An extended assignment incentive is a payment, made at the Department's discretion, to an employee who has completed at least two years of continuous service in a difficult-to-fill position that is located in a covered area.

The purpose of the incentive is to ensure the employee's continued service in the covered area.

An employee whose official duty station is located in any of the following areas may receive an incentive:

• a U.S. territory or possession,



• Puerto Rico, or



• the Northern Mariana Islands.

An incentive may be paid in any amount that does not exceed the greater of:

• 25 per cent of an employee's annual rate of basic pay (see definition under 5 CFR 575.502 for "rate of basic pay") multiplied by the number of years in the service agreement; or


• $15,000 multiplied by the number of years in the service agreement.

Example:  Incentive payments to an employee on a three-year service agreement whose annual rate of basic pay is $42,976 may not exceed $45,000.

An employee may not receive an incentive while receiving a retention allowance, or while under a service agreement for a recruitment or relocation bonus.

An employee may not receive an incentive for continued service in a particular covered area for more than five years.

An incentive may be paid in a lump-sum (either at the beginning or at the completion of the service agreement), or in installment payments.

An incentive is not basic pay for any purpose.

Before an incentive may be paid, the employee must complete a written agreement to remain with the Department for a specified period of time.

Repayment:    If an employee voluntarily fails to complete the service agreement, the incentive must be repaid on a pro rata basis.

Statute:  5 U.S.C. 5757, as enacted by Section 207 of Public Law 107-273, Nov. 2, 2002

OPM Regulation:   5 CFR Part 575, Subpart E

Department order:   Part 2, Chapter 19 of DOJ Order 1200.1 (Jan. 10, 2005)

Related fact sheets:  Recruitment Incentives  Relocation Incentives  Retention Incentives