Washington, D.C. 20530

November 7, 1994

MEMORANDUM FOR BUREAU HEADS

The fulfillment of the mandate to downsize the Government workforce requires that Department components faced with reduction, relocation, or realignment of their workforce be provided additional flexibility to minimize the impact on current staff as they effect these actions.

To effectively meet these needs, this memorandum delegates to the heads of bureaus authority to grant grade and pay retention. Accordingly, this removes all limitations on any earlier delegations, and bureau heads may now authorize pay retention under the agency option provisions of Title 5, Code of Federal Regulations (CFR) �6.104(b) and grade retention under the agency option provisions of 5 CFR �6.103(b). Grade retention may be offered to eligible employees in situations not covered by mandatory grade retention provisions who are or might be reduced in grade as the result of a reorganization or reclassification decision announced by management in writing. Pay retention may be offered to eligible employees in situations not covered by mandatory pay retention provisions, and who would otherwise be reduced in grade as a result of a management action. The conditions under which this authority is granted are:

1. These authorities may not be redelegated. As a result, all grade and pay retention actions must be approved by the Bureau Head.



2. Neither grade nor pay retention may be authorized if an employee initiates the action for his or her benefit, convenience, or personal advantage, including consent to a demotion in lieu of one for personal cause or for failure to complete a supervisory probationary period. This restriction includes selection under a merit promotion announcement for a position not covered under an upward mobility program.



3. Individuals granted grade and/or pay retention under these authorities are subject to the priority placement plan consideration required by Order DOJ 1511.6, position Classification and Priority Placement Plan dated April 29, 1981.  [Note to Web readers:  On August 25, 1998, Chapter 2-4 of DOJ Order 1200.1 canceled DOJ Order 1511.6.]



4. Each grade or pay retention action taken under these authorities must be documented in accor- dance with 5 CFR sections 536.303 and 304.



5. Components shall provide the Director, Personnel Staff a quarterly report of grade and pay retention actions authorized under these delegated authorities.

If members of your staff have questions concerning this delegation they may be referred to Henry Romero, Director of Personnel on (202) 514-6788.

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