---
kind: "section"
citation: "5 C.F.R. § 536.208"
title: "5"
number: "536.208"
heading: "Termination of grade retention."
url: "https://uscodex.org/cfr/5/536.208"
---

# §536.208. Termination of grade retention.

- (a) Grade retention under [§ 536.201](/cfr/5/536.201.md) terminates if any of the conditions listed in [§ 536.207(a)](/cfr/5/536.207.md?p=a) occurs after commencement of the 2-year period of grade retention.
- (b) Grade retention under [§ 536.202](/cfr/5/536.202.md) terminates if any of the conditions listed in [§ 536.207(b)](/cfr/5/536.207.md?p=b) occurs after the commencement of the 2-year period of grade retention.
- (c) **Termination of grade retention benefits takes effect—**
  - (1) At the end of the day before separation from service if termination is the result of a break in service;
  - (2) At the end of the day before placement if the termination is the result of the employee's placement in another position; or
  - (3) **At the end of the last day of the pay period in which the employee—**
    - (i) Declines a reasonable offer;
    - (ii) Elects to terminate grade retention benefits (except that, if an employee's election specifically provides that the termination will take effect at the end of a later pay period, the election is considered to be made effective on the last day of that later pay period for the purpose of applying this paragraph); or
    - (iii) Fails to enroll in, or comply with reasonable written requirements established to assure full consideration under, a program providing priority consideration for placement.
- (d) If an employee's entitlement to grade retention terminates under this section, the employee's rate of basic pay must be set in accordance with the pay-setting rules and pay rates applicable to the employee's position of record (e.g., [5 CFR part 531](/cfr/5/part531.md), [subpart B](/cfr/5/subpartB.md), for GS positions). An employee is not entitled to pay retention under [subpart C](/cfr/5/subpartC.md) of this part based on a reduction in basic pay resulting from waiver of the employee's grade retention entitlement under paragraph [(a)(5)](/cfr/5/536.207.md?p=a-5) or [(b)](/cfr/5/536.207.md) of § 536.207.

## Notes

### Amendments

[70 FR 31305, May 31, 2005, as amended at 73 FR 66155, Nov. 7, 2008]

### Source

Source: 70 FR 31305, May 31, 2005, unless otherwise noted.

### Authority

Authority: 5 U.S.C. 5361-5366; sec. 4 of the Performance Management and Recognition System Termination Act of 1993 (Pub. L. 103-89), 107 Stat. 981; § 536.301(b) also issued under 5 U.S.C. 5334(b); § 536.308 also issued under sec. 301(d)(2) of the Federal Workforce Flexibility Act of 2004 (Pub. L. 108-411), 118 Stat. 2305; § 536.310 also issued under sections 1913 and 1918 of the Non-Foreign Area Retirement Equity Assurance Act of 2009 (subtitle B of title XIX of Pub. L.111-84), 123 Stat. 2619; § 536.405 also issued under 5 U.S.C. 552, Freedom of Information Act, Public Law 92-502.

### Source

Source: 45 FR 85656, Dec. 30, 1980, unless otherwise noted.

### Amendments

[70 FR 31305, May 31, 2005, as amended at 73 FR 66155, Nov. 7, 2008]