# § 10105. Retention bonuses
**(a)** **Authority.—** The Administrator may pay, on a case-by-case basis, a bonus under this section to an employee of the Agency if—
**(1)** the unusually high or unique qualifications of the employee or a special need of the Agency for the employee’s services makes it essential to retain the employee; and
**(2)** the Administrator determines that, in the absence of such a bonus, the employee would be likely to leave—
**(A)** the Federal service; or
**(B)** for a different position in the Federal service.
**(b)** **Service Agreement.—** Payment of a bonus under this section is contingent upon the employee entering into a written service agreement with the Agency to complete a period of service with the Agency. Such agreement shall include—
**(1)** the period of service the individual shall be required to complete in return for the bonus; and
**(2)** the conditions under which the agreement may be terminated before the agreed-upon service period has been completed, and the effect of the termination.
**(c)** **Bonus Amount.—**
**(1)** **In general.—** The amount of a bonus under this section shall be determined by the Administrator, but may not exceed 25 percent of the annual rate of basic pay of the position involved.
**(2)** **Form of payment.—** A bonus under this section shall be paid in the form of a lump-sum payment and shall not be considered to be part of basic pay.
**(d)** **Limitation.—** A bonus under this section—
**(1)** may not be based on any period of service which is the basis for a recruitment bonus under section 10104;
**(2)** may not be paid to an individual who is appointed to or holds—
**(A)** a position to which an individual is appointed by the President, by and with the advice and consent of the Senate;
**(B)** a position in the Senior Executive Service as a noncareer appointee (as defined in section 3132(a)); or
**(C)** a position which has been excepted from the competitive service by reason of its confidential, policy-determining, policy-making, or policy-advocating character; and
**(3)** upon completion of the strategic human capital plan, shall be paid in accordance with that plan.
**(e)** **Termination of Authority.—** The authority to grant bonuses under this section shall expire 5 years after the date of enactment of this chapter.
**(f)** **Reports.—**
**(1)** **In general.—** The Office of Personnel Management shall submit to the appropriate committees of Congress, annually for each of the first 5 years during which this section is in effect, a report on the operation of this section.
**(2)** **Contents.—** Each report submitted under this subsection shall include, with respect to the period covered by such report, a description of how the authority to pay bonuses under this section was used by the Agency, including, with respect to each such agency—
**(A)** the number and dollar amount of bonuses paid to individuals holding positions within each pay grade, pay level, or other pay classification; and
**(B)** a determination of the extent to which such bonuses furthered the purposes of this section.
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**Source Credit**: (Added Pub. L. 109–295, title VI, § 621(a), Oct. 4, 2006, 120 Stat. 1414.)
## Editorial Notes
### References in Text
The date of enactment of this chapter, referred to in subsec. (e), is the date of enactment of , which was approved .