IRS Agrees to Pay Employees Bonuses

John Koskinen became IRS commissioner in December. John Koskinen became IRS commissioner in December. J. Scott Applewhite/AP

The Internal Revenue Service will partially reinstate its bonus program to union employees, agreeing to provide reduced awards to avoid litigation.

The National Treasury Employees Union fought for the bonuses, which they said IRS workers already earned and were legally required to receive because of the union’s collective bargaining agreement. NTEU and the IRS agreed to create a bonus pool of 1 percent of bargaining unit salaries, a 39 percent reduction from the original total.

“While this settlement provides an awards pool that is less than the amount called for under the parties’ negotiated agreement, the settlement avoids protracted litigation over the matter,” said NTEU President Colleen M. Kelley.

The bonuses, which the IRS will pay out in the spring, will be based on performance evaluations conducted in 2013 on work beginning in 2012. The 1 percent of salaries’ cap, which the IRS said was the most it could offer based on guidance from the Office of Management and Budget, will create a bonus pool of $43 million. That figure is down from the original total of $70 million.

Kelley said the reduction was tough to swallow, but smaller bonuses now were preferable to waiting for the outcome of the legal proceedings, despite the union’s confidence in its case.

“Payment of these earned awards to employees is in important step in recognizing their valuable contributions to the IRS and the nation,” Kelley said. “The awards are a relatively small amount of money, but they go a long way toward acknowledging the hard work of employees who exceed their performance expectations for the year.”

In September, a third-party mediator upheld then-Principal Deputy Commissioner and the agency’s effective chief Danny Werfel’s decision to cancel the bonuses. John Koskinen became IRS commissioner in December, and Werfel left government shortly thereafter.

The IRS was one of the few agencies to retain a majority of its sequestration cuts in the fiscal 2014 appropriations bill.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Sponsored by Brocade

    Best of 2016 Federal Forum eBook

    Earlier this summer, Federal and tech industry leaders convened to talk security, machine learning, network modernization, DevOps, and much more at the 2016 Federal Forum. This eBook includes a useful summary highlighting the best content shared at the 2016 Federal Forum to help agencies modernize their network infrastructure.

    Download
  • Sponsored by CDW-G

    GBC Flash Poll Series: Merger & Acquisitions

    Download this GBC Flash Poll to learn more about federal perspectives on the impact of industry consolidation.

    Download
  • Sponsored by One Identity

    One Nation Under Guard: Securing User Identities Across State and Local Government

    In 2016, the government can expect even more sophisticated threats on the horizon, making it all the more imperative that agencies enforce proper identity and access management (IAM) practices. In order to better measure the current state of IAM at the state and local level, Government Business Council (GBC) conducted an in-depth research study of state and local employees.

    Download
  • Sponsored by Aquilent

    The Next Federal Evolution of Cloud

    This GBC report explains the evolution of cloud computing in federal government, and provides an outlook for the future of the cloud in government IT.

    Download
  • Sponsored by Aquilent

    A DevOps Roadmap for the Federal Government

    This GBC Report discusses how DevOps is steadily gaining traction among some of government's leading IT developers and agencies.

    Download
  • Sponsored by LTC Partners, administrators of the Federal Long Term Care Insurance Program

    Approaching the Brink of Federal Retirement

    Approximately 10,000 baby boomers are reaching retirement age per day, and a growing number of federal employees are preparing themselves for the next chapter of their lives. Learn how to tackle the challenges that today's workforce faces in laying the groundwork for a smooth and secure retirement.

    Download
  • Sponsored by Hewlett Packard Enterprise

    Cyber Defense 101: Arming the Next Generation of Government Employees

    Read this issue brief to learn about the sector's most potent challenges in the new cyber landscape and how government organizations are building a robust, threat-aware infrastructure

    Download
  • Sponsored by Aquilent

    GBC Issue Brief: Cultivating Digital Services in the Federal Landscape

    Read this GBC issue brief to learn more about the current state of digital services in the government, and how key players are pushing enhancements towards a user-centric approach.

    Download
  • Sponsored by CDW-G

    Joint Enterprise Licensing Agreements

    Read this eBook to learn how defense agencies can achieve savings and efficiencies with an Enterprise Software Agreement.

    Download
  • Sponsored by Cloudera

    Government Forum Content Library

    Get all the essential resources needed for effective technology strategies in the federal landscape.

    Download

When you download a report, your information may be shared with the underwriters of that document.