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    Frequently Asked Questions::Are rating-based performance awards subject to the $10,000 and $25,000 approval thresholds?

    Are rating-based performance awards subject to the $10,000 and $25,000 approval thresholds?

    Yes. Under sections 4502(a) and (b) of title 5, United States Code, and the implementing regulations, such awards always have been subject to the Office of Personnel Management and Presidential approval, respectively. Section 4505a, of title 5, United States Code, further restricts performance awards to no more than 10 percent of the employee's annual rate of basic pay, except that a rating-based award may exceed 10 percent if the agency head determines that an employee's exceptional performance justifies such an award. However, in no case may a rating-based award exceed 20 percent of the employee's annual rate of basic pay. Note: The Department of Defense and the Internal Revenue Service only have to seek approval from the Office of Personnel Management to grant awards over $25,000.

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