# § 4503. Agency awards
The head of an agency may pay a cash award to, and incur necessary expense for the honorary recognition of, an employee who—
**(1)** by his suggestion, invention, superior accomplishment, or other personal effort contributes to the efficiency, economy, or other improvement of Government operations or achieves a significant reduction in paperwork; or
**(2)** performs a special act or service in the public interest in connection with or related to his official employment.
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**Source Credit**: (Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 443; Pub. L. 95–454, title V, § 502(a), Oct. 13, 1978, 92 Stat. 1183.)
| Derivation | U.S. Code | Revised Statutes andStatutes at Large |
| --- | --- | --- |
| | 5 U.S.C. 2123(a). | Sept. 1, 1954, ch. 1208, § 304(a), 68 Stat. 1113. |
The word “employee” is substituted for “civilian officers and employees of the Government” in view of the definition of “employee” in section 4501.
Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.
## Editorial Notes
### Amendments
1978—Par. (1). inserted “or achieves a significant reduction in paperwork”.
## Statutory Notes and Related Subsidiaries
### Effective Date of 1978 Amendment
, , , provided that amendment by was effective on first day of first applicable pay period which began on or after , except it could take effect with respect to any category or categories of positions before such day to extent prescribed by Director of Office of Personnel Management.