§9805 Retention Bonuses

Summary

The Administrator can pay a retention bonus to keep an employee who has rare or special skills or fills a special need, and who would probably quit without the bonus. If the job is listed as a critical need in the workforce plan under section 9802(b)(2)(A), the bonus can be up to 50 percent of the employee’s yearly basic pay (this includes comparability pay under sections 5304 and 5304a). If the job is not listed as a critical need, the bonus can be up to 25 percent of yearly basic pay (this excludes those comparability payments). The employee must sign a service agreement that says the required service time, how and when the bonus will be paid, the bonus amount and how it was figured, and what happens if the agreement ends early. Service time is shown in years and twelfths (rounding months to the nearest twelfth), must be at least 6 months, and no more than 4 years. No agreement is needed if the full bonus is paid in regular biweekly pay with nothing held back; in that case the agency must give written notice of any payment change and the employee keeps the bonus right through the pay period when notice is given. The bonus is not basic pay. An employee cannot get a bonus while they are already under a service period set under section 5753 or section 9804. No more than 25 percent of total bonuses in a year may go to supervisors or managers.