-
An agency must establish a single retention incentive rate for each individual or group of employees, expressed as a percentage of each employee’s rate of basic pay, not to exceed 25 percent (for an individual employee) or 10 percent (for a group or category of employees). (See 5 CFR 575.309(a).) With OPM approval, this cap may be increased to as much as 50 percent under the conditions specified in 5 CFR 575.309(e).
Thank you for your feedback!
An error occurred while trying to submit your feedback.
Please try again later.
-
No. Retention incentive payments are not subject to the biweekly or annual premium pay limitation, since retention incentives are neither premium pay nor basic pay.
Thank you for your feedback!
An error occurred while trying to submit your feedback.
Please try again later.
-
Yes. Agencies may pay relocation incentives to employees receiving a special rate or locality rate.
Thank you for your feedback!
An error occurred while trying to submit your feedback.
Please try again later.
-
The total amount of recruitment or relocation incentive payments may not exceed 25 percent of the annual rate of basic pay of the employee at the beginning of the service period multiplied by the number of years (including fractions of a year) in the service period (not to exceed 4 years). (See 5 CFR 575.109(b) and 575.209(b).) With OPM approval, this cap may be raised to 50 percent (based on a critical agency need), as long as the total incentive does not exceed 100 percent of the employee’s annual rate of basic pay at the beginning of the service period. (See 5 CFR 575.109(c) and 575.209(c).)
Thank you for your feedback!
An error occurred while trying to submit your feedback.
Please try again later.
-
For retention incentives that are paid when no service agreement is required, an agency must review each determination to pay the incentive at least annually to determine whether payment is still warranted. An authorized agency official must certify this determination in writing. An agency may continue paying a retention incentive to an employee when no service agreement is required as long as the conditions giving rise to the original determination to pay the incentive still exist. (See 5 CFR 575.311(f).)
Thank you for your feedback!
An error occurred while trying to submit your feedback.
Please try again later.
-
No, agencies are no longer required to consider using the superior qualifications and special needs pay-setting authority before they authorize a recruitment incentive. However, under 5 CFR 531.212(d) (as in effect on and after May 1, 2005), an agency must consider the possibility of authorizing a recruitment incentive when determining whether to use the superior qualifications and special needs pay-setting authority. The reason for the distinction is that agencies should first consider whether they can attract a candidate by using an authority which has limited implications for the agency budget because it does not increase the employee’s basic pay (e.g., a recruitment incentive) before using a flexibility that increases basic pay (e.g., the superior qualifications and special needs pay-setting authority) which has longer term cost implications.
Thank you for your feedback!
An error occurred while trying to submit your feedback.
Please try again later.
-
For the purpose of paying a recruitment or relocation incentive, rate of basic pay means the rate of pay fixed by law or administrative action for the position to which an employee is or will be appointed, before deductions and including any special rate supplement under 5 CFR part 530, subpart C, or similar payment under other legal authority, and any locality-based comparability payment under 5 CFR part 531, subpart F, or similar payment under other legal authority, but excluding additional pay of any other kind. For example, a rate of basic pay does not include additional pay such as cost-of-living allowances or post differentials under 5 U.S.C. 5941, night shift differentials under 5 U.S.C. 5343(f) or environmental differentials under 5 U.S.C. 5343(c)(4). (See the definition of rate of basic pay in 5 CFR 575.102 and 575.202.)
Thank you for your feedback!
An error occurred while trying to submit your feedback.
Please try again later.
-
There is no set period of employment under a retention incentive service agreement.
Thank you for your feedback!
An error occurred while trying to submit your feedback.
Please try again later.
-
The service agreement must specify the commencement and termination dates of the service period, the amount of the incentive, the method and timing of incentive payments, the amount of each incentive payment, the conditions under which an agreement will be terminated by the agency, any agency or employee obligations if a service agreement is terminated (including the conditions under which the employee must repay an incentive or under which the agency must make additional payments for partially completed service), and any other terms and conditions for receiving and retaining a recruitment or relocation incentive. (See 5 CFR 575.110 and 575.210.)
Thank you for your feedback!
An error occurred while trying to submit your feedback.
Please try again later.
-
A service agreement is required in most cases when a retention incentive is paid. It is required when the agency pays the incentive—
- In a single lump-sum payment after completion of the full service period;
- In installments after the completion of periods of service (except when the incentive is paid in biweekly installments at the full retention incentive percentage rate established for the employee);
- In all cases where the 25 percent cap (or 10 percent for groups of employees) has been waived, no matter how payment is made; and
- In all cases when an employee is likely to leave for a different position in the Federal service.
Thank you for your feedback!
An error occurred while trying to submit your feedback.
Please try again later.