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The pay freeze does not restrict these awards. Agencies are authorized to grant incentive awards and performance awards to SL/ST employees under chapter 45 of title 5. However, OMB Memorandum 13-05 directs that discretionary monetary awards should not be issued from sequestered funds while sequestration is in place, unless issuance of such awards is legally required. Discretionary monetary awards include annual performance awards, group awards, and special act cash awards. Agencies should contact their legal counsel to determine whether any awards they are considering are legally required.
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