When does grade and pay retention apply?
These provide pay protection for employees whose grade or pay is reduced due to a management action for which they are not responsible, such as in a reduction in force or a reclassification of a position.

An agency must treat an employee’s retained grade as the employee’s grade for almost all purposes, including pay and pay administration and premium pay. Grade retention lasts two years unless it is ended for one of various reasons.
Pay retention similarly applies when an employee is downgraded for reasons other than personal decisions and can be ended for reasons similar to those applying to grade retention.

If an employee is under grade or pay retention prior to transferring to another agency, the gaining agency generally must continue the entitlement.

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