UNCLASSIFIED (U)

3 FAM 3180

RECRUITMENT AND RELOCATION BONUSES AND RETENTION ALLOWANCES

(CT:PER-878; 09-08-2017)
(Office of Origin: HR/RMA)

3 FAM 3181 GENERAL INFORMATION

3 FAM 3181.1 Authority

(TL:PER-400; 05-08-2001)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

This regulation implements the provisions of the Federal Employees Pay Comparability Act (FEPCA) of 1990 dealing with the payment of certain incentive bonuses and allowances to augment agency recruitment and retention efforts.

(1) On September 3, 1991, the Office of Personnel Management (OPM) authorized, under the law cited, the Department to pay recruitment and relocation bonuses and retention allowances under 5 U.S.C. 5753 and 5754 to employees appointed under the Foreign Service Act of 1980 (as amended) and the United Nations Participation Act of 1945 (as amended).

(2) The 5 U.S.C. 5753 and 5 CFR Part 575, Subpart A and B govern the payment of recruitment and relocation bonuses for Civil Service employees covered under 3 FAM 3181.4, paragraph (a)(1).

(3) The 5 U.S.C. 5754 and 5 CFR Part 575, Subpart C govern the payment of retention allowances to Civil Service employees covered under 3 FAM 3181.4, paragraph (a)(1). Additionally, under the law cited, employees appointed under the United Nations Participation Act of 1945 (as amended) and the Foreign Service Act of 1980 (as amended) are authorized to receive retention allowances in accordance with the September 3, 1991, letter from OPM.

3 FAM 3181.2 Policy

(TL:PER-400; 05-08-2001)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

a. These regulations include the elements of the Departments recruitment and relocation bonus plan, and retention allowance plan for employees in the Foreign and Civil Service.

b. Federal recruitment and relocation bonuses and retention allowances are not entitlements.

c. Recruitment and relocation bonuses and retention allowances will be used only when necessary to attract qualified applicants and/or retain employees with outstanding qualifications for positions in designated employment categories.

d. These payments are not substitutes for sound work force planning and thorough efforts to recruit, train, and retain a well-qualified work force, but supplements the Departments recruitment and retention efforts.

e. Management shall ensure these regulations are applied in a fair and equitable manner regardless of service affiliation, in accordance with the provisions outlined in 5 CFR, Part 575 and this subchapter.

3 FAM 3181.3 Definitions

(CT:PER-878; 09-08-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

In addition to the definitions found in 5 CFR 575.102, 5 CFR 575.202, and 5 CFR 575.302, the following terms have these definitions:

(1) Approving officialThe Director General of the Foreign Service and the Director of Human Resources (M/DGHR) has been delegated authority to approve the payment of a recruitment bonus, relocation bonus, or retention allowance, subject to 3 FAM 3183.1, paragraph b;

(2) Recommending officialThe supervisor or official over a Civil or Foreign Service position who would normally be responsible for making a selection to fill a vacant position; and

(3) Designated employment categoryA designation established by the Bureau of Human Resources (HR) denoting an occupational group, position, set of duties and responsibilities, and/or geographic location for which the Department has experienced or is experiencing difficulty recruiting qualified employees or in the case of a retention allowance is based upon a special need that makes it essential to retain the employees services.

3 FAM 3181.4 Coverage

(CT:PER-878; 09-08-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

a. This subchapter covers positions in designated employment categories that are:

(1) Positions described in 5 CFR 575.103, 5 CFR 575.203, and 5 CFR 575.303;

(2) Positions filled under the Foreign Service Act of 1980 (as amended); and

(3) Positions filled under the United Nations Participation Act of 1945 (as amended).

b. Specifically excluded from coverage under this subchapter are:

(1) The Secretary of State;

(2) Any position to which an individual is appointed with the expectation of receiving an appointment as the Secretary of State; and

(3) Any position not specifically covered in 5 CFR 575.103, 5 CFR 575.203, 5 CFR 575.303, or this subchapter.

3 FAM 3181.5 Records

(CT:PER-878; 09-08-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

a. The determination to pay a recruitment or relocation bonus and/or retention allowance must be documented in writing and supported by a corresponding service agreement (if applicable), in accordance with 3 FAM 3184.4.

b. A file of all documentation contained in the recommendation for a bonus or allowance must be maintained on each recruitment or relocation bonus and/or retention allowance requested in the appropriate Bureau of Human Resources (HR) component as specified in 3 FAM 3183.5.

c. A record shall be maintained of each recruitment and relocation bonus and/or retention allowance dispersed. The Bureau of Human Resources Budget Office (HR/EX/ADM/BUD&PAT) must maintain a record of each recruitment bonus authorized for payment; and the Comptroller and Bureau of Global Financial Services (CGFS) must maintain a record of all bonuses and/or allowances dispersed.

d. The signed service agreement for recruitment and retention bonuses must be retained on the temporary (left-hand) side of the employees' official personnel folder (OPF).

e. HR must establish and periodically update a list of occupational groups, positions, sets of duties and responsibilities, and/or geographic locations identified as "designated employment categories" for the purpose of authorizing payment of a recruitment or relocation bonus and/or retention allowance.

3 FAM 3181.6 Reports

(CT:PER-878; 09-08-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

By the end of the first quarter of each fiscal year, M/DGHR with the assistance of the Bureaus of Human Resources (HR) and CGFS must compile a report for the Under Secretary for Management on the Department-wide use of recruitment and relocation bonuses and retention allowances for the prior fiscal year. This report:

(1) Will be drawn from information supplied by each of the responsible HR offices (HR/REE, HR/CSHRM, HR/RMA, HR/EX/ADM/BUD&PAT), and CGFS;

(2) Must include the number of employees who received an authorized bonus or allowance during the previous fiscal year, the percentage of salary authorized, the dollar amount paid, the organization and duty station for which authorized, the incentive type, and a summary of the impact the payment of these bonuses and allowances had on the Departments ability to attract or retain qualified employees; and

(3) Will be made available to the Office of Personnel Management (OPM), upon request.

3 FAM 3182 DELEGATIONS

(TL:PER-400; 05-08-2001)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

a. The responsibilities associated with the approval and payment of recruitment and relocation bonuses and retention allowances are carried out by the officials and offices listed in 3 FAM 3183 unless otherwise delegated by the Director General of the Foreign Service and Director of Human Resources.

b. For the Foreign Service, the responsibilities of the recommending official and executive director are performed by the Bureau of Human Resources (HR) Offices specified in 3 FAM 3183.5 unless otherwise delegated by M/DGHR.

3 FAM 3183 RESPONSIBILITIES

3 FAM 3183.1 The Director General of the Foreign Service

(CT:PER-878; 09-08-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

a. The Director General of the Foreign Service and Director of Human Resources (M/DGHR) have oversight and management responsibility for the implementation of the Departments bonus and allowance plans. M/DGHR must ensure that the Departments use of recruitment and relocation bonuses and retention allowances conforms to the requirements established in 5 CFR, Part 575 and this subchapter.

b. M/DGHR reviews and approves decisions concerning payment of recruitment or relocation bonuses and/or retention allowances (or changes thereto), including those proposed for an individual who would be subject to mandatory retirement prior to the termination of a service agreement (see 3 FAM 3184.2, paragraph b). This does not apply to initial decisions at the assistant secretary and equivalent level or higher, which require the final approval of the Under Secretary for Management (M).

3 FAM 3183.2 Recommending Official

(TL:PER-400; 05-08-2001)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

a. The recommending official is responsible for preparing a written recommendation with appropriate supporting documentation justifying the request for a recruitment or relocation bonus and/or retention allowance to be reviewed and approved by the appropriate executive director.

b. In the case of a retention allowance, the recommending official is also responsible for providing subsequent written documentation to the executive director, at least annually, to permit review and determination that the conditions which gave rise to the retention allowance still exist, and that payment is still warranted.

3 FAM 3183.3 Executive Directors

(TL:PER-400; 05-08-2001)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

a. Executive directors have overall administrative responsibility for implementing the Departments recruitment and relocation bonus and retention plans for their respective bureaus. They ensure that the bureaus use of recruitment and relocation bonuses and retention allowances conform to the requirements established in this subchapter and 5 CFR, Part 575.

b. Unless otherwise determined by the assistant secretary of the bureau, the executive director ensures that all functions are performed pertaining to the approval, payment, reauthorization, and/or termination of recruitment and relocation bonuses and retention allowances in accordance with the provisions of this subchapter.

c. Recommendations not certified by the bureau executive director shall not receive further consideration.

3 FAM 3183.4 Comptroller and Bureau of Global Financial Services

(CT:PER-878; 09-08-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

The Comptroller and Bureau of Global Financial Services (CGFS) must:

(1) Disburse the approved recruitment and relocation bonuses, and/or retention allowances consistent with the provisions of this subchapter;

(2) Recover amounts owed by the employee in accordance with the provisions of this subchapter;

(3) Monitor the aggregate limitation on pay for employees receiving a bonus or allowance, to ensure that the aggregate compensation that the employee receives does not exceed the rate then payable for Level I of the Executive Schedule at the end of the calendar year;

(4) Reduce the amount of the retention allowance upon receiving notification that the approving official has authorized a lesser retention allowance;

(5) Terminate or reduce a retention allowance for which the initial authorization period has expired, or for which justification is no longer warranted or for which is in excess of the aggregate limitation on pay; and

(6) Provide statistical data to M/DGHR, upon request, for preparation of the annual report to the Under Secretary for Management on the Department-wide use of recruitment and relocation bonuses and/or retention allowances dispersed in accordance with the provisions of this subchapter.

3 FAM 3183.5 Bureau of Human Resources

(CT:PER-878; 09-08-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

The following Bureau of Human Resources (HR) office directors have primary responsibility for assisting M/DGHR in managing and conducting oversight of the Departments recruitment and relocation bonus and retention allowance plans for employees in the Foreign and Civil Service. In carrying out these responsibilities, each responsible HR component must monitor the approval and payment of bonuses and/or allowances to ensure that all functions are performed and their use conforms with the requirements established under 5 CFR, Part 575 and this subchapter:

(1) The Office of Civil Service Human Resource Management (HR/CSHRM) for all Civil Service recruitment and relocation bonuses and retention allowances;

(2) The Office of Recruitment, Examination, and Employment (HR/REE) for Foreign Service recruitment bonuses; and

(3) The Office of Resource Management and Analysis (HR/RMA) for Foreign Service relocation bonuses and retention allowances.

3 FAM 3184 RECRUITMENT AND RELOCATION BONUSES

3 FAM 3184.1 Conditions for Payment of Bonuses

(TL:PER-400; 05-08-2001)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

a. Each recruitment or relocation bonus paid shall be based on a written determination that in the absence of such a bonus, serious difficulty would be encountered in filling the position. Each determination shall be made before the employee actually enters on duty in the position for which he or she was recruited or to which he or she is being relocated.

(1) A recruitment bonus may be paid to an employee (as defined in 5 CFR 575.103), who is newly appointed, regardless of tenure, or to a former employee of the Federal Government following a break in service of at least 90 days (see 3 FAM 3181.4, paragraph a), or to an individual who has received a written offer of employment to a position in a designated employment category.

(2) A relocation bonus may be paid to an employee who is assigned without a break in service to a covered position (see 3 FAM 3181.4, paragraph a) in a designated employment category, in a different commuting area, or whose duty station is changed temporarily to a different commuting area.

b. A relocation bonus may not be paid to an individual whose conditions of employment include worldwide availability, or a similar mobility agreement, and whose relocation involves a position outside the continental United States. A Foreign Service employee rotating to a designated position within the continental United States may be eligible for a relocation bonus, subject to established coverage criteria, and the provisions outlined in this subchapter.

c. Each determination to approve payment of a recruitment or relocation bonus shall be based on whether such payment is in the best interests of the Department and the criteria outlined in 3 FAM 3184.2 are met.

3 FAM 3184.2 Criteria for Payment of Bonuses

(CT:PER-878; 09-08-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

a. In determining whether a recruitment or relocation bonus should be paid, including the amount of such a bonus, consideration must be given to the following factors, as applicable, and addressed in the written documentation prepared by the recommending official or other delegated official, if applicable:

(1) The success of recent efforts to recruit qualified candidates for similar positions (including indicators such as offer acceptance rates, the proportion of positions filled, and the length of time required to fill similar positions);

(2) Recent turnover in similar positions;

(3) Labor market factors that may affect the ability of the Department to recruit qualified internal and external candidates, now or in the future, for similar positions (may include such factors as salary ranges among comparable positions, scarcity of skills, emerging technology, and hazardous conditions);

(4) Special or unique qualifications needed for the position;

(5) For recruitment bonus only: The practicality of using the superior qualifications appointment authority provided by 5 U.S.C. 5333 and 5 CFR 531.212, Section 302(1) of the Foreign Service Act of 1980, or other such incentives (alone or in combination with a recruitment bonus);

(6) Positive and negative impact on the morale of current employees;

(7) A discussion of the rationale concerning the bonus amount requested (expressed as a percentage of basic salary) (see 3 FAM 3184.3, paragraph a);

(8) The urgency of filling the position in question; and

(9) Any other factors that would support, or are relevant to, the justification for payment of the recommended bonus.

b. A recruitment or relocation bonus will not be approved for an individual who will reach mandatory retirement age under 5 U.S.C. 8335 and 8425, Section 812 of the Foreign Service Act of 1980, or any other relevant provision of law prior to the expiration of the service agreement, without the express written consent of the Director General of the Foreign Service and Director of Human Resources (M/DGHR). See 3 FAM 3183.1, paragraph b. A relocation bonus may not be made to an employee when it is known at the time of the recommendation that the employee will be retired from the Foreign Service under Section 607 of the Foreign Service Act of 1980 (expiration of time in class) prior to the expiration of the service agreement.

3 FAM 3184.3 Payment of Bonuses

(CT:PER-878; 09-08-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

a. Recruitment and relocation bonuses must be calculated as a full percentage of the employees annual rate of basic pay, exclusive of any additional pay or other geographic locality adjustments under Section 302 of the Federal Employees Pay Comparability Act of 1990, and may not exceed 25 percent of basic pay.

b. Recruitment and relocation bonuses will be paid in a lump sum, and are not considered part of an employees rate of basic pay for any purpose.

c. In the case of a relocation bonus, an employee who is entitled to grade or pay retention must receive the bonus calculated on the employees retained rate. This fact should also be considered when determining the appropriate percentage of a retention allowance.

d. In the case of a law enforcement officer within the meaning of 5 U.S.C. 8331(20) or 8401(17), with respect to whom the provisions of 5 U.S.C., Chapter 51 apply, or a special agent in the Diplomatic Security Service, the amount of a relocation bonus may be the greater of $15,000 or 25 percent of the officers annual rate of basic pay.

e. Recruitment and relocation bonuses may be authorized for an employee (or a prospective employee) even if such a bonus will, when added to the annual rate of all other payments (as defined in 5 CFR 530.202) to which the employee is entitled, cause the annual rate to exceed the rate then payable for Level I of the Executive Schedule. However, any such excess must be carried over and paid in lump sum at the beginning of the next calendar year (5 CFR 530.204), in accordance with this subchapter.

f. In the case of a relocation bonus, the employee must establish residence in the new commuting area before the bonus can be paid. Proof that an employee has established such a residence must be forwarded to the responsible executive director or for a Foreign Service employee, HR/RMA for a determination that requirements were met, prior to the actual payment of the relocation bonus.

3 FAM 3184.4 Service Agreements

(CT:PER-878; 09-08-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

a. An employee may not be paid a recruitment or relocation bonus until he or she has signed a written service agreement for a specified period of employment with the Department. (See myData for Form DS-3044, Service Agreement For A Recruitment Bonus, and Form DS-3045, Service Agreement For A Relocation Bonus.)

b. Except as provided in 3 FAM 3184.5 b, paragraphs (1) and (2) below, the period of employment under a written service agreement for a recruitment or relocation bonus must be 12 months from the date of appointment or relocation to the new duty station.

(1) Service agreements for relocation bonuses based on a temporary change in duty station may be established for periods of less than 12 months, but may not be less than the projected duration of the temporary change in duty station, if it is less than 12 months.

(2) On a case-by-case basis, longer periods may be established for service agreements, based upon consideration of the following: high ratio of bonus to basic salary, training, or orientation time needed for the individual to reach full productivity; work of a project nature; other incentives the individual might have received; or exceptional circumstances.

c. Service agreements will run concurrently with other simultaneous or subsequent service agreements in effect.

d. The presence or absence of a service agreement in connection with a recruitment or relocation bonus will not be a consideration for action under the Departments Merit Promotion Program. However, selection under a merit program does not abrogate an employees repayment obligation under 3 FAM 3184.6.

e. In the event of a transfer of function within the Department or between agencies, the service agreement remains in effect.

3 FAM 3184.5 Processing Recruitment and Relocation Bonuses

(CT:PER-878; 09-08-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

a. The recommending official must prepare the written justification for a recruitment or relocation bonus in accordance with the provisions of this subchapter (see myData for Form DS-3046, Recruitment Or Relocation Bonus Recommendations). The official certifies approval by signing and forwarding the recommendation along with supporting documentation to the bureau's executive director or other delegated official for review. Use Form DS-3046 to indicate approval and transmit recommendation.

b. The applicable bureau executive director or other authorized official must:

(1) Make an initial determination whether the written recommendation and supporting documentation, submitted by the recommending official, contain sufficient justification for payment of a recruitment or relocation bonus, according to the conditions in 3 FAM 3184.1 and criteria in 3 FAM 3184.2;

(2) Certify support by signing the approval in Form DS-3046, if the bureau executive director agrees with the recommending official. In addition, the executive director ensures that a service agreement, Form DS-3044 or Form DS-3045, is prepared. Recommendations not certified by the bureau executive director or other authorized official will not receive further consideration; and

(3) Forward the approval Form DS-3046 along with a written recommendation, service agreement (Form DS-3044 or Form DS-3045) and supporting documentation to the responsible HR office specified in 3 FAM 3183.5 or other delegated official.

c. The responsible HR component must:

(1) Evaluate each recommendation against relevant statutory, regulatory, and policy guidance (FEPCA, 5 CFR, Part 575 and 3 FAM 3184.1 and 3184.2), to ascertain whether it meets the established criteria;

(2) Prepare a memorandum of recommendation from the office director to the designated approving official to approve or deny the bonus (see 3 FAM 3181.3, paragraph (1), and 3 FAM Exhibit 3180.1);

(3) Forward the approval Form DS-3046 along with written recommendation, service agreement Form DS-3044 or Form DS-3045 and supporting documentation to the designated approving official for final review and decision;

(4) Maintain copies of all documentation included with the recommendation package in a separate file within the office; and

(5) Transmit notification of the designated approving officials approval or denial of the recommended bonus to the bureau executive director, with such additional information as is deemed necessary;

d. Upon being notified, the executive director must:

(1) Notify the prospective employee or employee of approval or denial;

(2) Upon entrance on duty (EOD), direct the preparation of a Form SF-52, Request for Personnel Action, for payment of the bonus in accordance with the Office of Personnel Managements (OPM) Guide to Processing Personnel Actions, Chapter 29. A bonus may not be paid prior to the employee's entrance on duty or relocation to a new assignment;

(3) File or transmit a copy of the final authorization only signed by the designated approving official and the signed service agreement Form DS-3044 or Form DS-3045 to HR/EX/RM for filing on the temporary (left-hand) side of the official personnel folder (OPF); and

(4) Transmit a copy of the final authorization only, signed by the designated approving official and the Form SF-52 along with the original Form SF-1034, Public Voucher for Purchases and Services Other Than Personal; or other HR approved form to HR's Budget Office, HR/EX/ADM/BUD&PAT to allocate the funds to pay the recruitment or relocation bonus.

e. HR/EX/ADM/BUD&PAT must allocate the funds and transmit the Form SF-1034 to CGFS for payment.

f. CGFS will process the disbursement of an approved recruitment or relocation bonus, upon receipt of the Form SF-1034.

3 FAM 3184.6 Repayment of Bonuses

(CT:PER-878; 09-08-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

a. Except as provided in 3 FAM 3184.6, paragraph c or d, an employee who fails to complete the established period of employment in a position covered by the service agreement will be indebted to the Federal Government and required to repay the recruitment or relocation bonus on a pro rata basis. The amount to be repaid will be determined by providing credit for each full month of employment completed by the employee under the service agreement.

b. Amounts owed by an employee under 3 FAM 3184.6, paragraph a, will be recovered from the employee under the provisions of 5 U.S.C. 5514, 5 CFR 550, Subpart K, and 22 CFR Part 34.

c. The executive director must notify the employee of the requirement to repay the bonus. Upon receipt of a copy of the written notification to the employee, CGFS will work with the bureau to take the necessary steps to recover repayment of recruitment and relocation bonuses for the period of employment in a position covered by the service agreement.

d. The information in 3 FAM 3184.6, paragraph a, does not apply when an employee fails to complete a period of employment established under a service agreement because the employee:

(1) Is involuntarily separated (as defined in 5 C.F.R. 575.103); or

(2) Is relocated to a position in a different commuting area after receiving a written determination by the appropriate management official that it is necessary to relocate the employee; or

(3) Granted a waiver under 5 U.S.C. 5514 by the agency head or designee that recovery of this debt (in whole or in part) would be against equity and good conscience or against the public interest.

e. A right of recovery of an employees debt under 5 U.S.C. 5514 may be waived in whole or in part by the Comptroller and Bureau of Global Financial Services (CGFS) if it is determined that recovery would be against equity and good conscience, or against the public interest.

3 FAM 3185 RETENTION ALLOWANCES

3 FAM 3185.1 Conditions for Payment

(CT:PER-878; 09-08-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

A retention allowance may be paid to employees on a case-by-case basis and/or to a group or category of employees when the requirements of 5 CFR Part 575, Subpart C and this subchapter are met:

(1) Each retention allowance paid to an employee on an individual basis must be based on a written determination that the unusually high or unique qualifications of the employee and/or a special need of the Departments for the employees services make it essential to retain the employee, and that in the absence of such an allowance, the employee would be likely to leave Federal service;

(2) Each retention allowance paid to a group or category of employees must be based on a written determination that the category of employees has unusually high or unique qualifications, or the Department has a special need for the employees' services that makes it essential to retain the employees in the designated employment category; and it is reasonable to presume that there is a high risk that a significant number of employees in the targeted category are likely to leave Federal service in the absence of the allowance;

(3) A retention allowance to be paid to a group or category of employees in excess of 10 percent must also be approved by the Office of Personnel Management (OPM) in accordance with this subchapter and the 5 CFR 575.309.

(4) A retention allowance may not be paid to an employee who is likely to leave his or her position for other employment in the executive, legislative, or judicial branch of the Federal Government, whether in the same or a different agency;

(5) To be eligible for a retention allowance, an employee must be serving under a Federal appointment authority and complete at least one year of current continuous service with the Department immediately prior to the payment of the allowance. Individuals who transfer from a Federal agency must complete at least six months of current continuous service; and

(6) In the case of a retention allowance which follows a period of service required for payment of a recruitment or relocation bonus, an employee must complete the period of employment established by the service agreement before he or she is eligible to receive a retention allowance.

3 FAM 3185.2 Criteria for Payment

(CT:PER-878; 09-08-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

a. In determining whether a retention allowance should be paid, including the amount of such an allowance, consideration must be given to each of the following factors as appropriate, and addressed in the written documentation prepared by the recommending official:

(1) The extent to which the departure of the employee would affect the Departments ability to carry out a program activity or perform a function that is deemed essential to the Departments mission;

(2) The success of recent efforts to recruit candidates and retain employees with qualifications similar to those possessed by the employee;

(3) The availability in the labor market of candidates for employment who, with minimal training or disruption of service to the public, could perform the full range of duties and responsibilities assigned to the position held by the employee;

(4) The likely effects of such payment on the morale of current employees;

(5) The likely duration of the retention allowance and the probability that the allowance will be extended beyond the initial period for which requested;

(6) A discussion of the rationale concerning the amount requested (expressed as a percentage of basic salary);

(7) The current and expected performance level of the employee;

(8) The relationship of a retention allowance to such payments as previous recruitment or relocation bonuses for which a service agreement has been completed, salary based on superior qualifications, performance awards, or other payments that affect the aggregate monies received by the employee; and

(9) Other special or unique requirements for the employees services.

b. In determining whether a retention allowance of up to 10 percent will be paid to a group or category of employees, the criteria in 5 CFR 575.305(b) must be addressed. In addition, the determination that there is a high risk that a significant number of employees in the targeted category or group are likely to leave will be based on:

(1) Evidence of extreme labor market conditions;

(2) High demand in the private sector for the knowledge and skills possessed by the employees;

(3) Significant disparities between Federal and private sector salaries; or

(4) Other similar conditions.

c. In determining whether a retention allowance in excess of 10 percent will be paid to a group or category of employees, in addition to the criteria under 3 FAM 3185.2, paragraph b, the criteria contained in 5 CFR 575.309(e) must be addressed.

d. In addition to the criteria specified in 3 FAM 3185.2 and 5 CFR Part 575, Subpart C, additional criteria may be established for determining whether an employee(s) will be paid a retention allowance. The retention plan must also contain procedures for paying the allowance and must be approved in accordance with 3 FAM 3183.

3 FAM 3185.3 Payment of Allowance

(CT:PER-878; 09-08-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

a. A retention allowance must be calculated as a full percentage of the employees annual rate of basic pay (not to exceed 25 percent) and paid in the same manner and at the same time as basic pay, i.e., retention allowances will be paid at an hourly rate for each hour during which the employee receives basic pay. Basic pay is defined in 5 CFR 575.302.

b. Retention allowances will not be considered part of an employees rate of basic pay for any purpose.

c. An employee who is entitled to grade or pay retention shall receive the allowance calculated on the employees retained rate.

d. Retention allowances may not be authorized for an employee if or to the extent that such an allowance, when added to the employees estimated aggregate compensation (as defined in 5 CFR 530.202) to which the employee is entitled, would cause the aggregate compensation actually received by the employee during the calendar year to exceed the rate then payable for Level I of the Executive Schedule.

e. Payment of a retention allowance may be continued as long as the conditions giving rise to the original determination to pay the allowance still exist, and payment is still warranted. Continuation of a retention allowance, however, must be reauthorized by the approving official in 3 FAM 3183.1 prior to the expiration date of the retention allowance and in accordance with 3 FAM 3185.5 and 3185.6.

3 FAM 3185.4 PROCESSING RETENTION ALLOWANCES

3 FAM 3185.4-1 Processing Procedures for Individual Employees

(CT:PER-878; 09-08-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

a. The recommending official shall prepare the written justification for a retention allowance in accordance with the provisions of this subchapter using the Form DS-3047, Retention Allowance Recommendations. The official certifies approval by signing and forwarding the recommendation along with supporting documentation to the bureau's executive director or other delegated official for review.

b. The applicable bureau executive director or other authorized official must:

(1) Make an initial determination whether the written recommendation and supporting documentation, submitted by the recommending official, contain sufficient justification for payment of a retention allowance, according to the conditions in 3 FAM 3185.1 and the criteria in 3 FAM 3185.2;

(2) Certify, if the responsible bureau executive director agrees with the recommending officials support for the proposed retention allowance, and that funding is available by signing the form submitted by the recommending official. Recommendations not certified by the bureau executive director will not receive further consideration; and

(3) Forward the Form DS-3047 containing the required signatures, along with the written recommendation, and supporting documentation to the appropriate HR office as specified in 3 FAM 3183.5 or other organization delegated the responsibility by M/DGHR.

c. The HR office or organization delegated the responsibility must:

(1) Evaluate each recommendation against relevant statutory, regulatory, and policy guidance (FEPCA, 5 CFR, Part 575, and 3 FAM 3180), to ascertain whether it meets established criteria;

(2) Prepare a memorandum of recommendation (see 3 FAM Exhibit 3180.1) for the office director's signature to the designated approving official to approve or deny the recommended allowance;

(3) Forward the package containing the written recommendation and supporting documentation to the designated approving official for final review and decision;

(4) Maintain copies of all documentation included with the recommendation in a separate file within the office; and

(5) Transmit notification of the designated approving officials approval or denial of the recommended allowance to the bureau executive director, with such additional information as is deemed necessary.

d. The executive director or other authorized official must:

(1) Notify the employee of the decision;

(2) Direct the preparation, if approved, of a Form SF-52, Request for Personnel Action, in accordance with the Office of Personnel Managements Guide to Processing Personnel Actions, Chapter 17. Retention allowances are effective at the beginning of a pay period. However, the effective date of the retention allowance shall be no sooner than the first full pay period following the date signed by the final approving official. The not-to-exceed date of the allowance shall not exceed one-year, unless a shorter period is approved. (Example: If the effective date of the personnel action is January 9, 2001, the not-to-exceed date of the allowance would be January 8, 2001.) The executive office must manually track not-to-exceed dates of retention allowances, since they are not required on the personnel action; and

(3) Include a copy of the final authorization only (signed by the designated approving official), which must be filed or forwarded to HR/EX/Records Management for filing on the temporary (left-hand) side of the official personnel folder (OPF).

3 FAM 3185.4-2 Processing Procedures for Groups and/or Categories of Employees

(CT:PER-878; 09-08-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

When the payment of a retention allowance will impact employees on a Department-wide basis, the bureau with the functional responsibility, generally, initiates the request or must concur with the recommendation prior to it being forwarded to M/DGHR. In addition, CGFS must concur with the projected cost estimate that must be a part of any plan to pay a group or category of employees a retention allowance.

(1) The recommending or management official must:

(a) Prepare a written recommendation and plan containing a summary of all relevant justification criteria specified in 5 CFR 575.305 and 3 FAM 3185.2; and

(b) Certify approval by signing and forwarding the recommendation along with supporting documentation to the bureau's executive director or the executive director who is the primary employer of the group or category of employees for review and approval.

(2) The relevant bureau executive director must:

(a) Make an initial determination whether the written recommendation and supporting documentation, submitted by the recommending official, contain sufficient justification for payment of a retention allowance, according to the conditions for payment in 3 FAM 3185.1 and criteria in 3 FAM 3185.2. Recommendations not certified by the bureau executive director or other authorized official will not receive further consideration; and

(b) Certify, if the responsible bureau executive director agrees with the recommending official, support for the proposed retention allowance and forwards the request to CGFS for concurrence or non concurrence;

(3) CGFS forwards the request along with its recommendation to the Director General of the Foreign Service and Director of Human Resources for review and consideration.

(4) The Director General of the Foreign Service, based upon the documentation provided, will determine the appropriate course of action. Consideration will be given to the merits of the request based on such factors as those specified under conditions and criteria for payment of retention allowances in 3 FAM 3185.1 and associated costs in 3 FAM 3185.2. The Director General of the Foreign Service may, for example, approve payment of allowance and return the request without further consideration, establish a working group to further study the issue, and/or recommend to the Under Secretary for Management an appropriate course of action. If the recommendation is approved, the procedures outlined in the retention plan will be used to implement retention allowances for the applicable group or category of employees.

(5) Retention allowances are effective at the beginning of a pay period. However, the effective date of the retention allowance shall be no sooner than the first full pay period following the date of approval by the Director General of the Foreign Service or designee. The not-to-exceed date of the allowance shall not exceed one-year, unless a shorter period is approved. (For example: If the effective date of the personnel action is January 9, 2001, the not-to-exceed date of the allowance would be January 8, 2001.) The not-to-exceed dates of retention allowances must be tracked closely, since they are not required on the personnel action.

3 FAM 3185.5 Evaluation, Reauthorization, Reduction, and Termination of Retention Allowances

(CT:PER-878; 09-08-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

a. At the time an increase in one or more non-discretionary continuing payments to an employee (i.e., basic pay, locality pay, interim geographic adjustment) causes the employees estimated aggregate compensation (as defined in 5 CFR 530.202) to exceed the aggregate limitation on pay, CGFS must reduce the amount of the retention allowance to the extent necessary to ensure that the aggregate compensation that the employee receives does not exceed the rate then payable for Level I of the Executive Schedule at the end of the calendar year.

b. Except as provided in 3 FAM 3185.5, paragraph a, a retention allowance is a constant percentage throughout the period of time covered by the authorization and/or subsequent reauthorization period. The actual dollar amount of a retention allowance is automatically recalculated whenever there is a change in basic pay and the position for which the allowance was established remains the same. At least, annually, consideration will be given to the impact an employees promotion may have upon a retention allowance.

c. HR/CSHRM must periodically notify bureau executive directors of the requirement to evaluate and reauthorize retention allowances. (HR/RMA performs this function for the Foreign Service.)

d. The executive director must establish internal procedures for monitoring the expiration date of retention allowances and for conducting an annual review (or more often as necessary) to determine whether the conditions which gave rise to the payment of a retention allowance still exist, and that payment is still warranted.

e. Payment of a retention allowance must be reduced or terminated when it is determined that:

(1) A lesser amount (or none at all) would be sufficient to retain the employee;

(2) Labor market factors make it more likely to recruit a candidate with qualifications similar to those possessed by the employee;

(3) The Departments need for the services of the employee has been reduced to a level that makes it unnecessary to continue payment at the level originally approved (or unnecessary to continue payment at all);

(4) Budgetary considerations make it difficult to continue payment at the level originally approved (or difficult to continue payment at all);

(5) The employee leaves the position for which the retention allowance was authorized;

(6) The employees performance falls below the Fully Successful level; or

(7) The period initially authorized for payment of a retention allowance has expired and no approval has been granted to continue the payment.

f. To reauthorize payment of a retention allowance, the recommending official must prepare a new written recommendation for the applicable bureau executive director regarding continuance, termination, or adjustment of the original retention allowance.

g. When it is determined that the percentage of a retention allowance will not change or will increase and/or be reduced from a percentage previously approved, the recommendation to continue and/or to change the amount of the allowance must be approved prior to the expiration date of the allowance in accordance with 3 FAM 3185.5 and 3185.6.

h. When it is determined that the retention allowance is no longer warranted and will be terminated, the bureau executive director must notify the employee and direct that the paperwork be processed in accordance with 3 FAM 3185.6, paragraph (1). (HR/RMA performs this function for the Foreign Service.)

i. The reduction or termination of a retention allowance may not be appealed. However, this does not alter an individuals rights or remedy under 5 U.S.C., Chapter 12, or any of the laws referred to in 5 U.S.C. 2302(d).

3 FAM 3185.6 Processing a Reauthorization, Reduction, or Termination of a Retention Allowance

(CT:PER-878; 09-08-2017)
(State Only)
(Applies to Foreign Service and Civil Service Employees)

In processing a reauthorization, reduction, or termination of a retention allowance the following procedures are used:

(1) If the reauthorization of the retention allowance is not approved, the retention allowance is terminated on the last day of the pay period that precedes the expiration or not-to-exceed date of the allowance:

(a) The Executive Director must:

(1) Notify the employee of the decision;

(2) Direct the preparation of Form SF-52, Request for Personnel Action, terminating the retention allowance in accordance with the Office of Personnel Managements Guide to Processing Personnel Actions, Chapter 17; and

(3) Notify CGFS, in writing, of the effective date of the termination once notice of the decision is received from HR;

(b) If the reauthorization of the retention allowance is approved at the same percentage, no personnel action (Form SF-52) is required. The HR component or other organization delegated the responsibility maintains a copy of the authorization and forwards a copy to the executive director and HR/EX/Records Management for filing on the temporary (left-hand side) of the employees official personnel folder;

(2) If a reduction in the retention allowance is authorized, HR/CSHRM notifies the executive director who must:

(a) Notify the employee;

(b) Direct the preparation of Form SF-52, Request for Personnel Action, reducing the retention allowance in accordance with 3 FAM 3185.5, paragraphs e and g; and

(c) Notify CGFS in writing of the effective date of the personnel action. The effective date of the personnel action is set in the same manner as outlined in 3 FAM 3185.4-1, paragraph d(2), unless the approving official establishes an earlier date (HR/RMA performs this responsibility for the Foreign Service.);

(3) If the reauthorization and the retention allowance are approved at a higher percentage, a personnel action (Form SF-52) is required. The increase in the allowance is effective in the same manner as outlined in 3 FAM 3185.4-1, paragraph d(2);

(4) If the reauthorization is not approved prior to the last day of the last full pay period before the expiration date of the initial approval, HR terminates payment of the allowance by processing a Form SF-52, Request for Personnel Action, and notifies CGFS of the effective date of the personnel action; and

(5) If the retention allowance is reduced or terminated prior to the end of the period for which it was initially authorized, written notice must be provided to the employee by HR, at least, two weeks prior to the effective date of the reduction or termination. See 3 FAM Exhibit 3180.2 for a sample of the notice.

3 FAM 3186 THROUGH 3189 UNASSIGNED