Annual salaried employees with 20 pay periods of creditable service at a salary within two percent of the job rate or above the job rate in the 12 months preceding July 1st, and who are assigned overall ratings of “Highly Effective,” “Outstanding” or their equivalent, are eligible to receive performance awards or merit payments. For those employees M/C 17 and below with five or more years of continuous service at or above the job rate, eligibility for the 5- and 10-year longevity performance awards will be determined based on the employees' status and service credit on the March 31st preceding the July 1st rating. Employees whose positions are unallocated but are equated to salary grades or whose job rates are otherwise established by the Director of the Budget shall be eligible for performance award payments.

Eligible employees will receive lump sum performance award and merit payments as soon as practicable based on evaluations due July 1st.

Each agency will be assigned amounts which will be the maximum amount that may be granted to eligible employees as a result of performance awards, longevity performance awards and merit payments. These amounts will be based on the actual number and salary grades of eligible managerial/confidential employees and will be assigned by the Director of the Budget. These amounts may be assigned on a facility or payroll code basis, as appropriate.

Longevity performance awards are either lump sum payments or increases to salary for those employees with 5 or more and 10 or more years of service at or above the job rate. All eligible employees who have been rated at least “Effective” or its equivalent will receive these awards.

Sufficient amounts for merit payments will be assigned to agencies so that 30 percent of the employees eligible can receive payments at the midpoint of the merit range. Although an agency may pay additional awards by concentrating merit payments toward the minimum level of the range, no more than 40 percent of those eligible may receive merit payments, regardless of the amount of the individual payments. A sufficient amount will also be assigned to provide performance awards for 40 percent of those eligible. If more than 40 percent of the eligible employees receive ratings of “Highly Effective,” “Outstanding” or their equivalent, the agency shall develop criteria to determine who shall receive the awards and merit payments. Performance awards, longevity performance awards and merit payments will be paid in accordance with the following schedules:

(f) Eligible employees within two percent of the job rate for their grade who are granted awards will first receive an increase in their annual salary to bring them to the job rate. Such increase will be deducted from the award amount with any balance payable in the form of a performance award.