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State Personnel Director Official Communication 07-01

April 5, 2007
TO:

ALL APPOINTING AUTHORITIES, HUMAN RESOURCES OFFICERS, AND RECOGNIZED EMPLOYEE ORGANIZATIONS

FROM:

JAMES D. FARRELL, STATE PERSONNEL DIRECTOR

SUBJECT: PERFORMANCE PAY MORATORIUM

In Executive Directive 2007-14, Governor Granholm requested that the Civil Service Commission impose a moratorium on performance pay awards for classified employees for the remainder of Fiscal Year 2006-07 to help address the state's fiscal condition.

Under Civil Service Rule 5-3(c)(2)(A), the state personnel director is authorized to set limits on the amount of performance pay that may be awarded in a fiscal year.

After review of the Governor's request and the state's current fiscal condition, I am imposing a moratorium on any new performance pay awards for all classified employees for the remainder of FY 2006-07. To accomplish this, I am amending Standard 3(C) of Civil Service Regulation 5.07, Performance Pay Awards, by adding the following Standard 3(C)(8):
    8. FY 06-07 Limits. Notwithstanding any other provision, no performance-pay increases can be awarded or approved on or between April 5, 2007, and September 30, 2007.

This amendment is effective immediately, as provided in Regulation 1.01, Standard 4(D).

Questions regarding this regulation may be sent to Janet McClelland, Chief Deputy Director, Department of Civil Service, P.O. Box 30002, Lansing, Michigan 48909.



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