Military Downsizing bill

Displaced Federal Employees Assistance Act of 1992 - Establishes notification requirements for reductions in force (RIFs) affecting Federal employees. Requires: (1) at least 60 days' written notice to the employee and any such employee's exclusive representative for collective-bargaining purposes before such employee is so released; and (2) 60 days' notice, if the RIF would involve the separation of a significant number of employees, to the appropriate State dislocated worker units and the chief elected official of such units of local government as appropriate.

Specifies that, with respect to certain RIFs involving the separation of a significant number of employees of the Department of Defense (DOD), the notice period shall be 120 days.

Requires: (1) the Office of Personnel Management to establish and keep current a Government-wide list of vacant (or soon to be vacant) positions; and (2) specified executive agencies, in filling vacant positions for which qualified RIFed employees have applied, to give full consideration to the applications of such employees before selecting any candidate from outside the agency for the position, subject to specified limitations.

Requires the Secretary to establish a program under which separation pay (equal to six months basic pay) may be offered to encourage eligible employees to take immediate or early retirement, subject to specified requirements.

Allows RIFed employees to keep their Government health insurance for 18 months while paying only the employee share of the premium, with the cost paid out of DOD's salaries and expenses account.