SECTION 260:35-5-3. Unit incentive pay

(a)   Definition. A unit incentive pay award is a cash award made to the employees of a participating agency, commission, office or department who upon determination of the Committee, has reduced its unit dollar cost of operations or increased its level of services in the eligible fiscal year. The award shall consist of 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. The amount awarded shall be divided and distributed in equal shares to the employees of the agency, department, commission, or office except that employees who have worked for the agency, department, commission, or office 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, or office. Employees voluntarily leaving the employment of state government or employees dismissed for cause shall forfeit their share. [74:4119]

(b)   Eligibility of units to participate. With the exception of agencies and offices within the Legislature, the Office of the Governor, the Office of the Lieutenant Governor, and the Office of the State Auditor and Inspector, any agency, department, commission, or office of state government may participate in the unit incentive pay program. [74:4114]

(c)   Eligibility of units to receive unit incentive pay. To qualify for the award of unit incentive pay to its employees, an agency, department, commission, or office shall demonstrate to the satisfaction of the Committee that said agency, department, commission, [or] office . . . has met both of the following two criteria in its operations during the fiscal year, after adjustment for inflation or deflation:

(1)   Operated at a lower unit cost. "Unit cost" shall be defined as expenditures in dollars to complete a measurable unit of work.

(A)   For first-time participants the unit cost for the participating year shall be compared to either the unit cost for the immediately preceding fiscal year or a standard unit cost approved by the Committee, or

(B)   For participants with one or more years in the program, the unit cost for the participating year shall be compared to either the average unit cost of prior successful participating years in the program or a standard unit cost approved by the Committee; and

(2)   Operated at no greater total dollar expenditures, except:

(A)   In a case where unit costs are reduced but total expenditures increased due to the agency or office maintaining its level of service; or

(B)   In a case where the Legislature or department head specifically mandates an increase in the workload. [74:4118]

(d)   Possible areas of award. The Committee will consider but is not limited to the considering as legitimate savings those reductions in expenditures made possible by such items as the following:

(1)   Reductions in overtime; [74:4118(C)(1)]

(2)   Elimination of consultant fees; [74:4118(C)(2)]

(3)   Less temporary help; [74:4118(C)(3)]

(4)   Elimination of budgeted positions; [74:4118(C)(4)]

(5)   Improved methods of communication; [74:4118(C)(5)]

(6)   Improved systems and procedures; [74:4118 (C)(6)]

(7)   Better development and utilization of manpower; [74:4118(C)(7)]

(8)   Elimination of unnecessary travel; [74:4118(C)(8)]

(9)   Elimination of unnecessary printing and mailing; [74:4118(C)(9)]

(10)   Elimination of unnecessary payments for advertising, memberships, dues, and subscriptions; [74:4118(C)(10)]

(11)   Elimination of waste, duplication, and operations of doubtful value; [74:4118(C)(11)]

(12)   Improved space utilization; [74:4118(C)(12)]

(13)   Proven cost-reduction techniques; [74:4118(C)(13)]

(14)   Any other items considered by the Committee as representing true savings. [74:4118(C)(14)]

(e)   Causes for denial of award. The Committee shall satisfy itself that the claimed unit dollar cost of operation is real and not merely apparent, and that it is not, in whole or in part, the result of any of the following:

(1)   A lowering of the level or quality of the service rendered; [74:4118(B)(1)]

(2)   Reduced pass-through on transfer expenditures; [74:4118(B)(2)]

(3)   Receipts realized in excess of amounts budgeted; [74:4118(B)(3)]

(4)   Nonrecurrence of expenditures which were single outlay, or one-time expenditures, in the preceding fiscal year; [74:4118(B)(4)]

(5)   Failure to reward deserving employees through promotions, reclassification, award of merit salary increments, or salary increases authorized by salary range revisions; [74:4118(B)(5)]

(6)   Postponement of normal purchases and repairs to a future fiscal year; [74:4118(B)(6)]

(7)   Stockpiling inventories in the immediately preceding fiscal year so as to reduce requirements in the eligible fiscal year; [74:4118(B)(7)]

(8)   Substitution of federal funds or any funds which are not state funds for state appropriations; [74:4118(B)(8)]

(9)   Unreasonable postponement of payments of accounts payable until the fiscal year immediately following the eligible fiscal year; [74:4118(B)(9)]

(10)   Shifting of expenses to another agency, department, commission, or office of government; [74:4118(B)(10)]

(11)   Any other practice, event, or device which the Committee decides has caused a distortion which misrepresents that a savings or increase in level of services has occurred. [74:4118(B)(11)]

(f)   Funding. Unit incentive pay shall be drawn from the accrued savings in the operating expenses of the agency, department, commission, or office for the eligible fiscal year. Incentive pay awards 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 the state. [74:4119]

[Source: Added at 31 Ok Reg 1353, eff 9-12-14]