U.S. Office of Personnel Management - Ensuring the Federal Government has an effective civilian workforce

NONMONETARY AWARDS FOR POLITICAL APPOINTEES DURING THE PRESIDENTIAL ELECTION PERIOD (5 U.S.C. 4508 AND 5 CFR 451.105(A))

Can any awards be given to political appointees during a Presidential election period?

The regulations at 5 CFR 451.105(a) are based directly on the legislation at 5 U.S.C. 4508, which was enacted in 1994 and applied for the first time to the period June 1, 1996, to January 10, 1997. Questions have arisen regarding the interpretation of the word "award" as it appears in this regulation. The term "award" as it appears in 451.105(a) should be treated within the constraints of its legislative interpretation since that particular regulation tracks the legislation so closely.

In the legislative history and other documents that led to the legislation at 5 U.S.C. 4508 that bans the granting of awards to political appointees during a Presidential election period, the subject under discussion was clearly limited to "bonuses" or awards with principally a monetary value. There is no evidence that the prohibition was intended to include nonmonetary awards that are primarily honorary in nature. Therefore, OPM interprets both the law and its accompanying regulation to prohibit any cash award and any other bonuses delivered under the cover of a nonmonetary award, i.e., any award with an apparent value that is more monetary than honorific. Applying this interpretation, award categories are treated as follows.

• Cash Awards
• Time-Off Awards
• Nonmonetary Awards

Cash Awards

The ban on awards (i.e., performance awards, special act or service awards, on-the-spot awards, etc.) that take the form of cash is absolute for political appointees during a Presidential election period. Under no circumstances may a political appointee receive an award in the form of cash, including any honorarium or stipend that may be associated with an agency honor award.

Time-Off Awards

Because a time-off award is ultimately delivered in the form of pay for time not worked, it must be construed in this context as tantamount to a cash award. Consequently, the ban on time-off awards is absolute. For the purposes of 5 CFR 451.105(a), a time-off award is considered "received" when it is granted. Under no circumstances may a political appointee receive a time-off award during a Presidential election period.

Nonmonetary Awards

The broad category of nonmonetary awards may take a wide variety of forms with a wide variance in monetary value, both in terms of direct cost and the appearance of such value. OPM has concluded that an agency may grant a political appointee a nonmonetary award during a Presidential election period, provided that the form of the honorary award avoids the appearance of replacing a bonus. Agencies must exercise good judgment in selecting honorific items. Such items should create the inherent impression of symbolic value (an honor being bestowed) rather than monetary worth (cash value). For example, presenting a commemorative photograph or a certificate in a simple, inexpensive frame would be appropriate, but presenting a Waterford carafe would not be.

Originally published on August 1996