PERFORMANCE MANAGEMENT PROGRAM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00530R000400690007-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 67
• Document Creation Date: December 22, 2016
• Document Release Date: October 4, 2012
• Sequence Number: 7
• Publication Date: July 1, 1984
• Content Type: REGULATION

Declassified and Approved For Release 2012/10/04: CIA-RDP90-0053OR000400690007-1
DEPARTMENT OF THE AIR FORCE AF REGULATION 40-452
Headquarters US Air Force
Washington DC 20330 1 July 1984
Civilian Personnel '-~-t CL
PERFORMANCE MANAGEMENT PROGRAMp
'f 3 v ..~
This regulation establishes a program that integrates certain performance, pay, and recognition processes. It imple-
ments the requirements of 5 CFR, Part 430 (performance appraisal), Part 540 (merit pay), Parts 531 and 532 (within-
grade increases (WGI)), Part 315 (probation), and Part 451 (performance awards). It also implements that part of
Federal Personnel Manual (FPM) Supplement 335-1 pertaining to the use of performance appraisals in promotion.
This regulation is affected by the Privacy Act of 1974. The authority for maintenance of the systems of records
required by this document is 5 U.S.C. 4301-4308; 4501-4506; Office of Personnel Management (OPM)/Government
(GOVT) 1, General Personnel Records; OPM/GOVT 2, Employee Performance File System; 5 U.S.C. 1302, 2951,
3301, 3372, 4118, 4303, 8347; 5 CFR 432 of OPM Regulations; and Executive Orders 9379 and 12107. NOTE: For
applicability statement, see paragraph 1-6b.
Paragraph
Page
Chapter 1-Overview of the Program
Background Information ..........................................................................................................
1-1
1
Performance Management Concept ........................................................................................
1-2
1
Pay-For-Performance Concept ..............................................................................................
1-3
2
Recognition for Performance ..................................................................................................
1-4
2
Air Force Policy ......................................................................................................................
1-5
3
Authority, Coverage, and Exclusions .....................................................................................
1-6
3
Responsibilities ..........................................................................................................................
1-7
4
Funding and Cost Management Program ..............................................................................
1-8
5
Evaluating Program Effectiveness ..........................................................................................
1-9
5
Appeals and Grievances ...........................................................................................................
1-10
5
Chapter 2-The Performance and Promotion Appraisal Process
Performance Planning and the Appraisal Process .................................................................
2-1
7
The Initial Performance Appraisal .........................................................................................
2-2
7
The Annual Performance Appraisal .......................................................................................
2-3
7
Inservice Placement Actions ...................................................................................................
2-4
7
Off-Cycle Ratings .....................................................................................................................
2-5
7
Change of Rating Official ........................................................................................................
2-6
8
Developing the Performance Plan ..........................................................................................
2-7
8
Identifying Performance Elements .........................................................................................
2-8
8
Identifying Special Supervisory Performance Elements .......................................................
2-9
8
Identifying Critical Performance Elements ............................................................................
2-10
9
Setting Performance Standards ...............................................................................................
2-11
9
Using Similar Performance Elements and Standards ............................................................
2-12
9
Quality Control Review ...........................................................................................................
2-13
9
Appraising Temporary Duty Performance ............................................................................
2-14
10
Performance Appraisal Discussions ........................................................................................
2-15
10
Rating Employee Performance ...............................................................................................
2-16
10
Completing the Performance Plan ..........................................................................................
2-17
10
Rating Manner of Performance ...............................................................................................
2-18
10
Supersedes AFR 40-452, 1 October 1980 AFR 40-540, 30 June 1981/AFR 40-451, 9 September 1983. (See signature
page for summary of changes.)
No. of Printed Pages: 67
OPR: MPKE (Ms. Charlene Bradley)
Approved by: Mr. J. Craig Cumbey
? Writer-Editor: Novella S. Hill
Distribution: F; X (Special Non-Air Force List Kept by AFPDC.)
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Completion of AF Form 860, Part III ...................................................................................
Paragraph
2-19
Page
10
Processing AF Form 860 for GS, ST, and FWS Employees ..............................................
2-20
11
Processing AF Form 860 for GM Employees .......................................................................
2-21
11 ?
Uses of Appraisal ......................................................................................................................
2-22
11
Recognizing the Employee ........................ ....
2-23
12
Retaining the Employee ............................... .....
2-24
12
Training the Employee ............................................................................................................
2-25
12
Using the Results of Appraisal for Competitive Promotion and Inservice Placement......
2-26
12
Appraisal of Work Behavior ...................................................................................................
2-27
12
How the Appraisal of Work Behavior is Used ......................................................................
2-28
12
When the Appraisal of Work Behavior is Used ....................................................................
2-29
13
Algorithm Security and Control Requirements .....................................................................
2-30
13
Chapter 3-Probation for New Employees
Basic Probation Requirements .................................................................................................
3-1
16
Application of These Requirements ........................................................................................
3-2
16
Factors To Be Evaluated .........................................................................................................
3-3
16
Certifying Completion of Probation .......................................................................................
3-4
16
Action When Employee Fails Probation ...............................................................................
3-5
16
Notice of Action .......................................................................................................................
3-6
16
Action by the Reviewing Official ...........................................................................................
3-7
17
Chapter 4-Probation for New Supervisors and Managers
Basic Probation Requirements .................................................................................................
4-1
18
Application of These Requirements ........................................................................................
4-2
18
Exceptions .................................................................................................................................
4-3
18
Advance Notification ...............................................................................................................
4-4
18
Training .....................................................................................................................................
4-5
18
Full and Fair Evaluation ..........................................................................................................
4-6
18
Length of Probation .................................................................................................................
4-7
18 ?
Failure To Complete the Probation ........................................................................................
4-8
18
Crediting Service When the Probation is Interrupted ..........................................................
4-9
19
Relationship To Other Personnel Actions .............................................................................
4-10
19
Chapter 5-Dealing With Performance Problems
Identifying Performance Problems .........................................................................................
5-1
21
Action Required When a Medical Condition Affects Performance ....................................
5-2
21
Action Required When a Handicapped Employee has a Performance Problem ...............
5-3
22
Reassigning, Demoting, or Removing an Employee Based on Unacceptable
Performance ..........................................................................................................................
5-4
22
Chapter 6-The Air Force Recognition Program
Approval Levels .......................................................................................................................
6-1
24
Further Delegation ...................................................................................................................
6-2
24
Air Force Incentive Awards Board (AF-IAB) .....................................................................
6-3
24
Performance Awards Committee ............................................................................................
6-4
24
Requesting Reconsideration .....................................................................................................
6-5
25
Recognition of Supervisory Participation in the Program ...................................................
6-6
25
Presentation Ceremonies ..........................................................................................................
6-7
25
Community Publicity ...............................................................................................................
6-8
26
Braille Lettered Certificates .....................................................................................................
6-9
26
Recognition of Local Community or Civic Persons (Nonfederal Employees) ..................
6-10
26
Incentive Awards Program Annual Report (Civilian), IRCN 1059-OPM-AN .................
6-11
26
?
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Paragraph
Page
Chapter 7-Monetary Recognition for Performance
General Information .................................................................................................................
7-1
30
?
Funding Cash Awards .............................................................................................................
7-2
30
Sustained Superior Performance Award (SSPA) ..................................................................
7-3
30
Merit Pay Cash Award (MPCA) ............................................................................................
7-4
30
Quality Step Increase (QSI) .....................................................................................................
7-5
31
Special Act or Service Award (SASA) .................................................................................
7-6
31
Notable Achievement Award (NAA) ....................................................................................
7-7
32
Productivity Cash Incentive Program (PCIP) .....................................................................
7-8
32
Chapter 8-Honorary Awards and Length of Service Recognition
Types of Honorary Recognition .............................................................................................
8-1
38
Eligibility for More Than One Honorary Award .................................................................
8-2
38
Honorary Award for Non-US Citizen Employees ...............................................................
8-3
38
Processing Honorary Awards .................................................................................................
8-4
38
Recognition for Federal Service .............................................................................................
8-5
38
Chapter 9-Other Recognition
Other Air Force Recognition ..................................................................................................
9-1
44
Non-Air Force Performance Recognition Programs ...........................................................
9-2
44
Non-Federal Awards ...............................................................................................................
9-3
44
Letter of Commendation ..........................................................................................................
9-4
44
Letter of Appreciation .............................................................................................................
9-5
44
Special Command Trophies and Awards ...............................................................................
9-6
44
Wearing or Accepting Foreign Awards .................................................................................
9-7
45
Other Productivity Related Programs ....................................................................................
9-8
45
Chapter 10-Within-Grade Increases (WGI)
General Information .................................................................................................................
10-1
46
Waiting Period for the GS WGI ............................................................................................
10-2
46
Waiting Period for the FWS WGI .........................................................................................
10-3
46
Waiver of Requirement for Determination of Fully Successful Performance ....................
10-4
46
Granting the WGI ....................................................................................................................
10-5
46
Postponing the WGI ................................................................................................................
10-6
46
Withholding the WGI ..............................................................................................................
10-7
47
Employee Representation Rights in the Reconsideration Process .......................................
10-8
47
Reconsidering the WGI Withholding Decision ....................................................................
10-9
48
Action After the WGI is Withheld ........................................................................................
10-10
48
The Reconsideration File .........................................................................................................
10-11
48
Chapter 11-The Merit Pay System
Coverage ...................................................................................................................................
11-1
50
Identifying Positions and Converting Employees To the Merit Pay System .....................
11-2
50
Resolving Coverage Disputes .................................................................................................
11-3
50
Coverage Disputes Over Bargaining Unit Positions .............................................................
11-4
50
Composition of Merit Pay Units (MPU) ................................................................................
11-5
50
Appointing the Merit Pay Unit Official (MPUO) ..................................................................
11-6
51
Duties and Authority of the MPUO .......................................................................................
11-7
51
Merit Pay Committee ...............................................................................................................
11-8
51
The Merit Pay Process ............................................................................................................
11-9
51
Establishing the Employee's Merit Pay Records ..................................................................
11-10
51
Updating the Merit Pay Record .............................................................................................
11-11
51
Computing the Merit Pay Pool ...............................................................................................
11-12
52
Determining Available Merit Pay Funds ...............................................................................
11-13
52
Computing Merit Pay ..............................................................................................................
11-14
52
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Paragraph
Page
Computing Total Base Pay ......................................................................................................
11-15
52
Merit Pay Limitations ..............................................................................................................
11-16
52
Promotions Within the Merit Pay System .............................................................................
11-17
52
?
Promotions from the Merit Pay System To the General Schedule .....................................
11-18
53
Promotions Within the Merit Pay System While in Receipt of Pay Retention .................
11-19
53
Other Promotions and Conversions To the Merit Pay System ...........................................
11-20
53
Interrupted Service ...................................................................................................................
11-21
53
Merit Pay Coverage During Grade Retention ......................................................................
11-22
53
Movement To or From a Merit Pay Position .......................................................................
11-23
53
Implementing Comparability Increases ..................................................................................
11-24
53
Other Pay Changes ...................................................................................................................
11-25
53
Pay Determinations if Grade Retention is Terminated .........................................................
11-26
53
Pay Administration During Pay Retention ............................................................................
11-27
54
Pay Entitlement Upon Termination of Pay Retention ..........................................................
11-28
54
Effect of Temporary Promotions and Temporary Reassignments .......................................
11-29
54
Within-Grade Increases (WGI) ..............................................................................................
11-30
54
Computing the Highest Previous Rate for Merit Pay Employees .......................................
11-31
54
Pay Adjustment for Merit Pay Employees Supervising Federal Wage Systems (FWS)
Employees .............................................................................................................................
11-32
54
Change To Lower Grade from Temporary Promotion .......................................................
11-33
55
Chapter 12-Recordkeeping
Documentation and Location ..................................................................................................
12-1
57
Retention of Records in the CCPO ........................................................................................
12-2
57
Disposition of Records .............................................................................................................
12-3
57
Figures
7-1. Determining Award Amounts .....................................................................................................
7-2. Comparison for Quality Step Increase, Sustained Superior Performance Award and Merit
Pay Cash Award .......................................................................................................................
8-1. Awards by Federal Organizations ...............................................................................................
8-2. Sample Citations ............................................................................................................................
9-1. Major Awards Sponsored by Non-Federal Organizations .....................................................
10-1. Sample Decision To Withhold Within-Grade Increase ...........................................................
11-1. Merit Pay Timetable ...................................................................................................................
Tables
2-1. Appraisal Types, Periods, and Rating Dates ..............................................................................
6-1. Authority To Approve Awards and Performance Recognition ...............................................
6-2. Criteria for Various Types of Recognition .................................................................................
Attachments
1. Employee Coverage ..........................................................................................................................
2. Definition of Terms ...........................................................................................................................
Forms Prescribed
AF 860, Civilian Performance and Promotion Appraisal ....................................................................
AF 892, Merit Pay Cash Awards ...........................................................................................................
AF 2857, Quality Step Increase ..............................................................................................................
AF 2858, Sustained Superior Performance Award ..............................................................................
AF 2859, Notable Achievement Award ................................................................................................
AF 2860, Special Act or Service Award ..............................................................................................
1-6b(1) 4
7-4 30
7-5 31
7-3 30
7-7 32
7-6 31
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1-1. Background Information:
a. The Civil Service Reform Act (CSRA) of 1978
was enacted to improve government efficiency and give
sufficient authority to supervisors and managers and
adequate protection to employees. The CSRA requires
that new supervisors and managers serve probation; that
supervisors and management officials in General
Schedule (GS) grades 13 through 15 are covered by a
merit pay system; and that the appraisal and rating of
employees' job performance are based on written per-
formance elements and standards. The CSRA requires
that the performance appraisal rating is used as a basis
for decisions to pay, reward, assign, train, promote,
retain, or remove employees.
b. The Uniform Guidelines on Employee Selection
Procedures of 1978, commonly known as the Uniform
Selection Guidelines (USG), were developed by the
Departments of Justice and Labor, The Civil Service
Commission (now Office of Personnel Management
(OPM)), and the Equal Employment Opportunity Com-
mission (EEOC). The guidelines help agencies meet
their responsibilities under the Equal Employment Op-
portunity Act of 1972. The USG establishes criteria to
assure that employee selection procedures used in mak-
ing certain employment decisions are job-related and
valid. The FPM Supplement 335-1, Evaluation of Em-
ployees for Promotion add Internal Placement, imple-
ments the USG. It requires that when appraising work
behavior, skill, or other characteristics for promotion
consideration, the appraisal must be relevant to the job for
which the employee is being considered.
c. The performance and promotion appraisal system
established by this regulation is based on research and
development conducted by the Air Force Human
Resource Laboratory (AFHRL) Brooks AFB TX. The
system meets statutory requirements, the guidelines ex-
plained above, and OPM regulations.
d. Not all aspects of the performance management
program apply to all categories of employees (attach-
ment 1). For instance, while a performance plan is
required for most employees, it is not required for a
summer hire. Consequently, a cash award for a summer
hire must be supported by a narrative justification-not a
performance appraisal rating. In addition, there are
several kinds of recognition that are neither cash nor
honorary awards; for example, a promotion. Finally,
there are forms of recognition not necessarily based on
job performance; for example, a valor award. These
exceptions or deviation from the general rule of this
regulation are explained. Questions regarding the cover-
age of a particular process or requirement will be
directed through civilian personnel program channels to
HQ USAF/MPKE.
e. Supplementation to this regulation will be as out-
lined in AFR 40-171. In order to ensure consistent
application of this program, major command (MAJ-
COM) supplementation to this regulation must be
reviewed and approved by HQ USAF/MPKE. The
MAJCOM may review and approve base supplementa-
tion in a like manner.
1-2. Performance Management Concept. Performance
management is a continuous, systematic process by
which commanders, managers, and supervisors integrate
the planning, directing, and executing of organizational
work with civilian personnel performance appraisal, pay,
awards, promotion, and other systems. The process
includes four phases:
a. Phase 1-Planning and Assigning Work. The
higher management chain-of-command identifies mis-
sions and goals; assigns objectives and projects; develops
plans, initiatives, and strategies. The lower management
chain-of-command organizes work, makes specific
assignments; assigns duties and tasks; and establishes
standards to follow when doing the work. Individual
employee work requirements are documented and com-
municated in writing to the employee in a performance
plan.
b. Phase 2-Executing Work and Motivating Employ-
ees. Managers and supervisors direct and assist em-
ployees who perform the work. Supervisors develop a
sense of organizational commitment. They make clear
to employees how their work promotes the Air Force
mission, how their works relates to the work of other
organizations, and which tasks are most important. This
information, along with regulations, manuals, guidelines,
and clearly written performance plans, gives employees
direction and challenge. The work performed is tracked
and monitored; and, supervisors keep employees advised
of how well they are meeting expectations by giving
them personal performance feedback. Supervisors use
these discussions to review the relevance of initiatives
and tasks, keep projects on course, determine where
expectations should be altered, counsel and help em-
ployees who may be having difficulty, and recognize em-
ployees who are meeting or exceeding standards. Al-
though written documentation of each discussion is not
required, sufficient documentation of critical matters may
be required to support phase 3.
c. Phase 3-Appraising Individual Performance and
Assessing Organizational Achievements. This phase is
made easier to the extent that phase 2 has been con-
ducted effectively. If supervisors have kept employees
advised of how well they are doing, and appropriate
documentation is available, the actual event of appraising
performance and work behavior and assigning a rating
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will hold no surprises. In any event, supervisors and
managers exercise their performance rating and review-
ing responsibilities by comparing performance results
with the previously established written standards. Man-
agers and supervisors also assess the achievements of the
entire organization to identify problems and make adjust-
ments in procedures, resources, equipment, personnel
authorizations, and similar matters. This provides the
foundation for necessary change in the next phase 1
planning cycle, along with any necessary modifications
to individual performance plans.
d. Phase 4-Using the Individual Appraisal Rating for
Personnel Management Decisions. The end result of
the four-phase process is using the appraisal rating to
make a decision on pay and cash awards, promotion
consideration and ranking, performance enhancement,
training, assignment changes, developmental details,
reduction-in-force (RIF) "standing." (See paragraph
2-22 for additional information on using the results of
the performance appraisal process.)
1-3. Pay-For-Performance Concept. The concept is
similar to a cash bonus system that provides money in
addition to or over and above the basic salary that is
normally due, where there is no automatic requirement
or precommitment to do so; and where the total com-
bined salary and bonus are needed to properly recognize
the level of performance.
a. The Merit Pay System is based on the use of a
range of basic pay for each grade to compensate for
employee performance. The objective is to ultimately
place an employee in the pay range based on his or her
performance and the value of that performance to the
organization. The General Schedule (GS) and Federal
Wage Systems (FWS) are based on the use of a range of
pay for each grade with uniform pay steps WGI based
on specific time-in-grade waiting periods and evidence
that the demonstrated performance deserves the in-
creased compensation. Excellence in performances may
be recognized by advancing a GS employee in basic
salary by granting a quality step increase (QSI).
b. The pay-for-performance concept recognizes that
circumstances may exist where basic pay or the normal
pay step is insufficient or inappropriate to recognize the
nature, level, or worth of the performance. In this
circumstance, the basic pay may be increased with a QSI
(GS employee) or supplemented with a cash award as a
bonus. For example, cash awards may be appropriate
for:
(1) An employee who has performed in an out-
standing manner on a detail of either short or long dura-
tion.
(2) An employee who is at or near the maximum of
the pay range and whose exceptional performance on a
particular project warrants special, one-time recognition
beyond what could be handled within the pay range.
(3) An unusual, one-time employee accomplish-
ment that merits an immediate award.
c. It must be emphasized that it is the combination of
events and circumstances plus the use of managerial
judgment that determines the use of cash awards or
QSIs rather than any single criterion, such as the linking
of a final performance appraisal rating to an automatic
cash award. However, a list of potentially influencing
factors might include:
(1) Nature, frequency, and level of accomplish-
ments.
(2) Importance of the accomplishments to the
organization.
(3) Employee's time on the job and position in the
pay range.
(4) Effort expended.
(5) Work environment.
(6) Availability of funds.
(7) Recent or pending promotion.
(8) Pay compression.
(9) Recognition of a specific performance-related
factor such as reduction in paperwork.
(10) An employee's past receipt of a cash award
(specifically, the amount, reason, and time since the last
award).
d. For most employees, the performance appraisal
will guide consideration of the appropriateness of a cash
award in addition to a merit pay or WGI. For those
employees excluded from the formal performance
appraisal requirements of this regulation (attachment 1),
award recommendations are based on performance and
supported by a narrative justification. Cash awards are
not used to augment salary only because an individual is
at a pay ceiling. Neither will cash awards of a specific
percent or dollar amount be automatically linked to
specific appraisal ratings. Cash awards will not be used
solely as a substitute for merit pay, or used as an
automatic safety valve, or become a nonjudgmental
standard operating procedure. In other words, the
pay-for-performance concept must be applied to
individual employee circumstances. Pay and cash awards
used as a bonus form a unified, flexible way to reward
quality performance and distinguish among employee
performance. An automatic link between a single
criterion and a specific cash award, or the use of cash
awards to simply augment pay is contrary to Air Force
policy. The cash awards authorized in chapter 7 are
used along with basic salary to implement the pay-for-
performance concept. Implementation and maintenance
of the pay-for-performance concept will be made a
matter for special reviews or evaluations.
1-4. Recognition for Performance. The primary intent
of this program is to pay for performance. Adequate
funds must be budgeted to do this (paragraph 1-8).
However, it is contrary to Air Force policy for this
program to result in a practice where cash awards are
granted in exorbitant amounts, or where cash awards,
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WGIs, and QSIs, for example, are given routinely or to
employees who have not earned them. To preclude this,
judicious use should be made of honorary and non-
monetary recognition, including unique command and
base awards and trophies. More important, the job per-
formance rating must reflect the true level of per-
formance and productivity.
a. Superior performance will be recognized in some
way, in addition to basic pay (including merit pay or
WGI); excellent performance should be considered for
additional recognition; and fully successful performance
may be considered for recognition, provided the specific
recognition criteria are met. The type and extent of
recognition are not automatic because a specific type of
recognition or a specific amount of money does not nec-
essarily relate directly to a specific performance ap-
praisal rating. To determine which type of recognition
is most appropriate, supervisors must use good judgment
and select the recognition that will best reinforce the
relationship between performance and recognition. The
recommendation to recognize an employee is not
discussed with the employee until final action is taken.
b. Recognition will not be considered only in terms
of monetary reward. Supervisors must consider all
available methods of recognition and exercise flexibility
in matching monetary or nonmonetary recognition to
performance. Examples of such recognition might in-
clude granting a WGI for fully successful performance;
granting a cash award for performance that is above
fully successful, granting a QSI for superior performance
that is expected to continue; selection for promotion,
letter of commendation, letter of appreciation, or hon-
orary award.
c. Since a promotion is based partly on the quality of
performance in the employee's previous job, a promo-
tion following an excellent or superior rating is normally
considered to be full and adequate recognition of that
performance. Therefore, an additional cash award is not
usually warranted. In unusual circumstances, however,
based on extraordinary achievement, a cash or honorary
award may be given to a promoted employee when both
award and promotion recognition are clearly justified,
and the award criteria are met.
d. Similarly, multiple cash awards for the same period
of performance should be avoided. However, a Special
Act or Service Award (SASA) or Notable Achievement
Award (NAA) for performing one aspect of the
performance plan does not necessarily preclude subse-
quent monetary recognition, provided performance of
the entire work plan warrants it. Cash awards previ-
ously granted during the rating period which were based
on performance in that appraisal period should be con-
sidered in setting the amount of subsequent recognition.
e. In addition to an SASA granted upon local appli-
cation of a contribution, a further award may be granted
if there is wider application, or if there are greater
benefits than originally determined.
1-5. Air Force Policy:
a. Commanders, managers, and supervisors carry out
the spirit and intent of this program and the require-
ments of this regulation to increase productivity and
improve Air Force readiness.
b. Supervisors encourage employees to participate in
identification of job performance elements and develop-
ment of performance standards.
c. This program will be administered without regard
to politics, race, color, religion, age, sex, marital status,
national origin, or handicapping condition.
d. Special attention is to be paid to prevention of
unwarranted performance rating inflation. However,
required or predetermined distributions of performance
ratings are prohibited. Performance ratings will be
based solely on demonstrated and adequately substan-
tiated individual performance and the authorized rating
definitions, without regard to the performance ratings
received by other employees. The ratings on per-
formance behavior will be reasonably consistent with the
ratings on demonstrated performance.
e. Classified information contained in performance
appraisal or award recommendation documentation will
be processed according to Department of Defense
(DOD) 5200.1-R/AFR 205-1.
f. Employees receiving individual recognition under
AFR 900-48 are not eligible for recognition under this
regulation for the same act or service.
g. Pay and cash awards will be used together to pay
for the value of performance, and in an equitable, and
not excessive manner.
1-6. Authority, Coverage, and Exclusions:
a. Authority. The provisions of this regulation are
based on the following documents:
(1) Performance and Promotion Appraisal and Pro-
bation:
(a) 5 U.S.C. 3321; Competitive Service and Pro-
bationary Period.
(b) 5 U.S.C. 4302; Establishment of Performance
Appraisal Systems.
(c) 5 CFR, Part 315; Career and Career-Con-
ditional Employment.
(d) 5 CFR, Part 430; Performance Appraisal.
(e) FPM Chapter 335; Promotion and Internal
Placement.
(f) FPM Supplement 335-1; Evaluation of Em-
ployees for Promotion and Internal Placement.
(2) Merit Pay:
(a) 5 U.S.C. 5402; Merit Pay System.
(b) 5 CFR, Part 540; Merit Pay System.
(3) WGIs:
(a) 5 U.S.C. 5335; GS Periodic Step-Increases.
(b) 5 U.S.C. 5343; FWS Prevailing Rate De-
terminations, Wage Schedules, and Night Differentials.
(c) 5 CFR, Part 531; GS Pay Under the General
Schedule.
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(d) 5 CFR, Part 532; FWS Prevailing Rate Sys-
employees regarding merit pay coverage. The CCPO
conducts implementation and operational training;
provides advice and assistance to managers and supervi-
sors on performance and promotion appraisal, perform-
ance recognition, probationary requirement, performance
problems and other related performance management
areas; processes data into the PDS-C and ensures
effective program implementation and operation. The
CCPO provides final merit pay share information to
non-Air Force personnel offices servicing Air Force
General Manager (GM) employees according to inter-
agency servicing agreements. The CCPO also may be
required to support a MPU when collocated.
e. Air Force Manpower and Personnel Center
(AFMPC), Randolph AFB TX, develops and sends the
central table to CCPOs to process merit pay salary
adjustments and carries out responsibilities regarding
operation of the PDS-C.
f. Commanders, Management Officials, and Supervi-
sors. In addition to establishing MPUs, the commander
or a high level management official of a major organiza-
tional component will establish a quality control review
procedure to ensure chain-of-command review of
performance plans for adequacy before or early in the
appraisal cycle. The review will emphasize the validity
of job performance elements and performance standards
established by rating and reviewing officials. A similar
quality control review is made when performance ap-
praisals and ratings are completed by rating and re-
viewing officials. Management officials should obtain the
advice of the CCPO in establishing the quality control
procedure. Other responsibilities include:
(1) Rating Officials:
(a) Analyze the job, review mission statements
and anticipated work, review position descriptions, iden-
tify and communicate critical and noncritical perform-
ance elements to the employee.
(b) Establish and communicate performance
standards to each employee.
(c) Write performance elements and standards
into a performance plan.
(d) Conduct periodic reviews and discussions of
employee performance.
(e) Evaluate and rate performance and work
behavior, grant or recommend awards.
(f) Complete probation period certifications.
When the immediate supervisor is unable to discharge
these responsibilities, the next higher level supervisor
accomplishes them.
(2) Reviewing officials review and approve em-
ployee performance plans and ratings. They ensure that
performance plans are completed for each employee
before or within 30 days after the beginning of the
annual appraisal period. The reviewing official's
signature on the performance appraisal certifies that the
appraisal has been reviewed, the performance rating has
been approved, and that the reasons for any changes
tem.
(4) Performance Recognition:
(a) 5 U.S.C. 4502-4505; General Provisions;
Agency Awards, Presidential Awards, and Awards to
Former Employees.
(b) 5 U.S.C. 5336; Additional Step Increases.
(c) 5 U.S.C. 5403; Cash Award Program (Merit
Pay).
(d) 5 CFR, Part 451; Incentive Awards.
(e) 5 CFR, Part 531; Pay Under the General
Schedule.
(f) 5 CFR, Part 540; Merit Pay System.
b. Coverage and Exclusions. The coverage and exclu-
sions are complex and set forth in detail in attachment 1.
A partial explanation follows:
(1) The program does not apply to non-US citizen
employees, except for non-US citizen employees in
Panama to which only AF Form 860, Civilian Per-
formance and Promotion Appraisal, Part I, and chapters
7, 8, and 9 of this regulation apply. Other provisions
may be included upon local determinations.
(2) The program does not apply to members of the
Senior Executive Service (SES) except that they are
eligible for all honorary awards, nonfederal awards,
service awards, and the SASA.
(3) The program does not apply to US citizen non-
appropriated fund employees administered under AFR
40-7 except that they may receive honorary awards
according to this regulation.
(4) The program applies equally to GS and FWS
employees except that the FWS employees are not eligi-
ble, by law, for the QSI; and, except for differences
between the respective WGI systems.
1-7. Responsibilities:
a. The Directorate of Civilian Personnel, HQ USAF/
MPK, sets policies and procedures for probation,
appraisal, pay, cash award, and other programs covered
by this regulation. The Employee Relations Division,
HQ USAF/MPKE, develops and implements the pro-
gram, provides advice and assistance to field activities,
and establishes training requirements.
b. The Office of Civilian Personnel Operations
(OCPO) furnishes executive secretariat services to the
Air Force Incentive Awards Board (AFIAB) (chapter
6), submits reports, and provides research, evaluation
and Personnel Data System-Civilian (PDS-C) support.
c. MAJCOM and Comparable Organizations, through
the Director of Civilian Personnel, establishes supple-
mental policies and procedures when required, ensures
completion of essential training, and advises and assists
field activities. Commanders or designated management
officials establish Merit Pay Units (MPU) and appoint
MPU officials.
d. Installation Level. The Central Civilian Personnel
Office (CCPO) identifies merit pay positions and notifies
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made in the ratings have been discussed with the rating
official.
? (3) Merit Pay Unit Officials (MPUO) exercise
executive control over the MPU. They assure that each
GM employee has a performance plan that has been
reviewed for validity before or early in the appraisal
cycle (paragraph 2-13). They ensure that appraisal
forms are processed according to the Merit Pay Time-
table in chapter 11. They review the completed forms
and obtain correcting or clarifying substantiation from
the reviewing official. Finally, the MPUO approves the
final appraisal rating and approves or recommends any
accompanying award recommendations. The MPUO
may use a supporting Merit Pay Committee, if desired.
(4) Management officials and supervisors at all lev-
els, use the program to:
(a) Direct and manage the civilian force.
(b) Assist employees by advising, coaching, and
training.
(c) Recognize and reward high quality perform-
ance.
(d) Initiate administrative corrective actions,
when appropriate. Commanders and management
officials arrange for and conduct recognition ceremonies
for award recipients, peers, and family members when
appropriate and permitted (paragraph 6-7).
(5) Reconsideration officials consider the em-
ployee's request for reconsideration of denial of the
WGI and renders a final decision, in writing, to either
sustain or reverse the negative determination.
(6) Endorsing official, (where the decision is made
to use an endorsing official), provides an additional
higher level of review above the reviewing official. An
endorsing official may perform the quality control re-
view specified in paragraph 2-13. When reviewing per-
formance appraisals and ratings the endorsing official re-
views the documentation to assure consistency of ratings
of equal levels or quality of performance. Also see
attachment 2.
g. Employees cooperate with the supervisors in
developing performance elements and standards, discuss
t with supervisors any factors that should be considered in
appraising performance, and participate in the discussion
and documentation of accomplishments during appraisal
discussions and meetings.
1-8. Funding and Cost Management Program:
a. This program must be adequately funded in order
for it to work as intended and have a genuine and
positive effect on civilian performance and productivity.
Accountability for civilian personnel cost management is
vested in command, staff, and line management. Per-
iodic reviews of expenditures versus program require-
ments are made to ensure that adequate funds are avail-
able for a continuing viable program.
b. Cash awards and pay increases are financed from
operations and maintenance (O&M) funds, research,
development, test, and evaluation funds, or industrial
funds (operating expense), as applicable to the activity to
which the employee was assigned when the performance
was demonstrated. MAJCOMs and comparable organi-
zations budget funds necessary to conduct a successful
performance management program and include the funds
in element of expense 39X for each program element in
which civilian salaries are included. Except for the
Merit Pay System, the cost of basic salary, WGIs, cash
awards, and QSIs must be managed within available
funds under the workyear cost management and salary
control programs outlined in AFRs 40-112 and 40-312.
1-9. Evaluating Program Effectiveness:
a. The OCPO, Randolph AFB TX, is responsible for
Air Force civilian personnel program evaluation. The
OCPO Evaluation and Operations Division evaluates the
Performance Management Program operation during
special or general Air Force evaluation visits to field
activities and in similar joint evaluation visits conducted
by the OPM.
b. MAJCOM/Directors of Civilian Personnel estab-
lish and operate intracommand evaluation of Perform-
ance Management Program operations according to
AFR 40-5. This includes CCPO and organizational
self-evaluation analyses and reports, and evaluations
conducted by MAJCOM/Directors of Civilian Person-
nel. Evaluation will include comparison of performance
appraisal ratings and award distributions by organization,
pay systems, grade level, minority groups, and similar
categories. The findings are used for internal program
improvements and are not publicized or communicated
installation-wide.
1-10. Appeals and Grievances:
a. Performance Elements and Standards. The sub-
stance of performance elements and performance
standards may not be appealed to the Merit Systems
Protection Board (MSPB) or grieved under the Air
Force grievance system described in AFR 40-771.
Similarily, disputes concerning the identification of the
critical elements of a position and establishment of
performance standards are nongrievable and nonarbi-
trable under negotiated grievance and arbitration pro-
cedures.
b. Performance Ratings. Nonbargaining unit em-
ployees resolve disagreements on ratings according to
AFR 40-771. Bargaining unit employees resolve disa-
greements on ratings through a negotiated grievance
procedure, as appropriate.
c. Termination During Probation for New Employees
(Chapter 3). An employee may appeal to the MSPB a
decision to terminate him or her during a probationary
period only as provided in Civil Service Regulation
315.806. (See paragraph 3-6e.) This action is excluded
from coverage under AFR 40-771.
d. Return of an Employee During Probation as a
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Supervisor or Manager (Chapter 4). A supervisor or
manager probationer returned to his or her previous
nonsupervisory or nonmanagerial position according to
chapter 4, may not appeal the action to the MSPB or
grieve the action under AFR 40-771, or under
negotiated grievance and arbitration procedures.
e. Demotion or Removal for Unacceptable Perform-
ance. Except for a probationer covered by chapter 3 or
4, an employee who is a preference eligible or is in the
competitive service who has been demoted or removed
for unacceptable performance is entitled to appeal to the
MSPB or through the negotiated grievance procedure,
where applicable, but not both. Nonbargaining unit em-
ployees who are nonpreference eligibles in the excepted
service may use AFR 40-771 procedures to resolve such
disputes. Bargaining unit employees who are nonprefer-
ence eligibles in the excepted service and who are
covered by a negotiated grievance procedure may not
use AFR 40-771 procedures to resolve such disputes,
but instead must use the negotiated grievance procedure.
f. Awards. The nonreceipt of a cash award, honorary
award, or QSI may not be appealed to the MSPB, or
grieved under AFR 40-771, or under negotiated griev-
ance and arbitration procedures.
g. WGI. If the decision to withhold a WGI remains
unchanged after completion of the reconsideration proc-
ess explained in paragraph 10-9, the GS employee may
appeal the decision to the MSPB or grieve the decision
under applicable negotiated grievance system, but not
both. The FWS employee, by law, may not appeal to
the MSPB on this issue. Instead, the FWS employee
may grieve the WGI withholding decision under AFR
40-771, or an applicable negotiated grievance procedure
but not both.
h. Allegations of Discrimination:
(1) Nonbargaining Unit Employees. Matters in-
volving allegations of discrimination baed on race, color,
religion, sex, national origin, age, or handicapping condi-
tion are processed according to AFR 40-1613.
(2) Bargaining Unit Employees. Matters involving
allegations of discrimination that are otherwise grievable
under a negotiated grievance procedure may be raised
under that grievance procedure or under AFR 40-1613,
but not both. Selection of the negotiated grievance
procedure does not prejudice the right of the aggrieved
employee to request the EEOC to review a final deci-
sion made under the negotiated procedure in a matter
which involves a complaint of discrimination based on
race, color, religion, sex, national origin, age, or
handicapping condition.
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Chapter 2
THE PERFORMANCE AND PROMOTION APPRAISAL PROCESS
2-1. Performance Planning and the Appraisal Process.
The system described in chapter 1 provides a structured
process to:
a. Define duties and performance elements.
b. Set standards of performance.
c. Review progress.
d. Appraise performance.
If the employee is included in the process, it should be
easier to accomplish. The process is documented on AF
Form 860.
2-2. The Initial Performance Appraisal. When an em-
ployee is appointed, reinstated, or transferred to the Air
Force from another federal agency, the employee is
assumed to have an entrance appraisal of fully success-
ful. A fully successful rating will be automatically gen-
erated by PDS-C, in these circumstances, for AF Form
860, Parts III and IV. This assumed rating is used until
replaced by the rating required at the end of the first 90
days. Employees will not barred from promotion con-
sideration during this period but compete with fully
successful ratings. Ninety days is considered the min-
imum amount of time in which a supervisor can make an
objective appraisal. The employee must be appraised at
the end of, but no earlier than 90 days.
2-3. The Annual Performance Appraisal. The appraisal
period for all GM, GS, and Scientific and Technical
(ST) employees starts 1 July and ends 30 June. The
appraisal period for all FWS employees starts 1 Febru-
ary and ends 31 January. The corresponding effective
date of the appraisal for use in personnel decisions is 1
September and 1 April, respectively. A processing
period is allowed between the close out date of the
appraisal period and the effective date of the rating
(table 2-1). If the 90-day period for the initial appraisal
(paragraph 2-2) ends between 3 April and 30 June for
GM, GS, and ST employees or 3 November and 31
January for FWS employees, the supervisor may
recertify the initial ratings. These ratings become the
ratings of record for the annual appraisal. The supervi-
sor may recertify by submitting a letter to the CCPO or
by initialing the record copy of the AF Form 860. If
accomplished by letter, the letter must be attached to the
record copy of the AF Form 860. The employee is in-
formed of the recertification.
2-4. Inservice Placement Actions. Employees reassign-
ed, promoted, converted, or changed-to-lower grade
(table 2-1), will carry their current rating of record until
the next annual appraisal is completed. When an em-
ployee is reassigned, promoted, converted, or changed
to lower grade toward the end of the performance
appraisal period and the limited time remaining in the
period precludes setting up a valid, useful performance
plan that will afford reasonable opportunity for the em-
ployee to perform all critical elements and most noncriti-
cal elements of the position, the losing rating official will
complete and submit an appraisal form to the gaining
supervisor. The rating and reviewing officials of the
gaining organization may use that form in determining
the overall rating for the 30 June or 31 January rating.
When an employee is assigned to a GM position less
than 90 days before 30 June, a fully successful rating
will be assigned for merit pay purposes unless the assign-
ment results from a classification action, classification
appeal or Federal Labor Relations Authority (FLRA)
decision where the duties of the position did not change.
2-5. Off-Cycle Ratings. Ratings are normally given
only during the annual rating cycle. There are, how-
ever, instances when a rating must be given outside the
normal cycle. These are:
a. Rating Needed To Grant WGI. A performance
rating of at least fully successful is the basis for granting
a WGI. A WGI is withheld when an employee is
assigned a rating of less than fully successful. An
employee's performance may be reappraised at anytime
after the employee has demonstrated sustained per-
formance at the fully successful or above level. AF
Form 860, must be completed to support the granting of
the WGI and to provide an appraisal for use in com-
petitive actions. A new performance plan is initiated for
the duration of the current appraisal unless the employee
is within 90 days of the annual appraisal rating date. A
new WGI anniversary date is automatically established.
b. Rating Needed To Withhold WGI. When a deci-
sion is made to withhold the WGI because the
employee's performance has deteriorated to less than
fully successful, a rating of less than fully successful
must be assigned to support withholding the WGI. (For
an exception refer to "NOTE" in paragraph 10-7).
c. Rating Needed When Performance Improves From
Less Than Fully Successful to Fully Successful. Em-
ployees in a 2- or 3-year waiting period or the top step
of the grade whose annual performance appraisal rating
is below fully successful, may be reappraised at anytime
after the employee's performance has improved and been
sustained at the fully successful or higher level. The rat-
ing official must complete AF Form 860, assign a rating
of at least fully successful, have it recorded in PDS-C,
and initiate a new performance plan for the duration of
the current appraisal period. This out-of-cycle rating
will not change a future WGI anniversary due date.
d. If an employee has gone 1 year without a rating,
an off-cycle rating will be rendered. A PDS-C notice
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from the CCPO will advise the supervisor that a rating
is due. This would usually only happen when an em-
ployee changes pay plans through an inservice place-
ment action.
2-6. Change of Rating Official. If the rating official
changes or departs during the rating period and has
supervised the employee for 90 days or more, a closeout
appraisal and discussion is accomplished before the
supervisor leaves. This is not a rating of record for
official purposes and will not be documented in PDS-C
but serves only as information for the new supervisor. If
the rating official changes or departs during the rating
period and has supervised the employee for less than 90
days, the performance plan, standards, and documenta-
tion of performance progress discussions are transferred
to the new supervisor.
2-7. Developing the Performance Plan. Most employees
are required to have a performance plan. Attachment 1
identifies which employees must have a plan. Em-
ployees are informed of the job requirements upon entry
into a new position. Air Force Form 860, Part I, Per-
formance Plan, is completed within 30 days of accession.
The plan documents the required performance elements
and standards. For new employees, the performance
plan is restricted to the initial 90-day cycle. Each em-
ployee is encouraged to participate in the development
of performance standards for his or her position. How-
ever, the final determination of performance elements
and performance standards rests with management.
2-8. Identifying Performance Elements. The official
position description establishes a set of duties and re-
sponsibilities on which basic pay is set. These duties are
described in a broad manner and encompass the total
area of responsibility. Performance elements are the
significant duties and responsibilities on which employee
performance is appraised. They are identified through
an analysis of the major job requirements of each
employee's job. Within the context of the organization's
goals, the employee's major duties and responsibilities
are specified, including important tasks and projects
which contribute to those goals and for which the em-
ployee will be held accountable. There is no require-
ment that performance elements be derived directly or
solely from the official description. There may be
projects or tasks which are not addressed specifically in
the position description but which are required to be
accomplished. The performance elements must, how-
ever, be consistent with the level of responsibility and
duties of the position description. It is important that
supervisors realize the uses that may be made of critical
elements in an employee's performance plan. For exam-
ple, when an employee has applied for disability retire-
ment, a statement that the employee is not able to
perform successfully in a critical element due to a
medical condition which has existed for a long time
might appear to be inconsistent with a recent perform-
ance rating indicating fully successful performance on ?
that same element. Performance elements may be
developed by the supervisor, or as a cooperative effort
with the employee or a group of employees, depending
upon the similarity of the position to other positions.
a. A special duty such as program coordinator
assigned according to AFRs 40-113, 40-306, and 40-792,
must also be covered in the performance plan. These
special duties may be designated as critical or noncritical
elements depending on program conditions.
b. A collateral Equal Employment Opportunity
(EEO) program duty, when included in the position
description, must be covered by a performance plan.
The performance elements, performance standards, and
appraisal will be coordinated with the collateral duty
supervisor. Such duties will not be designated as critical
elements. If performance falls below the standards, cor-
rective action beyond counseling or training is limited
only to deleting the collateral duty.
2-9. Identifying Special Supervisory Performance Ele-
ments. For most managers and supervisors, both indi-
vidual performance requirements and organizational
goals must be addressed. That is, job performance ele-
ments should cover major personal responsibilities that
are not delegated to a subordinate and which describe
the supervisor's or manager's performance apart from
that of the subordinate staff. In addition, performance
elements also should cover major organizational
objectives, goals, products, etc., that subordinate staff
members accomplish under the general guidance and
direction of the manager or supervisor. There are other
supervisor responsibilities that cut across functional and
organizational lines.
a. Personnel Management. Include significant
supervisory military or civilian personnel management
responsibilities as set forth in Air Force 30-, 35-, and
40-series regulations, particularly AFR 40-312, para-
graph 4c. It is recommended that job performance ele-
ments be set up on how well supervisors appraise and
rate employees and take appropriate follow-on action in
compliance with this regulation.
b. Equal Employment Opportunity (EEO). Include a
specific requirement when it is set forth in the
organization's Affirmative Action Plan, or is required of
the supervisor according to the local EEO program
administered under AFR 40-713.
c. Safety and Health. 29 CFR, Part 1960.11, DOD
Instruction 6055.1; and AFR 127-12, requires that the
appraisal of civilian managers and supervisors include
how well they discharge safety and health respon-
sibilities, consistent with specifically assigned duties.
General responsibilities are contained in AFR 127-12.
They vary in significance and will specifically apply
depending on the work-site safety and health envi-
?
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ronment. A specific significant safety and health
responsibility will be included in the performance plan. Air
Force safety and occupational health specialists should
be consulted, if necessary, when performance plans are
developed.
2-10. Identifying Critical Performance Elements. Each
performance plan must contain at least four performance
elements of which three must be critical elements. At
least one noncritical element must be included. As a
general guideline, five to nine performance elements
should be a sufficient total number of elements for
evaluating performance of most employees. The critical
elements must total more than one-half of the total of
critical and noncritical elements. After performance ele-
ments have been determined, the critical elements must
be identified.
2-11. Setting Performance Standards. A performance
standard is a further refinement or description of the
performance element. It describes how the element is to
be done and at what level it should be done to be con-
sidered fully successful performance. It is a statement of
a given level of proficiency at which a performance ele-
ment can be carried out during a specified period. A
performance standard should recognize the degree of
difficulty and reflect the consequences of the work out-
comes to the organization and mission. It is the yard-
stick that permits accurate evaluation of job performance
in relation to the requirements of the position. The
performance standard for each performance element
must be defined in measurable terms. The standard (or
measurement) forms the framework for dialogue
between the supervisor and employee on what must be
accomplished and what is expected. Performance
standards recognize requirements that may be prescribed
in directives, technical orders, office instructions, etc.,
and should be expressed in terms of one or more of the
following criteria:
a. Quality. Applicable to work which can be meas-
ured in terms of accuracy, excellence, cost requirements,
courtesy to the public, or any other way. May be
evaluated in terms of how the work is accomplished
versus the results of the work.
b. Timeliness. Applicable to work which can be
measured by the length of time allowed to perform
something or in terms of completion dates. Timeliness is
a results oriented standard.
c. Quantity. Applicable to work measured by the
amount or percentage of work produced or by how
many times something is done.
2-12. Using Similar Performance Elements and Stand-
ards:
? a. To facilitate equitable treatment of employees,
performance elements and performance standards should
be similar where practical, and where both of the
following factors exist for a particular category of posi-
tions.
(1) The work performed is substantially similar in
duties, responsibilities, and skills required.
(2) There are not substantial variations in the work-
ing environment which would lead to differences in
performance expectations.
b. For career broadening positions described in AFR
40-110, OCPO/MPKC may issue special instructions
regarding performance plans.
2-13. Quality Control Review. The commander or a
high level management official of a major organizational
component will establish a quality review procedure to
ensure chain-of-command review of performance plans
at the beginning of the appraisal period and subsequent
performance appraisal and rating.
a. Early in the performance plan preparation process
and before the plans are finalized, officials in the chain-
of-command will review performance plans for compli-
ance with this regulation. This includes a review of the
administrative requirements, such as correct completion
of the front page, but with emphasis on the correctness
and validity of the performance elements and standards.
Particular attention will be given to assuring that the
performance standards in Part I, are actual standards,
and not simply restatements of the performance ele-
ments. The review should determine that there are at
least four performance elements. Elements should be
compatible with the position description, and cover the
primary position responsibilities (paragraph 2-8). The
CCPO provides advice as needed and assists manage-
ment in evaluation of this performance management
program. The review should also determine if special
requirements for supervisors are included as outlined
paragraph 2-9; for example, safety and health respon-
sibilities.
b. When the performance appraisal and rating is
accomplished, the review process is repeated. At this
point the emphasis is on the adequacy of the rating
substantiation, reasonable correlation between the
evaluation of individual performance elements and the
appraisal of individual work behavior factors, and
computation of the overall performance rating using the
definition in Part IV of the form. In addition, the
review will compare similar levels of substantiated per-
formance and work behavior to assure that ratings are
reasonably consistent for employees who demonstrate
similar or equal levels of performance and related
behavior. It is recommended that a copy of the form be
completed in pencil until the review is complete and any
necessary adjustments are made. Where the decision is
made to use an endorsing official (paragraph 1-7f(6)), he
or she accomplishes this review. The same procedures
apply to the MPUO.
(1) At this point, there should be no disagreement
with performance plans since they should have been
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approved during the pre-review.
(2) If ratings on individual elements are sub-
stantiated, the rating may not be changed. If ratings on
individual elements support the overall summary rating
according to the rating definitions, the overall rating
may not be changed.
(3) If the documentation does not clearly explain or
support a rating on an individual element, the reviewing
official is given the opportunity to provide clarifying or
additional information. If the clarifying or additional
information is insufficient to support the rating, the rat-
ing may be changed. Reason(s) for the change is docu-
mented. This decision is final at this point.
(4) If the review accomplished at the end of the
appraisal period reveals pei formance elements and
standards that are inadequate, the final decision on rat-
ings should address those elements which can be rated,
assuring that employees are treated equitably and ratings
assigned are consistent with actual performance. This
may require additional information from the rating and
reviewing officials. Where there are no measurable
standards, an assumed fully successful will be assigned.
2-14. Appraising Temporary Duty Performance. When
an employee is on a detail or temporary promotion,
appropriate consideration of the employee's performance
is required. The employee's rating official will coor-
dinate with the detail or temporary promotion super-
visor so that the duties and responsibilities of the
temporary assignment are properly reflected in the
performance plan maintained by the rating official or in a
performance plan set up, kept, and completed by the
detail or temporary promotion supervisor. If an annual
appraisal is due and the employee is on detail or tempo-
rary promotion, the appraisal will be documented on AF
Form 860, by the detail or temporary promotion
supervisor, if the assignment has lasted for 90 days or
more. If the annual appraisal is due and the detail or
temporary promotion has been for less than 90 days, the
rating official completes his or her appraisal when due,
but consults with and considers the views of the detail
or temporary promotion supervisor in the completion of
AF Form 860. If, at the time of the annual appraisal,
the employee is not then, but had been, on detail or
temporary promotion during the appraisal period, the
rating official will complete the appraisal but consults
with and considers the views of the detail or temporary
promotion supervisor. (For GM employees on tempo-
rary promotion also refer to paragraph 2-21.)
2-15. Performance Appraisal Discussions. The supervi-
sor meets with the employee at the beginning of each
appraisal cycle or upon assignment of a new employee
or supervisor, to discuss the performance elements and
performance standards on which the employee's work
will be evaluated. Periodic employee-supervisor discus-
sions are required during the appraisal period, to review
currency of performance elements, to discuss work
performance, and make any necessary changes to the
performance plan. Planned systematic discussions will
be beneficial to both supervisors and employees. At the
end of the appraisal period, performance accomplish-
ments are discussed.
2-16. Rating Employee Performance. A significant re-
sponsibility in the performance management process is
the rating of employee performance.
2-17. Completing the Performance Plan. At the end of
the appraisal period the supervisor must complete Parts I
and II of the performance plan and assign an overall rat-
ing in Part IV..
a. Part I. Based on the supervisor's observation of
the employee's performance, the supervisor determines
whether the employee has exceeded, met, or did not
meet the standard for each element. The supervisor
marks the appropriate evaluation block in Part I.
b. Part II. For each element that the employee either
exceeded or did not meet, a written justification is pro-
vided by the supervisor in Part II. If an element is met,
a check on the form is sufficient.
c. Part IV. Based on the evaluation of the employee's
performance from Part I, an overall rating will be
assigned and entered in Part IV. Ratings are to be
assigned as follows:
(1) Superior. Employee has exceeded all the ele-
ments of the performance plan.
(2) Excellent. Employee has exceeded more than
one-half of the critical elements, and meets all other ele-
ments.
(3) Fully Successful. Employee meets the require-
ments of all of the elements of the performance plan.
(4) Minimally Acceptable. Employee did not meet
the requirements of one or more noncritical elements of
the performance plan, but meets the requirements of all
the critical elements.
(5) Unacceptable. Employee did not meet the
requirements of one or more critical elements of the
performance plan.
2-18. Rating Manner of Performance. The appraisal fac-
tors in AF Form 860, Part III, represent work behaviors
that can be observed in the context of the employee's
current position, as reflected in the performance plan in
Part I of the form.
2-19. Completion of AF Form 860, Part III. Each of the
nine appraisal factors must be rated by marking an "X"
through the scale number in the appropriate box next to
each appraisal factor. If an appraisal factor is rated 1, 2,
8, or 9, the supervisor must identify the performance
element(s) in which the behavior was observed in the
corresponding appraisal factor block. (For example:
appraisal factor 3, Problem Solving, is rated 8 and was
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observed or demonstrated in performance elements 1
and 5, in Part I, write "1" and "5" in Part III, appraisal
? factor 3.) No further justification is necessary if
appraisal factors in Part III, rated 1, 2, 8, or 9, were
identified with a performance element(s) in Part I that
was substantiated in Part II as a part of that evaluation.
However, a brief narrative justification is required when
a rating of 1, 2, 8, or 9, is assigned against a performance
element(s) that was rated "met".
2-20. Processing AF Form 860 for GS, ST, and FWS
Employees. Within 30 days after the completion of the
appraisal period, the supervisor will check the
appropriate evaluation blocks in Part I, complete Parts
II, III, and IV of the form, and sign the form in Part IV.
The form is sent to the reviewing official for signature
and then if required by a career program council or
MAJCOM, according to this regulation, to an endorsing
official. If it has not already been accomplished, the
quality control review will be performed at this time.
After all of the required approvals have been obtained,
the form is discussed with the employee who then signs
the form. The form is then sent to the CCPO. A copy
of the AF Form 860 will be given to the employee,
upon request.
a. For a new GM, GS, ST, or FWS employee who is
subject to the probation requirements of chapter 3, the
initial 90-day appraisal is not used to evaluate comple-
tion of the probation. However, it is used to determine
how well the employee is doing at that time.
b. A new employee appointed to an FWS position in
step 1 is eligible for the step 2 WGI 6 months after ini-
tial appointment (paragraph 10-3). The 90-day appraisal
may be used to determine whether to grant the first
WGI. The PDS-C notice will tell the supervisor that if
the 90-day overall performance appraisal rating is fully
successful or higher, that level of performance will be
assumed to continue unless the supervisor notifies the
CCPO and initiates action according to chapter 3 if the
employee is on probation, or chapter 5 if the employee is
not on probation.
c. The annual appraisal cycle for FWS employees
starts 1 February and ends 31 January. The completed
and signed AF Form 860 is due in the CCPO no later
than 15 March.
d. The annual appraisal cycle for GS and ST em-
ployees starts 1 July and ends 30 June. The completed
and signed AF Form 860 is due in the CCPO no later
than 15 August.
2-21. Processing AF Form 860 for GM Employees.
Completion and processing of the AF Form 860, accord-
ing to strict time limits is vital to the integrity and credi-
bility of the merit pay system. Accordingly, use Merit
Pay Timetable, to process the forms. Some exceptions
follow:
a. For personnel actions occurring between 1 July
and the October merit pay comparability adjustment
date and under the conditions listed below, the personnel
action will trigger a PDS-C calculation of merit pay
using an assumed rating of fully successful.
(1) An employee is permanently promoted from
one GM position to another GM position.
(2) A non-GM employee is permanently promoted
or reassigned to a GM position.
b. Between 1 July and the October merit pay
comparability adjustment date and under the conditions
listed below, the performance rating assigned as of 30
June (with an effective date of 1 September) is used for
the pay adjustment that same year. This rating is docu-
mented and processed on AF Form 860 and used within
PDS-C to calculate merit pay:
(1) A GM employee entitled or not entitled to the
retained grade provision of OPM Regulation, Part 536,
is demoted to a lower GM position.
(2) A GM employee is reassigned from one MPU
to another MPU.
c. If an employee is temporarily appointed to a GM
position or is temporarily reassigned or promoted from a
non-GM position to a GM position and occupies the
GM position on the October comparability adjustment
date, he or she is entitled to a merit pay increase.
(1) If the temporary personnel action is effected
before 30 June, the performance rating assigned as of 30
June (with an effective date of 1 September) is used for
the merit pay determination.
(2) If the temporary personnel action is effected on
or after 1 July, the situation will be managed according
to b(2) above for the pay adjustment.
d. If an employee is temporarily promoted from a
GM position to another GM position within 120 days
before the October comparability adjustment date and
occupies the higher GM position on that date, the merit
pay determination is waived. However, the employee
will receive a pay adjustment based on an assumed fully
successful rating at the higher grade. For the purpose of
pay setting upon return to the lower grade, see para-
graph 11-33.
e. If an employee is temporarily promoted from a
GM position to another GM position anytime before 120
days before the October comparability adjustment date
the following applies:
(1) If the employee occupies the higher GM posi-
tion on the October comparability adjustment date, he or
she is entitled to a merit pay determination at the higher
grade. A rating assigned as of 30 June (with an effective
date of 1 September) is used for the merit pay determi-
nation. Upon return to the permanent position, the pay
will be set according to paragraph 11-33.
(2) If the employee is returned to the permanent
position before the October comparability adjustment
date, pay will be set using the 30 June assigned rating.
2-22. Uses of Appraisal. Performance appraisal is not
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an isolated process with the sole purpose of assigning
ratings. It is part of the total performance management
process designed to plan work, identify and correct
performance problems, recognize and reward quality
performance, improve productivity, assign pay, and
effect other actions. Personnel actions, award recom-
mendations, and other corrective, remedial, or required
actions should be started at the same time or shortly
after the completed appraisal form is submitted, or as
otherwise required by regulation.
a. The current performance rating or rating of
record, used for the purposes described herein, is the last
one received and recorded by the CCPO in PDS-C.
b. A fully successful performance rating is given
when the employee's performance is right on target and
reflects what was expected of the employee. If other-
wise eligible, the employee competes for promotion.
Other career development training may be appropriate.
High level awards normally would not be justified, but
certain awards may be appropriate.
2-23. Recognizing the Employee. The most common
and direct means of recognizing fully successful or
higher performance involves pay increases and awards.
a. Pay. FWS and GS employees will receive the
WGI, when otherwise eligible, if a fully successful or
higher performance rating is assigned. GM employees
with similar performance ratings will receive merit pay
according to chapter 11.
b. Awards. If the employee receives a superior
performance rating, paragraph 1-4a requires that he or
she be given some kind of recognition in addition to the
receipt of merit pay or a WGI. To carry out the
purpose of the pay-for-performance concept (paragraph
1-3) employees who get superior performance ratings
should first be considered for monetary recognition
according to chapter 7. However, other recognition
may be granted as explained in chapter 1. Employees
who receive excellent performance ratings should be
considered for recognition. Employees who receive
fully successful performance ratings may be eligible for
some kind of recognition.
2-24. Retaining the Employee. Each employee who has
a current performance appraisal rating of superior will
have 4 years of service added to his or her creditable
service for purposes of RIF. Each employee who has a
current performance appraisal rating of excellent will
have 2 years of service added to his or her creditable
service for purposes of RIF (AFR 40-351).
2-25. Training the Employee. Performance appraisals
must be used as a basis for determining the training
needs of employees (AFR 40-410).
a. Employees may receive training to improve per-
formance and acquire job-related skills. The perform-
ance appraisal should help identify remedial or
developmental training necessary for an employee to
meet a specified performance standard. Supervisors
should make every effort to determine whether training
will assist an employee's performance.
b. Developmental training is provided for employees
participating in formal training programs under written
training plans to expand the scope and depth of their
jobs in order to prepare for the additional duties and
responsbilities of an intermediate or target grade.
c. If an employee is on long-term full-time (LTFT)
training when the annual appraisal is due, the rating of
record will continue until the close of the next rating
cycle. If the LTFT continues through a second rating
cycle, the rating of record will continue for RIF
purposes. But merit pay will be paid based on a fully
successful rating. The employee will be treated as fully
successful for award purposes in all cases.
2-26. Using the Results of Appraisal for Competitive
Promotion and Inservice Placement. FPM chapter 335,
Promotion and Internal Placement, requires that meth-
ods of evaluation for promotion and placement, and
selection for training that lead to promotion be con-
sistent with FPM Supplement 335-1, Evaluation of Em-
ployees for Promotion and Internal Placement. It also
requires that due weight be given to performance
appraisals.
2-27. Appraisal of Work Behavior. FPM Supplement
335-1 permits the appraisal of work behavior, knowl-
edges, skills, abilities (KSA) and other characteristics for
inservice placement purposes. It requires that appraisals
used to evaluate employees for promotion be relevant to
the job for which they are being considered. In the Air
Force, the work behavior appraisal is made in AF Form
860, Part III. A rating of fully successful or higher on
AF Form 860, Part IV, is required for an employee to
be eligible to compete for promotion or other
competitive inservice placement.
2-28. How the Appraisal of Work Behavior is Used.
While it is not always possible to relate the performance
of specific job tasks or elements from one position to
another, the work behaviors used in the actual per-
formance of the duties can be identified. Therefore,
employees receive "credit" in appraisal for related work
behaviors. Air Force research has identified nine
appraisal factors or work behaviors to be used in assess-
ing an employee's current performance. The relative
importance of these work behaviors to occupations in
the Air Force civilian work force has been determined.
As a part of the research study, groups of subject matter
specialist identified those work behaviors critical to their
respective occupations. The selected work behaviors
were then weighted according to their degree of im-
portance. The resulting mathematical computation or
algorithm is the total score an employee may receive.
0
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The weight of a particular appraisal factor in the
algorithm is multiplied by the rating assigned (on the
is scale of 1 to 9) by the supervisor. The total score for an
employee may differ depending on the position for
which he or she is being considered.
2-29. When the Appraisal of Work Behavior is Used.
The appraisal is used for all competitive inservice place-
ment actions including promotion; reassignments to posi-
tions with known growth potential or to positions which
provide new KSAs which enhance future career growth;
selection for training that would result in the enhance-
ment of career growth; demotion to lower graded posi-
tions which have career growth above the employees
current position; and other instances that may be
determined by the CCPO according to AFR 40-335.
The ratings on AF Form 860, Part III, are used as a fac-
tor in determining final rank order between competing
employees. Scores achieved on Part III become the
second ranking factor used to determine rank order of
those employees having substantively equal KSAs. The
total algorithm score applicable to the position being
filled is used at all times.
2-30. Algorithm Security and Control Requirements. To
maintain the merit system principle of fair and equal job
competition, certain material used in competitive in-
service placement may not be given or made available to
unauthorized persons. This will preclude compromise of
the competitive selection process, and prevent unfair
advantage to some competing candidates. Accordingly,
the algorithms explained in this chapter will not be
released to the public, Air Force or other government
employees, commanders, managers or supervisors, or
union officials.
a. AFMPC/MPCD will maintain the algorithm in a
secure fashion in PDS-C.
be The AFHRL, or other qualified personnel research
organization, as authorized by HQ USAF/MPKE, may
have access and use of the algorithms for research vali-
dation purposes.
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Table 2-1. Appraisal Types, Periods, and Rating Dates.
Carry
Appraisal
Category
Presumptive
Over Last
Pay
Appraisal
Type
Rating
Appraisal
Plan
Period
1. Initial
I. Accession
Yes
No
GS
a. Initial Appointment
GM
(see note 1)
ST
Days 1-90 after entrance on duty
b. Transfer from other
with Air Force
agency
FWS
c Reinstatement
11. Annual
2. Annual rating
No
No
GS
I Jul-30 Jun
required normal
GM
cycle
ST
FWS
1 Feb-31Jan
3. Inservice action
No
Yes
GS
I Jul-30 Jun
occuring during
GM
effective period
ST
a. Conversions
FWS
Date of Action to 31 Jan (see
b. Promotions
note 2)
c. Reassignment
d. Change to Lower
Grade
III. Other
4. Withhold WGI (if
No
No
GS
N/A
employee has Fully
FWS
Successful or higher
rating)
5. Grant WGI (if em-
No
No
GS
N/A
ployee has less than
FWS
Fully Successful
rating)
6. When performance
No
No
GS
Determined by supervisor
improves from
GM
unacceptable or
FWS
minimally
ST
acceptable to fully
successful
7. Employee has gone
No
No
GS
N/A
1 year without
FWS
rating
ST
8. Long-Term Full-
No
Yes
GS
N/A
Time (LTFT)
GM
Training
FWS
ST
NOTES:
1. Appointment must be for 120 days or longer.
2. The supervisor of record on 30 Jun (31 Jan for FWS) rendners the appraisal with input from losing supervisor.
3. The appraisal effective date for personnel action and PDS-C purposes is the beginning date fo the effective period.
4. Reemployed annuitants, with a break in service that would render their last rating of record more than 1 year old, will begin an initial appraisal.
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Date Rated
Processing
Effective
Remarks
Period
Period (see
note 3)
90 days from entrance on
Days 91-120
Day 121 through 31 Aug
If the 90-day period for the initial appraisal
duty with Air Force
ends between 3 April and 30 June for GS/GM
or 3 November and 31 January for FWS, the
supervisor may recertify the initial rating. This
Day 121 through 31 Mar
rating becomes rating of record for annual
appraisal.
1 Jul
1 Jul-31 Aug
I Sep-31 Aug
1 Feb
1 Feb-31 Mar
1 Apr-3lMar
1 Jul
1 Jul-31 Aug
1 Sep-31 Aug
Includes change of appointing office actions
and reemployed annuitants (see note 4).
1 Feb
1 Feb-31 Mar
I Apr-31 Mar
If employee converted from appointment not
requiring a performance plan, a presumptive
rating is assigned and a rating is completed
after 90 days.
30 days before date WGI
N/A
Date appraised until superseded
See paragraph 2-5b.
is due
by new rating
30 days before date WGI
N/A
Date appraised until superseded
See paragraph 2-5a.
is due
by new rating
Determined by supervisor
N/A
Date appraised until superseded
by new rating
See remarks
N/A
Date appraised until superseded
CCPO will advise supervisor, rating is due.
by new rating.
N/A
N/A
Date appraised until next rating
See paragraph 2-25c for use of rating in
period following completion of
personnel actions.
LTFT training
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AFR 40-452 1 July 1984
Chapter 3
PROBATION FOR NEW EMPLOYEES
3-1. Basic Probation Requirements. An employee must
serve a probation during the first year of his or her first
permanent Federal appointment to determine fitness for
continued employment. This probation is an extension
and continuation of the merit system competitive exam-
ining process required for initial entry into Federal
civilian service. During probation, the new employee is
evaluated for qualities and characteristics essential for
effective performance, but which cannot be measured
adequately by preemployment testing and examination
methods. The supervisor gives the probationer the
guidance and help necessary for fully successful
performance. If the employee does not satisfactorily
complete probation, he or she must either be assigned to
another position or separated according to paragraph
3-5.
3-2. Application of These Requirements. This chapter
applies to employees who are appointed to the first year
of a 3-year career conditional appointment; who have
not previously completed a probation; or who are
required to complete one, as determined by the CCPO,
(FPM chapter 315, subchapter 8-2).
3-3. Factors To Be Evaluated. Job performance and
work behavior is appraised according to this regulation.
In addition to and concurrent with that appraisal proc-
ess, the probationer's character, conduct, and attitude
that directly affect job performance are evaluated against
applicable standards of conduct set according to such
regulations as AFRs 40-735, and AFR 30-30. (Also see
AFP 40-11.)
3-4. Certifying Completion of Probation. The supervisor
is required to make a written certification of the
probationer's performance not later than the tenth month
of the probation. The CCPO will advise the supervisor
of this requirement with a notice from the PDS-C. The
supervisor must complete and return the notice to the
CCPO by the time specified. If the certification is not
timely or completed properly, an employee who does not
deserve continued employment may attain that status by
default.
3-5. Action When Employee Fails Probation. When an
employee fails to exhibit fitness for continued employ-
ment, the supervisor takes appropriate action as soon as
possible and before the 1-year probation ends. When
failure is indicated, the supervisor will consult the
CCPO staff concerning appropriate action.
a. An employee failing probation will be assigned to
another position only when there is enough time left in
the probation to determine his or her fitness for retention
in that position and the Federal service and where there
is good reason to believe that the employee will success-
fully complete the continued probation.
b. When demotion or separation is appropriate, the
supervisor consults the CCPO staff and issues a notice of
the action. A probationer has no entitlements to the
adverse action benefits provided by law or OPM Regu-
lation, Part 752. Therefore, AFR 40-750 is not used to
demote or separate a probationer.
c. If it is decided to terminate a probationer based in
whole or in part on conditions arising before appoint-
ment, requirements of OPM Regulations 315.805 and
1201.21 must be observed. A probationer's petition for
appeal to the MSPB must be filed anytime from the day
after the effective date of the action being appealed until
not later than 20 days after the effective date.
3-6. Notice of Action. The notice of action to demote
or separate a probationer will meet these requirements.
The notice:
a. Must state what will be done and when it is to be
effective.
b. Must provide reasons to support the action. The
reasons must be sufficient to conclude that it would be
doubtful that the probationer will render subsequent
continued satisfactory service.
c. Must tell the probationer that he or she may
request review of the action by the reviewing official
(attachment 2). The notice will provide the name and
official address of that person. The notice will state that
the request must be written and must set forth reasons
why the action should not be taken. Specific time limits
will be set for the request. At least 3 workdays will be
allowed.
d. Will tell the probationer that he or she will be kept
in a duty status until the effective date, unless leave is
requested and approved.
e. Must tell the probationer that he or she may appeal
to the MSPB only on ground of alleged partisan political
reasons or marital status (OPM Regulation 315.806(b) or
on discrimination, if raised in addition to political rea-
sons or marital status, (OPM Regulation 315.806(d)).
Also, the requirements of OPM Regulation 1201.21 must
be observed. A probationer's petition for appeal to the
MSPB must be filed anytime from the day after the
effective date of the action being appealed, until not later
than 20 days after the effective date.
f. Normally, the supervisor will sign and deliver the
notice to the probationer at least 14-calendar days
before the effective date. If the action must be taken
within the 14-calendar days before the probation com-
pletion date, the notice will be signed and delivered as
far in advance as possible.
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3-7. Action by the Reviewing Official. When requested lation, and other information provided by the supervisor
by the probationer, the reviewing official determines relative to required conduct, behavior, and attitude.
? whether the action is arbitrary, capricious, or unreason- When time permits, the probationer is notified in writing
able in view of the documentation required by this regu- of the reviewing official's decision.
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Chapter 4
PROBATION FOR NEW SUPERVISORS AND MANAGERS
4-1. Basic Probation Requirements. An employee must
serve a probation before initial assignment as either a
supervisor or manager becomes final. If the employee
does not satisfactorily complete the probation, he or she
has a right under 5 U.S.C. 3321 to be returned to a posi-
tion of no lower grade and pay than the position from
which transferred, reassigned, promoted, or demoted.
4-2. Application of These Requirements. This chapter
applies to an employee when he or she is appointed,
promoted, demoted, transferred, or reassigned to his or
her first supervisory or managerial position. It does not
apply to time limited appointments of less than 120 days.
It may be applied to a temporary promotion or reassign-
ment expected to last at least 6 months (c below). The
supervisory and managerial positions covered by this
chapter are defined in FPM chapter 315, subchapter 9.
a. Upon initial assignment to a supervisory position,
an employee must complete a single probationary period.
b. Upon initial assignment to a managerial position, an
employee must also complete a single probationary
period unless the selecting official waives the require-
ment based on the employee's previous satisfactory com-
pletion of a supervisory probationary period.
c. Upon initial assignment to a position that is both
supervisory and managerial, by temporary appointment,
promotion, or reassignment expected to exceed 120 days,
an employee must complete a single probationary period.
4-3. Exceptions. An employee who, on 11 August
1979, was serving or had served for any length of time
in a Federal civilian supervisory or managerial position,
is exempt from serving a comparable probationary period
under this chapter. For example:
a. An employee in that status as a supervisor may not
be subject to the supervisory probation.
b. An employee in that status as a manager may not
be subject to the managerial or supervisory probation.
c. Time served on a temporary appointment or
promotion in excess of 120 days, as a supervisor or
manager before 11 August 1979, counts in the same way
as service on a permanent appointment. Time served on
official or nonofficial detail does not count.
d. Evidence of current or prior Federal civilian
supervisory or managerial experience must be supported
by official records or other convincing evidence supplied
by the employee or a Federal official.
4-4. Advance Notification. Before assignment to a
supervisory or managerial position, the employee must
be informed in writing of the probation requirement, the
entitlement to placement if the probation is not success-
fully completed, and the absence of grievance rights
over such placement action. Recruitment notices and
vacancy announcements must explain these requirements
and entitlements.
4-5. Training. Early in the probation, first-year training
or career development requirements for the new supervi-
sor or manager must be determined. Particular emphasis
will be given to determining required supervisory and
managerial skills training and providing it in the time
limits specified in AFR 40-418, chapters 5 and 6.
4-6. Full and Fair Evaluation. A performance plan will
be developed to evaluate the probationer upon initial
appointment to the supervisory or managerial position.
This is the same performance plan required in chapter 2.
It is not in addition to the normal required plan.
Performance discussions will be held during probation to
monitor the progress of the new supervisor and manager
and to keep him or her informed on progress.
4-7. Length of Probation. The maximum length of the
probation is 1 year. Normally, all new supervisors and
managers will be required to serve the entire period.
The PDS-C will produce a notice 90 days before the
end of the probation to remind the CCPO and supervi-
sor when certification is required.
a. The supervisor, with the concurrence of the next
higher level manager, may terminate the probation at
any time when it becomes clear that the employee lacks
the necessary aptitude or skill required in the position
and that further training and experience will not provide
the skills needed for full and effective performance.
b. As an exception to the normal rule, and based on
consistently demonstrated fully successful performance,
for not less than 6 months, the supervisor may certify
that the probation has been satisfactorily completed.
This will be documented in writing, signed by the
supervisor, and filed in the employee's SF 66, Official
Personnel Folder.
4-8. Failure To Complete the Probation. Satisfactory
completion of the probation is necessary for continuation
in the position. When probation is not satisfactorily
completed, the employee is returned to a nonsupervisory
or nonmanagerial position.
a. The return of an employee to a nonsupervisory or
nonmanagerial position, by demotion for failure to
complete the probation within the probationary period,
is not an adverse action. It is not appropriate to demote
an employee under this chapter for reasons other than
those having a direct relationship to supervisory or
managerial effectiveness. Demotions for reasons unre-
lated to supervisory or managerial job performance are
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adverse actions and must be processed under AFR
40-750.
b. The decision to return an employee to a non-
supervisory or nonmanagerial position is made by the
employee's immediate supervisor, with the concurrence
of the next higher official in the organization.
c. An employee who is returned to a nonsupervisory
or nonmanagerial position must be given sufficient
factual information to make clear the basis for the
action. A written notice of the reasons for the action
will be given to the employee. The notice will also con-
tain information about how the employee's placement
rights will be satisfied.
d. The return of an employee to a nonsupervisory or
nonmanagerial position is not grounds for denying the
employee consideration for subsequent assignment to
other supervisory or managerial positions. Position
requirements and individual abilities vary. An employee
not suitable to one supervisory or managerial position
may be able to perform very well in another supervisory
or managerial position.
e. An employee who is returned to a nonsupervisory
or nonmanagerial position is not entitled to grade or pay
retention provided by 5 U.S.C. 5362 and 5363.
f. An employee who is returned to a nonsupervisory
or nonmanagerial position under this regulation is enti-
tled to a position of no lower grade and pay than the
one the employee left to accept the supervisory or
managerial position.
(I) Except when returned to another DOD com-
ponent, as explained in h below, an employee who
transferred from a nonsupervisory or nonmanagerial
position in another agency to a supervisory or
managerial position in the Air Force and does not
satisfactorily complete the probation, has a right to a
position in the Air Force, not to a position in the agency
from which transferred.
(2) An employee who is appointed to a supervisory
or managerial position from an OPM register, or based
on reinstatement eligibility, and who is not serving a
probation under chapter 3 of this regulation, is entitled
to be placed in a vacancy equal in grade to that
currently held, subject to the referral and selection
priorities in AFR 40-300.
(3) RIF procedures will not be used to determine
the position to which assigned.
(4) The position vacated by the new supervisor or
manager will not be left vacant or filled in a temporary
manner in order to provide a fall-back job in case the
supervisor or manager may have to exercise return
rights. It may not be obligated, except in connection
with oversea employment with return rights under Pub-
lic Law 86-585. (See Air Force Supplement to FPM
chapter 301, subchapter 1-3.) It may be filled on a
short-term, temporary basis to meet mission needs, but
may not be filled by a temporary appointment with the
purpose of providing a "fall-back" job.
g. When it is determined that an employee is to be
returned to a nonsupervisory or nonmanagerial position,
the supervisor and the CCPO will take action to
reassign, promote, or demote the employee to a position
of no lower grade and pay than the one the employee
left to accept the supervisory or managerial position. If
a suitable vacancy is not available, manpower, and
personnel officials in coordination with management, will
authorize and establish a position somewhere in the
command to meet the statutory placement requirement.
If establishment of a position and placement of the em-
ployee results in an overauthorization, RIF will not be
used as a remedy. Rather, at the earliest opportunity, an
authorized vacant position will be used to correct the
problem.
h. An employee serving a supervisory or managerial
probationary period in an oversea position, who was
assigned to the current position from a nonsupervisory
or nonmanagerial position to which they have return
rights may be required to exercise those return rights.
4-9. Crediting Service When the Probation is Inter-
rupted. Service in a supervisory or managerial position
that is interrupted during the probation is credited
toward completion of probation in the following
manner:
a. A supervisor who is assigned, promoted, or
demoted to another supervisory position during the pro-
bation is subject to the probation prescribed for the new
position. Service in the former position counts toward
completion of the probation prescribed for the new posi-
tion. The same applies to a manager who is placed in
another managerial position. The same rules apply when
the probation is interrupted by assignment to a position
where probation is not required or when a break in
service occurs, other than for cause.
b. A supervisor or manager who is serving probation
under this chapter and then is temporarily promoted or
assigned to another position may be credited with the
time spent in the other position, in the same manner as in
a above. Time spent on details does not count.
c. Absence on or off the rolls due to compensable
injury or illness or military duty from which the em-
ployee is entitled to restoration rights or priority con-
sideration under FPM chapter 353, is credited in full.
d. When an employee is separated for cause or
returned to a nonsupervisory or nonmanagerial position
during the probation, his or her service does not count
toward completion of a probation required under subse-
quent appointment or assignment.
4-10. Relationship To Other Personnel Actions:
a. If, on appointment, an employee is required to
serve both a probation under this chapter and a proba-
tion under chapter 3, the latter takes precedence. Com-
pletion of the chapter 3 probation fulfills the require-
ments of this chapter.
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b. Nothing in this chapter prohibits management from c. The procedures of 5 CFR, Part 432, do not apply
removing an employee for reasons unrelated to super- to a demotion under the provisions of this chapter.
visory or managerial performance.
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Chapter 5
DEALING WITH PERFORMANCE PROBLEMS
5-1. Identifying Performance Problems. To maintain a
quality civilian work force and encourage employees to
strive for top performance, supervisors should take
positive action as soon as a performance problem is
observed. The action taken should not be delayed until
the end of the appraisal period. Supervisors are required
to conduct periodic performance reviews. Planned,
systematic reviews of work will help supervisors identify
performance problems at the developmental stage.
a. At any time during the performance appraisal
cycle that the employee's performance in one or more
critical elements becomes less than fully successful, the
supervisor must inform the employee of the critical
element(s) for which performance is unacceptable, in
what way it is unacceptable, and exactly what is
required to bring it to a fully successful level. The
supervisor will initiate an opportunity period to give the
employee a reasonable time to demonstrate acceptable
performance. This means an amount of time com-
mensurate with the duties and responsibilities of the
employee's position sufficient to allow the employee to
show whether he or she can perform acceptably.
b. The supervisor will help the employee improve
performance during the opportunity period. This can
include closer supervision and counseling, personal
demonstration, supervisory or peer coaching, frequent
reporting, special assignments, on-the-job training, and
the like. Although not required by regulation, formal
training may be provided. This training should be given
a sufficient high ranking within the appropriate priority.
5-2. Action Required When a Medical Condition Affects
Performance. The supervisor will not always know
whether the employee's health is impaired because of
injury, disease, psychiatric problem, alcohol abuse, or
other handicapping condition. Neither will the supervi-
sor necessarily know whether the medical condition is
causing the performance problem. This issue must be
addressed early in the problem identification and correction
process. Accordingly, the supervisor, CCPO, or medical
official, as appropriate, will take the following steps:
a. If the employee's performance is suspected to be
adversely affected by the abuse of alcohol or drugs,
AFR 40-792, must be followed. An employee may not
be removed from his or her position, through adverse
action procedures because of ineffective performance,
unless these requirements are fulfilled. Specific guidance
on what to do is contained in AFR 40-792, attachment
3, Dealing With the Troubled Employee. The supervi-
sor should also review AFP 40-10, A Supervisor's
Guide-The Air Force Civilian Drug and Alcohol
Abuse Prevention and Control Program. The employee
may be given a copy of AFP 40-11, Air Force Civilian
Standards, and requested to read paragraph 11.
b. In all performance problem situations, including
those where the action described in a above has been started
or accomplished, the employee will be told that if he or
she wants management to consider any medical condi-
tion that may contribute to the unacceptable perform-
ance, that he or she will be given a reasonable time to
furnish medical documentation.
(1) Medical condition means health impairment
which results from injury or disease, including psychi-
atric disease.
(2) Medical documentation is defined in 5 CFR,
Part 339, Section 339.102. The employee will be in-
formed of exactly what documentation is required. The
amount of reasonable time will be specified; it should
coincide, to the extent practical, with the opportunity
period explained in paragraph 5-la. When possible, the
employee will provide the documentation within the
time established. If the documentation is not provided
on time, the supervisor may grant more time, or proceed
with the correction process.
(3) Medical documentation furnished by the em-
ployee will be reviewed by the supervisor and an Air
Force or other Federal medical officer.
(a) When the employee is in a job that requires
physical or medical standards for retention or a job
covered by the environmental health or bioenvironmen-
tal engineering programs under AFR 161-33, and the
documentation review shows a direct question about the
employee's ability to meet the job's physical or medical
requirements, the supervisor may require the employee to
report for a medical examination.
(b) When the employee is not in the kind of job
described above, and the documentation review provides
no basis to act on the employee's request for considera-
tion of a medical condition, the supervisor may offer a
medical examination to verify clinical findings and cur-
rent clinical status.
(c) Regardless of the kind of job occupied by the
employee, a management official may require or offer a
psychiatric examination according to 5 CFR, Part 339,
Section 339.302(e).
(4) When the supervisor requires or offers a medi-
cal examination, the employee will be told in writing of
the reasons for the requirement or offer and the conse-
quence of noncooperation.
(5) The medical examination procedures, whether
required or offered, will be accomplished according to 5
CFR, Part 339, Section 339.302. The Air Force will
pay for or provide the required or offered medical
examination according to 5 CFR, Part 339, Section
339.303.
(6) If medical documentation is provided, and the
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employee has 5 years of creditable service, the CCPO
will give him or her information about disability retire-
ment. The employee will also be advised that an appli-
cation for disability retirement must not preclude or
delay any other appropriate personnel action.
5-3. Action Required When a Handicapped Employee has
a Performance Problem. A handicapped employee may
not be able to provide medical documentation to support
a medical condition, as defined above, but still have a
physical or medical impairment that requires reasonable
accommodation (example: mental retardation). Accord-
ingly, when dealing with a handicapped employee's
performance problem, both the supervisor and the
CCPO must affirmatively discharge any obligation re-
quired by 29 CFR, Part 1613, Section 1613.704.
5-4. Reassigning, Demoting, or Removing an Employee
Based on Unacceptable Performance. If the employee's
performance continues to be unacceptable in one or
more critical elements after the opportunity to improve
period has expired, the supervisor must take appropriate
action. The following procedures do not apply to:
a. Demotion or removal of an employee in the
competitive service who is serving a probation under
chapter 3.
b. Demotion or removal of an employee in the
Excepted Service who has not completed 1 year of
current continuous service.
c. Demotion of a supervisor or manager who is serv-
ing probation under chapter 4.
(1) When in the supervisor's judgment the em-
ployee will be unable to improve performance, reassign-
ment to another position in the organization may be
appropriate. Reassignment may provide the employee
with a change in work environment, sufficient to
improve the level of performance. When an employee is
reassigned because of less than fully successful per-
formance, the supervisor should make it clear to the em-
ployee why the action is being taken.
(2) The supervisor may change duties of the
current position and demote the employee to a level
where fully successful performance can be achieved.
(3) When an employee's performance continues to
be unacceptable after attempts fail to improve perform-
ance fail and reassignment or demotion is not feasible,
there is no justification for retaining the employee.
Removal from employment, based on unacceptable
performance, is authorized by 5 U.S.C. 4303 and 5 CFR,
Part 432, of the OPM regulations.
(4) When demotion or removal is considered
appropriate, the supervisor will give the employee a
30-day advance written notice of the proposed action.
The notice must identify specific instances of unaccept-
able performance on which the proposed action is based
and the critical elements involved in each instance of
unacceptable performance. (The instances of unaccept-
able performance must have occurred during the 1-year
period that ends on the date of the proposed notice.)
The employee must be given a reasonable time to
answer orally, and in writing, to the supervisor or other
designated management official, and is entitled to be
represented by an attorney or other representative. The
supervisor must coordinate with the CCPO before issu-
ing the notice.
(a) The notice period expires absolutely at the end
of the 30 days UNLESS extended for no more than 30
additional days by authority of the MAJCOM or
comparable organization, or, according to terms of a
collective bargaining agreement. (The MAJCOM exten-
sion approval authority may be delegated to base level).
(b) Further extension of the notice period can be
approved only by OPM; and OPM has no statutory
authority to extend a notice period that has expired.
Accordingly, if the base or MAJCOM wants further
extension, the request with justification, including the
purpose and amount of time required, will be sent by the
fastest method direct to: Appellate Policies Division,
Office of Personnel Management, Room 7459, 1900 E
Street, NW Wash DC 20415.
(c) If the employee provides medical documenta-
tion during the notice period, it will be considered as
part of his or her reply to the notice of proposed action.
The documentation must be provided, when possible,
within the time limit allowed for the reply. If such
documentation is provided at this time, the provisions of
paragraph 5-2 apply.
(5) In arriving at the decision, the supervisor or
other designated management official considers only the
unacceptable performance specified in the notice of
proposed action. He or she considers any response to
the notice of proposed action from the employee and or
his or her representative, including any medical docu-
mentation.
(a) The final decision will not be made until the
day after the advance notice period expires but must be
made within 30 calendar days after the expiration of the
notice period.
(b) If the decision is to effect the proposed
action, the final decision notice must specify the
unacceptable performance on which the demotion or
removal is based. The final decision must have the
concurrence of a management official who is in a higher
position than the supervisor. The notice of decision
must tell the employee of his or her appeal rights (para-
graph 1-7e).
(6) If the employee's performance improves accept-
ably during the notice period and continues to be
acceptable for 1 year from the date of the notice of
proposed action, any entry or other documentation of
unacceptable performance for which the action was
proposed must be removed from the supervisor's,
CCPO, and PDS-C records.
(7) When a demotion or removal for unacceptable
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AFR 40-452 1 July 1984 23
performance is affected, all relevant documents must be and any supporting material including documentation
maintained according to AFR 12-50. As a minimum, regarding the opportunity afforded the employee to
the file will consist of a copy of the notice of proposed demonstrate acceptable performance. The above docu-
action, the answer of the employee when it is in writing, mentation must be available for review by the affected
a summary there of when the employee makes an oral employee or his or her representative (5 CFR 432.207).
reply, the notice of decision and the reasons therefore,
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Chapter 6
THE AIR FORCE RECOGNITION PROGRAM
6-1. Approval Levels. The Secretary of the Air Force
(SAF) approves all cash awards granted under this regu-
lation for SES members. Approval levels for all other
awards are described in table 6-1. Commanders at
MAJCOM, comparable organizations, and installation
level should designate members of their staffs, and
serviced unit commanders or members of their staffs, to
approve or disapprove QSIs and cash awards up to a
designated amount without awards committee action.
The chairperson of the incentive awards committee and
the program manager also may be designated to approve
such awards without review by the incentive awards
committee. Program managers must ensure that awards
granted under these provisions meet regulatory require-
ments before payment. Likewise, disapprovals must be
reviewed to ensure that disapproval and the reasons are
documented by the disapproving authority. If an award
authority at any level considers that a different award is
appropriate, either in addition to or instead of the award
recommended, the supervisor should be consulted before
further action is taken.
6-2. Further Delegation. It is highly recommended that
commanders and servicing CCPOs establish broad au-
thority to allow awards to be approved at the lowest
possible level, without benefit of official committee
actions. As an example, commanders might authorize
Sustained Superior Performance Award (SSPA) approv-
al authority of up to 3 percent of payable salary to other
high level officials. Anything above 3 percent would be
sent to Performance Awards Committees for their
review and recommendations. This and other authority
delegation is recommended in the interest of simplifying
award procedures and allowing for more prompt
recognition of deserving employees. This follows guide-
lines established in 5 U.S.C. 4503, Part 451, Section
451.206(a) and (b).
6-3. Air Force Incentive Awards Board (AF-IAB). The
board is authorized to approve, disapprove, or modify
awards. The full board meets as a group as conditions
dictate. The board:
a. Advises SAF, Deputy Chief of Staff, Manpower
and Personnel; and the Director of Civilian Personnel of
desirable improvements in the civilian awards program.
b. Approves Merit Pay Cash Awards (MPCA) for
GM employees of no more than $10,000 for performance
contributions outside the approval authority of the
MPUO, or outside the authority of the MAJCOM if the
MPUO elects to exercise the approval authority outlined
in paragraph 7-4a or b.
c. Recommends to the SAF approval of the Air
Force Decoration for Exceptional Civilian Service and
the Air Force Civilian Award for Valor for appro-
priated fund employees under this regulation and for
nonappropriated fund employees under AFR 40-7.
d. Recommends to the SAF nominations for the DoD
Distinguished Civilian Service Award, the President's
Award for Distinguished Federal Civilian Service, and
nonfederal awards for both appropriated and nonappro-
priated fund employees.
e. Recommends to the SAF for forwarding to Office
of the Assistant Secretary of Defense (Civilian Personnel
Policy and Requirements) nominations for cash awards
in excess of $10,000.
6-4. Performance Awards Committee. A committee may
be established at each MAJCOM, and comparable
organization with a Directorate of Civilian Personnel,
and at each installation where a CCPO is located. A
committee reviews recommendations for awards, recom-
mends or selects nominees for honorary competitive
awards; and provides advice on program improvements.
They will ensure that the award criteria have been met
by the recommended nominee (table 6-2). Criteria for
nonfederal awards must be followed and not altered by a
committee.
a. Commanders of Separate Operating Agencies
(SOA) and Direct Reporting Units (DRU) (without a
Command Directorate of Civilian Personnel) may exer-
cise the MAJCOM award approval authority. SOA and
DRU commanders may use the established installation
performance award committee or the CCPO may estab-
lish a subcommittee composed of SOA and DRU
members. However, in either case, the servicing CCPO
will provide administrative support. Likewise, a tenant
unit uses the local performance award committee and is
provided program support by the servicing CCPO
through host-tenant servicing agreements.
NOTE: Due to dispersion and size, the 1947 HSG/
MPK will perform the MAJCOM function for personnel
assigned to the following: Legal Services Center, Medi-
cal Services Center, Air Force Service Information and
News Center, Combat Operations Staff, Air National
Guard Support Center, HQ USAF Historical Research
Center, Air Force Elements (3V Command), Air Force
Engineering and Services Center, Office of Security
Police, and Air Force Review Board Office.
b. Individual honorary competitive award solicita-
tions normally request one Air Force nominee (in some
cases a sponsor may give one award in each of two or
more categories). To ensure that the Air Force can-
didate is the most competitive in relation to the award's
criteria, and the most deserving in terms of contribution
to the organization, the owning, not servicing, MAJCOM
and comparable organization will submit their
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nominee(s) to the Executive Secretary, Air Force
Incentive Awards Board. The procedures established in
a above should be followed in selection of local
candidate(s). Tenant unit nominations should then be
submitted to the parent MAJCOM for selection of a
MAJCOM nominee. SOA and DRU commanders sub-
mit their nominee(s) to OCPO/MPKPO.
c. Committee membership may include military and
civilian personnel. The decisions to grant or not grant
an award is a management decision. (If the MPUO
elects to use a committee to review recommendations
for the MPCA, the Merit Pay Committee established
according to paragraph 11-8 will be used.)
d. MAJCOM and Comparable Organization Commit-
tee. Except when the MPUO elects to exercise MPCA
approval authority outlined in paragraph 7-4c, the
committee:
(1) Reviews, computes, and recommends additional
cash award amounts to the commander of the MAJ-
COM or comparable organization, or designated repre-
sentative for approval or for forwarding to the AFIAB
for approval; or recommends disapproval where
appropriate.
(2) Recommends to the commander of the
MAJCOM or comparable organization honorary rec-
ognition for meritorious, exceptional, or distinguished
service and for valor; or recommends disapproval where
appropriate.
(3) Selects and recommends command nominations
for nonfederal awards to the commander for forwarding
to the AFIAB.
e. Base Committee. Except when the MPUO elects
to exercise MPCA approval authority outlined in para-
graph 7-4c the committee:
(1) Accepts the final approved AF Form 860 when
a cash award or QSI is recommended, as the sole and
sufficient justification for the type of award and exercises
committee authority only with regard to the amount of the
award, except for the QSI where the amount is set by
law.
(2) Computes and recommends to the commander,
or designated representative, cash award amounts that
require committee action for approval or for forwarding
to the commander of the MAJCOM or comparable
organization for approval; or recommends disapproval
where appropriate. If the committee considers that a
recommended award amount is excessive, the supervisor
will be given opportunity to support the original recom-
mendations, before a final decision is made.
(3) Reviews, analyzes, and submits honorary award
recommendations to the commander for meritorious,
exceptional, or distinguished civilian service and for
valor; or recommends disapproval where appropriate.
(4) Reviews, selects, and recommends nominations
for nonfederal awards.
f. Executive Secretary. The Executive Secretary,
Performance Awards Committee, under direction of the
command Director of Civilian Personnel, or the base
Civilian Personnel Officer:
(1) Ensures that all recommendations meet eligibil-
ity requirements and that the file completely documents
the basis for each award.
(2) Discusses with originator the need for addi-
tional information or explains reasons for potential
unfavorable consideration to ensure understanding and
acceptance of actions taken.
(3) Refers committee award recommendations or
nominations to the appropriate approving authority with
all necessary documentation, coordination, and concur-
rence.
(4) Performs administrative and reporting duties
and arranges for publicity.
g. Functioning of the Committee:
(1) Committee Quorum. A committee quorum con-
sists of the chairperson or alternate and two voting
members.
(2) Subcommittees. In the interest of expediting
committee actions, a committee membership large
enough to be divided into subcommittees is desirable.
The commander appoints a chairperson and an alternate
for each subcommittee to be responsible to the chairper-
son. The chairperson and alternate maintain close
coordination with subcommittees. Subcommittee actions
are not reviewed by the full committee, but the com-
mittee chairperson or alternate signs all official com-
mittee correspondence.
(3) Individual Action by Committee Members. To
expedite processing and reduce work-hours required for
meetings, committee members may review and act on
cases individually without a meeting. The executive
secretary completes action according to the members'
votes.
6-5. Requesting Reconsideration. The recommending
official may request reconsideration of decisions made on
the recommendation for an award. The reasons for
reconsideration must be stated in a written request
within 30 days of the receipt of the decision. If a
request also is made for personal oral presentation, the
local incentive awards committee or approving authority
will honor it and fully consider the reconsideration
request. If an oral presentation is made, the information
provided orally must become part of the file to show
that the award is justified.
6-6. Recognition of Supervisory Participation in the
Program. To the extent that opportunities for such
contributions were present, award recommendations for
supervisors must describe specific examples of how the
supervisor exceeded normal performance of EEO,
Affirmative Action, Position Management, and other
Special Emphasis Program (SEP) responsibilities.
6-7. Presentation Ceremonies. The commander, desig-
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nated representative, or supervisor recognizes employees
and presents awards at a suitable ceremony. When an
Air Force employee receives recognition outside the Air
Force (for example, DOD Distinguished Civilian
Service Award), the Air Force function, to which the
employee belongs is responsible for making all arrange-
ments with the awarding party, including protocol
requirements. An approved award may be presented
posthumously to the next of kin. If an honorary or cash
award for an outstanding contribution is being presented,
the recipient's family should be invited to attend, when
feasible. Joint Travel Regulations, Volume II, C6001-4
and Comptroller General Decision, 55CG 1332, prohibit
the use of Federal funds to pay for the travel of family
members of the awardee to attend award ceremonies. It
does, however, provide that travel expenses for a family
member may be paid when the person is needed as the
award recipient's attendant because of a particular
handicap. As an aid to good personnel and community
relations, commanders may hold award ceremonies for
award recipients attended by families, friends, work
associates, and union representatives. According to
FPM Chapter 451, Subchapter 2-2c, it is appropriate on
such occasions to provide light refreshments at nominal
cost under authority of 5 U.S.C. 4503.
6-8. Community Publicity. This program recognizes
Air Force employees who have contributed significantly
to the mission of the Air Force, and the welfare of the
nation. Accordingly, significant achievements or contri-
butions should be recognized and publicized to the local
community in addition to the publicity normally pro-
vided on base. This can enhance the image of the Air
Force and, at the same time, enhance the public image
of Air Force employees in particular and Federal em-
ployees in general. The emphasis should be on the
nature and significance of the achievement, including the
dollar amount of any benefit to the government. The
employee's permission should be obtained before releas-
ing the information to local community media.
6-9. Braille Lettered Certificates. All Air Force award
certificates covered by this regulation and presented to
blind award recipients will be in braille overlaid lettering
as well as in the printed form. Use local purchase to
obtain these certificates.
6-10. Recognition of Local Community or Civic Persons
(Nonfederal Employees). From time to time, local busi-
ness persons. or local civic officials have offered
significant services or contributions to the installation
and Air Force. Commanders may want to consider
recognition of these non-Federal persons. Refer to AFR
900-48 for guidance.
6-11. Incentive Awards Program Annual Report (Civil-
ian), IRON: 1059-OPM-AN. The parent command of
the servicing CCPO prepares the narrative portion of
the annual report, including full documentation of
individual cash awards of $1,500 or more and group
awards of $3,000 or more, pertaining to awards and
recognition administered under this regulation. The
report is sent to OCPO/MPKPO by 10 October for the
fiscal year ending 30 September. The corresponding
statistical portion of the report is produced by OCPO/
MPKPO, through PDS-C. Supplemental reporting
instructions may be issued annually 60 to 90 days in
advance.
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AA' T TTTJi 1 J uxy 170-r
TABLE 6-1
AUTHORITY TO APPROVE AWARDS AND PERFORMANCE RECOGNITION (see note 1)
R
A
B
C
U
L
and total amount of initial and additional
then approving authority is the (see note 2)
E
Award or basis for award
award is
1
Notable Achievement
not less than $50 or more than $150
second-level supervisor.
2
tangible benefits
not less than $50 or more than $1,250
installation commander or members of his or
her staff. For serviced unit, the commander or
members of his or her staff when designated by
the installation commander, (paragraph 6-4e).
In HQ USAF, Deputy Chief of Staff level or
designated member of his or her staff (see notes
3 & 5).
3
intangible benefits
4
combined tangible and intangible benefits
not more than $2,500 (of which not more
than $1,250 will be covered in rule 2 or 3)
5
Quality Step Increase
6
10 and 20 years of service (see notes 4 & 5)
7
Sustained Superior Performance (see note
not to exceed 5% of payable salary
1)
8
tangible benefits
not more than $2,500 when added to
parent MAJCOM or comparable organization
installation awards
commander or designated member of his or her
9
intangible benefits
staff (paragraph 6-4d). For HQ USAF em-
l
h
Chi
f
f S
ff
US Ai
F
10
combined tangible and intangible benefits
not more than $5,000 when added to in-
,
r
oyees, t
e
e
o
ta
orce, or
p
designated staff member. Authority cannot be
stallation awards (of which not more than
further redelegated (see notes 3 & 5).
$2,500 will be covered by rule 8 or 9)
11
Outstanding Civilian Career Service
The Outstanding Civilian Career Service and
12
Meritorious Civilian Service
the Meritorious Civilian Service Awards for
13
Command Award for Valor
HQ USAF personnel will be signed by the
14
30 years of service
Chief of Staff and by commanders at
MAJCOMs and comparable organizations
level. Authority cannot be further redelegated.
15
tangible benefits
over $2,500, but not more than $10,000
Air Force Incentive Awards Board.
16
intangible benefits
17
combined tangible and intangible benefits
over $5,000, but not more than $10,000
18
40 years of service
Chief of Staff, HQ USAF (see note 5).
19
Exceptional Civilian Service
Secretary of the Air Force.
20
Air Force Civilian Award for Valor
21
50 years of service
22
Merit Pay Cash Award (MPCA)
Merit Pay Unit Official (MPUO) (see note 1).
23
Special Act or Service
approval authority depends on the amount of
tangible and or intangible benefits. See rules 2,
3, and 4; 8, 9, and 10; and 15, 16, and 17.
NOTES:
1. Except for Special Act or Service Award (SASA) for Senior
Executives and Merit Pay Cash Awards (MPCA) for GM employees.
The Secretary of the Air Force approves all cash awards for members
of the Senior Executive Service (SES). The MPUO may elect to
approve the MPCA up to $5,000 for GM employees. Sustained Su-
perior Performance Awards (SSPA) and MPCA amounts over $5,000
up to $10,000, are approved by the Air Force Incentive Awards
Board.
2. In addition to authorities specified, officials may approve awards
and amounts authorized for approval at lower supervisory levels.
3. Commanders of SOAs and DRUs may exercise MAJCOM
approval authorities provided in paragraph 6-4a.
4. For HQ USAF employees, by directors for 20-year awards, and,
for 10-year awards, by the director or official at the next lower organi-
zational level except where the awardee works directly for a higher
level official.
5. In Office of the Secretary of the Air Force (OSAF), approval au-
thority is the Secretary of the Air Force or a designated member of his
or her staff.
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AFR 40-452 1 July 1984
Type
Who May Receive
Nature of Contribution
Requirements Which Must
Be Met
Description
Honorary
An employee or group,
A special achievement, or
As contained in appropriate
Usually takes the form of a medal,
a former employee, or
other personal effort that
announcements inviting nomi-
plaque, or certificate.
(Federal,
the estate of a deceased
contributed to efficiency,
nations or in department and
DOD, or Air
employee, provided the
economy, or improved gov-
agency regulations.
Force.)
contribution was made
ernment operations; or for
while the person was a
clearly significant achieve-
government employee.
ments in fostering equal
employment opportunity,
energy conservation, scientific
research, improved communi-
cations with the public, public
service, etc.
Monetary
An individual[, a
Individual performance which
The recommendation is based
MPCA or SSPA. The amount is
former employee, or
exceeded fully successful.
upon a performance appraisal
based on a percentage of the payable
(a) for
the estate of a deceased
rendered under this regula-
salary. An honorary award may be
sustained
employee, provided the
tion.
granted in addition to, or instead of a
high-quality
performance took place
cash award, if it better serves the
job perform-
while the person was a
Performance of all perform-
purpose of matching the award to
ance.
government employee.
ance elements has been at
both the contribution and the em-
least fully successful and over-
ployee.
all performance has been
rated at least excellent.
Supervisors must have
furthered the EEO, Affirm-
ative Action, position manage-
ment, and Special Emphasis
Programs to be the extent
they had opportunity to do so.
The MPCA and SSPA are
only granted in conjunction
with the annual performance
rating, therefore, only one
such award may be granted
for a 12-month period.
(b) for spe-
An employee or group,
Performance which has
The achievement is described
Certificate with cash award from
cial act or
a former employee, or
significantly exceeded job
in writing and submitted
$250 to $35,000. The amount is in
service.
the estate of a deceased
requirements as a one-time
promptly, but no later than 60
proportion to the benefits realized by
employee, provided the
occurrence. For example, a
days after completion of the
the government. When the award is
special act or service
particular project or as-
special act or service.
for a group, all members of the
took place while the
signment which involved
group may receive equal shares, or
person was a govern-
overcoming unusual dif-
the total may be divided in propor-
ment employee.
ficulties, performance of
tion to the individual contributions to
assigned duties with special
the group effort. However, the total
effort or innovation that
amount of the award may not exceed
resulted in significant
the amount authorized for that type
economies or other highly
of contribution if it were being
desirable benefits, creative
awarded to an individual. An
efforts that made important
exception may be made by HQ
contributions to science or
USAF/MPK if the individual award
research, exemplary or
amount would be too small for the
courageous handling of an
degree of recognition considered
emergency situation related to
appropriate. An honorary award
official employment, or per-
may be granted in addition to, or
formance above fully suc-
instead of a cash award, if it better
cessful on one or more critical
serves the purpose of matching the
performance elements, when
award to both the contribution and
the overall performance rating
the employee.
is fully successful.
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AFR 40-452 1 July 1984
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Type
Who May Receive
Nature of Contribution
Requirements Which Must
Be Met
Description
(c) for nota-
An employee or group,
Noteworthy contribution as a
The contribution is described
Certificate with cash award from $50
ble achieve-
a former employee, or
one-time occurrence. For
in writing and submitted
to $150.
ment.
the estate of a deceased
example, a significant
promptly, but no later than I
employee provided the
contribution that did not
month after completion of
contribution took place
warrant an SASA but dis-
contribution.
while the employee
played initiative, persever-
was a government em-
ance, and devotion to duty; or
ployee.
other noteworthy contribu-
tion.
Quality Step
An employee paid
High quality performance
The award is justified by the
An additional WGI which indef-
Increase
under the General
above that normally found in
performance appraisal ren-
initely raises the employee's rate of
(QSI)
Schedule.
the type of position con-
dered under this regulation.
basic pay.
cerned.
Overall performance has been
rated superior.
Performance is considered
characteristic of the indi-
vidual's performance and the
employee is expected to
remain in the same position,
or in a position in the same
grade that is similar enough to
the present position that his or
her performance can reason-
ably be expected to continue
at the same level of effective-
ness for at least 60 days.
The employee has not
received a QSI during the
past 52 weeks.
The employee is not at the
top rate for the grade on the
pay schedule.
Supervisors must have fur-
thered the EEO, Affirmative
Action, position management,
and Special Emphasis Pro-
grams to the extent they had
an opportunity to do so.
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AFR 40-452 1 July 1984
Chapter 7
MONETARY RECOGNITION FOR PERFORMANCE
7-1. General Information. The monetary recognition
discussed in this chapter is used along with basic salary
to implement the pay-for-performance concept and the
performance management program. The SAF has au-
thority to grant a cash award up to $10,000. With the
prior approval of the Office of the Secretary of Defense
(OSD) and the OPM, up to $25,000 may be granted for
employee contributions which are highly exceptional
and unusually outstanding. An additional award up to
$10,000, for a total award of $35,000, may be approved
by the President. Award amounts must be proportionate
to the benefits received by the government. Use tables
in figure 7-1 to determine payment for tangible and
intangible benefits, SSPA, and Contributions to Manage-
ment Improvement Projects or Programs. Awards are
paid regardless of separation from the Air Force, except
when the employee is removed for misconduct. In case
of death, the award is paid to the estate of the deceased
employee. The information contained in award nomina-
tions is made available only to those involved in the
decision process and others that have an official need to
know. For non-Federal awards, permission must be
obtained from the nominee, in writing, before the nomi-
nation is released to the sponsor.
7-2. Funding Cash Awards. This program must be
adequately funded in order for it to comply with the
spirit of the law and Air Force policy on civilian per-
formance and productivity. Accountability for civilian
personnel cost management is vested in command, staff,
and line management. Periodic reviews of expenditures
versus program requirements are made to ensure that
adequate funds are available for a continuing viable
program. Each activity will be responsible for budget-
ing an appropriate amount of organizational funds
necessary to meet the requirements of recognizing
exceptional performance or improved productivity.
Therefore, it is recommeded that a percent of the yearly
budget, up to 1 percent, be allocated to support cash
award recognition for all employees governed by this
directive.
7-3. Sustained Superior Performance Award (SSPA).
AF Form 2858, Sustained Superior Performance Award,
is used for this award. It will be based on performance
of GS, ST, or FWS employees only, in which an em-
ployee must have achieved a performance appraisal rat-
ing higher than fully successful. The SSPA is only
granted in conjunction with the annual performance rat-
ing; therefore, only one such award may be granted for
a 12-month period. Approval authority is contained in
table 6-1, and payment is based on figure 7-1, table 4.
NOTE: For comparison of QSI, SSPA, and MPCA, see
figure 7-2.
a. The award is recommended by submission of AF
Form 1001, Recommendation for Recognition, at the
time of the annual appraisal, and processed with the AF
Form 860 that is used as the sole and sufficient
justification.
b. If the employee is promoted after the SSPA has
been recommended and approved, the dollar amount
will be based on a percentage of the payable salary at
the previous lower grade. The SSPA will be computed
on the highest payable salary of the employee for the
period in which the performance is recognized.
c. If the employee is changed to lower grade (such as
expiration of temporary promotion) after the SSPA has
been recommended and the award is subsequently
approved, the dollar amount will be based on a percent
of the payable salary at the previous higher grade pro-
vided the employee has been in the position for at least
90 days. This allows the SSPA to be computed based
on the highest payable salary for the period in which the
performance is recognized.
7-4. Merit Pay Cash Award (MPCA). AF Form 892,
Merit Pay Cash Awards, is used for this award. It is
only for GM employees and is based on performance
under the merit pay system that achieves a performance
appraisal rating higher than fully successful. Only one
MPCA may be granted in conjunction with the annual
performance rating (12-month period). The award is
recommended by submission of AF Form 1001 along
with the AF Form 860 that is submitted to the MPUO.
The AF Form 860 is used as the sole and sufficient
justification.
NOTE: For comparison of QSI, SSPA, and MPCA, see
figure 7-2.
a. The MPUO may approve an initial MPCA not to
exceed 5 percent of payable salary and may further
recommend through appropriate incentive awards
channels an additional amount so that the total MPCA
does not exceed 15 percent of payable salary.
b. The MPUO may designate a member of his or her
immediate staff, a member of the merit pay committee,
or other appropriate official to discharge the MPUO
approval and recommendation authority provided in a
above.
c. As another alternative to the authority and process
set forth in a and b above the MPUO, together with the
merit pay committee, may approve an MPCA of not
more than $5,000. This includes the total of an initial
amount, based on significant tangible or intangible
benefits, so that the total MPCA of $5,000 does not
exceed 15 percent of payable salary. Recommendations
for MPCAs above $5,000 are submitted by the MPUO
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AFR 40-452 1 July 1984
or the merit pay committee direct to the Executive
Secretary, Air Force Incentive Awards Board, OCPO/
MPKPO, Randolph AFB TX 78150.
d. If the employee is promoted after the MPCA has
been approved, the dollar amount will be based on a
percentage of the payable salary at the previous lower
grade. (For the CCPO, first, compute the dollar amount
using the approved percentage. To produce an SF-50,
Notification of Personnel Action, awarding the correct
amount, determine the percentage of the present salary
that will equal the correct MPCA dollar amount. Enter
that percentage when effecting the MPCA, Nature of
Action Code 890, according to FPM Supplement
296-33). If the employee is changed to lower grade
(such as expiration of temporary promotion) after the
MPCA has been recommended (and the award is subse-
quently approved) the dollar amount will be based on a
percentage of the payable salary at the previous higher
grade. (For the CCPO, computations will be made as
explained in the preceding paragraph).
7-5. Quality Step Increase (QSI). AF Form 2857,
Quality Step Increase, is used for this award. It is only
for GS employees and is used to recognize differences in
performance shown by employees engaged in the same
grade and type of position. A QSI will raise the
employee's future salary and is more expensive than the
SSPA. Therefore, such increases must be used judiciously
and granted only when the highest quality performance is
continued and the employee clearly merits faster than usual
salary advancement.
NOTE: For comparison of QSI, SSPA, and MPCA, see
figure 7-2.
a. A QSI must be based on the highest quality of
performance that a supervisor may certify is expected to
continue in the future. Performance must have been in
the same position or a position in the same grade that is
similar enough to the present position that the same
high-quality performance can be expected to continue
for at least 60 days. Since a superior appraisal rating
denotes a certification of the highest quality of per-
formance, it is the only basis for recommending a QSI.
b. Recommendations for QSIs must be accomplished
at the time of the annual performance rating. The
approved AF Form 860 will be used as the sole and
sufficient justification for the AF Form 1001. A state-
ment must be included that:
(1) The employee remains in the same or very
similar position at the same grade and is expected to
remain for at least 60 days,
(2) The performance warranting the QSI during the
appraisal period continued until the date of the recom-
mendation and is expected to continue. (This does not
extend the period of performance being recognized.)
c. QSIs are effective the first day of the first pay
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period following approval. When a QSI is recom-
mended and the employee is also receiving a WGI in
conjunction with the performance appraisal, the final
approval will be accomplished in a manner that complies
with FPM Chapter 531 and assures that the WGI is
effected before the QSI. Only one QSI may be granted
in any 52-week period.
d. Repetitive or yearly QSIs routinely granted to the
same person must be avoided. If an employee has
received a QSI, the performance appraisal documenting
another such increase in the same grade and position
must provide specific, factual evidence of increased
quality of performance significantly over and beyond
that on which the previous increase was granted.
e. When recommending a QSI for an employee who
has been on detail, temporary assignment, or special
projects, the time spent on such assignments may be
counted toward the required period.
f. An employee in the first year of grade and pay
retention because of reclassification of his or her position,
whose performance merits recognition, may be recom-
mended for a QSI because the duties of the position
have not changed. However, an SSPA, rather than a
QSI, is appropriate for an employee in the first year of
grade and pay retention because of RIF, and having been
changed to lower grade in a different, dissimilar position.
7-6. Special Act or Service Award (SASA). AF Form
2860, Special Act or Service Award, is used for this
award. It is for GM, GS, ST, or FWS employees and is
based on a singular special achievement within or outside
of job responsibility that significantly exceeds normal job
performance requirements and warrants special recogni-
tion. An SES member may receive an SASA only for
achievements outside of his or her job responsibility.
The SASA may be given at any time and can be granted
for special acts or services while on detail or other
temporary assignment. Recommendations for SASAs
are submitted immediately following the event, in
narrative format, and normally within 30 days but no
later than 60 days after the special act or service.
Approval authority is contained in table 6-1, and pay-
ment for such awards is based on figure 7-1, table 1.
a. If the SASA recommendation is based on a
singular achievement reflected on AF Form 860, at the
time of the annual appraisal (for example, exceeding a
single but very significant performance element) the
recommendation is submitted on AF Form 1001. The
AF Form 860 is attached as the sole, sufficient
justification. Otherwise, the AF Form 1001 will be
accompanied by a narrative justification.
b. Recommendations for the SASA for SES members
will be processed through incentive awards channels
with the following deviations. The SAF is the approv-
ing authority for all cash awards for SES members.
Recommendations for approval of the SASA must be
sent to the MAJCOM commander for review. The
commander may then recommend approval to the
AFIAB or directly to HQ USAF/MPKZ, depending on
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the amount of the SASA recommended. Whether or
not review is required by the AFIAB, all recommenda-
tions for approval, as a final step, will be sent to HQ
USAF/MPKZ, Wash DC 20330, for processing to the
SAF.
7-7. Notable Achievement Award (NAA). AF Form
2859, Notable Achievement Award, is used for this
award. It is for a GM, GS, ST, or FWS employee and
is based on noteworthy contributions that may occur at
any time, but do not warrant an SASA. The award can
be initiated by a supervisor at any level; however, it
must also be approved by the next level of supervision,
which is the final approval authority. The amount of the
award may range from $50 to $150 and must be paid
promptly. The approved AF Form 1001, along with
narrative justification and copy of the signed certificate,
is sent by the second-level supervisor to the local
Executive Secretary, Performance Awards Committee,
who sends it to the Accounting and Finance Office for
payment.
a. There is no limit on the number of NAAs that may
be granted except that the award must not be granted
for a contribution for which a previous award was
granted. An NAA for performing one aspect of a work
plan does not preclude other subsequent monetary
recognition, provided performance of the entire work
plan warrants it. An NAA previously granted during
the rating period should be considered in setting the
amount of any subsequent monetary recognition. It is
intended that this award be used on a broad basis to
afford timely recognition at any level of command.
b. The contribution must be described in writing and
submitted promptly, but no later than 30 days after com-
pletion of the contribution. Procedures for nominating
and processing an NAA will be established locally.
Criteria may include any of the following:
(1) Displaying initiative, perseverance, and dedica-
tion to duty.
(2) Improving procedures or methods.
(3) Eliminating or minimizing safety hazards.
(4) Increasing productivity.
(5) Saving time, money and resources.
(6) Improving customer service or service to the
public.
(7)
Similar noteworthy contributions.
7-8. Productivity Cash Incentive Program (PCIP).
Overall requirements and guidance for Air Force
productivity programs are set forth in AFR 25-3.
According to that program, FPM Chapter 451, Sub-
chapter 6, and this regulation, activities are encouraged
to establish unique PCIP. According to FPM Chapter
451, Subparagraph 6c, an activity may contact the OPM
for help in designing and implementing a PCIP. In addi-
tion, HQ USAF/MPKE may be contacted for advice
and information regarding such programs. The follow-
ing requirements and guidance apply:
a. A PCIP should be limited to production type jobs
where:
(1)
itive.
recurring and the tasks are repet-
(2) The work can be simply and objectively meas-
ured.
(3)
Performance can be tied directly to a specific
employee or group of employees.
(4) The work pace is controlled by the employee.
b. A PCIP must be designed to augment or work in
conjunction with, and not replace or be overly redun-
dant with job performance plans set up according to this
regulation.
c. The cash award must be sufficient for the effort
expended, based on savings to the Air Force, set in
advance and automatically earned if prescribed standards
are met, and should be paid promptly after it is earned.
The PCIP cash award amounts may be set up inde-
pendently of the award scales contained in figure 7-1.
d. Employee participation will be voluntary. Collec-
tive bargaining with recognized labor organizations will
be accomplished, as required.
e. Comply with applicable requirements of AFR
25-3.
f. HQ USAF/MPKE must approve each PCIP before
implementation. PCIP plans and documents will be sent
to HQ USAF/MPKE, Wash DC 20330 at least 120 days
in advance of the desired implementation date.
The following award scales are used to make decisions
on employee performance contributions or a special act
or service that benefit the Government.
Estimated First-Year
Benefits to Government Amount of Award
$500 to $10,000 ......................... 10 percent of benefits
$10,001 to $100,000 .................. $1,000 for the first $10,000, plus 3
percent of benefits over $10,000
$100,001 or more ...................... $3,700 for the first $100,000 plus
.5 percent of benefits over
$100,000
NOTE: The minimum award for tangible benefits is granted only
when benefits reach or exceed $500. For contributions to Management
Improvement Projects or Programs, see table 5.
Figure 7-1. Determining Award Amounts.
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AFR 40-452
1 July 1984
500-$10,000
10%'
61,000
2,530
11,000
1,030
62,000
2,560
12,000
1,060
63,000
2,590
13,000
1,090
64,000
2,620
14,000
1,120
65,000
2,650
15,000
1,150
66,000
2,680
16,000
1,180
67,000
2,710
17,000
1,210
68,000
2,740
18,000
1,240
69,000
2,770
19,000
1,270
70,000
2,800
20,000
1,300
71,000
2,830
21,000
1,330
72,000
2,860
22,000
1,360
73,000
2,890
23,000
1,390
74,000
2,920
24,000
1,420
75,000
2,950
25,000
1,450
76,000
2,980
26,000
1,480
77,000
3,010
27,000
1,510
78,000
3,040
28,000
1,540
79,000
3,070
29,000
1,570
80,000
3,100
30,000
1,600
81,000
3,130
31,000
1,630
82,000
3,160
32,000
1,660 -
83,000
3,190
33,000
1,690
84,000
3,220
34,000
1,720
85,000
3,250
?
35
000
1
750
86
000
3
280
,
,
,
,
36,000
1,780
87,000
3,310
37,000
1,810
88,000
3,340
38,000
1,840
89,000
3,370
39,000
1,870
90,000
3,400
40,000
1,900
91,000
3,430
41,000
1,930
92,000
3,460
42,000
1,960
93,000
3,490
43,000
1,990
94,000
3,520
44,000
2,020
95,000
3,550
45,000
2,050
96,000
3,580
46,000
2,080
97,000
3,610
47,000
2,110
98,000
3,640
48,000
2,140
99,000
3,670
49,000
2,170
100,000
3,700
50,000
2,200
101,000
3,705
51,000
2,230
102,000
3,710
52,000
2,260
103,000
3,715
53,000
2,290
104,000
3,720
54,000
2,320
105,000
3,725
55,000
2,350
106,000
3,730
56,000
2,380
107,000
3,735
57,000
2,410
108,000
3,740
58,000
2,440
109,000
3,745
59,000
2,470
110,000
3,750
60,000
2,500
111,000
3,755
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112,000
3,760
1,050,000
8,450
113,000
3,765
1,100,000
8,700
114,000
3,770
1,150,000
8,950
115,000
3,775
1,200,000
9,200
116,000
3,780
1,250,000
9,450
117,000
3,785
1,300,000
9,700
118,000
3,790
1,350,000
9,950
119,000
3,795
1,400,000
10,2002
120,000
3,800
1,500,000
10,700
125,000
3,825
1,600,000
11,200
130,000
3,850
1,700,000
11,700
135,000
3,875
1,800,000
12,200
140,000
3,900
1,900,000
12,700
145,000
3,925
2,000,000
13,200
150,000
3,950
2,100,000
13,700
155,000
3,975
2,200,000
14,200
160,000
4,000
2,300,000
14,700
165,000
4,025
2,400,000
15,200
170,000
4,050
2,500,000
15,700
175,000
4,075
2,600,000
16,200
180,000
4,100
2,700,000
16,700
185,000
4,125
2,800,000
17,200
190,000
4,150
2,900,000
17,700
195,000
4,175
3,000,000
18,200
200,000
4,200
3,100,000
18,700
225,000
4,325
3,200,000
19,200
250,000
4,450
3,300,000
19,700
275,000
4,575
3,400,000
20,200
300,000
4,700
3,500,000
20,700
325,000
4,825
3,600,000
21,200
350,000
4,950
3,700,000
21,700
375,000
5,075
3,800,000
22,200
400,000
5,200
3,900,000
22,700
425,000
5,325
4,000,000
23,200
450,000
5,450
4,100,000
23,700
475,000
5,575
4,200,000
24,200
500,000
5,700
4,300,000
24,700
550,000
5,950
4,360,000
25,0003
600,000
6,200
650,000
6,450
NOTES:
700,000
6,700
1. Minimum award for tangible benefits is granted only when it is
750,000
6,950
reached or exceeds $500.
000 require the approval of the Office of
Awards over $10
2
800,000
7,200
,
.
Personnel Management (OPM).
850,000
7,450
3. Maximum award authorized by the OPM. A Presidential Award of
900,000
7,700
up to $10,000 may be paid in addition to the $25,000.
950,000
7,950
1,000,000
8,200
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AFR 40-452 1 July 1984
Table 3. Scale of Awards Based on Intangible Benefits.
Value of Benefit
Limited
Extended
Broad
General
Affects functions, mission,
Affects functions, mission,
Affects functions,
Affects functions, mission,
or personnel of one office,
or personnel of several
mission, or personnel of
or personnel of several
facility, installation, or an
offices, facilities, or instal-
an entire regional area
regional areas of com-
organizational element of a
lations.
of command. May be
mands, or an entire depart-
headquarters.
applicable to all of an
ment or large agency, or is
Affects an important area
agency or a large bu-
in the public interest
Affects a small area of sci-
of science or technology.
reau.
throughout the Nation or
ence or technology.
beyond.
Affects a broad area of
science or technology.
Moderate Value-
50 to 100
100 to 250
250 to 500
500 to 1,000
Change or modification of an
operating principle or pro-
cedure which has moderate
value sufficient to meet the
minimum standard for a cash
award; an improvement of
rather limited value of a prod-
uct, activity, program, or ser-
vice to the public.
Substantial Value-
100 to 250
250 to 500
500 to 1,000
1,000 to 2,500
Substantial change or mod-
ification of an operating prin-
ciple or procedure; an impor-
tant improvement to the value
of a product, activity, pro-
gram, or service to the public.
High Value-
250 to 500
500 to 1,000
1,000 to 2,500
2,500 to 5,000
Complete revision of a basic
principle or procedure; a
highly significant improve-
ment to the value of a
product, major activity, or
program, or service to the
public.
Exceptional Value-
500 to 1,000
1,000 to 2,500
2,500 to 5,000
5,000 to 10,000
Initiation of a new principle
or major procedure; a
superior improvement to the
quality of a critical product,
activity, program, or service
to the public.
NOTES (apply to entire table):
1. The minimum award for tangible benefits may be granted only
when the benefits reach or exceed $500. The minimum award for
intangible benefits should require a comparably high standard.
2. Contributions recognized by cash awards based on intangible
benefits must be comparable, in value to the Government, with those
based on tangible benefits.
3. When a contribution has both tangible benefits and intangible
benefits, the amount of award is based on the total value of the
contribution to the Government; that is, a combination of the award
amount based on tangible benefits and the award amount based on
intangible benefits.
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Al'K 411--41 1 July IY54
Table 4. Sustained Superior Performance Award or Merit Table 5. Scale for Computing Awards for Contributions
Pay Cash Award. to Management Improvement Projects or Programs.
1. An Excellent or Superior Not less than 1 percent but not to
performance rating. exceed 5 percent
2. In addition to an Excellent or 6 to 15 percent depending on
Superior performance rating, an dollar amounts of tangible or
employee must have contributed intangible benefits
significant tangible or intangible
benefits to the Government. Use
tables 1, 2, and 3; however, the
maximum payable for an SSPA
or MPCA is 15 percent of pay-
able salary.
NOTE: Must be based upon the appraisal or current performance
rendered under this regulation.
$10,000 to $100,000
$100,001 to $1,000,000
$1,000,001 and up
$150 for the first $10,000 and $25
for each additional $10,000, or part
thereof.
$375 for the first $100,000 and $50
for each additional $100,000, or
part thereof.
$825 for the first $1,000,000 and
$100 for each additional $1,000,000
or part thereof.
? 1
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AFK 4U-452 1 July 1984
Quality Step Increase
(QSI)
Eligibility: GS employees except those in step 10 of their
pay range. (An employee at the statutory
salary ceiling may be granted a QSI to become
effective when the statutory limit is raised.)
Only one QSI may be granted in any 52-week
period.
Required Level of Overall performance must be rated superior.
Performance:
This level of performance is considered
characteristic of the employee's performance
and is expected to continue in the future. The
employee is expected to remain in the same
position, or in a position in the same grade that
is similar enough to the present position that
his or her performance can reasonably be
expected to continue at the same level of
effectiveness.
Documentation: AF Form 1001 is used for recommendations.
Attach the current performance appraisal (AF
Form 860) as documentation or justification.
The AF Form 1001 must accompany the
appraisal to the CCPO within specified time
periods. Also, supplemental justification
includes a certification that:
a. Performance warranting a QSI during the
rating period continued until the date of the
recommendation.
(NOTE: This does not extend the period of
performance being recognized.)
b. Employee remains and is expected to
remain in the same or a highly similar position
for at least 60 days.
Sustained Superior Performance
Award (SSPA)
A one-time, lump-sum cash award
based on a percentage of payable
salary.
GS and FWS employees only. The
SSPA is only granted in conjunction
with the annual performance rating,
therefore, only one such award may
be granted for a 12-month period.
Merit Pay Cash Award
Award (SSPA)
A one-time, lump-sum cash award
based on a percentage of payable
salary.
General Manager (GM) employees
only. Performance must be sub-
stantiated by a higher than fully suc-
cessful performance rating. The
MPCA will only be granted in con-
junction with the annual perform-
ance rating rendered under chapter
2. Only one MPCA may be granted
in any 12-month period.
Overall performance must be rated Overall performance must be rated
at least excellent. at least excellent.
AF Form 1001 is used for
recommendations. Attach the
current performance appraisal (AF
Form 860) as the sole justification.
The AF Form 1001 must accompany
the appraisal to the CCPO within
specified time periods.
AF Form 1001 is used for recom-
mendations. Attach the current
performance appraisal AF Form 860
as the sole justification. The AF
Form 1001 must accompany the
appraisal to the MPUO within
specified time periods.
Appropriate Use: When the employee's continuing high quality When the employee's high quality When the employee's high quality
performance in his or her position merits faster performance in his or her position performance in his or her position
than normal salary advancement when com- has exceeded performance standards has exceeded performance standards
pared with fully successful performance. of the position concerned during a of the position concerned during a
rating period. rating period.
Benefits: Increase in rate of basic pay. May increase A one-time lump-sum cash award. A one-time lump-sum cash award.
employee's life insurance coverage. Can May be granted to those at the top May be granted to those at the top
favorably affect employee's placement in pay step of their pay range or whose step of their pay range or whose
range in future promotions. Can favorably salary has reached the statutory salary has reached the statutory
affect employee's retirement annuity com- limit. limit.
putation.
NOTE: A GS or FWS employee cannot receive a SSPA and a QSI for the same period of performance. Only one award can be given per annual
performance rating.
Figure 7-2. Comparison for Quality Step Increase, Sustained Superior Performance Award and Merit Pay Cash Award.
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AFR 40-452 1 July 1984
Chapter 8
HONORARY AWARDS AND LENGTH OF SERVICE RECOGNITION
8-1. Types of Honorary Recognition. The honorary
awards are fully described in figure 8-1. They are:
a. The President's Award for Distinguished Federal
Civilian Service.
b. Department of Defense Distinguished Civilian Ser-
vice Award.
c. Department of the Air Force Decoration for Ex-
ceptional Civilian Service.
d. Air Force Award for Meritorious Civilian Service.
e. Air Force Outstanding Civilian Career Service
Award.
f. Air Force Civilian Award for Valor. An hono-
rarium of $500 accompanies this award.
g. Air Force Command Civilian Award for Valor.
An honorarium of $300 accompanies this award.
8-2. Eligibility for More Than One Honorary Award:
a. Eligibility for More Than One Federal Award. An
employee may be recommended for the Department of
Defense Distinguished Civilian Service Award, or the
President's Award for Distinguished Federal Civilian
Service, in recognition of the same act or achievement
for which an Air Force award has already been granted.
b. Eligibility for More Than One Air Force Award.
An honorary Air Force award may be granted in
recognition of a contribution for which a cash award has
already been made. However, only one Air Force
honorary award may be given for the same act, achieve-
ment, or period of service. Likewise, an honorary
award is not appropriate for recognizing an act or
achievement for which military recognition under AFR
900-48 has been granted or is contemplated. The Air
Force Outstanding Civilian Career Service Award is
excepted from this restriction, since, by definition, it rec-
ognizes long-term service which may have included one
or more honorary award.
8-3. Honorary Award for Non-US Citizen Employees:
a. Honorary Awards for Direct Hire Non-US Citizen
Employees (Except In Panama). Supervisors use special
procedures in Air Force Supplement to FPM Chapter
451, AFR 900-48 and other information available in lo-
cal regulations or in the CCPO. Include with the rec-
ommendation appropriate background data on the em-
ployee, including whether a background investigation
has been completed and the results; and statements re-
quired by AFR 900-48.
b. Honorary Awards for Indirect Hire Non-US Citizen
Employees. Supervisors use local procedures based on
US Host country agreements.
8-4. Processing Honorary Awards. Honorary awards re-
quire considerable review and deliberation at HQ USAF
and MAJCOM level and short-notice processing is improp-
er. Honorary awards intended for presentation at a special
ceremony should be recommended and submitted at least 3
months in advance of the scheduled event.
a. Award Approved by the MAJCOM or Comparable
Organization Commander. The recommendation is pro-
cessed through local incentive awards channels to the
parent, owning MAJCOM, or comparable organization.
b. Award Approved by the Chief of Staff. The recom-
mendation is processed by or through 1947 HSG/MPK
for personnel assigned to HQ USAF or in an organiza-
tion, other than a MAJCOM or comparable organiza-
tion, that is directly responsible to HQ USAF regardless
of the employee's duty station or servicing CCPO.
c. Award Approved by the SAF or Higher Authority.
The recommendation is processed by local incentive
awards channels through the parent MAJCOM or
comparable organization to OCPO/MPKPO, ATTEN-
TION: Executive Secretary, Air Force Incentive
Awards Board, Randolph AFB TX 78150. The board
sends recommendations to SAF.
8-5. Recognition for Federal Service. Certificates and
emblems (pins or lapel buttons) are presented in recogni-
tion of 10, 20, 30, 40, and 50 years of creditable Federal
service, provided that a minimum of 5 years was in
civilian service in the Federal government. Creditable
Federal service includes both civilian service and all
honorable military service which is creditable for leave.
Normally, Federal service which was served as a mil-
itary member and led to formal military retirement is
considered to have been appropriately recognized at the
time of that retirement. However, if an employee de-
sires recognition of both civilian and military service, a
certificate may be issued for the combined service. In
such a case, the employee must submit the appropriate
DD Form 214, Certificate of Release or Discharge from
Active Duty, documenting the service to the civilian
personnel office.
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Award for Meritorious
Civilian Service
?
Purpose,
Frequency,
Organiza-
tional Ap-
proval Level,
Number
Permitted
Description
of Award
Basis of
Award
Method of
Nomination
and Required
Number of
Copies
Approved by the Secretary of the Air
Force for the Secretariat. Approved by
Chief of Staff, HQ USAF, or a MAJOM
or comparable organization commander
for outstanding service which merits
recognition. No limit on the number
that may be awarded.
Sterling silver medal and lapel emblem
bearing the Air Force coat of arms with
a wreath of laurel leaves. Light blue
silk ribbon rosette with gold and dark
blue in center. Miniature medal citation
certificate carrying the signature of the
Chief of Staff, HQ USAF, or MAJCOM
or comparable organization commander
who authorized the award. (Emblem
with ruby indicates receipt of more than
one Meritorious Award.)
Service so sufficiently outstanding to the
Air Force that recognition by the
Secretary of the Air Force or by the
Chief of Staff, HQ USAF, or by
MAJCOM or comparable organization
commander is merited, such as for:
a. Performing assigned duties for at
least 1 year in an exemplary manner,
setting a record of individual achieve-
ment and serving as an incentive to
others to improve the quality and quan-
tity of their work performance. (Nor-
mally, only one Meritorious Award is
made on this basis to an employee in
any one position.)
b. Exercising unusual initiative in
devising new and improved work
methods and procedures that resulted in
a substantial savings in manpower, time,
space, materials, or other items of ex-
pense; or in improving safety or health
of employees.
c. Making an outstanding contri-
bution in improving the morale of
workers in an organizational unit with
consequent improvement in work per-
formance and esprit de corps.
d. Rendering other outstanding
performance of a comparable level
related to official employment, deemed
by the award authority to be worthy of
recognition as a reward for accomplish-
ment or as an incentive to others. (This
award is comparable to Meritorious
Service Medal for military personnel.)
1001, with detailed and specified
must contain specific examples of the
Decoration for Exceptional
Civilian Service
Approved by the Secretary of the Air
Force for exceptionally outstanding
service which merits recognition. No
limit on the number that may be award-
ed.
Gold-colored medal bearing the Air
Force coat of arms within a wreath of
laurel leaves. Ribbon is dark blue silk
with 3 dotted golden-orange lines in the
center. Miniature medal rosette of the
ribbon and citation certificate carrying
the signature of the Secretary of the Air
Force. Gold lapel emblem. (Emblem
with ruby indicates receipt of both the
Decoration for Exceptional Civilian
Service and the award for Meritorious
Civilian Service. Emblem with dia-
mond indicates receipt of more than one
Exceptional Award.)
Exceptionally meritorious service of
major significance to the Air Force,
such as for:
a. Performing assigned duties for at
least 1 year in a manner clearly excep-
tional to others who have performed
similar duties in a preeminent manner.
(Normally, only one Exceptional Award
is made on this basis to an employee in
any one position.)
b. Developing improved methods
and procedures, or inventions, which
accomplished extraordinary results for
the Air Force.
c. Rendering other outstanding
performance of a comparable level
related to official employment and
deemed by the Secretary of the Air
Force to warrant the highest civilian
Air Force recognition.
each recommendation, using the same
Command Civilian
Award for Valor
Approved by Chief of Staff, HQ USAF,
or a MAJCOM or comparable organ-
ization commander for demonstrating
unusual courage. No limit on the num-
ber that may be awarded. (A $300 hon-
orarium accompanies this award.)
Sterling silver medal of same design as
Air Force Civilian Award for Valor.
Ribbon is light blue silk with four yel-
low stripes and one red stripe in center.
Sterling silver lapel emblem, rosette of
the ribbon, and citation certificate
carrying the signature of Chief of Staff,
HQ USAF, or designated member of his
or her MAJCOM or comparable
organization commander who
authorized award.
Demonstrating unusual courage or
competence in an emergency, while
performing assigned duties.
Supervisor submits four legible copies of
each recommendation, using the same
procedure as for Award for Meritorious
Civilian Service.
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AFR 40-452 1 July 1984
Award for Meritorious
Decoration for Exceptional
Command Civilian
Civilian Service
Civilian Service
Award for Valor
employee's accomplishment and the
benefits in sufficient detail to be easily
understood.
Draft of proposed citation must be
written in third person and include job
designation or organization, period for
which recommended, and statement of
achievement; must not exceed 90 words;
use employee's organizational title
rather than Civil Service title, where
appropriate.
Date Due to
Within 3 months after act or
Within 3 months after act or
At any time (three copies).
Incentive
achievement (three copies).
achievement (five copies).
Awards
Committee
Date Due to
At any time (two copies).
At any time (four copies).
At any time (two copies).
MAJCOM
Date Due to
Not applicable.
At any time (three copies). Requires
Not applicable.
OCPO/
approximately 60 days for processing.
MPKPO
Purpose,
Approved by the Secretary of the Air Force for the Secretariat. Approved by the Chief of Staff, HQ USAF, or designated
Frequency,
member of his or her staff, a MAJCOM or comparable organization commander for demonstrating outstanding career service
Organiza-
meriting recognition at the time of retirement.
tional Ap-
proval Level,
Number
Permitted
Description
Bronze medal bearing the Air Force coat of arms with a wreath of laurel leaves. Ribbon is white trimmed in maroon and with
of Award
three maroon stripes in the center. Bronze lapel emblem and certificate.
Basis of
Outstanding long-term career service of major significance to the Air Force, that does not meet the criteria for other honorary
Award
awards but does deserve special attention and recognition upon retirement.
Method of
Supervisor submits six legible copies of each recommendation, using the same procedure as for the Award for Meritorious
Nomination
Civilian Service. With the exception, a draft citation is not required.
and Required
Number of
Copies
Date Due to
Not later than 60 days before the date of desired presentation ceremony (five copies).
Incentive
Awards
Committee
Date Due to
Not later than 30 days before the date of desired presentation ceremony (four copies).
MAJCOM
Date Due to
Not applicable.
OCPO/
MPKPO
S
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I
f1
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AFR 40-452 1 July 1984
Air Force Civilian
Award for Valor
Purpose,
Frequency,
Organiza-
tional
Approval
Level,
Number
Permitted
Description
of Award
Basis of
Award
Approved by Secretary of the Air
Force for an act of heroism. No limit
on the number that may be awarded.
Gold-colored medal bearing the Air
Force thunderbolt on an equilateral
triangle surmounted by the Air Force
eagle perched on a scroll inscribed
"Valor" within an olive wreath. Ribbon
is light blue with 4 yellow stripes, 2
dark blue stripes, and I red stripe in
center. Gold-colored lapel emblem,
rosette of the ribbon, and citation
certificate carrying the signature of the
Secretary of the Air Force. (A $500
honorarium accompanies this award.)
Exhibiting great courage, with volun-
tary risk of personal safety in the face of
danger, beyond the call of duty, in per-
forming an act that resulted in direct
benefit to the government or its per-
sonnel.
Figure 8-1. Continued.
Department of Defense (DOD)
Distinguished Civilian
Service Award
Approved by Secretary of Defense an-
nually for six civilian DOD employees
whose careers reflect exceptional
devotion to duty and extremely signif-
icant contributions to the efficiency,
economy or other improvements in
DOD operations. A maximum of one
employee may be recommended by each
command each year.
Gold medal, suitably inscribed, and ac-
companying appurtenances including an
appropriate citation.
A contribution in scientific or other
fields worthy of high recognition by an
employee whose career reflects excep-
tional devotion to duty and extremely
significant contributions of broad scope
to the efficiency, economy, or other
improvement in operations, such as for:
a. Performing assigned duties in a
preeminent manner. Indicate the rela-
tionship of the work accomplished to
normal requirements of position; the sig-
nificance to DOD of work accom-
plished, including any savings and im-
provement in operations; and the degree
of unusual initiative or devotion to duty.
b. Developing improved methods,
procedures, or inventions. Indicate na-
ture of the improvement and its rela-
tionship to the work normally expected
in the employee's position; its signifi-
cance to DOD, including savings and
other improvements in operations; and
the degree of ingenuity involved. The
degree of ingenuity involved is of im-
portance since savings alone will not be
the sole basis for selection.
c. Exhibiting great courage and risk
of personal safety. (Indicate in what
way incident is over and above the call
of duty, is prominent among other he-
roic acts performed by employees, and
is an important contribution to DOD.)
d. Rendering other outstanding per-
formance. Indicate the degree to which
contribution was outstanding in terms of
normal requirements of the position,
President's Award for
Distinguished Federal
Civilian Service
Approved by President of the United
States annually for civilian officers or
employees of the Federal government
for exceptionally meritorious or out-
standing civilian service performed in
connection with or in relation to their
official employment. Generally, not
more than five awards in any 1 year. A
maximum of one employee may be
recommended by each command each
year.
Gold medal, suitably inscribed, and ac-
companying appurtenances including an
appropriate citation.
A contribution worthy or high recog-
nition as outlined in the following:
a. An achievement which has current
impact in improving government oper-
ations or serving the public interest, and
exemplifying one or more of the follow-
ing:
(1) For displaying imagination in
developing creative solutions to prob-
lems of government.
(2) In displaying courage in perse-
vering against great odds and difficulties.
(3) For demonstrating high ability
in accomplishing extraordinary scientific
or technological achievement; in provid-
ing outstanding leadership in planning,
organizing, or directing a major
program of unusual importance and
complexity; or in performing an extraor-
dinary act or credit to the government
and the country.
(4) For rendering long and distin-
guished career service.
b. The importance of the achieve-
ments to the government and to the
public interest is so outstanding that the
employee deserves greater public rec-
ognition than that which can be ac-
corded by the Secretary of the Air
Force.
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Air Force Civilian
Award for Valor
Method of
Nomination
and Required
Number of
Brief Copies
Date Due to
Incentive
Awards
Committee
Date Due to
MAJCOM
Date Due to
OCPO/MPKPO
Supervisor submits eight legible copies
of each recommendation, using the same
procedure as for Award for Meritorious
Civilian Service. Draft of proposed
citation must be attached.
Within 3 months after act (seven
copies).
At any time (five copies). Requires
approximately 60 days for processing.
Department of Defense (DOD)
Distinguished Civilian
Service Award
its significance to DOD, and the degree
of exceptional initiative and ingenuity
involved.
Supervisor submits nine copies of each
recommendation following format
outlined below, beginning each major
section on a new page: Title page:
Nomination of (employee's name) for
Department of Defense Civilian Service
Award.
I. Biographical Data
A. General Information (name,
date of birth, title and grade, organ-
ization and location, service compu-
tation date, length of time with DOD).
B. Education (year, degree, school,
major field).
C. Significant Employment (list in
reverse chronological order (beginning
with present position) from-to, position
title, grade, and organization).
D. Significant Prior Awards (list
same as Q.
E. Significant Publications (list
same as Q.
F. Current Membership in Pro-
fessional or Scientific Societies, Civic
Organizations, etc.
G. Other significant biographical
data pertinent to the award nomination.
II. Basis for Nomination (not to exceed
three single-spaced pages).
A. Summary of Achievement.
B. Additional facts and consid-
erations (for example, personal qualities).
III. Citation (double-spaced of no more
than 120 words).
IV. Synopsis (one page).
A. Name, title and grade, field of
specialization, organization, and loca-
tion.
B. Education.
C. Highest previous award and
date.
D. Basis of nomination (summarize
in 300 words or less).
V. Photograph of the Nominee
As announced in the nomination solici-
tation announcement.
President's Award for
Distinguished Federal
Civilian Service
Supervisor submits eight legible, typed
copies, single spaced on standard paper,
including:
a. First page-a biographical sketch
in itemized format containing date and
place of birth, education, employment
record, type of appointment status,
current grade level, etc.
b. Second page-proposed citations
in two-paragraph form of approximately
50 to 60 words.
c. Additional pages containing not
more than 2,500 words with topical
headings as follows:
(1) Summary of Achievement (one
page).
(2) Additional Details (nontechnical
language). Include specific benefits in
improving government operations or
serving the public interest. Describe
separately tangible and intangible bene-
fits. Give examples of personal qualities
if not already covered under other
headings.
d. Statement describing any signif-
icant awards which support the nomi-
nation.
e. Any supporting material must be
submitted separately in bound form.
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AFR 40-452 1 July 1984
In recognition of her distinguished performance as Technical Director for Air-
craft, Aeronautical Systems Division, Air Force Systems Command, from 1982 to
1983. As a pioneer in the field of manned aerospace vehicles, Ms. Employee
helped to advance the Nation's first line of defense through her creative thinking,
highly-competent technical leadership, and exceptional ability as applied to the
advancement of aircraft technology, development, and implementation of new
systems management policies and procedures. Her outstanding devotion and
accomplishments reflect the highest credit upon herself and the United States Air
Force.
In recognition of his outstanding bravery while performing duties as Tractor
Trailer and Fuel Systems Distribution Operator, Ogden Air Logistics Center, Air
Force Logistics Command, 21 May 1982. When a vehicle crashed into a fuel
stand in the storage area spreading burning fuel over a wide area, Mr. Employee
was filling a tanker about 30 feet from the center of the fire. His alertness in
moving his trailer to a safe position and other immediate actions endangering his
own safety prevented a major fire disaster. Such courage reflects the highest
devotion to duty and great credit upon himself and the United States Air Force.
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AFR 40-452 1 July 1984
Chapter 9
OTHER RECOGNITION
9-1. Other Air Force Recognition. Civilian employees
are eligible for other types of recognition, which are
authorized and processed according to the governing
regulation. The AFR 900-series regulations prescribe
these special awards. A few examples are listed below:
a. The General Thomas P. Gerrity Memorial Trophy
for Logistics Management. (See AFR 900-8.)
b. Harold Brown Award. (See AFR 900-13.)
c. Safety Awards. (See AFR 900-26.)
d. Special Trophies and Awards. (See AFR 900-29.)
e. Outstanding Air Force Handicapped Employee of
the Year Award. (See Air Force Supplement to FPM
Chapter 306.)
f. Air Force Distinguished Equal Employment Oppor-
tunity Award. (See AFR 900-58).
9-2. Non-Air Force Performance Recognition Programs.
Air Force employees may receive monetary and hono-
rary awards from other Federal departments and agen-
cies for contributions of benefit to those operations. The
Air Force may grant monetary and honorary awards to
employees of other Federal departments and agencies
when their contributions benefit the Air Force.
9-3. Non-Federal Awards. Figure 9-1 lists the various
non-Federal awards available for Air Force participa-
tion on a national basis. Nominations are solicited by
OCPO/MPKPO. In addition, commanders at each
echelon are encouraged to participate in any locally
sponsored honorary awards program that recognizes the
performance or service of Air Force employees. The
criteria for these awards must be followed and not
altered by any nominating activity.
9-4. Letter of Commendation. Use these letters to com-
mend an employee for unusual work performance, or for
an act or service that clearly exceeds that normally
expected in the performance of duties. The letter may
be awarded for any unusual achievement, performance,
or contribution which does not meet the criteria for a
cash award. Such letters are considered during perform-
ance appraisal and may be used in partial support of
recommendations for awards. Such instances include,
but are not limited to: adopted suggestion, when the
employee is ineligible for cash or honorary award;
noteworthy performance while on special assignment or
during short periods when an unusual work situation or
emergency exists; exceeding one or more performance
standards in a performance plan; non-Air Force recogni-
tion of outstanding Air Force programs reflecting credit
on the employee's contribution; or exceptional participa-
tion in civic or professional activities related to official
employment. Letters of commendation will:
a. Contain a complete and concise description of the
employee's work performance, act, suggestion, improve-
ment, or service and identifying information, such as
position title, organization, and dates.
b. Bear the signature of the commander or immediate
staff member or the director of a major organizational
component or higher official at MAJCOM, comparable
organization, or HQ USAF.
c. Be given to the employee through supervisory
channels. AF Form 971, Supervisor's Record of Em-
ployee, may be annotated with a reference to the letter,
or a copy of the letter may be attached to the form.
d. Be filed in the employee's SF 66, Official Personnel
Folder (OPF).
9-5. Letter of Appreciation. Use this letter at any time
to express appreciation to an employee for work per-
formance, act, or service that is better than normally ex-
pected. The letter may be used for recognizing em-
ployee contributions to civic or professional activities
normally expected in the performance of the job, such as
speaking, participating in conferences, or other leader-
ship activities. The letter is signed by the immediate
supervisor, higher-level supervisor, or any person having
knowledge of the service rendered and is given to the
employee through supervisory channels. The receipt of
such a letter may be recorded on or a copy attached to
AF Form 971. It will not be placed in the SF 66. Such
letters are considered during performance appraisal and
may be used in partial support of recommendations for
awards.
9-6. Special Command Trophies and Awards:
a. MAJCOMs and comparable organizations are en-
couraged to establish unique honorary awards to en-
hance performance recognition. Approval must be
obtained from HQ USAF/MPKE before implementing a
unique award. Requests should be submitted to HQ
USAF/MPKE at least 90 days before proposed imple-
mentation.
b. Approval from HQ USAF/MPKE is obtained
before presenting a special command trophy or award to
a nationally prominent person serving as an expert or
consultant under AFR 40-304. The request for
approval, including the name of the person, a copy of
the awards committee minutes, if applicable, and other
supporting data will be sent to HQ USAF/MPKE at
least 60 days before the presentation ceremony.
c. Recognition is limited to items, such as emblems,
certificates, plaques, or trophies, that may be worn or
displayed by the recipient. Items or merchandise that
have intrinsic value and are primarily designed to serve
other purposes are not to be used as honorary awards.
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AFR 40-452 1 July 1984
9-7. Wearing or Accepting Foreign Awards. An Air
Force employee may not accept or wear a decoration
? offered by a foreign government without the express
consent of the Congress. (See AFR 900-48 and 5
U.S.C. 7342.) The CCPO sends inquiries regarding for-
eign awards to US citizen employees to HQ
AFMPC/MPCASA, Randolph AFB TX 78150.
9-8. Other Productivity Related Programs. There are
programs within the Air Force whose objectives are to
increase productivity, reduce cost, and simplify
procedures or operations. Examples of such programs
include Energy Conservation; Value Engineering; Zero
Overpricing; Fast Payback Capital Investment; and
Productivity, Reliability, Availability, Maintainability.
To the extent that employee contributions to programs
of this nature benefit the Air Force and substantially
exceed job requirements, recognition may be granted
under this regulation. (See figure 7-1, table 5.)
Name of Award
Purpose
Description of Award and Number
Brief Description of Criteria (See annual
Granted Annually
announcement for details)
Arthur S.
To honor outstanding individuals in the
Engraved Plaque (10)
Career employees of the Executive Branch,
Fleming
Federal government and to recognize
under 40 years of age. A specific accom-
Awards
those who have performed outstanding
plishment for which the nominee is primar-
(Established
and meritorious work for the govern-
ily responsible, resulting in service or in
1955)
ment, to attract outstanding persons to
substantial financial savings to the govern-
the Federal government, encourage high
ment or in significant social or technolog-
standards of performance in the Federal
ical progress, or outstanding executive,
service, and to enhance appreciation of
scientific, or technical ability or outstanding
our form of government and the oppor-
performance displayed by nominee during
tunities and responsibilities it represents.
preceding fiscal year, but not necessarily
connected with or related to a specific
accomplishment or project.
William
To recognize and encourage outstanding
Gold Key and Certificate of Merit (1)
Career employees under the age of 37
A. Jump
and deserving young government em-
whose work performance, over a period of
Memorial
ployees for sustained growth, devel-
at least 5 years in either a line or staff po-
Award
opment, integrity, and interest in the
sition, demonstrates unusual competence
(Established
field of public administration.
and interest in public administration, en-
1950)
dowment for leadership in the direction or
development of programs, creativity and
resourcefulness, close adherence to the
basic principles of enlightened public serv-
ice, and integrity and dedication to duty.
Roger W.
To recognize executives within the
Bronze Plaque and Citation (2)
Career executives who have demonstrated
Jones
Federal government whose leadership
superior leadership which resulted in out-
Award
has resulted in outstanding organiza-
standing organizational achievements, and a
for
tional achievement and who have
strong commitment to the effective con-
Executive
successfully fostered the development of
tinuity of government by successfully
Leader-
managers and executives for career
bringing about the development of man-
ship
service.
agers and executives may be nominated.
(Established
1978)
William
To recognize outstanding contributions
Plaque and Citation (1)
Sustained or single contributions of major
T. Pecora
of individuals or groups toward under-
importance to the art or science of under-
Award
standing of the earth by means of re-
standing of the earth through observations
(Established
mote sensing.
made from space. All individuals or
1974)
groups, military or civilian, working in the
field of earth resource sensing, including
those from the scientific and technical
community and those involved in the
practical application of remote sensing.
Figure 9-1. Major Awards Sponsored by Non-Federal Organizations.
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AFR 40-452 1 July 1984
Chapter 10
WITHIN-GRADE INCREASES (WGI)
10-1. General Information. This chapter applies to
FWS employees and to GS employees except for GS
employees on a temporary or term appointment limited
to 1 year or less. The employee receives a WGI when
the required waiting period is completed, an equivalent
pay increase was not granted during that period, and the
employee's job performance is at the fully successful
level or higher, except as provided for in paragraph
10-4.
10-2. Waiting Period for the GS WGI. Any time in a
pay status on any given day constitutes a day of credit-
able service.
a. For a full-time employee and a part-time employee
with a regularly scheduled tour of duty:
(1) For advancement to steps 2, 3, and 4, 52-
calendar weeks of creditable service.
(2) For advancement to steps 5, 6, and 7, 104-
calendar weeks of creditable service.
(3) For advancement to steps 8, 9, and 10, 156-
calendar weeks of creditable service.
b. For an employee without a prearranged regularly
scheduled tour of duty who works less than full time:
(1) For advancement to steps 2, 3, and 4, 260 days
of creditable service in a pay status over a period of not
less than 52-calendar weeks.
(2) For advancement to steps 5, 6, and 7, 520 days
of creditable service in a pay status over a period of not
less than 104-calendar weeks.
(3) For advancement to steps 8, 9, and 10, 780 days
of creditable service in a pay status over a period of not
less than 156-calendar weeks.
10-3. Waiting Period for the FWS WGI. Any time in a
pay status on any given day constitutes a day of credit-
able service. For full-time employees and part-time
employees with regularly scheduled tours of duty:
(1) For advancement to step 2, 26-calendar weeks
in step 1.
(2) For advancement to step 3, 78-calendar weeks
in step 2.
(3) For advancement in steps 4 and 5, 104-calendar
weeks in step 3 and 4, respectively.
10-4. Waiver of Requirement for Determination of Fully
Successful Performance. Under the following condi-
tions, the employee will receive the WGI when the
waiting period is completed but fully successful or
higher performance has not been observed:
a. The GS employee has been in a duty status for less
than 60-calendar days during the final 52-calendar
weeks of the waiting period due to absences considered
creditable service either because of paid leave, or
because of service credit under the back pay provisions
of 5 CFR, Part 550.
b. The FWS employee has been in a duty status for
less than 30-calendar days during the 26-calendar weeks
waiting period for the same reasons described in a
above.
10-5. Granting the WGI:
a. When the employee is eligible for a WGI and the
last assigned rating is fully successful or better, the WGI
will be granted automatically. If performance has
declined from fully successful to less than fully success-
ful, see instructions on withholding the WGI in para-
graph 10-7.
b. To grant the WGI when the last assigned rating is
less than fully successful, and performance has improved
since the last rating, the supervisor must complete AF
Form 860 (indicating a rating of fully successful or
better) and submit it to the CCPO no later than 14 days
before the WGI is due.
c. To grant a WGI at any time following denial, the
supervisor must complete AF Form 860 indicating a rat-
ing of at least fully successful, and submit it to the
CCPO.
10-6. Postponing the WGI. The WGI for a GS or FWS
employee must be postponed when either of the two
conditions explained in a and b below exist:
a. The employee's performance is below the fully
successful level and he or she has not been given a
performance plan or otherwise told of the specific
requirements for fully successful performance at least
30-calendar days before the end of the waiting period.
The supervisor will promptly notify the CCPO of the condi-
tion.
b. The employee has been reassigned or demoted
because of unacceptable performance and is or will be
eligible within 60 days for a WGI. The CCPO notifies
the supervisor of the date the increase is due and the
requirement to postpone.
c. Under either of the two conditions, the supervisor
must notify the employee in writing of the postpone-
ment, the reason for it, and that he or she has no more
than 90-calendar days to demonstrate fully successful
performance. The employee must be given a new or
revised performance plan (AF Form 860, Part 1) that
establishes the performance elements and standards that
must be met during the 90-day period to demonstrate
fully successful performance.
d. At any time after the 60th day but not later than
the 90th day, when fully successful performance is
demonstrated, the supervisor will complete AF Form
860 and send it to the CCPO. The WGI will then be
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AFR 40-452 1 July 1984
granted retroactive to the original date due.
? e. If no later than the 90th day the employee's
performance remains below fully successful, action must
be initiated to withhold the WGI. The supervisor will
complete AF Form 860, send it to the CCPO, and com-
ply with paragraph 10-7.
10-7. Withholding the WGI. There are three situations
under which the WGI is withheld:
a. When the rating of record is fully successful and
performance has deteriorated to less then fully success-
ful.
b. When the rating of record is less than fully suc-
cessful.
c. When the employee failed to demonstrate fully
successful performance during the 90-day postponment
period. In the first situation, when performance has
deteriorated to less than fully successful, the supervisor
must:
(1) Notify the CCPO of the decision to issue a new
rating and to deny the WGI.
(2) Complete the AF Form 860 and provide a copy
to the employee.
(3) Normally, no later than 30 days before the
WGI is effective, give the employee a letter informing
him or her of the decision to deny the WGI.
(4) Send the original copy of the AF Form 860 to
the CCPO normally no later than 14 days before the
effective date of the WGI. (NOTE: If the employee
has a current rating of fully successful or better but has
been advised of unacceptable performance on one or
more critical elements of the work plan under the provi-
sions of paragraph 5-la, a performance rating is not
assigned, instead, the employee is only given the letter of
decision to withhold the WGI.) A letter of decision to
withhold a WGI must contain:
(a) The specific performance element and per-
formance standard in which the employee was deficient.
(b) A statement explaining how the employee
must improve his or her performance in order to receive
a WGI.
(c) A statement of the employee's right to rep-
resentation according to paragraph 10-8.
(d) A statement that the employee or the
employee's representative may request reconsideration of
the decision no later than 15-calendar days after receipt
of the letter and the name and address of the official to
whom the request must be submitted; that the request
must be filed, in writing, setting forth the reasons why
the decision should be reconsidered; and that considera-
tion will be given to extending the time limit to request
reconsideration if the employee requests an extension
and shows that he or she was unable to meet the time
limit due to circumstances beyond the employee's
? control.
(e) A statement that if the employee or the
employee's representative wishes to make an oral re-
sponse to the decision or in an addition to a written re-
sponse, the written request for reconsideration must so
indicate.
(f) A statement that a file has been established
which contains all pertinent documents relating to the
decision; a statement that the employee and the
employee's representative may review the file; a state-
ment of how to arrange to review the file. Include the
name, office symbol, location, and telephone number of
the person with whom arrangements should be made
and the location of the file.
(g) A statement that the employee and the em-
ployee's representative, if otherwise in a duty status, will
be granted a reasonable amount of official time to review
the material relied on to support the decision and to
prepare a response; a statement of how to arrange for
use of official time (identify the person with whom
arrangements should be made); a statement that con-
sideration will be given to extending the time if the em-
ployee requests an extension and provides sufficient rea-
son for the request. Each case requires a separate
determination of reasonable time. The determination is
based on the individual case, and such matters as the
complexity of the issues, the amount of and type of
material to be reviewed and the difficulty in obtaining
assistance. Therefore, a standard, predetermined
definition of "reasonable" is not possible. If the em-
ployee is covered by a bargaining agreement, the provi-
sions of the agreement must be followed.
NOTE: The sample letter in figure 10-1 does not apply
to the above letter.
d. In the second situation, if the employee is eligible
for a WGI and the last assigned rating is less than fully
successful, PDS-C will not process the WGI. The
supervisor must notify the employee of the decision to
deny the WGI (figure 10-1 shows a sample letter). To
withhold the WGI, the supervisor, with the coordination
of the CCPO, gives the employee the letter of decision
to withhold, normally no later than 30-calendar days
before the effective date of the WGI.
e. In the third situation, the supervisor will comply
with the procedures in paragraph 10-7c(3), except that
the 30-day advance notice period is considered to have
been satisfied within the postponment process.
10-8. Employee Representation Rights in the Recon-
sideration Process. For bargaining unit employees,
provisions of the bargaining agreement, if applicable,
govern the employee's rights to representation. Em-
ployees not in bargaining units have the right to be ac-
companied, represented, and advised by a representative
of their own choice.
a. The reconsideration official may, in any case,
disallow the employee's choice of a representative if.
(1) Activities of the individual, as a representative,
would cause a conflict of interest or position.
(2) Release of an employee from his or her official
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AFR 40-452 1 July 1984
position to serve as a representative, would give rise to
unreasonable costs to the government.
(3) Priority work assignments, of the individual,
preclude release to serve as a representative.
b. The disallowance must be in writing. It must fully,
clearly, and specifically state the basis for the dis-
allowance. Citations of regulatory provisions and other
authorities relied upon are included. It must be
delivered to the employee within 5 workdays after noti-
fication of the employee's selection of a representative or
as soon as possible thereafter, if the employee is not
available. The notice of disallowance will become the
basic explanation of management's position in an adjudi-
cation.
c. An employee in a bargaining unit has the right to
challenge the decision to disallow his or her choice of a
representative through the provisions of the bargaining
agreement or 5 U.S.C. 7118, as appropriate.
d. An employee who is not in an exclusive bargaining
unit has the right to challenge the determination to
disallow his or her choice of representative according to
AFR 40-771.
10-9. Reconsidering the WGI Withholding Decision. If
an oral response is made, a transcript or summary must
be prepared and the employee or representative must
have an opportunity to submit a written exception to the
summary or transcript. The exception is made a part of
the reconsideration file. The response of the employee,
the performance plan, the performance appraisal, docu-
mentation of periodic performance discussions, other
documentary evidence, and the overall rating which
served as the basis for withholding the WGI will be con-
sidered. The reconsideration official must notify the
employee in writing of the decision within 30-calendar
days of receipt of the employee's request for recon-
sideration.
a. The mating and reviewing officials may be directed
to revise or prepare a new AF Form 860 that documents
an overall rating of fully successful or higher. The WGI
will then be granted retroactively to the original date
due.
b. If the decision is sustained for an FWS employee,
the employee is informed, in writing, of the reasons, and
his or her right to grieve the decision. FWS bargaining
unit employees who have access to a negotiated griev-
ance procedure may grieve the decision according to
that procedure. FWS bargaining unit employees with-
out access to a negotiated grievance procedure and FWS
employees not included in a bargaining unit may grieve
the decision according to AFR 40-771.
c. If the decision is sustained for a GS employee, the
employee is informed, in writing, of the reasons, and his
or her right to further review as follows:
(1) For GS employees covered by a collective
bargaining agreement whose negotiated grievance pro-
cedure does not expressly exclude WGI determinations,
the right to file a grievance falls under that procedure.
(2) For all other GS employees, the right to appeal
to the MSPB. The employees will be advised of the
time limits for filing an appeal to the MSPB and pro-
vided the address of the appropriate MSPB office for
filing the appeal, a copy of the MSPB regulations, and a
copy of the appeal form.
10-10. Action After the WGI is Withheld. After a WGI
is withheld, the supervisor may grant the WGI at any-
time after he or she determines that the employee has
demonstrated sustained fully successful performance.
After withholding a WGI, the supervisor must
determine whether the employee's performance warrants
a WGI after each 52-calendar weeks following the origi-
nal due date for the WGI.
a. If the employee's performance improves to a fully
successful level during the time a WGI is being with-
held, the new appraisal rating is documented on AF
Form 860, and sent to the CCPO. The employee is
granted the WGI at the beginning of the first pay period
after the CCPO receives the form. The WGI granted
under these circumstances is not retroactive. ,
b. If the employee's performance does not improve to
at least a fully successful level after remedial action and
within a reasonable period of time after the WGI was
originally withheld, the supervisor should work with the
CCPO to determine what other corrective or admin-
istrative action is appropriate.
10-11. The Reconsideration File. When the employee is
issued a final negative decision, the CCPO will maintain
an Employee Reconsideration File according to AFR
12-50. The file will contain no document that has not
been made available to the employee and will contain
copies of:
a. The written negative decision, a copy of the final
performance appraisal, and documentation of the
periodic performance discussions which served as the
advance notice of deficient performance.
b. The employee's written request for a reconsidera-
tion.
c. A report of investigation if an investigation is
made.
d. A written summary or transcript of any oral pre-
sentation made by the employee.
e. A written exception to the summary or transcript
by the employee or his or her designated representative
if one is made.
f. The final decision on the reconsideration.
g. Other documents applicable to the case.
?
?
?
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Office
Symbol
SUBJECT: Decision to Withhold Within-Grade Increase (WGI)
TO: (Employee's name and organizational address)
1. This is to notify you that I am withholding your WGI which is (was) due on -(date)-. Dur-
ing your last periodic performance progress review, held on (date) , you were advised that the
performance of your duties and responsibilities was (minimally acceptable) or (unacceptable) and that
you would have to improve your performance by the end of the required waiting period on
(date) in order for you to advance to the next higher step of your grade. Listed below are the
performance element(s) and performance standard(s) for acceptable performance in which you were
deficient and were advised that you would have to meet to be granted your WGI. (List each deficiency
by element, standard, and reason(s) his or her performance does not meet the standard.)
2. On -(date)-, I assigned you a performance rating. A copy of your appraisal is attached.
Your performance was still deficient as indicated above. Because your performance is not fully success-
ful, your WGI will be withheld.
3. To be granted your WGI, your performance, for each element listed in paragraph 1, must meet the
established standard(s). (If the standard does not state specifically what is expected, the employee must
be told here exactly how performance must improve to a fully successful level.) Additionally, your
performance must continue to meet the standards established for all other elements contained in your
performance plan. I will continue to counsel you in improving your performance.
4. (An employee's right to representation in preparing a response to the negative determination is stated
here. See paragraph 10-8 for appropriate language.) If you elect to have a representative, your request
for reconsideration must so state and contain the name of that individual.
5. You, or your personal representative, may request an administrative reconsideration of this decision.
Your request must be in writing and must reach (name, office location, and telephone number of recon-
sideration official) no later than 15 days from the date you receive this notice. Your request must state
the specific reasons you believe the decision to withhold your WGI should be reconsidered. As an
alternative, if you or your personal representative wish to present the reasons for requesting reconsidera-
tion by an oral presentation to (name of reconsideration official), your written request must so state and
ask for an appointment to make this presentation. Consideration will be given to extending the time limit
provided you can show sufficient reason for needing an extension. You and or your representative, if
otherwise in a duty status, are authorized up to hours of official time to prepare your request for
reconsideration. Your request for use of official time must be submitted to me. If you have a
representative, and he or she is a military member or Federal employee, a request for official time must
be sent to his or her supervisor. Copies of all material relied on in taking this action are available for
review by contacting (name, office symbol, location, and telephone number).
6. If you wish to review civilian personnel regulations pertinent to this action, or obtain additional infor-
mation concerning how to submit a request for reconsideration, you may contact (name, address, and
telephone number of CCPO representative).
Rating or Reviewing Official
1 Attachment
AF Form 860, Civilian Performance and Promotion Appraisal.
Figure 10-1. Sample Decision To Withhold Within-Grade Increase.
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Chapter 11
THE MERIT PAY SYSTEM
11-1. Coverage. The Merit Pay System covers GM-13,
14, and 15 supervisors, managers, and management
officials serving under appointments such as career,
career-conditional, or temporary appointments, whether
in a probationary status, temporarily promoted, reas-
signed, or detailed to other GM positions, the duties of
which meet the definition of "Supervisor," "Manager,"
or "Management Official" as set forth in 5 U.S.C.
7103(a)(10) and (11).
11-2. Identifying Positions and Converting Employees To
the Merit Pay System. The CCPO, with the assistance
of supervisors, identifies merit pay positions when posi-
tions are first established or changed.
a. The AF Form 1378, Civilian Personnel Position
Description, for each merit pay position must reflect the
GM code. If the position is a growth position
established below grade 13 and is targeted for classi-
fication at a higher GM grade level, the position descrip-
tion must be annotated to identify at what grade level
the position becomes subject to the Merit Pay System.
b. Documents such as vacancy announcements and
letters of notification, will specify if a position is under
the Merit Pay System. Candidates selected for positions
in grades 13 through 15 under the Air Force Promotion
and Placement Referral System (PPRS) will be notified,
in writing, if the positions are covered under the Merit
Pay System.
c. Except as provided by paragraph 11-4, all Air
Force positions identified for coverage were first
converted to the Merit Pay System at the beginning of
the first pay period in October 1981. The positions were
assigned the designator "GM" in lieu of the former
"GS". After the first Air Force-wide conversion,
individual conversion is accomplished when an em-
ployee enters a merit pay position, or an employee's
position is determined to be covered under merit pay.
11-3. Resolving Coverage Disputes. When disputes
occur in coverage determination, employees must try to
resolve them informally with their supervisors, who will
consult with the CCPO. The final determinations are
made at the MAJCOM or comparable command level
organizations to which the positions are assigned. All
determinations will be consistent with the requirements
of the law, decisions of the FLRA, and guidelines from
the OPM, the DOD, and the Air Force. An employee
in a nonbargaining unit position may grieve the Merit
Pay System coverage or noncoverage of his or her posi-
tion through the procedures in AFR 40-771.
11-4. Coverage Disputes Over Bargaining Unit Positions.
Positions included in a bargaining unit cannot con-
currently be covered by the Merit Pay System; thus,
merit pay coverage determinations which involve bar-
gaining unit positions may have a substantial labor-
management relations impact. Accordingly, if a position
in a bargaining unit is identified for merit pay coverage,
the following procedures apply:
a. The CCPO will inform the labor organization hav-
ing exclusive recognition for the bargaining unit, of
those unit positions identified for Merit Pay System cov-
erage. The CCPO will attempt to obtain union con-
currence regarding the coverage of the positions.
Where the union agrees with the CCPO determination
that positions are subject to Merit Pay System coverage,
the agreement should be reduced to writing and filed in
CCPO.
b. Since the FLRA has final approval authority on
the bargaining unit status of positions, all disputes
regarding merit pay coverage determinations will be
referred to FLRA according to FLRA Clarification of
Unit (CU) Petition rules. Where possible, the petition
should be jointly filed with the recognized union.
c. Until the FLRA rules on the status of bargaining
unit positions identified for merit pay coverage, em-
ployees occupying these positions will retain their stand-
ing as members of the bargaining unit and will not be
converted to the Merit Pay System.
d. When the FLRA determines that a bargaining unit
position identified for merit pay coverage is excluded
from the bargaining unit, the employee in the position no
longer has standing as a bargaining unit member. The
employee will be converted to the Merit Pay System no
later than the beginning of the fourth pay period after
receipt of the FLRA decision. When the FLRA deter-
mines that a position remains in the bargaining unit, the
employee in the position will not be converted to the
Merit Pay System.
?
11-5. Composition of Merit Pay Units (MPU). Each
MAJCOM or comparable level organization will define
and establish its MPUs and designate positions to be
included in them. In determining the type and composi-
tion ?
of individual MPUs, the MPUs may be formed
according to geographic proximity, organization, func-
tion, job family, grade, or any combination thereof.
a. Size:
(1) The recommended minimum size of an MPU is
35 GM employees. However, commands have the dis-
cretion to establish smaller units of not less than 10 em-
ployees where the 35 minimum is not practical. This
minimum size ensures a unit large enough to provide
sufficient funds to make meaningful merit pay increases,
provided there is a reasonable distribution of perform-
ance ratings.
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(2) Where a MAJCOM, comparable level or-
ganization, or one of its activities has fewer than 35 GM
? employees, every effort should be made to join with
another organization to form a combination unit having
at least 35 GM employees. Such combination units are
encouraged unless they would be so incompatible as to
make the proposed unit unworkable.
b. MAJCOMs or comparable level organizations will
submit current information to HQ USAF/MPKE on the
establishment or deletion of MPUs as they occur for the
updating of the PDS-C Central Table. In the establish-
ment of MPUs, the following information is required:
(1) Command identification of the MPU.
(2) Plain language identification of organization(s)
and suborganization(s) in the MPU.
(3) Number of employees in each organization by
grade.
(4) Location of the supporting CCPO.
(5) If one organization combines with another to
form one MPU, specify the name of both, their loca-
tions, and the number of employees in each by grade.
Keep statistical totals separate.
11-6. Appointing the Merit Pay Unit Official (MPUO).
The MAJCOM or comparable command level organiza-
tion with jurisdiction over the MPU is responsible for
appointing MPUOs for each MPU. The MPUO may be
either a civilian or a military member who:
a. Is familiar with the functional responsibilities of the
positions in the unit and whose position will result in
acceptance of his or her counsel and decisions.
b. Is not a GM employee in the MPU over which he
or she exercises MPUO responsibilities.
c. Is at the next higher organizational level, if it is not
possible to appoint a MPUO because of the restrictions
specified above.
11-7. Duties and Authority of the MPUO. In general,
the MPUO is responsible for the integrity and credibility
of the Merit Pay Systems in his or her MPU. Since that
system is part of the overall performance management
program and closely tied to the performance appraisal
process, the responsibility is broad and not limited to
merit pay matters, per se. The MPUO:
a. Ensures that a performance plan for each MPU
member is documented on AF Form 860, and completed
in advance of or no later than 30 days after the start of
the appraisal period, or upon assignment of a new MPU
member.
b. Ensures that the overall performance and promo-
tion appraisal and required substantiation for each MPU
member is documented on AF Form 860, and received
by 31 July.
c. Reviews AF Form 860 for completeness and com-
pliance with instructions. Ensures that the overall
performance rating is correctly derived from the rating
on each performance element and the rating scale, and
that reasonable correlation exist between the ratings in
Part I and the individual ratings in Part III.
d. Obtains any required correction or clarifying
substantiation from the reviewing official. If additional
information is not forthcoming or is insufficient to sup-
port a rating, the MPUO may change the rating by alter-
ing the AF Form 860. If a change is made, the MPUO
is required to provide separately or on the form the rea-
son for the change. (For additional information on this
process, refer to figure 11-1.) All changes made by the
MPUO are accepted as the final official rating.
e. Provides guidance to reviewing officials to improve
the correctness, validity, and usefulness of AF Form
860. May also serve as a rating or reviewing official for
subordinate GM employees in an MPU over which he
or she exercises MPUO responsibilities but is not a GM
member thereof.
f. The MPUO reviews and approves MPCAs or
processes honorary award recommendations according
to paragraph 7-4.
g. Ensures that merit pay determinations are correct
and sent to AFMPC by 20 September each year.
11-8. Merit Pay Committee. The MPUO may appoint a
merit pay committee to assist in carrying out the MPUO
responsibilities. The MPUO will define roles, respon-
sibilities, and authorities of the committee members.
11-9. The Merit Pay Process. The performance ap-
praisal rating reflected in AF Form 860, Part IV, based
on the annual GM appraisal cycle that ends 30 June will
serve as the basis for the subsequent merit pay increase.
To the extent possible, therefore, the merit pay pool
computation is based on the composition of the MPUs to
which GM employees were assigned during the
appraisal period. However, since some changes will
occur in unit composition between 30 June and the
October comparability increase because of personnel
actions, some adjustments to the MPUs will be required
to ensure that the total Air Force Merit Pay Fund is
within the parameters established by OPM.
11-10. Establishing the Employee's Merit Pay Records.
Data required on GM employees for use in merit pay
computations are accumulated as follows:
a. Between 15 June and 31 July, performance ap-
praisal ratings will have been rendered by rating officials
and subsequently approved by reviewing officials. Doc-
umentation relative to each merit pay member's rating
will be sent to the member's respective MPUO.
b. Between 16 August and 1 September each year, all
pertinent data relative to the MPU members will be
recorded in PDS-C by the servicing CCPO.
11-11. Updating the Merit Pay Record. Between
2 September and the calculation date as specified in
PDS-C notices, all changes to employee status will be
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made to the employee record. This will result in
computing the various merit pay pools as if the
employee's status on 30 June was the same as it was on
the September computation date. However, even
though an employee may move between units between
1 July and the September computation date, the em-
ployee will receive a merit pay increase as if he or she
were still in the MPU of record on 30 June. The
purpose of this update of the employee's record is to
ensure that the total monies awarded to GM employees
in October will be within 95 to 105 percent of the total
Merit Pay Fund calculated for the Air Force.
11-12. Computing the Merit Pay Pool. After the em-
ployee's merit pay record has been established and up-
dated, the MPUO supporting CCPO will then compute
the merit pay pool.
11-13. Determining Available Merit Pay Funds. Each
year OPM will determine the funds available for merit
pay increase purposes and provide a Merit Pay Fund
Computation (MPFC) Table, together with instructions
for its use.
a. An employee's contribution to the merit pay pool
is a dollar value from the MPFC, depending on his or
her specific grade and position in the rate range. Special
MPFC tables will be applicable for employees on special
rates established under the provisions of Title 5, Section
5303.
b. The total of all Air Force merit pay increases
awarded each year must be no less than 95 percent and
no more than 105 percent of the Air Force merit pay
fund.
11-14. Computing Merit Pay. Each year AFMPC issues
instructions on using PDS-C to process merit pay. The
following explains how the process works:
a. Determining the Merit Pay Pool. Computation of
the merit pay pool will determine how much money a
particular MPU has available for merit pay increases.
The initial process will consist of:
(1) Separating employees in the unit by grade and
their position in their rate range.
(2) Using the MPFC table to determine each GM
employee's contribution to the merit pay pool.
(3) Adding the result of each GM employee's
contribution. The total equals the merit pay pool.
b. Determining the Merit Pay Share Value. Once the
merit pay pool has been computed, the appropriate merit
pay share points are applied based on the GM em-
ployees' grade and performance appraisal. The share
value for a particular MPU is then computed by:
(1) Totaling the merit pay share points for all the
GM employees in the unit.
(2) Dividing the total share points into the merit
pay pool. The quotient equals the initial share value for
the MPU. This value is then multiplied by each
employee's performance rating factor and the result
compared to the legal limits to determine the appro-
priate portion to be charged against the merit pay pool.
(3) After this process is completed for each em-
ployee, the summation of the portions to be charged
against the pool is subtracted from the pool. If the
remainder is large enough to justify another cycle of
distribution (greater than the number of employees of
the pool), then a new share value is computed by divid-
ing this remainder by the total share points, minus the
share points of any employee(s) having reached the
maximum limit for his or her grade.
(4) The result is then added to the previous share
value and the distribution process is repeated. The
process will continue to reiterate the changing share
values among eligible GM employees until the entire
pool is allocated. This results in a dollar amount for
each performance level within each grade and is put into
a Central Table for each MPU. This table value is used
by servicing CCPO to process the merit pay increases.
c. Determining the Individual Merit Pay Increase.
Each GM employee's merit pay increase is then
determined by finding the GM employee's share points
based on his or her current performance rating, and
multiplying the MPU share value by the GM employee's
share points. The product is the GM employee's merit
pay increase.
11-15. Computing Total Base Pay. The merit pay
increase accounts for only one part of the total base pay
increase. By law, each merit pay employee automati-
cally receives at least one-half of the annual comparabil-
ity increase. Therefore, to determine total base pay,
multiply the GM employee's base salary by that portion
of the annual comparability adjustment which OPM
determines is automatic; then, add this amount to the
merit pay increase calculated above.
11-16. Merit Pay Limitations:
a. Once a GM employee reaches the maximum rate of
his or her grade, the calculated amount of merit pay that
exceeds the maximum rate of his or her grade is recy-
cled into the merit pay pool where it will be propor-
tionately redistributed to GM employees who have not
reached the maximum rate of their grades.
b. GM employees who are affected by Congression-
ally imposed pay caps will continue to have their pay
capped at the "asterisk" rate on the General Schedule.
Consequently, any merit pay increases that exceed the
ceiling will be awarded to the GM employees "on paper
only." Once the pay cap is changed or lifted, those GM
employees will be entitled to actually receive the new
rate of pay, if this rate does not exceed the maximum
rate of the rate range for their particular grade on the
General Schedule.
11-17. Promotions Within the Merit Pay System. Unless
is
?
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?
a GM employee is receiving a retained rate under Title
5, Section 5363, his or her rate of pay will be set at the
lowest whole-dollar rate of the grade to which pro-
moted that exceeds the GM employee's existing rate of
pay by 6 percent, or the minimum rate of the higher
grade if that is higher.
11-18. Promotions from the Merit Pay System To the
General Schedule. Unless a GM employee is receiving
retained pay under Title 5, Section 5363, his or her rate
is increased by 6 percent and then fixed at the lowest
step of the grade on the General Schedule that equals or
exceeds that rate.
11-19. Promotions Within the Merit Pay System While
in Receipt of Pay Retention. If a GM employee is
receiving a basic rate saved to him or her under the
provisions of Title 5 Section 5363, he or she is entitled
to:
a. Basic pay at a rate 6 percent above the rate which
he or she would be receiving (the maximum rate of the
retained grade) if this section of law were not applicable.
b. His or her existing rate of pay if that rate is higher.
11-20. Other Promotions and Conversions To the Merit
Pay System. On all other actions that occur during the
year, the employee's pay will be adjusted as if he or she
were a GS employee and then converted to GM.
11-21. Interrupted Service. When a GM employee is on
an extended period of absence during which one or
more merit pay increases occur, and the service is other-
wise creditable for WGI purposes, the GM employee,
upon return, must be paid the sum of:
a. His or her rate of basic pay before interruption of
his or her duty status.
b. One-half of comparability adjustments (or the
amount established by OPM) which occurred during the
interrupted service.
c. The average adjustment received by GM em-
ployees comparably situated (attachment 2). To
calculate the average adjustment, the rate of pay will be
established as though the GM employee had been rated
fully successful in the MPU to which offically assigned
+ throughout the period of absence.
11-22. Merit Pay Coverage During Grade Retention.
The retained grade, while used for most purposes, is not
used in determining whether an employee is covered by
the Merit Pay System. For example:
a. A GM-14 employee under the Merit Pay System
who is subsequently placed in a GS-13 position, and is
entitled to grade retention, retains the grade of GS-14
and is no longer covered by the Merit Pay System.
? b. A GS-14 employee who is placed in a GM-13
position under the Merit Pay System, and is entitled to
grade retention, is covered under the Merit Pay System
as a GM-14 employee. This means that the employee's
work plan is developed based on GM-13 duties but the
rating points and merit pay increase are calculated as
though the employee were serving in the GM-14 posi-
tion.
11-23. Movement To or From a Merit Pay Position.
The following rules are used to set the rate of basic pay
during grade retention:
a. When a GM employee moves from a merit pay
position to a position not covered by the merit pay
system, and is entitled to grade retention, the employee
is entitled to the lowest rate of basic pay from the rate
schedule for the retained grade which is equal to or
exceeds the employee's rate of basic pay before the
move. If there is no such rate, the employee is entitled
to continue his or her existing rate of basic pay.
b. When the employee moves to a merit pay position
from a nonmerit pay position, he or she is entitled to the
rate of basic pay held before the move. If the
employee's rate before the move is above the maximum
rate of the grade, the employee continues to receive this
rate.
11-24. Implementing Comparability Increases. If the
GM employee is receiving a rate of basic pay within the
rate range, his or her rate will be increased by one-half
of comparability (or the amount prescribed by OPM)
plus any merit pay to which entitled up to the maximum
rate of the range. If the GM employee is receiving a
rate of basic pay in excess of the rate range, the em-
ployee's rate will be increased by the amount of the in-
crease in the maximum rate of the employee's retained,
grade according to Title 5, Section 5362. If the em-
ployee's rate exceeds the maximum rate of the grade, he
or she cannot receive merit pay; however, the normal
performance appraisal processes are still followed since
the rating is the basis for other personnel actions.
11-25. Other Pay Changes. Any other change that
occurs will be based on the employee's retained grade.
For example, if there is a special rate increase, the appli-
cability of that increase will be based on the retained
grade. Generally speaking, when an employee moves to
another position during the grade retention period under
conditions which allow grade retention to continue, the
employee's basic rate of pay is determined in essentially
the same manner as when grade retention commences.
However, if the applicable rate schedule changes, if the
employee moves from or to a merit pay position, or if
the employee was receiving a retained rate or saved rate
under some authority other than Title 5, Section 5363, at
the time he or she moves, the step or rate of basic pay
may change.
11-26. Pay Determinations if Grade Retention is Ter-
minated. If the grade retention entitlement is termi-
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nated as a result of expiration of the 2-year period, the
employee is entitled to pay retention. If the employee is
returned to a position at his or her retained grade level,
the employee usually continues to receive his or her
existing rate of pay (paragraph 11-25). If the employee
is promoted to a position that is a grade higher than the
retained grade, the laws and regulations governing
promotions apply. If the entitlement is terminated for
any other reason, the employee's rate of basic pay may
be set at a rate of his or her grade according to the
"highest previous rate rule."
11-27. Pay Administration During Pay Retention:
a. An employee who is covered by merit pay follow-
ing an action covered by pay retention, will continue at
the same rate of basic pay if that rate falls within the
rate range of the employee's grade after the action is
taken. If it does not fall within the rate range of that
grade, the employee is entitled to retain his or her
current rate of basic pay.
b. During a period of pay retention a GM employee
is entitled to 50 percent of the comparability adjustment
by virtue of the provisions of Title 5, section 5363.
There is no entitlement to a comparability adjustment
under the merit pay system, or any entitlement to a
merit pay increase.
11-28. Pay Entitlement Upon Termination of Pay Reten-
tion. If the entitlement is terminated as a result of a
demotion for personal cause or a demotion at the
employee's request, or is terminated as a result of the
employee's declination of a reasonable offer, the em-
ployee's rate of basic pay may be set according to the
"highest previous rate rule."
11-29. Effect of Temporary Promotions and Temporary
Reassignments. The grade and rate of basic pay held
during a temporary promotion or temporary reassign-
ment may not be used to determine whether the em-
ployee has been placed in a lower grade or lower rate of
basic pay. If the employee becomes entitled to grade or
pay retention while under a temporary promotion or
temporary reassignment, the grade or rate of basic pay
to which the GM employee is entitled is not based on
the grade or rate of basic pay during the temporary
promotion or temporary reassignment. Instead, it is
based on the grade or rate of basic pay to which the
employee would have been entitled had he or she not
been temporarily promoted or reassigned. If the em-
ployee is already entitled to grade or pay retention when
he or she is temporarily reassigned, the employee's enti-
tlement to grade and pay retention is not affected in any
way. It simply continues simultaneously with the em-
ployee receiving the greater benefit. Declination of an
offer to temporary promotion or reassignment will not
have any effect on employees entitlement to grade reten-
tion.
11-30. Within-Grade Increases (WGI): Merit pay em-
ployees do not receive a WGI. However, service in a
merit pay position is creditable toward a future GS or
FWS WGI so long as the employee has not received an
equivalent increase while serving as a GM employee.
11-31. Computing the Highest Previous Rate for Merit
Pay Employees:
a. Compare the employee's highest previous annual
rate actually paid with the range of rates in effect at the
time the highest previous rate was earned for the grade
in which pay is currently being fixed.
b. Divide the difference between the employee's high-
est previous rate and the minimum rate of the former
rate range of the grade in which pay is currently being
fixed by the difference between the maximum and
minimum rates of that rate range.
c. Multiply the result by the difference between the
maximum and minimum rates of the current rate range
of the grade in which pay is currently being fixed.
d. Add the result to the minimum rate of the grade in
which pay is currently being fixed and round to the next
whole dollar rate. The resulting rate is the maximum
rate of basic pay that may be paid the employee. As an
example, assume a GM-13 employee was earning
$33,104. The GS minimum and maximum rates at the
time that rate was earned were $29,375 and $38,186
respectively. The current GS minimum and maximum
rates are $32,048 and $41,660, respectively.
STEP 1 Highest Previous Rate: $33,104
Minimum rate of range 29,375
Difference $ 3,729
Maximum Rate $38,186
Minimum Rate -29,375
Difference $ 8,811
Divide $3,729 by $8,811 .4232
STEP II Current Maximum Rate $41,660
Current Minimum Rate 32,048
Difference $ 9,612
Multiply .4232 x 9612 = $ 4,068
STEP III Minimum Rate of'New Grade $32,048
Result of Step 2 +4,068
Maximum Payable Rate $36,116
11-32. Pay Adjustment for Merit Pay Employees
Supervising Federal Wage Systems (FWS) Employees.
Merit pay employees who regularly supervise FWS
employees may be paid a rate which exceeds the highest
rate being paid to the FWS employees that he or she
supervises according to Part 531 of OPM regulations. If
the decision is made to grant the adjustment, the
adjusted rate of the supervisor will be established at 3
percent higher than the rate of the FWS employee on
whose salary the adjustment is based, not to exceed the
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maximum rate of the supervisor's grade. employees in the MPU. There should be no disagree-
ment at this time regarding the adequacy of performance
11-33. Change To Lower Grade from Temporary Pro- elements or standards, because issues of that nature are
motion. Upon change to a lower graded permanent resolved during the "up front" quality control review
position or termination of a temporary promotion, an required by paragraph 2-13.
employee's pay in the permanent position is set as if the
temporary promotion had not occurred. Special provi-
sions are necessary for GM employees because they
require no WGIs. Accordingly, when a GM employee
is changed to a lower graded permanent position follow-
ing a temporary promotion during which one or more
merit pay increases occurred, the employee's salary will
be computed in the lower grade by using the higher of:
a. The rating of record at time of temporary promo-
tion.
b. The rating received during the period of tempo-
rary promotion.
1. OPM regulations require agencies to make merit pay
determinations no earlier than 90 days before and no
later than 60 days after 1 October each year. The Air
Force goal is to determine merit pay increases in
September after OPM publishes the MPFC Table. The
link between the performance appraisal and final merit pay
determination requires that very tight time constraints be
met. Accordingly, completion of AF Form 860 and AF
Form 1001, when appropriate, should begin about
15 June, 2 weeks before the performance appraisal
period ends.
NOTE: The employee will not be advised on the
individual or overall ratings until step 12.
2. 15 June to 31 July:
a. Step 1. The rating official determines the rating
and discusses any pertinent issues with the reviewing
official.
b. Step 2. The reviewing official reviews and ap-
proves the rating and keeps one copy of the form.
c. Step 3. The reviewing official sends a copy of the
form to a quality review point such a a higher level
official, an ad hoc chain-of-command committee, or the
servicing CCPO.
d. Step 4. The quality review point checks the form
for completeness and adequate substantiation; consults
with the reviewing official when necessary, and sends
the original of the complete, correct form to the CCPO
and a copy to the MPUO.
NOTE: This quality review is critical to preclude the
MPUO from having to correct or return forms because
of error or inadequate documentation with the serious
potential of delaying the merit pay process for all
Figure 11-1. Merit Pay Timetable.
3. 1 to 15 August:
a. Step 5. The MPUO conducts the final Air Force
review of the AF Forms 860 and 1001. The MPUO
ensures that there is reasonable correlation between the
individual ratings on the work behavior in Part III, and
the individual performance element ratings in Part I.
The MPUO then ensures that the overall performance
rating is correctly derived from the rating on each
performance element according to the rating scale. The
MPUO obtains necessary additional substantiation, or
clarifying information regarding the performance ele-
ments and standards from the reviewing official. The
MPUO approves the rating as proposed or adjusts the
ratings upward or downward and documents reasons for
changes on the form or attached to the form. The
MPUO decision at this step is final in the Air Force.
(See paragraph 11-7.)
b. Step 6. Based on the final ratings, or concurrent
with step 5, the MPUO reviews and approves recom-
mendations for the MPCA. The MPUO may approve
the MPCA for dollar amounts up to 5 percent of pay-
able salary but not to exceed $5,000. The MPUO may
recommend an additional amount according to para-
graph 7-4.
c. Step 7. The supporting CCPO will transmit the
final ratings and MPCA amounts by message to servic-
ing CCPOs. The supporting CCPO will also send to the
servicing CCPOs any AF Forms 860 and 1001 that were
changed by decision of the MPUO. (If change did not
occur, the form need not be returned, since the servicing
CCPO has the original.)
4. 16 August to 1 September:
a. Step 8. The servicing CCPO enters the perform-
ance ratings into PDS-C no later than 31 August using
1 September as the effective date.
b. Step 9. The servicing CCPO sends the AF Form
1001 with approved or recommended MPCAs to the
base Incentive Awards Committee, if necessary.
5. 2 September to 14 September:
a. Step 10. On a date set by AFMPC and announced
with instructions in an AFMPC PDS-C notice, all
servicing CCPOs update and enter all QM records into
PDS-C. The records are transmitted through PDS-C to
the supporting CCPOs for merit pay computation (step
15).
b. Step 11. The servicing CCPO sends the approved
AF Form 860 through the reviewing official to the rat-
ing official.
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56 AFR 40-452 1 July 1984
c. Step 12. The rating official obtains the employee's
signature on the form, keeps one copy, gives the em-
ployee one copy, and sends the original to the servicing
CCPO. The CCPO files the form according to the
guidelines in chapter 12.
6. 15 to 30 September:
a. Step 13. When received from OPM, HQ USAF/
MPKE sends merit pay computation tables to
MAJCOMs and all CCPOs.
b. Step 14. The supporting CCPO computes merit
pay through PDS-C for the supported MPU.
c. Step 15. On a date set by AFMPC and announced
with instructions in an AFMPC PDS-C notice, the
supporting CCPO sends the data to AFMPC:
(1) MPUID (6-digit code).
(2) Merit pay pool amount.
(3) Merit pay share value amount by grade and rat-
ing.
The above information is used to set up a central table
for each MPU in the Air Force.
7. 1 to 15 October:
a. Step 16. The servicing CCPO processes the per-
sonnel actions awarding merit pay effective the first pay
period after 1 October. MPCAs will be processed
following the merit pay determination. Copies of the
SFs 50, Notification of Personnel Action, are sent to the
payroll office and GM employees.
NOTE: The above dates are approximate. The specific
timing of all PDS-C actions relating to entering ratings
and computing merit pay will be provided to
MAJCOMs and CCPO by AFMPC or HQ USAF/
MPKE. If delay occurs, step 16 will be accomplished no
later than 31 December with the merit pay increase retro-
active to the step 16 effective date.
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AFR 40-452 1 July 1984
Chapter 12
RECORDKEEPING
12-1. Documentation and Location:
a. The AF Form 860 will be used to document criti-
cal and noncritical performance elements, set perform-
ance standards, assign ratings and record employee ac-
knowledgement. The form will be kept by the rating
official with the AF Form 971 until the appraisal period
is over, ratings are assigned, and the form is completed.
b. The original copy of the AF Form 860 will be
handcarried or sent in a sealed envelope to the CCPO
not later than 45 days after the end of the appraisal
period.
c. AF Form 860, completed by a detail or temporary
promotion supervisor, will be handcarried or sent in a
sealed envelope to the rating official not later than 30
days following the employee's temporary assignment or
the end of the appraisal period, whichever is earlier.
d. The rating official will give a copy of the AF
Form 860, upon request, to the rated employee, and will
retain a copy.
e. The CCPO will keep the forms in separate em-
ployee performance files in cabinets or other containers
dedicated to that purpose; in sealed envelopes on the left
side of the official personnel folder; or as otherwise
directed by OPM regulations dealing with the retention
of performance documents (5 CFR 293), (5 CFR 294),
and (5 CFR 297).
12-2. Retention of Records in the CCPO:
a. Performance appraisals and supporting documents
are retained for 3 years from the date of appraisal.
Official record copies of these forms will be maintained
in the CCPO.
b. Performance appraisals superseded through an
administrative, a negotiated, a quasijudicial, or a judicial
proceeding are destroyed upon receipt of the final deci-
sion, or as soon thereafter as practical. This includes
both paper and automated records.
c. Performance appraisals reflecting unacceptable
able performance.
are destroyed.
Both paper and automated records
d. Where any performance-related document is
needed in connection with an ongoing administrative,
negotiated, quasijudicial, or judicial proceeding, and it
continues to be retained in the Employee Performance
File System Records under OPM/GOVT-2, instead of a
separate file, it may be retained as long as necessary
beyond 3 years. It is destroyed when the proceeding it
supports is finally concluded.
e. When an employee is appointed to an SES position
in the Air Force or leaves the Air Force for any reason,
the form will be kept for not longer than 1 year.
12-3. Disposition of Records:
a. Destruction of records will be by shredding or
burning. When an employee is transferred to another
agency, the AF Form 860 will not be sent to the
National Personnel Records Center. When an employee
is assigned to another location in the Air Force, the
CCPO master file record set of the employee per-
formance file is transferred to the gaining office.
b. When an employee is assigned to another position
at the same activity, the rating official's copy of the AF
Form 860 will be sent to the gaining rating official in a
sealed envelope along with the AF Form 971.
NOTE: This chapter is based on numerous OPM
bulletins and related correspondence along with the
General Personnel Records System (OPM/GOVT 1)
and the Employee Performance File System (EPFS)
(OPM/GOVT 2). Detailed guidance on the total EPFS
system of records has been provided by separate
issuance. Accordingly, this chapter is subject to final
OPM regulations, when issued.
OFFICIAL CHARLES A. GABRIEL, General, USAF
Chief of Staff
JAMES H. DELANEY, Colonel, USAF
Director of Administration
performance, where a notice of proposed demotion or
removal is issued, but not effected are destroyed within
30 days after the employee completes 1 year of accept-
SUMMARY OF CHANGES
This publication implements the performance management concept (para 1-2), and the pay-for-performance concept
? (para 1-3); explains differences in employee coverage (para 1-6b and atch 1); implements a single appraisal form (para
2-1); establishes an initial 90-day appraisal period (para 2-2); sets up two annual appraisal cycles (para 2-3); adds new
requirements regarding supervisory safety and health responsibilities (para 2-9c); adds new requirements on critical
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performance elements (para 2-10); adds additional requirements regarding the quality control review (para 2-13);
explains how ratings on work behavior must relate to ratings on performance (para 2-19); explains the requirement to
appraise work behavior and how the rating is used (paras 2-17 through 2-30); clarifies the separate probation
required for new supervisors and managers (para 4-2); implements new guidance on dealing with performance prob-
lems (chap 5); establishes a new cash award for GM employees (para 7-4); authorizes a quality step increase only for
superior ratings (para 7-5a); establishes a 1 percent of salary minimum for the SSPA and MPCA (fig 7-1, table 4);
and, changes recordkeeping requirements (chap 12).
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AFR 40-452 Attachment 1
1 July 1984
S
and Pay
Status
ance Work
Plan
WGI
QSI
Cash
Award
Honorary
Awards
Monetary
Awards
Federal
Awards
Service
Awards
Panama-Non-US Citizens
Yes16
No
No
Yes
Yes
Yes
Yes
Yes
Consultants and Experts
Detailees
No
Yes
No
Yes
No
No
No15
Yes
Yes
Yes
Yes
Yes
Yes2
Yes2
No
Yes
Excepted Service (without
time limitation)
Executives
Career SES
Non-career SES
Non-SES
Federal Wage System
(FWS) (without time
limitation)
Temporary-120 days or
less
Temporary-121 days or
longer
Foreign National (Direct
Hire)
General Schedule (without
time limitation)
Temporary-120 days or
less
Temporary-120 to 365
days
Temporary-longer than
1 year
General Manager (not
limited to 120 days or
less)
Yes17
No
No
Yes
Yes
No
Yes
No
Yes
No
Yes
Yes
Yes
Yes17
No
No
Yes
Yes
Yes
Yes
No
Yes
No
No
Yes
No
Yes 17,18
No
No
Yes5
No
No
No
No
Yes
No
No
Yes
No
Yes
Yes11
Yes]
Yes5
Yes
Yes10
Yes10
Yes
Yes
Yes10
Yes10
Yes10
Yes4
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes2
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes2
Yes2
Yes2
Yes2
No
Yes2
Yes2
Yes2
No
Yes2
Yes2
Yes2
Yes
Yes
Yes
Yes5
Yes
No
Yes
Yes
Yes
No
Yes
Yes
Yes
?
Intermittent
IPA20 Assignment
Yes18
Yes3
Yes3
Yes
Yes
Yes
Yes2
Yes
Federal Employee
Non-Federal Employee
Maximum salary12
Maximum rate of the
grade
At statutory pay limit
Nonappropriated Fund
Oversea Limited
GS-Indefinite
appointment
FWS-indefinite
appointment
Part-time Permanent
Presidential Intern
IB
Yes
Yes18
No
Yes
Yes
No
Yes17
Yes17
Yes
Yes
3
Yes
Yes3
No
No
Yes13
Yes14
Yes17
Yes17
Yes
Yes
Yes
No
No
No
Yes13
Yes14
Yes17
Yes17
Yes
Yes
6
No
No7
Yes
Yes
Yes
'i es14
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes14
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes14
Yes
Yes
Yes
Yes
Yes2
Yes2
Yes2
Yes2
Yes2
No
Yes2
Yes2
Yes2
Yes2
Yes
No
Yes
Yes
Yes?
Yes14
Yes
Yes
Yes
No
1
Private Citizen
Scientific and Professional
Personnel 5 U.S.C.
No
Yes
No
No
No
No
No
Yes
Yes]
Yes
No
Yes
No
Yes2
No
Yes
3104
Reemployed Annuitants
Summer Employee
TAPER
Term Appointment longer
than 1 year
Yes18
No
Yes
Yes17
No8
No
Yes
Yes17
No8
No
Yes3
Yes19
Yes
Yes9
Yes10
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes2
Yes2
Yes2
Yes2
Yes
No
Yes
No
Veterans Readjustment
Appointment
Youth and Student Em-
ployment Program
Co-op Student
Yes17
Yes17
Yes17
Yes17
Yes 17,19
Yes
Yes
Yes
Yes
Yes
Yes
Yes2
Yes2
No
No
No
Federal Junior Fellowship
Yes17
Yes17
Yes17,19
Yes
Yes
Yes
Yes2
No
Stay-in-school
Yes17
Yes17
Yes17,19
Yes
Yes
Yes
Yes2
No
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AFR 40-452 Attachment 1 1 July 1984
NOTES:
1. Under separte authority (AFR 900-48).
2. If qualified as outlined in sponsor's criteria.
3. Unless appointment is limited (for example, not to exceed 1 year).
4. Normally, the SSPA would not be granted if the individual has
received other cash recognition for performance that adequately
recognized the same contribution.
5. Except those appointed by and with the advice and consent of the
Senate.
6. Yes, if the contribution substantially benefits the Federal govern-
ment.
7. Yes, if the person is serving under a temporary appointment in the
Federal government.
8. Normally employed on a temporary basis. However, QSIs may be
granted to those serving unlimited appointments under an OPM excep-
tion (FPM 300, Subchapter 7-5(b)).
9. Amount of an SSPA prorated according to time worked.
10. Provided the individual otherwise satisfies criteria for the specific
cash award for which recommended.
11. Special act or service only for achievements outside job respon-
sibilities.
12. As defined by 5 U.S.C. 5102(c)(25). Positions for which rates of
basic pay are individually fixed or expressly authorized to be fixed, at
or in excess of the maximum rate for GS18.
13. A WGI and QSI may be recommended and approved but may not
be effective until the maximum salary limitation is raised.
14. Authorized under AFR 40-7. Honorary awards for
nonappropriated fund personnel are processed according to procedures
outlined in this regulation.
15. Can only receive monetary recognition if they meet the definition
of an employee under 5 U.S.C. 2105.
16. Only Part I of AF Form 860 is completed for these employees.
17. For temporary limited appointments, follow temporary GS or
FWS rules, as appropriate.
18. If number of workdays exceed 120 in a calendar year, otherwise
no.
19. No, if serving in a FWS position.
20. IPA = Intergovernmental Personnel Act.
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Arx 4U-40L Attachment l 1 July 19N54
Average Adjustment-The share value for the employees
of a designated merit pay unit in the same grade level
who have received Fully Successful ratings. There will
be an average adjustment figure for each grade level
represented in a merit pay unit each year.
Central Tables-Personnel Data System-Civilian
(PDS-C) tables as used in this regulation, are those that
contain merit pay salary adjustment information and the
Merit Pay Unit Identifier Codes.
Comparability Adjustment-The annual comparability
adjustment in the pay rates of the General Schedule
authorized by the President according to 5 U.S.C. 5305.
For GM employees, at least one-half of the comparabil-
ity adjustment is guaranteed.
Comparably Situated Employees-GM employees of a
designated merit pay unit serving at the same grade level
and same location in the pay range.
Congressional Pay Ceiling-A maximum salary limitation
imposed by the Congress.
Critical Element-A performance element of an em-
ployee's job of sufficient importance that performance
below the minimum performance standard established by
management requires remedial action and denial of merit
pay or a within-grade increase, and may be the basis for
removing, reassigning, or demoting the employee, with-
out regard to performance on other performance ele-
ments.
Endorsing Official-An additional higher level of review
that is normally reserved for Air Force Career Pro-
grams. The specific use in career programs is specified
in AFR 40-110. Any other use of the endorsing official
must receive specific approval at MAJCOM level.
Excellent Rating-The overall performance rating as-
signed when an employee exceeds more than one-half of
the critical performance elements and meets all other
performance elements.
Federal Wage Systems (FWS)-A statutory pay system
covering employees in trades and crafts positions.
Fully Successful Rating-The overall rating assigned
when an employee meets the requirements of all the
performance elements of the performance plan. It is
based on demonstrated fully successful performance.
For within-grade increase purposes, fully successful
equates to satisfactory performance for an FWS em-
ployee and acceptable level of competence performance
for a GS employee.
General Manager (GM)-A term applicable to employees
at grades 13, 14, and 15 who are covered by the Merit
Pay System. GM employees are also referred to as
merit pay employees.
General Schedule (GS)-A statutory pay system covering
employees in clerical, administrative, technical, and
professional positions.
Management Official-Any employee in grades GM-13,
14, or 15, in a position the duties and responsibilities of
which require or authorize the individual to formulate,
determine or influence the policies of HQ USAF,
MAJCOMs or comparable command level organizations,
installations, or any subdivision thereof.
Merit Pay Determination-A decision based on a per-
formance appraisal rating which determines eligibility or
ineligibility for a merit pay increase.
Merit Pay Fund-The total of all Air Force funds avail-
able for merit pay increases based on: (1) the number of
employees in merit pay positions, their grade and posi-
tion in the rate range; (2) a portion of the annual
comparability adjustment as established each year by
OPM; and (3) the estimated within grade increases and
quality step increases which would have been paid to
the employees had they not been covered by the Merit
Pay System.
Merit Pay Increase-A GM employee's share of the
merit pay pool based on the employee's performance and
the composition of the merit pay unit.
Merit Pay Pool-An aggregate amount of money
computed based on the merit pay unit employees' basic
rates of pay and dollar amounts found in the (OPM)
Merit Pay Fund Computation (MPFC) Table. This
table is published by OPM each year.
Merit Pay Share Points-A numerical value based on
the grade and the overall performance rating which is
used as a multiplier in determining the merit pay share
for a GM employee.
Merit Pay Share Value-The dollar amount computed
by dividing the merit pay pool by the merit pay share
points of all employees in a merit pay unit. This process
is repeated, as necessary, until the merit pay pool is
expended.
Merit Pay System-A salary system for supervisors and
management officials in classification act positions in
grades 13 through 15 that grants pay adjustments in
varying amounts based on appraisals of performance.
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AFR 40-452 Attachment 2 1 July 1984
Merit Pay Unit (MPU)-A group of General Manager
(GM) employees in a designated unit who share in the
distribution of a merit pay pool.
Merit Pay Unit Identifier (MPUID)-A data element
code in the Personnel Data System-Civilian (PDS-C)
which is used to identify each merit pay unit.
Merit Pay Unit Official (MPUO)-The individual who is
charged with the responsibility of overseeing administra-
tion of the Merit Pay System for a particular merit pay
unit.
Minimally Acceptable Rating-The overall rating as-
signed when an employee meets the requirements of all
critical performance elements of the performance plan,
but does not meet the requirements of one or more
noncritical performance elements.
Noncritical Element-A performance element not des-
ignated as critical but that is an important part of the
position and is considered in determining the overall
performance level. Performance below the minimum
standard established by management requires counseling
and denial of merit pay or within-grade increases and
denial for merit promotion consideration.
Opportunity Period-The period of time following noti-
fication of unacceptable performance during which the
employee is given the opportunity to demonstrate
acceptable performance before a decision on whether to
propose demotion or removal.
Payable Salary-For any pay system, the rate of pay
fixed by law or administrative action, including a
retained rate of pay, for the job or position held by an
employee before any deductions and exclusive of addi-
tional pay of any kind, limited to the rate payable for
Level V of the Executive Schedule.
Performance Appraisal-A systematic comparison of an
employee's performance of duties and responsibilities
with performance standards.
Performance Element-A significant job requirement,
derived by analysis of the job. A performance element
may be an important duty or responsibility of the posi-
tion, or it may be a specific project or task consistent
with or directly drawn from the duties and respon-
sibilities in the position description.
Performance Plan-The written performance elements
and standards developed for the employee and docu-
mented on AF Form 860, Part I.
Performance Requirement-The aggregate of the per-
formance standard(s) set for a performance element.
Performance Standard-A description of the minimum
level of accomplishment necessary for fully successful
performance. Performance standards are expressed in
terms of qualitative or quantitive objectives, specific
actions, project assignments, or other requirements
related to job performance elements. There may be
more than one standard for a single performance ele-
ment.
Personnel Data System-Civilian (PDS-C)-The Air
Force automated multilevel civilian personnel manage-
ment data system.
Quality Step Increase-An additional within-grade in-
crease granted to a General Schedule employee under 5
U.S.C. 5336 in recognition of sustained high quality
performance, above that ordinarily found in the
employee's position, and which substantially exceeds
fully successful performance.
Rate Range-The span of rates between the minimum
and maximum rates of a grade on the General Schedule.
Rating Official-The supervisor who evaluates the per-
formance of an employee and who assigns the rating.
This is the employee's first level, immediate supervisor
of record.
Reconsideration Official-An official at or above the
reviewing official level who reconsiders a decision to
withhold an employee's within-grade increase and who
sustains or reverses that decision.
Relative Position in the Rate Range-A rate range con-
sists of three bands. The lower band of the range for
each grade extends from the minimum rate of the grade
to $1 less than the General Schedule rate for step 4 of
the grade inclusive; the middle band extends from the
General Schedule rate for step 4 of the grade to $1 less
than the General Schedule rate for Step 7 of the grade,
inclusive; and the upper band extends from the General
Schedule rate for step 7 of the grade to the maximum
rate of the grade, inclusive. An employee's position in
the rate range is determined by the location of his or her
existing rate of basic pay on the existing General
Schedule. Employees within the same band occupy the
same relative position in the rate range.
Reviewing Official-Normally, the supervisor in the
chain-of-command at the next higher level above the rat-
ing official. However, a supervisor above that level may
serve as the reviewing official. If the immediate supervi-
sor is the highest level in the chain-of-command at the
installation, generally he or she will also serve as the
reviewing official.
Superior Rating-The overall performance rating as-
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signed when an employee exceeds all of the performance
elements of the performance plan.
Supervisor-As defined in 5 U.S.C. 7103(a)(10), an em-
ployee with authority to hire, direct, assign, promote,
reward, transfer, furlough, layoff, recall, suspend, disci-
pline or remove employees.
Supporting CCPO-A servicing CCPO that is collocated
with and assists a Merit Pay Unit Official.
Unacceptable Rating-The overall rating assigned when
an employee does not meet the requirements of one or
more critical performance elements of the performance
plan.
Within-Grade Increase-A periodic increase in an em-
ployee's rate of basic pay from one step of the grade of
his or her position to the next higher step of that grade
according to 5 U.S.C. 5335.
Declassified and Approved For Release 2012/10/04: CIA-RDP90-0053OR000400690007-1