Washington, D.C. 20530

April 11, 2006

MEMORANDUM FOR HEADS OF DEPARTMENT COMPONENTS

The Department completed the first year's implementation of its Awards Administration Policy at the close of FY 05. This policy applied to performance-based cash awards, but excluded Senior Executive Service (SES) bonuses, gain-sharing awards, special act/achievement awards, on the spot awards, and quality step increases. The proposed tier structure for assessing components was never implemented. We conducted an evaluation after the first year of implementation of this policy, and appreciate the input we received from your human resources officers. Our initial plan, which some of you recommended, was to increase the amount of monies to be set aside for performance awards. However, due to the budget situation, the non-SES policy will remain the same for FY06.

• All components are required to fully participate.



• There will be no tier structure.



• The established range for FY06 is .45 - .60 percent of the total GS salaries and expenses budget.



• Waivers for decreasing the amount to be spent will not be considered unless there are highly unusual circumstances.



• As in FY05, prior to expending award monies in FY06 each component must submit a written plan to the Assistant Attorney General for Administration. The plan must include the method the components will use to distribute the awards budget within the component, and the method components will use to ensure distinctions in performance when making awards. Once that plan is approved, then awards may be made.

If you or your staff has questions, they may contact Blane K. Dessy, Acting Director, Personnel Staff, on (202) 514-3148.

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