OPM employee displacements temporarily halted due to high financial burdens incurred
The Office of Personnel Management (OPM) has made a significant decision regarding its plans to relocate some of its employees. In a recent announcement, OPM stated that relocation efforts for its employees are currently on pause.
This decision comes under the leadership of OPM Director Scott Kupor, who took office in July. The new leadership is taking a fresh look at the relocation plans, with a focus on finding more cost-effective solutions.
The pause in relocation plans affects approximately 250 OPM employees, which is nearly 20% of its workforce. These employees had previously been asked to accept a management-directed reassignment (MDR) and relocate to office space in another geographic region, or face termination.
The cost of relocating these employees is estimated to be nearly $42 million, a figure that is significantly higher than the annual salary of most federal employees according to recent data analysis from the Pew Research Center.
In addition to the cost, OPM is also considering the personal and family hardship that a move could cause. As a result, the agency has granted exemptions to employees facing significant personal and family hardship. However, the new efforts may affect employees with an MDR and those with exemptions.
The Office of the Chief Human Capital Officer, Office of the Chief Financial Officer, and Facilities, Security, and Emergency Management are all involved in the relocation efforts. The OPM is also collaborating with the General Services Administration (GSA) to identify opportunities for placing OPM employees in other federal facilities.
Updates on the relocation efforts are expected "in the coming weeks." In the meantime, the first cohort of employees will no longer be expected to be relocated to their new duty station by December 2025.
Interestingly, the Agriculture Department is planning to relocate more than half of its D.C.-based workforce to regional hubs across the country. OPM is currently reviewing the information provided by impacted employees regarding federal facilities in their areas.
While the search results do not provide information about the new schedule for relocations of OPM employees led by OPM Director Scott Kupor, a more cost-effective relocation program is being piloted by OPM. This program is expected to make the relocation process more affordable for both the agency and its employees.
In the meantime, OPM has agreed to pay for mandatory relocation expenses including transportation, per diem, miscellaneous moving expenses, sell or buy residence transactions, lease termination expenses, transportation and temporary storage of household goods, extended storage of household goods, transportation of a mobile home or boat used as a primary residence, and relocation income tax (RIT) allowance.
This pause in relocation plans is a significant development for the affected OPM employees. As the agency continues to review its options, employees can expect updates in the coming weeks.
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