This chapter describes IRS awards and recognition policy and procedures.

The objective of the awards and recognition program is to reward and retain competent and talented employees by appropriately recognizing them for contributions to the Service's mission.

Positive feedback is always welcomed by employees and is consistently cited by recognition professionals as an extremely powerful workforce motivator. The IRS awards and recognition program provides management the means to assure that employees know that their contributions are valued and to recognize and award them, on the basis of merit, for commendable job performance, special acts or services, or other notable contributions to Government operations. Employees may be recognized individually, or as part of a group or team.

Recognition can take many forms ranging from a "Thank You!" for a specific accomplishment to a cash incentive or formal honors under an established awards program. Managers should utilize the form of recognition that is both appropriate to the situation and valued by their employees.

At management discretion, an award may be granted to an IRS employee on the basis of:

Awards and recognition program components include:

Additional guidance regarding IRS recognition program procedures is posted on the Human Capital Office (HCO) Awards and Recognition web site. The posted information supplements this chapter.

IRS divisions, units, and functions may establish recognition policies, programs, and procedures and issue guidance which is consistent with and supplements the provisions of this chapter. These offices may consult with the Performance Management Branch staff as they develop unit specific recognition programs. When proposed changes to awards or recognition programs would affect bargaining unit employees, advice should also be sought from the initiating office's human capital or employee relations staff and/or the HCO Workforce Relations Division.

General information on federal awards programs may be found at the Office of Personnel Management Rewarding web site. This information is guidance which does not supplement this chapter

Internal Revenue Code, Section 7804(a), Title 5 U.S.C., Chapters 43 and 45, and 5 CFR Part 451, Subpart A authorize agencies to grant monetary, honorary, or informal recognition awards or time off, without charge to leave or loss of pay, to employees as individuals or members of a group or team. Title 5 U.S.C, Chapter 53 and 5 CFR Part 531, Subpart E authorize agencies to grant Quality Step Increases.

The IRS awards and recognition program is administered under authority delegated by the Department of the Treasury in Treasury Order 102-01, Delegation of Authority Concerning Personnel Management.

Authorized IRS officials may, within their delegated authority, and at their discretion, initiate and grant employee recognition described in this chapter.

All monetary and time-off awards and Quality Step Increases may be initiated, approved, certified, and authorized through HR Connect, IRS' human resource service delivery program. The use of HR Connect meets all documentation requirements for these awards. Pending the mandatory use of HR Connect, Form 9127, Recommendation for Recognition, (or other locally authorized equivalent award approval document) is optional if HR Connect is used to initiate, approve, certify, and authorize award payments. (Exception: specialized procedures are used to document bargaining unit performance awards under the National Performance Awards Agreement.)

The provisions of this program are applicable to all IRS employees with the exception of Senior Executive Service members and other employees serviced by the Office of Executive Services. (Refer to IRM 6.250.1.5(2)g.) and the Office of Chief Counsel.

Employees of other Government agencies may be granted awards for contributions that benefit the Service and meet its awards criteria.

Monetary awards may be recommended to the Department of Defense for a member of the armed forces for contributions that benefit the Service and meet its awards criteria.

Former Government employees and former armed forces members and their legal heirs or estates, if deceased, may be granted awards for contributions made during Governmental employment or active duty with the armed forces that benefited the Service and meet its awards criteria.

Monetary awards may be granted only to persons described in paragraphs 6.451.6(1) though (4). Private citizens and private or public organizations may be granted honorary awards for contributions that benefit the Service and meet its awards criteria.

Employee awards and recognition requirements of the IRS/NTEU National Agreement take precedence if they conflict with provisions of this chapter or supplemental guidance, except when the conflicting provisions are mandated by U.S. Office of Personnel Management regulations or Department of the Treasury directives.

Monetary awards and necessary expenses for the recognition of employee contributions will be paid from the funds or appropriations available to the Service, consistent with applicable financial management controls and delegations of authority.

When an award is approved for an employee of another Federal agency, arrangements should be made to transfer funds to the employing agency. If the administrative costs of transferring funds would exceed the amount of the award, the employing agency should absorb the award costs. For example, it would not be practical to transfer funds when an award is $200 or less. When another agency approves an award for an employee of the Service, arrangements should be made to transfer funds in the same manner.

No payment of an award or grant of a Quality Step Increase shall be made retroactive beyond the date of approval of the approving official unless there was a bona fide administrative error, resulting in a delay so that the award or Quality Step Increase was not granted timely as intended. (See also IRM 6.500.1.11.12, Effective Date of a Quality Step Increase.)

Performance awards are monetary awards that may be granted only to individual employees. If granted, these awards must be based on an employee's performance as reflected in the employee's most recent rating of record, provided that the rating is at the "Fully Successful" or "Met" level or above. Programs for granting performance awards as designed and applied, must make meaningful distinctions based on levels of performance.

Limitations.

Special act or service awards are monetary awards that recognize a superior accomplishment, productivity gain, or other personal effort, in connection with or related to official employment, that contributes to the efficiency, economy, or other improvement of Government operations; achieves a significant reduction in paperwork, or represents an accomplishment in the public interest. These awards may be granted to employees as individuals or members of a group or team. There is no limit to the number of special act awards that an employee may receive for accomplishments either as an individual or a member of a group or team.

Guidance on determining the amount of a special act award is provided in Form 9127.

Manager's awards are a type of special act or service award granted for more immediate recognition. These awards may be used to recognize an achievement performed in an exemplary manner, that is more limited in scope than a special act or service award. Manager's award amounts are limited to $50 to $250, and approval and processing procedures are more streamlined than for special act or service awards.

Bargaining unit employees, who on a regular basis, rather than occasionally:

Managers may approve bilingual awards of up to $350 for non-bargaining unit employees, who on a regular basis, rather than occasionally, utilize their bilingual skills. The non-bargaining unit employee’s performance must be at least fully successful (a "Met" or "Fully Successful" rating or higher) and they may not otherwise be compensated through another award based on the use of their bilingual skill. Non-bargaining unit employees will be eligible to receive one such award per calendar year.

Suggestion awards are based on the adoption of employee suggestions to improve the efficiency or effectiveness of Government operations. Detailed suggestion award program information can be found at the Employee Resource Center.

The purpose of the IRS time-off awards program is to increase employee productivity and creativity by rewarding their contributions to the quality, efficiency, or economy of Government operations; enhance the quality of work life for employees; and encourage and recognize accomplishments beyond normal job requirements. Time-off shall be granted in a fair, consistent, and objective manner without discrimination.

At management's sole discretion, any monetary award may be paid in one of three forms:

Detailed time-off award procedures are described in Exhibit 6.451.1-2, Time-Off Award Program Procedures.

Honorary awards are symbolic non-monetary recognition items such as certificates, plaques, medals, or similar items which provide suitable commemoratives of employees' notable achievements.

Established IRS honorary awards include:

Service officials may establish and grant other honorary awards and utilize recognition items to recognize notable achievements of individuals or members of a group or team. These honors may be granted either separate from or in conjunction with monetary awards. For example, at management discretion, a commemorative plaque may be awarded in conjunction with a monetary special act award.

Honorary awards and the forms that they take reflect on IRS because they demonstrate the activities that IRS values. Recognition items, which may include plaques and similar memorials, should be chosen carefully to clearly symbolize the achievement and/or the employer-employee relationship. Honorary awards may also be utilized to recognize notable volunteer community service performed by IRS employees and volunteer service performed on behalf of IRS through activities such as the Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs. Honorary awards should take an appropriate form to be purchased with public funds and they should be conferred in a manner that preserves the credibility and integrity of the Service and its recognition programs.

When utilized, honorary awards should not duplicate the Service's existing honorary recognition programs which are administered by Agency-Wide Shared Services (AWSS). Existing programs include the performance award certificate program and the IRS Federal Career Service Recognition Program.

Informal recognition affords a way to provide more frequent and timely acknowledgement of notable individual or group accomplishments. This form of recognition is appropriate for achievements that may not meet the criteria described for other awards and might otherwise go unrecognized. A simple expression of appreciation or other positive feedback is one of the most effective ways to recognize employee accomplishments. Informal recognition items of nominal value (such as mugs, pins, note pads, mouse pads, or other similar low cost items) may be utilized as informal recognition. As with honorary awards, these items should take an appropriate form to be purchased with public funds and should preserve the credibility and integrity of the IRS recognition program.

The Albert Gallatin Award is the Department of the Treasury’s highest honorary career service award. It is conferred by the Secretary upon the retirement or death of a federal employee who served twenty or more years in the Department and whose record reflects fidelity to duty. The HCO Benefits and Services Team provides guidance and procedures regarding employee eligibility and the distribution of Gallatin Awards.

These prestigious honors are sponsored by agencies or organizations outside of IRS in recognition of notable achievements in the public sector. The external awards program is administered by the Human Capital Office. Additional information may be found at the Employee Resource Center and IRS division, unit, and function web sites.

A Quality Step Increase (QSI) is a faster than normal within-grade pay increase from one step of an employee’s General Schedule grade to the next higher step of that grade. The purpose of a QSI is to provide incentive and recognition for excellence in individual employee performance. A QSI should be made effective as soon as practicable after it has been approved. QSIs are granted in addition to regular within-grade increases and do not affect the timing of an employee's next regular within-grade increase, unless the QSI places the employee in step 4 or step 7 of their grade. In these cases, within-grade waiting periods are extended an additional 52 weeks.

A QSI is not required but may be granted at management discretion only to an employee who receives an Outstanding performance rating of record, provided management has determined that the employee’s sustained performance is expected to continue, and is so superior that it warrants this special form of recognition and incentive. Additionally, a QSI may be granted only to an employee who:

The IRS and the National Treasury Employees Union executed a Memorandum of Understanding (MOU) regarding QSI participation rates on April 20, 2001. Information about the MOU is posted on the Human Capital Office (HCO) Awards and Recognition web site.

Bargaining Unit (BU) Employees.

Non-bargaining Unit (NBU) Employees.

The travel gainsharing awards program allows employees, who save the government money while traveling, to receive a portion of that money as an award. Additional information may be found at the Employee Resource Center.

Responsible officials should publicly recognize employees as they reach significant career milestones or are granted other awards. Heads of Office or their designated representatives may determine the nature (formal or informal), frequency, and similar details of recognition events. Presentations shall be made in an appropriate and dignified setting, such as group or staff meetings or scheduled employee recognition ceremonies. Ideally, presentations should be made as close to the anniversary date of the career milestone or grant of the award as possible. However, offices may determine that periodic ceremonies where large numbers of eligible employees may be honored, are more fitting.

Monetary awards are in addition to the regular pay of the recipient, and are subject to required deductions including those for Federal, state, and local income taxes.

Monetary awards do not affect the computation of salary differentials.

Monetary awards are not basic pay for any purpose.

Individual monetary awards are subject to the limitation on pay described in IRM 500.1.2.1, Administration of the Aggregate Limitation on Pay.

IRM 1.2.45, Delegations of Authority for Human Resource Management Activities, Exhibit 2, identifies the Service officials delegated the authority to approve awards and the award types and amounts which they may approve for both individual and group awards. Subordinate delegation orders document any re-delegations of this authority. All monetary awards and Quality Step Increases must be approved by a Service official at a management level higher than the individual who initiated the award recommendation.

Any award that would grant more than $10,000 to an individual employee requires approval by the U. S. Office of Personnel Management (OPM) through the Department of the Treasury. Any award that would grant more than $25,000, up to a limit of $50,000, to an individual employee requires interim approval by OPM and submission to the President for final approval. These limitations apply to the amount of an award granted to any individual employee, not to the total amount of a group award.

Award processing is administered by the AWSS Payroll and Personnel Systems Branch