---
kind: "section"
citation: "5 U.S.C. § 3503"
title: "5"
title_heading: "Government Organization and Employees"
number: "3503"
heading: "Transfer of functions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/5/3503"
units:
  - "Part III — Employees"
  - "Subpart B — Employment and Retention"
  - "Chapter 35 — Retention Preference, Voluntary Separation Incentive Payments, Restoration, and Reemployment"
  - "Subchapter I — Retention Preference"
---

# §3503. Transfer of functions

- (a) When a function is transferred from one [agency](/usc/5/3132.md?p=a-1) to another, each competing [employee](/usc/5/4701.md?p=a-2) in the function shall be transferred to the receiving [agency](/usc/5/3132.md?p=a-1) for employment in a [position](/usc/5/5102.md?p=a-3) for which he is qualified before the receiving [agency](/usc/5/3132.md?p=a-1) may make an appointment from another source to that [position](/usc/5/5102.md?p=a-3).
- (b) When one [agency](/usc/5/3132.md?p=a-1) is replaced by another, each competing [employee](/usc/5/4701.md?p=a-2) in the [agency](/usc/5/3132.md?p=a-1) to be replaced shall be transferred to the replacing [agency](/usc/5/3132.md?p=a-1) for employment in a [position](/usc/5/5102.md?p=a-3) for which he is qualified before the replacing [agency](/usc/5/3132.md?p=a-1) may make an appointment from another source to that [position](/usc/5/5102.md?p=a-3).

## Source credit

(Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 429; Pub. L. 95–454, title III, § 307(f), Oct. 13, 1978, 92 Stat. 1149; Pub. L. 96–54, § 2(a)(18), Aug. 14, 1979, 93 Stat. 382.)

## Notes

| Historical and Revision Notes |  |  |
| --- | --- | --- |
| Derivation | U.S. Code | Revised Statutes and<br>Statutes at Large |
|  | 5 U.S.C. 861(a) (3d proviso). | June 27, 1944, ch. 287, § 12 (3d proviso), 58 Stat. 390. |

In subsection (a), the words “a function” are substituted for “any or all of the functions”. The word “receiving” is substituted for “replacing” in the phrase “receiving agency” to avoid confusion with subsection (b).

In subsections (a) and (b), the word “first” in the phrase “shall first be transferred” is omitted as redundant in view of the subsequent limitation imposed by the words following “before”. The words “make an appointment from another source to that position” are substituted for “appoint additional employees from any other source for such position”.

Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.

### Editorial Notes

### Amendments

1979—Subsecs. (a), (b). Pub. L. 96–54 substituted “competing employee” for “preference eligible employed”.

1978—Subsecs. (a), (b). Pub. L. 95–454 which directed the substitution of “competing employee” for “preference eligible employee” was impossible to execute literally because the text contained reference to “preference eligible employed”. See 1979 Amendment note above.

### Statutory Notes and Related Subsidiaries

### Effective Date of 1979 Amendment

Amendment by Pub. L. 96–54 effective July 12, 1979, see section 2(b) of Pub. L. 96–54, set out as a note under section 305 of this title.

### Effective Date of 1978 Amendment

Amendment by Pub. L. 95–454 effective 90 days after Oct. 13, 1978, see section 907 of Pub. L. 95–454, set out as a note under section 1101 of this title.