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Frequently Asked Questions Pay & Leave

What kinds of factors does an agency consider to determine whether to reduce or terminate a retention incentive when no service agreement is required?

Under 5 CFR 575.311(f)(3), an agency considers the following factors in determining whether to reduce or terminate a retention incentive:

  • Whether a lesser amount (or none at all) would be sufficient to retain the employee (or group or category of employees);
  • Whether labor market factors make it more likely (or reasonably likely) to recruit a candidate with competencies similar to those possessed by the employee (or group or category of employees); or
  • Whether the agency's need for the services of the employee (or group or category of employees) has been reduced to a level that makes it unnecessary to continue payment at the level originally approved, or at all.

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