[Federal Register: June 21, 2006 (Volume 71, Number 119)]
[Proposed Rules]
[Page 35561-35562]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21jn06-29]
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Proposed Rules
Federal Register
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This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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[[Page 35561]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 451
RIN 3206-AL06
Awards
AGENCY: Office of Personnel Management.
ACTION: Proposed rule.
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SUMMARY: The Office of Personnel Management is issuing proposed
regulations regarding the employee awards program. These revisions
clarify the use of performance-based cash awards by providing that such
awards programs, as designed and applied, must make meaningful
distinctions based on levels of performance. This proposed change is
designed to ensure that better performers receive greater recognition.
DATES: Comments must be received on or before July 21, 2006.
ADDRESSES: Send or deliver written comments to Jerome D. Mikowicz,
Acting Deputy Associate Director for Pay and Performance Policy, Office
of Personnel Management, Room 7H31, 1900 E Street, NW., Washington, DC
20415; FAX: (202) 606-4264; or e-mail: pay-performance-policy@opm.gov.
FOR FURTHER INFORMATION CONTACT: Barbara Colchao, (202) 606-2720, FAX:
(202) 606-4264, or e-mail: pay-performance-policy@opm.gov.
SUPPLEMENTARY INFORMATION: OPM is proposing to amend the incentive
awards regulations in part 451 of title 5, Code of Federal Regulations,
to ensure effective application of the merit system principles and
related appraisal and incentive awards requirements and authorities.
This amendment would clarify that agencies using the incentive awards
authorities in chapter 45 of title 5, United States Code, to grant
employees performance-based cash awards on the basis of a summary
rating of record of ``fully successful'' or above must ensure that such
cash awards reflect meaningful distinctions based on levels of
performance. In other words, when agencies grant rating-based awards,
employees with higher performance ratings must be granted larger cash
awards, as a percentage of basic pay, than those with lower ratings.
This amendment is consistent with the merit system principle at 5
U.S.C. 2302(b)(3), which states, in part, ``appropriate incentives and
recognition should be provided for excellence in performance.''
Further, the requirements in 5 U.S.C. chapter 43 regarding appraisal of
employee performance state that the results of performance appraisal
shall be used as a basis for rewarding employees ``whose performance so
warrants.'' Taken together, these requirements are not reasonably met
by providing uniform amounts as performance-based cash awards
irrespective of differences in summary performance ratings.
OPM is mindful that many agencies already use established
performance-based awards programs that fully comport with the proposed
regulatory requirement. Nonetheless, the importance of linking rating-
based rewards to measured performance in a way that supports the merit
system principle warrants this amendment to the awards regulations.
In addition, OPM is proposing to clarify that a rating of record
used as the basis for a performance-based cash award must be at the
fully successful level (or equivalent) or higher. The statute at 5
U.S.C. 4505a already establishes this threshold for rating-based cash
awards granted to General Schedule employees and to other employees in
certain circumstances.
These amendments to the incentive awards regulations would make no
changes in regulations governing Senior Executive Service performance
awards granted under 5 U.S.C. 5384 and 5 CFR 534.405.
Waiver of 60-Day Comment Period for Proposed Rulemaking
Pursuant to 5 U.S.C. 553(b)(3)(B), I find that good cause exists to
waive the 60-day comment period for general notice of proposed
rulemaking. Limiting the comment period for the proposed regulations to
30 days will enable OPM to issue final regulations at the time when
most agencies are making their awards decisions, which will give
practical effect to these regulations.
E.O. 12866, Regulatory Review
This rule has been reviewed by the Office of Management and Budget
as a significant regulatory action in accordance with E.O. 12866.
Regulatory Flexibility Act
I certify that these regulations would not have a significant
economic impact on a substantial number of small entities because they
would apply only to Federal agencies and employees.
List of Subjects in 5 CFR Part 451
Decorations, Medals, Awards, Government employees.
Office of Personnel Management.
Linda M. Springer,
Director.
Accordingly, OPM is proposing to revise part 451 of title 5 of the
Code of Federal Regulations as follows:
PART 451--AWARDS
1. The authority citation for part 451 continues to read as
follows:
Authority: 5 U.S.C. 4302, 4501-4509; E.O. 11438, 33 FR 18085, 3
CFR, 1966-1970 Comp., p. 755; E.O. 12828, 58 FR 2965, 3 CFR, 1993
Comp., p. 569.
Subpart A--Agency Awards
2. In Sec. 451.101, paragraph (e) is revised to read as follows:
Sec. 451.101 Authority and coverage.
* * * * *
(e) An agency may grant performance-based cash awards on the basis
of a rating of record at the fully successful level (or equivalent) or
above under the authority of 5 U.S.C. 4505a and the provisions of this
part to eligible non-GS employees who are covered by 5 U.S.C. chapter
45 and this part and who are not otherwise covered by an explicit
statutory authority for the payment of such awards, including 5 U.S.C.
5384 (SES performance awards).
3. In Sec. 451.104, paragraph (a)(3) is revised and a new
paragraph (h) is added to read as follows:
Sec. 451.104 Awards.
(a) * * *
(3) Performance as reflected in the employee's most recent rating
of record (as defined in Sec. 430.203 of this chapter), provided that
the rating of record is at the fully successful level (or equivalent)
or above, except that performance
[[Page 35562]]
awards may be paid to SES members only under Sec. 534.405 of this
chapter and not on the basis of this subpart.
* * * * *
(h) Programs for granting performance-based cash awards on the
basis of a rating of record at the fully successful level (or
equivalent) or above, as designed and applied, must make meaningful
distinctions based on levels of performance.
[FR Doc. E6-9797 Filed 6-20-06; 8:45 am]
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