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Employees holding VRAs are not eligible for grade or pay retention upon reduction in grade or pay, or to severance pay upon involuntary separation (not for cause).
By law, grade and pay retention apply only to employees whose employment is on other than a temporary or term basis. (See the definition of employee in 5 U.S.C. 5361(1).) The grade and pay retention regulations define employed on a temporary or term basis as employment under an appointment having a definite time limitation or designated as temporary or term. (See 5 CFR 536.103.)
Similarly, the severance pay law does not apply to an employee serving under an appointment with a definite time limitation, unless the time-limited appointment is made effective within 3 calendar days after separation from a qualifying appointment without time limitation. (See the definition of employee in 5 U.S.C. 5595(a)(2)(ii) and the definition of non-qualifying appointment in 5 CFR 550.703.)
Under 5 CFR part 307, a VRA is limited to 2 years. Although employees are entitled to convert to a career or career-conditional appointment upon completion of the 2 years, this conversion right is contingent upon meeting the terms of the VRA--i.e., employees must satisfactorily complete (1) 2 years of substantially continuous service and (2) any education and training required under the VRA program. If employees do not complete these requirements, they are not converted to career or a career-conditional appointment, and their VRA ends. Therefore, for the purposes of grade and pay retention and severance pay, the VRA must be viewed as having a definite 2-year limitation. Because the VRA is time-limited, employees holding such appointments are not eligible for grade and pay retention or severance pay.
No. An employee who is returned from a temporary promotion to his or her regular grade and step and is subsequently promoted to the same grade held during the temporary promotion receives an "equivalent increase" upon the permanent promotion and begins a new waiting period on the date of the permanent promotion. The time spent in the temporary grade and step is not creditable service towards the completion of a waiting period when the employee is permanently promoted.
NOTE: If a temporary promotion is made permanent immediately after the temporary promotion ends, the agency may not return the employee to the lower grade. The agency must convert the employee's temporary promotion to a permanent promotion without a change in pay. See 5 CFR 531.214(e).
Under the law, an employee does not necessarily have to have 52 consecutive weeks at the grade held immediately before being downgraded in order to retain that grade under the grade retention provisions. Under 5 U.S.C. 5362(a), any employee who is placed as a result of reduction-in-force (RIF) procedures into a lower grade and who has served for 52 consecutive weeks or more in "one or more positions . . . at a grade or grades higher than that of the new position, is entitled to have the grade of the position held immediately before such placement" as the retained grade. [Emphasis added.] See also 5 CFR 536.203(a) and (c).
Thus, for example, assume an employee has 2 years of service at GS-12 and 10 weeks of service at GS-13 immediately prior to being downgraded to GS-11 as a result of RIF procedures. Even though he or she has only 10 weeks of service at the GS-13 level, the GS-12 service plus the GS-13 service gives the employee more than 52 consecutive weeks at one or more grades higher than that of the position to which the employee is being reduced (i.e., GS-11). Thus, the employee meets the 52 consecutive week requirement and is entitled to retain the grade of GS-13.
In contrast, if this employee were being reduced to a GS-12 position rather than a GS-11 position, the employee would not meet the 52 consecutive week requirement and could not retain the GS-13.
An employee is not eligible for grade retention if the employee was serving under a term or temporary appointment in the position from which he or she was downgraded. See 5 CFR 536.102(b)(2) and definition of employee in 5 U.S.C. 5361. However, the fact that the employee accepts a temporary or term appointment in conjunction with being downgraded does not affect the employee's entitlement to grade retention.
Similarly, if an employee who is already under grade retention receives a temporary or term appointment via reassignment or transfer, the employee would remain entitled to grade retention, unless one of the terminating events specified in law and regulation occur. (See 5 U.S.C. 5362(d) and 5 CFR 536.208. See also question 2, below.)
Federal Family Education Loans (FFEL)
William D. Ford Direct Loan Program (Direct Loans)
Federal Perkins Loan Program
Loans made or insured under the Public Health Service Act include the following:
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