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Frequently Asked Questions Pay & Leave

How is an employee's preexisting entitlement to grade and pay retention affected by transfer to another agency?

If an employee is already under grade or pay retention prior to transferring to another agency, the gaining agency must continue the employee's grade or pay retention entitlement, absent the occurrence of one of the terminating events set forth in law and regulation, such as a break in service of 1 workday or more or reduction in grade at the employee's request. (See 5 U.S.C. 5362(d) and 5 CFR 536.208 regarding termination of grade retention and 5 U.S.C. 5363(c) and 5 CFR 536.308 regarding termination of pay retention. See also question 3, below.)

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