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

A. Regulations provide for four forms of awards that can be given to Federal employees: lump-sum cash awards, honorary awards, informal recognition awards, and time off awards.

A. Yes. The Office of Personnel Management must approve any cash award over $10,000. For awards over $25,000, the President must approve the amount over $25,000. The Department of Defense and the Internal Revenue Service (IRS) only have to obtain OPM approval for awards over $25,000. (This does not apply to SES performance and rank awards for SES and SL/ST employees.)

A. Honorary awards are generally symbolic and usually do not use monetary recognition at all. They are a gesture of respect given to employees to recognize their performance and value to the organization. Many agencies include this traditional form of high-level, formal recognition as part of their overall incentive awards programs. Informal recognition awards, on the other hand, are a type of award that may be given to reward performance that otherwise might not merit an award such as cash, time-off, or an honorary award. Agencies use these awards to provide more frequent and timely informal recognition to employees.

A. No. Employees of outside contractors may not receive direct payments from the Federal Government. Their employment, including pay, rewards, and discipline, must be handled by their employer, who is the contractor, not the Government. We are aware that in some situations, Federal employees and contract employees work side-by-side as members of the same overall work teams. In such cases, it might be desirable to use procurement flexibilities to set up a parallel awards program for the contract employees, which the contractor would be required to fund and administer. Under the terms of the contract, the Government could make additional payments to the contractor according to performance-related criteria specified in the contract, to provide the funds which the contractor would then distribute to the contract employees. Setting up and operating such a program would have to conform to procurement regulations, limitations, and requirements. Personal services contracts could also be written to allow for performance-contingent payments. The key issue is that such payments to individuals, whether under personal services or non-personal services contracts, would not be made under the awards authorities in title 5, United States Code.

A. Yes, but only to the extent that the program covers awards for suggestions, inventions, or scientific achievements. For those categories of awards, an agency can choose to have a single program in which both civilian and military employees can participate or even a specific award for which both might be eligible. Otherwise, for all other types of awards authorized by chapter 45 of title 5, United States Code, military employees are excluded.

A. It may be possible to recognize the contributions of private citizens to the Government, but it would not be done under the awards programs authorized by chapter 45 of title 5, United States Code. The awards statute in title 5 only authorizes granting awards to and recognition of Federal employees. An agency head may have other general authorizations and access to other funds for the accomplishment of the agency's mission that might be accessible for the recognition of private citizens who have made significant contributions to the completion of the agency's mission or the improvement of the Government.

A. Yes. Agencies can give Senior Executive Service (SES) employees any awards under subpart A of part 451 for which they qualify and are eligible. The specific exception in the regulations at section 451.104(a)(3) of title 5, Code of Federal Regulations, refers to performance awards because there is a separate statutory and regulatory authority for granting performance awards to SES employees.

A. Suggestion award programs are not specifically required by law or regulation. The Office of Personnel Management (OPM) is aware that some agencies have redesigned and streamlined their programs to reward employee ideas and innovations. However, it is well to remember that Congress established the suggestion award authority as the foundation of all employee incentive award authorities. Further, the program is rooted in a presumption that Governmentwide—not just agencywide—benefits are to be determined and rewarded. Consequently, OPM expects agencies to extend their interdepartmental good will and cooperate when suggestions are referred to them from other agencies for evaluation and possible adoption, even if the receiving agency has curtailed formal procedures for its own employees. Agencies that have retained their existing submission and evaluation systems rightfully expect reasonable consideration of ideas their employees put forward.

A. Yes, under certain circumstances. In the Federal Government, awards may take four forms — cash awards, time off awards, honorary awards, and informal recognition awards. You may use any combination of award forms to reward a specific contribution. For example, an employee might receive both a certificate and a cash award as recognition for a single contribution. However, the overall value of the award in its combined forms should not exceed the value to the organization of the contribution recognized. Thus, the award should be commensurate with the contribution of the employee.

The same principle applies whether you are combining award forms or granting two awards of the same form for a single contribution. For example, an employee might receive two awards in the form of cash for a single contribution when, upon evaluating the contribution recognized, the organization realizes the value of the contribution to the organization is greater than originally determined and deserves a larger award than the amount of the original award recognizing it. This situation tends to occur most frequently with employee suggestions. However, the total value of both awards should not exceed the value of the contribution recognized.

When the total award(s) is over $10,000 for a single contribution, agencies must seek OPM approval. In a case where an individual receives an initial award of $5,000 for a contribution, then receives another award for $6,000 upon re-evaluation by the agency for the same contribution, the aggregate amount is now $11,000. The agency must request approval for $1,000 from OPM before granting that amount of the second award.

A. Yes. In some circumstances, an employee may receive both an award based on a rating of record and an award based on a specific contribution in a single year. Agencies must consider carefully all the circumstances and the impact of the awards when granting both types of award.

First, an agency must consider whether the accomplishment recognized with a specific contribution award also was part of the employee's performance plan. When the accomplishment is not included in the performance plan (e.g., an employee's contribution to a special project not related to his/her expected performance), an agency would determine whether the accomplishment, on its own merits, deserves recognition without regard to whether it will grant a rating-based award to the employee.

When the accomplishment is included in, or related to, the employee's performance plan, it generally is more appropriate to grant a rating-based award, which recognizes the employee's overall performance. However, an agency may want to consider the extent of the accomplishment's value to the organization to determine whether further recognition is appropriate. In very rare circumstances when the value of the accomplishment to the organization is so high that the rating-based award alone would not fully recognize it, both a rating-based award and a specific contribution award may be warranted.

In all cases, the most important factor in deciding whether to grant multiple awards is that the total value of the awards must be commensurate with the value to the organization of the accomplishment recognized. In addition, agencies must ensure they comply with all applicable requirements, including OPM approval of awards over $10,000 for a single accomplishment.

A. Recognizing an employee for his or her many years of service generally is done by giving the employee a career service certificate and/or a pin. These forms of informal recognition items usually are most appropriate for this type of accomplishment. If an agency is considering a more substantial form of recognition, such as a cash or time-off award, the agency should ensure that it is recognizing the employee for demonstrating consistent exemplary performance during the employee's long service career and not merely recognizing the employee for "serving time" or "warming the bench."

A. Career Service Certificates recognize various milestones in an employee's Federal Career. Retirement Certificates recognize an employment career completed in the Federal Service. Available since 1988, these certificates provide a form of honorary recognition and may be presented to employees alone or in combination with other career service and retirement emblems or pins as they complete these significant milestones or retire. An agency may obtain these certificates by riding OPM's printing requisition and placing an order through the agency's printing officer. These certificates are not stocked by the Government Printing Office, so riding OPM's printing requisition is the only way to obtain them. Agencies should check with their printing officer for specific details on how to place orders.

A. Agencies give length of service certificates in recognition of years of service in the Government of the United States. Therefore, agencies might consider crediting both civilian and military service when computing eligibility for career service recognition, but that decision is left to each agency.

Note: For individual employees, Government service as defined for purposes of issuing length of service certificates is not necessarily identical to "creditable service" used to calculate eligibility for things such as leave accumulation or retirement.

A. This can be done, but only in very specific circumstances. The General Accountability Office (GAO) has determined that an agency can offer an incentive for completing customer satisfaction surveys only when collecting the information is -

• directly related to the completion of the agency's mission, and

• explicitly authorized by statute.

In its decision B286536, "In the Matter of: Prize Drawings by General Services Administration's Public Buildings Service," November 17, 2000, GAO determined it is permissible to offer and pay for these incentives under these particular circumstances.

GAO allows agencies to use appropriated funds to provide prizes to individuals to promote the collection of information necessary for the accomplishment of the agency's statutory mandate. The authorizing legislation for the Public Buildings Service (PBS) specifically requires PBS to survey its Federal customers. PBS felt it could increase its survey response rate by offering prizes distributed through a raffle drawing from among the survey respondents. After reviewing the specific legislation requiring PBS to conduct these surveys and with the caution that PBS should check with the Office of Management and Budget, GAO said it would be permissible to use appropriated funds to pay for the raffle prizes to be awarded to selected survey respondents. GAO finds that these prizes are intended to directly support fulfilling PBS' mandate to conduct surveys.

Please note that this in no way involves the use of the Government's employee awards authority set forth in chapter 45 of title 5, United States Code. Agencies grant awards under chapter 45 as incentives for, or in recognition of, employee contributions to the economy, efficiency, or effectiveness of Government operations. This GAO decision looks very specifically at the PBS statutory mandate to conduct the surveys and addresses only the use of its mission-related appropriated funds. Current OPM policy does not support including the element of chance (e.g., as it occurs with a raffle drawing) in an employee awards program established under chapter 45.

A. Governmentwide regulations do not prohibit using a time-off award as an incentive. What is described in the question is an informal suggestion program (i.e., the contest) that is encouraging employees to provide suggestions for one specific desired result – a title for the new newsletter. In this particular situation, setting a 1-day time-off award would be the incentive (i.e., the prize) for encouraging employee suggestions. The employee who submits the best title would be recognized with the time-off award for his or her contribution. Agencies who choose to do this, should make sure that everyone involved understands the rules of the contest (i.e., the suggestion program) and that the "winning" employee is being recognized for his or her valuable contribution to the organization and is not merely receiving a "prize." Also, make sure to follow the specific rules for using time-off awards established in the agency's awards program.

A. No. Agencies are not required or authorized to file documentation for awards on the right side (i.e., the long-term side) of the OPF, except that agencies must file SF50's for Presidential Rank awards and Quality Step Increases (QSI). Agencies are required to document when an individual receives a Presidential Rank award because senior executives are eligible to receive a Presidential Rank award no more than once in a 5 year period. Agencies must document QSIs because they are pay actions that affect employees' basic pay. (For further information, see OPM's Guide to Personnel Recordkeeping.)

Agencies may file documentation of award action in the Employee Performance File when maintained on the left side of the OPF (temporary documents) at their option. Agencies should remove any actions kept on the left side of the OPF when the employee leaves the agency.

A. The regulations recognize that many means of communications are available to agencies to help employees understand their specific awards program(s). Communications could include formal training, memos, brochures, one-on-one communication between supervisors and employees, or discussions during staff meetings. Agencies also can communicate awards program information through their Internet or intranet sites. One characteristic of a successful awards program is that it provides for communicating often to employees so that all employees covered by the program understand the criteria for awards.

A. Agencies can use the incentive awards authority (chapter 451 of title 5, Code of Federal Regulations) to establish a referral bonus program that provides incentives to employees who bring new talent into the agency. Each agency must determine whether using referral bonuses is appropriate for their agency. If an agency decides to establish a referral bonus program, it must establish the criteria it will use to determine when an employee would receive a referral bonus. (For more information see our Criteria for Referral Bonuses.)

A. No, the prohibitions contained in 18 U.S.C. 211 do not bar agencies from providing referral bonuses to employees who have referred potential job applicants. An opinion from the Office of Legal Counsel, Department of Justice, states that the prohibitions in title 18 seek to prevent candidates for federal employment from having to pay influence-peddlers or employment agencies to obtain government positions. See 13 Op. Off. Legal Counsel 277 (1989).

A. The agency is accountable for ensuring that the referral bonus program does not violate the legal requirements for broad public awareness of job openings; recruitment from appropriate sources to seek a work force drawn from all segments of society; and hiring selections based solely on relative ability, knowledge, and skills after a fair and open competition that assures equal opportunity to all candidates. (5 U.S.C. 2301(b)(1)(2); 5 CFR 2.1(a), 4.2; EEOC Compliance Manual, section 15.)

A. An employee who meets the agency-established criteria for such a bonus, whose official duties do not include recruitment, and who is not involved in any way in the selection of the referred individual would be eligible for a referral bonus. Also, an employee cannot refer a relative as defined at 5 U.S.C. 3110(a)(3) (that is, a father, mother, son, daughter, brother, sister, uncle, aunt, first cousin, nephew, niece, husband, wife, father-in-law, mother-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepfather, stepmother, stepson, stepdaughter, stepbrother, stepsister, half brother, or half sister).