Travel Policy The Board and each Reserve Bank have established guidelines covering reimbursement of expenses to personnel traveling on official business. These guidelines cover both domestic and international travel associated with the conduct of Federal Reserve responsibilities including activities associated with lectures, speaking engagements, and other such appearances. Typically, there are four general categories of expenses that are reimbursable under Federal Reserve travel policies. These categories are described below. Transportation Expenses Reimbursement is made for the cost of commercial transportation to and from the destination and local transportation to the extent necessary. The mode of travel is usually dictated by the destination and/or time constraints. Personal vehicles may be used with prior authorization but must not exceed the cost of commercial transportation. As a general rule, tourist/economy class should be used for all modes of travel by personnel. With regard to international travel, business class accommodations may be used by personnel if the time exceeds five hours, and where available, may be used by members of the Board of Governors, presidents and first vice presidents of the Banks. First class travel will only be permitted in the case of physical impairment or in those circumstances where no other alternative is available. - 2 and should be booked as far in advance as possible to take advantage of special rates. Note: The Board and most Federal Reserve Banks have negotiated standing agreements with local hotels to obtain lower rates. daily rate is paid to the traveler to cover meals, tips, laundry and dry cleaning, and local transportation. The per diem rate for the Board is established based on General Services Administration rates and the Reserve Bank rates are established based on Internal Revenue Code guidelines. A reduced per diem allowance is used when certain expenses such as meals have been covered in fees paid for training and other programs. The per diem rate for travel outside the contiguous United States includes meals, incidental expenses and lodging. These rates are based on the rates issued by the Department of State. Reimbursement of actual cost of meals and incidental expenses is generally limited to foreign travel. Under rare circumstances, reimbursement may be requested for actual expenses associated with domestic travel. incidentals not covered by the per diem allowance. These expenditures may include such items as official telephone calls, postage, and certain transportation expenses between lodging or Cash Award and Incentive-Based Program Policy The Board and the Reserve Banks have designed cash award and incentive-based programs to complement existing salary administration programs and practices. These programs offer a means to provide recognition for short-term performance without a long-term impact on the regular salary administration program. The System does not use geographic differentials. CASH AWARDS Officers and employees at the Board and Reserve Banks, except for the president and first vice president, are eligible for cash award programs, which provide recognition for exceptional achievements and are usually initiated after the accomplishment has been completed. Personnel selected for these awards meet one or more criteria including improvements in productivity and quality of service, exceptional accomplishment in resolving a significant operational problem, meeting objectives when factors were introduced that presented significant challenges, among others. The maximum amount to be allocated for cash awards for employees is up to three quarters of one percent of the eligible employees' salary base. Individual awards should not exceed 10 percent of base salary or $5,000, whichever is higher. The Board's policy limits cash awards to a maximum of 10 percent of Other limitations include restrictions on the number of awards that can be received in a five year period,1 and a limitation of one cash award for the same performance contribution. RESERVE BANK INCENTIVE AWARDS Reserve Banks may establish incentive-based programs for officers that are intended to motivate performance toward the achievement of pre-established measurable goals that are within an individual's or team's control. Achievement of the goals will result in outcomes such as a major contribution to policy initiatives, innovations or improvements leading to cost savings or cost improvements, and completion of assignments that are critical to the success of System or Reserve Bank endeavors. NAXIMUM AWARD LEVELS The maximum total amount to be allocated for Reserve Bank officer cash and incentive awards is established at 1.5 percent of the eligible Reserve Bank officer salary base. of the 1.5 percent, three quarters of one percent could be used to fund cash awards using the same guidelines as for employees. alternatively, the full 1.5 percent could be used to fund or, any individual incentive award may not exceed 20 percent of salary. 1 The Board's policy does not limit the number of awards for |
