; or (B) a court of competent jurisdiction, and relates to functions transferred under section 554; and (2) is in effect upon the expiration of the transition period. 557. Transfer and rights of HUD employees (a) Transfer Each employee of the Department of Housing and Urban Development who performs functions transferred under section 554 shall be transferred to the FHA for employment, not later than the date of the expiration of the transition period, and such transfer shall be deemed a transfer of function for purposes of section 3503 of title 5, United States Code. (b) Guaranteed Positions (1) In general Each employee transferred under subsection (a) shall be guaranteed a position with the same status, tenure, grade, and pay as the position held by such employee on the day immediately preceding the transfer. (2) No involuntary separation or reduction An employee transferred under subsection (a) holding a permanent position on the day immediately preceding the transfer may not be involuntarily separated or reduced in grade or compensation during the 12-month period beginning on the date of transfer, except for cause, or, in the case of a temporary employee, separated in accordance with the terms of the appointment of the employee. (c) Appointment Authority for Excepted and Senior Executive Service Employees (1) In general In the case of an employee occupying a position in the excepted service or the Senior Executive Service, any appointment authority established under law or by regulations of the Office of Personnel Management for filling such position shall be transferred, subject to paragraph (2). (2) Decline of transfer The FHA may decline a transfer of authority under paragraph (1) to the extent that such authority relates to— (A) a position excepted from the competitive service because of its confidential, policymaking, policy-determining, or policy-advocating character