B-136019, MAY 28, 1958

B-136019: May 28, 1958

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AS WELL AS YOUR COMMISSION'S RESPONSIBILITY FOR DIRECTION OF THE GOVERNMENT EMPLOYEES' INCENTIVE AWARDS PROGRAM AND THE MATTER IS ONE IN WHICH WE ARE THEREFORE CONCERNED. WHILE WE AGREE WITH THE CONCLUSION REACHED THEREIN WE ARE OF THE VIEW THAT THE LAST TWO SENTENCES IN THAT ANSWER SHOULD BE ELIMINATED OR DELETED SO THAT THE ANSWER WILL BE CONSISTENT WITH THE ANSWER TO QUESTION NO. 1. QUESTION NO. 9 AS RESTATED IN YOUR PROPOSED LETTER IS AS FOLLOWS: "IS $25. MAY GRANT UNDER THE ACT FOR AN EMPLOYEE CONTRIBUTION IS $25. 000 MAXIMUM IS ONE IMPOSED BY LAW WITHOUT REGARD TO THE QUANTITY OF THE BENEFITS PRODUCED. IT IS OUR VIEW THAT PAYMENTS MADE IN ACCORDANCE WITH THE COMMISSION'S PROPOSED ANSWERS.

B-136019, MAY 28, 1958

TO HONORABLE HARRIS ELLSWORTH, CHAIRMAN, UNITED STATES CIVIL SERVICE COMMISSION:

YOUR LETTER OF APRIL 30, 1958, TRANSMITS A COPY OF A LETTER THE COMMISSION RECEIVED FROM THE DEPARTMENT OF THE NAVY RAISING SEVERAL QUESTIONS CONCERNING THE ADMINISTRATION OF THE INCENTIVE AWARDS PROGRAM UNDER TITLE III OF THE ACT OF SEPTEMBER 1, 1954 (GOVERNMENT EMPLOYEES' INCENTIVE AWARDS ACT), 68 STAT. 1112. YOU ALSO ENCLOSE A COPY OF THE COMMISSION'S PROPOSED LETTER OF REPLY TO THE NAVY.

INASMUCH AS THE COMMISSION'S ANSWERS TO THE QUESTIONS RAISED BY THE DEPARTMENT OF THE NAVY'S LETTER COULD RESULT IN THE PAYMENT OF CASH AWARDS UNDER THE ABOVE-CITED ACT, YOU REQUEST OUR DECISION ON WHETHER PAYMENTS MADE IN ACCORDANCE WITH SUCH ANSWERS WOULD BE PROPER UNDER THE GOVERNMENT EMPLOYEES' INCENTIVE AWARDS ACT.

AS YOU INDICATE THE QUESTIONS RAISED BY THE NAVY INVOLVE THE EXPENDITURE OF APPROPRIATED FUNDS, AS WELL AS YOUR COMMISSION'S RESPONSIBILITY FOR DIRECTION OF THE GOVERNMENT EMPLOYEES' INCENTIVE AWARDS PROGRAM AND THE MATTER IS ONE IN WHICH WE ARE THEREFORE CONCERNED.

EXCEPT FOR THE ANSWERS TO QUESTIONS NOS. 3 AND 9 WE CONCUR WITH THE COMMISSION'S PROPOSED ANSWERS TO THE QUESTIONS RAISED BY THE DEPARTMENT OF THE NAVY. IN CONNECTION WITH THE COMMISSION'S PROPOSED ANSWER TO QUESTION NO. 3, WHILE WE AGREE WITH THE CONCLUSION REACHED THEREIN WE ARE OF THE VIEW THAT THE LAST TWO SENTENCES IN THAT ANSWER SHOULD BE ELIMINATED OR DELETED SO THAT THE ANSWER WILL BE CONSISTENT WITH THE ANSWER TO QUESTION NO. 1.

QUESTION NO. 9 AS RESTATED IN YOUR PROPOSED LETTER IS AS FOLLOWS:

"IS $25,000 THE MAXIMUM AWARD THAT MAY BE GRANTED FOR AN EMPLOYEE CONTRIBUTION UNDER THE ACT IRRESPECTIVE OF THE TOTAL BENEFITS?

WE UNDERSTAND THIS QUESTION RELATES TO DEPARTMENTAL AWARDS UNDER SECTION 304 (A) OF THE ACT, AND IN THE LIGHT OF SUCH UNDERSTANDING WE SUGGEST THE FOLLOWING ANSWER TO THIS QUESTION:

IN VIEW OF THE PROVISIONS OF SECTION 304 (G) OF THE ACT, THE MAXIMUM CASH AWARD THAT A DEPARTMENT HEAD, WITH THE APPROVAL OF THE CIVIL SERVICE COMMISSION, MAY GRANT UNDER THE ACT FOR AN EMPLOYEE CONTRIBUTION IS $25,000 IRRESPECTIVE OF THE TOTAL BENEFITS. THE $25,000 MAXIMUM IS ONE IMPOSED BY LAW WITHOUT REGARD TO THE QUANTITY OF THE BENEFITS PRODUCED.

IT IS OUR VIEW THAT PAYMENTS MADE IN ACCORDANCE WITH THE COMMISSION'S PROPOSED ANSWERS, AS MODIFIED HEREIN, WOULD BE PROPER UNDER THE GOVERNMENT EMPLOYEES' INCENTIVE AWARDS ACT.