[Material Transmitted]{.underline}:

HHS Instruction 575-1, Recruitment and Relocation

Bonuses, Retention Allowances,

and Supervisory Differentials

[Material Superseded:]{.underline}

None

[Background:]{.underline}

This is the first Instruction to be published on the subjects of
recruitment and relocation bonuses, retention allowances, and
supervisory differentials, based on Sections 302 and 404 of the Federal
Employees Pay Comparability Act of 1990 (5 U.S. Code 5753, 5 U.S. Code
5754, 5 U.S. Code 5755, and 5 CFR, Part 575).

This Instruction is streamlined in accordance with National Performance
Review recommendations, and is in support of HHS administrative
initiatives calling for more streamlined rules and greater delegations
of authority.

Any reference to \"OPDIV\" in this Instruction now includes AHCPR,
ATSDR, CDC , FDA , HRSA , IHS, NIH, SAMHSA , the Office of the
Secretary, the Program Support Center, HCFA, ACF, and AOA.

This issuance is effective immediately. Implementation under this
issuance must be carried out in accordance with applicable laws,
regulations, and bargaining agreements.

[Filing Instructions:]{.underline}

File new material. Post receipt of this transmittal to the HHS Check
List of Transmittals and file this transmittal in sequential order after
the check list.

> John J. Callahan
>
> Assistant Secretary for
>
> Management and Budget

INSTRUCTION 575-1

Distribution: MS (PERS): HRFC-001

HHS Instruction 575-1 - Exhibit A

DELEGATION OF AUTHORITY TO APPROVE RECRUITMENT AND RELOCATION BONUSES,
RETENTION ALLOWANCES, AND SUPERVISORY DIFFERENTIALS, AND WAIVE
EMPLOYMENT SERVICE AGREEMENTS CONNECTED WITH RECRUITMENT AND RELOCATION
BONUSES

A.  [Authority Delegated]{.underline}

    1.  I hereby delegate to the Heads of Operating Divisions (OPDIVs)
        and Staff Divisions (STAFFDIVs) the authority to:

        a.  Approve a recruitment bonus of up to 25 percent of basic pay
            to an employee who is newly appointed to a position covered
            by 5 CFR 575a.

        b.  Approve a relocation bonus of up to 25 percent of basic pay
            for an employee covered by 5 CFR 575b who must relocate to
            accept a position if the organization would be likely, in
            the absence of such a bonus, to encounter difficulty in
            filling the position with a high quality candidate.

        c.  Approve a retention allowance of up to 25 percent of basic
            pay to a current employee covered by 5 CFR 575c if 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, and the
            organization determines that the employee would be likely to
            leave in the absence of a retention allowance.

        d.  Approve payment of a supervisory differential to an employee
            under the General Schedule who has supervisory
            responsibility for one or more civilian employees not under
            the General Schedule if one or more of the subordinate
            civilian employees would, in the absence of such a
            differential, be paid more than the supervisory employee.

        e.  Approve a request for a waiver of repayment of bonus monies
            on behalf of an employee who involuntarily fails to complete
            the service agreement established in connection with a
            recruitment and relocation bonus.

    2.  These authorities may be redelegate with further redelegations
        authorized.

        Exhibit A (Continued)

    3.  The delegations contained in 1a through c must be authorized in
        conformance with a plan developed by the OPDIV or STAFFDIV. In
        this Department, the minimum plan must consist of the OPM
        regulations and the delegation of authority within the OPDIV or
        STAFFDIV. Approval of actions will generally be at one level
        higher than the recommending official, unless the official with
        approval authority exercises the option for delegated approval
        based on specified criteria as described in the OPM regulations.
        Where the Head of the OPDIV or STAFFDIV is the recommending
        official, the case will be referred to the Assistant Secretary
        for Management and Budget for action. Where the Assistant
        Secretary for Management and Budget is the recommending
        official, the case will be referred to the Deputy Secretary for
        action.

    4.  The authorities delegated in this Instruction must be given
        special attention as part of ongoing human resources assessment
        activities, and findings concerning their use must be included
        in the annual human resources assessment reports required by
        Instruction 273-1.

B.  [Effective Date\
    \
    ]{.underline}This delegation is effective on the date of this
    transmittal.