§9805 Retention bonuses

Summary

The Administrator can pay a retention bonus to keep an employee who has unusually strong skills or fills a special need and who would likely leave without the bonus. The bonus must follow the agency’s workforce plan and these limits: if the job is listed as a critical need in the workforce plan, the bonus can be up to 50% of the employee’s yearly basic pay (including comparability pay under sections 5304 and 5304a). If the job is not listed as a critical need, the bonus can be up to 25% of yearly basic pay (excluding those comparability payments). A retention bonus usually requires a service agreement that states the service period, how and when the bonus will be paid, the amount and how it was figured, and what happens if the agreement ends early. The service time must be between 6 months and 4 years and is written in years and twelfths, rounding months to the nearest twelfth of a year. No service agreement is needed if the full bonus is paid in biweekly paychecks with no deferral. The bonus is not part of basic pay. An employee cannot get a bonus while already serving under a prior service period set under sections 5753 or 9804. No more than 25% of the total bonuses in a year may go to supervisors or managers.