---
kind: "section"
citation: "5 C.F.R. § 9701.356"
title: "5"
number: "9701.356"
heading: "Pay retention."
url: "https://uscodex.org/cfr/5/9701.356"
---

# §9701.356. Pay retention.

- (a) Subject to the requirements of this section, DHS will, after coordination with OPM, issue implementing directives regarding the application of pay retention. Pay retention prevents a reduction in basic pay that would otherwise occur by preserving the former rate of basic pay within the employee's new band or by establishing a retained rate that exceeds the maximum rate of the new band.
- (b) Pay retention must be based on the employee's rate of basic pay in effect immediately before the action that would otherwise reduce the employee's rate. A retained rate must be compared to the range of rates of basic pay applicable to the employee's position.
- (c) In applying [§ 9701.323](/cfr/5/9701.323.md) (regarding pay increases provided at the time of a rate range adjustment under [§ 9701.322](/cfr/5/9701.322.md)), any increase in the rate of basic pay for an employee receiving a retained rate is equal to one-half of the percentage value of any increase in the minimum rate of the employee's band.

## Notes

### Authority

Authority: 5 U.S.C. 9701.

### Source

Source: 70 FR 5318, Feb. 1, 2005, unless otherwise noted.