§ 575.209 Payment of relocation incentives

5 CFR 575.209(a)(a) An authorized agency official must establish the criteria for determining the amount of a relocation incentive. An agency may pay a relocation incentive—

5 CFR 575.209(a)(1)(1) As an initial lump-sum payment at the commencement of the service period required by the service agreement;

5 CFR 575.209(a)(2)(2) In installments throughout the service period required by the service agreement;

5 CFR 575.209(a)(3)(3) As a final lump-sum payment upon the completion of the full service period required by the service agreement; or

5 CFR 575.209(a)(4)(4) In a combination of these payment methods.

5 CFR 575.209(b)(1)(b)(1) Except as provided in paragraph (c) of this section, the total amount of relocation incentive payments paid to an employee in a service period may not exceed 25 percent of the annual rate of basic pay of the employee at the beginning of the service period multiplied by the number of years (including fractions of a year) in the service period (not to exceed 4 years).

5 CFR 575.209(b)(2)(2) For hourly rate employees who do not have a scheduled annual rate of basic pay, compute the annual rate required for paragraph (b)(1) of this section by multiplying the applicable hourly rate in effect at the beginning of the service period by 2,087 hours.

5 CFR 575.209(b)(3)(3) For the purpose of determining the number of years in a service period under paragraph (b)(1) of this section, divide the total number of calendar days in the service period (as established under § 575.208) by 365 and round 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.

5 CFR 575.209(c)(1)(c)(1) An authorized agency official may waive the limitation in paragraph (b)(1) of this section for an employee (or group of employees, if the case-by-case determination is waived under the conditions in § 575.208(b)) based on a critical agency need. The authorized agency official must determine that the competencies required for the position are critical to the successful accomplishment of an important agency mission, project, or initiative (e.g., programs or projects related to a national emergency or implementing a new law or critical management initiative). Under such a waiver, the total amount of relocation incentive payments paid to an employee in a service period may not exceed 50 percent of the annual rate of basic pay of the employee at the beginning of the service period multiplied by the number of years (including fractions of a year) in the service period. However, in no event may a waiver provide total relocation incentive payments exceeding 100 percent of the employee's annual rate of basic pay at the beginning of the service period.

5 CFR 575.209(c)(2)(2) Waiver determinations must be in writing and include—

5 CFR 575.209(c)(2)(i)(i) A description of the critical agency need the relocation incentive would address;

5 CFR 575.209(c)(2)(ii)(ii) The documentation required by § 575.208; and

5 CFR 575.209(c)(2)(iii)(iii) Any other information pertinent to the case at hand.

5 CFR 575.209(d)(d) A relocation incentive is not part of an employee's rate of basic pay for any purpose.

5 CFR 575.209(e)(e) Payment of a relocation incentive is subject to the aggregate limitation on pay under 5 CFR part 530, subpart B.