§ 74-4119. Amount of unit dollar savings - Additional award of incentive compensation - Retirement benefits - Forfeiture of unit share - Funding source.

At the conclusion of the eligible fiscal year, subject to the rules and regulations promulgated by the Committee, the Committee shall compare the unit dollar expenditures for that year of each agency, department, commission, office, or defined work unit or work teams against the base year data and, after making such adjustments as in the judgment of the Committee are required to eliminate distortions, shall determine the amount, if any, that the agency, department, commission, office, or defined work unit or work teams has reduced its unit dollar cost of operations or increased its level of services in the eligible fiscal year.  Adjustments to eliminate distortions may include any legislative increases in employee compensation and inflationary increases in the cost of services, materials, or supplies.  If the Committee shall determine an agency, department, commission, or office qualifies for award, it may award, after consultation with the Office of Management and Enterprise Services, to the employees of that agency, department, commission, office, defined work unit or work teams a sum not in excess of twenty-five percent (25%) of the amount determined to be the total unit dollar savings to the state for the level of services rendered.  Incentive pay awards provided pursuant to the provisions of the Incentive Awards for State Employees Act shall be exempt from retirement contributions and shall not be included for the purpose of computing a retirement allowance pursuant to any public retirement system of this state.  The amount awarded shall be divided and distributed in equal shares to the employees of the agency, department, commission, office, defined work unit or work teams except that employees who have worked for the agency, department, commission, office, defined work unit or work teams less than the full twelve (12) months of the fiscal year shall receive only a pro rata share based on the fraction of the year said employees have worked for that agency, department, commission, office, defined work unit or work teams.  Employees voluntarily leaving the employment of state government or employees dismissed for cause shall forfeit their share.  Funds for this incentive pay shall be drawn from the operating expenses of the agency, department, commission, or office for the eligible fiscal year.  No nominations for a unit incentive compensation award shall be made until the nominating agency, department, commission, or office assures that funds for said award are available.  Funds for the payment of unit incentive compensation awards shall be considered encumbered to the extent said awards are approved by the Committee.

Added by Laws 1984, c. 269, § 9, operative July 1, 1984.  Amended by Laws 1985, c. 46, § 9, emerg. eff. April 23, 1985; Laws 1992, c. 126, § 2, eff. July 1, 1992; Laws 2012, c. 304, § 1016.