118 STAT. 2309 PUBLIC LAW 108–411—OCT. 30, 2004 lump sum at the end of the full period of service required by the agreement. ‘‘(B) An installment payment is derived by multiplying the amount of basic pay earned in the installment period by a percent age not to exceed the bonus percentage rate established for the employee. ‘‘(C) If the installment payment percentage established for the employee is less than the bonus percentage rate established for the employee, the accrued but unpaid portion of the bonus is payable as part of the final installment payment to the employee after completion of the full service period under the terms of the service agreement. ‘‘(D) For purposes of this paragraph, the bonus percentage rate established for an employee means the bonus percentage rate established for such employee in accordance with paragraph (1) or subsection (f), as the case may be. ‘‘(3) A retention bonus is not part of the basic pay of an employee for any purpose. ‘‘(f) Upon the request of the head of an agency, the Office may waive the limit established under subsection (e)(1) and permit the agency head to pay an otherwise eligible employee or category of employees retention bonuses of up to 50 percent of basic pay, based on a critical agency need. ‘‘(g) The Office shall require that, before paying any bonuses under this section, an agency shall establish a plan for the payment of any such bonuses, subject to regulations prescribed by the Office. ‘‘(h) The Office may prescribe regulations to carry out this section.’’. (2) CLERICAL AMENDMENT.—The table of sections for chapter 57 of title 5, United States Code, is amended by striking the item relating to section 5754 and inserting the following: ‘‘5754. Retention bonuses.’’. (3) SENSE OF CONGRESS.—It is the sense of the Congress that the Director of the Office of Personnel Management— (A) should, each time a bonus is paid under the amend ment made by paragraph (1) to recruit or relocate a Federal employee from one Government agency to another within the same geographic area or to retain a Federal employee who might otherwise leave one Government agency for another within the same geographic area, be notified of that payment within 60 days after the date on which such bonus is paid; and (B) should monitor the payment of such bonuses (in the circumstances described in subparagraph (A)) to ensure that they are an effective use of the Federal Government’s funds and have not adversely affected the ability of those Government agencies that lost employees to other Govern ment agencies (in such circumstances) to carry out their mission. (b) RELOCATION PAYMENTS.—Section 407 of the Federal Employees Pay Comparability Act of 1990 (5 U.S.C. 5305 note; 104 Stat. 1467) is repealed. (c) REPORTS.— (1) RECRUITMENT AND RELOCATION BONUSES.— (A) IN GENERAL.—The Office of Personnel Management shall submit to the Committee on Governmental Affairs of the Senate and the Committee on Government Reform
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