SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Congressional Pay for Performance 
Act''.

SEC. 2. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``Federal deficit'' has the meaning given the 
        term deficit by section 3(6) of the Congressional Budget Act of 
        1974 (2 U.S.C. 622(6));
            (2) the term ``deficit target'', as used with respect to a 
        fiscal year, means the maximum allowable Federal deficit for 
        such fiscal year, as set forth in the concurrent resolution on 
        the budget for fiscal year 1996;
            (3) the term ``concurrent resolution on the budget'' has 
        the meaning given such term by section 3(4) of the 
        Congressional Budget Act of 1974 (2 U.S.C. 622(4)); and
            (4) the term ``Member of Congress'' means an individual who 
        holds a position referred to in section 601(a) of the 
        Legislative Reorganization Act of 1946 (2 U.S.C. 31), as 
        amended by section 4.

SEC. 3. PAY AS A FUNCTION OF EFFORTS TO ELIMINATE THE FEDERAL DEFICIT.

    (a) If Deficit Targets Are Not Met.--
            (1) Interim targets.--If, for any of fiscal years 1996 
        through 2001, inclusive, the Federal deficit for such fiscal 
        year exceeds the deficit target for such fiscal year by more 
        than $1 billion, then, effective as of the first day of the 
        first applicable pay period of the first calendar year 
        beginning after the end of such fiscal year, the rate of basic 
        pay for each Member of Congress shall be equal to the rate in 
        effect on the day before the date of the adjustment under this 
        paragraph, reduced by the percentage derived by multiplying 0.5 
        percent by the number of billions of dollars (after rounding to 
        the next lower multiple of $1 billion) by which such target was 
        so exceeded, except that nothing in this paragraph shall cause 
        any rate to be reduced below zero.
            (2) Final target.--If the Federal deficit for fiscal year 
        2002 is $1 billion or greater, then, effective as of the first 
        day of the first applicable pay period in calendar year 2003, 
        the rate of basic pay for each Member of Congress shall be 
        zero.
    (b) If Deficit Targets Are Met.--
            (1) Other than by eliminating the deficit.--Except as 
        provided in paragraph (2), if, for any of fiscal years 1996 
        through 2001, inclusive, the Federal deficit for such year is 
        less than, or within $1 billion of, the deficit target for such 
        fiscal year, then no change shall be made in the rate of basic 
        pay for any Member of Congress based on the size of the Federal 
        deficit for such year.
            (2) By eliminating the deficit.--If, for any of fiscal 
        years 1996 through 2002, inclusive, the Federal deficit for 
such year is less than $1 billion, then, effective as of the first day 
of the first applicable pay period of the first calendar year beginning 
after the end of such fiscal year--
                    (A) the rate of basic pay for each Member of 
                Congress shall be restored to the rate in effect as of 
                December 31, 1995; and
                    (B) this section shall cease to be effective.
    (c) Determining the Size of the Deficit.--For purposes of this 
section, the size of the Federal deficit for any fiscal year shall be 
as determined by the Congressional Budget Office (in writing)--
            (1) on the basis of the Final Monthly Treasury Statement of 
        Receipts and Outlays of the United States Government, published 
        by the Department of the Treasury; and
            (2) excluding any increase in tax revenues, attributable to 
        the fiscal year involved, which occurs by reason of any 
        provision of law enacted after the date of the enactment of 
        this Act.
    (d) Exception.--The rate of basic pay for an individual shall, for 
the duration of such individual's first term of office as a Member of 
Congress, be determined as if this section had never been enacted.
    (e) Suspension in Time of War.--
            (1) In general.--In the event of a war declared by 
        Congress, rates of pay shall be restored to the rates that 
        would then be payable if, and shall be subject to adjustment in 
        the same way as if, this section had never been enacted, 
        subject to paragraph (2).
            (2) End of war.--After any such war ends, the preceding 
        subsections of this section shall again become effective, 
        except that, in applying such subsections--
                    (A) any reference to fiscal year 1996 shall be 
                deemed to be a reference to the first fiscal year 
                beginning after the date on which such war ends; and
                    (B) any reference to any later fiscal year shall be 
                determined accordingly.
        The respective fiscal years to which the deficit targets set 
        forth in any concurrent resolution on the budget for fiscal 
        year 1996 shall be determined in like manner for purposes of so 
        applying such subsections.

SEC. 4. ELIMINATION OF AUTOMATIC ANNUAL PAY ADJUSTMENTS FOR MEMBERS OF 
              CONGRESS.

    (a) In General.--Paragraph (2) of section 601(a) of the Legislative 
Reorganization Act of 1946 (2 U.S.C. 31) is repealed.
    (b) Conforming Amendments.--Section 601(a)(1) of such Act is 
amended--
            (1) by striking ``(a)(1)'' and inserting ``(a)'';
            (2) by redesignating subparagraphs (A), (B), and (C) as 
        paragraphs (1), (2), and (3), respectively; and
            (3) by striking ``, as adjusted by paragraph (2) of this 
        subsection''.
Congressional Pay for Performance Act - Sets forth a formula by which the rate of basic pay for each Member of Congress will be reduced effective as of the first applicable pay period of the first calendar year beginning after the end of a fiscal year from FY 1996 through 2001 for which the Federal deficit exceeds the deficit target by more than $1 billion. 
Reduces such rate to zero if the Federal deficit for FY 2002 is $1 billion or greater, effective as of the first day of the first applicable pay period in calendar year 2003. 
Provides that if the Federal deficit for any of FY 1996 through 2001, inclusive, is less than $1 billion, each Member's salary shall be restored to the rate in effect as of December 31, 1995, and this Act shall cease to be effective. 
Requires, for purposes of this Act, the size of the Federal deficit for any fiscal year to be determined by the Congressional Budget Office (in writing):  (1) on the basis of the Final Monthly Treasury Statement of Receipts and Outlays of the Federal Government, published by the Department of the Treasury; and (2) excluding any increase in tax revenues, attributable to the fiscal year involved, which occurs by reason of any provision of law enacted after this Act's enactment. 
Provides that an individual's salary for the duration of his or her first term of office as a Member of Congress shall be determined as if this Act had never been enacted.   Provides for suspension of this Act in time of war. 
Repeals provisions of the Legislative Reorganization Act of 1946 which provide for automatic annual pay adjustments for Members of Congress.
Congressional Pay for Performance Act