Federal Manager's Daily Report

The National Defense Authorization Act for fiscal year 2004

establishes Human Capital Performance Fund that allows

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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.

To see the entire document, go to

http://www.opm.gov/oca/compmemo/2003/2003-19.asp.