OMB, OPM Issue FY14 Awards Guidance
Last Friday, November 1, 2013, the Office of Personnel Management (OPM) and the Office of Management and Budget (OMB) issued a joint memo containing guidance on awards for fiscal year 2014.
The memo states, “Given the current fiscal environment and the budget constraints agencies will operate under in FY 2014, it is critical that agencies’ use of performance awards be managed in a matter that is cost-effective and leads to increased employee performance and organizational results.”
Individual performance awards for Senior Executive Service (SES) employees, and senior-level and scientific and professional (SL/ST) employees remains restricted, as it has been for the past two previous fiscal years, at five percent of their respective aggregate salaries.
Agencies are also directed to limit award spending to no more than one percent of total aggregate salaries for non-SES/SL/ST performance awards plus individual contribution awards, such as special act or spot awards, for all employees. Agencies may not exceed FY 2012 spending levels on either category of awards.
The memo says many award types, such as group awards and suggestion/invention awards, are frozen at FY 2010 levels, while stating that “agencies are encouraged to leverage existing award programs to reward employees who identify improvements that result in documented, validated cost savings and productivity improvements.”
To access the memo, M-14-02, Guidance on Awards for Fiscal Year 2014, click here.
Posted in General News