Weekly Updates

August 2025 Newsletter

August 15, 2025

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August 2025 NEWSLETTER

Summary of OPM Memorandum of Understanding (MOU) on Awards and Performance Management

To support President Trump’s initiative to create a high-performance Federal workplace where exceptional contributions are recognized and rewarded, the U.S. Office of Personnel Management (OPM) has issued new guidance on individual and group awards. This guidance replaces all prior awards policies and applies to all positions under subchapter I of chapter 43 of title 5.

Key Points for IRS Managers

  • Meaningful Differentiation of Performance – Awards must clearly distinguish between performance levels. Larger monetary and non-monetary awards should go to those rated above Fully Successful, with the largest bonuses reserved for “Outstanding” performers.
  • Ending Across-the-Board Bonuses – Broad, inflated awards dilute recognition for truly exceptional performance. The new policy focuses on rewarding the top performers who make the greatest contributions.
  • Available Award Types – Agencies may use performance bonuses, special act awards, quality step increases (for GS), time-off awards, and agency-level recognitions (e.g., “Director’s Award”) to reward excellence.
  • Special Emphasis – Recognize employees who identify fraud, waste, or abuse, or who significantly improve operational efficiency.
  • Budget Prioritization – Agencies are encouraged to set aside funding early in the fiscal year to support meaningful awards, even in tight budget years. At least 60% of award pools should be allocated to Level 4 and Level 5 performers.
  • SES/SP Rating Caps – For FY 2025, agencies are encouraged to limit Level 4 and Level 5 ratings to 30% of SES and Senior Professional employees; this becomes a requirement in FY 2026 unless waived by the President.
  • Impact on Fully Successful Ratings – Most employees will receive “Fully Successful” ratings, which may still merit recognition, but at lower amounts than top performers.
  • Compliance & Reporting – Agencies must submit compliance plans to OPM by September 8, 2025, and performance results by February 27, 2026.

Bottom Line for Managers:
This guidance signals a shift toward performance awards that are more competitive and directly tied to measurable results. As a manager, it will be more important than ever to document exceptional contributions, differentiate ratings objectively, and ensure awards go to those whose work clearly advances IRS goals.


Read the full OPM Policy Guidance on Performance Management
Click Here for a Quick Reference Guide

The Federal Employees and Contractors Oral History Project

The Volcker Alliance has partnered with the Organization of American Historians to support their important initiative to capture the stories of federal employees and contractors.  Please help us spread the word about The Federal Employees and Contractors Oral History Project by encouraging current and former federal employees and contractors to share their stories!Your Story Matters: Share Your Experience for History

Have you been affected by the federal workforce disruptions that began in January 2025? Are you a federal employee interested in telling your story about being a civil servant? Your voice and experience are crucial to documenting this pivotal moment in American history.

The Federal Employees and Contractors Oral History Project—an initiative by Organization of American Historians, with support from the Volcker Alliance—is seeking current and former federal employees and contractors to share their stories. Whether you've faced termination, contract cancellation, or other workforce disruptions, your firsthand account will help preserve vital institutional knowledge and highlight the essential contributions of public servants.

Why participate?

  • Preserve your expertise and insights for future generations
  • Help the public understand the real impact of these changes on dedicated professionals
  • Inform the public and researchers about the contributions made by civil servants
  • Contribute to a lasting, searchable digital archive accessible to scholars, policymakers, and the public
  • Ensure your perspective on federal service and its value is heard and remembered

Your story—about your work, your experiences navigating these changes, and your insights about public service—deserves to be documented and preserved. By participating, you're not just sharing your experience; you're contributing to the historical record and helping others understand what federal service truly means.

Hundreds of colleagues have already expressed interest in sharing their stories. Join this important effort to document this historic moment and spotlight the people behind public work.

Ready to share your story? Learn more and get involved here.

Don't miss this Professional Pathways Event

OPM Executive Development Programs

PMA is excited to share that the Senior Executive Association (SEA) will be hosting a webinar with the U.S. Office of Personnel Management (OPM) focused on their newly enhanced executive development programs.

This is a valuable opportunity to:

  • Learn how OPM’s new programs align with the updated Executive Core Qualifications (ECQs)
  • Understand how these changes ensure participants develop the critical competencies needed for today’s federal leadership roles
  • Gain insight into how these programs support career-long executive growth and preparedness

Whether you're a current executive or developing the next generation of leaders, this session will offer timely and practical insights.

Webinar Details and Registration Information:

Date: Monday, August 25, 2025
Time: 12:00pm ET

Register NOW!

Professional Managers Association Written Statement for IRSAC July 2025 Meeting

On behalf of the Professional Managers Association - the non-profit professional association that has, since 1981, represented professional managers, management officials, and non-bargaining unit (NBU) employees at the Internal Revenue Service (IRS) – we write to provide the IRSAC with information and insights into the extremely challenging circumstances that IRS managers are currently leading through. PMA believes engaging in this public forum is important, because we are currently hard pressed to find willing leaders in the IRS, Treasury, or in the majority of Congress who will substantively engage on critical issues facing IRS managers and the IRS workforce and their nexus with tax administration and customer service.

READ MORE

PMA Letter on IRS FY 2026 Appropriations

Dear Chairman Joyce, Ranking Member Hoyer, and Members of the Subcommittee:On behalf of the Professional Managers Association – the non-profit professional association that has, since 1981, represented professional managers, management officials, and non-bargaining unit employees at the Internal Revenue Service (IRS) – I write regarding funding for the IRS in FY 2026.During the past two filing seasons the IRS demonstrated to Congress and the American people that with adequate investment our dedicated employees will deliver a smooth and successful filing season. With adequate resources to achieve its mission, the IRS demonstrated its capability to deliver a smooth and successful filing season with adequate investment. The IRS assisted more taxpayers in person while expanding free filing options and improved digital tools on IRS.gov. In recent years the IRS has also been able to make progress on critical IT modernization, customer service improvements, and hiring efforts through multi-year funding provided by the Inflation Reduction Act (IRA). These advancements made a real difference for millions of taxpayers, with phone and customer service levels jumping over 60 points in recent years.

READ MORE

I want to update you on several exciting modifications to the CareerSupport4U.com website. Over the past couple months, the site has added and updated resources, to include:

  • A totally renovated Writing a Resume page that provides more detailed and pragmatic advice.
  • The Using AI page has added some apps for greater assistance.
  • Switching Careers and Skills Employers Want is now its own category full of useful information.

New categories have been added, including:

  • Career Coaching, which includes organizations that provide one-on-one support by certified coaches. Some offer a free session or two.
  • Mock Interviews using AI, where apps simulate job interviews by using AI to generate questions, analyze responses, and provide feedback.
  • The FAQ section now offers a summary about the Reduction in Force process and a link to the specifics.

Website link: https://careersupport4u.com/

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