OPM and OMB have issued a memo to establish budgetary limits on awards paid during fiscal 2014, saying that in the face of fiscal constraints it is critical that performance awards be managed in a manner that is cost-effective and leads to increased employee performance and organizational results.
Agencies must limit total spending on individual performance awards for career members of the senior executive service and senior-level and scientific and professional employees to no more than five percent of their respective aggregate salaries, according to the guidance.
It said agencies must also limit award spending to no more than one percent of total aggregate salaries for non-SES/SL/ST performance awards plus individual contribution awards for all employees.
In addition, agencies may not exceed fiscal 2012 spending levels on either category of awards.
Award-spending targets apply for awards paid during fiscal 2014, and OPM and OMB plan to monitor awards data provided under regular reporting procedures.
