---
kind: "section"
citation: "5 C.F.R. § 575.304"
title: "5"
number: "575.304"
heading: "Ineligible categories of employees."
url: "https://uscodex.org/cfr/5/575.304"
---

# §575.304. Ineligible categories of employees.


An agency may not pay a retention incentive to an employee in—

- (a)
  - (1) A position to which an individual is appointed by the President, by and with the advice and consent of the Senate;
  - (2) A position in the Senior Executive Service as a noncareer appointee (as defined in [5 U.S.C. 3132(a)(7)](/usc/5/3132.md?p=a-7));
  - (3) A position excepted from the competitive service by reason of its confidential, policy-determining, policy-making, or policy-advocating character; or
  - (4) **A position not otherwise covered by the exclusions in paragraphs (a), (b), and (c) of this section—**
    - (i) To which an individual is appointed by the President without the advice and consent of the Senate, except a Senior Executive Service position in which the individual serves as a career appointee (as defined in [5 U.S.C. 3132(a)(4)](/usc/5/3132.md?p=a-4));
    - (ii) Designated as the head of an agency, including an agency headed by a collegial body composed of two or more individual members;
    - (iii) In which the employee is expected to receive an appointment as the head of an agency; or
    - (iv) To which an individual is appointed as a Senior Executive Service limited term appointee or limited emergency appointee (as defined in 5 U.S.C. [3132(a)(5)](/usc/5/3132.md?p=a-5) and [(a)(6)](/usc/5/3132.md?p=a-6), respectively) when the appointment must be cleared through the White House Office of Presidential Personnel.
- (b) **Notwithstanding any provision in this subpart, an agency may—**
  - (1) Continue to pay a retention incentive to an employee whose position is moved into Schedule Policy/Career based on the terms of the service agreement and require the employee to fulfill that agreed-upon service period; and
  - (2) Continue to pay a retention incentive to an employee whose position is moved into Schedule Policy/Career at a time when the employee is receiving a retention incentive without a service agreement, so long as the agency finds that the payment otherwise continues to be warranted in consideration of the factors set forth in [§ 575.311(f)](/cfr/5/575.311.md?p=f).

## Notes

### Amendments

[91 FR 5656, Feb. 6, 2026]

### Source

Source: 70 FR 25747, May 13, 2005, unless otherwise noted.

### Authority

Authority: 5 U.S.C. 1104(a)(2) and 5307. Subparts A and B also issued under 5 U.S.C. 5753. Subpart C also issued under 5 U.S.C. 5754. Subpart D also issued under 5 U.S.C. 5755. Subpart E also issued under 5 U.S.C. 5757 and sec. 207 Pub. L. 107-273, 116 Stat. 1780 (5 U.S.C. 5307 note).

### Source

Source: 56 FR 12838, Mar. 28, 1991, unless otherwise noted.

### Amendments

[91 FR 5656, Feb. 6, 2026]