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Frequently Asked Questions Pay & Leave

Under what circumstances may an agency terminate an employee’s service agreement, and what are the consequences of terminating the agreement?

An agency may unilaterally terminate a retention incentive service agreement based solely on the management needs of the agency.  For example, an agency may terminate a service agreement when there are insufficient funds to continue the planned incentive payments.  In such cases, the employee is entitled to retain all retention incentive payments attributable to completed service and to receive any portion of a retention incentive payment owed by the agency for completed service.  An agency must notify an employee in writing when it terminates a retention incentive service agreement.  (See 5 CFR 575.311.)

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