118 STAT. 2308 PUBLIC LAW 108–411—OCT. 30, 2004 ‘‘(1) the unusually high or unique qualifications of the employee or a special need of the agency for the employee’s services makes it essential to retain the employee; and ‘‘(2) the agency determines that, in the absence of a reten tion bonus, the employee would be likely to leave— ‘‘(A) the Federal service; or ‘‘(B) for a different position in the Federal service under conditions described in regulations of the Office. ‘‘(c) The Office may authorize the head of an agency to pay retention bonuses to a group of employees in 1 or more categories of positions in 1 or more geographic areas, subject to the require ments of subsection (b)(1) and regulations prescribed by the Office, if there is a high risk that a significant portion of employees in the group would be likely to leave in the absence of retention bonuses. ‘‘(d)(1) Payment of a retention bonus is contingent upon the employee entering into a written service agreement with the agency to complete a period of employment with the agency. ‘‘(2)(A) The agreement shall include— ‘‘(i) the length of the required service period; ‘‘(ii) the amount of the bonus; ‘‘(iii) the method of payment; and ‘‘(iv) other terms and conditions under which the bonus is payable, subject to the requirements of this section and regulations of the Office. ‘‘(B) The terms and conditions for paying a bonus, as specified in the service agreement, shall include— ‘‘(i) the conditions under which the agreement may be terminated before the agreed upon service period has been com pleted; and ‘‘(ii) the effect of the termination. ‘‘(3)(A) Notwithstanding paragraph (1), a written service agree ment is not required if the agency pays a retention bonus in biweekly installments and sets the installment payment at the full bonus percentage rate established for the employee with no portion of the bonus deferred. ‘‘(B) If an agency pays a retention bonus in accordance with subparagraph (A) and makes a determination to terminate the payments, the agency shall provide written notice to the employee of that determination. Except as provided in regulations of the Office, the employee shall continue to be paid the retention bonus through the end of the pay period in which such written notice is provided. ‘‘(4) A retention bonus for an employee may not be based on any period of such service which is the basis for a recruitment or relocation bonus under section 5753. ‘‘(e)(1) Except as provided in subsection (f), a retention bonus, which shall be stated as a percentage of the employee’s basic pay for the service period associated with the bonus, may not exceed— ‘‘(A) 25 percent of the employee’s basic pay if paid under subsection (b); or ‘‘(B) 10 percent of an employee’s basic pay if paid under subsection (c). ‘‘(2)(A) A retention bonus may be paid to an employee in install ments after completion of specified periods of service or in a single Notices. Contracts.
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