What It Could Mean for Federal Employees

For decades, one of the most predictable aspects of a federal career has been the time-in-grade (TIG) requirement. In most cases, General Schedule (GS) employees have had to spend 52 weeks at their current grade before becoming eligible for promotion to the next higher grade.

However the Office of Personnel Management (OPM) has proposed eliminating the federal government’s time-in-grade requirement for competitive service employees. If finalized, agencies could promote qualified employees based on their abilities and qualifications instead of waiting for a one-year clock to expire.

For some employees, this could mean faster career advancement and higher lifetime earnings. For agencies, it could provide greater flexibility in recruiting and retaining talented employees. However, it also raises questions about consistency and fairness in promotion decisions.

Key Takeaways

If this rule becomes final:

• The one-year time-in-grade requirement would be eliminated.
• Employees would still have to meet all qualification and specialized experience requirements.
• Promotions would not become automatic.
• Agencies would have greater flexibility in deciding when employees are ready for promotion.
• Faster promotions could increase lifetime earnings, TSP contributions, and potentially a federal employee’s High-3 average salary used to calculate a FERS pension.

What Is the Time-in-Grade Rule?

Time-in-grade refers to the amount of time a federal employee must serve at a particular GS grade before becoming eligible for promotion to the next higher grade.  Current regulations generally require competitive service employees at GS-5 and above to complete 52 weeks at their current grade before moving to the next grade.

For example:

The rule applies regardless of whether an employee mastered the job in six months or eleven months.

What Would OPM’s Proposal Change?

The proposed regulation (posted to the Federal Register) would eliminate the federal government’s time-in-grade requirement.  Instead of waiting a full year, agencies could promote employees whenever they determine the employee has met the qualifications for the higher-grade position. Importantly, the proposal does not eliminate qualification standards.  Employees would still have to satisfy:

• OPM qualification requirements
• Specialized experience requirements
• Agency promotion procedures
• Merit promotion rules
• Any position-specific qualifications

The proposal simply removes the mandatory waiting period.

What Doesn’t Change?

Many employees mistakenly believe this proposal would allow immediate promotions.   The following would remain in effect:

• Merit system principles
• Qualification standards
• Specialized experience requirements
• Competitive promotion procedures
• Within-grade (step) increases
• Career ladder structures established by agencies

Why Does OPM Want to Eliminate Time-in-Grade?

According to OPM, the time-in-grade restriction traces back to the Korean War-era Whitten Amendment, which expired in 1978. OPM has preliminarily concluded the rule is no longer necessary given modern qualification standards, merit system principles, prohibited personnel practices, and agency promotion requirements.  The agency believes eliminating time-in-grade would help agencies better compete for talent, retain high-performing employees, and ensure promotions are based on job-related qualifications and performance, not an arbitrary waiting period.   OPM argues that the federal personnel system already contains numerous protections against improper promotions, including merit system principles and government-wide qualification standards.  Because those protections already exist, OPM believes the additional one-year waiting period is no longer necessary.

“Federal employees should be rewarded for what they can do, not how long they have waited,” OPM Director Scott Kupor said. “This proposed rule strengthens merit, gives managers more flexibility to recognize high performers, and helps agencies move talented people into mission-critical roles faster.”

The proposed rule is consistent with President Trump’s Executive Order 14170, Reforming the Federal Hiring Process and Restoring Merit to Government Service

What This Could Mean for Federal Employees

Faster Promotions

This is the most obvious impact.

Under today’s rules, an employee may be fully capable of performing the next higher grade but still have to wait months before becoming eligible.

If the proposal becomes final, agencies could promote outstanding employees sooner.

Example

Jessica is hired into a GS-9 position.

Eight months later, she has successfully completed several major projects, consistently exceeds performance expectations, and already possesses the specialized experience required for a GS-11 position.

Today: Jessica generally must wait until she completes 52 weeks as a GS-9.

Under the proposed rule: Her agency could potentially promote her earlier if it determines she meets all requirements.

Higher Lifetime Earnings

Earlier promotions may have a much larger financial impact than employees initially realize.

Suppose an employee reaches GS-13 one year earlier than under current rules.

That employee may receive:

• An additional year of GS-13 salary
• Earlier eligibility for GS-14
• Larger annual pay raises because they are based on a higher salary
• Larger TSP contributions
• Larger government matching contributions

Over a 30-year career, the cumulative difference could amount to tens of thousands of dollars.

Potentially Higher FERS Retirement Benefits

For employees covered by FERS, retirement benefits are based in part on the employee’s High-3 average salary.  If earlier promotions result in higher salaries before retirement, the employee’s High-3 average could increase.  Although every situation is different, a higher High-3 generally results in a larger FERS pension.  Employees early in their careers would likely see the greatest long-term benefit.

Improved Recruiting and Retention

Federal agencies often compete with private employers for highly skilled workers.  Private-sector organizations generally promote employees based on demonstrated ability rather than mandatory waiting periods.  Removing time-in-grade could make federal careers more competitive for experienced professionals.

Possible Concerns

While many employees may welcome the increased flexibility, others have expressed concerns.  Without a standardized waiting period, agencies could have greater discretion over promotions.  Some employees worry this could lead to:

• Greater differences between agencies
• More subjective promotion decisions
• Perceptions of favoritism
• Less predictable career progression

OPM maintains that merit system principles, qualification standards, and prohibited personnel practices would continue to provide safeguards against improper promotions.

Who Could Benefit the Most?

This proposal could have the greatest impact on:

• Early-career federal employees
• High-performing employees
• Employees in career ladder positions
• Employees in difficult-to-fill occupations
• Agencies competing for highly skilled talent

Employees who are already at GS-14, GS-15, or near retirement may experience less direct impact.

7 Ways This Could Affect Your Retirement?

The proposal creates the opportunity for earlier promotions — it does not guarantee them. The retirement benefits described below depend on whether an employee actually receives an earlier promotion, how much higher the salary is, how long they continue working, and other individual factors.  Here’s a look at how it could affect your benefits in retirement:

1. A Higher High-3 Salary (Potentially the Biggest Impact)

A FERS pension is calculated using:  High-3 Average Salary × Years of Service × Pension Multiplier

If an employee reaches a higher GS grade earlier because they no longer have to wait 52 weeks between promotions, they may spend more time earning that higher salary before retiring.

Example:

David is a GS-12 planning to retire in eight years.

Under current rules:

• GS-13 in 2028
• GS-14 in 2031

If promoted earlier:

• GS-13 in 2027
• GS-14 in 2029

That gives him additional years at GS-14, potentially increasing his High-3 average salary and resulting in a larger FERS annuity for the rest of his life.

Retirement Planning Impact: Employees 5–10 years from retirement may want to pay closer attention to promotion opportunities because reaching a higher grade even one year sooner could increase lifetime retirement income.

2. Larger TSP Contributions

Higher salaries generally mean:

• Higher employee TSP contributions (assuming the same contribution percentage)
• Larger agency matching contributions (up to the matching limit)
• More dollars invested over time

Example

A GS-13 earning $120,000 who contributes 10% puts more into the TSP than a GS-12 earning $108,000.  Those extra contributions have years to compound before retirement.  For someone still 10 years from retirement, even a relatively small annual increase can make a noticeable difference in their final TSP balance.

3. More “Catch-Up” Time at Higher Pay

Employees often spend their highest-earning years in the final decade before retirement.  Earlier promotions mean more years earning the higher salary.  That extra income could allow employees to:

• Maximize TSP contributions
• Build larger emergency savings
• Pay off debt sooner
• Delay Social Security if desired
• Build a larger retirement cushion

4. Earlier Eligibility for Future Promotions

One earlier promotion can create a ripple effect.

Instead of waiting:

GS-11 → one year → GS-12 → one year → GS-13

An employee might reach GS-13 much sooner.  Over a 25- or 30-year career, that could mean several additional years at higher grades.  The cumulative increase in lifetime earnings could be substantial.

5. Employees Near Retirement May See Little Difference

This is an important point to include because not everyone benefits equally.  Someone retiring in two years who is already a GS-15 probably won’t see much impact.  Likewise, an employee who has already reached their terminal career grade may not benefit directly.  This proposal primarily helps employees who still have multiple promotions ahead of them.

6. It Could Influence Retirement Timing

Some employees who are eligible to retire may choose to work a little longer if they receive a promotion sooner than expected.

Example

Maria planned to retire at age 60.

She is promoted to GS-14 earlier than anticipated.

Instead of retiring immediately, she decides to remain employed for another year so that her higher salary becomes part of her High-3 calculation.

That decision could permanently increase her pension.

7. It Could Change Career Planning

Today, many employees can predict their promotion timeline with reasonable accuracy.  If the rule changes, career progression may become more individualized.  That means employees may want to:

• Seek developmental assignments earlier.
• Pursue leadership opportunities sooner.
• Complete training and certifications that strengthen promotion prospects.
• Have more frequent career discussions with supervisors.

Those steps could position them for earlier promotions and, in turn, improve their retirement readiness.

Overall Pros and Cons of This Change

Frequently Asked Questions

Is the time-in-grade rule eliminated now?

No. This is currently a proposed rule. The existing regulations remain in effect unless OPM publishes a final rule.

Would promotions become automatic?

No. Employees must still meet all qualification standards and agency promotion requirements.

Would within-grade increases (step increases) change?

No. This proposal affects promotions between grades, not step increases within the same grade.

Could agencies still require employees to wait one year?

Possibly. Agencies may establish internal promotion policies that are more restrictive than the minimum government-wide requirements.

Will this increase my retirement benefit?

Possibly. Earlier promotions may increase your High-3 average salary, which could increase your FERS annuity if those higher salaries are included in your highest three consecutive years of basic pay.

Sources:  Federal Register: Elimination of Time-in-Grade (Proposed Rule)  https://www.federalregister.gov/documents/2026/05/28/2026-10552/elimination-of-time-in-grade.U.S. Office of Personnel Management: OPM Proposes Eliminating Outdated Time-in-Grade Rule  https://www.opm.gov/news/news-releases/opm-proposes-eliminating-outdated-time-in-grade-rule/