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470 Recognition and Awards

471 Overview

471.1 Policy

The Recognition and Awards Program is intended to recognize employees who have achieved outstanding performance, have superior competence, or have performed some other significant accomplishment. The program is not intended to provide incentives to employees to meet predetermined goals. The program has been broadly designed to ensure that the recognition and award needs of all organizations and functional areas are met and provides awards ranging from a letter of appreciation to $10,000 in cash.

Recognition falls into five broad categories: (a) Certificates of Appreciation; (b) Service Awards, for which noncash recognition items, such as Service Award Pins, Service Award Certificates, and the Benjamin Franklin Award plaque are awarded; (c) Informal Awards, for which noncash gift items valued at less than $50 are awarded; (d) Formal Awards, for which cash and cash-equivalent items valued at up to $3,000 are awarded; and (e) Special Awards, including Team Awards, Vice President Awards, and Postmaster General Awards, for which cash and cash equivalent items up to $10,000 are awarded.

A summary description of service recognition and incentive awards is contained in Exhibit 471.1.

Exhibit 471.1
Service
Recognition and Incentive Awards

Award Category ELM Reference Employees
Eligible
Others Eligible Award Description
Certificate of Appreciation 472 All Contractors and customers Noncash recognition
Service Award Service Award Pin 473.2 Career blank Noncash recognition
Service Award Certificate 473.3 Career blank Noncash recognition
Ben Franklin Award 473.4 Career blank Noncash recognition
Informal Award 474 All Contractors Noncash
Gift Item
less than $50
Formal Award Spot Award 475.2 Career blank Cash or
Cash Equivalent
from $50 to $3,000
Quality Step Increase 475.3 Career
bargaining unit
on step schedule
blank Change in Base Pay
Special Award Team Award 476.2 Career blank Cash or
Cash Equivalent
from $50 to $2,000
Vice President Award 476.3 Career blank Cash
up to $5,000
Postmaster General Award 476.4 Career blank Cash
up to $10,000

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471.2 Management Control

Postal managers must use appropriate review and control procedures to identify individual performance, programs, or operational areas of superior work. Managers must ensure that related actions, such as performance evaluations, are fully considered to maintain compatibility between awards and other relevant factors. It is the responsibility of all levels of management to ensure that all employees are treated fairly and equitably and to provide a workplace environment characterized by recognition and celebration of business success. Vice presidents, district managers, senior and lead plant managers, and the Headquarters vice president of Employee Resource Management periodically audit the awards process.

471.3 Awards

471.31 Noncash

Noncash awards include the following:

a. Recognition items, such as pins, certificates, and plaques.

b. Gift items, such as mugs, clothing, event tickets, and gift certificates redeemable only for merchandise.

The market value of noncash awards should be less than $50.

471.32 Cash and Cash Equivalent

Cash awards are issued in the form of checks by the Eagan Accounting Service Center (ASC). Cash equivalent awards are issued in the form of a "gift check" or similar item that can be immediately converted to cash.

All cash awards and cash equivalent awards, regardless of value, are considered ordinary income and are subject to income tax withholding and involuntary deductions.

471.4 Budgeting Considerations

The award budget for an organization to cover informal noncash and formal cash and cash equivalent awards should be equal to at least 1/2 percent of aggregate salaries paid and should not exceed 1 percent of the aggregate salaries paid at the beginning of the fiscal year.

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471.5 Privacy Act Considerations

Award records contain personal information; therefore, such records must be handled and disclosed only as stipulated in the Privacy Act and implementing instructions (see Handbook AS-353, Guide to Privacy and the Freedom of Information Act). Records of cash awards received by employees are maintained in the privacy system USPS 120.070, Personnel Records - General Personnel Folder (Official Personnel Folders and Records Related Thereto). Records of achievement awards are maintained in USPS 120.100, Personnel Records - Performance Awards System Records.

471.6 Presentation Ceremonies

Whenever possible, installation heads should (a) coordinate publicity with public information personnel and (b) provide an appropriate ceremony for each award in the presence of the employee's managers and co-workers.

471.7 Documenting Awards

Awards are documented by a permanent record filed in the recipient's official personnel folder.

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