# Federal Government Clarifies GS Transfer Rules

The Federal Government has clarified policies regarding the retention of General Schedule (GS) grades and steps when employees transfer across agencies or job series. Employees transferring to positions at the same GS grade level generally retain their grade and step, provided their experience and qualifications are equivalent. However, transfers to different job series or agencies may lead to a lower GS grade if the new position's duties or qualifications differ significantly. Regulatory guidance under 5 CFR 531.405 outlines creditable service and allowable breaks in service, including provisions for retaining creditable service after up to a 52-week break under certain conditions.

- **Why this matters:** Procurement professionals managing federal workforce transitions should understand GS retention rules to accurately assess personnel costs and qualifications during interagency transfers.
- Agencies and contractors involved in workforce planning must consider potential grade adjustments when employees move across job series or agencies, impacting salary budgeting and contract staffing.
- Understanding 5 CFR 531.405 provisions helps ensure compliance with federal personnel regulations and supports effective human capital management in procurement contexts.
- Organizations supporting federal HR or staffing services can leverage this clarity to advise clients on transfer implications and optimize workforce mobility strategies.

**Jurisdictions:** federal
**Industries:** Professional Services
**Topics:** Regulatory Compliance
**Published:** September 17, 2026

### Government Entities
- Federal Government

### Key Quotes
> Assuming the transfer is to a job with the same grade creditable service for a wgi includes time in a prior GS position under a non-temporary appointment in any agency 5 CFR 531.405(a)(2). You can have 52 week break in service and retain the creditable service under 5 CFR 531.405(b)(3).
> — Commenter

### Sources
- [Do you keep GS when transferring across agencies and across job series?](https://www.reddit.com/r/FedEmployees/comments/1wj2vps/do_you_keep_gs_when_transferring_across_agencies) - reddit-fedemployees