[Material Transmitted]{.underline}

HHS Instruction 920-1, Executive Resources Management (pages -4)

HHS Exhibit 920-1-A, Delegations of Authority for Executive Resources
Management (pages 1-2)

HHS Instruction 920-2, The Senior Executive Service: Reduction in Force
and Furlough (pages 1-3)

HHS Exhibit 920-2-A, Format for Recording Competitive Performance
Standing (page 1)

[Material Superseded]{.underline}

The following Instructions (and their Exhibits) are superseded entirely:

Instruction 920-2, Executive Resource Boards (3/88)

Instruction 920-3, SES Performance Review Boards and Performance Awards
(Bonuses) (3/88)

Instruction 920-4, Pay in the SES (6/83)

Instruction 920-5, Presidential Executive Rank Awards (3/88)

Instruction 920-6, Removal, Reinstatement, and Guaranteed Placement in
the SES (1/84)

Instruction 920-7, Reduction in Force in the SES (3/95)

Instruction 920-8, Furloughs in the SES (3/95)

Instruction 920-9, Controls on SES and Equivalent Non-SES Positions
(8/83)

Instruction 920-10, SES Career Merit Staffing Plan (8/84)

Instruction 920-11, Executive Succession Program (10/89)

[Background]{.underline}

In September 1995, the Secretary directed the delegation of most
executive resource authorities to Heads of Operating Divisions (OPDIVs).
The continued exercise of these authorities by an OPDIV is contingent on
the successful implementation of an executive resource management plan.
These delegations have rendered obsolete the greater part of the
Department\'s personnel instructions in the 920 series. Accordingly,
with this transmittal we are abolishing all ten of these instructions
and are replacing them with just two new ones.

The first, a new 920-1, covers the broad area of executive resources
management in the Department. It restates the delegations and plan
requirements mentioned above, so that these will be together with the
few Departmental policies and requirements that are still appropriate.
The coverage of this Instruction is primarily the Senior Executive
Service, but some provisions also refer to equivalent executive
positions.

The second new instruction, 920-2, covers the topics of reduction in
force and furlough in the SES. It updates two instructions issued a year
ago, addressing the need for certain Departmentwide controls in the
context of a decentralized program. Its exhibit is the format for
recording competitive performance standing in the event of a reduction
in force.

[Filing Instructions]{.underline}

File new material. Change Table of Contents (Instruction 002-1) for the
Personnel Manual to reflect changes. Post receipt of this Transmittal to
the HHS Check List of Transmittals and file it in sequential order after
the Check List.

John J. Callahan

Assistant Secretary for

Management and Budget

INSTRUCTIONS 920-1, 920-2

Distribution: MS (PERS) : HRFC-001

**HHS PERSONNEL INSTRUCTION 920-1**

Subject: EXECUTIVE RESOURCES MANAGEMENT

920-1-10 Purpose

20 Coverage

30 References

40 Executive Resources Planning

50 Executive Resources Boards (ERBs) and Merit Staffing

60 Performance Review Boards (PRBs)

70 Executive Resource Allocations

80 Program Information and Accountability

Exhibit 920- 1-A Delegations of Authority for Executive Resources
Management

[920-1-10 PURPOSE]{.underline}

This Instruction provides delegations of authority, requirements, and
guidance for the management of executive resources in the Department.

[920-1-20 COVERAGE]{.underline}

This Instruction applies primarily to the Senior Executive Service.
However, in order to achieve a comprehensive approach to managing
executive resources, some provisions also apply to Senior Level (SL)
Scientific and Professional (ST) and Senior Biomedical Research Service
(SBRS) positions. (Note that there are departmental regulations covering
the SBRS at 42 CFR Part 24).

[902-1-30 REFERENCES]{.underline}

A. 5 U.S.C. 3104 (employment of specially qualified scientific and
professional personnel)

B. 5 U.S.C. Chapter 31, Subchapter II (the Senior Executive Service)

C. 5 U.S.C. 3324 (appointments to positions classified above GS-15)

D. 5 U.S.C. 3325 (appointments to scientific and professional positions)

E. 5 U.S.C. Chapter 33, Subchapter VIII (appointment, reassignment,
transfer, and development in the SES)

F. 5 U.S.C. Chapter 35, Subchapter V (removal, reinstatement, and
guaranteed placement in the SES

G. 5 U.S.C. Chapter 43, Subchapter II (performance appraisal in the SES)

H. 5 U.S.C. 4507 (awarding of ranks in the SES)

(290-1-30 continued) .

I. 5 U.S.C. 5307 (limitations on certain payments)

J. 5 U.S.C. Chapter 53, Subchapter VIII (pay for the SES)

K. 42 U.S.C. 228 (Senior Biomedical Research Service)

L. 5 CFR 213.3202(m) (appointment authority for placements under 5
U.S.C. 3594(b))

M. 5 CFR Part 214 (the Senior Executive Service)

N. 5 CFR Part 317 (employment in the SES)

O. 5 CFR Part 319(employment in senior level and scientific and
professional positions)

P. 5 CFR Part 359 (removal from SES; guaranteed placement in other
personnel systems.

Q. 5 CFR Part 412 (executive and management development)

R. 5 CFR Part 430, Subpart E (performance appraisal for the SES)

S. 5 CFR Part 451 (incentive awards)

T. 5 CFR Part 530, Subpart B (aggregate limitations on pay)

U. CFR Part 534, Subpart C (pay for senior level and scientific and
professional positions)

V. 5 CFR Part 534, Subpart D (pay and performance awards under the SES)

W. 42 CFR Part 24 (SBRS)

X. HHS Personnel Instruction 351-1 (reduction in force)

Y. HHS Personnel Instruction 412-1 (executive development)

Z. HHS Personnel Instruction 430-6 (SES performance appraisal)

AA. HHS Personnel Instruction 920-2 (RIF and furlough in the SES)

[920-1-40]{.underline} EXECUTIVE RESOURCE PLANNING

Each OPDIV is required to prepare, for the Secretary\'s approval, a
performance-based executive resource management plan that reflects OPDIV
implementation of delegated authorities. The plan must include the
following:

-   identification of **\"key positions\"** (positions critical to the
    achievement of mission objectives; selections for these positions
    require the Secretary\'s concurrence)

-   states desired **outcomes** in terms of program improvements,
    including progress towards meeting **affirmative action plan
    requirements**.

-   describes the process to be used for **succession planning**

-   describes planned **monitoring and reporting activities** in such
    areas as pay distribution, executive development and mobility, and
    executive workforce demographics

-   outlines intended **redelegation** of executive resource management
    authorities

-   for OPDIVS with **multiple pay authorities** \-- describes how the
    various pay plans, together with the use of special pay authorities,
    allowances, and bonuses will be integrated (or complement each
    other) in achieving mission objectives.

[920-1-50]{.underline} EXECUTIVE RESOURCE BOARDS (ERBs)

Each OPDIV must establish at least one ERB (except that the
Administration on Aging is included in the Office of the Secretary ERB).
Each ERB must reflect diverse membership and must consist of three or
more SES or equivalent members.

Each OPDIV must establish an SES merit staffing system that meets the
OPM requirements in 5 CFR 317.501 and Departmental policies. The ERB
shall conduct the merit staffing process for initial SES career
appointment. The OPDIV Head may assign other executive resource
management duties to the ERB.

[920-1-60]{.underline} PERFORMANCE REVIEW BOARDS (PRBs)

Each OPDIV must establish at least one PRB consisting of three or more
SES or equivalent members. The PRB is responsible for making
recommendations on the performance of senior executives in the OPDIV in
accordance with the requirements in 5. CFR 430.307 and any Departmental
policies. The OPDIV Head may assign other related duties to the PRB.

[920-1-70]{.underline} EXECUTIVE RESOURCE ALLOCATIONS

The Secretary retains authority to allocate executive position
authorizations (i.e., slots) among the OPDIVs. Each Department must make
a biennial report to OPM requesting allocations for SES and
SES-equivalent (SL, ST) slots. The OHR will provide preparation
instructions to the OPDIVs for this report and for other allocation
reviews that might be required.

For limited appointments (i.e., limited term and limited emergency), the
OPM provides HHS with slot authority equal to two per cent of our
overall SES allocation. The OHR monitors the use of this pool. Each
OPDIV may make limited appointments in a number equal to two percent of
its own allocation, as long as the appointee is currently a career or
career-type employee outside the SES. If an OPDIV needs additional
limited appointment slots, it should request such from the ASMB.

[920-1-80]{.underline} PROGRAM INFORMATION AND ACCOUNTABILITY

Each OPDIV must continually monitor its executive resources management
program to ensure that it supports mission accomplishment by effectively
attracting, retaining, compensating, recognizing, and diversifying its
executive cadre.

By November 1 each year, the Head of each OPDIV will submit a
self-assessment report to the Secretary, through the ASMB, to indicate
accomplishments under the specific performance measures contained in its
executive resources management plan (see 920-1-40,

(920-1-80 continued)

above). Changes from baseline data that have resulted from the exercise
of delegated executive resources management authorities (for such things
as how long it takes to fill vacancies, changes in pay-level alignment,
executive development activities, demographic changes, and other
measures devised by the OPDIV) should be provided to illustrate
progress. OPDIV ERBs should oversee the development of these reports and
should be engaged, on an on-going basis, in assessing the degree to
which its executive resources management program contributes to overall
mission accomplishment.

ASMB will analyze the annual OPDIV reports and recommend to the
Secretary\'s ERB whether authorities delegated to each OPDIV should be
continued, curtailed, or otherwise modified. ASMB will also identify,
and disseminate to others, strategies found to be especially successful.

Overall guidance on program assessment may be found in Instruction
273-1. OHR will provide guidance and technical assistance for the
assessment of compliance and personnel process effectiveness.

DELEGATIONS OF AUTHORITY FOR EXECUTIVE RESOURCES MANAGEMENT

In September 1995, most executive resources authorities were delegated
to the Heads of OPDIVs. The paragraphs below reflect the resulting
status of authorities.

The following authorities are retained by the Secretary:

-   allocation of all slots, for SES, SBRS, SL, and ST, among the OPDIVs

-   establishment of overall bonus pools, within which individual bonus
    decisions will be made

-   approval of all noncareer executive personnel actions

-   nominations of executives for Presidential rank awards

-   approval of the career appointments of current or former noncareer
    appointees

-   approval of Assistant Surgeon General appointments and promotions

-   approval of SBRS pay above Executive Level II

-   concurrence with selections for key executive positions

-   concurrence with selections for executive resource board (ERB)
    membership

The following authorities are delegated to Heads of OPDIVs, with
authority to redelegate:

-   establishment and abolishment of SES positions; administrative
    changes to position descriptions

-   recommend approval of selectee\'s managerial qualifications to the
    U.S. Office of Personnel Management

-   SES career appointments (with Secretarial concurrence for key
    positions)

-   reinstatements into the SES

-   transfers and reassignments

-   details to and from executive-level positions

-   recertification determinations

-   adverse actions

-   initial pay setting and pay adjustments

-   performance bonuses (within established pool amounts) and special
    act cash awards

-   recruitment and relocation bonuses and retention allowances

-   sabbaticals and Intergovernmental Personnel Act assignments

-   alternative work schedules (and flexiplace arrangements)

-   overall management of position establishment and personnel actions
    for SL, ST, and SBRS (Secretarial approval required for SBRS pay
    above Executive Level II)

-   approval of appointment of non-flag Commissioned Officers into SES
    equivalent positions.

(continued on next page)

These delegations must be exercised in accordance with applicable laws,
regulations, and policies of the U.S. Office of Personnel Management and
the Department. Any redelegations must be in writing.

**HHS PERSONNEL INSTRUCTION 920-2**

Subject: SENIOR EXECUTIVE SERVICE: REDUCTION IN FORCE (Section I) and

FURLOUGH (Section II)

[PURP OSE]{.underline}

The purpose of this Instruction is to establish policies and procedures
relating to the reduction in force and furlough of members of the Senior
Executive Service.

REFERENCES -

A. 5 U.S.C. 3595 (reduction if force (RIF) in the SES)

B. 5 U.S.C. 3595a (furlough in the SES)

C. 5 CFR 359 Subpart F (RIF in the SES)

D. 5 CFR 359 Subpart G (guaranteed placement)

E. 5 CFR 359 Subpart H (furlough in the SES)

**SECTION I - REDUCTION IN FORCE**

[COVERAGE]{.underline}

This section applies to all SES **career appointees**. Non-career,
limited term, and limited emergency SES appointees may be removed
without regard to this Instruction.

[POLICY]{.underline}

In a RIF, the objective will be to avoid the separation of affected
career members by placing them in positions for which they qualify.

[PLACEMENT PROCESS]{.underline}

OPDIV Heads have primary responsibility for identifying placement
opportunities for any affected executives from their OPDIV. Placement
efforts should include consideration of every reassignment option
available regardless of geographic location and any emerging needs for
SES positions.

If placement efforts within the OPDIV fail, the Assistant Secretary for
Management and Budget (ASMB) will conduct Department-wide placement
efforts. SES slot allocations may be adjusted to support placements
across OPDIV lines.

[COMPETITIVE RIF PROCEDURES]{.underline}

If the placement of one or more executives in a vacant position is not
possible, ASMB will

apply competitive RIF procedures.

To implement competitive RIF procedures, each OPDIV will compute, and
forward to ASMB, the Competitive Performance Standing (CPS) for each of
its career SES members, including those on IPA assignments or on detail.
The CPS will be computed on the basis of official records reflecting
individual performance recognition. Point values will be assigned in
accordance with the table in Exhibit 920-2-A. Length of service, as
indicated in the exhibit, is used for tie-breaking. Executives serving
an SES probationary period who have not received a performance rating
will be accorded a rating of \"fully satisfactory. \"

ASMB will conduct the process of consolidation. SES employees will be
identified for release from their positions on the basis of their CPS,
beginning with those having the lowest numeric total. ASMB, in
consultation with the OPDIV as to required qualifications, will \"
determine positions for which the affected executive is qualified and
which are encumbered by executives with lower CPS. If there are no such
positions, the executive has exhausted placement opportunities within
the Department. If more than one such position exists, the determination
as to which executive will be released from his/her position will be
based on the CPS totals. Ties will be broken on the basis of length of
career service in the SES andequivalent level Federal civilian
positions. However, appointees who have completed theSES probationary
period must be retained over an appointee who has not if they both
havethe same retention standing. If a tie still exists, it will be
broken on the basis of length of total Federal civilian service. The
placement process will then begin for the newly identified displacee
(with the possibility that not found).

[OPM PRIORITY PLACEMENT]{.underline}

For career executives who cannot the competitive process may be invoked
if a placement is be placed within the Department (through placement or
competitive RIF process), the Department will request the Office of
Personnel Management to place the executive in another Federal agency.
If OPM is unable to effect placement, the cognizant OPDIV will issue the
necessary RIF notice.

[PROCEDURAL REQUIREMENTS]{.underline}

Notice requirements, appeals, records, transfer of function
entitlements, and placement rights are as stated in 5 CFR 359, Subparts
F and G.

**SECTION II - FURLOUGH**

[COVERAGE]{.underline}

This section applies to career members of the SES, including those
seining a probationary period. Furloughs of career members who are
reemployed annuitants, non-career, limited term, and limited emergency
SES appointees may be effected without regard to this Instruction.

[POLICY]{.underline}

The furlough of an SES member will be made only when the OPDIV intends
to bring the member back to work and pay status within one year. A
furlough may not extend more than one year. The competitive areas and
personnel office responsibilities that apply to non-SES reductions in
force will apply to the furlough activity affecting any SES member.

[SHORT FURLOUGHS]{.underline}

For furloughs of career appointees of 30 calendar days or less (or for
22 work days if the furlough does not cover consecutive days), the
procedures that apply to furloughs of non-SES employees who are covered
by 5 CFR 752, Subpart D will be followed.

[LONG FURLOUGHS]{.underline}

For furloughs of over \"30 calendar days, the competitive procedures
that apply to the RIF of SES members will be followed. See Section I of
this Instruction.

**Format for Recording Competitive Performance Standing**

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Name:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Organization:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

[POINTS]{.underline}

I. Presidential Rank Award

-   points credited for 5-year period of award)\
    Distinguished granted FY (60 points) \_\_\_\_\_\_\
    Meritorious, granted FY (40 points) \_\_\_\_\_\_

II\. Performance Award (Bonus)

-   points credited for three most recent performance periods:

> bonus of 11% or higher = 20; 8-10% = 18;
>
> 6-7% = 15; 5% = 12 points)
>
> FY\_\_\_\_\_\_\_\_\_ Rating \_\_\_\_\_\_\_\_ \_\_\_\_\_\_
>
> FY\_\_\_\_\_\_\_\_\_ Rating \_\_\_\_\_\_\_\_ \_\_\_\_\_\_
>
> FY\_\_\_\_\_\_\_\_\_ Rating \_\_\_\_\_\_\_\_ \_\_\_\_\_\_

III\. Performance Rating

-   points credited for three most recent performance periods:

Fully Successful or higher = 4 points,

Minimally Satisfactory = 1 point, Unsatisfactory = 0 points

> FY\_\_\_\_\_\_\_\_ Rating \_\_\_\_\_\_\_\_ \_\_\_\_\_\_
>
> FY\_\_\_\_\_\_\_\_ Rating \_\_\_\_\_\_\_\_ \_\_\_\_\_\_
>
> FY\_\_\_\_\_\_\_\_ Rating \_\_\_\_\_\_\_\_ \_\_\_\_\_\_

TOTAL: \_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Service Length (for tie breaking only) Years Months Days

SES and equivalent\* civilian Federal service: \_\_\_\_\_\_ \_\_\_\_\_\_
\_\_\_\_\_\_

Total Federal service, including SES and equivalent: \_\_\_\_\_\_
\_\_\_\_\_\_ \_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Information recorded
by:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Date
\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\* includes Executive Level, SL, ST, SBRS, and \"supergrade\"