Rebalance for an Effective Defense Uniform and Civilian Employees Act (REDUCE Act)

To provide for a limitation on the number of civilian employees at the Department of Defense, and for other purposes. 1. Short title This Act may be cited as the Rebalance for an Effective Defense Uniform and Civilian Employees Act (REDUCE Act) 2. Limitation on number of employees in the Department of Defense (a) Limitation on FTEs (1) In general Notwithstanding the requirements of section 129 (2) SES Of the positions permitted pursuant to paragraph (1) for fiscal years 2021 through 2025 at the Department of Defense, not more than 1,000 may be career appointee (as defined in section 3132(a)(4) (b) Voluntary reductions To achieve the reductions in personnel required by subsection (a), the Secretary of Defense may exercise the authority provided for— (1) voluntary separation incentive payments (subchapter II of chapter 35 (2) voluntary early retirement payments (sections 8336(d)(2)(D) and 8414(b)(1)(B) of such title). (c) Involuntary reductions (1) In general Beginning on October 1, 2015, if voluntary reductions are inadequate to achieve the limitations provided in subsection (a), the Secretary of Defense shall separate employees using involuntary measures, including reductions in force. (2) RIF application Notwithstanding any other provision of law, rule, or regulation, when applying retention factors with respect to any employee during any reduction in force under paragraph (1), the Secretary of Defense shall assign greater weight to the performance factor over the other factors if such employee has a summary rating level of fully successful (d) Adjustment of limit (1) Determination As soon as practicable after the start of each of fiscal years 2021 through 2025, the Secretary of Defense shall determine the difference (if any), expressed as a percentage, between the permanent active duty end strength minimum levels in effect under section 691(b) (2) Adjustment On the date that the determination is made under paragraph (1), the Secretary shall adjust the limitations provided under subsection (a) with respect to the number of total full-time equivalent positions and Senior Executive Service positions by a percentage equal to the percentage determined under paragraph (1). (3) Achievement of adjustment After any adjustment under paragraph (2), in order to achieve the adjusted limitation for the applicable fiscal year, the Secretary (as the case may be)— (A) may hire individuals to occupy full-time equivalent positions; or (B) shall separate employees occupying such positions using the involuntary procedures provided under subsection (c). (4) Limitation on adjustment No adjustment may be made under this subsection that would result in the number of full-time equivalent positions and Senior Executive Service positions to be greater than the limitations on the number of such positions provided under subsection (a). (e) Reports (1) Secretary of Defense The Secretary of Defense— (A) shall include a report in the Secretary’s annual budget request for each of fiscal years 2017 through 2025 on the progress and impact of the requirements of this Act; and (B) may, in addition to the report required under subparagraph (A), report to Congress on the impact of such requirements at any time throughout any of such fiscal years. (2) GAO Not later than 3 years after the date of enactment of this Act, the Administrator of General Services shall submit a report to Congress examining the progress and impact of the requirements of this Act.

Summary: Rebalance for an Effective Defense Uniform and Civilian Employees Act (REDUCE Act) - Limits full-time positions in the Department of Defense (DOD), in each of FY2021-FY2025, subject to specified adjustments to be made by the DOD Secretary, to a number not greater than 85% of the number of such positions at DOD as of September 30, 2015. Permits not more than 1,000 of such positions to be career appointees within the Senior Executive Service. Authorizes the DOD Secretary to offer voluntary separation incentive payments and voluntary early retirement payments to achieve the reductions required by this Act, but requires the Secretary to use involuntary measures, including reductions in force, beginning on October 1, 2015, to achieve required reductions in personnel levels if voluntary measures are inadequate.