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Frequently Asked Questions Pay & Leave

When must an agency reduce or terminate a retention incentive authorization when no service agreement is required?

An agency must reduce or terminate a retention incentive authorization when no service agreement is required whenever conditions change such that the original determination to pay the retention incentive no longer applies (such as when the agency assigns the employee to a different position that is not within the terms of the original determination) or payment at the level originally approved is no longer warranted.  An agency must terminate a retention incentive authorization if the employee is demoted or separated for cause (i.e., for unacceptable performance or conduct) or the employee receives a rating or record of less than "Fully Successful" or equivalent.   (See 5 CFR 575.311(f)(3) and (5).)

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