Federal Manager's Daily Report

OPM meanwhile cautioned agencies that they must be able to document the need for making payments above the limit in effect since 2010.

Greater use of the payments must be “based on a critical agency need. Agencies, through their chief human capital officer or human resources director, should clearly document the critical agency need justifying each exception to their 3Rs spending limit and be prepared to provide information to OPM or OMB on approved exceptions upon request,” OPM said.

“While the 3Rs are important human resources tools that help agencies attract and retain employees, these incentives must be used consistent with the law and OPM’s regulations. OPM and agencies, through their CHCO and/or HR director, have specific approval, oversight, and accountability responsibilities in administering the 3Rs program.

“This includes the requirement for agencies to establish a plan prescribing payment approval criteria and requirements, document thoroughly the basis for paying each incentive, and review all retention incentives and group recruitment incentives at least annually to determine whether they should be revised or discontinued,” the memo said.

That plan must, at a minimum, be approved by the CHCO and/or HR director, it added.