**MINERALS MANAGEMENT SERVICE**

**INTERIM POLICY DOCUMENT**

**Effective Date:** March 21, 2008

**IPD No.:** 08-07

**Series:** Administrative

**Title:** Individual Retention Incentives

**Originating Office:** Human Resources Division, Administration and
Budget

**1. Purpose**

A. The purpose of this Interim Policy Document (IPD) is to identify the
authorities for recommending and approving individual retention
incentives within the Minerals Management Service (MMS).

B. This IPD establishes requirements, procedures, and limitations for
requesting individual retention incentives; and terminating retention
incentives and service agreements.

**2. Objective.** To ensure consistency in the application of individual
retention incentives throughout the MMS, and to ensure that records are
prepared and maintained as required for review.

**3. Authority.** Departmental Personnel Bulletin No. 06-01 dated
October 31, 2005, Subject: Departmental Policy on Recruitment,
Relocation, and Retention Incentives, and Title 5, Code of Federal
Regulations (5 CFR) 575.

**4. Scope.**

A. Covered employees. Employees in the following categories of positions
are eligible for incentives: (Note: An agency may not include an
employee in a senior-level or scientific or professional, Senior
Executive Service, or Executive Schedule position, or in certain other
senior positions, in a group retention incentive authorization. (See 5
CFR 575.315(a)(2) and 5 CFR 575.305(c)).)

\(1\) A GS position paid under 5 U.S.C. 5332 or 5305 (or similar special
rate authority);

\(2\) A senior-level (SL) or scientific or professional (ST) position
paid under 5 U.S.C. 5376;

\(3\) A Senior Executive Service (SES) position paid under 5 U.S.C.
5383;

\(4\) A position as a law enforcement officer, as defined in 5 C.F.R.
550.103;

\(5\) A position under the Executive Schedule paid under 5 U.S.C.
5311-5317 or a position the rate of pay for which is fixed by law at a
rate equal to a rate for the Executive Schedule; and

\(6\) A prevailing rate position, as defined in 5 U.S.C. 5342(a)(3).

B. Employees not covered. The payment of incentives is prohibited by 5
U.S.C. 5753(a)(2) and 5754(a)(2) to employees in:

\(1\) A position to which an individual is appointed by the President,
by and with the advice and consent of the Senate;

\(2\) A position in the SES as a non-career appointee (as defined in 5
U.S.C. 3132(a)(7);

\(3\) A position excepted from the competitive service by reason of its
confidential, policy-determining, policy-making, or policy-advocating
character; and

\(4\) A position to which an individual is appointed by the President
without the advice and consent of the Senate.

**5. Policy.** It is the policy of MMS to approve individual retention
incentives based on the unusually high or unique qualifications of the
employee or a special need of the bureau for the employee's services
which make it essential to retain the employee, and acceptable
documentation that, in the absence of such an incentive, the employee
would be likely to leave Federal service.

The total amount of a retention incentive cannot exceed 25 percent of an
employee's annual rate of basic pay, including any locality payments.
Payment of a retention incentive will be made in biweekly installments,
thus no length of service agreement will be required. There is no
special fund for retention incentive payments---they must be calculated
in the organization's budget.

**6. Responsibilities.**

A. The recommending official for the incentive must be at least one
level higher than the supervisor of the employee identified to receive
the retention incentive. When a single employee is identified to receive
the retention incentive and there are similarly situated employees
(employees under the same supervisor and occupying the same position
description), the recommending official must address the basis for
recommending that employee over any others.

If the retention incentive is approved, the recommending official will
also, no later than each anniversary of the submission of the
recommendation, review the documentation supporting the recommendation
and certify in writing to the servicing Human Resources Office (SHRO)
that all of the circumstances supporting the recommendation still remain
in effect. The requirement for this annual review remains in effect for
the duration of the retention incentive. Failure to provide a timely
review may result in termination of the retention incentive.

B. The SHRO is responsible for determining whether an employee meets the
statutory and regulatory requirements for receiving an incentive. The
SHRO is also responsible for establishing and maintaining files
containing the justification for each issuance of a retention incentive.
Documentation shall be available for review and analysis upon request by
the Department or the Office of Personnel Management (OPM). The SHRO
will maintain records reflecting the following information:

\(1\) The number of retention incentives offered and the number
accepted;

\(2\) The percentage of salary offered and accepted in each individual
case; and

\(3\) A summary statement assessing the effect of the incentive
authority on the ability to retain the services of employees (this must
be addressed by the recommending official in the written
recommendation).

The SHRO will also maintain a listing of employees on retention
incentives including, at a minimum, the employee's name, organization,
recommending official, and amount of the retention incentive. This must
be reviewed periodically to ensure that annual reviews are submitted by
the recommending officials

C. The Director, MMS, retains the authority to approve incentive
payments. As necessary (if the employee reports directly to the
Director), the request will be forwarded to the Assistant Secretary,
Land and Minerals Management, for approval.

D. The Executive Resources Board (ERB) approves retention incentives for
all employees occupying positions in the SES, SL, and ST categories.
Requests for payment of an incentive for employees at this level must be
submitted to the Chair of the ERB through the Assistant Secretary, Land
and Minerals Management.

**7. Procedures.**

A. The recommending official must prepare the documentation supporting
the recommendation for a retention incentive, taking into account the
factors noted below under criteria for payment. A checklist identifying
the required contents for a written recommendation is attached to this
IPD.

B. Criteria for payment.

\(1\) The employee's current performance appraisal must be at least
Level 3---Fully Successful and his /her performance must remain at least
at that level throughout the period of service under the retention
incentive.

\(2\) Each retention incentive will be based on a written determination
that the unusually high or unique qualifications of the employee---or a
special need of the organization for the employee's services---makes it
essential to retain the employee. The written determination will
describe the extent to which the employee's departure would affect the
organization's ability to carry out an activity or perform a function
essential to its mission, citing specific anticipated consequences
(i.e., impact on a particular program). The written determination must
also show that, in the absence of a retention incentive, the employee
would be likely to leave Federal service. That likelihood must be
supported by documentation such as a bona fide written offer of
employment from a company or other non-Federal entity, or a market
survey or area wage survey. In determining whether a retention incentive
should be paid, and the amount of such payment, the following factors
must be considered:

\(a\) The outcome of recent efforts to recruit candidates and retain
employees with qualifications similar to those of the employee for
positions similar to the employee's position; and

\(b\) The availability in the labor market of candidates for employment
who could, after a reasonable orientation period (90 days) perform the
full range of duties and responsibilities assigned to the position held
by the employee.

C. Requests for approval of retention incentives will be forwarded via
the SHRO to the Chief, Human Resources Division for referral to the
Director.

D. The Director's approval or disapproval will be returned to the
recommending official through the same chain of custody. As noted above,
if necessary the recommendation will be forwarded to the Assistant
Secretary, Land and Minerals Management, for approval.

E. Payment of Retention Incentive.

\(1\) The employee's special rate or locality rate of pay, as
applicable, will be used to compute retention incentives. The rate of
basic pay excludes additional pay of any other kind, including
night-shift differentials under 5 U.S.C. 5343(f) or environmental
differentials under 5 U.S.C. 5343(c)(4) for Federal Wage System
employees. Retention incentives are not considered part of basic pay for
any purpose. They are subject to the aggregate limitation on pay under 5
U.S.C. 5307 and 5 C.F.R Part 530, Subpart B.

\(2\) Under 5 C.F.R 575.109(b) and 575.209(b)(1) the total amount of
incentive payments (for recruitment, relocation and/or retention)
received by an employee in a service period may not exceed 25 percent of
an employee's annual rate of basic pay, including any special rate or
locality payment, multiplied by the number of years, or fractions of a
year, in a service period.

\(3\) Payment of a retention incentive will be made in biweekly
installments with no length of service agreement required.

F. Reduction or Termination of Retention Incentive.

An organization may unilaterally terminate a retention incentive based
on the management needs of the office. The official terminating a
retention incentive may be at a lower organizational level than the
Director, but must be in the approving managerial hierarchy of the
organization. In such a case, the SHRO must be advised prior to the
termination.

A retention incentive must be reduced or terminated whenever payment at
the original level is no longer warranted. The retention incentive must
be terminated if the employee is demoted or separated for performance or
conduct reasons, if the employee receives a rating of record lower than
Level 3---Fully Successful, or if the organization reassigns the
employee to a different position which does not warrant a retention
incentive.

Termination or reduction of a retention incentive is not grieve-able or
appeal-able under any law or regulation.

G. Program Oversight and Evaluation.

Review of the use of retention, recruitment, and relocation incentives
will be included in MMS internal personnel management evaluation
programs. This review shall be accomplished at least annually and the
results made available upon request.

**8. Cancellation**. This IPD will remain in effect until incorporated
into the MMS Manual, canceled, or superseded with another IPD.

Robert E. Brown

Associate Director for

Administration and Budget

Attachment

**Attachment**

**MINERALS MANAGEMENT SERVICE**

**INDIVIDUAL RETENTION INCENTIVE CHECKLIST**

**Recommending officials must insure the following steps are taken when
considering a retention incentive for an employee within their
organizations. The documentation supporting a recommendation will be
made available for review and analysis upon request by MMS HR, EEO, DOI
and OPM.**

[Step 1]{.underline}.

Confirm that the employee has a bona fide written offer of employment
from a company or other non-federal entity, market survey or area wage
survey, and attach a copy to the recommendation.

[Step 2.]{.underline}

Prepare a written recommendation addressing the following:

\(a\) The extent to which the employee's departure would affect the
organization's ability to carry out an activity or perform a function
essential to its mission.

\(b\) The unique qualifications or circumstances of the individual
recommended for the retention incentive.

\(c\) The availability in the local labor market of candidates for
employment who could, after a reasonable orientation period (90 days),
perform the full range of duties and responsibilities assigned to the
position held by the employee. Attach a copy of the supporting
documentation.

\(d\) The likelihood that, in the absence of a retention incentive, the
employee would most likely leave Federal service, and the basis for this
conclusion (e.g., the firm job offer and any statements made by the
employee).

\(e\) The outcome of recent efforts to recruit candidates and retain
employees with qualifications similar to those of the employee for
positions similar to the employee's position;

[Step 3.]{.underline}

Forward the recommendation through the servicing Human Resources Office
to the Chief, Human Resources Division for the signature of the
Director.