Washington, D.C. 20530

June 17, 2005

MEMORANDUM TO COMPONENT HEADS

The Federal Workforce Flexibility Act of 2004 modified 5 USC §§ 5753 and 5754, changing the rules for recruitment, relocation, and retention bonuses, now called “incentives,” effective for any incentive offered after May 1, 2005. On May 13, 2005, the Office of Personnel Management (OPM) issued interim regulations (70 Fed.Reg. 25732) modifying 5 CFR § 530 and § 575, consistent with these statutory changes. Agencies are required to issue “plans” establishing agency policy concerning application of the three types of incentives before such incentives may be utilized.

The Department is currently drafting new plans to establish the Department’s policy on the application of each of the incentives. However, in order to allow components to continue to offer current incentives while the plans are pending, I have: 1) adopted the recruitment portion of DOJ Order 1200.1, Chapter 2-5, to the extent not inconsistent with 5 USC § 5753 and OPM interim regulations, as the Department’s recruitment incentive plan; 2) adopted the relocation portion of DOJ Order 1200.1, Chapter 2-5, to the extent not inconsistent with 5 USC § 5753 and OPM interim regulations, as the Department’s relocation plans; and, 3) adopted DOJ Order 1200.1, Chapter 2-6, to the extent not inconsistent with 5 USC § 5754 and OPM interim regulations, as the Department’s retention incentive plan.

Components should review the revised statutes and OPM interim regulations carefully before offering an incentive. Eligibility requirements and other rules have changed and while many have been expanded, some may be more restrictive. Components should insure that they maintain any records and documentation, beyond that currently required, that may be needed by the Department to comply with OPM interim regulations.

If your staff has questions, they may contact Debra M. Tomchek, Director, Human Resources Staff, on (202) 305-4976. If you would like to discuss or receive a briefing, please contact me on (202) 514-3101.