OPM and OMB have issued a joint memo telling agencies to limit for the rest of this fiscal year various types of employee awards to no more than 1 percent of all employees’ salaries total. The limit applies to ratings-based awards and special act awards; separately, the memo said agencies must continue to limit such spending to 2010 levels payments such as recruitment and retention incentives and quality step increases, and that they should continue to be sparing in even granting time-off awards. For career SES members and certain employees at a similar level, agencies must limit awards to 5 percent of aggregate salaries for such positions. In addition, the memo warned that if further sequestration cuts are made as scheduled in January, allowable amounts will be lowered proportionately; it told agencies to spend at a lower rate until the outcome is decided. A total freeze on awards to political appointees has been in effect since 2010 and also remains in place.
