Payment of relocation incentives.

CFR · 2024-01-01 · US · Title 5

(a) An authorized agency official must establish the criteria for determining the amount of a relocation incentive. An agency may pay a relocation incentive— (1) As an initial lump-sum payment at the commencement of the service period required by the service agreement; (2) In installments throughout the service period required by the service agreement; (3) As a final lump-sum payment upon the completion of the full service period required by the service agreement; or (4) In a combination of these payment methods. (b)(1) Except as provided in paragraph (c) of this section, the total amount of relocation incentive payments paid to an employee in a service period may not exceed 25 percent of the annual rate of basic pay of the employee at the beginning of the service period multiplied by the number of years (including fractions of a year) in the service period (not to exceed 4 years). (2) For hourly rate employees who do not have a scheduled annual rate of basic pay, compute the annual rate required for paragraph (b)(1) of this section by multiplying the applicable hourly rate in effect at the beginning of the service period by 2,087 hours. (3) For the purpose of determining the number of years in a service period under paragraph (b)(1) of this section, divide the total number of calendar days in the service period (as established under § 575.208) by 365 and round the result to two decimal places. For example, a service period covering 39 biweekly pay periods equals 546 days, an

official document · source cfr-2024 · id 5:§ 575.209