Washington, D.C. 20530

June 18, 1996

MEMORANDUM FOR BUREAU PERSONNEL OFFICERS

As you are aware, on August 23, 1995, the Office of Personnel Management (OPM) issued final regulations to deregulate performance management and incentive awards, in order to provide agencies additional flexibility as called for by the National Performance Review. The final regulations delinked appraisal and awards by removing separate regulations on rating-based cash performance awards and consolidating the provisions into general awards regulations under Part 451 of 5 CFR.

As a result of the new regulations, components have greater flexibility in designing award programs. In addition to developing a performance management program tailored to the organization's mission and objectives, Department components must also develop an award program for granting awards under subchapter I of chapter 43 and subchapter I of chapter 45 of title 5, United States Code, and 5 CFR Part 451.

You should consult labor unions in developing your component award program, and encourage employee participation. The final procedures and criteria for the award program must be communicated to covered employees and supervisors (e.g., through formal training).

All award programs shall be developed in accordance with the following table of authority for the Department. The table is consistent with 5 CFR 451.107(a)(3), 28 CFR 0.143, and includes delegations of authority to approve cash awards as referenced in memoranda dated April 28, 1995, from the Assistant Attorney General for Administration to the Heads of Offices, Boards, and Divisions, and the Senior Management Staff of the Justice Management Division, and memorandum nos. 95-17, 95-18, and 95-19 dated November 30, 1995, from the Director, Office of Attorney Personnel Management, to the Heads of Offices, Boards, Bureaus, and Divisions.

Table of Authority for Cash Awards

Award programs shall include provisions for documenting, filing, and reporting cash and time-off awards in compliance with the OPM's Operating Manuals as defined in the final regulations.

If there are any questions regarding this matter, please contact Jolliette Spencer, of the Personnel Staff's Policy Group, on (202) 514-6778.

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