§7432. Special pay: written agreements

(a) An agreement entered into by a physician or dentist under this subchapter shall cover a period of one year of service in the Veterans Health Administration unless the physician or dentist agrees to an agreement for a longer period of service, not to exceed four years, as specified in the agreement. A physician or dentist who has previously entered into such an agreement is eligible to enter into a subsequent agreement unless the physician or dentist has failed to refund to the United States any amount which the physician or dentist is obligated to refund under any such previous agreement.

(b)(1) An agreement under this subchapter shall provide that, if the physician or dentist entering into the agreement voluntarily, or because of misconduct, fails to complete any of the years of service covered by the agreement (measured from the anniversary date of the agreement), the physician or dentist shall refund an amount of special pay received under the agreement for that year equal to-

(A) in the case of a failure during the first year of service under the agreement, 100 percent of the amount received for that year;

(B) in the case of a failure during the second year of service under the agreement, 75 percent of the amount received for that year;

(C) in the case of a failure during the third year of service under the agreement, 50 percent of the amount received for that year; and

(D) in the case of a failure during the fourth year of service under the agreement, 25 percent of the amount received for that year.

(2)(A) The Secretary may waive (in whole or in part) the requirement for a refund under paragraph (1) in any case if the Secretary determines (in accordance with regulations prescribed under section 7431(a) of this title) that the failure to complete such period of service is the result of circumstances beyond the control of the physician or dentist.

(B) The Secretary may suspend a special pay agreement entered into under this section in the case of a physician or dentist who, having entered into the special pay agreement, enters a residency training program. Any such suspension shall terminate when the physician or dentist completes, withdraws from, or is no longer a participant in the program. During the period of such a suspension, the physician or dentist is not subject to the provisions of paragraph (1).

(3) Any such agreement shall specify the terms under which the Department and the physician or dentist may elect to terminate the agreement.

(c)(1) If a proposed agreement under this subchapter will provide a total annual amount of special pay to be provided to a physician or dentist who has previously entered into an agreement under this subchapter (or under section 4118 ¹ of this title as in effect before the effective date of the Department of Veterans Affairs Physician and Dentist Recruitment and Retention Act of 1991) that will exceed the previous annual amount of special pay provided for the physician or dentist by more than 50 percent (other than in the case of a physician or dentist employed in an executive position in the Central Office of the Department), or that will be less than the previous annual amount of special pay provided for the physician or dentist by more than 25 percent, the proposed agreement shall be promptly submitted to the Secretary. The proposed agreement shall not take effect if it is disapproved by the Secretary within 60 days after the date on which the physician or dentist entered into the proposed agreement.

(2) For purposes of paragraph (1), the previous annual amount of special pay provided for a physician or dentist is the total annual amount of special pay provided, or to be provided, to the physician or dentist for the most recent year covered by an agreement entered into by the physician or dentist under this subchapter or under section 4118 ¹ of this title. In the case of an agreement entered into under section 4118 ¹ of this title, incentive pay shall be treated as special pay for purposes of this paragraph.

(3) The Secretary shall adjust special pay as necessary for purposes of this subsection to reflect appropriately any change in the status of a physician or dentist (A) from full-time status to part-time status, (B) from part-time status to full-time status, or (C) from one proportion of time spent as a Department employee under part-time status employment to a different proportion.

(d)(1) If a proposed agreement under this subchapter (other than an agreement in the case of the Under Secretary for Health) will provide a total annual amount of special pay to be provided to a physician or dentist which, when added to the amount of basic pay of the physician or dentist, will be in excess of the amount payable for positions specified in section 5312 of title 5, the proposed agreement shall be promptly submitted for approval to the Secretary through the Under Secretary for Health. The agreement shall take effect at the end of the 60-day period beginning on the date on which the physician or dentist entered into the proposed agreement if it is neither approved nor disapproved within that 60-day period. If the agreement is approved within that period, the agreement shall take effect as of the date of the approval. A proposed agreement may be disapproved under this paragraph only if it is determined that the amounts of special pay proposed to be paid are not necessary to recruit or retain the physician or dentist.

(2) A proposed agreement under this subchapter with the Under Secretary for Health may provide for payment of special pay for which the Under Secretary for Health is eligible under this subchapter (other than that specified in section 7433(b)(4)(B) of this title) only to the extent specifically approved by the Secretary.

(3) The Secretary shall include in the annual report required by section 7440 of this title-

(A) a statement of the number of agreements entered into during the period covered by the report under which the total amount of special pay to be provided, when added to the amount of basic pay of the physician or dentist, will be in excess of the amount payable for positions specified in section 5312 of title 5;

(B) a statement of the number of proposed agreements which during the period covered by the report were disapproved under this subsection; and

(C) a detailed explanation of the basis for disapproval of each such proposed agreement which was disapproved under this subsection.

(4) This subsection does not apply to any proposed agreement entered into after September 30, 1994.

(Added Pub. L. 102–40, title I, §102, May 7, 1991, 105 Stat. 189 ; amended Pub. L. 102–405, title III, §302(c)(1), Oct. 9, 1992, 106 Stat. 1984 ; Pub. L. 104–262, title III, §346, Oct. 9, 1996, 110 Stat. 3208 .)

References in Text

Section 4118 of this title, referred to in subsec. (c)(1), (2), was repealed by Pub. L. 102–40, title IV, §401(a)(3), May 7, 1991, 105 Stat. 210 .

The effective date of the Department of Veterans Affairs Physician and Dentist Recruitment and Retention Act of 1991, referred to in subsec. (c)(1), probably means the effective date of title I of Pub. L. 102–40, which enacted this subchapter, and which is generally effective on first day of first pay period after July 1, 1991, subject to certain transition and savings provisions, see section 104 of Pub. L. 102–40, set out as a note under section 7431 of this title.

Prior Provisions

Provisions similar to those in this subchapter were contained in section 4118 of this title prior to the repeal of that section as part of the complete revision of chapter 73 of this title by Pub. L. 102–40.

Amendments

1996-Subsec. (b)(2). Pub. L. 104–262 designated existing provisions as subpar. (A) and added subpar. (B).

1992-Subsec. (d)(1), (2). Pub. L. 102–405 substituted "Under Secretary for Health" for "Chief Medical Director" wherever appearing.

Effective Date

Section effective on first day of first pay period after July 1, 1991, subject to transition and savings provisions and prohibition on retroactive agreements, see section 104 of Pub. L. 102–40, set out as a note under section 7431 of this title.

Section Referred to in Other Sections

This section is referred to in section 7431 of this title.

¹ See References in Text note below.