OPM May Tighten Incentive Payment Policies

OPM is reviewing policies on the so-called "3Rs"–recruitment, retention and relocation incentives–and may tighten rules governing the payments in response to the White House’s directive to reduce wasteful government spending. OPM also told agencies to review their use of the authorities to "ensure that ongoing and new authorizations for payments to employees are used only when necessary" and when consistent with agency needs and OPM policy. "The cost of using any of these pay flexibilities should be weighed against the benefits to be gained. This is especially important when it comes to retention incentives, which account for the clear majority of 3Rs costs in 2007 at $127 million," OPM said. It recommended that agencies review all retention incentives at least annually to see if the payments continue to be warranted.