The measure would create a “Cost Savings Disclosures Awards Fund” to be administered by OPM. Image: ImagePixel/Shutterstock.com
By: FEDweek StaffAmong the provisions drawing relatively little attention in the Senate version of a key budget measure is language creating a new authority to pay federal employees bonuses for calling attention to spending “not required for the purpose for which the amounts were made available.”
The provision reflects the “Bonuses for Cost-Cutters Act” that has been introduced in recent Congresses, on the Senate side with the primary sponsor being Sen. Rand Paul, R-Ky., now chair of the Homeland Security and Governmental Affairs Committee. It is part of the larger budget reconciliation bill, which Senate Republican leaders hope to pass through that chamber by July 4, with a conference to follow to address differences from the House-passed version.
The measure would create a “Cost Savings Disclosures Awards Fund” to be administered by OPM, to reimburse the value of cash awards to employees who make disclosures that an agency’s IG office—or designated official, in agencies without that office—confirms as resulting in cost savings.
Those awards would be the lesser of $10,000 or 1 percent of the long-term projected savings. Agencies would return the savings to the Treasury except that they could retain and reprogram 10 percent.
Says a committee summary, “instead of aggressively spending funds to justify larger appropriations, federal employees now will have a financial incentive to flag these funds and be rewarded for doing so.”
The authority would be in addition to current incentive awards programs, some of which have specific links to dollar savings.
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See also,
OPM Guidance Addresses How Veterans’ Preference Applies in RIFs
Top 10 Provisions in the Big Beautiful Bill of Interest to Federal Employees
A Pre-RIF Checklist for Every Federal Employee, From a Federal Employment Attorney
Work Longer or Take the FERS Supplement Now: Which is Better?
