Mandatory Distributions for Everyone Approaching Current Ratings Cycle, Kupor Indicates

OPM Implements Mandatory Performance Rating Rationing

In a recent announcement, OPM Director Scott Cooper revealed that, for the current fiscal year (FY2026), there will be mandatory rationing of performance ratings across the federal government. He emphasized that there won’t be a requirement to rate a certain percentage of employees below level 3, which is considered “fully successful.”

Mr. Kupole previously outlined plans for a government-wide mandatory rating allocation, mentioning the 2026 cycle for senior executives as a model. This cycle restricts the top two rating levels (4 and 5) to only 30% of ratings.

“We are working on similar guidance for the broader federal workforce, with expected implementation in FY26, although the full regulatory review process is still ongoing,” he noted. “We’ve advised agencies to aim for a normalized distribution of performance ratings.”

He clarified, “OPM has not introduced any mandatory requirements for ‘less than satisfactory’ ratings, nor do we plan to do so.” He pointed out that it’s unlikely for only 0.3% of employees to be rated below a level 3, suggesting this doesn’t align with expected performance trends in a workforce of around 2 million, a size that typically sees a 5-10% performance decline during review cycles.

While previewing the SES policy and its anticipated expansion, Kupole remarked that performance reviews seem inflated. This view was supported when OPM recently launched a new federal employee data platform, revealing that in 2025, 30% of employees received the highest rating (Level 5), 18% were at Level 4, and 51% at Level 3, with less than 1% falling into levels 1 or 2.

So far, OPM has not set a deadline for the mandatory allocation nor addressed the issue of penalizing employees with Level 1 or 2 ratings, which some believe could lead to layoffs. Kupole had suggested the possibility of merging these lower levels, but this point was absent from the latest updates.

He acknowledged that the enforced distribution of ratings differs significantly from the previous administration’s approach, adding that having everyone meet expectations shouldn’t be viewed negatively. It highlights that employees are indeed contributing meaningfully to the agency’s goals.

“Distinguishing between good work and outstanding work is important,” he stated. Yet, he noted how discouraging it can be for morale when nearly no one receives a negative review, leading to a lack of accountability for poor performance.

Senate Developments on Funding and Employee Benefits

Meanwhile, the Senate is actively discussing funding for most government agencies. Kupole reiterated that everyone will be subject to the required distribution in the current rating cycle.

Additionally, projections indicate the average TSP account is set to grow by about $20,000 in 2025 with the introduction of Roth conversion options. There’s also a Senate bill aiming to restore regular telework and enhance benefits in Virginia.

A proposed report suggests that a name change could involve up to $125 million for the Department of Defense, while there are 50,000 pending retirement applications, prompting discussions on expedited benefits for those awaiting full retirement compensation.