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Federal Register / Vol. 64, No. 5 / Friday, January 8, 1999 / Notices

appointment authority that is based on the existing term appointment, but may extend up to five years with a one-year locally approved extension.  Benefits and appeal rights are the same as those currently afforded term employees.

Agencies may make a modified term appointment for a period that is expected to last longer than one year, but not to exceed five years with an option for one additional year, when the need for an employee's service is not permanent.

Reasons for making a modified term appointment include, but are not limited to, carrying out special project work; staffing new or existing programs of limited duration; filling a position in activities undergoing review for reduction or closure; and replacing permanent employees who have been temporarily assigned to another position, are on extended leave, or have entered military service.

Selections for modified term appointments will be made under competitive examining processes.  An agency may make a modified term appointment from the appropriate register or if the selectee is:

(a)  A person with eligibility for reinstatement;

(b)  Any veteran who meets the qualifications for a veterans readjustment appointment;

(c)  A person eligible for career or career-conditional employment under  §§ 315.601 through 315.610 inclusive, or under § 315.703;

(d)  A former term employee of the agency who left prior to the expiration of his/her appointment.  Reappointment must be to a position covered by the same term authority under which the individual previously served, and service under such reappointment may not exceed the expiration date of the original term appointment;

(e)  A disabled veteran who has been retired from active military service with a disability rating of 30 percent or more, or has been rated by the Department of Veterans Affairs within the preceding year as having a compensable, service-connected disability of 30 percent or more;

(f)  A person eligible for acquisition of competitive status for career appointment under 5 U.S.C. 3304(c).  (However, a term employee does not acquire a competitive status on the basis of this term appointment, nor does this term appointment extend or terminate the employee’s eligibility under 5 U.S.C. 3304(c));

(g)  A temporary employee who is within reach for term appointment to the same position from an appropriate register at the time of his/her temporary appointment, or during subsequent service in the position, provided that the register was being used for term appointments at the time the employee was reached and he/she has been continuously employed in the position since being reached; or

(h)  A person eligible under OPM interchange agreements.

An agency may place a modified term employee in any other modified term position provided the employee meets the qualifying requirements of that position.   However, such reassignment will not serve to extend the appointment beyond the original term appointment time period.  The qualifications of modified term employees will be determined according to OPM’s Operating Manual “Qualifications Standards for General Schedule Positions” and applicable DAWIA requirements.

Employees hired under the modified term appointment authority are in a temporary status but may be eligible for conversion to career-conditional appointments.  To be converted, the employee must (1) have been selected for the term position under competitive procedures, with the announcement specifically stating that the individual(s) selected for the term positions(s) may be eligible for conversion to career-conditional appointment at a later date; (2) have served two years of continuous service in the term position; and (3) be selected under merit promotion procedures for the permanent position.

Service under a modified term appointment immediately prior to a permanent appointment  shall count toward the probationary period requirements, provided contribution is adequate and the permanent

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