Administration Boosts Cap to 1.5%

In a welcome move, the administration announced it is raising the awards cap for front-line federal employees but NTEU would like to see it raised even higher. Federal agencies are authorized to spend up to 1.5 percent—up from the current 1 percent cap—of their aggregate salary spending levels on individual performance and contribution awards that will be paid in fiscal year 2017.

NTEU pushed hard to raise the cap for all federal workers who are on the front lines every day. Following the administration’s decision to raise the awards cap for those in the Senior Executive Service, National President Tony Reardon sent letters to the Office of Management and Budget and the Office of Personnel Management asking them to lift the cap on performance awards for all federal employees.

Recognizing high performers aids retention, boosts morale and improves productivity. NTEU will push agencies to exercise their budgetary authority and devote enough resources to provide awards to front-line employees.