Washington, D.C. 20530

March 6, 2001

MEMORANDUM FOR BUREAU PERSONNEL OFFICERS

SUBJECT:      Awards after a Performance Rating

As we approach the end of the rating cycle, this serves as a reminder on the use of two awards that may be granted related to performance ratings.

Special achievement awards are one-time, lump sum cash awards granted in recognition of either an employee's sustained superior performance of assigned tasks or specific acts or services connected with or related to official employment. Several criteria must be met for granting an employee a special achievement award for sustained superior performance. The award can only be made on an individual basis. One or more important job elements must be performed for a period of at least six months in a manner which clearly exceeds normal requirements. The employee must not have received another cash performance award within the six months preceding the date of nomination. Since a special achievement award for sustained superior performance is based solely on past performance, the employee's level of future performance is not a major consideration.

A quality step increase (QSI) is synonymous with the term "step increase" used in 5 U.S.C. 5336, which means an increase in an employee's rate of basic pay from one step or rate of the grade of an employee's position to the next higher step of that grade or next higher rate within the grade. The purpose of a QSI is to provide appropriate incentives and recognition for excellence in performance by granting faster than normal step increases. Since a QSI will indefinitely raise the employee's future salary and is comparatively more expensive in the long run, the employee's performance, in addition to meeting the criteria outlined below, must give promise of continuing at the same high level in the same position. The QSI requires a considerably higher level of performance and the anticipation that it will continue. The monetary benefits to the employee are greater than those of a one-time, lump sum sustained superior performance cash award.

The Office of Personnel Management regulations found at 5 C.F.R. 531.504 permit agencies to develop appraisal programs that vary in numbers and descriptions of rating levels. The regulations provide, "A quality step increase shall not be required but may be granted only to:

(A) An employee who receives a rating of record at Level 5 ("Outstanding" or equivalent), as defined in part 430, subpart B, of this chapter; or

(B) An employee who, when covered by a performance appraisal program that does not use a Level 5 summary.

(1) Receives a rating of record at the highest summary level used by the program; and

(2) Demonstrates sustained performance of high quality ..."

Please, also, be aware that in accordance with 5 U.S.C. 5336, a QSI may not be granted to an employee who has received a QSI within the preceding 52 calendar weeks.