BOP 322.1, NNSA Recruitment, Relocation, and Retention Incentives Program: Interim Policy Pending Issuance by US Office of Personnel Management of Final Regulations

NATIONAL NUCLEAR SECURITY ADMINISTRATION BOP 322.1 Dated: 12/27/05 NNSA Recruitment, Relocation, and Retention Incentives Program: Interim Policy Pending Issuance by US Office of Personnel Management of Final Regulations 1. PURPOSE. To establish and implement a uniform, corporate NNSA process for the use of recruitment, relocation, and retention incentives under the provisions of 5 U.S.C. 5753, 5 U.S.C. 5754, and 5 CFR part 575. 2. APPLICABILITY. This policy applies to all NNSA organizations. 3. POLICY. It is NNSA's policy to judiciously utilize the flexibility to offer recruitment, relocation, and retention incentives in order to recruit and retain highly qualified personnel, consistent with the overall NNSA staffing plan, budgetary considerations, and the goal of maintaining a high-quality diverse workforce. 4. DEFINITIONS. a. Covered Employees/Positions. 1) General Schedule (GS), EJ, EK, EN, career Senior Executive Service (SES) appointees, Senior Level (SL), Senior Scientific and Professional (ST), Excepted Service Schedule A and B, Executive Schedule (EX), positions whose rate of pay is fixed by law at a rate equal to a rate for the Executive Schedule, and prevailing rate (i.e., "wage grade"). 2) Employees and candidates who have a performance rating of record of at least "Fully Successful" or equivalent. 3) Permanent positions (i.e., career, career-conditional, and similar) and temporary positions expected to last a minimum of one year. b. Excluded Employees/Positions. 1) Non-career SES appointees, Schedule C, and Presidential appointees. 2) Employees and candidates who have a performance rating of record of less than "Fully Successful" or equivalent. 3) Temporary positions expected to last less than one year. INITIATED BY: Office of Human Resources NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 2 c. Newly Appointed. 1) The first appointment, regardless of tenure, as an employee of the Federal government; or 2) An appointment as a former employee of the Federal government following a break in service of at least 90 days; or 3) An appointment as an employee of the Federal government when the employee's Federal service during the 90-day period immediately preceding the appointment was limited to one or more of the following: a) A time-limited or non-permanent appointment in the competitive or excepted service; b) Employment with the District of Columbia government (DC) when the candidate was first appointed by DC on or after October 1, 1987; c) An appointment as an expert or consultant under 5 U.S.C. 3109 and 5 CFR part 304; d) Service as an employee of a Non appropriated Fund Instrumentality of the Department of Defense or the Coast Guard; or e) Employment under a provisional appointment under 5 CFR 316.403 d. Performance Rating Requirement. 1) Candidates and employees must have and maintain a performance rating of record of at least "Fully Successful" or equivalent to receive a recruitment, relocation, or retention incentive. A performance rating of record of at least "Fully Successful" or equivalent may be determined and documented as follows: a) For Federal employees, documentation of a performance rating of record of at least "Fully Successful" or equivalent may be established with a copy of the employee's performance appraisal, the cover sheet of the performance appraisal if it shows a summary rating, a Standard Form 50, Notification of Personnel Action,

which shows a summary performance rating, or any other similar document. b) For Federal employees who have not received a performance rating of record, "Fully Successful" or equivalent may be presumed in accordance with the Waiver of Requirement for Determination provisions in 5 CFR 531.409(d). NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 3 c) For non-Federal employees (i.e., private sector, contractor, military, etc.) covered by a formal performance appraisal system, documentation of a performance rating of record of at least "Fully Successful" or equivalent may be established with a copy of the employee' s performance appraisal, the cover sheet of the performance appraisal if it shows a summary rating, or any other similar document. d) For non-Federal employees (i.e., private sector, contractor, military, etc.) who are not covered by a formal performance appraisal system, documentation of a performance rating of record of at least "Fully Successful" or equivalent may be established by the requesting official certifying that he/she is satisfied that the candidate is performing the duties of his/her current/most recent position in a manner that would result in a " Fully Successful" or equivalent performance rating at NNSA. e) Recent college or university graduates may be presumed "Fully Successful" based solely on their having completed all of the requirements for a degree at an accredited college or university. e. Rate of Basic Pay. 1) The rate of pay fixed by law or administrative action for the position to which an employee is or will be appointed before deductions and including any special rate under 5 CFR part 530, subpart C, or similar payment under other legal authority, and any locality-based comparability payment under 5 CFR part 531, subpart F, or similar payment under other legal authority, but excluding additional pay of any other kind. For example, a rate of basic pay does not include additional pay such as night shift differentials under 5 U.S.C. 5343(!) or environmental differentials under 5 U.S.C. 5343(c) (4). f. Recruitment Incentive (Group). 1) A one-time lump sum payment at the beginning of the service period of up to 25 percent of annual rate of basic pay to all newly appointed Federal employees for a group of positions provided a determination has been made, that in the absence of such payment, NNSA has encountered difficulty in filling the positions in the group in the past or it is likely that the positions in the group will be difficult to fill in the future. The U.S. Office of Personnel Management (OPM) may authorize more than 25 percent and up to 50 percent of annual rate of basic pay per year based on a critical need of NNSA. Current Federal employees (except as defined in Newly Appointed on Page 2) are ineligible for recruitment incentives. NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 4 g. Recruitment Incentive (Individual). 1) A one-time lump sum payment at the beginning of the service period of up to 25 percent of annual rate of basic pay to a newly appointed Federal employee provided a determination is made prior to the entry-on-duty date that, in the absence of such payment, NNSA would encounter difficulty in filling the position. OPM may authorize more than 25 percent and up to 50 percent of annual rate of basic pay per year based on a critical need of NNSA. Current Federal employees (except as

defined in Newly Appointed on Page 2) are ineligible for recruitment incentives. h. Relocation Incentive (Group). 1) A one-time lump sum payment at the beginning of the service period of up to 25 percent of annual rate of basic pay to all current Federal employees who must relocate to accept a position in a different geographic area (i.e., the worksite of the new position is 50 miles or more from the worksite of the position held immediately before the move), and who establish legal residency in the new geographic area for a group of positions, provided a determination has been made, that in the absence of such payment, NNSA has encountered difficulty in filling the positions in the group in the past or it is likely that the positions in the group will be difficult to fill in the future. OPM may authorize more than 25 percent and up to 50 percent of annual rate of basic pay per year based on a critical need of NNSA. Newly appointed employee s (as defined in Newly Appointed on Page 2) are ineligible for relocation incentives. i. Relocation Incentive (Individual). 1) A one-time lump sum payment at the beginning of the service period of up to 25 percent of annual rate of basic pay to a current Federal employee who must relocate to accept a position in a different geographic area (i.e., the worksite of the new position is 50 miles or more from the worksite of the position held immediately before the move), and who establishes legal residency in the new geographic area, provided a determination is made prior to the entry-on-duty date in the new commuting area that, in the absence of such payment, NNSA would encounter difficulty in filling the position. OPM may authorize more than 25 percent and up to 50 percent of annual rate of basic pay per year based on a critical need of NNSA. Newly appointed employees (as defined in Newly Appointed on Page 2) are ineligible for relocation incentives. NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 5 j. Retention Incentive (Group). I) Bi-weekly payments of up to a total of IO percent of annual rate of basic pay to a group of current NNSA employees if there is a high risk that a significant portion of employees in the group would be likely to leave Federal service in the absence of such an incentive. OPM may authorize more than IO percent and up to 50 percent of the employee's annual rate of basic pay based on a critical need of NNSA. Newly appointed employees (as defined in Newly Appointed on Page 2), current Federal employees outside of NNSA, and employees in SL, ST, SES, EX, or similar categories of positions for which the payment of an individual retention incentive has been approved by OPM, are ineligible for group retention incentives. k. Retention Incentive (Individual). I) Bi-weekly payments of up to a total of 25 percent of annual rate of basic pay to a current NNSA employee if the unusually high or unique qualifications of the employee, or a special need of NNSA for the employee's services, makes it essential to retain the employee, and NNSA determines that the employee would be likely to leave Federal service in the absence of such an incentive. OPM may authorize more than 25 percent and up to 50 percent of the employee's annual rate of basic pay based on a critical need of NNSA. Newly appointed employees (as defined in Newly Appointed on Page 2) and current Federal employees outside of NNSA are ineligible

for retention incentives. NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 6 5. REQUIREMENTS. a. Recruitment Incentives. 1) Justification a) For an individual recruitment incentive, requesting officials must provide a written justification demonstrating difficulty in recruiting for the specific position or a sufficiently similar position. b) For group recruitment incentives, requesting officials must narrowly define the group by specifying each position title, series, and grade to be included in the group, and provide written justification demonstrating difficulty in recruiting for the specified group of positions or a group of sufficiently similar positions. (1) Approved group recruitment incentive requests are valid for one year or until all vacancies in the group have been filled, whichever comes first. 2) Factors to be Addressed , Considered, and Documented (as applicable): a) History of difficulty in filling or retaining employees in the same or sufficiently similar positions in the absence of an appropriate incentive taking into consideration the availability and quality of candidates possessing the competencies required for the position, and the success of recent efforts to recruit candidates for the same or sufficiently similar positions using indicators such as offer acceptance rates, proportion of positions filled, and length of time required to fill the same or sufficiently similar positions. In most cases, this information may be confirmed if the occupation (and grade level) is identified as a shortage­ category occupation in a local staffing plan and the plan indicates the need for an incentive. (1) A position may be presumed difficult to fill if OPM has approved the use of a direct-hire authority under 5 CFR part 337, subpart B, for the position (or group of positions) and it has been identified as a shortage­ category occupation in a local staffing plan and the plan indicates the need for an incentive. (2) A sufficiently similar position is one that is so much like the position for which the incentive is being requested in terms of grade level, minimum qualification requirements (including selective factors, if any), knowledges, skills, and abilities needed to perform the critical duties, etc., that it would be reasonable to expect that applicants for one might NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 7 qualify for the other. b) Local, regional, or nationwide employment trends and labor-market factors that may affect NNSA's ability to recruit candidates for the same or sufficiently similar positions. c) The salaries typically paid outside the Federal government for the same or sufficiently similar positions. Consideration may also be given to the difference between the calculated values of non-Federal benefits (i.e., health insurance, life insurance, vacation time, etc.) versus the estimated value of Federal benefits (calculated at 25 percent of annual rate of basic pay). d) Special or unique competencies required for the position and the extent to which the candidate possesses them by identifying the significant or critical work of the position, the knowledges, skills, and abilities needed to perform that work, and the candidate's applicable qualifications. e) Efforts to use non-pay authorities, such as special training, alternative work scheduling flexibilities, flexplace arrangements, etc., to resolve difficulties alone

or in combination with an incentive. f) The undesirability of the duties, work or organizational environment, or geographic location of the position in terms of exposure to hazards, extreme isolation, depressed local economy, lack of suitable housing, schools, or conveniences, or other disincentives (as applicable). g) Recent turnover in the same or sufficiently similar positions. h) Any other supporting factors (as applicable). 3) Determining Amount of Recruitment Incentive. a) The amount of the recruitment incentive should be the least amount necessary to recruit the candidate. b) In determining the size of the recruitment incentive, requesting officials must take into consideration budgetary issues (if any) and the candidate's potential value to NNSA. NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 8 c) Decisions to offer or award a greater recruitment incentive to one candidate than another for the same position must be supported by a written justification demonstrating that such difference in treatment is merit-based, fair, and equitable. d) A recruitment incentive in excess of 15 percent is generally inappropriate unless one of the following conditions, or a similar condition, exists: (1) The candidate's qualifications are unique and hard-to- find; or (2) There are no other viable candidates who possess the qualifications necessary to perform the essential duties of the position. e) A recruitment incentive in excess of 25 percent is inappropriate unless a critical need exists, in which case, all of the following conditions must be met: (1) The candidate's qualifications are unique and hard-to-find; (2) There are no other viable candidates who possess the qualifications necessary to perform the essential duties of the position; (3) The competencies required for the position are critical to the successful accomplishment of a primary NNSA mission, project, or initiative (e.g., programs or projects related to a national emergency or implementing a new law or critical management initiative); (4) The work of the position is critical to and has a direct impact on the successful accomplishment of a primary NNSA mission, project, or initiative ; and (5) Recruitment efforts for the position have been extensive and prolonged (e.g., multiple announcements for the same vacancy) or the need to fill the vacancy without delay in order to avoid detrimental impact on a time sensitive primary NNSA mission, project, or initiative makes extensive and prolonged recruitment efforts infeasible. f) A recruitment incentive in excess of 25 percent and up to 50 percent must be approved by OPM. 4) Service Agreement. a) A 12-month service agreement period beginning at entry-on-duty is required. NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 9 5) Entry on Duty. a) The candidate must not have entered on duty in the position for which he or she was recruited prior to final approval of the request to pay the recruitment incentive and prior to the date the service agreement is fully executed (signed and dated by all required signatories). 6) Payment of Recruitment Incentives. a) Recruitment incentives are paid in a lump sum as soon as possible after the candidate enters on duty. The total amount of taxes (i.e., income tax withholding, social security, and Medicare) is deducted from the gross amount of the incentive, and a net payment is made.

b) Recruitment incentives are not considered part of an employee's rate of basic pay for retirement purposes or any other authority. c) Recruitment incentives count toward the aggregate limitation on pay under 5 CFR 530, Subpart B. 7) Failure to Complete Service Agreement. a) An employee who fails to complete the terms of the service agreement will be required to repay the gross amount of the overpayment as computed on a month­ for-month pro rata basis (i.e., gross amount of incentive received= $12,000.00, service agreement= 12 months, and employee resigns after 6 months; employee is obligated to repay 6/12 of $12,000.00 = $6,000.00). b) Repayment is not required if the employee is involuntary separated from NNSA or from his/her position for reasons other than misconduct or performance (i.e., reduction-in-force, management directed reassignment, or similar). c) Repayment is automatically waived when an employee is separated by death or disability retirement, or is unable to continue working because of disability evidenced by acceptable medical documentation. d) Repayment may be wholly or partially waived in other circumstances if the Administrator of the National Nuclear Security Administration determines that recovery would not be in the public interest or would be against equity and good conscience. In making this determination, the Administrator of the National Nuclear Security Administration will take into account consistency, fairness, and the cost to the taxpayer of recovering monies owed to the government. NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 10 b. Relocation Incentives. 1) Justification a) For an individual relocation incentive, requesting officials must provide a written justification demonstrating difficulty in recruiting for the specific position or a sufficiently similar position. b) For group relocation incentives, requesting officials must narrowly define the group by specifying each position title, series, and grade to be included in the group, and provide written justification demonstrating difficulty in recruiting for the specified group of positions or a group of sufficiently similar positions. (1) Approved group relocation incentive requests are valid for one year or until all vacancies in the group have been filled, whichever comes first. 2) Factors to be Addressed, Considered, and Documented (as applicable): a) History of difficulty in filling or retaining employees in the same or sufficiently similar positions in the absence of an appropriate incentive taking into consideration the availability and quality of candidates possessing the competencies required for the position, and the success of recent efforts to recruit candidates for the same or sufficiently similar positions using indicators such as offer acceptance rates, proportion of positions filled, and length of time required to fill the same or sufficiently similar positions. In most cases, this information may be confirmed if the occupation (and grade level) is identified as a shortage­ category occupation in a local staffing plan and the plan indicates the need for an incentive. (1) A position may be presumed difficult to fill if OPM has approved the use of a direct-hire authority under 5 CFR part 337, subpart B, for the position (or group of positions), and it has been identified as a shortage­ category occupation in a local staffing plan and the plan indicates the

need for an incentive. (2) A sufficiently similar position is one that is so much like the position for which the incentive is being requested in terms of grade level, minimum qualification requirements (including selective factors, if any), knowledges, skills, and abilities needed to perform the critical duties, etc., that it would be reasonable to expect that applicants for one might qualify for the other. NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 11 b) Local, regional, or nationwide employment trends and labor-market factors that may affect NNSA's ability to recruit candidates for the same or sufficiently similar positions. c) The salaries typically paid outside the Federal government for the same or sufficiently similar positions. Consideration may also be given to the difference between the calculated values of non-Federal benefits (i.e., health insurance, life insurance, vacation time, etc.) versus the estimated value of Federal benefits (calculated at 25 percent of annual rate of basic pay). d) Special or unique competencies required for the position and the extent to which the candidate or employee possesses them by identifying the significant or critical work of the position, the knowledges, skills, and abilities needed to perform that work, and the candidate's or employees applicable qualifications. e) Efforts to use non-pay authorities, such as special training, alternative work scheduling flexibilities, flexi place arrangements, etc., to resolve difficulties alone or in combination with an incentive. f) The undesirability of the duties, work or organizational environment, or geographic location of the position in terms of exposure to hazards, extreme isolation, depressed local economy, lack of suitable housing, schools, or conveniences, or other disincentives (as applicable). g) Recent turnover in the same or sufficiently similar positions. h) Any other supporting factors (as applicable). 3) Determining Amount of Relocation Incentive. a) The amount of the relocation incentive should be the least amount necessary to recruit the candidate or employee. b) In determining the size of the relocation incentive, requesting officials must take into consideration budgetary issues (if any) and the candidate's or employees potential value to NNSA. c) Decisions to offer or award a greater relocation incentive to one candidate or employee than another for the same position must be supported by a written justification demonstrating that such difference in treatment is merit-based, fair, and equitable. NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 12 d) A relocation incentive in excess of 15 percent is generally inappropriate unless one of the following conditions, or a similar condition, exists: (1) The candidate's or employee's qualifications are unique and hard-to­ find; (2) There are no other viable candidates or employees who possess the qualifications necessary to perform the essential duties of the position; or (3) The candidate's or employee's relocation creates an extreme hardship. e) A relocation incentive in excess of 25 percent is inappropriate unless a critical need exists , in which case, all of the following condition s must be met: (1) The candidate's or employee's qualifications are unique and hard-to­ find; (2) There are no other viable candidates or employees who possess the qualifications necessary to perform the essential duties of the position;

(3) The competencies required for the position are critical to the successful accomplishment of a primary NNSA mission, project, or initiative (e.g., programs or projects related to a national emergency or implementing a new law or critical management initiative); (4) The work of the position is critical to and has a direct impact on the successful accomplishment of a primary NNSA mission, project, or initiative; and (5) Recruitment efforts for the position have been extensive and prolonged (e.g., multiple announcements for the same vacancy) or the need to fill the vacancy without delay in order to avoid detrimental impact on a time sensitive primary NNSA mission, project, or initiative makes extensive and prolonged recruitment efforts infeasible. f) A relocation incentive in excess of 25 percent and up to 50 percent must be approved by OPM. 4) Service Agreement. a) A 12-rnonth service agreement period beginning at entry-on-duty is required. NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 13 5) Entry on Duty. a) The candidate or employee must not have entered on duty in the position for which he or she was recruited prior to final approval of the request to pay the relocation incentive and prior to the date the service agreement is fully executed (signed and dated by all required signatories). 6) Payment of Relocation Incentives. a) Relocation incentives are paid in a lump sum as soon as possible after the candidate or employee relocates to the new geographic area or as soon as possible after the candidate or employee officially establishes legal residency in the new geographic area, whichever is later. The total amount of taxes (i.e., income tax withholding, social security, and Medicare) is deducted from the gross amount of the incentive, and a net payment is made. b) Relocation incentives are not considered part of an employee's rate of basic pay for retirement purposes or any other authority. c) Relocation incentives count toward the aggregate limitation on pay under 5 CFR 530, Subpart B. 7) Failure to Complete Service Agreement. a) An employee who fails to complete the terms of the service agreement will be required to repay the gross amount of the overpayment as computed on a month­ for-month pro rata basis (i.e., gross amount of incentive received= $12,000.00, service agreement = 12 months, and employee resigns after 6 months; employee is obligated to repay 6/12 of$12,000.00 = $6,000.00). b) Repayment is not required if the employee is involuntary separated from NNSA or from his/her position for reasons other than misconduct or performance (i.e., reduction-in-force or similar). c) Repayment is automatically waived when an employee is separated by death or disability retirement, or is unable to continue working because of disability evidenced by acceptable medical documentation. d) Repayment may be wholly or partially waived in other circumstances if the Administrator of the National Nuclear Security Administration determines that recovery would not be in the public interest or would be against equity and good conscience. In making this determination, the Administrator of the National NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 14 Nuclear Security Administration will take into account consistency, fairness, and the cost to the taxpayer of recovering monies owed to the government. 8) Waiver of Case-by-Case Approval Requirements.

a) The normal case-by-case approval requirements for a relocation incentive are waived for current NNSA employees if: (I) The employee is a member of a group of employees in a program subject to a mobility agreement, NNSA has determined that relocation incentives are necessary to retain employees subject to such an agreement to ensure continuation of operations, and the amount of the relocation incentive and service requirement are specified in the program; or (2) A major NNSA organizational unit is relocated to a new duty station and NNSA has determined that relocation incentives are necessary for a group of employees to ensure the continued operation of that unit without undue disruption of an activity or function deemed essential to NNSA's mission or without undue disruption of service to the public. NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 15 c. Retention Incentives (Individual). 1) Justification a) For an individual retention incentive, requesting officials must provide a written justification demonstrating that absent a retention incentive, the employee is likely to leave Federal Service, that the employee's leaving would adversely affect the organization's ability to conduct essential activities or functions, that there would be difficulty in replacing the employee, and that the unusually high or unique qualifications of the employee, or a special need of NNSA for the employee's services, make it essential to retain the employee. (1) Approved individual retention incentive requests are valid for up to one year. b) Because of the potential continuing nature of retention incentives, requesting officials must also develop a written strategy for reducing or eliminating the retention incentive over a period of time. The strategy should include training or retraining of other employees, skill replacement through additional hiring or targeted recruitment, or similar factors. 2) Factors to be Addressed, Considered, and Documented (as applicable): a) The success of recent efforts to recruit candidates and retain employees with competencies similar to those possessed by the employee for positions that are sufficiently similar to the position held by the employee. (1) A sufficiently similar position is one that is so much like the position for which the incentive is being requested in terms of grade level, minimum qualification requirements (including selective factors, if any), knowledges, skills, and abilities needed to perform the critical duties, etc., that it would be reasonable to expect that applicants for one might qualify for the other. b) Local, regional, or nationwide employment trends and labor-market factors that may affect NNSA's ability to retain employees in the same or sufficiently similar positions. c) The salaries typically paid outside the Federal government for the same or sufficiently similar positions. Consideration may also be given to the difference between the calculated value of non-Federal benefits (i.e., health insurance, life insurance, vacation time, etc.) versus the estimated value of Federal benefits NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 16 (calculated at 25 percent of annual rate of basic pay). d) Special or unique competencies required for the position and the extent to which the employee possesses them by identifying the significant or critical work of the position, the knowledges, skills, and abilities needed to perform that work, and

the employee's applicable qualifications, and the extent to which the employee's departure would affect NNSA's ability to carry out an activity, perform a function, or complete a project that NNSA deems essential to its mission. e) Efforts to use non-pay authorities, such as special training, alternative work scheduling flexibilities, flexi place arrangements, etc., to resolve difficulties alone or in combination with an incentive. f) The undesirability of the duties, work or organizational environment, or geographic location of the position in terms of exposure to hazards, extreme isolation, depressed local economy, lack of suitable housing, schools, or conveniences, or other disincentives (as applicable). g) Recent turnover in the same or sufficiently similar positions. h) Any other supporting factors (as applicable). 3) An employee who has not fulfilled an obligation pursuant to a service agreement established in connection with a recruitment or relocation incentive may not be considered for a retention incentive until the employee has satisfied that obligation. 4) Determining Amount of Incentive. a) The incentive amount should be the least amount necessary to retain the employee. b) In determining the size of the incentive, requesting officials must take into consideration budgetary issues (if any) and the employee's value to NNSA. c) Decisions to offer or award a greater incentive to one employee than another for the same position must be supported by a written justification demonstrating that such difference in treatment is merit-based, fair, and equitable. d) A retention incentive in excess of 15 percent is generally inappropriate unless one of the following conditions, or a similar condition, exists. (1) The employee's qualifications are unique and hard-to-find; NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 17 (2) There are no other viable candidates who possess the skills necessary to perform the essential duties of the position; or (3) The loss of the employee would result in significant health, safety, or monetary risks to NNSA. e) A retention incentive in excess of 25 percent is inappropriate unless a critical need exists, in which case, all of the following conditions must be met: (1) The employee's qualifications are unique and hard-to-find; (2) There are no other viable candidates who possess the qualifications necessary to perform the essential duties of the position; (3) The loss of the employee would result in significant health, safety, or monetary risks to NNSA; (4) The competencies required for the position are critical to the successful accomplishment of a primary NNSA mission, project, or initiative (e.g., programs or projects related to a national emergency or implementing a new law or critical management initiative); and (5) The work of the position is critical to and has a direct impact on the successful accomplishment of a primary NNSA mission, project, or initiative. f) A retention incentive in excess of 25 percent and up to 50 percent must be approved by OPM. 5) Service Agreement. a) No service period agreement is required for a retention incentive of25 percent or less. b) A 12-month service period agreement is required for a retention incentive of more than 25 percent and up to 50 percent. 6) Payment of Retention Incentives. a) Retention incentives are paid on a bi-weekly pay period basis of a set amount

(1/26th of the gross incentive) for a period of no more than one year at a time. NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 18 The gross bi-weekly retention incentive amount is added to the employee’s gross salary for that pay period and taxes are calculated and withheld based on total salary to determine employee's net pay. (I) With bi-weekly payments, total annual payment amounts may vary from year to year because each calendar year does not always have 26 pay periods. Thus, the bi-weekly amount may need to be adjusted periodically to ensure the percentage of basic pay approved is not exceeded. b) Retention incentives are not considered part of an employee's rate of basic pay for retirement purposes or any other authority. c) Retention incentives count toward the aggregate limitation on pay under 5 CFR 530, Subpart B. 7) Annual Recertification of Retention Incentives. a) Requesting officials must recertify at least once each year that a retention incentive is still needed to retain the employee, and must carefully review the amount of the incentive to determine if a reduced amount or termination of the retention incentive is appropriate. In order for a retention incentive to be continued beyond the current retention incentive period, the recertification request must be submitted and approved prior to the expiration of the current retention incentive period. b) Requesting officials must provide a written justification demonstrating that the conditions that warranted the initial retention incentive still exist (i.e., that the employee is still likely to leave Federal Service, that the employee's leaving would still adversely affect the organization's ability to conduct essential activities or functions, that there would still be difficulty in replacing the employee, and that the unusually high or unique qualifications of the employee, or a special need of NNSA for the employee's services, still make it essential to retain the employee), taking into account all of the factors that were addressed in the original request and subsequent recertification requests (if any). c) Requesting officials must also address what specific actions were taken during the previous year to meet the goals of the previously developed written strategy for eliminating the need for the retention incentive (i.e., the success or failure of training or retraining other employees, skill replacement through additional hiring or targeted recruitment, or similar factors. NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 19 8) Reduction or Termination of Retention Incentives. a) The amount of the retention incentive must be reduced to the extent necessary or terminated to ensure that the employee's aggregate compensation does not exceed the aggregate limitation on pay under 5 CFR 530, Subpart B. b) The amount of the retention incentive must be reduced or terminated when a lesser amount or when none at all would be sufficient to retain the employee. c) The retention incentive must be terminated when the conditions that gave rise to the original determination no longer exist d) The retention incentive must be terminated at the end of the one-year approved period of time if it is not extended through the recertification process. e) The retention incentive must be terminated if the employee either leaves the position for which the retention incentive was approved for any reason, fails to

maintain a performance rating of record of at least "Fully Successful" or equivalent, fails to obtain/maintain the appropriate clearance level, or similar. f) The reduction or termination of a retention incentive may not be appealed. NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 20 d. Retention Incentives (Group). 1) Justification a) For a group retention incentive, requesting officials must narrowly define the group by specifying each position title, series, and grade to be included in the group and provide a written justification demonstrating that absent a retention incentive, it is reasonable to presume that there is a high risk that a significant number of employees in the targeted group would be likely to leave the Federal service for any reason, and that the unusually high or unique qualifications of the employees in the group or a special need of NNSA for the employees' services makes it essential to retain the employees in the group. Additional factors which may be appropriate in narrowly defining the group include distinctive job duties, unique competencies required for the position, assignment to a special project, minimum NNSA service requirements, organization or team designation, and required rating of record (if greater than "Fully Successful" or equivalent). However, performance level may not be established as the sole or primary basis for authorizing a retention incentive. (1) Approved group retention incentive requests are valid for up to one year. b) Because of the potential continuing nature of retention incentives, requesting officials must also develop a written strategy for reducing or eliminating the retention incentive over a period of time. The strategy should include training or retraining of other employees, skill replacement through additional hiring or targeted recruitment, or similar factors. 2) Factors to be Addressed, Considered, and Documented (as applicable): a) The success of recent efforts to recruit candidates and retain employees with competencies similar to those possessed by the employees for positions that are sufficiently similar to the position held by the employees. (1) A sufficiently similar position is one that is so much like the position for which the incentive is being requested in terms of grade level, minimum qualification requirements (including selective factors, if any), knowledges, skills, and abilities needed to perform the critical duties, etc., that it would be reasonable to expect that applicants for one would qualify for the other. NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 21 b) Local, regional, or nationwide employment trends and labor-market factors that may affect NNSA's ability to retain employees in the same or sufficiently similar positions. c) The salaries typically paid outside the Federal government for the same or sufficiently similar positions. Consideration may also be given to the calculated value of non-Federal benefits (i.e., health insurance, life insurance, vacation time, etc.) versus the estimated value of Federal benefits (calculated at 25 percent of annual rate of basic pay). d) Special or unique competencies required for the position and the extent to which the employees possess them by identifying the significant or critical work of the position, the knowledges, skills, and abilities needed to perform that work, and the employees' applicable qualifications, and the extent to which the employees'

departure would affect NNSA's ability to carry out an activity, perform a function, or complete a project NNSA deems essential to its mission. e) Efforts to use non-pay authorities, such as special training, alternative work scheduling flexibilities, flexi place arrangements, etc., to resolve difficulties alone or in combination with an incentive. f) The undesirability of the duties, work or organizational environment, or geographic location of the position in terms of exposure to hazards, extreme isolation, depressed local economy, lack of suitable housing, schools, or conveniences, or other disincentives (as applicable). g) Recent turnover in the same or sufficiently similar positions. h) Any other supporting factors (as applicable). 3) An employee who has not fulfilled an obligation pursuant to a service agreement established in connection with a recruitment or relocation incentive may not be considered for a retention incentive until the employee has satisfied that obligation. 4) Determining Amount of Incentive. a) The incentive amount should be the least amount necessary to retain the employees. b) In determining the size of the incentive, requesting officials must take into consideration budgetary issues (if any) and the employees' value to NNSA. NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 22 c) Decisions to offer or award a greater incentive to one employee than another for the same position must be supported by a written justification demonstrating that such difference in treatment is merit-based, fair, and equitable. d) A group retention incentive in excess of 10 percent is generally inappropriate unless one of the following conditions, or a similar condition, exists. (1) The employees' qualifications are unique and hard-to-find; (2) There are no other viable candidates who possess the skil1s necessary to perform the essential duties of the position; or (3) The loss of the employees would result in significant health, safety, or monetary risks to NNSA. e) A group retention incentive in excess of 25 percent is inappropriate unless a critical need exists, in which case, all of the following conditions must be met: (1) The employees' qualifications are unique and hard-to-find; (2) There are no other viable candidates who possess the qualifications necessary to perform the essential duties of the position; (3) The loss of the employees would result in significant health, safety, or monetary risks to NNSA; (4) The competencies required for the positions are critical to the successful accomplishment of a primary NNSA mission, project, or initiative (e.g., programs or projects related to a national emergency or implementing a new law or critical management initiative); and (5) The work of the positions is critical to and has a direct impact on the successful accomplishment of a primary NNSA mission, project, or initiative. f) A group retention incentive in excess of 10 percent and up to 50 percent must be approved by OPM. 5) Service Agreement. a) No service period agreement is required for a retention incentive of25 percent or less. NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 23 b) A 12-month service period agreement is required for a retention incentive of more than 25 percent and up to 50 percent. 6) Payment of Retention Incentives. a) Retention incentives are paid on a bi-weekly pay period basis of a set amount

(1/26" 1 of the gross incentive) for a period of no more than one year at a time. The gross bi-weekly retention incentive amount is added to the employee's gross salary for that pay period and taxes are calculated and withheld based on total salary to determine employee's net pay. (!) With bi-weekly payments, total annual payment amounts may vary from year to year because each calendar year does not always have 26 pay periods. Thus, the bi-weekly amount may need to be adjusted periodically to ensure the percentage of basic pay approved is not exceeded. b) Retention incentives are not considered part of an employee's rate of basic pay for retirement purposes or any other authority. c) Retention incentives count toward the aggregate limitation on pay under 5 CFR 530, Subpart B. 7) Annual Recertification of Retention Incentives. a) Requesting officials must recertify at least once each year that a retention incentive is still needed to retain the employees, and must carefully review the amount of the incentive to determine if a reduced amount or if termination of the retention incentive is appropriate. In order for a retention incentive to be continued beyond the current retention incentive period, the recertification request must be submitted and approved prior to the expiration of the current retention incentive period. b) Requesting officials must provide a written justification demonstrating that the conditions that warranted the initial retention incentive still exist (i.e., that the employees are still likely to leave Federal Service, that the employees' leaving would still adversely affect the organization's ability to conduct essential activities or functions, that there would still be difficulty in replacing the employees, and that the unusually high or unique qualifications of the employees, or a special need of NNSA for the employees' services, still make it essential to retain the employees), taking into account all of the factors that were addressed in NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 24 the original request and subsequent recertification requests (if any). c) Requesting officials must also address what specific actions were taken during the previous year to meet the goals of the previously developed written strategy for eliminating the need for the retention incentive (i.e., the success or failure of training or retraining other employees, skill replacement through additional hiring or targeted recruitment, or similar factors. 8) Reduction or Termination of Retention Incentives. a) The amount of the retention incentive must be reduced to the extent necessary or terminated to ensure that the employee's aggregate compensation does not exceed the aggregate limitation on pay under 5 CFR 530, Subpart B. b) The amount of the retention incentive must be reduced or terminated when a lesser amount or when none at all would be sufficient to retain the employees. c) The retention incentive must be terminated when the conditions that gave rise to the original determination no longer exist. d) The retention incentive must be terminated at the end of the one-year approved period of time if it is not extended through the recertification process. e) The retention incentive must be terminated if an employee either leaves the position for which the retention incentive was approved for any reason, fails to maintain a performance rating of record of at least "Fully Successful'' or

equivalent, fails to obtain/maintain the appropriate clearance level, or similar. t) The reduction or termination of a retention incentive may not be appealed. NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 25 e. Process. 1) The requesting official contacts the servicing Human Resources Consultant (HRC) for procedural guidance and/or data to support the justification. 2) The requesting official ensures funds are available. 3) The requesting official advises the appropriate approving official of the proposed request and obtains tentative approval. 4) The requesting official, in consultation and collaboration with the HRC, develops the written justification, and submits the justification in writing to the servicing HRC. 5) The servicing HRC reviews the request for regulatory compliance and completeness and forwards the request (through any intervening levels, if applicable) to the Human Resources Department Manager in the Service Center (or equivalent Human Resources official at Headquarters). 6) The Human Resources Department Manager in the Service Center (or equivalent Human Resources official at Headquarters) conducts a final review of the request for regulatory compliance and completeness and certifies that the request meets all requirements for approval. 7) The Human Resources Department Manager in the Service Center (or equivalent Human Resources official at Headquarters) forwards requests that are complete and meet all requirements for approval to the approving official for final approval or disapproval. 8) The Human Resources Department Manager in the Service Center (or equivalent Human Resources official at Headquarters) returns requests that are incomplete or do not meet all requirements for approval to the requesting official through the servicing HRC for additional justification, further discussion, etc., as necessary. 6. RESPONSIBILITIES. a. Administrator of the National Nuclear Security Administration. 1) Exercises the unique management and personnel authorities granted in Title 32 of the National Defense Authorization Act for Fiscal Year 2000, Public Law 106-65 (NNSA Act. NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 26 2) Ensures that the provisions of 5 CFR Part 575 are administered within NNSA and that NNSA employees are informed of relevant provisions. 3) Approves or disapproves requests for waivers of repayment of recruitment and relocation incentives received when recipients do not complete the required service agreement. 4) Approves or disapproves requests for recruitment, relocation, and retention incentives for SES, SL, ST, and EX employees and Excepted Service employees whose annual rate of basic pay exceeds the annual rate of basic pay for GS-15 Step 10. 5) Approves or disapproves requests for group recruitment and relocation incentives of up to 25% of annual rate of basic pay and group retention incentives of up to 10% of annual rate of basic pay. 6) Approves or disapproves requests for individual and group recruitment and relocation incentives in excess of 25% of annual rate of basic pay, individual retention incentives in excess of 25% of annual rate of basic pay, and group retention incentives in excess of 10% of annual rate of basic pay and submits approved requests to OPM through the Chief Human Capital Officer for final approval and authorization 7) Submits requests for recruitment, relocation, and retention incentives for all of his

direct reports to the Secretary of Energy for final disposition. b. NNSA Executive Resources Board (ERB). 1) Recommends approval or disapproval of tentatively approved requests for all recruitment, relocation, and retention incentives for SES, ST, and SL employees, and forwards to the Administrator of the National Nuclear Security Administration for final approval or disapproval. c. NNSA Director of Human Resources. 1) Develops policies and procedures for the implementation of the provisions of 5 CFR Part 575. 2) Provides advice and guidance on policies and procedures to ensure effective program implementation. NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 27 3) Recommends approval or disapproval of requests for waivers of repayment of recruitment and relocation incentives received when recipients do not complete the required service agreement and forwards to the Administrator of the National Nuclear Security Administration for final disposition. 4) Recommends approval or disapproval of requests for individual recruitment, relocation, and retention incentives in excess of25% of annual rate of basic pay, all group recruitment, relocation, and retention incentives, and all recruitment, relocation, and retention incentives for EX employees, and forwards to the Administrator of the National Nuclear Security Administration for final disposition. 5) Ensures that NNSA' s use of recruitment, relocation, and retention incentive incentives is monitored for consistency with the requirements established under 5 U.S.C. 5753 and 5754, 5 CFR 575, and this policy. 6) Periodically evaluates the effectiveness of pay flexibilities being utilized within NNSA. d. Human Resources Department Manager in the Service Center and equivalent Human Resources official at Headquarters. 1) Provide technical advice and assistance to supervisors and management officials in the implementation, benefits, requirements, mechanics, and operation of the NNSA Recruitment, Relocation, and Retention Incentives Program. 2) Conduct a final review of all requests for recruitment, relocation, and retention incentives for regulatory and policy compliance for employees within their servicing area. 3) Forward approvable requests for recruitment, relocation, and retention incentives to appropriate approving official or return requests that are not approvable to the appropriate HRC. 4) Ensure a record of each determination to pay (or not pay) a recruitment, relocation, or retention incentive is maintained in the Human Resources office, and that any required or requested reports are prepared and submitted. 5) Terminate retention incentives in the absence of approved recertification or when no longer needed, as appropriate. 6) Evaluate the effectiveness of the NNSA Recruitment, Relocation, and Retention Incentives Program within their servicing area. NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 28 e. Human Resources Consultants (HRCs). 1) Provide technical advice and assistance to supervisors and management officials on all aspects of the NNSA Recruitment, Relocation, and Retention Incentives Program, as well as other pay flexibilities. 2) Collaborate with requesting officials in the development of request packages for recruitment, relocation, and retention incentives. 3) Review requests for recruitment, relocation, and retention incentives for regulatory and policy compliance for employees within their servicing area.

4) Forward approvable requests for recruitment, relocation, and retention incentives to Human Resources Department Manager in the Service Center (and equivalent Human Resources official at Headquarters) for final regulatory compliance review or return requests that are not approvable to the requesting official for additional justification, further discussion, etc., as necessary. 5) Maintain necessary records and prepare reports, as directed. 6) Respond to inquiries concerning recruitment, relocation, and retention incentives for organizations for which they are responsible. 7) Issue reminder notices to supervisors and managers (requesting officials) when previously approved retention incentives are within 60 days of their expiration date. 8) Process personnel actions for recruitment, relocation, and retention incentives. 9) Maintain confidentiality on all personal information related to incentives. f. Site Office Managers, Service Center Associate Directors, the Assistant Deputy Secretary for Secure Transportation, and Heads of NNSA Headquarters First-Tier Elements. 1) Approve or disapprove requests for recruitment, relocation, and retention incentives that have been forwarded to them from the Human Resources Department Manager in the Service Center and equivalent Human Resources official at Headquarters. 2) Forward approved requests for recruitment, relocation, and retention incentives that require approval by the Administrator of the National Nuclear Security Administration or OPM to the Administrator of the National Nuclear Security Administration, through appropriate NNSA channels. NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 29 3) The determination to pay recruitment, relocation, and retention incentives, including the amount and duration, must be reviewed and approved by an official at a higher level than the official who made the request. g. Supervisors and Managers (Requesting Officials). 1) Discuss proposed requests for recruitment, relocation, and retention incentives with the servicing HRC. 2) Obtain approval from budget official and tentative approval from approving official prior to submitting requests to the servicing HRC. 3) Collaborate with the servicing HRC in the development of request packages for recruitment, relocation, and retention incentives. 4) Prepare and submit completed requests for recruitment, relocation, and retention incentives to the servicing HRC. 7. REFERENCES. a. 5 USC 5753 and 5754 b. 5 CFR Part 575 c. 5 CFR Part 530, Subpart B d. OPM Fact Sheets and Frequently Asked Questions (http://www.opm.gov/oca/index.asp) e. DOE O 322.1, Chapter Ill, Recruitment, Relocation, and Retention Incentives 8. POINT OF CONTACT. a. Human Resources Department in the Service Center b. Office of Human Resources at Headquarters http://www.opm.gov/oca/index.asp) NNSA RECRUITMENT, RELOCATION, AND RETENTION INCENTIVES PROGRAM 30 Attachments: I. Composite Request Form 2. Recruitment Incentive Checklist 3. Relocation Incentive Checklist 4. Retention Incentive Checklist - Initial Award 5. Retention Incentive Checklist - Recertification 6. Retention Incentive Checklist - Termination/Withdrawal 7. Recruitment Incentive Service Agreement 8. Relocation Incentive Service Agreement 9. Retention Incentive Memorandum of Understanding 10. Retention Incentive Service Agreement 11. Government-wide Direct-Hire Authorities Distribution: Deputy Administrators Associate Administrators Site Office Managers Service Center Manager