[Code of Federal Regulations]
[Title 5, Volume 1]
[Revised as of January 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR451.104]

[Page 338-339]
 
                    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. 534.405 
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.
    (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

[[Page 339]]

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 paid as a percentage of basic pay under 5 
U.S.C. 4505a(a)(2), the rate of basic pay used must include any 
applicable locality payment under 5 CFR part 531, subpart F; special 
rate supplement under 5 CFR part 530, subpart C; or similar payment or 
supplement under other legal authority. For an employee receiving a 
retained rate under 5 CFR part 536, subpart C (or similar authority, 
such as 5 CFR 359.705), the rate of basic pay is the maximum payable 
rate for the employee's grade or level, rather than the retained rate.

[60 FR 43946, Aug. 23, 1995, as amended at 69 FR 70359, Dec. 6, 2004; 70 
FR 31287, May 31, 2005; 70 FR 74995, Dec. 19, 2005]