[Material Transmitted:]{.underline}

HHS Instruction 531-4, Within-Grade and Quality Step Increases

[Material Superseded:]{.underline}

HHS Instruction 531-4 (all)

HHS Instruction 531-5 (all)

[Background:]{.underline}

This Instruction has been revised consistent with recent changes in the
organization of HHS, and in support of HHS administrative initiatives
calling for more streamlined rules and greater delegations of authority.

Under this issuance, two Instructions have been consolidated because of
similar subject matter and greater streamlining of the rules.

Any reference to \"OPDIV\" in this Instruction now includes AHCPR,
ATSDR, CDC, FDA, HRSA, IHS, NIH, SAMHSA, the Office of the Secretary,
the program Support Center, HCFA, ACF, and AOA.

This issuance is effective immediately. Implementation of this issuance
must be carried out in accordance with applicable laws, regulations, and
bargaining agreements.

[Filing Instructions:]{.underline}

Remove superseded material and file new material. Post receipt of this
transmittal to the HHS Check List of Transmittals and file this
transmittal in sequential order after the check list.

John J. Callahan

Assistant Secretary for

Management and Budget

INSTRUCTION 531-4

Distribution: MS (PERS): HRFC-001

[HHS INSTRUCTION 531-4]{.underline}

[WITHIN-GRADE AND QUALITY STEP INCREASES]{.underline}

531-4-00 Purpose

10 References

20 Use or Nonuse of Forms

Exhibit 351-4-A Delegations of Authority

531-4-00 PURPOSE

This Instruction states the Department's procedures for granting and
witholding within-grade increases (WIGIs) and granting quality step
increases (QSIs) in recognition of outstanding performance.

531-4-10 REFERENCES

A.  5 U.S. Code 5335 (law - periodic step increases)

B.  5 U.S. Code 5336 (law - additional step increases)

C.  5 CFR Part 531, Subpart D (regulations - within-grade increases)

D.  5 CFR Part 531, Subpart E (regulations - quality step increases)

E.  HHS Instruction 430-4 (Employee Performance Management System:
    Performance Appraisal)

F.  HHS Instruction 430-7 (Performance Appraisal System)

531-4-2O USE OR NONUSE OF FORMS

The Department of Health and Human Services (DHHS) forms used to record
WIGIS (Level of Competence Certification) and QSIS (DHHS Recommendation
for Quality Increases) may continue to be used, OPDIVs may elect to use
comparable forms, or OPDIVs may determine that there is no need for
forms. Even if forms are not used, OPDIVs must have procedures in place
to ensure that all requirements for WIGIS and QSIS are met. If OPDIVs
want the system to generate the WIGI forms, they must continue to use
the DHHS form.

DELEGATIONS OF AUTHORITY

A.  [Authority Delegated]{.underline}

    1.  I hereby delegate to all immediate supervisors, through the
        officials in the line of supervision above them, (a) the
        authority to make favorable and negative level of competence
        determinations for periodic within-grade increases for the
        employees under their supervision and (b) the authority to
        reverse or sustain a negative determination upon request of an
        employee for reconsideration of a negative determination.

    2.  A Head of an OPDIV, including the Assistant Secretary for
        Management and Budget for employees of the Office of the
        Secretary, if he or she elects, may delegate to some official
        other than the immediate supervisor the authority in paragraph
        l(b) above.

    3.  I hereby delegate to all immediate and second level supervisors,
        through the officials in the line of supervision above them, the
        authorities, respectively, to recommend quality step increases
        and to concur and nonconcur in quality step increases for the
        employees under their supervision.

    4.  Information and guidance for exercising the above authorities is
        found in 5 CFR Part 531, Subparts D and E.

B.  [Prior Delegations]{.underline}\
    \
    This delegation supersedes all prior delegations. To the extent that
    previous delegations of authority to make favorable and negative
    level of competence determinations for periodic within-grade
    increases and to reverse or sustain a negative determination, or
    recommend quality step increases and to concur and nonconcur in
    quality step increases are consistent with the provisions of this
    delegation, they may remain in effect until new redelegations are
    made under the authority of this delegation.

C.  [Effective Date]{.underline}\
    \
    This delegation is effective on the date of this transmittal.