	Introduction

Veterans' preference provides special consideration for qualified former members of the Armed Forces who pursue civilian employment with the federal government. This report discusses veterans' preference and how it is applied to positions that use competitive examination processes to assess and select candidates. Note on Assessment Systems and Terminology

Typically, competitive examination consists of assessment of a candidate's qualifications (e.g., education and experience). Preference Types

Preference-eligible veterans qualify for different types of preference depending on the nature of their service and the assessment method used for the particular position. Under numerical rating, a veteran could qualify for ten, five, or zero points that are added to the veteran's final assessment score. Preference for Veterans with a Service-Connected Disability9

The strongest preference is given to veterans with service-connected disabilities, regardless of the assessment method used. Derived Preference

In certain scenarios, a spouse, widow/widower, or parent of a veteran may qualify for preference if the veteran is not able to use it. Application of Veterans' Preference

For federal positions that are filled using the competitive examination process, candidates are typically assessed on the basis of their qualifications relative to the requirements of the position. Application in Category Rating21

Under the category rating method, applicants are assigned to a "quality category" on the basis of their qualifications (e.g., minimally qualified, well qualified, or highly qualified). For positions other than the aforementioned scientific or professional positions at GS-9 or above, a preference eligible goes to the top of the quality category for which he or she was assigned, except that veterans in any quality category with a service-connected disability rated at 10% or higher (that is, veterans in the CPS and CP categories) "float" to the top of the highest quality category. Application of Veterans' Preference in Selection and Pass Over Procedures

In cases where a preference eligible is among the highest-ranked candidates (either among the highest numerical scores or in the highest quality category), the hiring official must either (1) select a preference eligible or (2) formally pass over the preference eligible. Data in this section refer to nonseasonal, full-time, permanent employees. Table 3 shows that veterans with preference accounted for 28% of all permanent, nonseasonal, full-time, executive branch employees in FY2016. Veterans with preference accounted for 37% of federal new hires in FY2016.
Veterans' preference is a system that provides special consideration to certain former members of the Armed Forces who pursue civilian employment with the federal government. This report describes how veterans' preference is established and applied in the assessment and selection of candidates for federal positions that use competitive examination procedures.
The specific type of preference for which a veteran qualifies (if any) depends on the timing of the veteran's service and whether or not the veteran has a service-connected disability. The strongest preference is for veterans who have a service-connected disability rated at 30% or greater. In some cases, if a veteran is not able to use his or her preference due to death or disability, a family member may claim derived preference.
For federal positions that follow competitive examination procedures, applicants are typically assessed on the basis of their qualifications (e.g., education and experience). The application of veterans' preference depends on the assessment procedure being used. When applicants are assessed using category rating, a process that assigns applicants to quality categories (e.g., minimally qualified, well qualified, and highest qualified), preference is applied by moving an eligible veteran to the top of the category for which he or she qualifies or, in some cases, to the top of the highest quality category. When applicants are assessed using numerical rating, preference is applied by adding extra points to a veteran candidate's assessed score.
Veterans' preference also has a role in the selection process. In cases where a preference eligible is among the highest-ranked candidates and therefore eligible for selection, the selecting official must either (1) select the preference eligible or (2) pass over the preference eligible by disqualifying the preference eligible.
In FY2016, the most recent year for which data are available, veterans with preference made up 28% of nonseasonal, full-time, permanent federal employees. In recent years, veterans with preference have accounted for a larger portion of new federal hires and the proportion of veterans in the federal workforce has gradually increased. In FY2016, veterans with preference accounted for 37% of nonseasonal, full-time, permanent new hires.