5 U.S.C. § 5362: Grade retention following a change of positions or reclassification

who is placed as a result of reduction-in-force procedures from a position subject to this subchapter to another position which is subject to this subchapter and which is in a lower grade than the previous position, and who has served for 52 consecutive weeks or more in one or more positions subject to this subchapter at a grade or grades higher than that of the new position, Any employee who is in a position subject to this subchapter and whose position has been reduced in grade is entitled, to the extent provided in subsection (c) of this section, to have the grade of such position before reduction be treated as the retained grade of such employee for the 2-year period beginning on the date of the reduction in grade. The provisions of paragraph (1) of this subsection shall not apply with respect to any reduction in the grade of a position which had not been classified at the higher grade for a continuous period of at least one year immediately before such reduction. for purposes of subsection (a) of this section, for purposes of applying any reduction-in-force procedures, or for such other purposes as the Office of Personnel Management may provide by regulation. has a break in service of one workday or more; is demoted (determined without regard to this section) for personal cause or at the employee’s request; is placed in, or declines a reasonable offer of, a position the grade of which is equal to or higher than the retained grade; or elects in writing to have the benefits of this section terminate. whose grade was reduced on or after January 1, 1977 , and before the effective date of the amendments made by subsection (a) of this section [see Effective Date note set out under section 5361 of this title ] under circumstances which would have entitled the employee to coverage under the provisions of section 5362 of title 5 , United States Code (as amended by subsection (a) of this section) if such amendments had been in effect at the time of the reduction; and who has remained employed by the Federal Government from the date of the reduction in grade to the effective date of the amendments made by subsection (a) of this section without a break in service of one workday or more; to receive the additional pay and benefits which such employee would have been entitled to receive if the amendments made by subsection (a) of this section had been in effect during the period beginning on the effective date of such reduction in grade and ending on the day before the effective date of such amendments, and to have the amendments made by subsection (a), of this section apply to such employee as if the reduction in grade had occurred on the effective date of such amendments. No employee covered by this subsection whose reduction in grade resulted in an increase in pay shall have such pay reduced by reason of the amendments made by subsection (a) of this section. who separated from service with a right to an immediate annuity under chapter 83 of title 5, United States Code, or under another retirement system for Federal employees; or who died. Amounts payable by reason of subparagraph (A) of this paragraph in the case of the death of an employee shall be paid in accordance with the provisions of subchapter VIII of chapter 55 of title 5, United States Code, relating to settlement of accounts in the case of deceased employees. The Office of Personnel Management shall have the same authority to prescribe regulations under this subsection as it has under section 5365 of title 5 , United States Code, with respect to subchapter VI of chapter 53 of such title, as added by subsection (a) of this section.”