What is retained grade in SAP PSM-FG - Functions for U.S. Federal Government?

SAP Term: retained grade

• Component: PSM-FG

• Component Name: Functions for U.S. Federal Government

• Description: The grade an employee retains when moving to a position in a covered pay schedule that is lower in grade than the position held immediately prior to a demotion that resulted from a reduction in force, a reclassification, or a management decision as described in 5 CFR 536.103b.

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• Key Concepts: 
  Retained grade is a feature of the PSM-FG Functions for U.S. Federal Government component of SAP. It allows users to assign a grade to an employee that is higher than the maximum grade allowed by the pay plan, but is not reflected in the employee’s base pay. This grade is “retained” and can be used to calculate the employee’s salary when they are promoted or receive a raise.
  
  How to use it: 
  To use retained grade, first enter the employee’s current grade and salary into SAP. Then, enter the desired higher grade and salary into SAP. The system will automatically calculate the difference between the two grades and store it as a “retained grade”. This retained grade can then be used to calculate the employee’s salary when they are promoted or receive a raise.
  
  Tips & Tricks: 
  When using retained grade, it is important to remember that the higher grade will not be reflected in the employee’s base pay until they are promoted or receive a raise. Additionally, it is important to ensure that the higher grade does not exceed any pay caps or other restrictions that may be in place.
  
  Related Information: 
  For more information on retained grade, please refer to SAP Help documentation or contact your local SAP representative.