---
kind: "section"
citation: "12 U.S.C. § 5432"
title: "12"
title_heading: "Banks and Banking"
number: "5432"
heading: "Transfer of employees"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/5432"
units:
  - "Chapter 53 — Wall Street Reform and Consumer Protection"
  - "Subchapter III — Transfer of Powers to the Comptroller of the Currency, the Corporation, and the Board of Governors"
  - "Part B — Transitional Provisions"
---

# §5432. Transfer of employees

- (a) **In general—**
  - (1) **Office of Thrift Supervision employees—**
    - (A) **In general—** Except as provided in [section 5584 of this title](/usc/12/5584.md), all employees of the [Office](/usc/12/5341.md?p=1) of Thrift Supervision shall be transferred to the [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7) for employment in accordance with this section.
    - (B) **Allocating employees for transfer to receiving agencies—** The [Director](/usc/12/5341.md?p=1) of the [Office](/usc/12/5341.md?p=1) of Thrift Supervision, the Comptroller of the Currency, and the [Chairperson](/usc/12/5311.md?p=a-2) of the [Corporation](/usc/12/5301.md?p=7) shall—
      - (i) jointly determine the number of employees of the [Office](/usc/12/5341.md?p=1) of Thrift Supervision necessary to perform or support the functions that are transferred to the [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7) by this title;[^1] and
      - (ii) consistent with the determination under [clause (i)](#a-1-B-i), jointly identify employees of the [Office](/usc/12/5341.md?p=1) of Thrift Supervision for transfer to the [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7).
  - (2) **Employees transferred; service periods credited—** For purposes of this section, periods of service with a Federal home loan [bank](/usc/12/5301.md?p=18-A), a joint [office](/usc/12/5341.md?p=1) of Federal home loan [banks](/usc/12/5301.md?p=18-A), or a Federal reserve [bank](/usc/12/5301.md?p=18-A) shall be credited as periods of service with a Federal agency.
  - (3) **Appointment authority for excepted service transferred—**
    - (A) **In general—** Except as provided in [subparagraph (B)](#a-3-B), any appointment authority of the [Office](/usc/12/5341.md?p=1) of Thrift Supervision under Federal law that relates to the functions transferred under [section 5412 of this title](/usc/12/5412.md), [including](/usc/12/5301.md?p=18-A) the regulations of the [Office](/usc/12/5341.md?p=1) of Personnel Management, for filling the positions of employees in the excepted service shall be transferred to the Comptroller of the Currency or the [Chairperson](/usc/12/5311.md?p=a-2) of the [Corporation](/usc/12/5301.md?p=7), as appropriate.
    - (B) **Declining transfers allowed—** The Comptroller of the Currency or the [Chairperson](/usc/12/5311.md?p=a-2) of the [Corporation](/usc/12/5301.md?p=7) may decline to accept a transfer of authority under [subparagraph (A)](#a-3-A) (and the employees appointed under that authority) to the extent that such authority relates to positions excepted from the competitive service because of their confidential, policy-making, policy-determining, or policy-advocating character.
  - (4) **Additional appointment authority—** Notwithstanding any other provision of law, the [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency and the [Corporation](/usc/12/5301.md?p=7) may appoint transferred employees to positions in the [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7), respectively.
- (b) **Timing of transfers and position assignments—** Each employee to be transferred under [subsection (a)(1)](#a-1) shall—
  - (1) be transferred not later than 90 days after the [transfer date](/usc/12/5301.md?p=17); and
  - (2) receive notice of the position assignment of the employee not later than 120 days after the effective date of the transfer of the employee.
- (c) **Transfer of functions—**
  - (1) **In general—** Notwithstanding any other provision of law, the transfer of employees under this part shall be deemed a transfer of functions for the purpose of [section 3503 of title 5](/usc/5/3503.md).
  - (2) **Priority—** If any provision of this part conflicts with any protection provided to a transferred employee under [section 3503 of title 5](/usc/5/3503.md), the provisions of this part shall [control](/usc/12/5301.md?p=18-A).
- (d) **Employee status and eligibility—** The transfer of functions and employees under this part, and the abolishment of the [Office](/usc/12/5341.md?p=1) of Thrift Supervision under [section 5413 of this title](/usc/12/5413.md), shall not affect the status of the transferred employees as employees of an agency of the United States under any provision of law.
- (e) **Equal status and tenure positions—**
  - (1) **Status and tenure—** Each transferred employee from the [Office](/usc/12/5341.md?p=1) of Thrift Supervision shall be placed in a position at the [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7) with the same status and tenure as the transferred employee held on the day before the date on which the employee was transferred.
  - (2) **Functions—** To the extent practicable, each transferred employee shall be placed in a position at the [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7), as applicable, responsible for the same functions and duties as the transferred employee had on the day before the date on which the employee was transferred, in accordance with the expertise and preferences of the transferred employee.
- (f) **No additional certification requirements—** An examiner who is a transferred employee shall not be subject to any additional certification requirements before being placed in a comparable position at the [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7), if the examiner carries out examinations of the same type of institutions as an employee of the [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7) as the employee was responsible for carrying out before the date on which the employee was transferred.
- (g) **Personnel actions limited—**
  - (1) **Protection—**
    - (A) **In general—** Except as provided in [paragraph (2)](#g-2), each affected employee shall not, during the 30-month period beginning on the [transfer date](/usc/12/5301.md?p=17), be involuntarily separated, or involuntarily reassigned outside his or her locality pay area.
    - (B) **Affected employees—** For purposes of this paragraph, the term “affected employee” means—
      - (i) an employee transferred from the [Office](/usc/12/5341.md?p=1) of Thrift Supervision holding a permanent position on the day before the [transfer date](/usc/12/5301.md?p=17); and
      - (ii) an employee of the [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7) holding a permanent position on the day before the [transfer date](/usc/12/5301.md?p=17).
  - (2) **Exceptions—** [Paragraph (1)](#g-1) does not limit the right of the [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7) to—
    - (A) separate an employee for cause or for unacceptable performance;
    - (B) terminate an appointment to a position excepted from the competitive service because of its confidential policy-making, policy-determining, or policy-advocating character; or
    - (C) reassign an employee outside such employee’s locality pay area when the [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7) determines that the reassignment is necessary for the efficient operation of the agency.
- (h) **Pay—**
  - (1) **30-month protection—** Except as provided in [paragraph (2)](#h-2), during the 30-month period beginning on the date on which the employee was transferred under this part, a transferred employee shall be paid at a rate that is not less than the basic rate of pay, [including](/usc/12/5301.md?p=18-A) any geographic differential, that the transferred employee received during the pay period immediately preceding the date on which the employee was transferred. Notwithstanding the preceding sentence, if the employee was receiving a higher rate of basic pay on a temporary basis (because of a temporary assignment, temporary promotion, or other temporary action) immediately before the transfer, the Agency may reduce the rate of basic pay on the date the rate would have been reduced but for the transfer, and the protected rate for the remainder of the 30-month period will be the reduced rate that would have applied but for the transfer.
  - (2) **Exceptions—** The Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7) may reduce the rate of basic pay of a transferred employee—
    - (A) for cause, [including](/usc/12/5301.md?p=18-A) for unacceptable performance; or
    - (B) with the consent of the transferred employee.
  - (3) **Protection only while employed—** This subsection shall apply to a transferred employee only during the period that the transferred employee remains employed by [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7).
  - (4) **Pay increases permitted—** Nothing in this subsection shall limit the authority of the Comptroller of the Currency or the [Chairperson](/usc/12/5311.md?p=a-2) of the [Corporation](/usc/12/5301.md?p=7) to increase the pay of a transferred employee.
- (i) **Benefits—**
  - (1) **Retirement benefits for transferred employees—**
    - (A) **In general—**
      - (i) **Continuation of existing retirement plan—** Each transferred employee shall remain enrolled in the retirement plan of the transferred employee, for as long as the transferred employee is employed by the [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7).
      - (ii) **Employer’s contribution—** The Comptroller of the Currency or the [Chairperson](/usc/12/5311.md?p=a-2) of the [Corporation](/usc/12/5301.md?p=7), as appropriate, shall pay any employer contributions to the existing retirement plan of each transferred employee, as required under each such existing retirement plan.
    - (B) **Definition—** In this paragraph, the term “existing retirement plan” means, with respect to a transferred employee, the retirement plan ([including](/usc/12/5301.md?p=18-A) the Financial Institutions Retirement [Fund](/usc/12/5381.md?p=a-12)), and any associated thrift savings plan, of the agency from which the employee was transferred in which the employee was enrolled on the day before the date on which the employee was transferred.
  - (2) **Benefits other than retirement benefits—**
    - (A) **During first year—**
      - (i) **Existing plans continue—** During the 1-year period following the [transfer date](/usc/12/5301.md?p=17), each transferred employee may retain membership in any employee benefit program (other than a retirement benefit program) of the agency from which the employee was transferred under this title,[^1] [including](/usc/12/5301.md?p=18-A) any dental, vision, long term care, or life insurance program to which the employee belonged on the day before the [transfer date](/usc/12/5301.md?p=17).
      - (ii) **Employer’s contribution—** The [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7), as appropriate, shall pay any employer cost required to extend coverage in the benefit program to the transferred employee as required under that program or negotiated agreements.
    - (B) **Dental, vision, or life insurance after first year—** If, after the 1-year period beginning on the [transfer date](/usc/12/5301.md?p=17), the [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7) determines that the [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7), as the case may be, will not continue to participate in any dental, vision, or life insurance program of an agency from which an employee was transferred, a transferred employee who is a member of the program may, before the decision takes effect and without regard to any regularly scheduled open season, elect to enroll in—
      - (i) the enhanced dental benefits program established under [chapter 89A](/usc/5/chptIII/sptG/ch89A.md) of title 5;
      - (ii) the enhanced vision benefits established under [chapter 89B](/usc/5/chptIII/sptG/ch89B.md) of title 5; and
      - (iii) the Federal Employees’ Group Life Insurance Program established under [chapter 87](/usc/5/chptIII/sptG/ch87.md) of title 5, without regard to any requirement of insurability.
    - (C) **Long term care insurance after 1st year—** If, after the 1-year period beginning on the [transfer date](/usc/12/5301.md?p=17), the [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7) determines that the [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7), as appropriate, will not continue to participate in any long term care insurance program of an agency from which an employee transferred, a transferred employee who is a member of such a program may, before the decision takes effect, elect to apply for coverage under the Federal Long Term Care Insurance Program established under [chapter 90](/usc/5/chptIII/sptG/ch90.md) of title 5 under the underwriting requirements applicable to a new active workforce member, as described in part 875 of title 5, Code of Federal Regulations (or any successor thereto).
    - (D) **Contribution of transferred employee—**
      - (i) **In general—** Subject to [clause (ii)](#i-2-D-ii), a transferred employee who is enrolled in a plan under the Federal Employees Health Benefits Program shall pay any employee contribution required under the plan.
      - (ii) **Cost differential—** The [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7), as applicable, shall pay any difference in cost between the employee contribution required under the plan provided to transferred employees by the agency from which the employee transferred on July 21, 2010, and the plan provided by the [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7), as the case may be, under this section.
      - (iii) **Funds transfer—** The [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7), as the case may be, shall transfer to the Employees Health Benefits [Fund](/usc/12/5381.md?p=a-12) established under [section 8909 of title 5](/usc/5/8909.md), an amount determined by the [Director](/usc/12/5341.md?p=1) of the [Office](/usc/12/5341.md?p=1) of Personnel Management, after consultation with the Comptroller of the Currency or the [Chairperson](/usc/12/5311.md?p=a-2) of the [Corporation](/usc/12/5301.md?p=7), as the case may be, and the [Office](/usc/12/5341.md?p=1) of Management and Budget, to be necessary to reimburse the [Fund](/usc/12/5381.md?p=a-12) for the cost to the [Fund](/usc/12/5381.md?p=a-12) of providing any benefits under this subparagraph that are not otherwise paid for by a transferred employee under [clause (i)](#i-2-D-i).
    - (E) **Special provisions to ensure continuation of life insurance benefits—**
      - (i) **In general—** An annuitant, as defined in [section 8901 of title 5](/usc/5/8901.md), who is enrolled in a life insurance plan administered by an agency from which employees are transferred under this title[^1] on the day before the [transfer date](/usc/12/5301.md?p=17) shall be eligible for coverage by a life insurance plan under sections [8706(b)](/usc/5/8706.md?p=b), [8714a](/usc/5/8714a.md), [8714b](/usc/5/8714b.md), or [8714c](/usc/5/8714c.md) of title 5, or by a life insurance plan established by the [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7), as applicable, without regard to any regularly scheduled open season or any requirement of insurability.
      - (ii) **Contribution of transferred employee—**
        - (I) **In general—** Subject to [subclause (II)](#i-2-E-ii-II), a transferred employee enrolled in a life insurance plan under this subparagraph shall pay any employee contribution required by the plan.
        - (II) **Cost differential—** The [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7), as the case may be, shall pay any difference in cost between the benefits provided by the agency from which the employee transferred on July 21, 2010, and the benefits provided under this section.
        - (III) **Funds transfer—** The [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7), as the case may be, shall transfer to the Federal Employees’ Group Life Insurance [Fund](/usc/12/5381.md?p=a-12) established under [section 8714 of title 5](/usc/5/8714.md), an amount determined by the [Director](/usc/12/5341.md?p=1) of the [Office](/usc/12/5341.md?p=1) of Personnel Management, after consultation with the Comptroller of the Currency or the [Chairperson](/usc/12/5311.md?p=a-2) of the [Corporation](/usc/12/5301.md?p=7), as the case may be, and the [Office](/usc/12/5341.md?p=1) of Management and Budget, to be necessary to reimburse the Federal Employees’ Group Life Insurance [Fund](/usc/12/5381.md?p=a-12) for the cost to the Federal Employees’ Group Life Insurance [Fund](/usc/12/5381.md?p=a-12) of providing benefits under this subparagraph not otherwise paid for by a transferred employee under [subclause (I)](#i-2-E-ii-I).
        - (IV) **Credit for time enrolled in other plans—** For any transferred employee, enrollment in a life insurance plan administered by the agency from which the employee transferred, immediately before enrollment in a life insurance plan under [chapter 87](/usc/5/chptIII/sptG/ch87.md) of title 5, shall be considered as enrollment in a life insurance plan under that chapter for purposes of [section 8706(b)(1)(A) of title 5](/usc/5/8706.md?p=b-1-A).
- (j) **Incorporation into agency pay system—** Not later than 30 months after the [transfer date](/usc/12/5301.md?p=17), the Comptroller of the Currency and the [Chairperson](/usc/12/5311.md?p=a-2) of the [Corporation](/usc/12/5301.md?p=7) shall place each transferred employee into the established pay system and structure of the appropriate employing agency.
- (k) **Equitable treatment—** In administering the provisions of this section, the Comptroller of the Currency and the [Chairperson](/usc/12/5311.md?p=a-2) of the [Corporation](/usc/12/5301.md?p=7)—
  - (1) may not take any action that would unfairly disadvantage a transferred employee relative to any other employee of the [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7) on the basis of prior employment by the [Office](/usc/12/5341.md?p=1) of Thrift Supervision;
  - (2) may take such action as is appropriate in an individual case to ensure that a transferred employee receives equitable treatment, with respect to the status, tenure, pay, benefits (other than benefits under programs administered by the [Office](/usc/12/5341.md?p=1) of Personnel Management), and accrued leave or vacation time for prior periods of service with any Federal agency of the transferred employee;
  - (3) shall, jointly with the [Director](/usc/12/5341.md?p=1) of the [Office](/usc/12/5341.md?p=1) of Thrift Supervision, develop and adopt procedures and safeguards designed to ensure that the requirements of this subsection are met; and
  - (4) shall conduct a study detailing the position assignments of all employees transferred pursuant to [subsection (a)](#a), describing the procedures and safeguards adopted pursuant to [paragraph (3)](#k-3), and demonstrating that the requirements of this subsection have been met; and shall, not later than 365 days after the [transfer date](/usc/12/5301.md?p=17), submit a copy of such study to Congress.
- (l) **Reorganization—**
  - (1) **In general—** If the Comptroller of the Currency or the [Chairperson](/usc/12/5311.md?p=a-2) of the [Corporation](/usc/12/5301.md?p=7) determines, during the 2-year period beginning 1 year after the [transfer date](/usc/12/5301.md?p=17), that a reorganization of the staff of the [Office](/usc/12/5341.md?p=1) of the Comptroller of the Currency or the [Corporation](/usc/12/5301.md?p=7), respectively, is required, the reorganization shall be deemed a “major reorganization” for purposes of affording affected employees retirement under section 8336(d)(2) or 8414(b)(1)(B) of title 5.
  - (2) **Service credit—** For purposes of this subsection, periods of service with a Federal home loan [bank](/usc/12/5301.md?p=18-A) or a joint [office](/usc/12/5341.md?p=1) of Federal home loan [banks](/usc/12/5301.md?p=18-A) shall be credited as periods of service with a Federal agency.

## Footnotes

[^1]: See References in Text note below.

## Source credit

(Pub. L. 111–203, title III, § 322, July 21, 2010, 124 Stat. 1529.)

## Notes

### Editorial Notes

### References in Text

This title, referred to in subsecs. (a)(1)(B)(i) and (i)(2)(A)(i), (E)(i), is title III of Pub. L. 111–203, July 21, 2010, 124 Stat. 1520, known as the Enhancing Financial Institution Safety and Soundness Act of 2010, which enacted this subchapter and sections 4b and 16 of this title, amended sections 1, 11, 248, 461, 481, 482, 1438, 1462, 1462a, 1463, to 1464, 1466a, 1467, 1467a, 1468, 1468a, to 1468b, 1470, 1701c, 1701p–1, 1708, 1757, 1785, 1786, 1787, 1812, 1813, 1817, 1818, 1820, 1821, 1823, 1828, 1829, 1831e, 1831j, 1833b, 1833e, 1834, 1841, 1843, 1844, 1861, 1867, 1881, 1882, 1884, 1972, 2709, 2902, 2905, 3206 to 3208, 3332, 4515, and 4517 of this title, section 906 of Title 2, The Congress, sections 78c, 78l, 78o–5, and 78w of Title 15, Commerce and Trade, sections 212, 657, 981, 982, 1006, 1014, and 1032 of Title 18, Crimes and Criminal Procedure, sections 321 and 714 of Title 31, Money and Finance, section 41501 of Title 34, Crime Control and Law Enforcement, sections 4003 and 8105 of Title 42, The Public Health and Welfare, and section 3502 of Title 44, Public Printing and Documents, repealed section 1441a of this title, enacted provisions set out as notes under sections 1, 16, 1438, 1787, 1812, 1817, and 1821 of this title and section 906 of Title 2, and amended provisions set out as notes under sections 1437, 1463, 1464, 1467a, 1707, 1812, and 1818 of this title. For complete classification of title III to the Code, see Short title note set out under section 5301 of this title and Tables.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as a note under section 5301 of this title.