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38 U.S.C. § 706 — Additional authority relating to recruitment and retention of personnel

Federal law — U.S. Code and appendices · legal_authorities

38 U.S.C. § 706 — Additional authority relating to recruitment and retention of personnel

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Source file: Laws/federal/codes/united-states-code/title-38/section-706-additional-authority-relating-to-recruitment-and-retention-of-personnel--a32390658a.md
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Source location: Title 38, Chapter 7, § 706; chapter-007-employees.md

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**(a) Recruitment and Relocation Bonuses.—** The Secretary may pay a recruitment or relocation bonus under [section 5753(e) of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section5753/e&num=0&edition=prelim) without regard to any requirements for certification or approval under that section. **(b) Retention Bonuses.—** (1) The Secretary may pay a retention bonus under [section 5754(f) of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section5754/f&num=0&edition=prelim) without regard to any requirement for certification or approval under that subsection. (2) The Secretary may pay a retention bonus as specified in subsection (e)(2) of [section 5754 of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section5754&num=0&edition=prelim) and may pay the bonus as a single lump-sum payment at the beginning of the full period of service required by an agreement under subsection (d) of such section. **(c) Merit Awards.—** The Secretary may grant a cash award under [section 4502(b) of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section4502/b&num=0&edition=prelim) without regard to any requirement for certification or approval under that section. **(d) Incentives for Critical Skills.—** (1) Subject to the provisions of this paragraph, the Secretary may provide a critical skill incentive to an employee in a case in which the Secretary determines— (A) the employee possesses a high-demand skill or skill that is at a shortage; (B) such skill is directly related to the duties and responsibilities of the employee’s position; and (C) employment of an individual with such skill in such position serves a critical mission-related need of the Department. (2) An incentive provided to an employee under paragraph (1) may not to 11 So in original. The word “to” probably should not appear. exceed 25 percent of the basic pay of the employee. (3) Provision of an incentive under paragraph (1) shall be contingent on the employee entering into a written agreement to complete a period of employment with the Department. (4) An incentive provided under paragraph (1) shall not be considered basic pay for any purpose. (5) The Secretary may prescribe conditions, including with respect to eligibility, and limitations on provision of incentive 22 So in original. Probably should be preceded by “an”. under paragraph (1). (6) Incentive 33 So in original. Probably should be “An incentive”. provided under paragraph (1) shall not be included in the calculation of total amount of compensation under [section 7431(e)(4) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section7431/e/4&num=0&edition=prelim). (7) (A) Subject to subparagraph (B)(ii), a critical skill incentive may not be provided under paragraph (1) to an employee of the Department employed in a Senior Executive Service position, or a position in another comparable system for senior-level Government employees, as defined by the Secretary, whose position is at the Central Office of the Department, including the Veterans Health Administration, the Veterans Benefits Administration, and the National Cemetery Administration, regardless of the actual location where the employee performs the functions of the position. (B) (i) A critical skill incentive provided under paragraph (1) to an employee of the Department employed in a Senior Executive Service position, or a position in another comparable system for senior-level Government employees, as defined by the Secretary, not described in subparagraph (A) of this paragraph may only be provided— (I) on an individual basis and may not be provided to a group of such employees; and (II) upon approval of the following officers or those serving in an acting capacity: (aa) The Under Secretary for Benefits, the Under Secretary for Health, or the Under Secretary for Memorial Affairs. (bb) The Assistant Secretary for Human Resources and Administration. (cc) The Director of the Office of Management or the Chief Financial Officer. (dd) The Assistant Secretary for Accountability and Whistleblower Protection. (ee) The General Counsel. (ff) Such other officers as the Secretary determines appropriate. (ii) In the case of an employee of the Department employed in a Senior Executive Service position, or a position in another comparable system for senior-level Government employees, as defined by the Secretary, whose position is primarily at the Central Office of the Department, but who performs some portion of the employee’s job function at other facilities of the Department, as defined by the Secretary, not at Central 44 So in original. Probably should be preceded by “the”. Office— (I) the employee shall not be considered described in subparagraph (A) with respect to the portion of the employee’s job function that is based out of non-Central Office facilities of the Department; and (II) any critical skill incentive provided under paragraph (1) to the employee for the portion of the employee’s job function that is based out of facilities of the Department other than the Central Office shall be proportionate to the time spent at those Department facilities. (C) (i) Not later than one year after the date of the enactment of the Protecting Regular Order for Veterans Act of 2025, and not less frequently than once each year thereafter, the Secretary shall submit to the Committee on Veterans’ Affairs of the Senate and the Committee on Veterans’ Affairs of the House of Representatives an annual report on the employees of the Department employed in a Senior Executive Service position, or a position in another comparable system for senior-level Government employees, as defined by the Secretary, who were provided a critical skill incentive under paragraph (1). (ii) Reports submitted pursuant to clause (i) may be submitted by incorporating their contents into other congressionally mandated reports to the committees described in such clause. (D) In this paragraph, the term “Senior Executive Service position” has the meaning given such term in [section 3132(a) of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section3132/a&num=0&edition=prelim). **(e) Student Loan Repayments.—** (1) Subject to the provisions of this subsection, the Secretary may repay a student loan pursuant to [section 5379(b) of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section5379/b&num=0&edition=prelim). (2) Paragraph (2) of such section shall not apply to payment under this subsection. (3) Payment under this subsection shall be made subject to such terms, limitations, or conditions as may be mutually agreed to by the Secretary and the employee concerned, except that the amount paid by the Secretary under this subsection may not exceed— (A) $40,000 for any employee in any calendar year; or (B) a total of $100,000 in the case of any employee. **(f) Expedited Hiring Authority for College Graduates; Competitive Service.—** (1) Subject to paragraph (2) of this subsection, the Secretary may expedite hiring for college graduates under [section 3115 of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section3115&num=0&edition=prelim) without regard to subsection (e) of such section or any regulations prescribed by the Office of Personnel Management for administration of such subsection. (2) The number of employees the Secretary may appoint under [section 3115 of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section3115&num=0&edition=prelim) may not exceed the number equal to 25 percent of individuals that the Secretary appointed during the previous fiscal year to a position in the competitive service classified in a professional or administrative occupational category, at the GS–11 level, or an equivalent level, or below, under a competitive examining procedure. **(g) Expedited Hiring Authority for Post-secondary Students; Competitive Service.—** (1) Subject to paragraph (2) of this subsection, the Secretary may expedite hiring of post-secondary students under [section 3116 of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section3116&num=0&edition=prelim), without regard to subsection (d) of such section or any regulations prescribed by the Office of Personnel Management for administration of such subsection. (2) The number of employees the Secretary may appoint under [section 3116 of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section3116&num=0&edition=prelim) may not exceed the number equal to 25 percent of the number of students that the Secretary appointed during the previous fiscal year to a position at the GS–11 level, or an equivalent level, or below. **(h) Pay Authority for Critical Positions.—** (1) Subject to the provisions of this subsection, the Secretary may authorize the fixing of the rate of pay for a critical position in the Department consistent with the authorities and requirements of [section 5377 of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section5377&num=0&edition=prelim) that apply to the Office of Personnel Management. (2) The Secretary may fix the rate of pay for a critical position under this subsection in excess of the limitation set forth by section 5377(d)(2) of such title. (3) Basic pay may not be fixed under this subsection at a rate greater than the rate payable for the Vice President of the United States established under [section 104 of title 3](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title3-section104&num=0&edition=prelim), except upon written approval of the President. (4) Notwithstanding [section 5377(f) of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section5377/f&num=0&edition=prelim), the Secretary may authorize the exercise of authority under this subsection with respect to up to 200 positions at any time. **(i) Rates of Special Pay.—** (1) The Secretary may establish a rate for special pay under [section 5305(a)(1) of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section5305/a/1&num=0&edition=prelim). (2) In applying such section to the Secretary’s authority under paragraph (1)— (A) “50 percent” shall be substituted for “30 percent”; and (B) “level II of the Executive Schedule” shall be substituted for “level IV of the Executive Schedule”. **(j) Waiver of Limitations on Certain Payments Under Pay Comparability System.—** The Secretary may waive the limitation in [section 5307 of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section5307&num=0&edition=prelim) for an employee or a payment. **(k) Termination.—** The authorities under this section shall terminate on September 30, 2027.

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Federal law — U.S. Code and appendices · legal_authorities

5 U.S.C. § 5307 — Limitation on certain payments

**(a)** (1) Except as otherwise permitted by or under law, or as otherwise provided under subsection (d), no allowance, differential, bonus, award, or other similar cash payment under this title may be paid to an employee in a calendar year if, or to the extent that, when added to the total basic pay paid or payable to such employee for service performed in such calendar year as an employee in the executive branch (or as an employee outside the executive branch to whom chapter 51 applies), such payment would cause the total to exceed the annual rate of basic pay payable for level I of the Executive Schedule, as of the end of such calendar year. (2) This section shall not apply to any payment under— (A) subchapter III or VII of chapter 55 or section 5596; (B) chapter 57 (other than section 5753, 5754, 5755, or 5757); 11 See References in Text note below. or (C) chapter 59 (other than section 5925, 5928, 5941(a)(2), or 5948). **(b)** (1) Any amount which is not paid to an employee in a calendar year because of the limitation under subsection (a) shall be paid to such employee in a lump sum at the beginning of the following calendar year. (2) Any amount paid under this subsection in a calendar year shall be taken into account for purposes of appying 22 So in original. Probably should be “applying”. the limitations under subsection (a) with respect to such calendar year. **(c)** The Office of Personnel Management shall prescribe such regulations as may be necessary to carry out this section (subject to subsection (d)), including regulations (consistent with section 5582) concerning how a lump-sum payment under subsection (b) shall be made with respect to any employee who dies before an amount payable to such employee under subsection (b) is made. **(d)** (1

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Federal law — U.S. Code and appendices · legal_authorities

5 U.S.C. § 5377 — Pay authority for critical positions

**(a)** For the purpose of this section— (1) the term “agency” has the meaning given it by section 5102; and (2) the term “position” means— (A) a position to which chapter 51 applies, including a position in the Senior Executive Service or the Federal Bureau of Investigation and Drug Enforcement Administration Senior Executive Service; (B) a position under the Executive Schedule under sections 5312–5317; (C) a position to which section 5372 applies (or would apply, but for this section); (D) a position to which section 5372a applies (or would apply, but for this section); (E) a position established under section 3104; (F) a position in a category as to which a designation is in effect under subsection (i); and (G) a position at the Federal Bureau of Investigation, the primary duties and responsibilities of which relate to intelligence functions (as determined by the Director of the Federal Bureau of Investigation). **(b)** Authority under this section— (1) may be granted or exercised only with respect to a position— (A) which requires expertise of an extremely high level in a scientific, technical, professional, or administrative field; and (B) which is critical to the agency’s successful accomplishment of an important mission; and (2) may be granted or exercised only to the extent necessary to recruit or retain an individual exceptionally well qualified for the position. **(c)** The Office of Personnel Management, in consultation with the Office of Management and Budget, may, upon the request of the head of an agency, grant authority to fix the rate of basic pay for 1 or more positions in such agency in accordance with this section. **(d)** (1) The rate of basic pay fixed under this section by an agency head may not be less than the r

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38 U.S.C. § 101 — Definitions

For the purposes of this title— (1) The terms “Secretary” and “Department” mean the Secretary of Veterans Affairs and the Department of Veterans Affairs, respectively. (2) The term “veteran” means a person who served in the active military, naval, air, or space service, and who was discharged or released therefrom under conditions other than dishonorable. (3) The term “surviving spouse” means (except for purposes of chapter 19 of this title) a person who was the spouse of a veteran at the time of the veteran’s death, and who lived with the veteran continuously from the date of marriage to the date of the veteran’s death (except where there was a separation which was due to the misconduct of, or procured by, the veteran without the fault of the spouse) and who has not remarried. (4) (A) The term “child” means (except for purposes of chapter 19 of this title (other than with respect to a child who is an insurable dependent under subparagraph (B) or (C) of section 1965(10) of such chapter) and [section 8502(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section8502/b&num=0&edition=prelim)) a person who is unmarried and— (i) who is under the age of eighteen years; (ii) who, before attaining the age of eighteen years, became permanently incapable of self-support; or (iii) who, after attaining the age of eighteen years and until completion of education or training (but not after attaining the age of twenty-three years), is pursuing a course of instruction at an approved educational institution; and who is a legitimate child, a legally adopted child, a stepchild who is a member of a veteran’s household or was a member at the time of the veteran’s death, or an illegitimate child but, as to the alleged father, onl

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3 U.S.C. § 104 — Salary of the Vice President

**(a)** The per annum rate of salary of the Vice President of the United States shall be the rate determined for such position under chapter 11 of title 2, as adjusted under this section. Subject to subsection (b), effective at the beginning of the first month in which an adjustment takes effect under [section 5303 of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section5303&num=0&edition=prelim) in the rates of pay under the General Schedule, the salary of the Vice President shall be adjusted by an amount, rounded to the nearest multiple of $100 (or if midway between multiples of $100, to the nearest higher multiple of $100), equal to the percentage of such per annum rate which corresponds to the most recent percentage change in the ECI (relative to the date described in the next sentence), as determined under section 704(a)(1) of the Ethics Reform Act of 1989. The appropriate date under this sentence is the first day of the fiscal year in which such adjustment in the rates of pay under the General Schedule takes effect. **(b)** In no event shall the percentage adjustment taking effect under the second and third sentences of subsection (a) in any calendar year (before rounding) exceed the percentage adjustment taking effect in such calendar year under [section 5303 of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section5303&num=0&edition=prelim) in the rates of pay under the General Schedule.

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5 U.S.C. § 3116 — Expedited hiring authority for post-secondary students; competitive service

**(a) Definitions.—** In this section: (1) **Director.—** — The term “Director” means the Director of the Office of Personnel Management. (2) **Institution of higher education.—** — The term “institution of higher education” has the meaning given the term in section 101(a) of the Higher Education Act of 1965 ([20 U.S.C. 1001(a)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1001/a&num=0&edition=prelim)). (3) **Student.—** — The term “student” means an individual enrolled or accepted for enrollment in an institution of higher education who is pursuing a baccalaureate or graduate degree on at least a part-time basis as determined by the institution of higher education. **(b) Appointment.—** (1) **In general.—** — The head of an agency may make a time-limited appointment of a student, without regard to any provision of sections 3309 through 3319 and 3330, to a position in the competitive service at the GS–11 level, or an equivalent level, or below for which the student is qualified. (2) **Restrictions.—** — An appointment under paragraph (1) shall be made in accordance with regulations prescribed by the Director. **(c) Public Notice.—** (1) **In general.—** — The head of an agency making an appointment under subsection (b) shall publicly advertise positions available under this section. (2) **Requirements.—** — In carrying out paragraph (1), the head of an agency shall— (A) adhere to merit system principles; (B) advertise positions in a manner that provides for diverse and qualified applicants; and (C) ensure potential applicants have appropriate information relevant to the positions available. **(d) Limitation on Appointments.—** (1) **In general.—** — Except as provided in paragraph (2), the total number of students that

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38 U.S.C. § 1906 — Policy provisions

Provisions for cash, loan, paid-up, and extended values, dividends from gains and savings, refund of unearned premiums, and such other provisions as may be found to be reasonable and practicable may be provided for in the policy of insurance from time to time by regulations promulgated by the Secretary.

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5 U.S.C. § 5754 — Retention bonuses

**(a)** (1) This section may be applied to— (A) employees covered by the General Schedule pay system established under subchapter III of chapter 53; and (B) employees in a category approved by the Office of Personnel Management at the request of the head of an Executive agency. (2) A bonus may not be paid under this section to an individual who is appointed to or who holds— (A) a position to which an individual is appointed by the President, by and with the advice and consent of the Senate, excluding members of the Foreign Service other than chiefs of mission and ambassadors at large; (B) a position in the Senior Executive Service as a noncareer appointee (as such term is defined under 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. (3) In this section, the term “employee” has the meaning given that term in section 2105, except that such term also includes an employee described in subsection (c) of that section. **(b)** The Office of Personnel Management may authorize the head of an agency to pay a retention bonus to an employee 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 agency determines that, in the absence of a retention bonus, the employee would be likely to leave— (A) the Federal service; or (B) for a different position in the Federal service under conditions described in regulations of the Office. **(c)** The Office may authorize the head of an agency to pay retention bonuses to a group of employees in 1 or more categories of positions in 1 or more geographic are

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5 U.S.C. § 3115 — Expedited hiring authority for college graduates; competitive service

**(a) Definitions.—** In this section: (1) **Director.—** — The term “Director” means the Director of the Office of Personnel Management. (2) **Institution of higher education.—** — The term “institution of higher education” has the meaning given the term in section 101(a) of the Higher Education Act of 1965 ([20 U.S.C. 1001(a)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1001/a&num=0&edition=prelim)). **(b) Appointment.—** (1) **In general.—** — The head of an agency may appoint, without regard to any provision of sections 3309 through 3319 and 3330, a qualified individual to a position in the competitive service classified in a professional or administrative occupational category at the GS–11 level, or an equivalent level, or below. (2) **Restrictions.—** — An appointment under paragraph (1) shall be made in accordance with regulations prescribed by the Director. **(c) Qualifications for Appointment.—** The head of an agency may make an appointment under subsection (b) only if the individual being appointed— (1) has received a baccalaureate or graduate degree from an institution of higher education; (2) applies for the position— (A) not later than 2 years after the date on which the individual being appointed received the degree described in paragraph (1); or (B) in the case of an individual who has completed a period of not less than 4 years of obligated service in a uniformed service, not later than 2 years after the date of the discharge or release of the individual from that service; and (3) meets each minimum qualification standard prescribed by the Director for the position to which the individual is being appointed. **(d) Public Notice and Advertising.—** (1) **In general.—** — The head of an agency making an app

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5 U.S.C. § 5379 — Student loan repayments

**(a)** (1) For the purpose of this section— (A) the term “agency” means an agency under subparagraph (A), (B), (C), (D), or (E) of [section 4101(1) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section4101/1&num=0&edition=prelim), the Architect of the Capitol, the Botanic Garden, and the Office of Congressional Accessibility Services; and (B) the term “student loan” means— (i) a loan made, insured, or guaranteed under part B of title IV of the Higher Education Act of 1965 ([20 U.S.C. 1071](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1071&num=0&edition=prelim) et seq.); (ii) a loan made under part D or E of title IV of the Higher Education Act of 1965 ([20 U.S.C. 1087a](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title20-section1087a&num=0&edition=prelim) et seq., 1087aa et seq.); and (iii) a health education assistance loan made or insured under part A of title VII of the Public Health Service Act ([42 U.S.C. 292](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section292&num=0&edition=prelim) et seq.) or under part E of title VIII of such Act ([42 U.S.C. 297a](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section297a&num=0&edition=prelim) et seq.). (2) An employee shall be ineligible for benefits under this section if the employee occupies a position that is excepted from the competitive service because of its confidential, policy-determining, policy-making, or policy-advocating character. **(b)** (1) The head of an agency may, in order to recruit or retain highly qualified personnel, establish a program under which the agency may agree to repay (by direct payments on behalf of the employee) any student loan previou

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5 U.S.C. § 5332 — The General Schedule

**(a)** (1) The General Schedule, the symbol for which is “GS”, is the basic pay schedule for positions to which this subchapter applies. Each employee to whom this subchapter applies is entitled to basic pay in accordance with the General Schedule. (2) The General Schedule is a schedule of annual rates of basic pay, consisting of 15 grades, designated “GS–1” through “GS–15”, consecutively, with 10 rates of pay for each such grade. The rates of pay of the General Schedule are adjusted in accordance with section 5303. **(b)** When payment is made on the basis of an hourly, daily, weekly, or biweekly rate, the rate is computed from the appropriate annual rate of basic pay named by subsection (a) of this section in accordance with the rules prescribed by [section 5504(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section5504/b&num=0&edition=prelim).

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