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Frequently Asked Questions Pay & Leave

What are the different methods of paying a retention incentive?

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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