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A. There are no Governmentwide limits on granting time-off awards. However, agencies should establish their own guidelines and limitations on how much time off is appropriate for various employee contributions. In addition, establishing overall periodic limits can be useful for preserving the integrity of the time-off award program, preventing abuse and/or criticism, and ensuring consistent application.

A. The regulations provide that time-off awards shall not be converted to cash. Agencies must document a time-off award, as well as cash awards, in compliance with the OPM operating manual, Guide to Processing Personnel Actions, and they must submit time-off award, as well as cash award, data to the Central Personnel Data File in compliance with the Office of Personnel Management operating manual, Guide to the Central Personnel Data File.

The "currency" of a time-off award is time, not money. Agencies have the authority to grant cash awards when they feel that is the appropriate form of recognition or incentive. In addition, a method for conversion would have to be developed. The obvious, apparently straightforward, method is to convert time to cash using an hourly rate of pay. However, this eliminates any benefit derived from perceived equity and lower-graded employees may well find such salary-based conversion unfair. For example, a fairly common practice is for an agency to grant a mixed-grade group of employees equal time-off awards. In such circumstances, the awards would convert to cash very unequally. In addition, agencies would face several administrative issues. For instance, they could face administrative problems associated with "withdrawing" a reported time-off award and "substituting" a cash award which would impact the integrity of agency and Office of Personnel Management reports on award use.

A. Unlike other forms of pay for time not worked (e.g., annual and sick leave), employees are not entitled to a time-off award. If an employee transfers from one agency to another, the gaining agency is not obligated to "honor" the time-off award. Therefore, any unused time-off awards are not transferable, unless a special arrangement is made with the receiving agency to honor the time-off award granted by the employee's former agency. Also, the losing agency may not convert the time off to cash (5 CFR 451.106(f)) and give that cash to the employee.

A. There is no Governmentwide time limitation on a time-off award. However, agencies should set their own policy concerning the time allotted to use a time-off award. Remember, if an employee transfers to another agency, the new agency is not required to honor the time-off award earned at the previous agency.

A. Each agency should develop policies to address these situations. Permitting use of time-off awards during premium pay work periods, such as while receiving night differential or holiday pay, is generally not recommended. An exception would be when the employee's regular work schedule or work site is covered by premium pay.

A. No. The circumstances appropriate for the use of compensatory time are not generally appropriate for a time-off award. Compensatory time is authorized in exchange for hours worked in excess of the employee's regular work schedule. Awarding time off instead of compensatory time violates the incentive awards concept of recognizing exceptional performance, as opposed to compensating for extended work schedules.

A. We would not recommend it. Giving employees the choice between different types of awards could have significant tax consequences. Employee choice usually involves the concept of constructive receipt. For more information on this issue see our document, Tax Issues for Awards or contact the IRS.

A. No. This limitation only applies to cash awards. However, agencies should remain sensitive to the perceptions that could arise from combining large time-off awards with substantial cash awards.