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Yes. As long as the employee is converted to a permanent position without returning to the lower grade, the time spent on a temporary promotion is considered creditable service in the calculation of the employee's next WGI. The employee received an "equivalent increase" upon the temporary promotion. Processing a permanent promotion without moving the employee back to the lower graded position does not change the date of the "equivalent increase." Therefore, the waiting period starts on the date of the temporary promotion.
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Agencies should specify the beginning date of the service requirement in the job candidate’s or employee’s service agreement. The service requirement begins at the time specified in the service agreement, but may begin no earlier than the date the service agreement is signed or earlier than the date the individual begins serving in the position for which he or she was recruited (when student loan repayment benefits are approved to recruit a job candidate to fill an agency position).
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After an agency has set an employee's pay, the agency must go back the length of the waiting period in the employee's work history to determine the date of the last equivalent increase. For example, a WJ-11 employee is hired into a GS-13 position and pay is set at step 1. The waiting period at step 1 is 52 weeks. If the employee did not receive an equivalent increase in the prevailing rate pay system during that time period, the employee is entitled to a WGI to step 2 upon movement to the GS position.
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For the purpose of paying a retention incentive, rate of basic pay means the rate of pay fixed by law or administrative action for the position to which an employee is appointed before deductions and including any special rate supplement under 5 CFR part 530, subpart C, or similar payment under other legal authority and any locality-based comparability payment under 5 CFR part 531, subpart F, or similar payment under other legal authority, but excluding additional pay of any other kind. For example, a rate of basic pay does not include additional pay such as cost-of-living allowances or post differentials under 5 U.S.C. 5941, night shift differentials under 5 U.S.C. 5343(f) or environmental differentials under 5 U.S.C. 5343(c)(4). (See the definition of rate of basic pay in 5 CFR 575.302.)
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The statute authorizing this program states that this incentive is to be used for employees of a given agency who have outstanding student loans. Thus, if the employee has a PLUS loan for his or her child, the loan would qualify for repayment. However, if a PLUS loan is held by an employee’s parent, the employee is not eligible for loan repayment benefits for the parent’s PLUS loan. While a PLUS loan an employee has previously taken out to help pay for his or her child's education is a qualifying student loan under 5 U.S.C. 5379(a)(1)(B) and 5 CFR 537.102, an agency may specify in its agency loan repayment plan that it will not offer to repay PLUS loans under its student loan repayment program.
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The service agreement may include any other terms or conditions that, if violated, will result in termination of the service agreement. For example, the service agreement may specify the employee’s work schedule, type of position, and the duties he or she is expected to perform. In addition, the service agreement may address the extent to which periods of time on detail, in a nonpay status, or in a paid leave status are creditable towards the completion of the service period. (See 5 CFR 575.110(f) and 575.210(f).)
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Under 5 CFR 537.103, each agency must establish a plan that designates the officials who are authorized to review and approve offers of student loan repayment benefits. Agencies may use approval delegations similar to those used for other recruitment, relocation, and retention incentives.
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