(600)-70 PERSONNEL

\(600\) 70.11 [Pay Setting]{.underline}

70.11.1

70.11.2

70.11.3

70.11.4 [Pay Setting Policy]{.underline} -- Superior Qualifications

Employees entitled to a higher rate of pay under the promotion
provisions of 5 USC 5334 (b) and 5 CFR 531.204 (a) or the grade and pay
retention provisions of 5 USC 5362 and 5363 and 5 CFR 536 will be paid
under those regulations rather than this chapter.

All other pay setting will be determined in accordance with this
section.

1.  [New Appointments]{.underline}.

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a.  A new appointment (first appointment, regardless of tenure, to the
    federal service) will be made at the minimum rate or the first step
    of the grade to which appointed ([5 CFR
    531.203](http://frwebgate.access.gpo.gov/cgi-bin/get-cfr.cgi?TITLE=5&PART=531&SECTION=203&YEAR=2002&TYPE=TEXT))
    except for those new appointments made using the Superior
    Qualifications method described below.

b.  Superior Qualifications Appointment (5 CFR 531.203)

> A superior qualifications appointment (actual salary) is an
> appointment or reappointment made at a rate above the minimum rate of
> the appropriate General Schedule grade because of the superior
> qualifications of the candidate or a special need of the agency for
> the candidate\'s services (5 USC 5333).
>
> Requests for approval of this type of appointment should be initiated
> by the selecting official and forwarded through functional management
> channels for the concurrence of the head of the function.
>
> Once the head of the function concurs, a memo (as described below)
> should be forwarded to the TIGTA Director, Human Resources. The
> Director, Human Resources, after conducting a technical review of the
> request, will forward the request to the AIG, Management Services. The
> AIG, Management Services, will obtain the concurrence of the Inspector
> General on all Superior Qualifications pay setting cases. The
> signature of the AIG, Management Services, will serve as evidence of
> the Inspector General's concurrence.
>
> The memorandum described above should identify the superior
> qualifications of the employee, outlining the experience or education
> relevant to the position to be filled or the quality of the
> candidate's accomplishments. It should discuss any knowledge, skills
> or abilities that the candidate possesses which TIGTA could not
> otherwise obtain.

-   An explanation of prior attempts to fill the vacancy.

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-   A copy of the position description.

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-   The applicant\'s resume, OF-612, or SF-171.

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-   A statement addressing applicant\'s existing pay---consider income
    the candidate would earn in her/her current position or in a
    position for which he/she has a bona fide offer. A bona fide offer
    must be in writing and must contain specific information about the
    current offer of employment. Salary claims must be verified
    (Statement of Earnings or bona fide job offer). In addition to, or
    in lieu of, a current salary or bona fide offer, the Personnel
    Office may contact the Department of Labor to determine the average
    salary for the occupation/location of the position being filled.
    Earnings from outside employment that may be forfeited as a result
    of Federal employment may also be considered.

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-   A citation of the authority for the appointment.

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-   A recommended salary level for the applicant.

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-   A statement detailing the reasons for setting pay using this
    authority instead of, or in addition to, a recruitment bonus:

(a) When making such an appointment the candidate must meet the criteria
    outlined in 5 CFR531.203 (b) (2).

(b) Appointments under this authority must be approved prior to the
    entrance on duty of the candidate.

(c) In all cases, salary must be set within the rate range of the
    position being filled.

(d) All documentation of the Superior Qualifications Appointment will be
    retained by the servicing personnel office in a separate file for
    two years from the effective date of the action.

Once the AIG, Management Services, has secured the concurrence of the
Inspector General, the memorandum will be forwarded by the AIG,
Management Services, to BPD/ARC for processing.

70.11.5 Reserved

70.11.6 Reserved

70.11.7 Reserved

70.11.8 [Retention Allowances]{.underline}.

70.11.8.1 [Nature and Purpose]{.underline}. This section establishes the
procedures for making determinations concerning the payment of retention
allowances. It is the policy of the TIGTA to authorize a retention
allowance when necessary in accordance with statutory and regulatory
criteria for such payment. Coverage is as follows:

[Individual Allowance]{.underline} - A retention allowance is generally
established on a case-by-case basis. TIGTA may pay a retention allowance
of up to 25 percent of basic pay to an [individual]{.underline} employee
(this includes managers) based on a determination that (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 employee would be likely to leave the Federal
Service. Both conditions must be met for an employee to be considered
for a retention allowance.

[Group Allowance]{.underline} - A retention allowance of up to 10
percent of an employee's rate of basic pay may be paid for a [group or
category]{.underline} of employees in certain circumstances (a group
retention allowance of up to 25 percent may also be established with
prior OPM approval). Retention allowances authorized for a category of
employees are based on a determination that (1) the employees have
unusually high or unique qualifications or the agency has a special need
for the employee's services that makes it essential to retain the
employees in that category AND (2) it is reasonable to presume that
there is a high risk that a significant number of employees in the
targeted category are likely to leave the Federal Service in the absence
of a retention allowance. Both conditions must be met for a group of
employees to be considered for retention allowances.

70.11.8.2 []{#Crit .anchor}[Criteria.]{.underline} Each allowance will
be based on written documentation stating the extent to which the
departure will affect the agency's ability to carry out an activity or
perform a function that is deemed essential to its mission. In
determining whether a retention allowance should be paid and in
determining the amount of such payment, the following factors must be
considered:

-   The success of the recent efforts to recruit candidates and retain
    employees with qualifications similar to those possessed by the
    employee(s);

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-   The availability in the labor market of candidates for employment,
    who with minimal training or disruption of service, could perform
    the full range of duties and responsibilities assigned to the
    positions(s) held by the employee(s); and,

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-   Other special or unique needs for the services of the employee(s).

70.11.8.3 [Eligibility.]{.underline} The following factors must apply to
meet eligibility requirements:

-   A retention allowance may be paid to an employee only if the
    employee has completed 60 days of continuous service with TIGTA.

-   An employee must have been in a position requiring the unusually
    high or unique qualification for a period of at least 60 days prior
    to being paid a retention allowance. The Inspector General must
    approve all exceptions to this rule.

-   A "Successful" or equivalent rating on the most recent annual
    performance appraisal is required, and the employee may not be
    serving under an opportunity letter.

70.11.8.4 [Payment Allowance.]{.underline} The following outlines how
allowances are calculated and applied.

-   A retention allowance will be calculated as a percentage of the
    employee's rate of basic pay (not to exceed 25 percent) and paid in
    the same manner and at the same time as basic pay, i.e., the
    allowance will be paid at an hourly rate for each hour during which
    the employee receives basic pay.

-   A retention allowance will not be considered part of the employee's
    rate of basic pay for any purpose.

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-   A retention allowance may not be paid to an employee if, or to the
    extent that, such an allowance, when added to the annual rate of all
    other continuing payments to which the employee is entitled, would
    cause the annual rate to exceed the rate payable for ES level 1.

70.11.8.5 [Required Documentation.]{.underline} The following provides
the required documentation for application of individual and group
allowances.

[Individual allowance]{.underline}

Completion of the Retention Allowance Certification/Recertification Form
and Worksheet (this form can be found in the Word/File/New/Management
Services Tab) including:

-   A written determination that the employee meets the criteria as
    described in [70.11.8.2](#Crit);

-   The proposed retention allowance payment (up to 25 percent) with
    justification for that percentage;

-   The expected duration of the retention allowance.

[Group allowance]{.underline}

Completion of the Retention Allowance Certification/Recertification
Groups or Categories of Employees Form Worksheet (this form can be found
in the Word/File/New/Management Services Tab) including:

-   A description of the category and number of employees to be covered
    by the proposed retention allowance. The employee category should be
    narrowly defined by a combination of factors such as occupational
    series, grade level, duties performed and unique qualifications
    required, whether an organization or a team, geographic location,
    specific project, shift, work schedule or type of appointment;

-   A written determination that the group or category of employees
    meets the criteria for payment of an allowance;

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-   The proposed retention allowance payment (up to 10 percent) and a
    justification for that percentage;

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-   The expected duration of the retention allowance payments.

70.11.8.6 [Approval of Retention Allowance Requests]{.underline}. An
employee's immediate manager will make the determination of eligibility
and recommendation for a retention allowance. Concurrence by the head of
the function (i.e., DIG, AIG, or Chief Counsel) is required.

Once the higher-level official approves, the request will be sent to the
TIGTA Director, Human Resources, who will review the request for
completeness and adherence to the requirements. Once reviewed, the
Director, Human Resources, will forward the request to the Inspector
General through the AIG, Management Services. The Inspector General is
the final approving official for all retention allowances.

Approved retention allowances will be returned to the Director, Human
Resources, who will forward the approved request to the appropriate
functional head to obtain the employee's signature on the Worksheet.
Once the employee signs the Worksheet, the package will be returned to
the Human Resources Director who will submit the action to activate the
retention allowance to BPD/ARC for processing.

Note: The Treasury Assistant Secretary for Management is the approving
official for an individual who is appointed to a non-career SES
position, appointed to a Schedule C position (certain excepted service
positions), or appointed to a position filled by Presidential
appointment except where the Secretary or Deputy Secretary must review.

70.11.8.7 [Certification and Reports.]{.underline} A Retention Allowance
Certification/Recertification form will be completed and approved for
each employee or group of employees. All documentation and
certifications used for payment of retention allowances will be
maintained in the employee's OPF. Reports on retention allowances will
be generated from TIMIS as required.

70.11.8.7.1 [Annual Recertification]{.underline}. The annual retention
allowance period will be aligned with TIGTA's performance rating cycle,
i.e., fiscal year. TIGTA managers will review all existing retention
allowances to determine if conditions still warrant the payment of the
allowances.

If retention allowances are still warranted, the manager must submit a
recertification request for approval. The Retention Allowance
Certification/Recertification form will be used to document the review.
The approval track for the recertification is the same as the original
allowance request. The Director, Human Resources, must receive the
recertification requests by September 25. The intent is to obtain
Inspector General approval of all recertifications by October 1 to allow
first-line managers the opportunity to discuss the retention allowance
with the employee during the annual performance appraisal review.

If retention allowances are no longer warranted, the manager will notify
the Director, Human Resources, who will submit the termination request
to BPD for processing. The reasons for the termination of the retention
allowance will be included in the employee's annual performance
appraisal review.

While new retention allowances may be initiated at anytime as conditions
warrant, all new allowances will end on September 30 of the appropriate
year.

70.11.8.8 [Reduction or Termination of Retention Allowance.]{.underline}
An allowance may be reduced or terminated at any time if a determination
is made by management that a smaller allowance, or none at all, would be
sufficient to retain an employee, or group of employees: Factors to be
considered include:

-   Labor market conditions make it more likely to recruit candidates
    with the needed qualifications;

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-   The need of the services of the employee(s) has been reduced; or

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-   Budgetary considerations make it inappropriate to continue paying
    the allowance.

70.11.8.8.1 [Promotion, Demotion, or Reassignment on Retention
Allowance]{.underline}. When an employee currently receiving a retention
allowance is either permanently reassigned to another position or is
promoted or demoted to another position, the employee's manager will
notify the Director, Human Resources, who will initiate the termination
of the retention allowance with BPD. When an employee is reassigned to
another manager, the employee's prior manager is responsible for
terminating the retention allowance.

Once the employee has served in the new position for a minimum of 60
days, the manager may recommend a new retention allowance be
established. The Inspector General must approve all exceptions to this
rule.

#