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Frequently Asked Questions Pay & Leave

Is a retention incentive considered part of an employee’s rate of basic pay for severance pay, retirement, or other purposes? Is a retention incentive included in a lump-sum payment for annual leave?

No. Retention incentives are not considered part of an employee’s rate of basic pay for any purpose, including severance pay, and are not included in lump-sum annual leave payments. (See 5 CFR 575.309(h) and 5 CFR 550.1205(b).)

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