OPM Finalizes Performance Management Rule Affecting Federal Employees

The U.S. Office of Personnel Management (OPM) has issued a final rule making significant changes to the federal performance management system for most non-Senior Executive Service (SES) employees, including General Schedule (GS) and prevailing rate employees.

Earlier this year, NAGE informed members about OPM's proposed revisions to the federal performance management regulations and the potential impact they could have on employees. With the publication of this final rule, many of those proposed changes are now official.

The regulation takes effect on August 6, 2026, with compliance for certain supervisory appraisal requirements beginning January 1, 2027.

What's Changing?

 According to OPM, the final rule is intended to increase the efficiency and effectiveness of performance management across the federal government. Key changes include:

• Eliminating certain summary performance rating patterns.

• Allowing agencies to implement forced or standardized distributions of performance ratings.

• Removing the requirement for mandatory higher-level review of Level 1 (Unacceptable) performance ratings.

• Eliminating the option to grieve a rating of record through an agency's administrative grievance procedure.

• Requiring all supervisors covered by these regulations to have a supervisory critical element in their performance plans.

• Requiring OPM to conduct biennial certifications of agency performance appraisal systems.

Why These Changes Matter

 Performance management plays an important role in a federal employee's career. Performance ratings may influence promotions, within-grade increases, awards, performance-based actions, and other employment decisions.

As agencies begin implementing these new regulations, employees should become familiar with how the changes may affect agency performance appraisal programs and the procedures used to evaluate employee performance.

While the final rule establishes a government-wide framework, individual agencies may still have policies, negotiated collective bargaining agreement provisions, and implementation procedures that govern how performance management is administered.