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A performance-based cash award, also commonly known as a rating-based
award, is a lump-sum cash payment authorized by 5 U.S.C. 4505a and 5 CFR
451.104 and requires only the most recent rating...
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Yes. This policy does not limit agencies' ability to establish award
programs to support their performance culture. However, for
rating-based awards, agencies must ensure that employees with higher
ratings of record receive...
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Yes. Paying higher performers higher awards supports the merit system
principle, "appropriate incentives and recognition should be provided
for excellence in performance." (5 U.S.C. 2301(b)(3))
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Yes, regulations allow agencies to grant non-GS
employees (except for members of the Senior Executive Service)
rating-based awards if the employees -
are covered by 5 U.S.C. chapter 45,...
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When employees with higher ratings of record receive larger rating-based
cash awards than those with lower ratings of records, agencies are
making meaningful distinctions based on levels of performance.
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OPM issued these regulations to make clear the
following:
rating-based cash awards must be based on a rating of record at
the "fully successful" level...
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The regulations only affect rating-based cash awards granted by agencies
using the authorities in 5 U.S.C. 4505a and 5 CFR 451.104(a)(3).
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Agencies must design the provisions of their programs for rating-based
awards to require meaningful distinctions based on levels of
performance. All agency representatives who have a role in recommending
or approving rating-based...