To ensure the DHS-CS fulfills its purpose, as stated in § 158.202, the Secretary or designee aims to establish and administer a compensation system, described in § 158.602, that:

(a) Ensures the compensation for DHS-CS employees is sufficiently competitive to recruit and retain individuals possessing CTMS qualifications;

(b) Values, encourages, and recognizes, in alignment with the DHS-CS core values described in § 158.305:

(1) Exceptional CTMS qualifications and mission impact,

(2) Excellence and innovation in the performance of DHS-CS cybersecurity work, and

(3) Continual learning to adapt to evolving cybersecurity risks and cybersecurity threats; and

(c) Acknowledges the unpredictable nature of cybersecurity work and the expectation that DHS-CS employees occasionally work unusual hours and extended hours, as needed, to execute the DHS cybersecurity mission, especially in response to exigent circumstances and emergencies, including cybersecurity incidents; and

(d) Reflects an understanding of the cybersecurity talent market, including:

(1) Leading compensation practices and trends,

(2) Current cybersecurity work expectations and arrangements, and

(3) An understanding of the concepts of total compensation and total rewards.

(a) The Secretary or designee establishes and administers a compensation system based on:

(1) The compensation strategy in § 158.601;

(2) Information from strategic talent planning described in § 158.401(c);

(3) Generally recognized compensation principles and practices; and

(4) Strategic talent priorities.

(b) The compensation system comprises:

(1) The salary system described in § 158.610; and

(2) Additional compensation described in § 158.603.

(a) Compensation. As compensation for service in the DHS-CS, a DHS-CS employee receives a salary as described in paragraph (b) of this section. A DHS-CS employee may also receive additional compensation as described in paragraph (c) of this section.

(b) Salary. Except as provided in paragraphs (b)(1) and (2) of this section, a DHS-CS employee receives a salary under the salary system described in § 158.610. The Department sets a DHS-CS employee's salary as described in § 158.620, and salary may include a local cybersecurity talent market supplement described in § 158.612. The Department adjusts a DHS-CS employee's salary as described in § 158.621.

(1) Uncompensated service. A DHS-CS employee providing uncompensated service described in § 158.523(a)(2) does not receive a salary under this part.

(2) Advisory appointees. A DHS-CS advisory appointee receives a salary as described under subpart J of this part.

(c) Additional compensation. In alignment with the compensation strategy in § 158.601 and subject to the requirements of this subpart F, the Department may provide the additional compensation described in paragraph (c)(1) of this section to DHS-CS employees, unless a DHS-CS employee is providing uncompensated service under § 158.523(a)(2).

(1) Types. Additional compensation under CTMS is:

(i) Recognition under §§ 158.632 through 158.634;

(ii) Other special payments under §§ 158.640 through 158.643; and

(iii) Other types of compensation, including leave and benefits, authorized under §§ 158.650 through 158.654 and provided in accordance with relevant provisions of other laws.

(2) Combining types. A DHS-CS employee, except such an employee providing uncompensated service and a DHS-CS advisory appointee, may receive any type of additional compensation described in paragraph (c)(1) of this section in combination with any other such type subject to the requirements of this subpart F, and subject to the limit described in paragraph (c)(3) of this section.

(3) Limit. Additional compensation described in paragraph (c)(1) of this section is subject to, and may be limited by, the aggregate compensation limit described in § 158.604.

(4) Advisory appointees. A DHS-CS advisory appointee may receive additional compensation as described in subpart J of this part.

(5) Department discretion. Any payment or nonpayment of additional compensation under this part, or the amount of any such compensation, is under the Department's discretion, and may be reviewable only as provided for under subpart I of this part.

(a) Limiting aggregate compensation. A DHS-CS employee may not receive additional compensation listed in in paragraphs (b)(1)(i) through (iv) of this section if such receipt would cause a DHS-CS employee's aggregate compensation for a calendar year to exceed the aggregate compensation limit applicable to that employee. A DHS-CS employee's applicable aggregate compensation limit is the limit amount assigned to the subrange of a salary structure, described in § 158.611, that contains the employee's salary. The Department assigns an aggregate compensation limit to each subrange in a salary structure by assigning the amounts referenced in 5 U.S.C. 5307(d)(1) in ascending order to the subranges, such that each subrange has an aggregate compensation limit that is greater than or equal to the salary maximum of that subrange.

(b) Aggregate compensation. For purposes of this part—

(1) A DHS-CS employee's aggregate compensation means the total of the employee's salary, including any local cybersecurity talent market supplement, and the following types of additional compensation the employee receives under this part:

(i) Recognition payments;

(ii) Payments for special working conditions;

(iii) Payments for quarters allowances, overseas differentials and allowances, and remote worksite allowances, foreign currency allowances, and hostile fire pay; and

(iv) Other similar payments described in CTMS policy as being authorized under this part and provided in accordance with other relevant provisions of law.

(2) The following types of compensation a DHS-CS employee receives under this part are excluded from the employee's aggregate compensation:

(i) Payments or reimbursements for professional development and training;

(ii) CTMS student loan repayments;

(iii) CTMS allowances in nonforeign areas;

(iv) Back pay because of an unjustified or unwarranted talent management action;

(v) Severance pay;

(vi) Lump-sum payments for accumulated and accrued annual leave;

(vii) Voluntary separation incentive payments;

(viii) Payments for reservist differentials; and

(ix) Monetary value of any honorary recognition, leave, or other benefits.

(c) Forfeiture of compensation exceeding limit amount. Except under corrective action described in paragraph (d) of this section, a DHS-CS employee may not receive any portion of a payment for the additional compensation listed in paragraphs (b)(1)(i) through (iv) of this section that would cause the employee's aggregate compensation in any calendar year to exceed the applicable limit amount for that employee described in paragraph (a) of this section and the DHS-CS employee forfeits any such portion of a payment.

(d) Corrective actions. The Department may make a corrective action if the Department underestimated or overestimated a DHS-CS employee's aggregate compensation in a calendar year, including if an applicable aggregate compensation limit amount changed, resulting in the employee receiving aggregate compensation in excess of the applicable limit amount for a DHS-CS employee or the Department limiting or prohibiting an employee's aggregate compensation incorrectly. Corrective actions may include the Secretary or designee waiving a debt to the Federal Government for a DHS-CS employee under 5 U.S.C. 5584,if,or.

The provisions of the following laws, among other similar laws, do not apply under CTMS, to the DHS-CS, or to talent management involving the individuals described in § 158.103:

(a) The following provisions of 5 U.S.C.:

(1) Chapter 51 regarding classification,

(2) Chapter 53 regarding pay rates and systems (except section 5379 regarding student loan repayments),

(3) Chapter 55, Subchapter V regarding premium pay (except section 5550a regarding compensatory time off for religious observances),

(4) Chapter 61 regarding work schedules (except sections 6103-6104 regarding holidays),

(5) Section 4502 regarding cash awards and time-off awards,

(6) Section 4503 regarding agency awards (except regarding honorary recognition),

(7) Section 4505a regarding performance-based cash awards,

(8) Sections 4507 and 4507a regarding presidential rank awards,

(9) Section 5307 regarding limitation on certain payments,

(10) Section 5384 regarding performance awards for the Senior Executive Service,

(11) Section 5753 regarding recruitment and relocation bonuses,

(12) Section 5754 regarding retention bonuses,

(13) Section 5755 regarding supervisory differentials, and

(14) Section 5757 regarding extended assignment incentives;

(b) The provisions of 29 U.S.C. 206 and 207 regarding minimum wage payments and overtime pay under the Fair Labor Standards Act of 1938, as amended; and

(c) The following provisions of 5 CFR:

(1) Part 451 regarding awards (except regarding honorary recognition);

(2) Part 511 regarding classification under the General Schedule;

(3) Part 530 regarding pay rates and systems;

(4) Part 531 regarding pay under the General Schedule;

(5) Part 534 regarding pay under other systems;

(6) Part 536 regarding grade and pay retention;

(7) Part 550, subparts A regarding premium pay, I regarding pay for duty involving physical hardship or hazard, M regarding firefighter pay, N regarding compensatory time off for travel, and P regarding overtime pay for border patrol agents;

(8) Part 551 regarding pay administration under the Fair Labor Standards Act;

(9) Part 575 regarding recruitment, relocation, and retention incentives, supervisory differentials; and extended assignment incentives; and

(10) Part 610 regarding hours of duty (except subpart B regarding holidays).

(a) Under the compensation system, described in § 158.602 of this part, the Department establishes and administers a salary system with the goals of maintaining:

(1) Sufficiently competitive salaries for DHS-CS employees as stated in § 158.601(a); and

(2) Equitable salaries among DHS-CS employees.

(b) The salary system comprises:

(1) At least one salary structure, described in § 158.611 of this part, bounded by the salary range described in § 158.613 and incorporating the salary limitations described in § 158.614;

(2) The process for providing a local cybersecurity talent market supplement described in § 158.612; and

(3) The salary administration framework described in §§ 158.620 through 158.622.

(a) Under the salary system, described in § 158.610, the Department establishes and administers one or more salary structures based on the strategy, information, principles and practices, and priorities listed in § 158.602(a).

(b) A salary structure:

(1) Is bounded by the salary range described in § 158.613;

(2) Incorporates, as described in paragraph (d) of this section, the salary limitations described in § 158.614; and

(3) May incorporate other salary and cost control strategies, such as control points.

(c) A salary structure includes subranges, within the salary range described in § 158.613 that are associated with work levels established by the work valuation system, described in § 158.404. Each such subrange is associated with at least one such work level.

(d) The Department incorporates the salary limitations described in § 158.614 into a salary structure by assigning each such salary limitation to at least one subrange of the salary structure. The Department assigns such salary limitations in ascending order to the subranges such that each subrange has a salary limitation that is greater than or equal to the salary maximum of that subrange.

(e) The Department may adjust a salary structure annually, or as the Secretary or designee determines necessary, based on the strategy, information, principles and practices, and priorities listed in § 158.602(a).

(a) General. The Department may provide a DHS-CS employee a LCTMS to ensure the employee receives a sufficiently competitive salary, as described in § 158.610(a). A LCTMS accounts for the difference between a salary as determined under a salary structure, described in § 158.611, and the Department's determination as to what constitutes a sufficiently competitive salary for that local cybersecurity talent market. The Department determines whether a LCTMS is necessary, and establishes and periodically adjusts local cybersecurity talent markets and local cybersecurity talent market supplement percentages, based on the strategy, information, principles and practices, and priorities listed in § 158.602(a).

(b) Definitions. As used in this section:

(1) Local cybersecurity talent market means the cybersecurity talent market in a geographic area that the Department defines based on the talent market analysis described in § 158.403, and that may incorporate any pay locality established or modified under 5 U.S.C. 5304.

(2) Local cybersecurity talent market supplement percentage means a percentage the Department assigns to a local cybersecurity talent market to increase the amount of a salary provided under a salary structure.

(c) Salary supplement. A LCTMS is considered part of salary under this part and for purposes of applying the aggregate compensation limit described in § 158.604. A LCTMS is also basic pay for purposes under 5 U.S.C. and 5 CFR, except for purposes of determining pay under 5 U.S.C. 7511 and 7512 and 5 CFR part 752.

(d) Eligibility and termination. (1) The Department determines eligibility for a LCTMS under this section and CTMS policy implementing this section. A DHS-CS employee is eligible for a LCTMS if the employee's official worksite, as determined under § 158.704, is located in a local cybersecurity talent market with an assigned local cybersecurity talent market supplement percentage for the salary structure under which the employee's salary is provided.

(2) The Department terminates a LCTMS a DHS-CS employee receives when the employee's official worksite, as determined under § 158.704, is no longer in a local cybersecurity talent market with an assigned local cybersecurity talent market supplement percentage, or the salary structure under which the employee's salary is provided no longer has an assigned local cybersecurity labor market supplement, or both.

(3) A reduction in salary for a DHS-CS employee because of a change in any LCTMS for that employee is not a reduction in pay for the purposes of 5 U.S.C. 7512 and 5 CFR part 752.

(e) Limitation. A DHS-CS employee may not receive, and is not entitled to, any portion of a LCTMS that would cause the employee's salary to exceed the applicable salary limitation assigned to the subrange of a salary structure as described in § 158.611 that contains the employee's salary, but the employee may receive the portion of such a LCTMS that would not cause the employee's salary to exceed the applicable salary limitation. A DHS-CS employee may receive a LCTMS that would cause the employee's salary to be in the extended range, described in § 158.613(c), only if the Secretary or designee invokes the extended range under § 158.613(c)(2) for that employee.

(a) Range. The salary range provides the boundaries of the salary system described in § 158.610. The salary range comprises a standard range and an extended range, and the standard range applies unless the Secretary or designee invokes the extended range under paragraph (c) of this section.

(b) Standard range. The upper limit of the standard range is equal to the amount of total annual compensation payable to the Vice President under 3 U.S.C. 104.

(c) Extended range. The upper limit of the extended range is 150 percent of the annual rate of basic pay for level I of the Executive Schedule (150% of EX-I). Only DHS-CS employees serving in renewable appointments may receive a salary amount in the extended range, and only if the Secretary or designee invokes the extended range for those employees as described in this paragraph (c).

(1) The Secretary or designee may invoke the extended range for a DHS-CS employee when the Secretary or designee determines, based on the compensation strategy in § 158.601, that the employee's qualifications, the employee's mission impact, and mission-related requirements warrant adjusting the employee's salary beyond the standard range. The Secretary or designee must approve the salary adjustment of each such employee by name, and to receive a salary in the extended range the employee must either already be in a renewable appointment or accept a renewable appointment. While the employee is receiving a salary in an amount in the extended range, the Department may not change that employee's appointment to a continuing appointment.

(2) The Secretary or designee may invoke the extended range for an individual selected for appointment to a qualified position when the Secretary or designee determines, based on the compensation strategy in § 158.601, that the individual's qualifications, the individual's anticipated mission impact, and mission-related requirements warrant setting the individual's salary beyond the standard range. The Secretary or designee must approve the appointment of each such individual to a qualified position by name, and the individual must be appointed to a renewable appointment only. While that individual is receiving a salary under this part in an amount in the extended range, the Department may not change that individual's appointment to a continuing appointment at any time.

(d) Maximum. No DHS-CS employee may receive a salary under this part in excess of 150% of EX-I.

(a) The salary system, described in § 158.610, has the following limitations on maximum rates of salary that apply within the CTMS salary range described in § 158.613 of this part:

(1) The annual rate of basic pay for GS-15, step 10 under the General Schedule (excluding locality pay or any other additional pay as defined in 5 CFR chapter 1);

(2) The annual rate of basic pay for level IV of the Executive Schedule;

(3) The annual rate of basic pay for level II of the Executive Schedule;

(4) The annual rate of basic pay for level I of the Executive Schedule; and

(5) The total annual compensation payable to the Vice President under 3 U.S.C. 104.

(b) The Department may establish additional limitations on maximum rates of salary for the salary system.

(c) The salary system incorporates each limitation on maximum rates of salary described in this section into each salary structure established under § 158.611.

(a) The Department sets the salary for an individual accepting an appointment to a qualified position as part of selection and appointment of the individual, described in § 158.522. The Department sets the individual's salary within a subrange of a salary structure described in § 158.611 based on consideration of:

(1) The individual's CTMS qualifications, determined under the assessment program described in § 158.520;

(2) Applicable work and career structures, including the individual's initial work level, determined as part of selection and appointment under § 158.522;

(3) The individual's anticipated mission impact;

(4) Mission-related requirements; and

(5) Strategic talent priorities.

(b) In setting the salary for an individual appointed to a qualified position under this part, the Department may set the individual's salary without regard to any prior salary of the individual, including any salary or basic pay while serving in a previous appointment under this part or in another previous Federal appointment made outside the authority of this part.

(c) In setting the salary for an individual appointed to a qualified position under this part, the Department may provide a local cybersecurity talent market supplement described in § 158.612.

(a) The Department adjusts a DHS-CS employee's salary, or the salaries of a group of DHS-CS employees, by paying a recognition adjustment under § 158.631, or paying a local cybersecurity talent market supplement under § 158.612, or both.

(b) The Department does not provide DHS-CS employees with any automatic salary increase or any salary increase based on length of service in the DHS-CS or in any position outside the DHS-CS.

(c) If the Department adjusts a salary structure under § 158.611(e) that results in an increase to the salary minimum for one or more subranges of the salary structure, for any DHS-CS employee receiving a salary in an affected subrange at the affected salary minimum, DHS adjusts the employee's salary to reflect the adjustment to the salary structure and the new salary minimum for the affected subrange. Such a salary adjustment is not considered a recognition adjustment under § 158.631.

(a) Except as stated in paragraph (b) of this section, the Department administers salary under this part in accordance with the provisions of 5 CFR part 550 regarding pay administration generally.

(b) The following provisions of 5 CFR part 550 do not apply to administering salary under this part and do not apply under CTMS, to the DHS-CS, or to talent management involving the individuals described in § 158.103 of this part:

(1) Subpart A regarding premium pay;

(2) Subpart I regarding pay for duty involving physical hardship or hazard;

(3) Subpart M regarding firefighter pay;

(4) Subpart N compensatory time-off for travel; and

(5) Subpart P regarding overtime for board patrol agents.

(c) The Department also administers salary under this part in accordance with the provisions of the following:

(1) 5 U.S.C. 5520,42.S.C. 659 and 5 CFR parts 581 and 582, regarding garnishment;

(2) 31 U.S.C. 3702 and 5 CFR part 178 regarding claims settlement;

(3) 31 U.S.C. 3711 and 3716 and 31 CFR chapter IX parts 900 through 904 regarding debt collection;

(4) 5 U.S.C. Chapter 55 Subchapter VII regarding payments to missing employees; and

(5) Other relevant provisions of other laws specifically adopted in CTMS policy.

(d) For purposes of salary administration under this section, the Department administers salary based on consideration of a DHS-CS employee's work schedule under the work scheduling system, described in § 158.705, and may convert the employee's salary into an hourly rate, biweekly rate, or other rate.

(a) DHS-CS employees. In alignment with the compensation strategy in § 158.601 and the performance management program described in § 158.802 of this part, the Department may provide recognition under §§ 158.631 through 158.634, on a periodic or ad hoc basis, to a DHS-CS employee based on the employee's mission impact. In providing such recognition, the Department may also consider mission-related requirements and strategic talent priorities.

(b) Prospective employees. In alignment with the compensation strategy in § 158.601, the Department may offer, and provide upon appointment, recognition payments under § 158.632(b) and recognition time-off under § 158.633(b), on a periodic or ad hoc basis, to an individual selected for employment in the DHS-CS based on:

(1) The individual's CTMS qualifications determined under the assessment program described in § 158.520;

(2) The individual's anticipated mission impact;

(3) Mission-related requirements; and

(4) Strategic talent priorities.

(c) Eligibility. The Department determines eligibility for recognition under this section, §§ 158.631 through 158.634, and CTMS policy implementing this section. The Department may defer providing recognition to a DHS-CS employee under this part if the Department is in the process of determining whether the employee's performance is unacceptable, as defined in 5 U.S.C. 4301(3), or whether the employee has engaged in misconduct. If the Department determines a DHS-CS employee's performance is unacceptable, as defined in 5 U.S.C. 4301(3), or the employee receives an unacceptable rating of record under § 158.804, or the Department determines the employee has engaged in misconduct, the employee is ineligible to receive recognition under this part.

(d) Policy. CTMS policy implementing this section addresses:

(1) Eligibility criteria;

(2) Requirements for documenting the reason and basis for recognition provided to a DHS-CS employee;

(3) Appropriate levels of review and approval for providing recognition;

(4) Any limitations on the total number, frequency, or amount of recognition a DHS-CS employee may receive within any specific time period;

(5) Any service agreement requirements; and

(6) Processes for evaluating the effectiveness of recognition in supporting the purpose of CTMS described in § 158.101, the purpose of the DHS-CS described in § 158.202, and the operationalization of the compensation strategy described in § 158.601.

(e) Advisory appointees. Recognition under this part for a DHS-CS advisory appointee is subject to additional requirements and restrictions in subpart J of this part.

(a) Under this section and § 158.630, the Department may provide a recognition adjustment to a DHS-CS employee for the reasons and bases stated in § 158.630(a). A recognition adjustment is an adjustment to the DHS-CS employee's salary provided under a salary structure described in § 158.611. A recognition adjustment does not alter any local cybersecurity talent market supplement for that employee.

(b) No DHS-CS employee may receive a recognition adjustment that would cause the employee's salary to exceed the salary range maximum described in § 158.613(d) or the applicable salary limitation assigned to the subrange of a salary structure as described in § 158.611(d) that contains the employee's salary. A DHS-CS employee may not receive a recognition adjustment that would cause the employee's salary amount to be in the extended range, described in § 158.613(c), unless the Secretary or designee invokes the extended range for that employee under § 158.613(c)(1).

(c) A recognition adjustment under this section is not a promotion for any purpose under Title 5 U.S.C. or 5 CFR.

(d) A recognition adjustment under this section for a DHS-CS advisory appointee is subject to additional requirements and restrictions in subpart J of this part.

(a) Under this section and § 158.630, and for the reasons and bases stated in § 158.630(a), the Department may provide a recognition payment to a DHS-CS employee in an amount of up to 20 percent, or up to 50 percent with approval of the Secretary or designee, of the receiving DHS-CS employee's salary. The Department may require a service agreement of not less than six months and not more than three years as part of providing a recognition payment to a DHS-CS employee.

(b) Under this section and § 158.630, and for the reasons and bases stated in § 158.630(b) and as part of an offer of employment in the DHS-CS, the Department may offer a recognition payment to an individual selected for employment in the DHS-CS in an amount of up to 20 percent of the receiving individual's initial salary in the DHS-CS. The Department requires a service agreement of not less than six months and not more than three years as part of providing, upon appointment, a recognition payment to an individual selected for employment in the DHS-CS.

(c) The Department may provide a recognition payment as a lump sum payment, an installment payment, or a recurring payment.

(d) The Department may provide a recognition payment under this section to a former DHS-CS employee or to the legal heirs or estate of a former DHS-CS employee in accordance with 5 U.S.C. 4505.

(e) Acceptance of a recognition payment constitutes agreement for Federal Government use of any idea, method, device, or similar that is the basis of the payment.

(f) A recognition payment under this section is subject to and may be limited by the aggregate compensation limit described in § 158.604.

(g) A recognition payment is not salary under this part and is not basic pay for any purpose under 5 U.S.C. or 5 CFR.

(h) A recognition payment under this section is based on the following types of awards and incentives provided under 5 U.S.C.:

(1) Cash awards under 5 U.S.C. 4502;

(2) Agency awards under 5 U.S.C. 4503;

(3) Performance-based cash awards under 5 U.S.C. 4505a and 5384;

(4) Presidential rank awards under 5 U.S.C. 4507 and 4507a; and

(5) Recruitment, relocation, and retention incentives 5 U.S.C. 5753 and 5754.

(i) A recognition payment under this section is in lieu of the types of awards and incentives provided under 5 U.S.C. listed in paragraph (h) of this section, and a DHS-CS employee is ineligible to receive any such awards or incentives.

(j) An individual selected for employment in the DHS-CS is ineligible to receive, as part of the offer of employment, any other offer of a monetary award or incentive, a payment in addition to salary, or other monetary recognition from the Department except as provided in this section and § 158.630. An individual appointed to an advisory appointment is also ineligible to receive, as part of an offer of employment in the DHS-CS, any offer of recognition under this section.

(k) A recognition payment under this section for a DHS-CS advisory appointee is subject to additional requirements and restrictions in subpart J of this part.

(a) Under this section and § 158.630, and for the reasons and bases stated in § 158.630(a), the Department may provide recognition time-off to a DHS-CS employee for use within a designated timeframe not to exceed 26 work periods, as defined in § 158.705(c). Recognition time-off is time-off from duty without charge to leave or loss of compensation.

(b) Under this section and § 158.630, and for the reasons and bases stated in § 158.630(b) and as part of an offer of employment in the DHS-CS, the Department may offer up to 40 hours of recognition time-off to an individual selected for employment in the DHS-CS for use within a designated timeframe not to exceed 26 work periods, as defined in § 158.705(b). The Department may require a service agreement as part of providing, upon appointment, recognition time-off to an individual selected for employment in the DHS-CS.

(c) All recognition time-off provided, and the use of such time-off, must be recorded in a timekeeping system for purposes of salary administration and leave administration under this part.

(d) Recognition time-off provided under this section may not, under any circumstances, be converted to a cash payment to the receiving DHS-CS employee or any other type of time-off or leave.

(e) Recognition time-off under this section is based on time-off awards provided under the provisions of 5 U.S.C. 4502(e).

(f) Recognition time-off under this section is in lieu of the time-off awards provided under 5 U.S.C. 4502(e), and a DHS-CS employee is ineligible to receive any such awards.

(g) An individual selected for employment in the DHS-CS is ineligible to receive, as part of the offer of employment, any other offer of time-off or time-off award from the Department except as provided in this section and §§ 158.630 and 158.651. An individual appointed to an advisory appointment is also ineligible to receive, as part of an offer of employment in the DHS-CS, any offer of recognition under this section.

(h) A recognition time-off provided under this section to a DHS-CS advisory appointee is subject to additional requirements and restrictions in subpart J of this part.

(a) Under this section and § 158.630, the Department may establish one or more honorary recognition programs to provide honorary recognition to DHS-CS employees for the reasons and bases stated in § 158.630(a). The Department may incur necessary expenses for honorary recognition under an honorary recognition program established under this section.

(b) Honorary recognition under this section is based on honorary recognition provided under the provisions of 5 U.S.C. 4503,and.S.C. 4503 and 5 CFR part 451 in addition to any honorary recognition under this section.

(c) The Department may provide honorary recognition under this section to a former DHS-CS employee or to the legal heirs or estate of a former DHS-CS employee in accordance with 5 U.S.C. 4505.

(d) Honorary recognition under this section for a DHS-CS advisory appointee is subject to additional requirements in subpart J of this part.

(a) In alignment with the compensation strategy described in § 158.601 and the career development program described in § 158.803, the Department may provide professional development and training opportunities, payments, and reimbursements for DHS-CS employees.

(b) CTMS policy implementing this section addresses:

(1) Eligibility criteria;

(2) Requirements for documenting the reason and basis for professional development and training opportunities, payments, and reimbursements provided to a DHS-CS employee;

(3) Appropriate levels of review and approval for providing professional development and training opportunities, payments, and reimbursements;

(4) Any limitations on the total number or frequency of professional development and training opportunities, and any limitations on the total number, frequency, or amount of professional development and training payments and reimbursements a DHS-CS employee may receive, within any specific time period;

(5) Any service agreement requirements;

(6) Requirements for communicating to DHS-CS employees and their supervisors about professional development and training opportunities; and

(7) Processes for evaluating the effectiveness of the professional development and training in supporting the purpose of CTMS described in § 158.101, the purpose of the DHS-CS described in § 158.202, and the operationalization of the compensation strategy described in § 158.601.

(c) Any payment or reimbursement under this section is excluded from the aggregate compensation limit described in § 158.604.

(d) Any payment or reimbursement under this section is not salary under this part and is not basic pay for any purpose under 5 U.S.C. or 5 CFR.

(e) Professional development and training under this section is based on the following training and professional development opportunities, payments, and reimbursements provided under 5 U.S.C.:

(1) Sabbaticals under 5 U.S.C. 3396;

(2) Academic degree training under 5 U.S.C. 4107;

(3) Expenses of training under 5 U.S.C. 4109;

(4) Expenses of attendance at meetings under 5 U.S.C. 4110; and

(5) Payment of expenses to obtain professional credentials under 5 U.S.C. 5757.

(f) In addition to any professional development and training under this section, a DHS-CS employee may be eligible to receive the training and professional development opportunities, payments, and reimbursements provided under 5 U.S.C. listed in paragraph (e) of this section.

(g) Professional development and training under this section for a DHS-CS advisory appointee is subject to additional requirements and restrictions in subpart J of this part.

(a) In alignment with the compensation strategy described in § 158.601, the Department may provide a student loan repayment to a DHS-CS employee under this section and in accordance with 5 U.S.C. 5379 and 5 CFR part 537, except that:

(1) The maximum payment amounts under 5 U.S.C. 5379 and 5 CFR part 537 do not apply, and the Department may provide and a DHS-CS employee may receive a student loan repayment under this section so long as such repayment does not exceed $16,500 per employee per calendar year and a total of $90,000 per employee;

(2) The minimum service period length of three years under 5 U.S.C. 5379 and 5 CFR part 537 does not apply, and instead the length of a minimum service period for a DHS-CS employee receiving a student loan repayment under this section is determined under CTMS policy and based on the amount of the repayment received by the employee; and

(3) Eligibility criteria related to time-limited appointments under 5 U.S.C. 5379 and 5 CFR part 537 do not apply, and a DHS-CS employee in a renewable appointment may receive a student loan payment under this section.

(b) In alignment with eligibility criteria under 5 U.S.C. 5379 and 5 CFR part 537:

(1) If the Department determines a DHS-CS employee's performance is unacceptable, as defined in 5 U.S.C. 4301(3), or the employee receives an unacceptable rating of record under § 158.804, or the Department determines the employee has engaged in misconduct, the employee is ineligible to receive a student loan repayment under this section.

(2) A DHS-CS advisory appointee is ineligible to receive a student loan repayment under this section.

(c) CTMS policy implementing this section addresses:

(1) Eligibility criteria;

(2) Requirements for documenting the reason and basis for a student loan repayment provided to a DHS-CS employee;

(3) Appropriate levels of review and approval for providing a student loan repayment;

(4) Service agreement requirements, including minimum service periods;

(5) Any additional limitations on student loan repayments; and

(6) Processes for evaluating the effectiveness of student loan repayments in supporting the purpose of CTMS described in § 158.101, the purpose of the DHS-CS described in § 158.202, and the operationalization of the compensation strategy described in § 158.601.

(d) Any student loan repayment provided under this section is excluded from the aggregate compensation limit described in § 158.604.

(e) Any student loan repayment provided under this section is not salary under this part and is not basic pay for any purpose under 5 U.S.C. or 5 CFR.

(a) In alignment with the compensation strategy described in § 158.601, the Department may establish a program to provide payments to DHS-CS employees to address special working conditions that are otherwise unaccounted for or the Department determines are accounted for insufficiently in DHS-CS employees' other types of additional compensation and salary.

(b) Special working conditions include circumstances in which a supervisor or other appropriate official requires a DHS-CS employee to perform DHS-CS cybersecurity work that involves, as determined by the Department:

(1) Unusual physical or mental hardship;

(2) Performing work at atypical locations, at unexpected times, or for an uncommon duration of time exceeding the expectation described in § 158.601(c) about working unusual hours and extended hours; or

(3) A combination of the conditions described in paragraphs (b)(1) and (2) of this section.

(c) A payment for special working conditions is a payment of up to 25 percent of the receiving DHS-CS employee's salary as computed for a work period, defined in § 158.705(b), or a series of work periods.

(d) The Department determines whether to establish, adjust, or cancel a program under this section based on information from:

(1) The work scheduling system described in § 158.705; and

(2) Strategic talent planning described in § 158.401(c), including information about current compensation practices of other cybersecurity employers analyzed under the talent market analysis described in § 158.403.

(e) The Department determines eligibility for a payment for special working conditions under this section and CTMS policy implementing this section.

(1) A DHS-CS employee who receives a payment for special working conditions under a program established under this section is not automatically eligible or entitled to receive any additional such payments.

(2) A DHS-CS employee receiving a salary equal to or greater than EX-IV is ineligible to receive a payment under this section.

(3) A DHS-CS advisory appointee is ineligible to receive a payment for special working conditions under this section.

(f) CTMS policy implementing this section addresses:

(1) Eligibility criteria;

(2) Requirements for documenting the reason and basis for payments for special working conditions provided to a DHS-CS employee;

(3) Appropriate levels of review and approval for providing payments for special working conditions;

(4) Any limitations on payments for special working conditions;

(5) Requirements for determining whether a payment for special working conditions is a lump sum payment, paid in installments, or a recurring payment; and

(6) Processes for evaluating the effectiveness of any special working conditions payment program in supporting the purpose of CTMS described in § 158.101, the purpose of the DHS-CS described in § 158.202, and the operationalization of the compensation strategy described in § 158.601.

(g) Any payment under this section is subject to and may be limited by the aggregate compensation limit described in § 158.604.

(h) Any payment under this section is not salary under this part and is not basic pay for any purpose under Title 5 U.S.C. or 5 CFR.

(i) A payment for special working conditions under this section is based on the following types of payments provided under 5 U.S.C.:

(1) Night, standby and hazardous duty differential under 5 U.S.C. 5545;

(2) Pay for Sunday and holiday work under 5 U.S.C. 5546; and

(3) Extended assignment incentives under 5 U.S.C. 5757.

(j) A payment for special working conditions under this section is in lieu of the types of payment provided under 5 U.S.C. listed in paragraph (g) of this section, and a DHS-CS employee is ineligible to receive any such payments under 5 U.S.C.

(a) A DHS-CS employee is eligible for and may receive an allowance under 5 U.S.C. 5941 and implementing regulations in 5 CFR part 591, subpart B, on the same basis and to the same extent as if the employee is an employee covered by those authorities.

(b) The Department provides an allowance described in paragraph (a) of this section to any DHS-CS employee who is eligible, as described in paragraph (a), for such allowance.

(c) Any allowance provided under this section is excluded from the aggregate compensation limit described in § 158.604.

(d) Any allowance provided under this section is not salary under this part and is not basic pay for any purpose under 5 U.S.C. or 5 CFR.

(e) Any allowance under this section for a DHS-CS advisory appointee is subject to additional requirements and restrictions in subpart J of this part.

In alignment with salary administration under § 158.622 and work scheduling under § 158.705, the Department provides holidays to a DHS-CS employee under this section and in accordance with 5 U.S.C. 6103-6104 and 5 CFR part 610, subpart B.

(a) Leave. In alignment with salary administration under § 158.622 and work scheduling under § 158.705, the Department provides leave to a DHS-CS employee under this section and in accordance with 5 U.S.C. Chapter 63 and 5 CFR part 630, including:

(1) Annual leave, as described in 5 U.S.C. Chapter 63, Subchapter I;

(2) Sick leave, as described in 5 U.S.C. Chapter 63, Subchapter I;

(3) Other paid leave, as described in 5 U.S.C. Chapter 63, Subchapter II;

(4) Voluntary transfers of leave, as described in 5 U.S.C. Chapter 63, Subchapter III;

(5) Voluntary leave bank programs, as described in 5 U.S.C. Chapter 63, Subchapter IV;

(6) Family and medical leave, as described in 5 U.S.C. Chapter 63, Subchapter V; and

(7) Leave transfer in disasters and emergencies, as described in 5 U.S.C. Chapter 63, Subchapter VI.

(b) Annual leave accrual. A DHS-CS employee's annual leave accrual amount is determined under 5 U.S.C. 6303.

(c) Annual leave accumulation. A DHS-CS employee's annual leave accumulation amount is determined under 5 U.S.C. 6304,except.S.C. 6304(f)(2)(A) to DHS-CS employees receiving a salary under this part that exceeds 120 percent of the minimum annual rate of basic pay for GS-15 under the General Schedule.

(d) Leave credits. The annual leave and sick leave accrued to the credit of a current Federal employee who is appointed to a qualified position under this part without a break in service of more than three calendar days is transferred to the employee's credit in accordance with 5 U.S.C. 6308.

(e) Annual leave balance upon leaving the DHS-CS. When a DHS-CS employee moves to a position outside of the DHS-CS, any leave balance for the employee is addressed in accordance with 5 CFR 630.209 and 630.501.

(f) Leave administration. The Department administers leave under this section as described in this section and in § 158.655, and in accordance with the relevant provisions of other laws referenced in this section and CTMS policy.

In alignment with salary administration under § 158.622 of this part and work scheduling under § 158.705, the Department provides compensatory time-off for religious observance to a DHS-CS employee under this section and in accordance with 5 U.S.C. 5550a and 5 CFR 550, subpart J.

(a) In alignment with salary administration under § 158.622, leave administration under § 158.651, and work scheduling under § 158.705, the Department provides benefits, including retirement, health benefits, and insurance programs, to a DHS-CS employee under this section and in accordance with 5 U.S.C. Chapters 81-90 and 5 CFR parts 831 and 838-894.

(b) The Department administers the benefits of an annuitant appointed to a qualified position in accordance with 5 U.S.C. 8344,5.S.C. 8468, 5 CFR 553.203, or 5 CFR part 837, as applicable.

(c) The Department provides a transportation subsidy to a DHS-CS employee under this section and in accordance with 5 U.S.C. 7905.

(a) The Department provides the following other types of payments to a DHS-CS employee under this section and in accordance with the relevant provisions of law referenced in this section:

(1) Severance pay under this section, and the Department provides any severance pay in accordance with 5 U.S.C. 5595 and 5 CFR part 550, subpart G, except that separation from the DHS-CS because of a lapse or nonrenewal of a DHS-CS employee's appointment under this part or because of a DHS-CS employee's refusal to accepted a directed subsequent assignment, described in § 158.708, is not an involuntary separation, and the former DHS-CS employee is not entitled to severance pay.

(2) Lump-sum leave payouts under this section, and the Department provides any lump-sum leave payouts in accordance with 5 U.S.C. 5551 and 5552 and 5 CFR part 550, subpart L.

(3) Voluntary separation incentive payments under this section, and the Department provides any such payments in accordance with 5 U.S.C. 3521-3525 and 5 CFR part 576.

(4) Reservist differential under this section, and the Department provides any such differential in accordance with 5 U.S.C. 5538.

(5) Quarters allowances under this section, and the Department provides any such allowances in accordance with 5 U.S.C. Chapter 59, Subchapter II, the Department of State Standardized Regulations and any implementing supplements issued by the Department of State, and 5 CFR part 591, subpart C.

(6) Overseas differentials and allowances under this section, and the Department provides any such differentials and allowances in accordance with 5 U.S.C. Chapter 59, Subchapter III, the Department of State Standardized Regulations and any implementing supplements issued by the Department of State, and 5 CFR part 591, subpart C.

(7) Remote worksite allowances, foreign currency allowances, and hostile fire pay under this section, and the Department provides any such allowances and pay in accordance with 5 U.S.C. Chapter 59, Subchapter IV.

(8) Other similar payments described in CTMS policy as being authorized under this part and provided in accordance with relevant provisions of other laws.

(b) A payment for any quarter allowances, overseas differentials and allowances, and remote worksite allowances, foreign currency allowances, and hostile fire pay under paragraphs (a)(5) through (7) of this section is subject to and may be limited by the aggregate compensation limit described in § 158.604. A payment for any severance pay, lump-sum leave payout, voluntary separation inventive payment, and reservist differential under paragraphs (a)(1) through (4) of this section is not subject to the aggregate compensation limit described in § 158.604. A payment under paragraph (a)(8) of this section may be subject to and limited by the aggregate compensation limit described in § 158.604, as described in CTMS policy.

(c) Any payment under this section is not salary under this part and is not basic pay for any purpose under Title 5 U.S.C. or 5 CFR.

(a) For purposes of administering compensation authorized under §§ 158.650 through 158.654 in accordance with relevant provisions of other laws:

(1) The Department may convert a DHS-CS employee's salary into an hourly rate, biweekly rate, or other rate, and administer compensation based on consideration of the DHS-CS employee's work schedule under the work scheduling system described in § 158.705;

(2) A DHS-CS employee's hours of work and related computations are determined under the relevant provisions of law referenced in §§ 158.650 through 158.654 and CTMS policy implementing this section;

(3) A DHS-CS employee on a part-time schedule described in § 158.705 is treated as if the employee is serving “part-time career employment” defined in 5 CFR 340.101; and

(4) A DHS-CS employee on a contingent schedule described in § 158.705 is treated as if the employee is serving “intermittent employment” defined in 5 CFR 340.401.

(b) If, in administering compensation under §§ 158.650 through 158.654, the Department determines it is necessary to clarify the relationship between those sections and the relevant provisions of law referenced in those sections and any other relevant provisions of other laws, the Department will address the issue in new or revised CTMS policy.