A lump sum may be used in conjunction with a base pay increase, as long as the total Optional Pay dol- lar amount does not exceed the maximum allowed by the rule. However, under no circumstances may the agency award multiple base pay increases that exceed the percentages allowed by the rule. See the following examples for more guidance on these types of situations. • If the employee stops performing the duties, the recurring payments shall be stopped by the agency. Agencies shall ensure that recurring payments are ended if the employee transfers to another agency. Guidelines for Temporary Duties • Lump sum payment of up to 5% • Payment should be commensurate with the time the duties are actually performed • May be granted as a one-time lump sum at the end of the time period the duties were performed or as a recurring lump sum amount during the time period to be dispersed on each paycheck • All calculations for lump sum payments must be based on the employee’s base pay at the time the duties were assigned. Recalculating the lump sum amount to reflect pay increases (i.e. reallocations, market adjustments, etc.) that may occur throughout the duration of the duties is not permitted. • For recurring lump sum amounts, an end date should be established in the payroll system not to exceed a one-year period. o If the recurring payments need to be extended beyond one year, an updated appointing authority approval is necessary. At the time of the reauthorization, the lump sum amount may be recalculated if desired.
The example below illustrates the use of optional pay while adhering to the base pay or lump sum pay- ment of up to 5% within a fiscal year. Additionally, this example illustrates the restriction of an employee receiving no more than 10% in base pay increases for additional duties within three consecutive years.
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Compensation Administration Guide
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