(a) Chapter 45 of title 5, United States Code authorizes agencies to pay a cash award
to, grant time-off to, and incur necessary expense for the honorary recognition of,
an employee (individually or as a member of a group) and requires the Office of Personnel
Management to prescribe regulations governing such authority. Chapter 43 of title 5, United States Code, provides for recognizing and rewarding
employees whose performance so warrants. The regulations in this subpart, in combination with chapters 43 and 45 of title
5, United States Code, and any other applicable law, establish the requirements for
agency award programs.
(b) Section 4 of E.O. 11438 (Prescribing Procedures Governing Interdepartmental Cash Awards to the Members of
the Armed Forces, December 3, 1968) requires the Office of Personnel Management to
prescribe procedures for covering the cost of a cash award recommended by more than
one agency for a member of the armed forces for the adoption or use of a suggestion,
invention, or scientific achievement. Section 1 of E.O. 12828 (Delegation of Certain Personnel Management Authorities, January 5, 1993) delegates
to the Office of Personnel Management the authority of the President to permit performance-based
cash awards under 5 U.S.C. 4505a to be paid to categories of employees who would not be eligible otherwise.
(d) For the regulatory requirements for granting performance awards to Senior Executive
Service (SES) employees under 5 U.S.C. 5384, refer to § 534.405 of this chapter.
(e) An agency may grant performance-based cash awards on the basis of a rating of record
at the fully successful level (or equivalent) or above under the authority of 5 U.S.C. 4505a and the provisions of this part to eligible non–GS employees who are covered by 5 U.S.C. chapter 45 and this part and who are not otherwise covered by an explicit statutory authority
for the payment of such awards, including 5 U.S.C. 5384 (SES performance awards).
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