[Federal Register: September 12, 2003 (Volume 68, Number 177)]
[Rules and Regulations]
[Page 53667-53672]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12se03-1]
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Rules and Regulations
Federal Register
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[[Page 53667]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 575
RIN 3206-AK01
Extended Assignment Incentives
AGENCY: Office of Personnel Management.
ACTION: Interim rule with request for comments.
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SUMMARY: The Office of Personnel Management is issuing interim
regulations to implement a recent statutory amendment that authorizes
the payment of extended assignment incentives to certain categories of
Federal employees in positions located in a territory or possession of
the United States, the Commonwealth of Puerto Rico, or the Commonwealth
of the Northern Mariana Islands. The interim regulations establish the
criteria and procedures for the payment of extended assignment
incentives.
DATES: Effective Date: The interim regulations will become effective on
September 12, 2003.
Applicability Date: The interim regulations apply on the 1st day of
the first applicable pay period beginning on or after September 12,
2003.
Comment Date: Comments must be received on or before November 12,
2003.
ADDRESSES: Send or deliver comments to Donald J. Winstead, Deputy
Associate Director for Pay and Performance Policy, Office of Personnel
Management, Room 7H31, 1900 E Street NW., Washington, DC 20415, FAX:
(202) 606-4264, or e-mail at pay-performance-policy@opm.gov.
FOR FURTHER INFORMATION CONTACT: Lee Kara by telephone at (202) 606-
2858; by fax at (202) 606-4264; or by e-mail at pay-performance-
policy@opm.gov.
SUPPLEMENTARY INFORMATION: The Office of Personnel Management (OPM) is
issuing interim regulations on the payment of extended assignment
incentives authorized by section 207 of Public Law 107-273 (November 2,
2002). Section 207 adds a new section 5757 to chapter 57 of title 5,
United States Code, to permit the head of an Executive agency to pay an
extended assignment incentive to certain Federal employees assigned to
positions located in a territory or possession of the United States,
the Commonwealth of Puerto Rico, or the Commonwealth of the Northern
Mariana Islands.
Public Law 107-273 provides that section 207 will become effective
on the 1st day of the first applicable pay period beginning on or after
6 months after the date of enactment of the Act (November 2, 2002). The
6-month period ended on May 2, 2003. Since biweekly pay periods for
Federal employees begin on a Sunday, this provision became effective on
May 4, 2003, for most employees. However, for the few agencies using an
alternative biweekly payroll cycle, the law became effective on May 11,
2003.
Extended Assignment Incentives
Congress provided authority to pay extended assignment incentives
to assist agencies in retaining experienced, well-trained employees in
a U.S. territory, possession, or commonwealth for a longer period than
the employee's initial tour of duty. The interim regulations permit the
head of an Executive agency to provide an extended assignment incentive
to an employee if (1) the employee has completed at least 2 years of
continuous service in one or more civil service positions located in a
given territory or possession of the United States, the Commonwealth of
Puerto Rico, or the Commonwealth of the Northern Mariana Islands; (2)
the agency determines that replacing the employee with another employee
possessing the required qualifications and experience would be
difficult; and (3) the agency determines that it is in the best
interest of the Government to encourage the employee to complete a
specified additional period of employment with the agency in one of the
covered locations. An employee must have completed the required 2 years
of continuous service immediately before commencement of a service
agreement to receive an extended assignment incentive. In determining
whether it is in the best interest of the Government to retain the
employee in a particular location, an agency may consider how the
employee's departure would affect the agency's ability to carry out an
activity or perform a function that the agency deems essential to its
mission or to operate effectively. By law, the total amount of service
an employee may perform in a particular territory, possession, or
commonwealth under one or more extended assignment incentive service
agreements with an agency may not exceed 5 years.
The interim regulations require the head of the agency to establish
an agency plan for authorizing extended assignment incentives. The plan
must designate the agency officials with authority to review and
approve incentive payments, agency criteria for authorizing extended
assignment incentive payments and determining the amount of a payment,
requirements governing service agreements, procedures for paying
extended assignment incentives, and documentation and recordkeeping
requirements sufficient to allow reconstruction of the action.
Subject to the limitations in Sec. 575.506, any employee who meets
the definition of ``employee'' under 5 U.S.C. 2105 is eligible to
receive an extended assignment incentive, including employees in
General Schedule positions, senior-level and scientific or professional
positions, Senior Executive Service positions, and prevailing rate
positions covered by the Federal Wage System. Any agency-wide
limitations or prohibitions regarding the categories of employees that
may receive an extended assignment incentive should be documented in
the agency plan.
An employee may receive an extended assignment incentive not to
exceed the greater of (1) 25 percent of the annual rate of basic pay of
the employee at the beginning of the service period times the number of
years in the service period; or (2) $15,000 per year in the service
period. The service period must begin on the first day of a pay period
and end on the last day of a pay period. For example, assume an agency
wishes to pay the maximum extended assignment incentive to an employee
who signed an extended assignment
[[Page 53668]]
incentive service agreement to serve 39 pay periods (546 days) and his
or her annual rate of basic pay at the beginning of the service period
is $65,335. To determine the maximum extended assignment incentive
payments the agency may authorize, the following calculations must be
made: (1) $65,335 (annual rate) x .25 (25%) x 1.5 years (546/365) =
$24,501; and (2) $15,000 x 1.5 years = $22,500. Thus, the employee may
receive extended assignment incentive payments of up to $24,501.
Extended assignment incentives are subject to the aggregate
compensation limitation established by 5 U.S.C. 5307 and regulated in 5
CFR part 530, subpart B. They constitute ``other similar payments''
under paragraph (14) of the definition of ``aggregate compensation'' in
Sec. 530.202.
Before paying an extended assignment incentive, an agency must
require the employee to sign a written service agreement to complete a
specified period of additional employment with the agency in one of the
covered locations. The service agreement also must specify the amount
of the incentive payment, the method of paying the incentive, the
conditions under which an agreement may be terminated, the requirements
and procedures for the repayment of incentive payments if an employee
separates prior to completion of the service period, and any other
terms and conditions for receiving and retaining extended assignment
incentive payments. The method of paying the incentive may include an
initial lump-sum payment, equal installments at the end of specified
periods throughout the service period, variable payments at the end of
specified periods, a final lump-sum payment, or a combination of
payment methods.
If an employee fails to fulfill the terms of the service agreement,
he or she generally must reimburse the employing agency for the
prorated share of any extended assignment incentive received for
service not yet performed. (See Sec. 575.513.) For example, assume an
employee signed a 364-day (26 pay period) service agreement and
received the full amount of a $15,000 extended assignment incentive as
an initial lump-sum payment. If the employee voluntarily separates
after 20 pay periods (280 days), he or she would incur a debt equal to
23.1 percent (84/364) of the incentive, or $3,465. The employee may
keep 76.9 percent (280/364) of the incentive, or $11,535, unless the
agency imposes an additional repayment penalty for not fulfilling the
terms of the service agreement, as permitted by Sec. 575.513(e). While
the head of an agency may waive any debt owed to the Federal Government
under 5 U.S.C. 5584, if warranted, waivers should be rare because the
employee agreed to the repayment conditions at the time he or she
signed the service agreement.
If an employee fails to complete the agreed-upon service period
because of voluntary separation or transfer or another reason covered
by Sec. 575.513, and the portion of the extended assignment incentive
received to date is less than or equal to the prorated share
attributable to the employee's completed service, the employee will
have no repayment obligation unless the agency imposes an additional
repayment penalty, as permitted under Sec. 575.513(f). However, if
provided in the service agreement, the agency may have an obligation to
pay an additional amount for service completed by the employee. For
example, assume that an employee who signed a 364-day (26 pay period)
service agreement will receive a total extended assignment payment of
$24,501 in two equal installment payments--i.e., $12,250.50 at the end
of 13 pay periods of completed service and $12,250.50 at the end of the
required service period. The employee receives the first payment of
$12,250.50 and then voluntarily separates after 20 pay periods (280
days). If the service agreement provides that the employee is entitled
to receive a prorated share of the planned extended assignment
incentive based on the amount of service completed, he or she would
receive an additional $6,590.77 (280/364 = 76.9%; 76.9% x $24,501 =
$18,841.27; $18,841.27 - $12,250.50 = $6,590.77). On the other hand, if
the service agreement provides that the employee would not receive any
unpaid incentive amount in the event of voluntary separation from the
position, then the employee would keep the $12,250.50 he or she
received but would receive no additional payment.
By law, an agency may not require repayment of an extended
assignment incentive if an employee is involuntarily separated from his
or her position or is involuntarily reassigned to a position stationed
outside the particular area involved. Under the regulations, if such an
employee has not received incentive payments equal to the prorated
share of the planned incentive attributable to completed service, the
agency must pay an additional incentive to make up the difference. No
other additional payment may be made except as allowed by the service
agreement. (See Sec. 575.511.) Parallel rules apply to employees whose
service agreement is terminated unilaterally by the agency as described
in Sec. 575.512.
The determination to pay an extended assignment incentive must be
made on a case-by-case basis for each employee. While an agency may
identify targeted groups or organizational units performing functions
that are deemed essential to the agency's mission for special
consideration, incentive determinations must still be made on a case-
by-case basis for each employee. An extended assignment incentive may
not be provided to an employee who is fulfilling the requirements of a
service agreement for the payment of a recruitment or relocation bonus
or to an employee who is receiving a retention allowance. (See 5 CFR
part 575, subparts A, B, and C.)
Under 5 U.S.C. 5757(d), OPM must consult with affected agencies and
submit a report to Congress assessing the effectiveness of the extended
assignment incentive authority as a strategic human resources
management tool and make recommendations for any changes necessary to
improve the effectiveness of the incentive authority. OPM's report is
due no later than May 4, 2006, which is 3 years after the effective
date of section 207 of Public Law 107-273. To assist OPM in preparing
the report, the interim regulations require agencies to provide data on
their use of extended assignment incentives and to evaluate the extent
to which these payments improved the retention of employees for longer
than their initial tour of duty. In addition, OPM, invites agencies to
provide recommendations for changes necessary to improve the
effectiveness of extended assignment incentives. The interim
regulations require agencies to provide the requested information for
the period from May 2, 2003, through December 31, 2005. Agency reports
are due to OPM by February 15, 2006.
Waiver of Notice of Proposed Rule Making and Delay in Effective Date
Pursuant to 5 U.S.C. 553(b)(3)(B), I find that good cause exists to
waive the general notice of proposed rulemaking. Also, pursuant to 5
U.S.C. 553(d)(3), I find that good cause exists for making this rule
effective upon publication in the Federal Register. These regulations
implement section 207 of Public Law 107-273, which took effect on the
first day of the first pay period beginning on or after May 2, 2003.
Certain provisions cannot be applied, however, unless OPM issues
implementing regulations. The waiver of the requirements for proposed
rulemaking and a delay in the effective date are necessary to ensure
[[Page 53669]]
timely implementation of the law as intended by Congress.
Regulatory Flexibility Act
I certify that these regulations will not have a significant
economic impact on a substantial number of small entities because they
will affect only Federal agencies and employees.
E.O. 12866, Regulatory Review
This rule has been reviewed by the Office of Management and Budget
in accordance with Executive Order 12866.
List of Subjects in 5 CFR Part 575
Government employees, Wages.
Office of Personnel Management.
Kay Coles James,
Director.
0
Accordingly, OPM is amending part 575 of title 5 of the Code of Federal
Regulations as follows:
PART 575--RECRUITMENT AND RELOCATION BONUSES, RETENTION ALLOWANCES,
SUPERVISORY DIFFERENTIALS, AND EXTENDED ASSIGNMENT INCENTIVES
0
1. The authority citation for part 575 is revised to read as follows:
Authority: 5 U.S.C. 1104(a)(2), 5753, 5754, 5755, and 5757; Pub.
L. 107-273, 116 stat. 1780; secs. 302 and 404 of the Federal
Employees Pay Comparability Act of 1990 (FEPCA), Pub. L. 101-509,
104 Stat. 1462 and 1466, respectively; E.O. 12748, 3 CFR, 1992
Comp., p. 316.
0
2. A new subpart E is added to read as follows:
Subpart E--Extended Assignment Incentives
Sec.
575.501 Purpose.
575.502 Definitions.
575.503 Who may approve the payment of an extended assignment
incentive?
575.504 What requirements must an agency satisfy before authorizing
the payment of an extended assignment incentive?
575.505 What criteria must an agency use to determine who will
receive an extended assignment incentive?
575.506 When is an agency prohibited from paying an extended
assignment incentive?
575.507 What is the maximum extended assignment incentive that may
be paid for a period of service?
575.508 What is the maximum amount of service that may be covered by
an extended assignment incentive?
575.509 Is an extended assignment incentive considered basic pay for
any purpose?
575.510 What requirements are associated with service agreements?
575.511 What happens when an employee is involuntarily separated or
involuntarily reassigned prior to completion of the service period?
575.512 When may an agency terminate a service agreement?
575.513 What are the agency's and the employee's obligations when an
employee fails to fulfill the terms of a service agreement?
575.514 What are an agency's monitoring responsibilities?
575.515 What records and reports are required?
Subpart E--Extended Assignment Incentives
Sec. 575.501 Purpose.
This subpart contains OPM regulations implementing 5 U.S.C. 5757,
which authorizes the payment of extended assignment incentives. Subject
to the requirements of this subpart, an agency may pay an extended
assignment incentive to eligible Federal employees assigned to
positions located in a territory or possession of the United States,
the Commonwealth of Puerto Rico, or the Commonwealth of the Northern
Mariana Islands who agree to complete a specified additional period of
employment with the agency in that location.
Sec. 575.502 Definitions.
In this subpart:
Agency means an ``Executive agency,'' as defined in 5 U.S.C. 105.
Authorized agency official means the head of an agency or an
official who is authorized to act for the head of the agency in the
matter concerned.
Employee means an employee of an agency who satisfies the
definition of that term in 5 U.S.C. 2105.
Involuntarily reassigned refers to a reassignment initiated by an
agency against an employee's will and without he employee's consent for
reasons other than cause on charges of misconduct, delinquency, or
inefficiency.
Involuntarily separated refers to a separation initiated by an
agency against an employee's will and without the employee's consent
for reasons other than cause on charges of misconduct, delinquency, or
inefficiency. In addition, when an employee is separated because he or
she declines to accept reassignment to another geographic area outside
one of the covered locations, the separation is involuntary if the
employee's position description or other written agreement does not
provide for such reassignment. However, an employee's separation is not
involuntary if, after such a written mobility agreement is added, the
employee accepts one reassignment outside his or her particular
territory, possession, or commonwealth, but subsequently declines
another reassignment. An employee's separation as a result of
disability retirement, a disability that prevents an employee from
continuing Federal service or is the basis for separation by the agency
as determined by acceptable medical evidence, or the death of an
employee is considered to be an involuntary separation.
Rate of basic pay means the rate of pay fixed by law or
administrative action for the position held by an employee before
deductions and exclusive of additional pay of any kind. For example, a
rate of basic pay may not include nonforeign area cost-of-living
allowances under 5 U.S.C. 5941, night shift differentials under 5
U.S.C. 5343(f), or environmental differentials under 5 U.S.C.
5343(c)(4).
Service agreement means a written agreement between an agency and
an employee under which the employee agrees to a specified period of
employment with the agency in a particular territory, possession, or
commonwealth in return for payment of an extended assignment incentive.
Service period means an agreed-upon period of employment an
employee is obligated to complete under a service agreement.
Territory, possession, or commonwealth means a territory or a
possession of the United States, the Commonwealth of Puerto Rico, or
the Commonwealth of the Northern Mariana Islands.
Sec. 575.503 Who may approve the payment of an extended assignment
incentive?
An authorized agency official must review and approve the offer of
an extended assignment incentive for an employee, including the amount
of such incentive. The authorized agency official must be at a higher
level than the official who made the initial decision to offer an
extended assignment incentive, unless there is no official at a higher
level in the agency.
Sec. 575.504 What requirements must an agency satisfy before
authorizing the payment of an extended assignment incentive?
Before paying an extended assignment incentive under this subpart,
an agency must establish an extended assignment incentive plan. This
plan must include the following elements:
(a) The designation of authorized agency officials who must review
and approve the payment of extended assignment incentives;
(b) The categories of employees which are prohibited from receiving
an extended assignment incentive;
[[Page 53670]]
(c) The criteria that must be met or considered in authorizing
extended assignment incentives, including criteria for determining the
size of an incentive;
(d) The requirements governing service agreements, including the
obligations of the agency and the employee when the service period is
not completed;
(e) The procedures for paying extended assignment incentives; and
(f) Documentation and recordkeeping requirements sufficient to
allow reconstruction of the action.
Sec. 575.505 What criteria must an agency use to determine who will
receive an extended assignment incentive?
(a) An agency must base the payment of an extended assignment
incentive on a written determination that--
(1) The eligible employee has completed at least 2 years of
continuous service immediately before the commencement of the service
agreement in one or more civil service positions located in a
particular territory, possession, or commonwealth;
(2) It is in the best interest of the Government to encourage the
employee to complete a specified additional period of employment with
the agency in that location; and
(3) Replacing the employee with another employee possessing the
required qualifications and experience would be difficult.
(b) In determining whether it is in the best interest of the
Government to retain an employee under paragraph (a)(2) of this
section, an agency may consider how the employee's departure would
affect the agency's ability to operate effectively or to carry out an
activity or perform a function which the agency deems essential to its
mission.
(c) Any determination to approve an extended assignment incentive
must be made on a case-by-case basis for each employee. However, an
agency may consider common factors that apply to a category of
employees, such as past recruitment and retention problems or the
anticipation of such problems in the future.
Sec. 575.506 When is an agency prohibited from paying an extended
assignment incentive?
(a) An extended assignment incentive may not be paid to the head of
an agency, including an agency headed by a collegial body composed of
two or more individual members.
(b) An agency may not begin paying an extended assignment incentive
to an otherwise eligible employee who is fulfilling the requirements of
a service agreement for the payment of a recruitment or relocation
bonus or who is receiving a retention allowance. (See 5 CFR part 575,
subparts A, B, and C.)
Sec. 575.507 What is the maximum extended assignment incentive that
may be paid for a period of service?
(a) The total amount of extended assignment incentive payments that
may be paid for a service period may not exceed the greater of--
(1) An amount equal to 25 percent of the annual rate of basic pay
of the employee at the beginning of the service period times the number
of years (including fractions of a year) in the service period; or
(2) $15,000 per year (including fractions of a year) in the service
period.
(b) For hourly rate employees who do not have a scheduled annual
rate of basic pay, the annual rate in paragraph (a) of this section is
computed by multiplying the applicable hourly rate in effect at the
beginning of the service period by 2,087 hours.
(c) The number of years in the service period is computed by
dividing the total number of calendar days in the service period (as
established under Sec. 575.510(a)) by 365 and rounding the result to
two decimal places. For example, a service period covering 39 biweekly
pay periods equals 546 days, and 546 days divided by 365 days equals
1.50 years.
Sec. 575.508 What is the maximum amount of service that may be
covered by an extended assignment incentive?
An employee's total service under one or more extended assignment
incentive service agreements with a particular agency for service in a
particular territory, possession, or commonwealth may not exceed 5
years. For this purpose, a year is equal to 365 days, resulting in a
total service limit of 1,825 days.
Sec. 575.509 Is an extended assignment incentive considered basic pay
for any purpose?
No, an extended assignment incentive is not considered part of an
employee's rate of basic pay for any purpose, nor is it included for
the purpose of calculating a lump-sum payment for annual leave under 5
CFR 550.1205.
Sec. 575.510 What requirements are associated with service
agreements?
(a) Before paying an extended assignment incentive, the agency must
require the employee to sign a written service agreement to complete a
specified period of employment with the agency in a particular
territory, possession, or commonwealth. The service period must meet
the following conditions:
(1) The service period must begin on the first day of a pay period
and end on the last day of a pay period; and
(2) The service period must not cause an employee to exceed the 5-
year lifetime limitation described in Sec. 575.508.
(b) In addition to the service requirement in paragraph (a) of this
section, the service agreement may specify other terms and conditions
of employment applicable to the employee. For example, the service
agreement may specify the employee's work schedule, type of position,
and performance level. In addition, the service agreement may address
the extent to which periods of time on a detail, in a nonpay status, or
in a paid leave status are creditable towards the completion of the
service period.
(c) The service agreement must specify the method of payment of an
extended assignment agreement. The agency may choose to pay an extended
assignment incentive in an initial lump-sum payment at the beginning of
the service period, in installments at the end of specified periods
throughout the service period (biweekly, monthly, quarterly, etc.), in
a lump-sum payment at the end of the entire service period, or through
a combination of payment methods.
(d) The service agreement must include the conditions under which
the employee would be required to repay an extended assignment
incentive under Sec. 575.513.
(e) The service agreement must specify the conditions under which
the payment of an extended assignment incentive may be terminated by
the agency under Sec. 575.512.
(f) The service agreement must specify the conditions under which
the agency may be obligated to pay an additional incentive payment for
partially completed service, as provided in Sec. 575.513(d).
(g) The service agreement must specify the conditions under which
the agency may impose a repayment penalty under Sec. 575.513(e) for an
employee who fails to fulfill the terms of the service agreement.
(h) The service agreement must specify the conditions under which
the agency may be obligated to pay an incentive payment attributable to
some or all of the employee's uncompleted service for employees covered
by Sec. 575.511 or Sec. 575.512.
[[Page 53671]]
Sec. 575.511 What happens when an employee is involuntarily separated
or involuntarily reassigned prior to completion of the service period?
An employee who is involuntarily separated or is involuntarily
reassigned to a position outside the particular territory, possession,
or commonwealth involved is not indebted to the Federal Government for
any extended assignment incentive payments he or she has received. The
employee is entitled to keep all incentive payments received and, if
applicable, is entitled to receive any additional amount representing
the difference between the amount received and the prorated share of
the total incentive attributable to completed service. The employee may
receive a portion or all of the incentive payment attributable to
uncompleted service only to the extent provided in the service
agreement.
Sec. 575.512 When may an agency terminate a service agreement?
(a) An agency may unilaterally terminate a service agreement based
solely on the business needs of the agency. For example, an authorized
agency official may terminate a service agreement when the employee's
position is affected by a reduction in force or when there are
insufficient funds to continue the planned incentive payments.
(b) If an agency terminates a service agreement under paragraph (a)
of this section, the employee is entitled to keep all incentive
payments received and, if applicable, is entitled to receive any
additional amount representing the difference between the amount
received and the prorated share of the total incentive attributable to
completed service. The employee may receive a portion or all of the
incentive payment attributable to uncompleted service only to the
extent provided in the service agreement.
Sec. 575.513 What are the agency's and the employee's obligations
when an employee fails to fulfill the terms of a service agreement?
(a) This section does not apply when an employee is involuntarily
separated or involuntarily reassigned to a position outside the
particular territory, possession, or commonwealth involved, as provided
in Sec. 575.511 or when an agency unilaterally terminates a service
agreement under Sec. 575.112.
(b) An employee is indebted to the Federal Government and must
repay the paying agency for an appropriate portion of an extended
assignment incentive received by the employee if--
(1) The employee fails to complete the period of employment
required in his or her service agreement; or
(2) The employee violates any other condition specified in the
service agreement that would trigger termination of the agreement.
(c)(1) If an employee does not fulfill the terms of a service
agreement under the circumstances prescribed in paragraph (b) of this
section and has received incentive payments whose value as a percentage
of the planned total sum of incentive payments for the entire service
period exceeds the percentage reflecting the portion of the service
period completed by the employee, he or she must repay the excess
payment and any additional repayment penalty imposed by the agency
under paragraph (e) of this section.
(2) For example, consider an employee who signed a 364-day (26 pay
period) service agreement and received the full amount of the extended
assignment incentive as an initial lump-sum payment. If the employee
voluntarily leaves after 20 pay periods (280 days), the employee will
have received 100 percent of the total extended assignment incentive
while completing only 76.9 percent (280/364) of the service period. The
excess is 23.1 percent. Therefore, the employee must repay 23.1 percent
(84/364) of the incentive. The employee is entitled to keep 76.9
percent of the incentive, unless the agency imposes an additional
repayment penalty for failure to fulfill the service agreement under
paragraph (e) of this section.
(d)(1) If an employee does not fulfill the terms of the service
agreement under the circumstances prescribed in paragraph (b) of this
section and has received incentive payments whose value as a percentage
of the planned total sum of incentive payments for the entire service
period is less than or equal to the percentage reflecting the portion
of the service period completed by the employee, the employee has no
repayment obligation unless the agency imposes an additional repayment
penalty under paragraph (e) of this section. The agency may pay an
additional incentive payment for some or all of the service completed
by the employee if such additional payment is required by the service
agreement. The total amount of incentive payments received by the
employee may not exceed the prorated share of the planned incentive
attributable to completed service.
(2) For example, consider an employee who signed a 364-day (26 pay
period) service agreement to receive a total extended assignment
payment of $24,501 in two equal installment payments--i.e., $12,250.50
at the end of 13 pay periods of completed service and $12,250.50 at the
end of the required service period. If the employee voluntarily leaves
after 20 pay periods (280 days), the employee will have received only
50 percent of the total extended assignment incentive while completing
76.9 percent (280/364) of the service agreement. The agency may pay the
employee an additional amount of up to 26.9 percent of the incentive
payment that is attributable to completed service, as allowed under the
terms of the service agreement, assuming the agency does not impose an
additional repayment penalty for failure to fulfill the service period
under paragraph (e) of this section.
(e) An agency may impose an additional repayment penalty on an
employee who does not fulfill the terms of a service agreement. This
repayment penalty is in addition to any repayment required by paragraph
(c) of this section. The specific terms and conditions governing the
repayment penalty must be included in the service agreement. For
example, an agency may adopt a schedule or formula that provides for
varying penalty amounts based on the portion of the service period
completed by the employee.
(f) If an employee fails to reimburse the paying agency for the
full amount owed under this section, the amount outstanding must be
recovered from the employee under the agency's regulations for
collection by offset from an indebted Government employee under 5
U.S.C. 5514 and 5 CFR part 550, subpart K, or through the appropriate
provisions for debt collection if the individual is no longer a Federal
employee. However, the head of the agency may waive the debt under 5
U.S.C. 5584, if warranted.
Sec. 575.514 What are an agency's monitoring responsibilities?
Each agency must monitor the use of extended assignment incentives
to ensure that the agency's extended assignment incentive plan and the
payment of extended assignment incentives are consistent with the
requirements and criteria established under 5 U.S.C. 5757 and this
subpart.
Sec. 575.515 What records and reports are required?
(a) Each agency must keep a record of each determination required
by this subpart and make such records available for review upon OPM's
request.
(b) Each agency must provide any information requested by OPM for
its
[[Page 53672]]
report to Congress, as required by 5 U.S.C. 5757(d). Before February
15, 2006, each agency must submit a written report to OPM on--
(1) The agency's use of extended assignment incentives by providing
the data required in paragraph (c) of this section;
(2) Whether the use of extended assignment incentives influenced
employees to stay longer than their initial tour of duty at their
current duty stations; and
(3) The agency's recommendations for changes necessary to improve
the effectiveness of extended assignment incentives.
(c) Each agency report must contain the following data for the
period from May 2, 2003, to December 31, 2005:
(1) The number of extended assignment service agreements that
commenced in each fiscal year;
(2) The dollar amount expended on extended assignment incentives in
each fiscal year;
(3) The number of employees who declined an extended assignment
incentive, by occupational series and geographic location;
(4) The number of employees who signed an extended assignment
incentive service agreement, the total amount of the planned
incentives, and the total number of years of agreed-upon service, by
occupational series and geographic location;
(5) The number of employees whose service agreements were
terminated before completion of the agreed-upon service period, with
subcounts showing the number covered by Sec. 575.511, Sec. 575.512,
and Sec. 575.513, respectively.
(6) The number of employees who incurred a repayment debt under
Sec. 575.513 (including any repayment penalty under Sec. 575.513(e))
and the total amount of repayment debt incurred; and
(7) The portion of the repayment debt that, as of December 31,
2005--
(i) Has been recovered;
(ii) Is subject to ongoing collection efforts; and
(iii) Has been waived or written off.
[FR Doc. 03-23132 Filed 9-11-03; 8:45 am]
BILLING CODE 6325-39-M