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Frequently Asked Questions Pay & Leave

What information must be included in a service agreement for an employee likely to leave the Federal service?

The service agreement must specify—

  • The commencement and termination dates of the service period;
  • The retention incentive percentage rate established for the employee;
  • Whether the incentive will be paid in installments or in a lump-sum payment upon completion of the service period and, if paid in installments, whether any installment payments will be paid at less than the full retention incentive percentage rate established for the employee, with the accrued but unpaid incentive payment being paid in a lump sum upon completion of the full service period;
  • The timing of incentive payments;
  • The conditions under which an agreement will be terminated by the agency;
  • The effects of terminating the service agreement, including the conditions under which the agency will pay an additional retention incentive payment for partially completed service; and
  • Any other terms and conditions for receiving and retaining a retention incentive.

(See 5 CFR 575.310.)

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