SB72 Summary

• Authorizes appointing authorities to provide lump sum merit reward payments of up to 2.5% of annual base salary to qualified full-time state employees on their anniversary dates, beginning October 1 following the act's effective date.

• Requires employees to have earned the maximum pay rate in their range for two consecutive fiscal years, met or exceeded annual performance appraisal standards, and to not have received a cost-of-living increase.

• Prohibits payments to employees covered by labor agreements, retired persons, agency heads, deputy heads, unclassified or exempt employees, and those who received pay increases, bonuses, or incentive pay in the previous two years.

• Allows appointing authorities to determine the percentage amount for merit rewards at the beginning of each fiscal year and permits no payments to any qualified employee if insufficient funds exist to pay all qualified employees.

• Specifies that merit reward payments cannot be awarded every year, may not be used to manipulate anniversary dates, and do not count toward retirement salary calculations.