ``other 
services under the Job Training Partnership Act''.
    Subsec. (d)(4). Pub. L. 105-277, Sec. 101(f) [title VIII, 
Sec. 405(f)(1)(B)], struck out ``the Job Training Partnership Act or'' 
before ``title I of''.
    Pub. L. 105-277, Sec. 101(f) [title VIII, Sec. 405(d)(1)(B)], 
substituted ``Secretary of Labor on matters relating to the Job Training 
Partnership Act or title I of the Workforce Investment Act of 1998'' for 
``Secretary of Labor on matters relating to the Job Training Partnership 
Act''.
    1996--Subsec. (a)(C)(ii). Pub. L. 104-106, Sec. 1043(d)(1), 
substituted ``January 1, 1966'' for ``January 1, 1987''.
    Subsec. (f). Pub. L. 104-201 amended subsec. (f) generally. Prior to 
amendment, subsec. (f) read as follows:
    ``(f)(1) The Secretary of Defense or the Secretary of a military 
department may--
        ``(A) release in a reduction in force an employee who volunteers 
    for the release even though the employee is not otherwise subject to 
    release in the reduction in force under the criteria applicable 
    under the other provisions of this section; and
        ``(B) for each employee voluntarily released in the reduction in 
    force under subparagraph (A), retain an employee in a similar 
    position who would otherwise be released in the reduction in force 
    under such criteria.
    ``(2) A voluntary release of an employee in a reduction in force 
pursuant to paragraph (1) shall be treated as an involuntary release in 
the reduction in force.
    ``(3) An employee with critical knowledge and skills (as defined by 
the Secretary concerned) may not participate in a voluntary release 
under paragraph (1) if the Secretary concerned determines that such 
participation would impair the performance of the mission of the 
Department of Defense or the military department concerned.
    ``(4) The regulations prescribed under this section shall 
incorporate the authority provided in this subsection.
    ``(5) The authority under paragraph (1) may not be exercised after 
September 30, 1996.''
    Pub. L. 104-106, Sec. 1034, added subsec. (f).
    1992--Subsecs. (d), (e). Pub. L. 102-484 added subsecs. (d) and (e).
    1990--Subsec. (a)(C). Pub. L. 101-508 amended subpar. (C) generally. 
Prior to amendment, subpar. (C) read as follows: ``is entitled to credit 
for service rendered as an employee of a county committee established 
pursuant to section 590h(b) of title 16, or of a committee or an 
association of producers described in section 610(b) of title 7.''
    1986--Subsec. (a)(C). Pub. L. 99-251 struck out ``who is an employee 
in or under the Department of Agriculture'' before ``is entitled to 
credit''.
    1978--Subsec. (a). Pub. L. 95-454, Sec. 906(a)(2), substituted 
``Office of Personnel Management'' for ``Civil Service Commission''.
    Subsec. (b). Pub. L. 95-454, Sec. 307(e), substituted provisions 
relating to retention of a preference eligible with a compensable 
service-connected disability of 30 percent or more, for provisions 
relating to retention of preference eligible employees on the basis of 
ratings.
    Subsec. (c). Pub. L. 95-454, Sec. 307(e), added subsec. (c).
    1968--Subsec. (a). Pub. L. 90-623 made minor changes in form and 
punctuation in subpars. (A) and (B), and, in subpar. (C), substituted 
``section 590h(b) of title 16'' and ``section 610(b) of title 7'' for 
``section 8(b) of the Soil Conservation and Domestic Allotment Act (16 
U.S.C. 590h(b))'' and ``section 10(b) of the Agricultural Adjustment Act 
of May 12, 1933 (48 Stat. 37)'' respectively.
    Subsec. (a)(C). Pub. L. 90-367 added subsec. (a)(C).


                    Effective Date of 1998 Amendment

    Pub. L. 105-277, div. A, Sec. 101(f) [title VIII, Sec. 405(g)], Oct. 
21, 1998, 112 Stat. 2681-337, 2681-434, as amended by Pub. L. 106-400, 
Sec. 2, Oct. 30, 2000, 114 Stat. 1675, provided that:
    ``(1) Immediately effective amendments.--The amendments made by 
subsections (a) through (d) [amending this section and sections 2014, 
2015, and 2026 of Title 7, Agriculture, sections 1255a and 1613 of Title 
8, Aliens and Nationality, sections 636, 1022a, 3116, and 3151 of Title 
15, Commerce and Trade, section 79l of Title 16, Conservation, section 
665 of Title 18, Crimes and Criminal Procedure, sections 2296 and 2311 
of Title 19, Customs Duties, sections 1070d-2, 1087vv, 3443, 5934, 5938, 
6365, 6434, 6453, and 6455 of Title 20, Education, section 5855 of Title 
22, Foreign Relations and Intercourse, section 2102 of Title 29, Labor, 
section 6703 of Title 31, Money and Finance, sections 4102A, 4103A, and 
4213 of Title 38, Veterans' Benefits, and sections 603, 1437u, 1474, 
3013, 3056, 3056a, 3056h, 3796ee, 4368a, 4953, 4959, 6103, 6864, 6873, 
7274h, 9806, 11302, 12637, 12653c, 12655m, 12899c, 12899e, and 13823 of 
Title 42, The Public Health and Welfare, amending provisions set out as 
notes under sections 1183a and 1522 of Title 8, sections 1143, 2391, 
2501, 2701, and 2687 of Title 10, Armed Forces, section 3304 of Title 
26, Internal Revenue Code, section 1721 of Title 29, and section 4101 of 
Title 38, and repealing provisions set out as notes under sections 1501 
and 1551 of Title 29] shall take effect on the date of the enactment of 
this Act [Oct. 21, 1998].
    ``(2) Subsequently effective amendments.--
        ``(A) Mckinney-vento homeless assistance act.--The amendments 
    made by subsection (e) shall take effect on July 1, 1999.
        ``(B) Job training partnership act.--The amendments made by 
    subsection (f) [amending this section and sections 2014, 2015, and 
    2026 of Title 7, Agriculture, sections 1255a and 1613 of Title 8, 
    Aliens and Nationality, sections 636 and 3116 of Title 15, Commerce 
    and Trade, sections 2296 and 2311 of Title 19, Customs Duties, 
    sections 1070d-2, 1087vv, 6365, 6434, 6453, and 6455 of Title 20, 
    Education, section 2102 of Title 29, Labor, section 6703 of Title 
    31, Money and Finance, sections 4102A, 4103A, and 4213 of Title 38, 
    Veterans' Benefits, and sections 603, 1437u, 1474, 3013, 3056, 
    3056a, 3056h, 3796ee, 4368a, 4953, 4959, 6864, 6873, 7274h, 9806, 
    11302, 12653c, 12655m, 12899c, and 13823 of Title 42, The Public 
    Health and Welfare, and amending provisions set out as notes under 
    sections 1183a and 1522 of Title 8, sections 1143, 2501, 2687, and 
    2701 of Title 10, Armed Forces, section 3304 of Title 26, Internal 
    Revenue Code, section 1721 of Title 29, and section 4101 of Title 
    38] shall take effect on July 1, 2000.''


                    Effective Date of 1996 Amendment

    Section 1043(d)(2) of Pub. L. 104-106 provided that: 
``Notwithstanding any provision of subsection (c) [set out as a note 
under section 8347 of this title], the amendment made by paragraph (1) 
[amending this section] shall--
        ``(A) take effect on the date of the enactment of this Act [Feb. 
    10, 1996]; and
        ``(B) apply with respect to any reduction in force carried out 
    on or after such date.''


                    Effective Date of 1992 Amendment

    Section 4433(a)(2) of Pub. L. 102-484 provided that: ``The amendment 
made by paragraph (1) [amending this section] shall apply with respect 
to any personnel action taking effect on or after the last day of the 
90-day period beginning on the date of enactment of this Act [Oct. 23, 
1992].''


                    Effective Date of 1990 Amendment

    Amendment by Pub. L. 101-508 applicable with respect to any 
individual who, on or after Jan. 1, 1987, moves from employment in 
nonappropriated fund instrumentality of Department of Defense or Coast 
Guard, that is described in section 2105(c) of this title, to employment 
in Department or Coast Guard, that is not described in section 2105(c), 
or who moves from employment in Department or Coast Guard, that is not 
described in section 2105(c), to employment in nonappropriated fund 
instrumentality of Department or Coast Guard, that is described in 
section 2105(c), see section 7202(m)(1) of Pub. L. 101-508, set out as a 
note under section 2105 of this title.


                    Effective Date of 1978 Amendment

    Amendment by Pub. L. 95-454 effective 90 days after Oct. 13, 1978, 
see section 907 of Pub. L. 95-454, set out as a note under section 1101 
of this title.


                    Effective Date of 1968 Amendment

    Amendment by Pub. L. 90-623 intended to restate without substantive 
change the law in effect on Oct. 22, 1968, see section 6 of Pub. L. 90-
623, set out as a note under section 5334 of this title.


                               Regulations

    For provisions relating to promulgation of regulations necessary to 
carry out amendment by section 1043(d)(1) of Pub. L. 104-106, see 
section 1043(b) of Pub. L. 104-106, set out as a Regulations; Effective 
Date of 1996 Amendment note under section 8347 of this title.


    Interagency Placement Program for Federal Employees Affected by 
                           Reductions in Force

    Pub. L. 103-337, div. A, title X, Sec. 1066, Oct. 5, 1994, 108 Stat. 
2850, provided that:
    ``(a) Study and Report.--(1) The Director of the Office of Personnel 
Management shall conduct a study on the feasibility of establishing a 
mandatory interagency placement program for Federal employees affected 
by reductions in force.
    ``(2) For purposes of paragraph (1), an interagency placement 
program is a program that provides a system to require the offering of a 
position in an agency to an employee of another agency affected by a 
reduction in force if--
        ``(A) the position cannot be filled through a placement program 
    of the agency in which the position is located;
        ``(B) the employee to whom the offer is made is qualified for 
    the offered position; and
        ``(C) the geographic location of the offered position is within 
    the commuting area of--
            ``(i) the residence of the employee; or
            ``(ii) the employee's present or last-held position.
    ``(3) The Director shall carry out this subsection in consultation 
with the Secretary of Defense.
    ``(4) The Director shall seek comments from the heads of all 
appropriate Federal agencies in conducting the study required by 
paragraph (1).
    ``(5) Not later than six months after the date of the enactment of 
this Act [Oct. 5, 1994], the Director shall submit to Congress a report 
on the results of the study required by paragraph (1) and on any action 
taken by the Director under subsection (b).
    ``(b) Agreements To Establish Interagency Placement Program.--(1) 
The Director may establish a Government-wide interagency placement 
program for Federal employees affected by reductions in force if, during 
the 6-month period beginning on the date of the enactment of this Act 
[Oct. 5, 1994], the Director, in consultation with the Secretary of 
Defense, determines that such a program is feasible. To carry out the 
program, the Director may enter into an agreement with the head of each 
agency that agrees to participate in the program. If the Director 
establishes a program under this subsection, it is not necessary that 
the program be an interagency placement program within the meaning of 
subsection (a)(2).
    ``(2) If the Director establishes a program pursuant to paragraph 
(1), the report required by subsection (a)(5) shall identify each agency 
that does not agree to participate in the program and the reasons of the 
head of that agency for not agreeing to participate.
    ``(c) Definitions.--For purposes of this section:
        ``(1) The term `agency' means an Executive agency as defined in 
    section 105 of title 5, United States Code, except that such term 
    does not include the General Accounting Office.
        ``(2) The term `Federal employees affected by reductions in 
    force' means Federal employees who are separated, or are scheduled 
    to be separated, from service under a reduction in force pursuant 
    to--
            ``(A) regulations prescribed under section 3502 of title 5, 
        United States Code; or
            ``(B) procedures established under section 3595 of such 
        title.''


         Special Rule on Application of Subsections (d) and (e)

    Section 4433(b) of Pub. L. 102-484, as amended by Pub. L. 103-337, 
div. A, title III, Sec. 341(a), Oct. 5, 1994, 108 Stat. 2720, provided 
that:
    ``(1) The provisions of section 3502(d) and (e) of title 5, United 
States Code (as added by subsection (a)) shall apply to employees of the 
Department of Defense according to their terms, except that, with 
respect to any reduction in force within that agency that would involve 
the separation of a significant number of employees (as determined under 
paragraph (1)(B) of such section 3502(d)), any reference in such section 
3502(d) to `60 days' shall, in the case of the employees described in 
paragraph (2), be deemed to read `120 days'.
    ``(2) The employees described in this paragraph are those employees 
of the Department of Defense who are to be separated, due to a reduction 
in force described in paragraph (1), effective on or after the last day 
of the 90-day period referred to in subsection (a)(2) [see Effective 
Date of 1992 Amendment note above] and before February 1, 2000.
    ``(3) Nothing in this subsection shall prevent the application of 
the amendment made by subsection (a) [amending this section] with 
respect to an employee if--
        ``(A) the preceding paragraphs of this subsection do not apply 
    with respect to such employee; and
        ``(B) the amendment made by subsection (a) would otherwise apply 
    with respect to such employee.
    ``(4) The Secretary of Defense shall prescribe such regulations as 
may be necessary to carry out this subsection.''


Indian Preference Laws Applicable to Bureau of Indian Affairs and Indian 
                        Health Service Positions

    Applicability of Indian preference laws to Bureau of Indian Affairs 
and Indian Health Service positions for purposes of reduction-in-force 
procedures under subsec. (a) of this section, see section 472a(a) of 
Title 25, Indians.

     Ex. Ord. No. 12828. Delegation of Certain Personnel Management 
                               Authorities

    Ex. Ord. No. 12828, Jan. 5, 1993, 58 F.R. 2965, provided:
    By the authority vested in me as President by the Constitution and 
the laws of the United States of America, including section 301 of title 
3 of the United States Code and sections 3502(e), 4505a(e), and 
5377(i)(2) of title 5 of the United States Code, it is hereby ordered as 
follows:
    Section 1. The Office of Personnel Management is designated and 
empowered to exercise, without the approval, ratification, or other 
action of the President, the following:
    (1) The authority of the President under 5 U.S.C. 3502(e), as added 
by section 4433 of Public Law 102-484, to shorten the period of advance 
notice otherwise required by law with respect to reductions in force.
    (2) The authority of the President under 5 U.S.C. 4505a(e), as added 
by section 2(19) of Public Law 102-378, to permit performance-based cash 
awards to be paid to categories of employees who would not otherwise be 
eligible.
    Sec. 2. The Director of the Office of Management and Budget is 
designated and empowered to exercise, without the approval, 
ratification, or other action of the President, the authority of the 
President under 5 U.S.C. 5377(i)(2), as added by section 2(34) of Public 
Law 102-378, to designate one or more categories of positions within an 
agency to be treated as critical positions within the meaning of 5 
U.S.C. 5377(a)(2).
    Sec. 3. This order shall be effective immediately.
                                                            George Bush.

                  Section Referred to in Other Sections

    This section is referred to in sections 2302, 7512, 7521, 9508 of 
this title; title 10 sections 1586, 1610; title 22 section 1438; title 
25 section 472a; title 31 section 732; title 32 section 709; title 42 
sections 616, 7237.
