This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

78243 

Vol. 88, No. 219 

Wednesday, November 15, 2023 

OFFICE OF PERSONNEL 

MANAGEMENT 

5 CFR Part 575 

[Docket ID: OPM–2023–0027] 

RIN 3206–AO36 

Recruitment and Relocation Incentive 

Waivers 

AGENCY: Office of Personnel 

Management. 

ACTION: Proposed rule. 

SUMMARY: The Office of Personnel 

Management (OPM) is issuing a 

proposed rule to expand the authority to 

approve waivers of the normal payment 

limitations on recruitment and 

relocation incentives. An expansion of 

the waiver approval authority would 

provide agencies with access to higher 

payment limitations for these 

flexibilities without requesting approval 

from OPM. Under this proposed rule, 

agencies would have the authority to 

approve a recruitment or relocation 

incentive of up to 50 percent of an 

employee’s annual rate of basic pay 

multiplied by the number of years in a 

service agreement (not to exceed 100 

percent of annual basic pay) based on a 

critical agency need. In addition, this 

proposed rule would give agencies 

flexibility to set the length of the 

required service period for recruitment 

incentives to a period less than 6 

months but not more than 4 years, 

which would align the service 

requirements for recruitment incentives 

with those for relocation incentives and 

provide agencies with additional 

flexibility in taking advantage of this 

incentive as a recruitment tool. 

DATES: Comments must be received on 

or before January 16, 2024. 

ADDRESSES: You may submit comments, 

identified by the Regulation Identifier 

Number (RIN) number ‘‘3206–AO36’’ 

and title, using the following method: 

• Federal Rulemaking Portal: https:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

The general policy for comments and 

other submissions from members of the 

public is to make these submissions 

available for public viewing at https:// 

www.regulations.gov as they are 

received without change, including any 

personal identifiers or contact 

information. 

FOR FURTHER INFORMATION CONTACT: 

Gene Holson by telephone at (202) 606– 

2858 or by email at pay-leave-policy@

opm.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

Section 101 of the Federal Workforce 

Flexibility Act of 2004 (Act) (Pub. L. 

108–411, October 30, 2004) amended 5 

U.S.C. 5753 and 5754 by providing 

enhanced authorities to pay 

recruitment, relocation, and retention 

incentives. Congress originally provided 

the authority to pay such incentives 

under the Federal Employees Pay 

Comparability Act of 1990 (Pub. L. 101– 

509, November 5, 1990). In the 2004 

Act, Congress expanded the 

circumstances under which these 

flexibilities may be paid and enabled 

agencies to make the payments in more 

ways to enhance their desired effect in 

assisting Federal agencies’ efforts to 

recruit and retain the kind of workforce 

needed in the 21st century. OPM’s 

regulations at 5 CFR part 575, subparts 

A, B, and C, implement these 

authorities. This rulemaking proposes 

changes to the recruitment incentive 

regulations at 5 CFR part 575, subpart A, 

and relocation incentive regulations at 5 

CFR part 575, subpart B, to provide 

agencies additional payment options. To 

differentiate these kinds of payments— 

which are designed to provide a 

monetary incentive for an individual to 

accept a new position, as opposed to 

rewarding an individual for quality of 

performance (the typical context in 

which the term ‘‘bonus’’ is used)— 

OPM’s regulations use the term 

‘‘incentive’’ in place of the term 

‘‘bonus,’’ which is used in the statute. 

Recruitment Incentives 

Under 5 U.S.C. 5753 and 5 CFR part 

575, subpart A, an agency may pay a 

recruitment incentive to an employee 

newly appointed to a General Schedule 

or other covered position in the Federal 

service when the agency determines the 

position is likely to be difficult to fill in 

the absence of an incentive. The 

employee must sign an agreement to 

fulfill a period of service with the 

agency. A recruitment incentive may 

not exceed 25 percent of the employee’s 

annual rate of basic pay in effect at the 

beginning of the service period, 

multiplied by the number of years 

(including fractions of a year) in the 

service period (not to exceed 4 years). 

Currently, this cap may be increased to 

up to 50 percent with OPM approval, 

based on a critical agency need, as long 

as the total incentive does not exceed 

100 percent of the employee’s annual 

rate of basic pay. A recruitment 

incentive may be paid as an initial 

lump-sum payment at the beginning of 

the service period, in installments 

throughout the service period, as a final 

lump-sum payment upon completion of 

the service period, or in a combination 

of these methods. (See 5 CFR 575.109.) 

Before paying a recruitment incentive, 

an agency must establish a recruitment 

incentive plan. (See 5 CFR 575.107(a).) 

The plan must include the designation 

of officials with authority to review and 

approve the payment of recruitment 

incentives, the designation of officials 

with authority to waive the repayment 

of a recruitment incentive, the 

categories of employees who may not 

receive recruitment incentives, the 

required documentation for determining 

that a position is likely to be difficult to 

fill, requirements for determining the 

amount of a recruitment incentive, the 

payment methods that may be 

authorized, requirements governing 

service agreements (including criteria 

for determining the length of a service 

period, the conditions for terminating a 

service agreement, and the obligations 

of the agency and the employee if a 

service agreement is terminated), and 

documentation and recordkeeping 

requirements. Unless the head of the 

agency determines otherwise, an agency 

recruitment incentive plan must apply 

uniformly across the agency. (See 5 CFR 

575.107(c).) 

For each determination to pay a 

recruitment incentive, an agency must 

document, in writing, the basis for 

determining that the position is likely to 

be difficult to fill in the absence of a 

recruitment incentive, the amount and 

timing of the incentive payments, and 

the length of the service period. The 

determination to pay a recruitment 

incentive must be made before the 

prospective employee enters on duty in 


ddrumheller on DSK120RN23PROD with PROPOSALS1
78244 Federal Register / Vol. 88, No. 219 / Wednesday, November 15, 2023 / Proposed Rules 

1Office of Personnel Management. ‘‘Fact Sheet: 

Recruitment Incentives.’’ https://www.opm.gov/ 

policy-data-oversight/pay-leave/recruitmentrelocation-retention-incentives/fact-sheets/ 

recruitment-incentives/. 

2Office of Personnel Management. ‘‘Fact Sheet: 

Relocation Incentives.’’ https://www.opm.gov/ 

policy-data-oversight/pay-leave/recruitmentrelocation-retention-incentives/fact-sheets/ 

relocation-incentives/. 

3Office of Personnel Management. ‘‘Fact Sheet: 

Calculating Maximum Recruitment and Relocation 

Incentives for Service Periods of Various Lengths.’’ 

https://www.opm.gov/policy-data-oversight/payleave/recruitment-relocation-retention-incentives/ 

fact-sheets/calculating-maximum-recruitment-andrelocation-incentives-for-service-periods-of-variouslengths/. 

the position for which they are 

recruited. The authorized agency official 

must review and approve the 

recruitment incentive determination 

before the agency pays the incentive to 

the employee. (See 5 CFR 575.107(b), 

575.108.) Payment of a recruitment 

incentive is subject to the aggregate 

limitation on pay under 5 CFR part 530, 

subpart B. (See 5 CFR 575.109(f).) 

An agency may determine that a 

position is likely to be difficult to fill if 

the agency is likely to have difficulty 

recruiting candidates with the 

competencies (i.e., knowledge, skills, 

abilities, behaviors, and other 

characteristics) required for the position 

(or group of positions) in the absence of 

a recruitment incentive based on a 

consideration of the factors listed in 5 

CFR 575.106(b). An agency also may 

determine that a position is likely to be 

difficult to fill if OPM has approved the 

use of a direct-hire authority applicable 

to the position. (See 5 CFR 575.106(c).) 

The use of recruitment incentives can 

help agencies expand applicant pools to 

include more diverse candidates. 

Before receiving a recruitment 

incentive, an employee must sign a 

written agreement to complete a 

specified period of employment with 

the agency of not less than 6 months. 

The service agreement must specify the 

length, commencement date, and 

termination date of the service period; 

the total amount of the incentive; the 

method, timing, and amounts of 

incentive payments; the conditions 

under which an agreement will be 

terminated by the agency; any agency or 

employee obligations if a service 

agreement is terminated (including the 

conditions under which the employee 

must repay an incentive or under which 

the agency must make additional 

payments for partially completed 

service); and any other terms and 

conditions for receiving and retaining a 

recruitment incentive. (See 5 CFR 

575.110.) OPM has provided a fact sheet 

with additional information on 

recruitment incentives.1

Relocation Incentives 

Under 5 U.S.C. 5753 and 5 CFR part 

575, subpart B, an agency may pay a 

relocation incentive to a current 

employee who must relocate to accept a 

General Schedule or other covered 

position in a different geographic area 

(permanently or temporarily) if the 

agency determines that the position is 

likely be difficult to fill in the absence 

of an incentive. (See 5 CFR 575.205(a).) 

A relocation incentive may be paid only 

when the employee’s rating of record 

under an official performance appraisal 

or evaluation system is at least ‘‘Fully 

Successful’’ or equivalent. (See 5 CFR 

575.205(c).) Like a recruitment 

incentive, a relocation incentive may 

not exceed 25 percent of the employee’s 

annual rate of basic pay in effect at the 

beginning of the service period 

multiplied by the number of years 

(including fractions of a year) in the 

service period (not to exceed 4 years). 

With OPM approval, this cap may be 

raised to up to 50 percent (based on a 

critical agency need), as long as the total 

incentive does not exceed 100 percent 

of the employee’s annual rate of basic 

pay at the beginning of the service 

period. The incentive may be paid as an 

initial lump-sum payment at the 

beginning of the service period, in 

installments throughout the service 

period, as a final lump-sum payment 

upon completion of the service period, 

or in a combination of these methods. 

(See 5 CFR 575.209.) 

Before paying a relocation incentive, 

an agency must establish a relocation 

incentive plan. A relocation incentive 

plan must generally address the same 

information required in a recruitment 

incentive plan, as described above. (See 

5 CFR 575.207.) 

For each relocation incentive 

authorized, an agency must document 

in writing the justification for approving 

the incentive that addresses factors 

similar to those needed for recruitment 

incentive authorizations, as described 

above. The agency must also document 

that the worksite of the new position is 

in a different geographic area than the 

previous position. The determination to 

pay a relocation incentive must be made 

before the employee enters on duty in 

the position at the new duty station. The 

authorized agency official must review 

and approve the relocation incentive 

determination before the agency pays 

the incentive to the employee. (See 5 

CFR 575.207(b), 575.208.) Agency 

determinations to pay a relocation 

incentive must generally be made on a 

case-by-case basis. (See 5 CFR 575.208.) 

Payment of a relocation incentive is 

subject to the aggregate limitation on 

pay under 5 CFR part 530, subpart B. 

(See 5 CFR 575.209(e).) 

The factors an agency may consider in 

determining that the new position is 

likely to be difficult to fill in the 

absence of a relocation incentive are 

also similar to those that may be 

considered for recruitment incentives. 

(See 5 CFR 575.206(b).) The use of 

relocation incentives can help agencies 

expand applicant pools to include more 

diverse candidates. Before receiving a 

relocation incentive, an employee must 

sign a written agreement to complete a 

specified period of employment with 

the agency at the new duty station (not 

to exceed 4 years). The relocation 

incentive service agreement 

requirements and payment termination 

provisions are consistent with those 

required for recruitment incentives, 

except there is no minimum service 

period required. (See 5 CFR 575.210 and 

575.211.) OPM has provided a fact sheet 

with additional information on 

relocation incentives.2

Recruitment and Relocation Incentive 

Waivers 

Agencies currently have the authority 

to approve a recruitment or relocation 

incentive without OPM approval for 

payments of up to 25 percent of an 

employee’s annual rate of basic pay 

times the number of years in a service 

agreement (not to exceed 4 years or 100 

percent of annual basic pay). However, 

OPM approval is required when an 

agency would like to exceed this 

payment limit to make larger payments 

over shorter service agreement lengths. 

Under a recruitment or relocation 

incentive waiver, agencies can approve 

a recruitment or relocation incentive of 

up to 50 percent of an employee’s 

annual rate of basic pay times the 

number of years in a service agreement 

(not to exceed 100 percent of annual 

basic pay). (See 5 CFR 575.109(c) and 

575.209(c).) 

For example, an OPM waiver is not 

required for an agency to pay a 

recruitment or relocation incentive of 

up to 25 percent of annual basic pay for 

a 1-year service agreement, 50 percent of 

basic pay for a 2-year service agreement, 

or 100 percent of basic pay for a 4-year 

service agreement. An OPM waiver 

currently is required for an agency to 

pay a recruitment or relocation 

incentive of 50 percent of annual basic 

pay for a 1-year service agreement or 

100 percent of annual basic pay for a 2- 

year service agreement. OPM has 

provided a fact sheet on calculating 

maximum recruitment and relocation 

incentives for service periods of various 

lengths.3


ddrumheller on DSK120RN23PROD with PROPOSALS1
Federal Register / Vol. 88, No. 219 / Wednesday, November 15, 2023 / Proposed Rules 78245 

4Office of Personnel Management. ‘‘Recruitment 

Incentive Waiver Template.’’ https://www.opm.gov/ 

policy-data-oversight/pay-leave/recruitmentrelocation-retention-incentives/fact-sheets/ 

recruitment-incentive-waiver-template.pdf. 

5Office of Personnel Management. ‘‘Relocation 

Incentive Waiver Template.’’ https://www.opm.gov/ 

policy-data-oversight/pay-leave/recruitmentrelocation-retention-incentives/fact-sheets/ 

relocation-incentive-waiver-template.pdf. 

6Office of Personnel Management. ‘‘Strategic Plan 

Fiscal Years 2022–2026.’’ https://www.opm.gov/ 

about-us/strategic-plan/03454-fy2022-2026- 

strategicplan-lookbook-508pdf.pdf. 

7National Academy of Public Administration. 

‘‘Elevating Human Capital: Reframing the U.S. 

Office of Personnel Management’s Leadership 

Imperative’’ https://www.volckeralliance.org/sites/ 

default/files/attachments/OPM-Final-ReportNational-Academy-of-Public-Administration.pdf. 

A waiver request must include a 

description of the critical agency need 

the proposed recruitment or relocation 

incentive would address. The 

authorized agency official must 

determine that the competencies 

required for the position(s) are critical to 

the successful accomplishment of an 

important agency mission, project, or 

initiative (e.g., programs or projects 

related to a national emergency or 

implementing a new law or critical 

management initiative). To assist 

agencies in developing waiver requests, 

OPM has provided waiver request 

templates for recruitment incentives 4

and relocation incentives.5

The law, 5 U.S.C. 5754, does not 

permit the expansion of the waiver 

authority for retention incentives found 

at 5 CFR part 575, subpart C. Therefore, 

retention incentives are not included in 

this proposed rule. 

Proposed Changes to Recruitment 

Incentive Rules 

In 5 CFR part 575, subpart A, OPM is 

proposing to amend the current 

regulations as follows: 

• Revise 5 CFR 575.106(a)(4) to 

provide an authorized agency official 

with sole and exclusive discretion, 

subject only to OPM review and 

oversight, to waive the limitation on the 

maximum amount of a recruitment 

incentive under 5 CFR 575.109(c). 

• Require agencies at proposed 5 CFR 

575.107(a) to designate the officials with 

authority to waive the recruitment 

incentive payment limitation in their 

recruitment incentive plans. 

• Amend the incentive approval level 

provisions in 5 CFR 575.107(b)(1) to 

state that if a determination to pay a 

recruitment incentive includes a waiver 

of the payment limitation under 5 CFR 

575.109(c), the official who is 

designated in the agency’s plan under 5 

CFR 575.107(a) must approve the 

determination. 

• Revise 5 CFR 575.107(b)(2) to state 

that when necessary to make a timely 

offer of employment, an authorized 

agency official may authorize an official 

who is not lower than a candidate’s 

supervisor to offer a recruitment 

incentive to a candidate without further 

review or approval in any amount 

within a pre-established range up to the 

normal payment limitation in 5 CFR 

575.109(b) or a higher cap if the agency 

has approved a waiver to the normal 

payment limitation under 5 CFR 

575.109(c). 

• Amend 5 CFR 575.109(c)(1) to 

provide the conditions under which an 

authorized agency official would be able 

to waive the payment limitation in 5 

CFR 575.109(b) for an employee or 

group of employees based on a critical 

agency need. 

• Require in proposed 5 CFR 

575.109(c)(2) that waiver determinations 

be made in writing. 

• Delete 5 CFR 575.109(c)(2)(iii)–(v) 

to eliminate redundancy because those 

requirements are covered by 5 CFR 

575.109(c)(2)(ii). 

• Amend 5 CFR 575.110(a) to remove 

the minimum 6-month required service 

period for recruitment incentives. Under 

the proposed rule, a recruitment 

incentive service agreement could be 

any length up to 4 years, consistent with 

the current allowable service agreement 

lengths for relocation incentives. For 

example, this would allow an agency to 

determine that a summer internship 

position is likely to be difficult to fill 

and authorize a recruitment incentive 

for an intern with a 3-month service 

agreement. 

Proposed Changes to Relocation 

Incentive Rules 

In 5 CFR part 575, subpart B, OPM is 

proposing to amend the current 

regulations as follows: 

• Revise 5 CFR 575.206(a)(4) to 

provide an authorized agency official 

with sole and exclusive discretion, 

subject only to OPM review and 

oversight, to waive the limitation on the 

maximum amount of a relocation 

incentive under 5 CFR 575.209(c). 

• Require agencies at proposed 5 CFR 

575.207(a) to designate the officials with 

authority to waive the relocation 

incentive payment limitation in their 

relocation incentive plans. 

• Amend 5 CFR 575.207(b)(1) to state 

that if a determination to pay a 

relocation incentive includes a waiver 

of the payment limitation under 5 CFR 

575.209(c), the official who is 

designated in the agency’s plan under 5 

CFR 575.207(a) must approve the 

determination. 

• Revise 5 CFR 575.209(c)(1) to 

provide the conditions under which an 

authorized agency official may waive 

the payment limitation in 5 CFR 

575.209(b) for an individual or group of 

employees based on a critical agency 

need. 

• Require in proposed 5 CFR 

575.209(c)(2) that waiver determinations 

be made in writing. 

• Delete 5 CFR 575.209(c)(2)(iii)–(v) 

to eliminate redundancy because those 

requirements are covered by 5 CFR 

575.209(c)(2)(ii). 

Other Changes 

OPM is proposing to revise several 

sections to use gender neutral language. 

These changes are contained at 5 CFR 

575.102, 5 CFR 575.110(f), 5 CFR 

575.111(e), 5 CFR 575.111(f), 5 CFR 

575.210(f), 5 CFR 575.211(e), and 5 CFR 

575.211(f). 

Expected Impact of This Proposed Rule 

A. Statement of Need 

OPM serves as the chief human 

resources agency and personnel policy 

manager for the Federal Government. 

OPM provides human resources 

leadership and support to Federal 

agencies and helps the Federal 

workforce achieve their goals as they 

serve the American people. OPM 

oversees merit-based and inclusive 

hiring into the civil service, directs 

human resources and employee 

management services, administers 

retirement benefits, manages health 

insurance and insurance programs, and 

manages personnel vetting policies and 

processes. 

As noted in OPM’s FY 2022–2026 

Strategic Plan,6 ‘‘We will promote a 

diverse, equitable, inclusive, and 

accessible Federal workforce based on 

merit; develop a strategic vision for the 

Federal Government to prepare for the 

future of work; support Federal agencies 

to attract early career talent; and equip 

current and future Federal workers with 

the ability to build new skills over time 

to adapt to a rapidly changing world.’’ 

In its March 2021 report,7 the 

National Academy of Public 

Administration (NAPA) recommended 

that OPM adopt a more decentralized 

and risk-based approach to executing its 

transactional approval and oversight 

responsibilities. Specifically, NAPA 

recommended that OPM delegate, to the 

maximum extent possible, decisionmaking authorities to agencies, and 

conduct cyclical reviews to verify that 

appropriate actions were taken. NAPA’s 

Rec. 2.5 was incorporated into OPM’s 

Strategic Plan as Objective 4.2, which 

reads as follows: ‘‘Increase focus on 

Governmentwide policy work by 


ddrumheller on DSK120RN23PROD with PROPOSALS1
78246 Federal Register / Vol. 88, No. 219 / Wednesday, November 15, 2023 / Proposed Rules 

8 70 FR 25732, May 13, 2005. 

shifting more low-risk delegations of 

authorities to agencies.’’ Further, 

Objective 4.6 is to streamline Federal 

human capital regulations and guidance 

to reduce administrative burden and 

promote innovation while upholding 

merit system principles. 

Permitting agencies to review and 

approve payment limit waivers at the 

agency level will reduce administrative 

burden on agencies and increase the 

efficiency of using recruitment and 

relocation incentives. This will allow 

agencies to move more quickly in hiring 

new employees and relocating those 

who are moving into positions that are 

likely to be difficult to fill. Such 

efficiency could be especially helpful in 

emergency or other critical situations in 

which recruiting new employees or 

relocating current employees rapidly is 

necessary. Also, with increases in the 

number of retirement-eligible 

employees, recruiting early career and 

experienced talent to the Federal 

workforce is a high priority. Using 

recruitment incentives can be a useful 

tool in achieving this goal. 

B. Impact 

It is important to understand that 

waivers to the normal payment 

limitations do not alter the maximum 

total amount of a recruitment or 

relocation incentives that may be paid 

to an individual employee. Agencies 

have the authority to approve a 

recruitment or relocation incentive for 

payments of up to 25 percent of an 

employee’s annual rate of basic pay 

times the number of years in a service 

agreement, not to exceed 4 years or 100 

percent of annual basic pay. With a 

waiver, agencies can approve a 

recruitment or relocation incentive of 

up to 50 percent of an employee’s 

annual rate of basic pay times the 

number of years in a service agreement, 

but still not to exceed 100 percent of 

annual basic pay. Therefore, the total 

incentive paid under a waiver continues 

to be limited to 100 percent of the 

employee’s annual basic pay, but the 

incentive may be paid over 2 years 

rather than 4 years. 

Section 101(a) of the Federal 

Workforce Flexibility Act of 2004 (Pub. 

L. 108–411, October 30, 2004) 

established significantly enhanced 

recruitment, relocation, and retention 

incentive authorities that provided 

Federal agencies with the flexibility to 

use such incentives in more strategic 

ways to help the Federal Government 

improve its competitiveness in 

recruiting and maintaining a high 

quality workforce. The enhancements 

provided by the Act included the 

authority to waive the normal cap on 

recruitment and relocation incentives 

because of a critical agency need and 

provided authority to pay higher 

amounts over shorter periods of time 

(not to exceed a total of 100 percent of 

the employee’s starting salary). The 

implementing regulations 8 required 

OPM approval to waive the recruitment 

and relocation incentive limits. 

Although this waiver authority was 

effective upon publication of the 

implementing regulations on May 13, 

2005, OPM did not receive any agency 

requests for recruitment or relocation 

waivers until 2008. Since that time, 

OPM has approved 15 recruitment 

incentive waivers for 6 agencies and 11 

relocation incentive waivers for 4 

agencies. OPM has approved waivers for 

healthcare, cybersecurity, and other 

mission-critical occupations. OPMapproved waivers provide agencies the 

discretionary authority to use a higher 

recruitment or relocation incentive 

payment limit for the covered 

position(s) and employee(s). An agency 

with an OPM-approved incentive 

waiver is responsible for documenting 

in writing the justification for paying 

each incentive authorized for an 

employee under the waiver and 

obtaining approval from the appropriate 

authorized agency official. 

OPM does not know how agencies 

would use the additional flexibility 

provided by this proposed change. It is 

possible that agencies would approve 

more recruitment and relocation 

incentive waivers if they are not 

required to go through the process of 

submitting a waiver request to OPM. 

However, the criteria for approval will 

not be changing, so agencies will still 

need to determine that the situation 

meets the critical need and other 

requirements for approving a waiver. In 

other words, approval of a waiver is not 

automatic and agencies will need to use 

discretion in granting waiver requests. 

In addition, agencies will need to make 

determinations about whether they have 

funds available in their budgets to 

provide waivers. The use of 

discretionary pay flexibilities such as 

recruitment and relocation incentives 

may be limited by agency budgets. 

As with the waiver authority, OPM 

does not know how agencies would use 

the additional flexibility of utilizing 

recruitment incentive service 

agreements of less than 6 months. 

Agencies do not report data to OPM on 

the length of the service agreements 

they authorize. Since the amount of the 

maximum recruitment incentive is 

based on the length of the service 

period, an agency would be limited in 

how much of an incentive they could 

authorize. For example, under the 

normal payment limitations, the 

maximum recruitment incentive that 

could be paid for a 3-month service 

period is 6.25 percent (.25 (25 percent) 

× .25 (3 months or 1⁄4 of 1 year) = 6.25 

percent) of the employee’s annual rate 

of basic pay at the beginning of the 

service period. Under a waiver, the 

maximum recruitment incentive that 

could be paid for a 3-month service 

period is 12.5 percent (.50 (50 percent) 

× .25 (3 months or 1⁄4 of 1 year) = 12.5 

percent) of the employee’s annual rate 

of basic pay at the beginning of the 

service period. 

C. Regulatory Alternatives 

An alternative to this proposed rule is 

to continue to require agencies to 

request approval from OPM when they 

seek waiver of the normal recruitment 

and relocation payment limitations. 

OPM would continue to review agency 

requests and grant waivers if the 

regulatory criteria are met. However, 

this slows down the approval process 

for agencies that have a critical need to 

recruit or relocate employees and need 

to act quickly. 

Another alternative would be to 

expand the authority to waive the 

normal recruitment and relocation 

payment limitations, but require higher 

approval levels within the agency. OPM 

believes agencies are in the best position 

to decide at what level to delegate this 

authority within their agency. 

Also, OPM could expand the agency 

waiver authority, but require additional 

approval criteria. Agencies may include 

additional approval criteria in their 

agency plan. OPM doesn’t believe it is 

necessary to require agencies to use 

additional approval criteria. 

Finally, OPM could expand the 

agency waiver authority, but institute 

special reporting requirements for the 

use of the new waiver authority. 

Agencies are required to report to 

OPM’s central data system when they 

authorize a waiver of the normal 

recruitment or relocation incentive 

payment limitations using legal 

authority code VPO. OPM doesn’t 

believe additional reporting 

requirements are necessary. 

Regarding the amendment of the 

service agreement requirement for 

recruitment incentives, possible 

alternatives include maintaining the 

current 6-month minimum service 

agreement or reducing it to a lesser 

amount (e.g., 3 months). OPM believes 

agencies are in the best position to 

decide the appropriate length for a 

recruitment incentive service 

agreement. 


ddrumheller on DSK120RN23PROD with PROPOSALS1
Federal Register / Vol. 88, No. 219 / Wednesday, November 15, 2023 / Proposed Rules 78247 

9Office of Personnel Management. ‘‘Fact Sheet: 

Oversight and Accountability.’’ https://

www.opm.gov/policy-data-oversight/pay-leave/ 

recruitment-relocation-retention-incentives/factsheets/oversight-and-accountability/. 

D. Costs 

This proposed rule would affect the 

operations of more than 80 Federal 

agencies—ranging from cabinet-level 

departments to small independent 

agencies—that have employees covered 

by the recruitment and relocation 

incentive regulations. OPM estimates 

that this rule would require individuals 

employed by these agencies to spend 

time updating agency policies and 

procedures as a result of the proposed 

regulations. For this cost analysis, the 

assumed average salary rate of Federal 

employees performing this work will be 

the rate in 2023 for GS–14, step 5, from 

the Washington, DC, locality pay table 

($150,016 annual locality rate and 

$71.88 hourly locality rate). OPM 

assumes the total dollar value of labor, 

which includes wages, benefits, and 

overhead, is equal to 200 percent of the 

wage rate, resulting in an assumed labor 

cost of $143.76 per hour. 

To comply with the regulatory 

changes in the proposed rule, affected 

agencies would need to review the rule 

and update their policies and 

procedures. OPM estimates that, in the 

first year following publication of a final 

rule, this would require an average of 

160 hours of work by employees with an 

average hourly cost of $143.76 per hour. 

This would result in estimated costs in 

that first year of implementation of 

about $23,000 per agency, and about 

$2.7 million Governmentwide. There 

are costs associated with administering 

recruitment and relocation incentives, 

but not necessarily an increase in 

administrative costs for agencies that are 

already using these pay flexibilities. 

E. Benefits 

Permitting agencies to review and 

approve waivers at the agency level will 

reduce administrative burden on 

agencies and increase the efficiency of 

using recruitment and relocation 

incentives. This will allow agencies to 

move more quickly in approving 

incentives when hiring new employees 

and relocating those who are moving 

into positions that are likely to be 

difficult to fill. Such efficiency could be 

especially helpful in emergency or other 

urgent situations in which recruiting 

new employees or relocating current 

employees rapidly is necessary. Also, 

with increases in the number of 

retirement-eligible employees, 

recruiting early career and experienced 

talent to the Federal workforce is a high 

priority. Providing agencies with more 

flexibility in implementing recruitment 

incentives by permitting greater latitude 

in determining service agreement 

lengths and payment limits can be a 

useful tool in achieving this goal. 

F. Request for Comments 

OPM requests comments on the 

implementation and impacts of this 

proposed rule. Such information will be 

useful for better understanding the 

effect of these regulations on 

recruitment and relocation incentives. 

The type of information in which OPM 

is interested includes, but is not limited 

to, the following: 

• Are there additional ways that the 

Federal Government can be a model 

employer with respect to recruitment 

and relocation incentives? 

• How can the Federal Government 

use recruitment and relocation 

incentives more effectively and 

efficiently? 

• OPM has provided a fact sheet 

addressing oversight and accountability 

for these incentives.9 Are there any 

additional ways in which the Federal 

Government can provide better 

oversight and accountability of 

recruitment and relocation incentives? 

E.O. 12866, 13563, 14094, Regulatory 

Review 

OPM has examined the impact of this 

rule as required by Executive Order 

12866 and Executive Order 13563, and 

Executive Order 14094, which direct 

agencies to assess all costs and benefits 

of available regulatory alternatives and, 

if regulation is necessary, to select 

regulatory approaches that maximize 

net benefits (including potential 

economic, environmental, public, 

health, and safety effects, distributive 

impacts, and equity). A regulatory 

impact analysis must be prepared for 

major rules with economically 

significant effects of $200 million or 

more in any one year. While this 

proposed rule does not reach the 

economic effect of $200 million or more, 

OMB has designated this rule as a 

‘‘significant regulatory action’’ under 

Executive Order 14094. 

Regulatory Flexibility Act 

The Director of OPM certifies that this 

proposed rule will not have a significant 

economic impact on a substantial 

number of small entities because they 

will apply only to Federal agencies and 

employees. 

E.O. 13132, Federalism 

This proposed rule will not have 

substantial direct effects on the States, 

on the relationship between the 

National Government and the States, or 

on distribution of power and 

responsibilities among the various 

levels of government. Therefore, in 

accordance with Executive Order 13132, 

it is determined that this proposed rule 

does not have sufficient federalism 

implications to warrant preparation of a 

Federalism Assessment. 

E.O. 12988, Civil Justice Reform 

This proposed rule meets the 

applicable standards set forth in section 

3(a) and (b)(2) of Executive Order 12988. 

Unfunded Mandates Reform Act of 

1995 

This proposed rule will not result in 

the expenditure by State, local or tribal 

governments, in the aggregate, or by the 

private sector, of more than $100 

million annually. Thus, no written 

assessment of unfunded mandates is 

required. 

Paperwork Reduction Act of 1995 (44 

U.S.C. Chapter 35) 

This regulatory action will not impose 

any reporting or recordkeeping 

requirements under the Paperwork 

Reduction Act. 

List of Subjects in Title 5 CFR Part 575 

Government employees, Wages. 

Office of Personnel Management. 

Kayyonne Marston, 

Federal Register Liaison. 

Accordingly, OPM is proposing to 

amend 5 CFR part 575 as follows: 

PART 575—RECRUITMENT, 

RELOCATION, AND RETENTION 

INCENTIVES; SUPERVISORY 

DIFFERENTIALS; AND EXTENDED 

ASSIGNMENT INCENTIVES 

■ 1. The authority citation for part 575 

continues to read as follows: 

Authority: 5 U.S.C. 1104(a)(2) and 5307; 

subparts A and B also issued under 5 U.S.C. 

5753; subpart C also issued under 5 U.S.C. 

5754; subpart D also issued under 5 U.S.C. 

5755; subpart E also issued under 5 U.S.C. 

5757 and sec. 207 of Public Law 107–273, 

116 Stat. 1780. 

Subpart A—Recruitment Incentives 

■ 2. In § 575.102, revise paragraph (3) of 

the definition ‘‘Newly appointed’’ to 

read as follows: 

§ 575.102 Definitions. 

* * * * * 

Newly appointed * * * 

(3) An appointment of an individual 

in the Federal Government when the 

individual’s service in the Federal 

Government during the 90-day period 


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78248 Federal Register / Vol. 88, No. 219 / Wednesday, November 15, 2023 / Proposed Rules 

immediately preceding the appointment 

was not in a position excluded by 

§ 575.104 and was limited to one or 

more of the following: 

* * * * * 

■ 3. In § 575.106, revise paragraph (a)(4) 

to read as follows: 

§ 575.106 Authorizing a recruitment 

incentive. 

(a) * * * 

(4) Waive the limitation on the 

maximum amount of a recruitment 

incentive under § 575.109(c); and 

* * * * * 

■ 4. In § 575.107, revise paragraphs 

(a)(1) and (b) to read as follows: 

§ 575.107 Agency recruitment incentive 

plan and approval levels. 

(a) * * * 

(1) The designation of officials with 

authority to— 

(i) Review and approve payment of 

recruitment incentives (subject to 

paragraph (b) of this section), including 

the circumstances under which an 

official has the authority to approve 

payment without higher-level approval 

under paragraph (b)(2) of this section; 

(ii) Waive the recruitment incentive 

payment limitation under § 575.109(c) 

(subject to the approval requirements in 

paragraph (b) of this section); and 

(iii) Waive the repayment of a 

recruitment incentive under 

§ 575.111(h); 

* * * * * 

(b) (1) Except as provided in 

paragraph (b)(2) of this section, an 

authorized agency official who is at 

least one level higher than the 

employee’s supervisor must review and 

approve each determination to pay a 

recruitment incentive to a newly 

appointed employee, unless there is no 

official at a higher level in the agency. 

If a determination includes a waiver of 

the payment limitation in § 575.109(c), 

the official who is designated in the 

agency’s plan under § 575.107(a) to 

approve waivers must approve the 

determination. The authorized agency 

official must review and approve the 

recruitment incentive determination 

before the agency may pay the incentive 

to the employee. 

(2) When necessary to make a timely 

offer of employment, an authorized 

agency official may establish criteria in 

advance for offering recruitment 

incentives to newly-appointed 

employees and may authorize an official 

who is not lower than a candidate’s 

supervisor to use these criteria to offer 

a recruitment incentive to a candidate 

without further review or approval in 

any amount within a pre-established 

range up to— 

(i) The normal payment limitation in 

§ 575.109(b); or 

(ii) A higher cap if the agency has 

approved a waiver to the normal 

payment limitation under § 575.109(c). 

* * * * * 

■ 5. In § 575.109, revise paragraph (c) to 

read as follows: 

§ 575.109 Payment of recruitment 

incentives. 

* * * * * 

(c) (1) An authorized agency official 

may waive the limitation in paragraph 

(b)(1) of this section for an employee or 

group of employees based on a critical 

agency need. The authorized agency 

official must determine that the 

competencies required for the 

position(s) are critical to the successful 

accomplishment of an important agency 

mission, project, or initiative (e.g., 

programs or projects related to a 

national emergency or implementing a 

new law or critical management 

initiative). Under such a waiver, the 

total amount of recruitment incentive 

payments paid to an employee in a 

service period may not exceed 50 

percent of the employee’s annual rate of 

basic pay at the beginning of the service 

period multiplied by the number of 

years (including fractions of a year) in 

the service period. However, in no event 

may a waiver provide total recruitment 

incentive payments exceeding 100 

percent of the employee’s annual rate of 

basic pay at the beginning of the service 

period. 

(2) Waiver determinations must be 

made in writing and include— 

(i) A description of the critical agency 

need the recruitment incentive would 

address; 

(ii) The documentation required by 

§ 575.108; and 

(iii) Any other information pertinent 

to the case at hand. 

* * * * * 

■ 6. In § 575.110, revise paragraphs (a) 

and (f) to read as follows: 

§ 575.110 Service agreement 

requirements. 

(a) Before paying a recruitment 

incentive, an agency must require the 

employee to sign a written service 

agreement to complete a specified 

period of employment with the agency 

(or successor agency in the event of a 

transfer of function). An authorized 

agency official must establish the 

criteria for determining the length of a 

service period. The service period may 

not exceed 4 years. 

* * * * * 

(f) The service agreement may include 

any other terms or conditions that, if 

violated, will result in termination of 

the service agreement under 

§ 575.111(b). For example, the service 

agreement may specify the employee’s 

work schedule, type of position, and the 

duties the employee is expected to 

perform. In addition, the service 

agreement may address the extent to 

which periods of time on detail, in a 

nonpay status, or in a paid leave status 

are creditable towards the completion of 

the service period. 

■ 7. In § 575.111, revise paragraphs (e) 

and (f) to read as follows: 

§ 575.111 Termination of a service 

agreement. 

* * * * * 

(e) If an authorized agency official 

terminates a service agreement under 

paragraph (a) of this section, the 

employee is entitled to all recruitment 

incentive payments that are attributable 

to completed service and to retain any 

portion of a recruitment incentive 

payment the employee received that is 

attributable to uncompleted service. 

(f) Except as provided in paragraph (j) 

of this section, if an authorized agency 

official terminates a service agreement 

under paragraph (b) of this section, the 

employee is entitled to retain 

recruitment incentive payments 

previously paid by the agency that are 

attributable to the completed portion of 

the service period. If the employee 

received recruitment incentive 

payments that are less than the amount 

that would be attributable to the 

completed portion of the service period, 

the agency is not obligated to pay the 

employee the amount attributable to 

completed service, unless the agency 

agreed to such payment under the terms 

of the recruitment incentive service 

agreement. If the employee received 

recruitment incentive payments in 

excess of the amount that would be 

attributable to the completed portion of 

the service period, the employee must 

repay the excess amount, except when 

an authorized agency official waives the 

requirement to repay the excess amount 

under paragraph (h) of this section. 

* * * * * 

Subpart B—Relocation Incentives 

■ 8. In § 575.206, revise paragraph (a)(4) 

to read as follows: 

§ 575.206 Authorizing a relocation 

incentive. 

(a) * * * 

(4) Waive the limitation on the 

maximum amount of a relocation 

incentive under § 575.209(c); and 

* * * * * 

■ 9. In § 575.207, revise paragraphs 

(a)(1) and (b)(1) to read as follows: 


ddrumheller on DSK120RN23PROD with PROPOSALS1
Federal Register / Vol. 88, No. 219 / Wednesday, November 15, 2023 / Proposed Rules 78249 

§ 575.207 Agency relocation incentive plan 

and approval levels. 

(a) * * * 

(1) The designation of officials with 

authority to— 

(i) Review and approve payment of 

relocation incentives (subject to 

paragraph (b) of this section); 

(ii) Waive the relocation incentive 

payment limitation under § 575.209(c) 

(subject to the approval requirements in 

paragraph (b) of this section); and 

(iii) Waive the repayment of a 

relocation incentive under § 575.211(h); 

* * * * * 

(b) (1) Except as provided in 

paragraph (b)(2) of this section, an 

authorized agency official who is at 

least one level higher than the 

employee’s supervisor must review and 

approve each determination to pay a 

relocation incentive, unless there is no 

official at a higher level in the agency. 

If a determination includes a waiver of 

the payment limitation in § 575.209(c), 

the official who is designated in the 

agency’s plan under § 575.207(a) to 

approve waivers must approve the 

determination. The authorized agency 

official must review and approve the 

relocation incentive determination 

before the agency pays the incentive to 

the employee. 

* * * * * 

■ 10. In § 575.209, revise paragraph (c) 

to read as follows: 

§ 575.209 Payment of relocation 

incentives. 

* * * * * 

(c) (1) An authorized agency official 

may waive the limitation in paragraph 

(b)(1) of this section for an employee (or 

group of employees, if the case-by-case 

determination is waived under the 

conditions in § 575.208(b)) based on a 

critical agency need. The authorized 

agency official must determine that the 

competencies required for the position 

are critical to the successful 

accomplishment of an important agency 

mission, project, or initiative (e.g., 

programs or projects related to a 

national emergency or implementing a 

new law or critical management 

initiative). Under such a waiver, the 

total amount of relocation incentive 

payments paid to an employee in a 

service period may not exceed 50 

percent of the annual rate of basic pay 

of the employee at the beginning of the 

service period multiplied by the number 

of years (including fractions of a year) 

in the service period. However, in no 

event may a waiver provide total 

relocation incentive payments 

exceeding 100 percent of the employee’s 

annual rate of basic pay at the beginning 

of the service period. 

(2) Waiver determinations must be in 

writing and include— 

(i) A description of the critical agency 

need the relocation incentive would 

address; 

(ii) The documentation required by 

§ 575.208; 

and 

(iii) Any other information pertinent 

to the case at hand. 

* * * * * 

■ 11. In § 575.210, revise paragraph (f) 

to read as follows: 

§ 575.210 Service agreement 

requirements. 

* * * * * 

(f) The service agreement may include 

any other terms or conditions that, if 

violated, will result in termination of 

the service agreement. For example, the 

service agreement may specify the 

employee’s work schedule, type of 

position, and the duties the employee is 

expected to perform. In addition, the 

service agreement may address the 

extent to which periods of time on 

detail, in a nonpay status, or in a paid 

leave status are creditable towards the 

completion of the service period. 

■ 12. In § 575.211, revise paragraphs (e) 

and (f) to read as follows: 

§ 575.211 Termination of a service 

agreement. 

* * * * * 

(e) If an authorized agency official 

terminates a service agreement under 

paragraph (a) of this section, the 

employee is entitled to all relocation 

incentive payments attributable to 

completed service and to retain any 

portion of a relocation incentive 

payment the employee received that is 

attributable to uncompleted service. 

(f) If an authorized agency official 

terminates a service agreement under 

paragraph (b) of this section, the 

employee is entitled to retain relocation 

incentive payments previously paid by 

the agency that are attributable to the 

completed portion of the service period. 

If the employee received relocation 

incentive payments that are less than 

the amount that would be attributable to 

the completed portion of the service 

period, the agency is not obligated to 

pay the employee the amount 

attributable to completed service, unless 

the agency agreed to such payment 

under the terms of the relocation 

incentive service agreement. If the 

employee received relocation incentive 

payments in excess of the amount that 

would be attributable to the completed 

portion of the service period, the 

employee must repay the excess 

amount, except when an authorized 

agency official waives the requirement 

to repay the excess amount under 

paragraph (h) of this section. 

* * * * * 

[FR Doc. 2023–25199 Filed 11–14–23; 8:45 am] 

BILLING CODE 6325–39–P 

DEFENSE NUCLEAR FACILITIES 

SAFETY BOARD 

10 CFR Part 1703 

[Docket No. DNFSB–2024–01] 

Freedom of Information Act Fee 

Schedule 

AGENCY: Defense Nuclear Facilities 

Safety Board. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Defense Nuclear 

Facilities Safety Board (DNFSB or 

Board) is proposing to revise its 

Freedom of Information Act (FOIA) fee 

schedule and to make conforming 

amendments to two related provisions 

of its FOIA regulations. 

DATES: To be considered, comments 

must be submitted by December 15, 

2023. 

ADDRESSES: You may submit written 

comments by either of the following 

methods: 

• Email: Send comments to 

comment@dnfsb.gov. Please include 

‘‘FOIA Fee Revision’’ in the subject line 

of your email. 

• Mail or Hand Delivery: Send hard 

copy comments to the Defense Nuclear 

Facilities Safety Board, Attn: General 

Manager, 625 Indiana Avenue NW, 

Suite 700, Washington, DC 20004–2901. 

FOR FURTHER INFORMATION CONTACT: 

Tayrn L. Gude, Director, Division of 

Operational Services, Office of the 

General Manager, Defense Nuclear 

Facilities Safety Board, 625 Indiana 

Avenue NW, Suite 700, Washington, DC 

20004–2901, (202) 694–7000 (Toll Free 

(800) 788–4016). 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Freedom of Information Act 

requires Federal agencies to which it 

applies to publish a schedule of the 

costs that they may charge for the 

expenditures incurred in responding to 

requests for their records. Guidelines 

published by the Office of Management 

and Budget assist agencies in meeting 

that requirement and provide a structure 

for its consistent implementation across 

the Executive Branch, 5 U.S.C. 

552(a)(4)(A)(i), and ‘‘Uniform Freedom 

of Information Act Fee Schedules and 

Guidelines,’’ 52 FR 10012 (March 27, 

1987), Revised 85 FR 81955 (Dec. 17, 


ddrumheller on DSK120RN23PROD with PROPOSALS1