Bonus Authority the Major Provision

The major provision of the bill expands the use of recruitment or retention payments, which currently can be up to 25 percent of the annual rate of basic pay. Retention allowances would become retention bonuses and the bill raises the limit on both recruitment and retention bonuses to 50 percent of salary and makes them subject to an employment agreement, not to exceed four years. The maximum bonus over four years would be an amount equal to the employee’s annual pay at the start of the service period. The measure also would allow retention bonuses if the agency determines that an employee would likely leave for a different federal position-not just for an outside job as under current policy–in the absence of a bonus. The bonuses could be paid as an initial lump sum, in installments, or as a final lump sum upon the completion of the service period, or in a combination of these forms of payment.