REPORT ON S. 958, THE MERIT PAY REFORM ACT OF 1983

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• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP95-00535R000300040001-9
• Release Decision: RIPPUB
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• Document Page Count: 40
• Document Creation Date: December 23, 2016
• Document Release Date: September 30, 2013
• Sequence Number: 1
• Publication Date: February 8, 1984
• Content Type: MEMO

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STAT
STAT
0 8 FEB 1984
MEMORANDUM FOR: Deputy Director of Personnel for
Special Projects'
Deputy Directdr of Personnel for Policy,
Analysis, and Evaluations
FROM:
Liaison Division
Office of Legislative Liaison
SUBJECT: Report On S. 958, the Merit Pay Reform Act
of 1983
1. Attached for your information and use is a copy of
Senate Report 98-351, issued by Senator Ted Stevens' (R,AL)
Governmental Affairs subcommittee. '_While the major focus of
the report, and the S. 958 bill, is merit pay, the Senior
Executive Service (SES) is also addressed in both. The
subcommittee staff has previously agreed that the Agency
will be exempted from S. 958, but it beems to me that you
will want to stay informationally current with legislation
that affects both merit pay and the SES.
2. This office will continue to follow this issue and
will report its progress accordingly.
Attachment:
As stated
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STAT
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Calendar No. 646
98TH CONGRESS 1
2d Session
SENATE
REPORT
98-351
MERIT PAY REFORM ACT OF 1983
REPORT
OF THE
COMMITTEE ON GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
TO ACCOMPANY
S. 958
TO AMEND CHAPTER 54 OF TITLE 5, UNITED STATES CODE, TO
REFORM THE MERIT PAY SYSTEM
FEBRUARY 3 (legislative day, JANUARY 30), 1984.?Ordered to be printed
U.S. GOVERNMENT PRINTING OFFICE
31-0100 WASHINGTON: 1984
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COMMITTEE ON GOVERNMENTAL AFFAIRS
WILLIAM V. ROTH, JR., Delaware, Chairman
CHARLES H. PERCY, Illinois
TED STEVENS, Alaska
CHARLES McC. MATHIAS, JR., Maryland
WILLIAM S. COHEN, Maine
DAVID DURENBERGER, Minnesota
WARREN B. RUDMAN, New Hampshire
JOHN C. DANFORTH, Missouri
THAD COCHRAN, Mississippi
WILLIAM L. ARMSTRONG, Colorado
DANIEL J. EVANS, Washington
THOMAS F. EAGLETON Missouri
LAWTON CHILES, Florida
SAM NUNN, Georgia
JOHN GLENN, Ohio
JIM SASSER, Tennessee
CARL LEVIN, Michigan
JEFF BINGAMAN, New Mexico
JOAN M. MCENTEE, Staff Director and Chief Counsel
IRA S. SHAPIRO, Minority Staff Director and Chief Counsel
SUBCOMMITTEE ON CIVIL SERVICE, POST OFFICE, AND GENERAL SERVICES
TED STEVENS, Alaska, Chairman
CHARLES McC. MATHIAS, JR., Maryland JEFF BINGAMAN, New Mexico
WILLIAM L. ARMSTRONG, Colorado JIM SASSER, Tennessee
WAYNE L. SCHLEY, Staff Director
JAMIE COWER, Special Counsel
EDWIN S. JAYNE, Minority Staff Director
PAT PHILLIPS, Chief Clerk
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Calendar No. 646
98TH CONGRESS I REPORT
2d Session SENATE
98-351
MERIT PAY REFORM ACT OF 1983
FEBRUARY 3 (legislative day, JANUARY 30), 1984.?Ordered to be printed
Mr. STEVENS, from the Committee on Governmental Affairs,
submitted the following
REPORT
[To accompany S. 958]
The Committee on Governmental Affairs, to which was referred
the bill (S. 958) to amend chapter 54 of title 5, United States Code,
to reform the merit pay system, having considered the same, re-
ports favorably thereon with an amendment in the nature of a sub-
stitute and an amendment to the title and recommends that the
bill as amended do pass.
CONTENTS
Page
I. Background and statement 1
II. Section-by-section analysis 5
III. Evaluation of regulatory impact 10
IV. Estimated cost of the legislation 10
V. Recorded.vote in Committee 13
VI. Changes in existing law 13
I. BACKGROUND AND STATEMENT
In 1978 the Civil Service underwent its most significant reform
since its establishment in 1883. The purpose of the reform was to
enhance the efficiency of the government to better serve the public.
Much of the reform was based upon a report issued in 1977
known as the Ink report regarding federal personnel management.
One of the report's recommendations was to strengthen the linkage
between employee pay increases and performance. This was con-
sistent with the Federal Salary Act Reform of 1962 which has con-
verted the earlier automatic step increases within grade levels into
a system which was intended to be based more upon performance.
The 1962 law required for the first time that supervisors determine
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whether employees' work was "of an acceptable level of compe-
tence" to warrant a step increase. Quality increases were to be
given to those who performed in an outstanding manner. Finally,
cash awards were to be made available for suggestions, superior ac-
complishments or special acts.
The Ink report, though, found that the system established in
1962 was not working for a variety of reasons. It provided four op-
tions for change, one of which served as the basis for the merit pay
system established in the 1978 reform act. The particular option
called for a pay structure with only a maximum and minimum
rate for each grade. All increases would be based upon perform-
ance with the exception of comparability raises. Appeals for failure
to receive an increase would be limited to within the agency.
The reform act incorporated this recommendation linking pay to
performance by creating a merit pay "pool concept." This "pool' of
money was comprised of employees' within grade increases and
one-half of the full comparability employees would have received.
The pool was then redistributed among the employees according to
their performance ratings. Merit pay employees had to earn pay in-
creases which were granted automatically to their General Sched-
ule counterparts. This inequity perpetuated the idea that merit pay
employees were working under a system which "robbed Peter to
pay Paul." Even among merit pay pools, the awards and merit
payouts varied significantly.
Numerous witnesses, during hearings on the reform act, testified
that comparability increases should be excluded from merit
payouts and that the system should be tested prior to full imple-
mentation. From its inception the merit pay system has been
fraught with problems.
Pay determinations were to be based upon the new performance
appraisal systems. Although all of the systems were implemented
on time, considerable inconsistencies existed among the various
agencies' systems. Then a substantial amount of the funding to be
utilized in the first payout was denied because of legal problems.
The limited funds which were distributed among supervisors and
the employees they were supervising fueled cries of conflicts of in-
terest in rating performance. Employees quickly became dissatis-
fied with being forced to compete among themselves for a pool of
money drawn from their own pockets, creating friction among co-
workers. Finally, the appraisals themselves were often poorly
drawn, incomplete, and inconsistently communicated to the em-
ployees.
On March 24, 1983, S. 958, the Merit Pay Reform Act of 1983 was
introduced by Senators Trible and Warner (R. Va.). The Subcom-
mittee on Civil Service, Post Office and General Services, Senate
Governmental Affairs Committee, held four hearings on the legisla-
tion as well as proposals by the Office of Personnel Management to
extend some of the merit pay concepts to the rest of the workforce.
The Committee strongly favors linking employee pay increases to
performance. However, any extension of a merit based system cov-
ering additional employees should be accomplished only after suffi-
cient pretesting. This view is consistent with the Ink Report, which
suggested an experimental stage. "This approach would allow the
Federal service to learn while moving into merit pay systems
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rather than risking one monumental leap that might fail." The
Committee is cognizant of the very successful merit pay experi-
ment in the Department of Navy at China Lake. The Committee
urges the Committee of Personnel Management to use its demon-
stration project authority to further test the merit pay concept in
other segments of the workforce.
The Committee feels that the current merit pay system suffers
from serious defects in its structure and has been so badly poisoned
by bad experiences, that the best solution is to establish a new
system, one which more equitably and efficiently advances the con-
cept of merit pay. Therefore, the Committee has deliberately re-
stricted the breadth of the merit pay in the legislation and has es-
tablished this performance management and recognition s stem as
a five year experiment, is approach is e mos reasoned ap-
proach to promoting a quality workforce governed by sound man-
agement policies and performance practices and one which is
viewed favorably by those covered by it.
In addition, the Civil Service Reform Act of 1978 established a-1
new branch of the Civil Service known as the Senior Executive
Service (SES) which comprises the government's top level manag-
ers. The purpose of the SES was to make the top career executives
of the government more responsive to the needs of the Administra-
tion in office. The Service was to be a fluid, highly competitive
group of executives who could receive substantial awards and bo-
nuses for good performance while being subject to legally unencum-
bered removals for poor performance.
The law requires that the SES be reviewed by Congress five
years after its inception. The Committee decided to use the review
of the merit pay system to make changes to the SES. The Commit-
tee finds that many of the objectives,of the SES have not been real-
ized. Improvements by legislation and administration are neces-
sary. The Committee has made major changes to the SES bonus
program and reduction in force and reassignment procedures in
this legislation. In addition, the Committee urges the Office of Per-
sonnel Management to examine or improve the following areas:
(1) The pull:lose of the SES was to encourage movement of em-
ployees_among_agencies to-further_ticelgovernmenfs_mis-sion. The
Committee encourages the use of executive interchange rather
than hiring new employees.
(2) The Committee finds that training for SES employees and re-
training surplus executives has been inconsistent among the agen-
cies. The Committee urges OPM-to assume a more centralized role
for such training and implement it government wide.
(3) The intent of the Civil Service Reform Act was to create a
cadre of top executives and pay them according to performance na
Recent actionsby some agencies to down-
Fa-de executives due to positions held is an improper use of the
grading authority. The Committee urges OPM to oversee these
agency actions to assure compliance with the intent of the SES.
(4) Privge.businesses utilize a variety of methods to reward their
to rstives in order to retain them. The federal government has
lost many executives in recent' Wig. The Committee urges OPM to
examine private sector practices in this regard and to recommend
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and implement changes that would tend to retain the government's
executives.
MAJOR PROVISIONS
Currently, the merit pay system guarantees employees one-half
of pay comparability each year. In lieu of within-grade increases
and 100 percent of comparability, the system provides for merit
pay increases of varying size along with a possible incentive award,
based on the employee's performance appraisal rating. Funding for
the system is derived from the other one-half of comparability not
guaranteed to employees plus the money formerly used for within-
grade increases.
S. 958 replaces this merit pay system with a five year experimen-
tal performance management and recognition system for improving
the performance of key supervisory and managerial personnel in
Grades 13 through 15 of the General schedule.
The legislation strengthens the performance appraisal system by
standardizing the process throughout the government. Five levels
of performance are established for the appraisal system, of which
the mid and expected level of performance is called "fully success-
ful".
Full comparability is guaranteed for employees who receive a
fully s_uccessful rating or better under the performance manage-
mentan. rei?csys -gn m.> Employees rated one level below
fully successful do not receive a comparability adjustment at the
same time as employees rated fully successful or better. Instead,
these employees are rated again six months after the normal ad-
justment period. If the employee's performance for the six month
period is rated fully successful or above, the employee will receive
the comparability adjustment at that time. Employees rated two
levels below fully successful do not receive comparability adjust-
ments.
Periodic step-increases, or within-grade increases are reestab-
lished under this performance management and recognition
system. In comparison to within-grade increases for General Sched-
ule employees, within-grade increases under this new system are
accelerated for those people who perform better than in a fully suc-
cessful manner and are slowed down for those employees receiving
a fully successful rating iii thiTniddle steps of each grade. In addi-
tion, employees rated below fully successful do not receive within-
grade increases.
An employee in pay rates 1, 2 or 3 who receives a fully successful
rating or above for one year shall receive a within-grade increase.
An employee in pay rates 4 through 9 who receives the top level
rating, or two steps above fully successful, for one year shall re-
ceive a step increase. An employee in pay rates 4 through 9 who
receives a fully successful rating for three consecutive years shall
receive a step increase.
Employees rated at the top level rating, or two levels above fully
successful, will receive a performance award. Employees rated one
level above fully successful may receive a performance award.
These awards are made in a lump sum fashion and do not affect
the employee's rate of basic pay.
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In addition, the legislation does not provide for quality step in-
creases but rather places heavy emphasis on the acceleration of
within-grade increases and the expansion and usage of perform-
ance based cash awards. Through the establishment of a manda-
tory funding of 1 percent of the base salary in the agency, incen-
tive awards will be used as an effective management tool to encour-
a-erhigii revels of performance annually. Individuals should strive
for high performance yearly, and receive compensation for high
performance in base pay as well as in a lump sum manner.
The final section makes changes to the Senior Executive Service
bonus and RIF provisions. Currently, reduction-in-force procedures
for the SES are muddled and cumbersome. The bill repeals the cur-
rent restrictions on SES RIFs and substitutes it with fallback
rights to positions-not less than GS-15.
The bill also changes the SE$ bonus provisions which now au-
thorize 50 percent of the SES to be eligible for a bonus. Limitations
on appropriations bills in the past have restricted the availability
on bonuses to 20 percent of the SES. The bill repeals the bonus ar-
rangement and instead authorizes 3 percent of the SES pa roll to
be used for bonuses. There is no mut as to the number of senior
iitive-S?ei1ii-ble for a bonus; instead, the limitation is on the
availability of funds. Approximately 2 percent of the SES payroll
has been utilized for bonuses in the past.
IL SECTION-BY-SECTION ANALYSIS
The Committee amendment is a substitute for S. 958.
Section 1 provides that the Act be cited as the "Civil Service
Amendments of 1983."
Section 101 amends Chapter 54 of title 5, United State Code and
is entitled "Performance Recognition".
Section 5401 of such title provides for the purpose of the legisla-
tion. The purposes delineated are similar to those listed in current
law, namely using performance appraisals to determine pay and
awards, recognize and reward quality performance, train employ-
ees to improve the appraisal process and to regulate the costs of
awards. A new objective is to reduce or withhold pay increases for
poor performance.
Subsection (a) of section 5402 of such title provides that coverage
of the Performance Recognition System be the same as those cov-
ered under the Merit Pay System, i.e., supervisors and manage-
ment officials employed in GS-13, 14 or 15 positions.
Subsection (b) grants the President similar authority as in cur-
rent law to exclude various groups from the Performance Recogni-
tion System. The President may additionally exclude a class of em-
ployees within a unit from participating in the system.
Section 5403 of such title provides for the establishment of the
performance management and recognition system.
Subsection (a) specifies the pay items to be included in such a
system:
(1) Maximum and minimum rates of basic pay within each
grade.
(2) Comparability adjustments.
(3) Periodic step increases.
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(4) Performance awards.
Subsection (b) authorizes the heads of agencies to provide for the
pay increases for each employee under the system.
Paragraph (1) of Subsection (b) provides that comparability ad-
justments be provided at the same time the rest of the General
Schedule employees receive them.
Paragraph (2) provides that comparability adjustments shall be
granted to those who receive fully successful ratings or better.
Paragraphs (2) and (3) provide that an employee who receives a
rating two levels below fully successful will not receive a compara-
bility adjustment. An employee who receives a rating one level
below a fully successful will not receive a comparability adjustment
at the time they are provided to everyone else. However, 6 months
after the normal adjustment period, the employee will be rated
again. If the employee's performance for the six month period is
rated fully successful or above, the employee will receive the re-
mainder of the year's comparability adjustment at that time.
Paragraph (4) defines the comparability adjustment to be the em-
ployee's basic pay multiplied by the percentage adjustment applica-
ble to the employee's grade as recommended by the President.
Subsection (d) provides for the schedule of periodic step in-
creases. An employee in pay rates 1, 2 or 3 who receives a fully
successful rating or above for one year shall receive a step in-
crease. An employee in pay rates 4 through 9 who receives the top
level rating for one year shall receive a step increase. An employee
in pay rates 4 through 9 who receives a rating one level above fully
successful for two consecutive years shall receive a step increase.
An employee in the same pay rates who receives a fully successful
rating for three consecutive years shall receive a step increase.
Employees must receive the above mentioned ratings for the
entire period to receive a scheduled step increase. For instance, an
employee in pay rates 4 through 9 who receives a fully successful
rating in the first year and then receives a rating one level above
fully successful the second year would not be eligible for a step in-
crease. The employee must receive two consecutive ratings at one
level above fully successful to receive a step increase. On the other
hand, if the same employee received the top rating in the second
year, the employee would receive a step increase.
Subsection (e) provides that an employee receiving a top level
rating shall receive a performance award. An employee receiving a
rating one level above fully successful may receive such an award.
The awards shall be in addition to comparability and step increases
but will not be added to basic pay. Agency heads will determine
the size of awards and whether employees rated one level above
fully successful will receive awards; however, an individual award
cannot exceed 20 percent of an employee's basic pay. An agency
shall use an amount equal to 1 percent of employee payroll in the
agency's performance recognition system for performance awards.
Failure to pay a performance award is not appealable.
Subsection (f) provides that employees brought under the per-
formance recognition system shall not be subject to a reduction in
pay as long as the employee continues to occupy the same position.
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Subsection (g) allows an employee to be paid less than the mini-
mum rate of basic pay in the employee's grade as a result of a per-
formance evaluation less than fully successful.
Subsection (h) preserves the benefits of the performance recogni-
tion system for employees who serve in the Armed Forces or serve
in essential non-government civilian employment during a war or a
national emergency.
Subsection (i) clarifies that cost of living allowances payable to
employees stationed outside of the contiguous 48 states are not part
of basic pay for the purposes of the performance recognition
system.
Section 5404 of such title is identical to Section 5403 of the cur-
rent law providing a cash award program.
Section 5405 of such title requires that OPM submit an annual
report to the President and the Congress evaluating the effective-
ness of the performance recognition system. Each report shall be
based upon consultation with a range of agency heads.
Section 5406 of such title authorizes OPM to issue regulations for
the performance recognition system.
Section 5407 of such title sunsets the performance management
and recognition system and the annual report 5 years after the
date of enactment of this legislation.
Section 102 of the Act amends Section 5335 of title 5, United
States Code, to apply periodic step increases to employees under
the performance recognition system. It, however, applies a different
schedule of step increases than employees under the General
Schedule.
Section 103 of this Act amends title 5, United States Code by
adding a new section 4302a.
Subsection (a) of such section requires agencies to develop a sepa-
rate performance appraisal system for employees covered by the
performance recognition system. Such a system shall provide for
periodic appraisals of job performance, require that supervisors
consult with employees prior to establishing performance stand-
ards, and be suitable to set basic pay and awards.
Subsection (b) requires OPM to issue regulations regarding the
appraisal systems. Each system shall have five levels of perform-
ance with the middle and expected level of performance termed the
fully successful level. The system also shall assure accurate evalua-
tion of job performance, communication with employees regarding
the requirements of the job prior to each appraisal period, evalua-
tion of the employee based upon the standards, assistance to em-
ployees performing below the fully successful level, reduction in
grade or removal of employees who continually perform at the
lowest level and awards and step increases for superior performers.
Subsection (c) lists the items performance appraisals must take
into account. Most of the items to be considered are individualistic
in nature. However, one item states the appraisals may take into
account organizational accomplishment. The Committee urges
OPM to consider ways to reward employees who work in organiza-
tions that perform more efficiently than projected or organizations
which achieve results far in excess of expectations.
Nothing in the appraisal is appealable except an employee rating
below the fully successful level.
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Subsection (d) prohibits OPM and an agency from directing a
specific distribution or curve of ratings in an agency. This is not
intended to prevent either OPM or an agency from examining
system in which there appears to be extremes in the distribution of
performance ratings and questioning them.
Subsection (e) prohibits OPM from directing agencies to include a
specific performance standard or element in an agency's system.
This is not intended to prevent OPM from assisting agencies in the
development systems when requested.
Section 104 of the Act amends various provisions of the Senior
Executive Service.
Subsection (a) amends Section 3135 of title 5, United States Code,
to add to OPM's reporting requirements on the SES a provision
listing the number of SES employees who were removed from the
SES as a result of a reduction in-force and placed in a General
Schedule position.
Subsection (b) amends section 3592 of such title by authorizing
the removal of an SES employee from the SES to another civil
service position as a result of a reduction-in-force.
Subsection (c) amends Section 3593 of such title by repealing the
reinstatement rights of a former career civil servant to the SES
who was removed from the SES as a result of a reduction-in-force.
( This provision is no longer needed since SES employees subject to a
reduction-in-force are entitled to positions in the General Schedule
at no less than a GS-15 level in any agency.
Paragraph (1) of subsection (d) amends section 3594 of such title
by entitling an SES employee who is removed from the SES as a
result of a reduction-in-force to be placed in a civil service position
/ in any agency at a grade no lower than a GS-15. This means, in
? effect, an SES employee so removed cannot be removed from the
Civil Service. The employee must be placed in a position in any
\ agency not lower than a GS-15. Such protections do not apply to
\ such an employee for subsequent reductions-in-force.
Paragraph (2) eliminates the pay protection an SES employee re-
ceives who is removed from the SES due to unacceptable perform-
ance. Currently, such an individual is entitled to receive the high-
est of (1) the pay in effect for the new position; (2) the pay for the
Civil Service position held prior to appointment to the SES; and (3)
the pay as an SES employee. Such employee's basic pay would in-
stead be no lower than GS-15 pay. An employee removed from the
SES due to a reduction-in-force would receive all of the pay protec-
tion provisions.
Subsection (e) amends section 3595 of such title by repealing the
requirement to place an SES employee removed from his position
to another SES position in the government and then to notify Con-
gress if such an employee cannot be placed. These provisions are
replaced by a requirement to place an SES employee in a vacant
SES position in the employee's agency for which he is qualified. If
no such vacancy exists, the SES employee may be removed from
the SES and placed in a position no less than GS-15 in any agency
as specified in subsection (d)(1).
The Committee hopes, however, that OPM will continue to moni-
tor agency reductions-in-force and to try and place SES employees
removed for such reasons in other agencies if the SES employee re-
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quests such assistance. SES positions are intended to be fungible
and thus such an employee should be qualified for some vacancies
in other agencies.
Subsection (f) adds new sections 3597 and 3598 to such title.
Section 3597 authorizes the furlough of SES employees for insuf-
ficient work or funds or for other nondisciplinary reasons. Such a
furlough is appealable to the Merit Systems Protection Board.
Section 3598 requires the head of an agency to inform? a career
SES employee of a reassignment outside of the employee's commut-
ing area. Such a notice must be reasonably in advance of a reas-
signment. Current law provides 15 days advance notice for any
reassignment. The Committee does not feel 15 days is sufficient
notice for a reassignment outside of an employee's commuting
area. Reasonable notice should depend upon the needs of the em-
ployee as well as the agency. Consideration should be given to an
employee's marital and family status, living accomodations and
other factors that would tend to tie an employee to a particular
area. An employee's needs should be counterbalanced by the needs
of the agency, e.g. whether the new position must be filled on an
emergency basis. In addition, the notice shall state the manage-
ment reasons for such a move. Such a statement should explain
why the move is necessary for the agency. An explanation such as
"for the efficiency of the agency" would be an insufficient reason.
Paragraph (1) of subsection (g) amends Section 5384 of such title
by assuring that a performance award cannot
cent of the SES emigq-Ce7s3T-sic,pay.
Paragraph (2) replaces the limitation on the number of SES em-
ployees in an agency eligible for an award by a limitation on the
amount of funding authorized for awards. Performance awards in
an agency au not exceed 3 percent of the a roll of all SES
career appamteesAn_an age_ncy. This makes all SES career appoilit-
ees eligible for an award. The Committee hopes, however, that with
the increased flexibility in the award program, agencies will use
the program prudently to grant larger awards to the superior per-
formers.
Subsection (h) amends Section 7543 of such title by clarifying the
law with respect to the consequences for failing to accept a directed
reassignment. Current law provides that a suspension or removal
from the Civil Service of an SES employee may occur as a result of
the employee's misconduct, neglect of duty or malfeasance. To sus-
pend or remove airSES-emproSiee, an agency mil?riffialhat failure
to accept a reassignment meets one of the above definitions. A
basic premise of the SES is to foster position and geographic move-
ment when in the best interest of the agency. This subsection
makes it absolutely clear that failure to accept a directed reassign-
ment or to accompany a position in a transfer of function is
grounds for suspension or removal.
Subsection (i) requires OPM to issue regulations regarding SES
reductions-in-force after notice and hearing pursuant to the Admin-
istrative Procedures Act.
Subsection (j) amends Section 8336 of such title to clarify that an
SES employee who is separated from the government due to failure
to accept a directed reassignment or to accompany a position in a
transfer of function will not jeopardize the employee's eligibility to
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receive an annuity based upon an involuntary separation. Current
law prohibits an employee who is removed for misconduct or delin-
quency from receiving benefits if eligible through an involuntary
separation.
Subsection (k) amends Section 5383 of such title by repealing the
aggregate pay limitation for SES employees who receive a bonus,
award or an allowance which would cause their total pay.to exceed
the pay level of Executive Level I employees.
Section 105 of the legislation is comprised of technical amend-
ments.
Section 201 of the legislation provides that all of the changes to
the Merit Pay System and the SES shall take effect in October,
1984.
---gttion (a) of Section 202 of the legislation provides that any em-
ployee covered by the Merit Pay System who is not covered by the
new performance system shall be converted to the General Sched-
ule.
Subsection (b) of such section provides that any employee covered
by the Merit Pay System who then is covered by the new perform-
ance system shall receive at least the same basic pay.
III. EVALUATION OF REGULATORY IMPACT
Paragraph 11(b) (1) of Rule XXVI requires each report accompa-
nying a bill to evaluate "the regulatory impact which would be in-
curred in carrying out the bill."
S. 958 will not have any regulatory impact. It does not authorize
any additional regulation of activities in the private sector, impose
any new record keeping or reporting requirements on any segment
of the public, or abolish any existing regulations.
IV. ESTIMATED COST OF THE LEGISLATION
Pursuant to Section 403 of the Congressional Budget Act of 1974,
the Congressional Budget Office has reviewed the cost implications
of S. 958. The following is CBO's estimate of the potential costs of
this legislation:
U.S. CONGRESS,
CONGRESSIONAL BUDGET OFFICE,
Washington, D.C., January 27, .1984.
HMI. WILLIAM V. ROTH, Jr.,
Chairman, Committee of Governmental Affairs,
U.S. Senate, Washington, D.C.
DEAR MR. CHAIRMAN: The Congressional Budget Office has pre-
pared the attached cost estimate for S. 958, the. Civil Service
Amendments of 1984, as ordered reported by the Senate Committee
on Governmental Affairs on November 17, 1983.
Should the Committee so desire, we would be pleased to provide
further details on this estimate.
Sincerely,
RUDOLPH G. PENNER, Director.
CONGRESSIONAL BUDGET OFFICE, COST ESTIMATE, JANUARY 27, 1984
1. Bill number: S. 958.
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2. Bill title: Civil Service Amendments of 1984.
3. Bill purpose: S. 958 would make several major changes to the
federal civil service laws. The bill would replace the current merit
system with a performance management and recognition system.
Under the new system, employees with less than fully successful
job performance evaluations would receive neither a pay compara-
bility increase nor a within-grade increase, while employees evalu-
ated as fully successful or above fully successful would receive peri-
odic step increases and the full annual pay comparability adjust-
ment approved for other federal white-collar employees. In addi-
tion, merit system employees with above fully successful ratings
would qualify for accelerated step increases and cash performance
awards. Quality step increases would be eliminated under the per-
formance management and recognition system. S. 958 would also
provide a formula for determining cash performance awards for
members of the Senior Executive Service (SES); this formula is the
same as that provided in Office of Personnel Management (OPM)
regulations published in November 1983.
4. Estimated cost to the Federal Government:
[By fiscal year, in millions of dollars]
1985 1986 1987 1988 1989
Estimated authorization level
61
88
117
150
Estimated outlays
59
86
114
146
These costs would fall in all budget functions except function 900
(net interest).
5. Basis of Estimate: This estimate assumes the fiscal year 1984
pay comparability adjustment of 3.5 percent, effective in January
1984. Future federal pay adjustments are those in CBO's 1985-1989
baseline, which assumes that federal civilian employees will re-
ceive pay adjustments equal to the annual rate of increase in pri-
vate-sector pay. Those adjustments are 3.3 percent in fiscal year
1985, 5.4 percent in 1986, 5.6 percent in 1987, and 5.5 percent in
1988 and 1989, effective in October each year.
Title II of the bill specifies that the sections relating to the per-
formance management and recognition system become effective on
the first day of the fiscal year following the bill's enactment. CBO,
therefore, assumes that the new performance appraisal system
would begin in fiscal year 1985, and that pay adjustments based on
the new system would begin in 1986. CBO also assumes that about
82,000 merit system employees (the number of current merit
system employees in supervisory positions) and about 6,100 career-
appointed members of the SES would be affected by the bill.
The performance management and recognition system created by
S. 958 would raise federal expenditures by allowing cash perform-
ance awards and accelerated step adjustments for employees rated
above fully successful. The accelerated step adjustments are esti-
mated to increase federal budget outlays by $30 million in 1986,
rising to $140 million in 1989. CBO estimates that the provisions of
the bill relating to step increases would raise the total annual cost
of step adjustments from 1.6 percent to 2.4 percent of total payroll.
98-351 0 ? 84 ? 2
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This represents the net effect of (1) an increase in outlays resulting
from accelerated step increases for employees rated above fully suc-
cessful and of (2) a decrease in outlays because of the slowing or
reduction of step increases for employees rated at or below the
fully successful level. CBO has estimated the cost of the proposed
merit pay system by applying the rules contained in the bill to the
current distribution of performance rankings by grade and step.
The estimate assumes that the proposed merit pay system will not
alter the distribution of performance rankings.
The bill also specifies that an amount equal to no less than one
percent of the performance and recognition system payroll is to be
used to make performance awards to workers evaluated as per-
forming above the fully successful level. Assuming a 1984 payroll of
$3.7 billion, and annual pay comparability adjustments in future
years equal to those in the CBO baseline, there performance
awards would cost on average about $41 million per year from
1986-1989.
Increased expenditures for accelerated step increases and per-
formance awards would be partially offset by eliminating pay ad-
justments for workers receiving less than fully successful evalua-
tions, and by discontinuing quality step increases for all supervi-
sory employees currently covered by the merit pay system. Data
provided by OPM indicate that approximately one percent of merit
system employees receive less than fully successful ratings. Be-
cause the bill does not require a specific distribution of employees
among the various evaluation categories, CBO assumes the enact-
ment of S. 958 would not alter the current distribution of evalua-
tion ratings. Given this assumption, eliminating all pay adjust-
ments for employees receiving below fully successful ratings would
reduce federal spending by about $1 million in 1986, $3 million in
1987, $6 million in 1988, and $8 million in 1989. By discontinuing
quality step increases for all merit system employees, the federal
government would save an additional $6 million in 1986, $12 mil-
lion in 1987, $19 million in 1988, and $27 million in 1989.
S. 958 also specifies that the aggregate level of performance
awards to members of the SES may not exceed 3 percent of total
SES basic pay. Data provided by OPM indicate that the level of
these awards in 1983 was about 2 percent of total SES basic pay.
OPM, however, issued regulations on November 16, 1983 that pro-
vide, effective in 1984 erfonDance awards to_careerzap,p.ointed
membe s o e at the same 3 yercent_lev_el,specified in the
bilt-T'h?e-reroative to current law' section of-S.,95g7oTald
hve n-difeibudgetary effect.
-67Eitimated cost tO State and local governments: None.
7. Estimate comparison: None.
8. Previous CBO estimate: This estimate differs from an estimate
on S. 958 prepared by CBO on September 16, 1983 for the Subcom-
mittee on Civil Service, Post Office, and General Services of the
Senate Committee on Governmental Affairs. The previous CBO es-
timate (1) assumed an effective date one year earlier, (2) assumed
pay rate increases specified in the first budget resolution for fiscal
year 1984 (4 percent each year, effective in January), (3) used less
up-to-date employment level and payroll numbers, and (4) included
the cost of a provision, since dropped from the bill, that would have
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established a 45-month experimental program to test the effective-
ness of various performance appraisal systems.
9. Estimate prepared by: David Bashore.
10. Estimate approved by: C. G. Nuckols for James L. Blum, As-
sistant Director for Budget Analysis.
V. RECORDED VOTE IN COMMITTEE
In compliance with paragraph 7(c) of rule XXVI of the Standing
Rules of the Senate, the rollcall vote taken during committee con-
sideration is as follows:
Final passage: Ordered reported, 16 yeas; 0 nays.
Yeas-16 Nays-0
Percy
Stevens
Mathias
Cohen
Durenberger
Rudman
Danforth
Cochran
Eagleton
Chiles
Nunn
Glenn
Sasser
Levin
Bingaman
Roth
VI. CHANGES IN EXISTING LAW
In compliance with paragraph 12 of rule XXVI of the Standing
Rules of the Senate, changes in existing law made by the bill, as
reported are shown as follows (existing law proposed to be omitted
is enclosed in black brackets, new matter is printed in italic, and
existing law in which no changes is proposed is shown in roman):
TITLE 5, UNITED STATES CODE
PART III?EMPLOYEES
CHAPTER 31?AUTHORITY FOR EMPLOYMENT
SUBCHAPTER II?THE SENIOR EXECUTIVE SERVICE
3131. The Senior Executive Service.
3132. Definitions and exclusions.
3133. Authorization of positions; authority of appointment.
3134. Limitations on noncareer and limited appointments.
3135. Biennial report.
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3136. Regulations.
? 3135. Biennial report
(a) The Office of Personnel Management shall submit to each
House of the Congress, at the time the budget is submitted by the
President to the Congress during each odd-numbered calendar
year, a report on the Senior Executive Service. The report shall in-
clude?
* *
(8) the estimated number of career reserved positions which,
during the two fiscal years following the then current fiscal
year, will become general positions and the estimated number
of general positions which during such two fiscal years, will
become career reserved positions; [and]
(9) the number of career appointees who have been placed in a
position outside the Senior Executive Service under section 3594
of this title as a result of a removal under section 3595 of this
title; and
[(9)3 (10) such other information regarding the Senior Ex-
ecutive Service as the Office considers appropriate.
[(b)] The Office of Personnel Management shall submit to each
House of the Congress, at the time the budget is submitted to the
Congress during each even-numbered a calendar year, an interim
report showing changes in matters required to be reported under
subsection (a) of this section.
CHAPTER 35?RETENTION PREFERENCE, RESTORATION
AND REEMPLOYMENT
SUBCHAPTER V?REMOVAL, REINSTATEMENT, AND GUARANTEED
PLACEMENT IN THE SENIOR EXECUTIVE SERVICE
3591. Definitions.
3592. Removal from the Senior Executive Service.
3593. Reinstatement in the Senior Executive Service.
3594. Guaranteed placement in other personnel systems.
3595. Reduction in force in the Senior Executive Service.
3596. Regulations.
3597. Furlough in the Senior Executive Service.
3598. Reassignment notice.
?3592. Removal from the Senior Executive Service
(a) Except as provided in subsection (b) of this section, a career
appointee may be removed from the Senior Executive Service to a
civil service position outside of the Senior Executive Service?
(1) during the 1-year period of probation under section 3393
(d) of this title, [or]
(2) at any time for less than fully successful executive per-
formance as determined under subchapter II of chapter 43 of
this title,
(3) as a result of a reduction in force under section 3595 of
this title,
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except that in the case of a removal under paragraph (2) of this
subsection the career appointee shall, at least 15 days before the
removal, be entitled, upon request, to an informal hearing before
an official designated by the Merit Systems Protection Board at
which the career appointee may appear and present arguments,
but such hearing shall not give the career appointee the right to
initiate an action with the Board under section 7701 of this title,
nor need the removal action be delayed as a result of the granting
of such hearing.
?3593. Reinstatement in the Senior Executive Service
(a) A former career appointee may be reinstated, without regard
to section 3393 (b) and (c) of this title, to any Senior Executive Serv-
ice position for which the appointee is qualified if?
(1) the appointee has successfully completed the probation-
ary period established under section 3393(d) of this title; and
(2) the appointee left the Senior Executive Service for rea-
sons other than misconduct, neglect of duty, malfeasance, or
less than fully successful executive performance as determined
under subchapter II of chapter 43 of this title.
(b) A career appointee who is appointed by the President to any
civil service position outside the Senior Executive Service and who
leaves the position for reasons other than misconduct, neglect of
duty, or malfeasance shall be entitled to be placed in the Senior
Executive Service if the appointee applies to the Office of Person-
nel Management within 90 days after separation from the Presi-
dential appointment.
[(c)(1) A former career appointee shall be reinstated, without
regard to section 3393 (b) and (c) of this title, to any vacant Senior
Executive Service position in any agency for which the appointee is
qualified if?
[(A) the individual was a career appointee on May 31, 1981;
[(B) the appointee was removed from the Senior Executive
Service under section 3594 of this title due to a reduction in
force in that agency;
[(C) before the removal occurred, the appointee successfully
completed the probationary period established under section
3393(d) of this title; and
[(D) the appointee applies for that vacant position within
one year after the Office receives certification regarding that
appointee pursuant to section 3595(b)(3)(B) of this title.
[(2) A career appointee is entitled to appeal to the Merit Sys-
tems Protection Board under section 7701 of this title any determi-
nation by the agency that the appointee is not qualified for a posi-
tion for which the appointee applies under paragraph (1) of this
subsection.]
? 3594. Guaranteed placement in other personnel systems
(a) A career appointee who was appointed from a civil service po-
sition held under a career or career-conditional appointment (or an
appointment of equivalent tenure, as determined by the Office of
Personnel Management) and who, for reasons other than miscon-
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duct, neglect of duty, or malfeasance, is removed from the Senior
Executive Service during the probationary period under section
3393(d) of this title, shall be entitled to be placed in a civil service
position (other than a Senior Executive position) in any agency.
[(b) A career appointee?
[(1) who has completed the probationary period under sec-
tion 3393(d) of this title; and
[(2) who is removed from the Senior Executive Service for
less than fully successful executive performance as determined
under subchapter II of chapter 43 of this title;
shall be entitled to be placed in a civil service position (other than
a Senior Executive Service position) in any agency.]
(b) A career appointee who has completed the probationary period
under section 3393(d) of this title and who?
(1) is removed from the Senior Executive Service for less than
fully successful executive performance as determined under sub-
chapter II of chapter 43 of this title; or
(2) is removed from the Senior Executive Service as a result of
a reduction in force under section 3595 of this title,
shall be entitled to be placed in a civil service position (other than a
Senior Executive Service position) in any agency.
(c)(1) For purposes of subsections (a) and (b) of this section?
(A) the position in which any career appointee is placed
under such subsections shall be a continuing position at GS-15
or above of the General Schedule, or an equivalent position,
and, in the case of a career appointee referred to in subsection
(a) of this section, the career appointee shall be entitled to an
appointment of a tenure equivalent to the tenure of the ap-
pointment held in the position from which the carteer appoint-
ee was appointed;
(B) any career appointee placed under [subsection (a) or (b)
of this section] subsection (a) of this section, other than by
reason of unacceptable performance, or under subsection (b)(2) of
this section shall be entitled to receive basic , pay at the highest
of?
(i) the rate of basic pay in effect for the position in
which placed;
(ii) the rate of basic pay in effect at the time of the
placement for the position the career appointee held in the
civil service immediately before being appointed to the
Senior Executive Service; or
(iii) the rate of basic pay in effect for the career appoint-
ee immediately before being placed under subsection (a) or
(b) of this section; and
(C) the placement of any career appointee under subsection
(a) or (b) of this section may not be made to a position which
would cause the separation or reduction in grade of any other
employee.
(2) An employee who is receiving basic pay under paragraph
(1)(B)(ii) or (iii) of this subsection is entitled to have the basic pay
rate of the employee increased by 50 percent of the amount of each
increased in the maximum rate of basic pay for the grade of the
position in which the employee is placed under subsection (a) or (b)
of this section until the rate is equal to the rate in effect under
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paragraph (1)(B)(i) of this subsection for the position in which the
employee is placed.
? 3595. Reduction in force in the Senior Executive Service
(a) An agency shall establish competitive procedures for deter-
mining who shall be removed from the Senior Executive Service in
any reduction in force of career appointees within that agency. The
competitive procedures shall be designed to assure that such deter-
minations are primarily on the basis of performance, as deter-
mined under subchapter II of chapter 43 of this title.
(b)(1) This subsection applies to any career appointee who has
successfully completed the probationary period prescribed under
section 3393(d) of this title.
[(2) Except as provided in paragraphs (4) and (5), a career ap-
pointee may not be removed from the Senior Executive Service due
to a reduction in force within an agency.
[(3) A career appointee who, but for this subsection, would be re-
moved from the Senior Executive Service due to a reduction in
force within an agency?
[(A) is entitled to be assigned by the head of that agency to
a vacant Senior Executive Service position for which the
career appointee is qualified; or
[(B) if the agency head certifies, in writing, to the Office of
Personnel Management that no such position is available in
the agency, is entitled (i) to be placed by the Office in any
agency in any vacant Senior Executive Service position unless
the head of that agency determines that the career appointee
is not qualified for that position or i(ii) [to] be detailed by the
Office to any vacant Senior Executive Service position for
which the Office deems the employee to be qualified in any
' agency for a period not to exceed 60 days, and be placed in
such position by the Office after the period of such detail,
unless the head of the agency determines that the career ap-
pointee is not qualified for such position.
The Office of Personnel Management shall take all reasonable
steps to place a career appointee under subparagraph (B) and may
require any agency to take any action which the Office considers
necessary to carry out any such placement.
[(4) A career appointee who is not assigned under paragraph
(3)(A) may be removed from the Senior Executive Service and the
civil service due to a reduction in force if?
[(A) the career appointee declines a reasonable offer for
placement in a Senior Executive Service position under para-
graph (3)(B); or
[(B) subject to paragraph (5), the career appointee is not
placed in another Senior Executive Service position under
paragraph (3)(B) within 120 days after the Office receives certi-
fication regarding that appointee under paragraph (3)(B).
[(5) An individual who was a career appointee on May 31, 1981,
may be removed from the SeniVor Executive Service and the civil
service due to a reduction in force after the 120-day period specified
in paragraph (4)(B) only if the Director of the Office of Personnel
Management certifies to the Committee on Post Office and Civil
Service of the House of Representatives and the Committee on Gov-
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ernmental Affairs of the Senate, no later than 30 days prior to the
effective date of such removal, that?
[(A) the Office has taken all reasonable steps to place the
career appointee in accordance with paragraph (3) of this sub-
section, and
[(B) due to the highly specialized skills and experience of
the career appointee, the Office has been unable to place the
career appointee.
[(c) A career appointee is entitled to appeal to the Merit Sys-
tems Protection Board under section 7701 of this title?
[(1) whether the reduction in force complies with the com-
petitive procedures required under subsection (a),
[(2) any removal under subsection (b)(4)(A), and
[(3) in the event the career appointee is not placed under
subsection (b)(3) of this section?
[(A) whether the Office of Personnel Management took
all reasonable steps to achieve such placement, and
[(B) the decision of an agency under subsection (b)(3)(B0
of this section that the career appointee is not qualified to
be placed in a position.
[(d) For purposes of this section, "reduction in force" includes
the elimination or modification of a position due to a reorganiza-
tion, due to a lack of funds or curtailment of work, or due to any
other factor.]
A career appointee may be removed from the Senior Executive
Service due to a reduction in force within an agency only if the ap-
pointee is not assigned to a Senior Executive Service position under
paragraph (3) of this subsection.
(3) A career appointee who, but for this paragraph, would be re-
moved from the Senior Executive Service due to a reduction in force
within an agency is entitled to be assigned by the head of that
agency to a vacant Senior Executive Service position for which the
career appointee is qualified.
? 3596. Regulations
The Office of Personnel Management shall prescribe regulations
to carry out the purpose of this subchapter.
e 3597. Furlough in the Senior Executive Service
(a) For the purposes of this section, the term "furlough" means
the placement of a senior executive in a temporary status in which
the senior executive has no duties and is not paid when the place-
ment in such status is by reason of insufficient work or funds or for
other nondisciplinary reasons.
(b) An agency may furlough a career appointee only pursuant to
regulations issued by the Office of Personnel Management.
(c) A career appointee who is furloughed is entitled to appeal his
status to the Merit Systems Protection Board under section 7701 of
this title.
? 3598. Reassignment notice
The head of an agency reassigning any career appointee outside
the career appointee's commuting area under this chapter shall
transmit to the career appointee reasonable advance notice of the
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reassignment. The notice shall include a statement setting forth
valid management reasons for the reassignment.
SUBCHAPTER VI?REEMPLOYMENT FOLLOWING LIMITED
APPOINTMENT IN THE FOREIGN SERVICE
[? 3597.1 ? 3599. Reemployment following limited appointment in
the Foreign Service
An employee of any agency who accepts, with the consent of the
head of that agency, a limited appointment in the Foreign Service
under section 309 of the Foreign Service act of 1980 is entitled,
upon the expiration of that appointment, to be reemployed in that
employee's former position or in a corresponding or higher position
in that agency. Upon reemployment under this section, an employ-
ee shall be entitled to any within-grade increase in pay which the
employee would have received if the employee had remained in the
former position in the agency.
CHAPTER 43?PERFORMANCE APPRAISAL
SUBCHAPTER I-GENERAL PROVISIONS
SEC.
4301. Definitions.
4302. Establishment of performance appraisal systems.
4302a. Establishment of performance appraisal systems for performance manage-
ment and recognition system employees.
4303. Actions based on unacceptable performance.
4304. Responsibilities of Office of Personnel Management.
4305. Regulations.
? 4302a. Establishment of performance appraisal systems for per-
formance management and recognition system employees
(a) Each agency shall develop a performance appraisal system for
employees covered by the performance management and recognition
system established under section 5403 of this title which?
(1) provides for periodic appraisals of job performance;
(2) requires that the supervising official consult with the em-
ployee before established performance standards; and
(3) is suitable for use in setting the basic pay and performance
awards for an employee in accordance with section 5403 of this
title.
(b) Under regulations which the Office of Personnel Management
shall prescribe, each performance appraisal system under this sec-
tion shall?
(1) provide for five levels of performance ratings as follows:
(A) two levels which are below fully successful;
(B) a fully successful level; and
(C) two levels which are above fully successful;
(2) provide for establishing performance standards and criti-
cal elements which will, to the maximum extent feasible,
permit the accurate evaluation of job performance;
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(3) require each supervisor of an employee covered by the per-
formance management and recognition system to discuss with
each such employee, before the beginning of each appraisal
period, the performance standards and critical elements appli-
cable to the employee's position during such appraisal period;
(4) provide for evaluating each such employee on the basis of
such standards during the appraisal period;
(5) provide for assisting such employees in improving less
than fully successful performance;
(6) provide for reducing in grade or removing any such em-
ployee who continually performs at the level which is two levels
below the fully successful level, after providing an opportunity
to perform at the fully successful level; and
(7) provide for making decisions to increase a rate of basic
pay or to make a performance award based on annual perform-
ance appraisals made under this section.
(c)(1) Appraisals of performance under this section?
(A) shall take into account?
(i) individual performance;
(ii) any improvement in efficiency, productivity, and qual-
ity of work or service, including any significant reduction
in paperwork;
(iii) cost efficiency;
(iv) timeliness of performance; and
(v) other indications of the effectiveness, productivity,
and quality of performance of the appraised employee or
other employees for whom the appraised employee or other
employees for whom the appraised employee is responsible;
(B) may take into account organizational accomplishment;
and
(C) except as provided in paragraph (2) of this subsection,
shall be subject to review only within the agency of the employ-
ee and only in accordance with and to the extent provided by
procedures established by the Office of Personnel Management
and may not be appealed outside the agency.
(2) An employee whose performance is rated below the fully suc-
cessful level is entitled to appeal the rating to the Merit Systems
Protection Board.
(3) If a review under paragraph (1)(C) of this subsection or an
appeal under paragraph (2) of this subsection results in a higher
performance rating, such rating supersedes the earlier rating and is
deemed to have been made as of the date of the earlier rating.
(d) In carrying out this section, the Office of Personnel Manage-
ment and an agency may not prescribe a distribution of levels of
performance ratings for employees covered by chapter 54 of this title.
(e) The Office of Personnel Management may not prescribe or re-
quire agencies to prescribe any specific performance standard or ele-
ment for the purposes of this section. .
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CHAPTER 45?INCENTIVE AWARDS
SUBCHAPTER I-AWARDS FOR SUPERIOR ACCOMPLISHMENTS
SEC.
4501. Definitions.
4502. General provisions.
4503. Agency awards.
4504. Presidential awards.
4505. Awards to former employees.
4506. Regulations.
4507. Awarding of ranks in the Senior Executive Service.
SUBCHAPTER I?A WARDS FOR SUPERIOR
ACCOMPLISHMENTS
? 4501. Definitions
For the purpose of this subchapter?
(1) "agency" means?
(A) an Executive agency;
(B) the Administrative Office of the United States
Courts;
(C) the Library of Congress;
(D) the Office of the Architect of the Capitol;
(E) the Botanic Garden;
(F) the Government Printing Office; and
(G) the government of the District of Columbia; but does
not include?
(i) the Tennessee Valley Authority; or
(ii) the Central Bank for Cooperatives;
(2) "employee" means?
(A) an employee as defined by section 2105 of this title
but does not include an employee covered by [the merit
pay system established under section 5402] the perform-
ance management and recognition system established under
section 5403 of this title; and
(B) an individual employed by the government of the
District of Columbia; and
(3) "Government" means the Government of the United
States and the government of the District of Columbia.
CHAPTER 53?PAY RATES AND SYSTEMS
SUBCHAPTER III-GENERAL SCHEDULE PAY RATES
5331. Definitions; application.
5332. The General Schedule.
5333. Minimum rate for new appointments; higher rates for supervisors of prevail-
ing rate employees.
5334. Rate on change of position or type of appointment; regulations.
5335. Periodic step-increases.
5336. Additional step-increases.
5337. [Repealed.]
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5338. Regulations.
SUBCHAPTER III?GENERAL SCHEDULE PAY RATES
? 5332. The General Schedule.
(a) The General Schedule, the symbol for which is "GS", is the
basic pay schedule for positions to which this subchapter applies.
Each employee to whom this chapter applies, except an employee
covered by [the merit pay system established under section 5402]
the performance management and recognition system established
under section 5403 of this title, is entitled to basic pay in accord-
ance with the General Schedule.
? 5334. Rate on change of position or type of appointment; regula-
tions
* * * * * * *
(f) In the case of an employee covered by [the merit pay system
established under section 5402] the performance management and
recognition system established under section 5403 of this title, all
references in this section to "two steps" or "two step-increases"
shall be deemed to mean 6 percent.
? 5335. Periodic step-increases
[(e) This section does not apply to the pay of an individual cov-
ered by the merit pay system established under section 5402 of this
title, or, appointed by the President, by and with the advice and
consent of the Senate.]
(e) This section does not apply to the pay of an individual ap-
pointed by the President, by and with the advice and consent of the
Senate.
(f) Notwithstanding clauses (1), (2), and (3) of subsection (a) of this
section, employees covered by the performance management and rec-
ognition system under chapter 54 of this title shall be advanced in
pay only as provided in section 5403(d) of this title.
? 5336. Additional step-increases
(c) This section does not apply to the pay of an individual covered
by (the merit pay system established under section 5402] the per-
formance management and recognition system established under sec-
tion 5403 of this title, or, appointed by the President, by and with
the advice and consent of the Senate.
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SUBCHAPTER VI?GRADE AND PAY RETENTION
?5361. Definitions
For the purpose of this subchapter?
(1) "employee" means an employee to whom chapter 51 of
this title applies, and a prevailing rate employee, as defined by
section 5342(a)(2) of this title, whose employment is other than
on a temporary or term basis;
(2) "agency" has the meaning given it by section 5102 of this
title;
(3) "retained grade" means the grade used for determining
benefits to which an employee to whom section 5362 of this
title applies is entitled;
(4) "rate of basic pay" means, in the case of a prevailing rate
employee, the scheduled rate of pay determined under section
5343 of this title;
(5) "covered pay schedule" means the General Schedule, any
prevailing rate schedule established under subchapter IV of
this chapter, or the [merit pay system] performance manage-
ment and recognition system under chapter 54 of this title;
SUBCHAPTER VIII?PAY FOR THE SENIOR EXECUTIVE
SERVICE
?5383. Setting individual senior executive pay
[(b) In no event may the aggregate amount paid to a senior ex-
ecutive during any fiscal year under sections 4507, 5382, 5384, and
5948 of this title exceed the annual rate payable for positions at
level I of the Executive Schedule in effect at the end of such fiscal
year.]
?5384. Performance awards in the Senior Executive Service
(b)(1) No performance award under this section shall be paid to
any career appointee whose performance was determined to be less
than fully successful at the time of the appointee's most recent per-
formance appraisal and rating under subchapter II of chapter 43 of
this title.
(2) The amount of a performance award under this section shall
be determined by the agency head but may not [exceed] be less
than 3 percent nor more than 20 percent of the career appointee's
rate of basic pay.
[(3) The number of career appointees in any agency paid per-
formance awards under this section during any fiscal year may not
exceed 50 percent of the number of Senior Executive Service posi-
tions in such agency. This paragraph shall not apply in the case of
any agency which has less than 4 Senior Executive Service posi-
tions.]
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(3) The total amount of performance awards paid during a fiscal
year by an agency under this section may not exceed 3 percent of the
aggregate payroll for career appointees in the agency.
SUBPART D?PAY AND ALLOWANCES
51?Classified
5101
53?Pay Rates and Systems
5301
[54?Merit Pay and Cash Awards
5401]
54. Performance Recognition
5401
55?Pay Administration
5501
57?Travel, Transportation, and Subsistence
5701
59?Allowances
5901
[CHAPTER 54?MERIT PAY AND CASH AWARDS
[SEC.
[5401. Purpose.
[5402. Merit pay system.
[5403. Cash award program.
[5404. Report.
[5405. Regulations.
[? 5401. Purpose
[(a) It is the purpose of this chapter to provide for?
[(1) a merit pay system which shall?
[(A) within available funds, recognize and reward qual-
ity performance by varying merit pay adjustments;
[(B) use performance appraisals as the basis for deter-
mining merit pay adjustments;
[(C) within available funds, provide for training to im-
prove objectivity and fairness in the evaluation of perform-
ance; and
[(D) regulate the costs of merit pay by establishing ap-
propriate control techniques; and
[(2) a cash award program which shall provide cash awards
for superior accomplishment and special service.
[(b)(1) Except as provided in paragraphs (2) and (3) of this sub-
section, this chapter shall apply to any supervisor or management
official (as defined in paragraphs (10) and (11) of section 7103 of
this title, respectively) who is in a position which is GS-13, 14, or
15 of the General Schedule described in section 5104 of this title.
[(2)(A) Upon application under subparagraph (C) of this para-
graph, the President may, in writing, exclude an agency or any
unit of an agency from the application of this chapter if the Presi-
dent considers such exclusion to be required as a result of condi-
tions arising from?
[(i) the recent establishment of the agency or unit, or the
implementation of a new program,
[(ii) an emergency situation, or
[(iii) any other situation or circumstance.
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[(B) Any exclusion under this paragraph shall not take effect
earlier than 30 calendar days after the President transmits to each
House of the Congress a report describing the agency or unit to be
excluded and the reasons therefor.
[(C) An application for exclusion under this paragraph of an
agency or any unit of an agency shall be filed by the head of the
agency with the Office of Personnel Management, and shall set
forth reasons why the agency or unit should be excluded from this
chapter. The Office shall review the application and reasons, un-
dertake such other review as it considers appropriate to determine
whether the agency or unit should be excluded from the coverage
of this chapter, and upon completion of its review, recommend to
the President whether the agency or unit should be so excluded.
[(D) Any agency or unit which is excluded pursuant to this para-
graph shall, insofar as practicable, make a sustained effort to elimi-
nate the conditions on which the exclusion is based.
[(E) The Office shall periodically review any exclusion from cov-
erage and may at any time recommend to the President that an
exclusion under this paragraph be revoked. The President may at
any time revoke, in writing, any exclusion under this paragraph.
[(3) This chapter shall not apply to individuals employed under
the Office of the Architect of the Capitol or the Botanic Garden.
[? 5402. Merit pay system
[(a) In accordance with the purpose set forth in section 5401(a)(1)
of this title, the Office of Personnel Management shall establish a
merit pay system which shall provide for a range of basic pay for
each grade to which the system applies, which range shall be limit-
ed by the minimum and maximum rates of basic pay payable for
each grade under chapter 53 of this title.
[(b)(1) Under regulations prescribed by the Office, the head of
each agency may provide for increases within the range of basic
pay or any employee covered by the merit pay system.
[(2) Determinations to provide pay increases under this subsec-
tion?
[(A) may take into account individual performance and or-
ganizational accomplishment, and
[(B) shall be based on factors such as?
[(i) any improvement in efficiency, productivity, and
quality of work or service, including any significant reduc-
tion in paperwork;
[(ii) cost efficiency;
[(iii) timeliness of performance; and
[(iv) other indications of the effectiveness, productivity,
and quality of performance of the employees for whom the
employee is responsible;
[(C) shall be subject to review only in accordance with and
to the extent provided by procedures established by the head of
the agency; and
[(D) shall be made in accordance with regulations issued by
the Office which relate to the distribution of increases author-
ized under this subsection.
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[(3) For any fiscal year, the head of any agency may exercise au-
thority under paragraph (1) of this subsection only to the extent of
the funds available for the purpose of this subsection.
[(4) The funds available for the purpose of this subsection to the
head of any agency for any fiscal year shall be determined before
the beginning of the fiscal year by the Office on the basis of the
amount estimated by the Office to be necessary to reflect?
[(A) within-grade step increases and quality step increases
which would have been paid under subchapter III of chapter 53
of this title during the fiscal year to the employees of the
agency covered by the merit pay system if the employees were
not so covered; and
[(B) adjustments under section 5305 of this title which
would have been paid under such subchapter during the fiscal
year to such employees if the employees were not so covered,
less an amount reflecting the adjustment under subsection
(c)(1) of this section rates of basic pay payable to the employees
for the fiscal year.
[(c)(1) Effecitve at the beginning of the first applicable pay
period commencing on or after the first day of the month in which
an adjustment takes effect under section 5305 of this title, the rate
of basic pay for any position under this chapter shall be adjusted
by an amount equal to the greater of?
[(A) one-half of the percentage of the adjustment in the
annual rate of pay which corresponds to the percentage gener-
ally applicable to positions not covered by the merit pay
system in the same grade as the position; or
[(B) such greater amount of such percentage of such adjust-
ment in the annual rate of pay as may be determined by the
Office.
[(2) Any employees whose position is brought under the merit
pay system shall, so long as the employee continues to occupy the
position, be entitled to receive basic pay at a rate of basic pay not
less than the rate the employee was receiving when the position
was brought under the merit pay system, plus any subsequent ad-
justment under paragraph (1) of this subsection.
[(3) No employee to whom this chapter applies may be paid less
than the minimum rate of basic pay of the grade of the employee's
position.
[(d) Under regulations prescribed by the Office, the benefit of
advancement through the range of basic pay for a grade shall be
preseved for any employee covered by the merit pay system whose
continuous service is interrupted in the public interest by service
with the armed forces, or by service in essential non-Government
civilian employment during a period of war or national emergency.
[(e) For the purpose of section 5941 of this title, rates of basic
pay of employees covered by the merit pay system shall be consid-
ered rates of basic pay fixed by statute.
[? 5403. Cash award program
[(a) the head of any agency may pay a cash award to, and incur
necessary expenses for the honorary recognition of, any employee
covered by the merit pay system who?
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[(1) by the employee's suggestion, invention superior accom-
plishment, or other personal effort, contributes to the effiency,
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 the employee's Federal employ-
ment.
[(b) The President may pay a cash award to, and incur necessary
expenses for the honorary recognition of, any employee covered by
the merit pay system who?
[(1) by the employee's suggestion, invention, superior accom-
plishment, 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 an exceptionally meritorious special act or
service in the public interest in connection with or related to
the employee's Federal employment.
A Presidential cash award may be in addition to an agency cash
award under subsection (a) of this section.
[(c) A cash award to any employee under this section is in addi-
tion to the basic pay of the employee under section 5402 of this
title. Acceptance of a cash award under this section constitutes an
agreement that the use by the Government of any idea, method, or
device for which the award is made does not form the basis of any
claim of any nature against the Government by the employee ac-
cepting the award, or the employee's heirs or assigns.
[(d) A cash award to, and expenses for the honorary recognition
of, any employee covered by the merit pay system may be paid from
the fund or appropriation available to the activity primarily bene-
fiting, or the various activities benefiting, from the suggestion, in-
vention, superior accomplishment, or other meritorious effort of
the employee. The head of the agency concerned shall determine
the amount to be contributed by each activity to any agency cash
award under subsection (a) of this section. The President shall de-
termine the amount to be contributed by each activity to a Presi-
dential award under subsection (b) of this section.
[(e) (1) Except as provided in paragraph (2) of this subsection, a
cash award under this section may not exceed $10,000.
[(2) If the head of any agency certifies to the Office of Personnel
Management that the suggestion, invention, superior accomplish-
ment, or other meritorious effort of an employee for which a cash
award is proposed is highly exceptional and unusually outstanding,
a cash award in excess of $10,000 but not in excess of $25,000 may
be awarded to the employee on the approval of the Office.
[(f) The President or the head of an agency may pay a cash
award under this section notwithstanding the death or separation
from the service of an employee, if the suggestion, invention, supe-
rior accomplishment, or other meritorious effort of the employee
for which the award is proposed was made or performed while the
employee was covered by the merit pay system. (Pub. L. 95-454,
Oct 13, 1978, 92. Stat. 1182.)
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[? 5404. Report
[The Office of Personnel Management shall include in each
annual report required by section 1308(a) of this title a report on
the operation of the merit pay system and the cash award program
established under this chapter. The report shall include?
[(1) an analysis of the cost and effectiveness of the merit
pay system and the cash award program; and
[(2) a statement of the agencies and units excluded from the
coverage of this chapter under section 5401(b)(2) of this title,
the reasons for which each exclusion was made, and whether
the exclusion continues to be warranted.
[? 5405. Regulations
[The Office of Personnel Management shall prescribe regula-
tions to carry out the purpose of this chapter.]
CHAPTER 54?PERFORMANCE RECOGNITION
Sec.
5401. Purpose.
5402. Coverage.
5403. Performance management and recognition system.
5404. Cash award program.
5405. Report.
5406. Regulations.
5407. Termination.
? 5401. Purpose
It is the purpose of this chapter to provide for a performance man-
agement and recognition system which shall?
(1) use performance appraisals as the basis for determining
basic pay and performance awards;
(2) within available funds, recognize and reward quality per-
formance by varying levels of performance awards;
(3) within available funds, provide for training to improve ac-
curacy and fairness in the evaluation of performance;
(4) regulate the costs of performance awards by establishing
funding level restrictions; and
(5) provide the means to reduce or withhold pay increases for
less than fully successful performance.
? 5102. Coverage
(a) Except as provided in subsections (b) and (c), this chapter shall
apply to any supervisor or management official (as defined in para-
graphs (10) and (11) of section 7103 of this title, respectively) who is
in a position which is in GS-13, GS-14, or GS-15 of the General
Schedule described in section 5104 of this title.
(b)(1) Upon request filed under paragraph (3) of this subsection,
the President may, in writing, exclude an agency, any unit of an
agency, or any class of employees within any such unit from the ap-
plication of this chapter if the President considers such exclusion to
be required as a result of conditions arising from?
(A) the recent establishment of the agency, unit, or class, or
the implementation of a new program;
(B) an emergency situation; or
(C) any other situation or circumstance.
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(2) any exclusion under this subsection shall not take effect earlier
than 30 calendar days after the President transmits to each house
of the Congress a report describing the agency, unit, or class to be
excluded and the reasons therefor.
(3) A request for exclusion of an agency, any unit of an agency, or
any class of employees within any such unit under this subsection
shall be filed by the head of the agency with the Office of Personnel
Management, and shall set forth reasons why the agency, unit, or
class should be excluded from the application of this chapter. The
Office of Personnel Management shall review the request and rea-
sons therefor, undertake such other review as it considers appropri-
ate to determine whether the agency, unit, or class should be ex-
cluded from the application of this chapter, and .upon completion of
its review, recommend to the President whether the agency, unit, or
class should be so excluded.
(4) Any agency, unit, or class which is excluded pursuant to this
subsection shall, insofar as practicable, make a sustained effort to
eliminate the conditions on which the exclusion is based.
(5) The Office of Personnel Management shall periodically review
any exclusion from coverage and may at any time recommend to the
President that an exclusion under this subsection be revoked. The
President may at any time revoke, in writing, any exclusion under
this subsection.
(c) This chapter shall not apply to individuals employed under
the Office of the Architect of the Capitol, the Library of Congress,
the Botanic Garden, or the Administrative Office of the Courts.
?5403. Performance management and recognition system
(a) In accordance with the purpose set forth in section 5401 of this
title, the Office of Personnel Management shall establish a perform-
ance management and recognition system which shall provide for?
(1) a range of bo.sic pay for each grade to which the system
applies, which range shall be limited by the minimum and
maximum rates of basic pay payable for each grade under sec-
tion 5332 of this title, except as otherwise provided in this sec-
tion;
(2) pay increases within such range, consisting of?
(A) comparability pay increases (under section 5305 of
this title) to the extent provided in subsection (c); and
(B) periodic step-increases, as provided under subsection
(d), based on performance; and
(3) performance awards based on performance, as provided
under subsection (e).
(b) Under regulations prescribed by the Office of Personnel Man-
agement, the head of each agency shall provide for increases within
the range of basic pay for each employee covered by the performance
management and recognition system.
(c)(1) For the purposes of this subsection, the pay adjustment
period applicable to an employee in any fiscal year shall be the
period beginning on the first day of the first period applicable to the
employee commencing on or after the first day of the month in
which an adjustment would take effect under section 5305 of this
title without regard to this section and ending at the close of the
day preceding the beginning of the following pay adjustment period.
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(2) Determinations to provide comparability pay increases under
subsection (a)(2) shall, for any pay adjustment period, be made
based on the level of performance of the employee involved, as most
recently determined under chapter 43 of this title. If the employee's
performance is rated at?
(A) either of the two levels below the fully successful level, the
basic pay for the employee shall not be increased for such pay
adjustment period except as provided in paragraph (3); or
(B) the fully successful level or either of the two levels above
fully successful, the basic pay of the employee shall be increased
by the full comparability increase for such pay adjustment
period.
(3) If the basic pay of an employee is not increased for a pay ad-
justment period by reason of a performance rating at the first level
below the fully successful level, the performance of such employee
shall be rated again under chapter 43 of this title only for the pur-
poses of this subsection six months after the date on which such pay
adjustment period begins. If the performance of such employee
during such period of six months is rated at the fully successful
level or either of the two levels above the fully successful level, the
basic pay of such employee shall be increased for the remainder of
such pay adjustment period effective on the date of performance
rating required by the first sentence of this paragraph.
(4)(A) The comparability increase, for purposes of paragraph (2) or
(3) of this subsection, shall be an amount equal to the basic pay of
the employee involved multiplied by the percentage increase applica-
ble to the grade of the position of such employee under section 5305
of this title at the beginning of the pay adjustment period.
(B) For the purposes of determining the comparability increase ap-
plicable to an employee under subparagraph (A), such employee's
rate of basic pay on the day immediately preceding the pay adjust-
ment period involved shall be used.
(d) An employee covered by this chapter shall receive periodic step-
increases upon the completion of?
(1) each period of 52 calendar weeks of service in pay rates 1,
2, and 3 if the performance of such service is rated under chap-
ter 43 of this title for such period at not less than the fully suc-
cessful level; and
(2)(A) each period of 52 calendar weeks of service in pay rates
4 through 9 if the performance of such service is rated under
such chapter two levels above the fully successful level;
(B) each period of 104 consecutive calendar weeks of service in
pay rates 4 through 9 if the performance of such service is rated
under such chapter at not less than one level above the fully
successful level for the entire period; or
(C) each period of 156 consecutive calendar weeks of service in
pay rates 4 through 9 if the performance of such service is rated
under such chapter at not less than the fully successful level for
the entire period.
(e)(1)(A) If an employee's performance is rated two levels above the
fully successful level, the employee shall be paid a performance
award in accordance with the provisions of this subsection.
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(B) If an employee's performance is rated one level above the fully
successful level, the employee may be paid a performance award in
accordance with the provisions of this subsection.
(C) Any award paid under this paragraph shall be in addition to
any increase in basic pay provided under subsection (c) or (d).
(2) A performance award under this subsection may be made to an
employee in such amount as the head of the agency considers appro-
priate, except that any such award may not exceed an amount equal
to 20 percent of the rate of basic pay payable to such employee.
(3)(A) For any fiscal year, the head of any agency may exercise au-
thority under this subsection only to the extent of the funds availa-
ble for the purposes of this subsection.
(B) Performance awards under this subsection shall be paid from
funds or appropriations available to the agency for pay of employ-
ees.
(C) Subject to the limitation on the maximum amount which may
be paid as a performance award set forth in paragraph (2) of this
subsection, in each fiscal year an agency shall pay performance
awards under this subsection in a total amount equal to not less
than one percent of the aggregate amount of basic pay which is pay-
able to the employees of the agency who are covered by the perform-
ance management and recognition system for such fiscal year. The
aggregate amount of performance awards payable under this subsec-
tion in any fiscal year shall be determined by the Office of Person-
nel Management before the beginning of such fiscal year.
(4) A failure to pay a performance award authorized by paragraph
(1)(B) of this subsection may not be appealed.
(f) Except as provided in subsection (g) of this section, any employ-
ee whose position is brought under the performance management
and recognition system shall, for as long as the employee continues
to occupy the position, be entitled to receive basic pay at a rate of
basic pay not less than the rate the employee was receiving when the
position was brought under the performance management and recog-
nition system.
(g) Under this section, an employee may be paid less than the
minimur_rijAts of basic pay of the grade of the employee's position to
the extent that payment of the lesser amount is the result of a per-
formance evaluation of less than fully successful.
(h) Under regulations prescribed by the Office of Personnel Man-
agement, the benefit of advancement through the range of basic pay
for a grade shall be preserved for any employee who is covered by
the performance management and recognition system and whose
continuous service is interrupted in the public interest by service in
the Armed Forces, or by service in essential non-Government civilian
employment during a period of war or national emergency.
(i) For the purpose of section 5941 of this title, rates of basic pay
of employees covered by the performance management and recogni-
tion system shall be considered rates of basic pay fixed by statute.
?5404. Cash award program
(a) The head of any agency may pay a cash award to, and incur
necessary expenses for the honorary recognition of any employee cov-
ered by the performance management and recognition system who?
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(I) by the employee's suggestion, invention, superior accom-
plishment, 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 the employee's Federal employ-
ment.
(b) The President may pay a cash award to, and incur necessary
expenses for the honorary recognition of any employee covered by
the performance management and recognition system who?
(1) by the employee's suggestion, invention, superior accom-
plishment, 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 an exceptionally meritorious special act or service
in the public interest in connection with or related to the em-
ployee's Federal employment.
A Presidential cash award may be in addition to an agency cash
award under subsection (a) of this section.
(c) A cash award to any employee under this section is in addition
to the basic pay of the employee under section 5403 of this title. Ac-
ceptance of a cash award under this section constitutes an agree-
ment that the use by the Government of any idea, method, or device
for which the award is made does not form the basis of any claim
of any nature against the Government by the employee accepting the
award, or the employee's heirs or assigns.
(d) A cash award to, and expenses for the honorary recognition of
any employee covered by the performance management and recogni-
tion system may be paid from the fund or appropriation available to
the activity primarily benefiting, or the various activities benefiting,
from the suggestion, invention, superior accomplishment, or other
meritorious effort of the employee. The head of the agency concerned
shall determine the amount to be contributed by each activity to any
agency cash award under subsection (a) of this section. The Presi-
dent shall determine the amount to be contributed by each activity
to a Presidential award under subsection (b) of this section.
(e)(1) Except as provided in paragraph (2) of this subsection, a
cash award under this section may not exceed $10,000.
(2) If the head of any agency certifies to the Office of Personnel
Management that the suggestions, invention, superior accomplish-
ment, or other meritorious effort of an employee for which a cash
award is proposed is highly exceptional and unusually outstanding,
a cash award in excess of $10,000 but not in excess of $25,000 may
be awarded to the employee on the approval of the Office.
(f) The President or the head of an agency may pay a cash award
under this section notwithstanding the death or separation from the
service of an employee, if the suggestion, invention, superior accom-
plishment, or other meritorious effort of the employee for which the
award is proposed was made or performed while the employee was
covered by the performance management and recognition system.
? 5405. Report
The Office of Personnel Management shall submit an annual
report to the President and each House of Congress evaluating the
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effectiveness of the performance management and recognition
system. Each such report shall be prepared after consultation with
the respective heads of a sufficient range of agencies so as to permit
an adequate basis for making a meaningful evaluation.
?5406. Regulations
The Office of Personnel Management shall prescribe regulations
to carry out the purpose of this chapter.
?5407. Termination
The performance management and recognition system established
pursuant to section 5403 of this title and the requirement of section
5405 of this title (relating to the annual report of the Office of Per-
sonnel Management on such system) shall not be effective after the
date which is five years after the date of enactment of the Merit Pay
Reform Act of 1983.
CHAPTER 59?ALLOWANCES
SUBCHAPTER IV?MISCELLANEOUS ALLOWANCES
? 5948. Physicians comparability allowances
(g) For the purpose of this section?
(1) "Government physician" means any individual employed
as a physician or dentist who is paid under?
(A) section 5332 of this title, relating to the General
Schedule;
(B) subchapter VIII of chapter 53 of this title, relating to
the Senior Executive Service;
(C) chapter 54 of this title, relating to the [Merit Pay
System]; performance management and recognition system;
CHAPTER 75?ADVERSE ACTIONS
SUBCHAPTER V?SENIOR EXECUTIVE SERVICE
? 7543. Cause of procedure
(a) Under regulations prescribed by the Office of Personnel Man-
agement, an agency may take an action covered by this subchapter
against an employee only for misconduct, neglect of duty, [or mal-
feasance.] malfeasance, or failure to accept a directed reassignment
or to accompany a position in a transfer of function.
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TITLE 10-ARMED FORCES
CHAPTER 83. DEFENSE INTELLIGENCE AGENCY CIVILIAN
PERSONNEL
Sec.
1601. Defense-Intelligence Senior Executive Service.
1602. Defense Intelligence Agency merit pay system.
1603. Limit on pay.
?1602. Defense Intelligence Agency merit pay system
The Secretary of Defense may by regulation establish a merit
pay system for such employees of the Defense Intelligence Agency
as the Secretary considers appropriate. The merit pay system shall
be designed to carry out purposes consistent with those set forth in
section [5401(a)3 5401 of title 5 [5 USCS ? 5401(a)].
TITLE 31 MONEY AND FINANCE
SUBCHAPTER III. PERSONNEL
?731. General
(b) The Comptroller General may establish for appropriate offi-
cers and employees a merit pay system consistent with section
[5401(a)3 5401 of title 5 [5 USCS ? 5401(a)].
CHAPTER 83?RETIREMENT
SUBCHAPTER III?CIVIL SERVICE RETIREMENT
? 8336. Immediate retirement
(d) An employee who?
(1) is separated from the service involuntarily, except by re-
moval for cause on charges of misconduct or delinquency; or
For the purposes of paragraph (1) of this subsection, separation for
failure to accept a directed reassignment or to accompany a position
in a transfer of function shall not be considered to be a removal for
cause or charges of misconduct or delinquency.
(2) while serving in a geographic area designated by the
Office of Personnel Management, is separated from the service
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voluntarily during a period in which the Office determines
that-
0
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