[Administrative Leave as Incentive Pay]

B-208766: Published: Dec 7, 1982. Publicly Released: Dec 7, 1982.

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GAO was asked whether the Internal Revenue Service (IRS) may grant administrative leave as a form of incentive pay to employees who exceed a specified standard of performance. IRS also requested GAO to waive existing regulations to permit a 1-year test of the proposed system. The Office of Personnel Management (OPM) issues regulations to implement the Government Employees' Incentive Award Act. GAO does not have authority to waive regulations issued by OPM. However, OPM has authority to conduct and evaluate demonstration projects under agreements with other agencies. GAO stated that, without presupposing the OPM position on this issue, OPM may consider the IRS proposal as qualifying under its demonstration project standard. In the absence of OPM approval, GAO does not believe that the incentive award program may be instituted.

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