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Frequently Asked Questions Pay & Leave

When is a service agreement required in conjunction with a retention incentive?

A service agreement is required in most cases when a retention incentive is paid. It is required when the agency pays the incentive—

  • In a single lump-sum payment after completion of the full service period;
  • In installments after the completion of periods of service (except when the incentive is paid in biweekly installments at the full retention incentive percentage rate established for the employee);
  • In all cases where the 25 percent cap (or 10 percent for groups of employees) has been waived, no matter how payment is made; and
  • In all cases when an employee is likely to leave for a different position in the Federal service.

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