The House has joined the Senate in passing a VA policy bill (S-423) that among other things prohibits use of “critical skills incentive” pay authorized under the 2022 PACT Act to pay awards to SES members at VA headquarters. Image: woodsnorthphoto/Shutterstock.com
By: FEDweek StaffBoth the OPM and Congress have focused recently on issues related to cash payments to employees at the VA, the former relating to a years-old controversy over the department paying bonuses to executives and other high-level employees even amid revelations of under-reported waiting time for veterans to receive appointments.
Rules in the July 25 Federal Register arose from a 2017 law that authorized the department to claw back part of all of bonuses if it is later determined the employee had engaged in misconduct or poor performance that, if known at the time, would have prevented the payment.
That law also allowed the VA to recoup relocation payments if it is later determined that an act of fraud or malfeasance by the employee had influenced the authorization of the expenses.
The rules address procedures for an affected employee to appeal such clawbacks to OPM, while leaving for the FLRA to decide whether employees might also be able to challenge them through negotiated grievance procedures.
That same law also authorized the department to reduce retirement benefits of employees convicted of certain crimes and removed for performance or misconduct, by not having the covered period count as creditable service in the calculation. OPM said that appeals of such actions will be addressed in future rules.
Meanwhile, the House has joined the Senate in passing a VA policy bill (S-423) that among other things prohibits use of “critical skills incentive” pay authorized under the 2022 PACT Act to pay awards to SES members at VA headquarters. The bill now goes to President Trump for expected signature.
That language was added to the larger measure from a separate bill in response to a 2023 IG report finding that executives had received $11 million intended for rank-and-file employees to help carry out that law, which expanded eligibility for benefits related to exposure to toxins while in the military.
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See also,
How Do Age and Years of Service Impact My Federal Retirement
The Best Ages for Federal Employees to Retire
FERS Retirement Guide 2025 – Your Roadmap to Maximizing Federal Retirement Benefits
