§5754. Retention allowances

(a) The Office of Personnel Management may authorize the head of an agency to pay an allowance to an employee under the General Schedule if-

(1) the unusually high or unique qualifications of the employee or a special need of the agency for the employee's services makes it essential to retain the employee; and

(2) the agency determines that the employee would be likely to leave in the absence of a retention allowance.

(b)(1) A retention allowance, which shall be stated as a percentage of the rate of basic pay (excluding any comparability payments under section 5304) of the employee, may not exceed 25 percent of such rate of basic pay.

(2) A retention allowance may not be considered to be part of the basic pay of an employee, and the reduction or elimination of a retention allowance may not be appealed. The preceding sentence shall not be construed to extinguish or lessen any right or remedy under subchapter II of chapter 12 or under any of the laws referred to in section 2302(d).

(3) A retention allowance shall be paid at the same time and in the same manner as the employee's basic pay is paid.

(c) For the purpose of this section-

(1) the terms "agency" and "employee" have the meanings given them by section 5102; and

(2) any reference to "an employee under the General Schedule" shall be considered to be a reference to any employee holding a position to which subchapter III of chapter 53 applies.

(d) The Office shall prescribe such regulations as it considers necessary for the administration of subsections (a) through (c).

(e) At the request of the head of an Executive agency, the President may authorize the application of the preceding provisions of this section with respect to 1 or more categories of employees within such agency who would not otherwise be covered by this section (including authority under subsection (d) to prescribe any necessary regulations).

(Added Pub. L. 101–509, title V, §529 [title II, §208(a)], Nov. 5, 1990, 104 Stat. 1427 , 1459.)

Effective Date

Section effective on such date as the President shall determine, but not earlier than 90 days, and not later than 180 days, after Nov. 5, 1990, see section 529 [title III, §305] of Pub. L. 101–509, set out as an Effective Date of 1990 Amendment note under section 5301 of this title.

Delegation of Functions

Authority of President under subsec. (e) of this section delegated to Office of Personnel Management by section 6(c) of Ex. Ord. No. 12748, Feb. 1, 1991, 56 F.R. 4521, eff. May 4, 1991, set out as a note under section 5301 of this title.

Section Referred to in Other Sections

This section is referred to in section 5307 of this title; title 38 section 7410.