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Before paying a retention incentive, an agency must establish a plan for using the authority. (See 5 CFR 575.307 and 575.315(c).) The plan must include the designation of officials with authority to review and approve payment of retention incentives, the categories of employees who are prohibited from receiving retention incentives, required documentation for determining that an employee would be likely to leave the Federal service or would be likely to leave for a different position in the Federal service, any requirements for determining the amount of a retention incentive, the payment methods that may be authorized, requirements governing service agreements (including the criteria for determining the length of a service period, the conditions for terminating a service agreement, and the obligations of the agency if it terminates a service agreement), the conditions for terminating retention incentive payments when no service agreement is required, and documentation and recordkeeping requirements.
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By March 31 in each of the years 2006 through 2010, each agency must submit a written report to OPM on the use of the recruitment and relocation incentive authorities within the agency during the previous calendar year for use in compiling an OPM report to Congress, as required by section 101(c) of Public Law 108-411. Each agency report must include—
- A description of how the authority to pay recruitment and relocation incentives was used by the agency during the previous calendar year;
- The number and dollar amount of recruitment and relocation incentives paid during the previous calendar year by occupational series and grade, pay level, or other pay classification; and
- Other information, records, reports, and data as OPM may require.
(See 5 CFR 575.113(b) and 575.213(b).)
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For the purpose of paying a recruitment incentive,
newly appointed refers to —
- The first appointment, regardless of tenure, as an employee of the Federal Government;
- An appointment of a former employee of the Federal Government following a break in service of at least 90 days; or
- An appointment of an individual in the Federal Government when his is her Federal service during the 90-day period immediately preceding the appointment was limited to one or more of the following:
- A time-limited appointment in the competitive or excepted service;
- A non-permanent appointment (excluding a Schedule C appointment under 5 CFR part 213) in the competitive or excepted service;
- Employment with the government of the District of Columbia (DC) when the candidate was first appointed by the DC government on or after October 1, 1987;
- An appointment as an expert or consultant under 5 U.S.C. 3109 and 5 CFR part 304;
- Employment under a provisional appointment designated under 5 CFR 316.403; or
- Employment under the Student Career Experience Program under 5 CFR 213.3202(b).
(See the definition of
newly appointed in 5 CFR 575.102.)
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An agency may pay a recruitment or relocation incentive as an initial lump-sum payment at the beginning of the service period, in equal or variable installment payments throughout the service period, as a final lump-sum payment upon completion of the service period, or in a combination of these methods. (See 5 CFR 575.109(a) and 575.209(a).)
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For each determination to pay a retention incentive for an employee likely to leave the Federal service, an agency must document in writing-
- The basis for determining that the unusually high or unique qualifications of the employee (or group of employees) or a special need of the agency for the employee’s (or group of employees') services makes it essential to retain the employee(s);
- The basis for determining that the employee (or a significant number of employees in a group) would be likely to leave the Federal service in the absence of a retention incentive; and
- The basis for establishing the amount and timing of the approved retention incentive payment and the length of the required service period.
(See 5 CFR 575.308(b).)
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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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No, agencies are not required to submit their recruitment and relocation incentive plans to OPM for review or approval.
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Yes. Agencies may pay a recruitment incentive to employees receiving a special rate or locality rate.
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Agencies may not pay a retention incentive to an employee in a position (1) to which the individual was appointed by the President; (2) in the Senior Executive Service as a non-career appointee; (3) which has been excepted from the competitive service by reason of its confidential, policy-determining, policy-making, or policy-advocating character; (4) designated as the head of an agency, including an agency headed by a collegial body composed of two or more individual members; or (5) in which the employee is expected to receive an appointment as the head of an agency. (See 5 CFR 575.304 and 575.315(b)(1).)
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