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Frequently Asked Questions Pay & Leave

If an employee with a permanent appointment accepts a temporary or term appointment at a lower grade as a result of reduction-in-force procedures, is the employee entitled to grade retention, provided all other requirements are met? If an employee already under grade retention converts from a permanent to a temporary or term appointment, is the entitlement to grade retention affected?

An employee is not eligible for grade retention if the employee was serving under a term or temporary appointment in the position from which he or she was downgraded. See 5 CFR 536.102(b)(2) and definition of employee in 5 U.S.C. 5361. However, the fact that the employee accepts a temporary or term appointment in conjunction with being downgraded does not affect the employee's entitlement to grade retention.

Similarly, if an employee who is already under grade retention receives a temporary or term appointment via reassignment or transfer, the employee would remain entitled to grade retention, unless one of the terminating events specified in law and regulation occur. (See 5 U.S.C. 5362(d) and 5 CFR 536.208. See also question 2, below.)

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