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An agency may unilaterally terminate a recruitment or relocation incentive service agreement based solely on the management needs of the agency. For example, an agency may terminate a service agreement when the employee’s position is affected by a reduction in force, when there are insufficient funds to continue the planned incentive payments, or when the agency assigns the employee to a different position (if the different position is not within the terms of the service agreement). In such cases, the employee is entitled to all incentive payments attributable to completed service and to retain any portion of an incentive payment already received that is attributable to uncompleted service. An agency must notify an employee in writing when it terminates a recruitment or relocation incentive service agreement. (See 5 CFR 575.111 and 575.211.)
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Yes. Under 5 CFR 575.205, an agency may pay a relocation incentive to an employee of another agency to relocate to a different geographic area without a break in service to accept a position that is likely to be difficult to fill.
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Yes. Agencies may pay retention incentives to employees receiving a special rate or locality payment.
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An agency may pay a retention incentive in installments after the completion of specified periods of service or in a single lump sum after completion of the full period of service required by the service agreement. (See 5 CFR 575.309(b).) Installment payments must be consistent with biweekly pay periods, e.g., every 2 pay periods, 6 pay periods, or 8 pay periods. An agency may not pay a retention incentive to an employee likely to leave for a different Federal position in biweekly installments at the full retention incentive percentage rate established for the employee. See 5 CFR 531.315(e)(2).
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Yes. Under 5 CFR 575.205(a)(1), an agency may pay a relocation incentive to an employee who must relocate to a different geographic area either permanently or temporarily, assuming all other conditions are met.
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Yes. See 5 CFR 575.109(f) and 575.209(e) and the definition of aggregate compensation at 5 CFR 530.202.
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To request a retention incentive in excess of 25 or 10 percent, as applicable, the agency must be facing a critical need. The agency must determine that the employee’s (or group of employees‘) unusually high or unique qualifications are critical to the successful accomplishment of an important agency mission, project, or initiative (e.g., programs or projects related to a national emergency or implementing a new law or critical management initiative). (See 5 CFR 575.309(e)(1).)
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The required service period must begin upon commencement of service with the agency for a recruitment incentive, and upon commencement of service at the new duty station for a relocation incentive. In both cases, the required service period must terminate on the last day of a pay period. (See 5 CFR 575.110(b) and 575.210(b), including the exceptions under 5 CFR 575.110(b)(2) and (b)(3) and 575.210(b)(2) and (b)(3).)
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Installment payments must be consistent with biweekly pay periods, e.g., every 2 pay periods, 6 pay periods, or 8 pay periods.
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