Payment of retention incentives.

CFR · 2024-01-01 · US · Title 5

(a) An authorized agency official must determine the criteria for determining the amount of a retention incentive. An agency must establish a single retention incentive rate for each individual or group of employees that is expressed as a percentage of the employee's rate of basic pay. Except as provided in paragraph (e) of this section, a retention incentive rate may not exceed— (1) 25 percent, if authorized for an individual employee; or (2) 10 percent, if authorized for a group or category of employees. (b) An agency may pay a retention incentive in— (1) Installments after the completion of specified periods of service; or (2) A single lump-sum payment after completion of the full service period. (c)(1) An installment payment is derived by multiplying the rate of basic pay the employee earned in the installment period by a percentage not to exceed the incentive percentage rate established for the employee under paragraph (a) of this section. For example, an agency establishes a retention incentive percentage rate of 10 percent for an employee. The employee has a service agreement that provides for a retention incentive installment payment after completion of 6 pay periods of service at the full percentage rate established for the employee. The employee earns $15,000 during the 6 pay periods of service ($2,500 biweekly rate of basic pay × 6). Upon completion of that service period, the employee will receive the accrued retention incentive installment payment of $1,500 ($15,

official document · source cfr-2024 · id 5:§ 575.309