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Frequently Asked Questions Pay & Leave

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When is a service agreement not required in conjunction with a retention incentive?

A service agreement is not required when the agency pays the incentive —

  • In biweekly installments at the full retention incentive percentage rate established for the employee; and
  • The incentive percent amount established for the employee is set at or below the 25 percent cap (or 10 percent cap for groups of employees).   (See 5 CFR 575.310(f).)

Note:  See special exception in 5 CFR 575.309(e)(4) and 575.315(e)(2).

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