PUBLIC LAW 102-40—MAY 7, 1991 105 STAT. 189 "(3) is a reemployed annuitant. "(g)(1) In the case of a physician or dentist who is employed in a position that is covered by a determination by the Secretary under subsection (d)(l) that the Administration does not have a significant recruitment or retention problem with respect to a particular category of positions and who on the day before the effective date of this subchapter was receiving special pay under an agreement entered into under section 4118 of this title (as in effect before such date), the Secretary may pay to that physician or dentist, in addition to basic pay, retention pay under this subsection. "(2) The annual rate of such retention pay for any individual may not exceed the rate which, when added to the rate of basic pay payable to that individual, is equal to the sum of the annual rate of basic pay and the annual rate of special pay paid to that physician or dentist pursuant to the final agreement with that individual under such section 4118. "(3) Such retention pay shall be treated for all purposes as special pay paid under subchapter III of chapter 74 of this title. "(4) Retention pay under this subsection shall be paid under such regulations as the Secretary may prescribe. "§ 7432. Special pay: written agreements "(a) An agreement entered into by a physician or dentist under this subchapter shall cover a period of one year of service in the Vetersins Health Administration unless the physician or dentist agrees to an agreement for a longer period of service, not to exceed four years, as specified in the agreement. A physician or dentist who has previously entered into such an agreement is eligible to enter into a subsequent agreement unless the physician or dentist has fgiiled to refund to the United States any amount which the physician or dentist is obligated to refund under any such previous agreement. "(b)(1) An agreement under this subchapter shall provide that, if the physician or dentist entering into the agreement voluntarily, or because of misconduct, fails to complete any of the years of service covered by the agreement (measured from the anniversary date of the agreement), the physician or dentist shall refund an amount of special pay received under the agreement for that year equal to— "(A) in the case of a failure during the first year of service under the Eigreement, 100 percent of the amount received for that year; "(B) in the case of a failure during the second year of service under the agreement, 75 percent of the amount received for that year; "(C) in the case of a failure during the third year of service under the agreement, 50 percent of the amount received for that year; and "(D) in the case of a failure during the fourth year of service under the agreement, 25 percent of the amount received for that year. "(2) The Secretary may waive (in whole or in part) the requirement for a refund under paragraph (1) in any case if the Secretary determines (in accordance with regulations prescribed under section 7431(a) of this title) that the failure to complete such period of service is the result of circumstances beyond the control of the physician or dentist.