[Federal Register Volume 66, Number 140 (Friday, July 20, 2001)]
[Rules and Regulations]
[Pages 37883-37884]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-18034]



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 Rules and Regulations
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  Federal Register / Vol. 66, No. 140 / Friday, July 20, 2001 / Rules 
and Regulations  

[[Page 37883]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 575

RIN 3206-AJ08


Recruitment and Relocation Bonuses and Retention Allowances

AGENCY: Office of Personnel Management.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Office of Personnel Management is issuing final 
regulations to provide agencies with greater flexibility to use 
recruitment and relocation bonuses and retention allowances. These 
regulations will allow agencies to pay recruitment and relocation 
bonuses and retention allowances to prevailing rate (wage) employees.

DATES: These final regulations will become effective on July 20, 2001.

FOR FURTHER INFORMATION CONTACT: Jeanne Jacobson, (202) 606-2858; FAX: 
(202) 606-0824; email: [email protected].

SUPPLEMENTARY INFORMATION: On January 19, 2001, the Office of Personnel 
Management (OPM) published proposed regulations to amend the 
recruitment and relocation bonus and retention allowance regulations in 
5 CFR part 575, subparts A, B, and C, to provide agencies with 
additional flexibility to use these incentives (66 FR 5491). The 
proposed regulations would allow agencies to grant a retention 
allowance to a current employee likely to leave for other Federal 
employment under certain limited circumstances. The proposed 
regulations also would allow agencies to pay recruitment and relocation 
bonuses and retention allowances to an employee in a prevailing rate 
(wage) position, as defined in 5 U.S.C. 5342(a)(3).
    These final regulations contain only those provisions from the 
proposed regulations that allow agencies to pay recruitment and 
relocation bonuses and retention allowances to prevailing rate (wage) 
employees. Comments received from Federal agencies strongly support the 
proposal to allow the payment of recruitment and relocation bonuses and 
retention allowances to wage employees. One agency asked that OPM issue 
the final regulations implementing this authority as quickly as 
possible so that it may use these incentives immediately to help 
address critical recruitment and retention problems. In response to 
these concerns, we are issuing final regulations to allow agencies to 
use recruitment, relocation, and retention payments immediately for 
prevailing rate (wage) positions.
    We received many comments on our proposal to allow agencies to 
grant a retention allowance to a current employee likely to leave for 
other Federal employment under certain circumstances. The commenters 
raised various issues concerning the criteria for paying a retention 
allowance in these circumstances, and additional time is needed to 
consider these issues.

Executive Order 12866, Regulatory Review

    This rule has been reviewed by the Office of Management and Budget 
in accordance with Executive Order 12866.

Regulatory Flexibility Act

    I certify that these regulations will not have a significant 
economic impact on a substantial number of small entities because they 
will apply only to Federal agencies and employees.

Waiver of Delay in Effective Date

    Pursuant to 5 U.S.C. 553(d)(3), I find that good cause exists to 
make these regulations effective in less than 30 days. In their 
comments to OPM, agencies expressed an urgent need to use the 
recruitment and relocation bonus and retention allowance authorities as 
soon as possible to help address serious problems in recruiting and 
retaining prevailing rate (wage) employees. Since use of the 
recruitment and relocation bonus and retention allowance authorities is 
discretionary, waiving the 30-day delay in the effective date of these 
regulations will not place an administrative burden on any Federal 
agency.

List of Subjects in 5 CFR Part 575

    Government employees, Wages.

Office of Personnel Management
Steven R. Cohen,
Acting Director.

    Accordingly, OPM is amending part 575 of title 5, Code of Federal 
Regulations, as follows:

PART 575--RECRUITMENT AND RELOCATION BONUSES; RETENTION ALLOWANCES; 
SUPERVISORY DIFFERENTIALS

    1. The authority citation for part 575 continues to read as 
follows:

    Authority: 5 U.S.C. 1104(a)(2), 5753, 5754, and 5755; secs. 302 
and 404 of the Federal Employees Pay Comparability Act of 1990 
(FEPCA) (Pub. L. 101-509), 104 Stat. 1462 and 1466, respectively; 
E.O. 12748, 3 CFR, 1992 Comp., p. 316.

Subpart A--Recruitment Bonuses

    2. In Sec. 575.102, paragraph (a)(5) is amended by removing ``or''; 
paragraph (a)(6) is amended by removing ``.'' and inserting in its 
place ``; or''; and a new paragraph (a)(7) is added to read as follows:


Sec. 575.102  Delegation of authority.

    (a) * * *
    (7) A prevailing rate position, as defined in 5 U.S.C. 5342(a)(3).
* * * * *

Subpart B--Relocation Bonuses

    3. In Sec. 575.202, paragraph (a)(5) is amended by removing ``or''; 
paragraph (a)(6) is amended by removing ``.'' and inserting in its 
place ``; or''; and a new paragraph (a)(7) is added to read as follows:


Sec. 575.202  Delegation of authority.

    (a) * * *
    (7) A prevailing rate position, as defined in 5 U.S.C. 5342(a)(3).
* * * * *

Subpart C--Retention Allowances

    4. In Sec. 575.302, paragraph (a)(5) is amended by removing ``or''; 
paragraph (a)(6) is amended by removing ``.'' and inserting in its 
place ``; or''; and a new paragraph (a)(7) is added to read as follows:


Sec. 575.302  Delegation of authority.

    (a) * * *

[[Page 37884]]

    (7) A prevailing rate position, as defined in 5 U.S.C. 5342(a)(3).
* * * * *
[FR Doc. 01-18034 Filed 7-19-01; 8:45 am]
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