101 Kar 2:120. Incentive Programs

Link to law: http://www.lrc.ky.gov/kar/101/002/120.htm
Published: 2015

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      101 KAR 2:120. Incentive programs.

 

      RELATES TO: KRS 18A.202, 199.555(1)

      STATUTORY AUTHORITY: KRS 18A.030(2),

18A.110(1)(d), 18A.202(1)

      NECESSITY, FUNCTION, AND CONFORMITY: KRS

18A.110(1)(d) requires the Secretary of Personnel to promulgate administrative

regulations to implement work-related incentive programs for state employees.

KRS 18A.202 authorizes the secretary to establish work-related incentive

programs for state employees. This administrative regulation establishes the

requirements for an employee suggestion system incentive program and a state employee

adoption benefit program.

 

      Section 1. Employee Suggestion System.

(1) Administration. An employee with status in the classified service or an

employee governed by KRS Chapter 16 may be recognized and rewarded for

submitting a suggestion that results in the improvement of state service or in

the realization of financial savings by the state.

      (a)1. The employee suggestion system

council, headed by the chairperson designated by the Secretary of Personnel,

shall:

      a. Ensure proper evaluation of each

suggestion;

      b. Review and act upon, by approval or

denial, a suggestion presented to the council by a cabinet or agency; and

      c. Reconsider denials as set forth in

subsection (4) of this section.

      2. A designated coordinator may present

recommended suggestions to the council and request that the council vote on

suggestions.

      3. The council may defer action for up to

one (1) year and one (1) month pending documentation of cash savings.

      4. The council shall receive

administrative support from the Personnel Cabinet.

      5. The council shall prepare an annual

report to be submitted to the Secretary of Personnel that shall include the

number of suggestions received and the status of each suggestion.

      6. The council shall meet:

      a. At a minimum on a quarterly basis; or

      b. Upon the request of the council

chairperson or a majority of the coordinators.

      (b) Each cabinet secretary or agency head

shall designate, in writing, the appointment of a coordinator who shall also

serve on the council. The coordinator shall receive suggestions and establish

and maintain internal procedures to ensure appropriate evaluation of

suggestions.

      (c) The coordinator shall present

suggestions recommended for approval by the cabinet or agency to the council

for consideration.

      (2) Eligibility.

      (a) A suggestion shall be a positive idea

which:

      1. Explains how to improve methods,

equipment or procedures;

      2. Reduces time or cost of a work

operation;

      3. Creates a safer work environment;

      4. Increases revenue; or

      5. Improves relationships with or

services for the public.

      (b) The suggestion shall:

      1. Present an improvement in state

service or function;

      2. Explain how the change would be

accomplished;

      3. Define what benefits would be realized

by the state, particularly in terms of efficiency, effectiveness, safety,

economy, conservation of energy resources, or public relations;

      4.a. Be made by an employee to the

employee’s cabinet or agency; or

      b. Be forwarded from other coordinators

if the suggestion affects the coordinator’s agency;

      5. Within ninety (90) working days of

implementation by the agency, be:

      a. Submitted on the Employee Suggestion

Form, P-35; and

      b. Accompanied by exhibits or

illustrations as needed;

      6. Be practical, useful, and

constructive; and

      7. Be eligible for an award only after

legislative action or administrative regulation changes, if required, have been

completed which shall be the responsibility of the agency that desires to

implement the suggestion.

      (c) The following suggestions shall not

be eligible for a cash award:

      1. A suggestion that falls within the

scope of the duties of the suggester and which the suggester has the authority

to initiate or implement without other administrative approval. "Scope of

duties" shall include a specific set of tasks as set forth in the position

description of the suggester upon submission of the suggestion;

      2. A suggestion related to a particular

problem given to an employee to solve within the scope of the employee’s duties

and responsibilities;

      3. A suggestion made by a member of the

council, a cabinet, or agency suggestion review committee;

      4. A suggestion which includes a proposal

to perform routine maintenance operations or follow manufacturer's

recommendations;

      5. A suggestion to make a change which

has been documented in writing as already under consideration by those

administratively responsible; or

      6. A suggestion which corrects an error

or condition that exists because established procedures were not followed.

      (d) If more than one (1) suggester makes

significant contributions to the idea, the suggestion may be submitted jointly,

and an award granted shall be divided equally between or among the suggesters.

      (e)1. The first suggestion received shall

take precedence over all future suggestions having the same purpose.

      2. If two (2) or more similar suggestions

are received on the same day, an award granted shall be divided equally between

or among the suggesters.

      (f) A suggestion shall be considered a

confidential communication among the suggesters and the employees and officers

whose responsibility it is to process, investigate, review, or evaluate suggestions.

      (3) General provisions.

      (a) The cabinet or agency head shall

establish an internal system for receipt, evaluation, and reconsideration of

employee suggestions. This system shall, at a minimum, include the following:

      1. A method to notify the suggester in

writing that the suggestion has been received and to notify the suggester in

writing of a change in the status of the suggestion;

      2. A method to document the original

suggestion, evaluation, and action taken; and

      3. A method to prepare and present

documentation of a suggestion for recommendation to the council.

      (b)1. Eligibility of a suggestion shall

be evaluated according to the circumstances existing upon submission of the

suggestion.

      2. An evaluation shall be completed by a

person with expertise in the area under consideration.

      3. The results of the evaluation shall be

recorded on the Evaluation of Employee Suggestion Form, Form P-36, and the form

shall be dated and signed by the individual making the evaluation.

      (c)1. The suggester shall be notified in

writing of the disposition of the suggestion within ninety-five (95) calendar

days of receipt by the coordinator.

      2. If all parties involved agree, an

extension of time shall be granted if extenuating circumstances exist.

      3. A suggestion shall be considered to be

active and eligible for an award until the suggester is notified in writing

that the suggestion has been approved or denied.

      4. If a suggestion will not be

implemented, the coordinator shall notify the suggester in writing stating the

reason it was not implemented.

      5.a. If an eligible suggestion is not

adopted and conditions under which it was originally considered have changed,

the suggester may request reevaluation by the cabinet or agency.

      b. The request shall:

      (i) Be in writing;

      (ii) Be evaluated by the next level of

supervision;

      (iii) Be received by the agency within

one (1) year from the date of rejection; and

      (iv) Include information regarding the

change in conditions.

      (d) If a suggestion is approved and

implemented by the cabinet or agency, the suggester's coordinator shall

recommend approval of the suggestion to the council.

      1. The recommendation shall contain:

      a. The suggestion as completed by the

suggester on the Employee Suggestion Form, P-35;

      b. The evaluation forms completed

according to the criteria set forth in this administrative regulation; and

      c. A statement of actual or projected

cost savings using generally accepted accounting principles.

      2. Upon receipt of the council's

decision, the chairperson of the council shall send written notification of the

council's action to the suggester's coordinator and the coordinator shall then

provide written notification to the suggester regarding the decision.

      3. If an eligible suggestion is denied by

the council, the suggestion shall remain on active file with the council for a

period of one (1) year from the date of denial.

      (e) Award of cash payment shall be in

accordance with KRS 18A.202.

      1. The cash payment shall be calculated

based upon the amount saved over the period of one (1) year minus

implementation costs and shall be determined according to generally accepted accounting

principles.

      2.a. The award check shall be issued by

the agency where the suggester is employed.

      b. Funds for payment shall come from the

agency or agencies implementing the suggestion.

      c. If applicable the agency issuing the

check may interaccount other agencies implementing the suggestion for a

proportionate share of the total award amount.

      3.a. If a suggestion may result in

financial savings to the state and proper documentation of cost savings has not

yet been obtained, the council shall request that each agency implementing the

suggestion maintain records which document the cost savings for a period not to

exceed one (1) year from the date of implementation.

      b. Documentation shall be conducted

according to generally accepted accounting principles.

      c. This cost savings analysis shall be

forwarded by the coordinator to the council chairperson within thirty (30) work

days of completion of the analysis.

      (f)1. If a suggestion has been approved

by the council and has resulted in a financial savings to the state, the

suggester shall be compensated in an amount of ten (10) percent of the amount

saved over one (1) calendar year, with a minimum of $100 and a maximum of

$2,500.

      2. If a suggestion approved by the

council results in an intangible improvement in state service, the suggester

shall be compensated in the amount of $100.

      3. Upon the suggester's receipt of

compensation, the suggestion shall become the property of the state.

      (4) Reconsideration.

      (a) A suggester may request

reconsideration of a suggestion that has not received approval from the cabinet

or agency within ten (10) work days of the date that written notice of denial

is received by the suggester.

      (b)1. The suggester shall request

reconsideration in writing and shall set forth the basis for the request.

      2.a. The request shall be filed with the

coordinator within ten (10) days of the date of the denial.

      b. If the tenth day falls on a day that

the cabinet or agency office is closed during regular work hours, the request

may be filed on the next work day.

      (c) Within thirty (30) work days, the

cabinet or agency shall act on the request for reconsideration and notify the

suggester in writing of the reason for the decision.

      (5) Council review.

      (a)1. A suggestion may be reviewed by the

council on its own motion, or upon request of the suggester.

      2. If a suggestion has been reconsidered

and denied by the cabinet or agency, the suggester may request a review by the

council.

      a. The suggester shall request review

within thirty (30) days of receipt of the written notification of the outcome

of the reconsideration and shall set forth in writing the basis for the

request.

      b.(i) The request shall be filed in the

office of the employee suggestion system chairperson within the thirty (30) day

period.

      (ii) If the 30th day falls on a day that

the chairperson's office is closed during regular work hours, the request may

be filed on the next work day.

      (b) The council shall complete the review

within ninety (90) calendar days of the date that the chairperson receives the

request for review.

      (c) The council chairperson shall notify

the agency head of the council's findings and its recommendation concerning the

suggestion's implementation or denial.

 

      Section 2. Adoption Benefit Program. (1)

A state employee who finalizes a legal adoption procedure for the adoption of a

child, other than the child of a spouse, on or after November 1, 1998, shall be

eligible to receive reimbursement for actual costs associated with the adoption

of a special needs child, as defined by KRS 199.555(1), or any other child.

Total state funds for this program shall not exceed $150,000 in a fiscal year.

      (2) The eligible employee shall receive:

      (a) Up to $5,000 in unreimbursed direct

costs related to the adoption of a special needs child; or

      (b) Up to $3,000 in unreimbursed direct

costs related to the adoption of any other child.

      (3) Unreimbursed direct costs related to

the adoption of a special needs child or other child shall include:

      (a) Licensed adoption agency fees;

      (b) Legal fees;

      (c) Medical costs;

      (d) Court costs; and

      (e) Other fees or costs associated with

child adoption in accordance with state and federal law and after review and

approval by the court at the finalization of the adoption.

      (4) Application for financial assistance

shall be made by submitting a completed State Employee Adoption Assistance

Application to the Secretary of Personnel along with documentary evidence of:

      (a) Finalization of the adoption;

      (b) Certification by the Secretary of the

Cabinet for Health and Family Services that the adopted child is a special

needs child, if reimbursement for special needs adoption is sought; and

      (c) A copy of an affidavit of expenses

related to the adoption filed with and approved by the court at the finalization

of the adoption.

      (5) If both adoptive parents are

executive branch state employees, the application for financial assistance

shall be made jointly and the amount of reimbursement shall be limited to that

specified in subsection (2) of this section.

      (6) Upon approval of the application for

financial assistance, the employee’s agency shall dispense funds in the amount

authorized by the Secretary of Personnel.

 

      Section 3. Incorporation by Reference.

(1) The following material is incorporated by reference:

      (a) "Employee Suggestion Form",

P-35, October 2007;

      (b) "Evaluation of Employee

Suggestion Form" Form, P-36, February 2010; and

      (c) "State Employee Adoption

Assistance Application", May 2015.

      (2) This material may be inspected,

copied, or obtained, subject to applicable copyright law, at the Personnel

Cabinet, 501 High Street, 3rd Floor, Frankfort, Kentucky 40601, Monday through

Friday, 8 a.m. to 4:30 p.m. (13

Ky.R. 430; eff. 9-4-1986; Am. 15 Ky.R. 830; eff. 10-12-1988; 26 Ky.R. 101; 573;

eff. 8-25-1999; 34 Ky.R. 614; 964; eff. 12-7-2007; 36 Ky.R. 1516; 2038-M; eff.

4-2-2010; 42 Ky.R. 88; eff. 10-2-2015.)