Discretionary Payment [Pay Administration] Law and Legal Definition

According to 5 CFR 530.202 [Title 5 -- Administrative Personnel; Chapter I -- Office of Personnel Management; Subchapter B -- Civil Service Regulations; Part 530 -- Pay Rates and Systems (General); Subpart B -- Aggregate Limitation on Pay], discretionary payment means “a payment an agency has discretion to make to an employee. Payments that are authorized to be made to an employee under the terms of a service agreement or preauthorized to be made to an employee at a regular fixed rate each pay period are not discretionary payments.”