[Federal Register Volume 67, Number 156 (Tuesday, August 13, 2002)]
[Rules and Regulations]
[Pages 52595-52597]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-20435]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 67, No. 156 / Tuesday, August 13, 2002 /
Rules and Regulations
[[Page 52595]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 451
RIN 3206-AJ65
Awards
AGENCY: Office of Personnel Management.
ACTION: Interim rule.
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SUMMARY: The Office of Personnel Management (OPM) is issuing interim
regulations to amend the rules governing Presidential Rank Awards to
implement the Treasury and General Government Appropriations Act of
2002 which extends eligibility for Presidential Rank Awards to certain
senior career employees. The regulations also incorporate existing
requirements pertaining to rank awards for career members of the Senior
Executive Service (SES) currently found in guidance that OPM provides
annually to agencies and previously included in the former Federal
Personnel Manual. The amendments will also enhance the clarity of the
regulations and improve readability.
DATES: Effective Date: The interim regulations are effective on
September 12, 2002.
Comments Date: Comments must be received on or before October 15,
2002.
ADDRESSES: Send or deliver written comments to Joyce Edwards, Director,
Office of Executive Resources Management, U.S. Office of Personnel
Management, 1900 E Street NW., Room 6484, Washington, DC 20415.
FOR FURTHER INFORMATION CONTACT: Anne Kirby, (202) 606-1610, or e-mail
to [email protected].
SUPPLEMENTARY INFORMATION: The regulations amend part 451 to add a new
subpart, subpart C--Presidential Rank Awards. This new subpart
incorporates current requirements for awards for members of the Senior
Executive Service (SES) found in subpart B--Presidential Awards, as
well as new requirements for awards for senior career employees.
Background
Each year, the President may award the ranks of Distinguished
Executive and Meritorious Executive to a small select group of career
members of the Senior Executive Service (SES) to recognize sustained,
extraordinary leadership accomplishments. The Office of Personnel
Management administers the rank award program for the President. Agency
heads submit nominations for rank awards to OPM, which reviews the
nominations and recommends to the President which nominees should
receive the awards, in accordance with 5 U.S.C. 4507 and regulations
currently at 5 CFR part 451, subpart B. Section 4506 of title 5
authorizes OPM to prescribe regulations and instructions to implement
the Presidential Rank Awards program.
Ranks for Senior Career Employees
Section 641 of the Treasury and General Government Appropriations
Act of 2002 (Pub. L. 107-67, enacted 11-12-01) extended eligibility for
Presidential Rank Awards to certain senior career employees. This new
provision is codified in a new section of Chapter 45 of title 5 (5
U.S.C. 4507a). The public law defines a ``senior career employee'' as
an individual appointed to a position classified above GS-15 and paid
under 5 U.S.C. 5376, who is not serving under a time-limited
appointment or in a position that is excepted from the competitive
service because of its confidential or policy-making character. Senior
career employees are individuals who occupy Senior-Level (SL) or
Scientific-Professional (ST) positions.
Agency heads may nominate senior career employees to be awarded the
ranks of Distinguished Senior Professional for sustained extraordinary
accomplishment and Meritorious Senior Professional for sustained
accomplishment in a manner similar to the nominations of career members
of the SES.
In accordance with 5 U.S.C. 4507a, the regulations establish basic
eligibility criteria that are consistent with criteria long-established
for the SES. These eligibility requirements are: (1) Hold a career
appointment in a Senior-Level (SL) or Scientific-Professional (ST)
position that is subject to OPM position allocations under part 319 and
paid under 5 U.S.C. 5376 on the nomination deadline set by OPM; (2) be
an employee of the nominating agency on the nomination deadline set by
OPM; and (3) have at least 3 years of career or career-type Federal
civilian service above GS-15. Individuals who have been awarded a
Distinguished or Meritorious rank are not entitled to receive the same
rank during the next 4 fiscal years. In addition, the Governmentwide
number of career senior employees awarded the rank of Distinguished
Senior Professional may not exceed 1 percent of the total number of
career appointees to OPM-allocated Senior-Level (SL) and Scientific-
Professional (ST) positions, and the number awarded the rank of
Meritorious Senior Professional is limited to 5 percent of the total
number of career appointees to OPM-allocated Senior-Level (SL) and
Scientific-Professional (ST) positions.
As with SES nominations, agencies may nominate up to 9 percent of
their career senior employees for rank awards. Generally, there should
be no more than one Distinguished nominee from an agency for every five
Meritorious nominees, in keeping with the proportion of awardees
allowed Governmentwide.
Senior career employees receiving the Distinguished rank award will
receive a lump-sum payment of 35 percent of basic pay; those receiving
the Meritorious rank award will receive a lump-sum payment of 20
percent of basic pay.
Senior career employees will be eligible for rank awards beginning
with awards granted by the President in 2003.
Ranks for Members of the Senior Executive Service
The regulations incorporate existing eligibility and other
requirements for career members of the SES currently found in guidance
and instructions that OPM provides annually to agencies on rank award
nominations and that was previously included in the former Federal
Personnel Manual, Supplement 920-1. Although agencies are required
under 5 U.S.C. 4506 to comply with OPM regulations and instructions on
award programs, we have decided to
[[Page 52596]]
place all requirements in regulation. This is a more compact and
effective way to convey the requirements and may avoid
misinterpretations.
The basic eligibility requirements are: (1) The SES appointee must
hold a career appointment in the SES on the nomination deadline set by
OPM; (2) the nominee must be an employee of the nominating agency on
the nomination deadline set by OPM; and (3) the nominee must have at
least 3 years of career or career-type Federal civilian service at the
SES level. Qualifying service includes appointments in the SES, Senior
Foreign Service, the Defense Intelligence Senior Executive Service, and
similar senior executive systems. Qualifying service does not include
noncareer, limited term, or limited emergency appointments in the SES
or their equivalent, Scientific and Professional (ST) appointments, or
Senior-Level (SL) appointments.
The number of Distinguished and Meritorious rank recipients is
limited Governmentwide to a total of 6 percent of the career SES, but
there is no statutory limit on the number of recipients by agency. In
order to provide adequate competition, agencies may nominate up to 9
percent of their career SES appointees for rank awards.
Table of Changes
The following table lists the changes to the current regulations.
The ``current rule'' column lists the regulations in the current
subpart B affected by the interim regulations. The ``interim rule''
column shows the disposition of the current rules and new rules in the
new subpart C. The third column explains the changes.
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Current rule Interim rule Explanation of change
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451.201(c).................... 451.301(a)....... Moves current SES
provisions from
subpart B to the new
subpart C;
redesignates
remaining paragraphs
in 451.201.
451.203(a).................... 451.305(a) and Moves current OPM
(b). responsibilities for
reviewing rank award
nominations and
making
recommendations to
the President from
subpart B to the new
subpart C; separates
the responsibilities
into two paragraphs;
and redesignates
remaining paragraphs
in 451.203.
451.301(b) and Incorporates in
(c). regulation existing
SES rank award
eligibility
requirements. These
requirements have
been included in
annual rank award
guidance and
instructions to
agencies and were
included in the
former FPM
Supplement 92-1.
451.302(a)....... Implements new
statutory provisions
for rank awards for
senior career
employees.
451.302(b) and Provides rank award
(c). eligibility
requirements for
senior career
employees.
Requirements are
consistent with
those for SES
members.
451.303.......... Implements statutory
restrictions on
awards for SES
appointees and
senior career
employees, including
Governmentwide
limits on the number
of awards that the
President may grant
each year and limits
on how often
individual employees
can receive awards.
451.304.......... Implements statutory
provisions for
paying rank awards,
including individual
award amounts and
compliance with
annual aggregate
compensation limits.
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Waiver of Notice of Proposed Rulemaking
I find that good cause exists to waive the general notice of
proposed rulemaking. These regulations implement section 641 of Public
Law 107-67, which mandates that the amendments shall take effect for
awards granted in 2003. Implementing regulations must be published and
supplemental guidance issued to agencies before OPM invites agency
heads to submit nominations for the 2003 rank awards. The invitations
are issued annually, in July or August, in order to give agencies
maximum time to carefully evaluate and select nominees and prepare
supporting documentation. Agency head nominations for the 2003 awards
will be due to OPM in January 2003. The waiver of proposed rulemaking
is necessary to ensure timely implementation of the law as intended by
Congress.
E.O. 12866, Regulatory Review
This interim rule has been reviewed by the Office of Management and
Budget in accordance with Executive Order 12866.
Regulatory Flexibility Act
I certify that these regulations will not have a significant
economic impact on a substantial number of small entities because the
regulations pertain only to Federal employees and agencies.
List of Subjects in 5 CFR Part 451
Decorations, medals, awards, Government employees.
Office of Personnel Management.
Kay Coles James,
Director.
Accordingly, OPM is amending 5 CFR part 451 as follows:
PART 451--AWARDS
1. The authority citation for part 451 continues to read as
follows:
Authority: 5 U.S.C. 4302, 4501-4509, E.O. 11438, 12828.
Subpart B--Presidential Awards
Sec. 451.201 [Amended]
2. Section 451.201 is amended by removing paragraph (c) and
redesignating paragraphs (d) and (e) as paragraphs (c) and (d),
respectively.
Sec. 451.203 [Amended]
3. Section 451.203 is amended by removing paragraph (a) and
redesignating paragraphs (b) and (c) as paragraphs (a) and (b),
respectively.
4. Subpart C--Presidential Rank Awards is added to read as follows:
Subpart C--Presidential Rank Awards
Sec.
451.301 Ranks for the Senior Executive Service.
451.302 Ranks for senior career employees.
451.303 Restrictions.
451.304 Payment of Rank Awards.
451.305 Responsibilities of the Office of Personnel Management.
Sec. 451.301 Ranks for the Senior Executive Service.
(a) The circumstances under which the President may award the rank
of
[[Page 52597]]
Distinguished Executive and Meritorious Executive to a Senior Executive
Service (SES) career appointee are set forth in 5 U.S.C. 4507.
(b) To be eligible for a rank award, a senior executive must:
(1) Hold a career appointment in the SES, as defined at 5 U.S.C.
3132(a)(4), on the nomination deadline set by OPM;
(2) Be an employee of the agency, as defined at 5 U.S.C.
3132(a)(1), on the nomination deadline set by OPM; and
(3) Have at least 3 years of career or career-type Federal civilian
service at the SES level. Service need not be continuous.
(i) Qualifying service includes appointments in the SES, the Senior
Foreign Service, the Defense Intelligence Senior Executive Service, and
similar senior executive systems.
(ii) Qualifying service does not include noncareer, limited term,
or limited emergency appointments in the SES or their equivalent,
Scientific and Professional (ST) appointments, and Senior-Level (SL)
appointments.
(c) Each agency may nominate up to 9 percent of its SES career
appointees for rank awards.
Sec. 451.302 Ranks for senior career employees.
(a) The circumstances under which the President may award the rank
of Distinguished Senior Professional and Meritorious Senior
Professional to a senior career employee are set forth in 5 U.S.C.
4507a.
(b) To be eligible for a rank award, a senior career employee must:
(1) Hold a career appointment in a Senior-Level (SL) or Scientific-
Professional (ST) position that is subject to OPM position allocations
under part 319 of this chapter and paid under 5 U.S.C. 5376 on the
nomination deadline set by OPM;
(2) Be an employee of the agency on the nomination deadline set by
OPM; and
(3) Have at least 3 years of career or career-type Federal civilian
service above GS-15. Service need not be continuous. Qualifying service
includes appointments that are not--
(i) Time-limited; or
(ii) To positions that are excepted from the competitive service
because of their confidential or policy-making character.
(c) Each agency may nominate up to 9 percent of its career senior
employees for rank awards.
Sec. 451.303 Restrictions.
(a) Governmentwide limitations--SES. During any fiscal year--
(i) The number of career SES appointees awarded the rank of
Meritorious Executive may not exceed 5 percent of the career SES; and
(ii) The number of career SES appointees awarded the rank of
Distinguished Executive may not exceed 1 percent of the career SES.
(b) Governmentwide limitations--Senior career employees. During any
fiscal year--
(i) The number of career senior employees awarded the rank of
Meritorious Senior Professional may not exceed 5 percent of the total
number of career appointees to OPM-allocated Senior-Level (SL) and
Scientific-Professional (ST) positions; and
(ii) The number of career senior employees awarded the rank of
Distinguished Senior Professional may not exceed 1 percent of the total
number of career appointees to OPM-allocated Senior-Level (SL) and
Scientific-Professional (ST) positions.
(c) Frequency of awards. Individuals awarded a Distinguished or
Meritorious rank under this subpart shall not be entitled to be awarded
that rank during the following 4 fiscal years.
Sec. 451.304 Payment of Rank Awards.
(a) Receipt of the Distinguished rank by an SES career appointee or
a career senior employee entitles the individual to a lump-sum payment
of an amount equal to 35 percent of annual basic pay, which shall be in
addition to the basic pay paid under 5 U.S.C. 5376 or 5382, or any
award paid under 5 U.S.C. 5384.
(b) Receipt of the Meritorious rank by an SES career appointee or a
career senior employee entitles such individual to a lump-sum payment
of an amount equal to 20 percent of annual basic pay, which shall be in
addition to the basic pay paid under 5 U.S.C. 5376 or 5382, or any
award paid under 5 U.S.C. 5384.
(c) Payment of rank awards must comply with the restrictions on
annual aggregate compensation at 5 U.S.C. 5307.
Sec. 451.305 Responsibilities of the Office of Personnel Management.
(a) Annually, OPM shall establish criteria, including terms,
conditions, and evaluation factors, for rank award nominations, in
consultation with agencies and other stakeholders. Agencies shall
nominate individuals for rank awards in accordance with OPM criteria
and any other instructions.
(b) Annually, OPM shall review agency recommendations for
Presidential Rank Awards for SES career appointees and senior career
employees under 5 U.S.C. 4507 and 4507a, and recommend to the President
which of those individuals should receive rank awards.
[FR Doc. 02-20435 Filed 8-12-02; 8:45 am]
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