Another Office of Personnel Management (OPM) proposed rule change would impact how federal managers rank their employees, capping the number of 4’s and 5’s (above average) that can be given to employees – a return to the “forced distribution” quota system that has been prohibited for decades. There is no cap on the number of 3’s or 1’s. The proposed rule also eliminates the ability to rank an employee with a 2 (minimally satisfactory).

The effort is part of the Trump administration’s effort to address inflated ratings and follows communications OPM has voiced since the summer of 2025.

“The ability to measure and assess employee performance enables agencies to reward excellence, address skill gaps, and strengthen accountability,” OPM said. “If relative performance is not accurately measured in an employee’s rating of record, then the entire performance management system across the government is compromised.”

The biggest change contained in the proposed rule is the return to “forced distribution” of performance ratings, restoring a quota system artificially limiting how many employees can receive a 5 or a 4 rating. As we reported last month, agencies across the government are nearly universally opposed to this change. They argue “forced distribution” of performance ratings would cause issues in the workplace and goes against merit system principles.

OPM reports that, from FY 2022 to FY 2024, almost two-thirds of non-SES employees received a four or five rating. Only 0.6 percent of employees received a rating below a three during that timeframe. A 2016 Government Accountability Office report from 2016 found 99 percent of employees received at least a 3 (fully successful) rating.

In the rulemaking, OPM says, “The distribution of these ratings suggests there is inflation of non-SES employee ratings and poor performing employees are likely not being identified or held accountable through a rigorous appraisal process.”

The comment period on this rulemaking is open through March 26.