Performance-Award Link Could Strengthen

Meanwhile, OPM has proposed to change rules governing incentive awards to strengthen employee rewards for good performance by requiring that performance-based cash awards programs must make meaningful distinctions based on levels of performance. The proposed regs in the June 21 Federal Register would clarify that agencies must grant larger awards, as a percentage of basic pay, to employees with higher ratings than to employees with lower ratings. OPM said that granting uniform amounts as performance-based cash awards irrespective of differences in ratings runs contrary to the purpose of such awards. It added that many agencies already make such distinctions in granting awards. The proposal also clarifies that the rating must be at least at the fully successful, or equivalent, level for an award to be made.