Tennessee § 4-27-105 - Cash awards — Maximum.

§ 4-27-105. Cash awards — Maximum.

The cash award shall be: Equal to fifteen percent (15%) of the annual savings realized in a fiscal year, with a maximum award of one hundred thousand dollars ($100,000); Paid within ninety (90) days of the end of each fiscal year in which the savings have been realized; and Limited to the first fiscal year following the fiscal year in which the suggestion was made. If the cash award is over fifty thousand dollars ($50,000) the award must be spread over three (3) years following the fiscal year in which the suggestion was made in equal amounts; however, if the employee who is entitled to the award leaves state service the employee forfeits the remaining award appropriation item or items of the state agency to which actual savings apply. The board shall promulgate rules to develop criteria for making awards pursuant to this section, including, but not limited to, the development and implementation of an electronic mail notification to transmit to all state government employees information on the employee suggestion award program. The electronic mail notification shall be made annually by the board and shall include, but not be limited to, the provisions of this section. In promulgating rules, the board shall consider the following factors: Severity of the present problem; Effectiveness of the suggestion offered; The need to encourage improvement in state operations; and Ingenuity of the suggestion. Acts 1977, ch. 212, § 4; T.C.A., § 4-2705; Acts 1981, ch. 363, § 1; 1985, ch. 292, § 2; 1987, ch. 325, § 3; 2004, ch. 421, §§ 1, 2; 2018, ch. 1038, § 1. Amendments. The 2018 amendment rewrote the section which read:“(a)(1) The maximum cash award shall be limited to ten percent (10%) of the first year's estimated savings or ten thousand dollars ($10,000), whichever is less. The board may, however, increase the maximum amount of the award for suggestions that result in extraordinary amounts of savings.“(2) Any cash awards approved by the board shall be charged against the appropriation item or items to which estimated savings apply.“(3) Cash awards approved for suggestions that have a first year's estimated savings of less than two hundred fifty dollars ($250) shall be twenty-five dollars ($25.00).“(b)(1) The maximum cash award for suggestions resulting in the improvement of the effectiveness of state operations shall be the amount set in subdivision (a)(1).“(2) The board shall promulgate rules and regulations relative to criteria for making awards pursuant to this section.“(3) In promulgating rules and regulations, the board shall consider the following factors: “(A) Severity of the present problem;“(B) Effectiveness of the suggestion offered; “(C) Probability of occurrence of improvement in state operations; and“(D) Ingenuity of the suggestion.” Effective Dates. Acts 2018, ch. 1038, § 3. May 21, 2018.