Tax Professional's Corner
Part 0
Chapter 4
Performance Management
Section 5
Awards
Contents
- (Refer to ``Guide to Employee Recognition'' Document 9670 for procedural
instructions)
- An agency may grant a cash, honorary, or informal recognition award, or
grant time off without charge to leave or loss of pay consistent with chapter
45 of title 5, United States Code (U.S.C.), to an employee, as an individual
or member of a group or team, on the basis of--
- A suggestion, invention, superior accomplishment, productivity gain, or
other personal effort that contributes to the efficiency, economy, or other
improvement of government operations or achieves a significant reduction
in paperwork;
- A special act or service in the public interest in connection with or related
to official employment; or
- Performance as reflected in the employee's most recent rating of record.
- The Awards Program is designed to improve Internal Revenue Service (IRS)
operations and services. Its purpose is to improve an employee's performance
by rewarding those government employees whose job performance exceeds acceptable
requirements, expectations, and standards.
- Chapter 45 of title 5, U.S.C. authorizes agencies to pay a cash award to,
grant time-off to, and incur necessary expense for the honorary recognition
of, an employee (individually or as a member of a group) and requires the
Office of Personnel Management (OPM) to prescribe regulations governing
such authority. Chapter 43 of title 5, U.S.C., provides for recognizing
and regarding employees whose performance so warrants.
- Section 4 of Executive Order (E.O.) 11438 (Prescribing Procedures Governing
Interdepartmental Cash Awards to the Members of the Armed Forces, December
3, 1968) requires OPM to prescribe procedures for covering the cost of
a cash award recommended by more than one agency for a member of the armed
forces for the adoption or use of a suggestion, invention, or scientific
achievement. Section 1 of E.O. 12828 (Delegation of Certain Personnel Management
Authorities, January 5, 1993) delegates to OPM the authority of the President
to permit performance-based cash awards under 5 U.S.C. 4505a to be paid
to categories of employees who would not be eligible otherwise.
- IRS employees:
- The provisions of this awards program are applicable to all IRS employees,
with the exception of Senior Executive Service (SES) employees (Refer to
5 U.S.C. 5384 or IRM 0920 for guidance).
- A person must meet the definition of "employee"
as defined by section 2105 and agencies as defined by section 4501 of
title 5, U.S.C., to be eligible for a monetary award and for most non-monetary
awards.
- Chief Counsel employees are excluded from this program. However, under
servicing arrangements, field personnel offices may provide assistance
in processing approved awards under Chief Counsel's Program for their field
employees.
- Non-IRS employees:
- Employees of other government agencies may be granted awards for contributions
that benefit the Service.
- Armed Forces members, may be recommended for a cash award to the Department
of Defense for a suggestion, invention, or scientific achievement that
contributes to the efficiency, economy, or other improvement of operations
of the Service.
- Former government employees and former armed forces members and their legal
heirs or estates if deceased, may be granted awards, if the contribution
being recognized was made during government employment or active duty with
the armed forces.
- Private citizens and organizations may be granted honorary awards of moderate
value for significant contributions that benefit the Service. Cash awards
may not be granted to persons who are not Government employees.
- Employee recognition requirements contained in IRS/NTEU negotiated labor
agreements will take precedence in granting employee recognition where
they conflict with provisions of IRM 0451, except when the provisions are
mandated by higher regulation.
- No payment of an award shall be made retroactive beyond the date of the
signatory approval of the Approving Official on the Form 9127, Recommendation
for Recognition.
- Performance Awards
- Performance Awards
--Only Performance Management System (PMS) employees are eligible.
Performance Awards must be based on an employee's annual rating of record
for the current appraisal period for which the award is being recommended.
This type of recognition is appropriate when the employee's annual rating
of record clearly shows that overall performance has exceeded acceptable
job requirements, expectations, and standards.
- Superior Accomplishment Awards
- Superior Accomplishment Awards
--Designed to improve government operations and services to the
public. Supervisors and managers can reward employees by granting monetary
and nonmonetary awards for contributions which both benefit the government
and exceed normal job requirements. The following are types of Superior
Accomplishment Awards:
- Special Act Awards
--a significant contribution or accomplishment in the public
interest which is a contribution either within or outside of job responsibilities,
scientific achievement, or an act of heroism.
- Manager's Awards
--a type of Special Act Award which is an award granted to an
employee by a manager for the immediate recognition of an employee's contribution
(known as an "On the Spot"
award at many agencies), on a short-term, one time act, short range project
or assignment which is performed in an exemplary manner but more limited
in scope than warranted by a Special Act Award. The purpose of Manager's
Awards is immediacy to the event, so approval procedures are more streamlined
than for other awards. Likewise, award amounts (cash or time off) are lower
than with Special Act Awards.
- Honorary Awards
--a non-monetary award such as a medal, certificate, plaque,
or other item that can be worn or displayed. "Other item"
means an award or honor that does not exceed the price range of a medal,
certificate, or plaque normally used for honorary recognition.
- Invention Awards
--a cash or honorary recognition granted to an employee for an
invention which is of interest to the U.S. Government or the public and
for which protection by patenting or publication is sought.
- Suggestion Awards
--(See IRM Suggestion Awards 0451.235 for legal provisions and
application)
- The Commissioner's Award
--award has been established as an expression of the Commissioner's
personal appreciation to recognize outstanding and significant service
in the public interest related to the activities of the IRS. It is the
highest award in the IRS for recognition of a deserving individual, group,
or organization.
- Chief Officer's, Assistant Commissioner's,
and Regional Commissioner's Award
--established to provide a means for Chief Officer's (CO's),
Assistant Commissioners (AC's), and Regional Commissioners (RC's) to recognize
outstanding and significant service in the public interest related to the
activities of the IRS when the achievement of the individual or group merits
high honor at the CO, AC, or RC's discretion.
- Director's Award
--award has been established to provide a means for Directors
to recognize outstanding and significant service in the public interest
related to activities of the IRS when the achievement of the individual
or group merits high honor at the Director's discretion.
- Albert Gallatin Award
--Treasury's highest career service award. 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.
- Career Service Award
--to honor employees who have 50 or more years of government
service.
- The yearly awards outside the Treasury honoring Government employees is
a program that is coordinated with the Department and administered through
the National Office.
0.4.5.1.11 (3/6/97)
Award Acknowledgement Combinations and Presentation
- In addition to a cash award, an employee should receive the appropriate
certificate and also may receive, depending upon the circumstances, a medal,
plaque, emblem, further consideration for a higher level award, etc. The
initiating office should present whatever form of acknowledgement publicly,
with the awardee's consent, as soon after the granting of the award as
possible.
- Normally one thinks of payment of an award as receipt of cash. There
are
other
means
or
methods
of recognizing the employee or
"payment"
of his/her award:
- Certificates of Recognition--appropriate for recognizing employees
who have provided significant, non-routine assistance within their own
function or for another function in the Service which does not meet the
criteria for any other type of award. Likewise, it is suitable for
presentation
or non-Service individuals or groups that have made
significant contributions
to the IRS.
- Time off--means an excused absence granted to an employee without
charge to leave or loss of pay (i.e. time paid while not on duty). A Time
Off Option (TOO) shall not be converted to a cash payment (5 Code of
Federal
Regulations [C.F.R.] 451.306(d). Management may determine
whether to offer
an employee the choice of a monetary equivalent in time
off in lieu of
cash for a Performance, Special Act, or Manager's
Award.
- Quality Step Increases (QSI)--an increase in a General Schedule
employee's rate of basic pay from one step of the grade of his or her
position
to the next higher step of the grade in accordance with section
5336 of
Title 5, U.S.C., and may only be granted to an employee who
receives a
rating of record of outstanding (or equivalent) (5 C.F.R.
531.504). Management
may determine whether to offer an awardee rated
outstanding (or equivalent)
the choice of a QSI in lieu of cash or time
off. Per 5 C.F.R. Section 531.506
and U.S. Comptroller General
B--229290 (6/10/88), QSI's may not
be initiated retroactively by
any agency.
- Emblems, Plaques, and Certificates--in recognition upon reaching
career service milestones. Offices are encouraged to publicly recognize
employees as they attain these milestones. The three types of length of
service awards are: Emblems, Plaques, and Certificates. Emblems should
be
given to eligible employees for 10 (bronze) and 20 (silver) years of
service. Plaques to be provided for the 25-year milestone and thereafter,
year tabs awarded upon completion of additional service in five-year
increments
(e.g. 30, 35, 40, etc.). In all cases where milestones are
reached by an
eligible employee, the appropriate certificate should be
presented in addition
to the emblem and
plaque.
- Acceptance of Award--Acceptance of a cash award under the Awards
Program constitutes an agreement that the use by the government of an idea,
method, or device for which the award is made thereby exempts the employee
from any claim of any nature against the government by the employee,
his/her
heirs or assigns.
- Deductions from Award Amounts--Cash awards are in addition to
the regular pay of the recipient, and are subject to the deductions for
Federal income tax withholding, and Medicare tax or Social Security tax
(FICA). The Medicare tax will not be deducted when FICA is withheld. These
withholding taxes must be deducted from the award, and the amount of the
award may not be adjusted upward by a sum sufficient to cover the
deductions.
Cash awards are not subject to retirement deductions.
- Salary Differentials--A cash award dos not affect the
computation
of salary differentials.
- A Cash Award--is a lump sum payment and is not basic pay for any
purpose. When granting an award on the basis of a rating of record that
is
paid as a percentage of basic pay under 5 U.S.C. 4505a (a)(2)(A), the
rate
of basic pay used shall be determined without taking into account
any
locality-based comparability payment under 5 U.S.C. 5304 or an interim
geographic adjustment or special law enforcement adjustment under section
302 or 404 of the Federal Employees Pay Comparability Act of 1990,
respectively.
- OPM Responsibilities--awards greater than $10,000 shall be
submitted
to OPM for review and approval. When a recommended award would
grant more
than $25,000 to an individual employee, OPM shall review the
recommendation
and submit it (if approved) to the President for final
approval.
- Heads of Office are required to allocate adequate funds to assure
prompt
action on awards.
- Cash awards and necessary expenses for the recognition of
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 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. Currently,
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.
Instructions for processing a transfer
of funds are included in Chapter 400
of IRM 1717, Administrative Accounting
Handbook.
- All awards granted under the authority of 5 U.S.C. 43 and 45 must be
documented
in the employee's Official Personnel Folder (OPF) to
reflect the nature
of the award, including the amount of the award, if
applicable. A copy
of the SF-50 which will be produced from the Payroll
System for monetary
awards should be used to document the employee's
OPF. Additionally, receipt
of an award under the above authorities, shall
be given due weight when
qualifying and selecting an employee for promotion
as required by 5 U.S.C.
362, and as agreed to in any negotiated labor
agreements. Form 9127, Recommendation
for Recognition, will be used as the
source document. Award documentation
should also be contained in an
awardee's Employee Performance File
(EPF).
- The Awards Program will be reviewed at least annually by Heads of
Office,
or their designees, to ensure the objectives and requirements of
the program
are met.
- Evaluation of management's effectiveness in administering the
Awards Program
should include such areas as the extent to which managers
are utilizing
the Awards Program to effectively promote employee
recognition, motivate
performance, observing processing time limits, fair
and equitable treatment
of employees, and measurable improvements in
organizational efficiency
and services.
- Regional Office and National Office Review Programs should
incorporate
Awards Program evaluation requirements. Periodic examination of
Awards
Program operations may be performed by Internal Audit
personnel.
- Audit and review functions should be used to identify groups or
individuals
whose contributions deserve recognition through
awards.
- At a minimum, the Awards Program files will be safeguarded in
accordance
with standards contained in IRM 1(16)12, Manager's
Security Handbook. If
necessary, Heads of Office may take appropriate
action to strengthen their
security
measures.
Internal Revenue Manual
Part 0 Chap. 4 Performance Management Sec. 5 Awards
(3/6/97)
01/22/1998 07:16:48 EST