State of California

   MEMORANDUM

   REFERENCE CODE:   95-05

   DATE:      January 25, 1995

   TO:        PERSONNEL MANAGEMENT LIAISONS                      
                                                                 
              THIS MEMORANDUM SHOULD BE DISTRIBUTED TO:

                     Accounting Officers
                     Personnel Officers
                     Merit Award Administrators
                     

   FROM:      Department of Personnel Administration
              Office of Administration


   SUBJECT:   Administrative Fees FY 1994-95 - Merit Award Program



              The Merit Award Program administered by the Department of Personnel 
              Administration is fully reimbursable, and fees are assessed and 
              charged to departments once each fiscal year.  

              Administrative fees to be charged for FY 1994-95 will be $2.20 per 
              permanent employee in each department.  This represents an increase 
              over FY 1993-94's charge of $1.80 per permanent employee.  This 
              increase is necessary to pay actual costs of program overhead and 
              required program activities.  Future PML memos will not be issued 
              on this subject unless it becomes necessary to increase 
              administrative fees.

              The State Controller's Office will be processing a transfer of 
              funds for each department during the month of February.  

              Please direct any questions or inquiries to Doris Dominey, Manager 
              of the Merit Award Program, at (916) 324-0520 or Calnet 454-0520.




              Melvin D. Turner, Chief
              Office of Administration