The National Defense Authorization Act for fiscal year 2004
establishes Human Capital Performance Fund that allows
agencies to reward employees with additional, continuing
pay, the Office of Personnel Management said in a memorandum
for human resources officers.
Agencies can give continuing payments of up to 10 percent of
basic pay to GS, prevailing rate, foreign service and other
employees, but not to senior executives or their equivalents,
said OPM.
It also said no more than 15 percent of an agency’s employees
can get HCPF funds each fiscal year, and funds can only be
used for payments in the year awarded, after which agencies
are responsible for funding the payments. Also, for
retirement purposes, HCPF funds count as part of basic pay,
said OPM.
Agencies must establish and obtain approval for their HCPF
plans from OPM, which is administering the fund, and cannot
allocate funds until legislation for that is in place, said
the memo.
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