[Code of Federal Regulations]
[Title 5, Volume 1]
[Revised as of January 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR451.104]

[Page 326-327]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
                CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT
 
PART 451--AWARDS--Table of Contents
 
                        Subpart A--Agency Awards
 
Sec. 451.104  Awards.

    (a) An agency may grant a cash, honorary, or informal recognition 
award, or grant time-off without charge to leave or loss of pay 
consistent with chapter 45 of title 5, United States Code, and this part 
to an employee, as an individual or member of a group, on the basis of--
    (1) A suggestion, invention, superior accomplishment, productivity 
gain, or other personal effort that contributes to the efficiency, 
economy, or other improvement of Government operations or achieves a 
significant reduction in paperwork;
    (2) A special act or service in the public interest in connection 
with or related to official employment; or
    (3) Performance as reflected in the employee's most recent rating of 
record (as defined in Sec. 430.203 of this chapter), except that 
performance awards may be paid to SES employees only under Sec. 534.403 
of this chapter and not on the basis of this subpart.
    (b) A cash award under this subpart is a lump sum payment and is not 
basic pay for any purpose.

[[Page 327]]

    (c) An award is subject to applicable tax rules, such as 
withholding.
    (d) When an award is approved for--
    (1) An employee of another agency, the benefiting agency shall make 
arrangements to transfer funds to the employing agency to cover the 
award. If the administrative costs of transferring funds would exceed 
the amount of the award, the employing agency shall absorb the award 
costs and pay the award; and
    (2) A member of the armed forces for a suggestion, invention, or 
scientific achievement, arrangements shall be made to transfer funds to 
the agency having jurisdiction over the member in accordance with E.O. 
11438, ``Prescribing Procedures Governing Interdepartmental Cash Awards 
to the Members of the Armed Forces''.
    (e) An award may be granted to a separated employee or the legal 
heir(s) or estate of a deceased employee.
    (f) A time-off award granted under this subpart shall not be 
converted to a cash payment under any circumstances.
    (g) When granting an award on the basis of a rating of record that 
is paid as a percentage of basic pay under 5 U.S.C. 4505a(a)(2)(A), the 
rate of basic pay used shall be determined without taking into account 
any locality-based comparability payment under 5 U.S.C. 5304 or an 
interim geographic adjustment or special law enforcement adjustment 
under section 302 or 404 of the Federal Employees Pay Comparability Act 
of 1990, respectively.