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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1601 Introduced in House (IH)]

108th CONGRESS
  1st Session
                                H. R. 1601

  To provide for reform relating to Federal employment, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 3, 2003

Mrs. Jo Ann Davis of Virginia introduced the following bill; which was 
             referred to the Committee on Government Reform

_______________________________________________________________________

                                 A BILL

 
  To provide for reform relating to Federal employment, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Federal Workforce 
Flexibility Act of 2003''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
        TITLE I--FEDERAL HUMAN RESOURCES MANAGEMENT INNOVATIONS

Sec. 101. Streamlined personnel management demonstration projects.
Sec. 102. Effective date.
     TITLE II--REFORMS RELATING TO FEDERAL HUMAN CAPITAL MANAGEMENT

Sec. 201. Recruitment, relocation, and retention bonuses.
Sec. 202. Streamlined critical pay authority.
Sec. 203. Civil service retirement system computation for part-time 
                            service.
Sec. 204. Corrections relating to pay administration.
TITLE III--REFORMS RELATING TO FEDERAL EMPLOYEE CAREER DEVELOPMENT AND 
                                BENEFITS

Sec. 301. Agency training.
Sec. 302. Annual leave enhancements.

        TITLE I--FEDERAL HUMAN RESOURCES MANAGEMENT INNOVATIONS

SEC. 101. STREAMLINED PERSONNEL MANAGEMENT DEMONSTRATION PROJECTS.

    Chapter 47 of title 5, United States Code, is amended--
            (1) in section 4701--
                    (A) in subsection (a)--
                            (i) by striking ``(a)'';
                            (ii) by striking paragraph (1) and 
                        inserting the following:
            ``(1) `agency' means an Executive agency and any entity 
        that is subject to any provision of this title that could be 
        waived under section 4703, but does not include--
                    ``(A) the Federal Bureau of Investigation, the 
                Central Intelligence Agency, the Defense Intelligence 
                Agency, the National Imagery and Mapping Agency, the 
                National Security Agency, and, as determined by the 
                President, any Executive agency or unit thereof which 
                is designated by the President and which has as its 
                principal function the conduct of foreign intelligence 
                or counterintelligence activities; or
                    ``(B) the General Accounting Office;'';
                            (iii) in paragraph (4), by striking ``and'' 
                        at the end;
                            (iv) by redesignating paragraph (5) as 
                        paragraph (6); and
                            (v) by inserting after paragraph (4) the 
                        following:
            ``(5) `modification' means a significant change in 1 or 
        more of the elements of a demonstration project plan as 
        described in section 4703(b)(1); and''; and
                    (B) by striking subsection (b); and
            (2) in section 4703--
                    (A) in subsection (a)--
                            (i) by striking ``conduct and evaluate 
                        demonstration projects'' and inserting 
                        ``conduct, modify, and evaluate demonstration 
                        projects'';
                            (ii) by striking ``, including any law or 
                        regulation relating to--'' and all that follows 
                        and inserting a period; and
                            (iii) by adding at the end the following: 
                        ``The decision to initiate or modify a project 
                        under this section shall be made by the 
                        Office.'';
                    (B) by striking subsection (b) and inserting the 
                following:
    ``(b) Before conducting or entering into any agreement or contract 
to conduct a demonstration project, the Office shall ensure--
            ``(1) that each project has a plan which describes--
                    ``(A) its purpose;
                    ``(B) the employees to be covered;
                    ``(C) its anticipated outcomes and resource 
                implications, including how the project relates to 
                carrying out the agency's strategic plan, including 
                meeting performance goals and objectives, and 
                accomplishing its mission;
                    ``(D) the personnel policies and procedures the 
                project will use that differ from those otherwise 
                available and applicable, including a specific citation 
                of any provisions of law, rule, or regulation to be 
                waived and a specific description of any contemplated 
                action for which there is a lack of specific authority;
                    ``(E) the method of evaluating the project; and
                    ``(F) the agency's system for ensuring that the 
                project is implemented in a manner consistent with 
                merit system principles;
            ``(2) notification of the proposed project to employees who 
        are likely to be affected by the project;
            ``(3) an appropriate comment period;
            ``(4) publication of the final plan in the Federal 
        Register;
            ``(5) notification of the final project at least 90 days in 
        advance of the date any project proposed under this section is 
        to take effect to employees who are likely to be affected by 
        the project;
            ``(6) publication of any subsequent modification in the 
        Federal Register; and
            ``(7) notification of any subsequent modification to 
        employees who are included in the project.'';
                    (C) in subsection (c)--
                            (i) by striking paragraph (1) and inserting 
                        the following:
            ``(1) any provision of chapter 63 or subpart G of part III 
        of this title;'';
                            (ii) by redesignating paragraphs (4) and 
                        (5) as paragraphs (6) and (7), respectively;
                            (iii) by inserting after paragraph (3) the 
                        following:
            ``(4) section 7342, 7351, or 7353;
            ``(5) the Ethics in Government Act of 1978 (5 U.S.C. 
        App.);''; and
                            (iv) in paragraph (6) as redesignated, by 
                        striking ``paragraph (1), (2), or (3) of this 
                        subsection; or'' and inserting ``paragraphs (1) 
                        through (5);'';
                    (D) by striking subsections (d) and (e) and 
                inserting the following:
    ``(d)(1) Unless terminated at an earlier date in accordance with 
this section, each demonstration project shall terminate at the end of 
the 10-year period beginning on the date on which the project takes 
effect.
    ``(2) On or before the end of the 7-year period beginning on the 
date on which a demonstration project takes effect, the Office shall 
submit a recommendation to Congress on whether Congress should enact 
legislation to make that project permanent.
    ``(e) The Office may terminate a demonstration project under this 
chapter if the Office determines that the project--
            ``(1) is not consistent with merit system principles set 
        forth in section 2301, veterans' preference principles, or the 
        provisions of this chapter; or
            ``(2) otherwise imposes a substantial hardship on, or is 
        not in the best interests of, the public, the Government, 
        employees, or eligibles.''; and
                    (E) by striking subsections (h) and (i) and 
                inserting the following:
    ``(h) Notwithstanding section 2302(e)(1), for purposes of applying 
section 2302(b)(11) in a demonstration project under this chapter, the 
term `veterans' preference requirement' means any of the specific 
provisions of the demonstration project plan that are designed to 
ensure that the project is consistent with veterans' preference 
principles.
    ``(i) The Office shall ensure that each demonstration project is 
evaluated. Each evaluation shall assess--
            ``(1) the project's compliance with the plan developed 
        under subsection (b)(1); and
            ``(2) the project's impact on improving public management.
    ``(j) Upon request of the Director of the Office of Personnel 
Management, agencies shall cooperate with and assist the Office in any 
evaluation undertaken under subsection (i) and provide the Office with 
requested information and reports relating to the conducting of 
demonstration projects in their respective agencies.''.

SEC. 102. EFFECTIVE DATE.

    This title shall take effect 180 days after the date of enactment 
of this Act.

     TITLE II--REFORMS RELATING TO FEDERAL HUMAN CAPITAL MANAGEMENT

SEC. 201. RECRUITMENT, RELOCATION, AND RETENTION BONUSES.

    (a) Bonuses.--
            (1) In general.--Chapter 57 of title 5, United States Code, 
        is amended by striking sections 5753 and 5754 and inserting the 
        following:
``Sec. 5753. Recruitment and relocation bonuses
    ``(a) In this section, the term `employee' has the meaning given 
that term under section 2105, except that such term also includes an 
employee described under subsection (c) of that section.
    ``(b)(1) The Office of Personnel Management may authorize the head 
of an agency to pay a bonus to an individual appointed or moved to a 
position that is likely to be difficult to fill in the absence of such 
a bonus, if the individual--
            ``(A)(i) is newly appointed as an employee of the Federal 
        Government; or
            ``(ii) is currently employed by the Federal Government and 
        moves to a new position in the same geographic area under 
        circumstances described in regulations of the Office; or
            ``(B) is currently employed by the Federal Government and 
        must relocate to accept a position stationed in a different 
        geographic area.
    ``(2) Except as provided by subsection (h), a bonus may be paid 
under this section only to an employee covered by the General Schedule 
pay system established under subchapter III of chapter 53.
    ``(c)(1) Payment of a bonus under this section shall be contingent 
upon the employee entering into a written service agreement to complete 
a period of employment with the agency, not to exceed 4 years. The 
Office may, by regulation, prescribe a minimum service.
    ``(2)(A) The agreement shall include--
            ``(i) the length of the required service period;
            ``(ii) the amount of the bonus;
            ``(iii) the method of payment; and
            ``(iv) other terms and conditions under which the bonus is 
        payable, subject to subsections (d) and (e) and regulations of 
        the Office.
    ``(B) The terms and conditions for paying a bonus, as specified in 
the service agreement, shall include--
            ``(i) the conditions under which the agreement may be 
        terminated before the agreed-upon service period has been 
        completed; and
            ``(ii) the effect of the termination.
    ``(3) The agreement shall be made effective upon employment with 
the agency or movement to a new position or geographic area, as 
applicable, except that a service agreement with respect to a 
recruitment bonus may be made effective at a later date under 
circumstances described in regulations of the Office, such as when 
there is an initial period of formal basic training.
    ``(d)(1) Except as provided in subsection (e), a bonus under this 
section shall not exceed 25 percent of the annual rate of basic pay of 
the employee at the beginning of the service period multiplied by the 
number of years (or fractions thereof) in the service period, not to 
exceed 4 years.
    ``(2) A bonus under this section may be paid as an initial lump 
sum, in installments, as a final lump sum upon the completion of the 
full service period, or in a combination of these forms of payment.
    ``(3) A bonus under this section is not part of the basic pay of an 
employee for any purpose.
    ``(4) Under regulations of the Office, a recruitment bonus under 
this section may be paid to an eligible individual before that 
individual enters on duty.
    ``(e) The Office may authorize the head of an agency to waive the 
limitation under subsection (d)(1) based on a critical agency need, 
subject to regulations prescribed by the Office. Under such a waiver, 
the amount of the bonus may be up to 50 percent of the employee's 
annual rate of basic pay at the beginning of the service period 
multiplied by the number of years (or fractions thereof) in the service 
period, not to exceed 100 percent of the employee's annual rate of 
basic pay at the beginning of the service period.
    ``(f) The Office shall require that, before paying a bonus under 
this section, an agency shall establish a plan for paying recruitment 
bonuses and a plan for paying relocation bonuses, subject to 
regulations prescribed by the Office.
    ``(g) The Office may prescribe regulations to carry out this 
section, including regulations relating to the repayment of a 
recruitment or relocation bonus in appropriate circumstances when the 
agreed-upon service period has not been completed.
    ``(h)(1) At the request of the head of an Executive agency, the 
Office may extend coverage under this section to categories of 
employees within the agency who otherwise would not be covered by this 
section.
    ``(2) The Office shall not extend coverage to the head of an 
Executive agency, including an Executive agency headed by a board or 
other collegial body composed of 2 or more individual members.
``Sec. 5754. Retention bonuses
    ``(a) In this section, the term `employee' has the meaning given 
that term under section 2105, except that such term also includes an 
employee described in subsection (c) of that section.
    ``(b) The Office of Personnel Management may authorize the head of 
an agency to pay a retention bonus to an employee, subject to 
regulations prescribed by the Office, if--
            ``(1) the unusually high or unique qualifications of the 
        employee or a special need of the agency for the employee's 
        services makes it essential to retain the employee; and
            ``(2) the agency determines that, in the absence of a 
        retention bonus, the employee would be likely to leave--
                    ``(A) the Federal service; or
                    ``(B) for a different position in the Federal 
                service under conditions described in regulations of 
                the Office.
    ``(c) The Office may authorize the head of an agency to pay 
retention bonuses to a group of employees in 1 or more categories of 
positions in 1 or more geographic areas, subject to the requirements of 
subsection (b)(1) and regulations prescribed by the Office, if there is 
a high risk that a significant portion of employees in the group would 
be likely to leave in the absence of retention bonuses.
    ``(d) Except as provided in subsection (j), a bonus may be paid 
only to an employee covered by the General Schedule pay system 
established under subchapter III of chapter 53.
    ``(e)(1) Payment of a retention bonus is contingent upon the 
employee entering into a written service agreement with the agency to 
complete a period of employment with the agency.
    ``(2)(A) The agreement shall include--
            ``(i) the length of the required service period;
            ``(ii) the amount of the bonus;
            ``(iii) the method of payment; and
            ``(iv) other terms and conditions under which the bonus is 
        payable, subject to subsections (f) and (g) and regulations of 
        the Office.
    ``(B) The terms and conditions for paying a bonus, as specified in 
the service agreement, shall include--
            ``(i) the conditions under which the agreement may be 
        terminated before the agreed-upon service period has been 
        completed; and
            ``(ii) the effect of the termination.
    ``(3)(A) Notwithstanding paragraph (1), a written service agreement 
is not required if the agency pays a retention bonus in biweekly 
installments and sets the installment payment at the full bonus 
percentage rate established for the employee with no portion of the 
bonus deferred.
    ``(B) If an agency pays a retention bonus in accordance with 
subparagraph (A) and makes a determination to terminate the payments, 
the agency shall provide written notice to the employee of that 
determination. Except as provided in regulations of the Office, the 
employee shall continue to be paid the retention bonus through the end 
of the pay period in which such written notice is provided.
    ``(4) A retention bonus for an employee may not be based on any 
period of such service which is the basis for a recruitment or 
relocation bonus under section 5753.
    ``(f)(1) Except as provided in subsection (g), a retention bonus, 
which shall be stated as a percentage of the employee's basic pay for 
the service period associated with the bonus, may not exceed--
            ``(A) 25 percent of the employee's basic pay if paid under 
        subsection (b); or
            ``(B) 10 percent of an employee's basic pay if paid under 
        subsection (c).
    ``(2) A retention bonus may be paid to an employee in installments 
after completion of specified periods of service or in a single lump 
sum at the end of the full period of service required by the agreement. 
An installment payment may not exceed the product derived from 
multiplying the amount of basic pay earned in the installment period by 
a percentage not to exceed the bonus percentage rate established for 
the employee. If the installment payment percentage is less than the 
bonus percentage rate, the accrued but unpaid portion of the bonus is 
payable as part of the final installment payment to the employee after 
completion of the full service period under the terms of the service 
agreement.
    ``(3) A retention bonus is not part of the basic pay of an employee 
for any purpose.
    ``(g) Upon the request of the head of an agency, the Office may 
waive the limit established under subsection (f)(1) and permit the 
agency head to pay an otherwise eligible employee or category of 
employees retention bonuses of up to 50 percent of basic pay, based on 
a critical agency need.
    ``(h) The Office shall require that, before paying a bonus under 
this section, an agency shall establish a plan for paying retention 
bonuses, subject to regulations prescribed by the Office.
    ``(i) The Office may prescribe regulations to carry out this 
section.
    ``(j)(1) At the request of the head of an Executive agency, the 
Office may extend coverage under this section to categories of 
employees within the agency who otherwise would not be covered by this 
section.
    ``(2) The Office shall not extend coverage under this section to 
the head of an Executive agency, including an Executive agency headed 
by a board or other collegial body composed of 2 or more individual 
members.''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 57 of title 5, United States Code, is 
        amended by striking the item relating to section 5754 and 
        inserting the following:

``5754. Retention bonuses.''.
    (b) Relocation Payments.--Section 407 of the Federal Employees Pay 
Comparability Act of 1990 (5 U.S.C. 5305 note; 104 Stat. 1467) is 
repealed.
    (c) Effective Date and Application.--
            (1) Effective date.--Except as provided under paragraphs 
        (2) and (3), this section shall take effect on the first day of 
        the first applicable pay period beginning on or after 180 days 
        after the date of enactment of this Act.
            (2) Application to agreements.--A recruitment or relocation 
        bonus service agreement that was authorized under section 5753 
        of title 5, United States Code, before the effective date under 
        paragraph (1) shall continue, until its expiration, to be 
        subject to section 5753 as in effect on the day before such 
        effective date.
            (3) Application to allowances.--Payment of a retention 
        allowance that was authorized under section 5754 of title 5, 
        United States Code, before the effective date under paragraph 
        (1) shall continue, subject to section 5754 as in effect on the 
        day before such effective date, until the retention allowance 
        is reauthorized or terminated (but no longer than 1 year after 
        such effective date).

SEC. 202. STREAMLINED CRITICAL PAY AUTHORITY.

    Section 5377 of title 5, United States Code, is amended--
            (1) by striking subsection (c) and inserting the following:
    ``(c) The Office of Personnel Management, in consultation with the 
Office of Management and Budget, may, upon the request of the head of 
an agency, grant authority to fix the rate of basic pay for 1 or more 
positions in such agency in accordance with this section.'';
            (2) in subsection (e)(1), by striking ``Office of 
        Management and Budget'' and inserting ``Office of Personnel 
        Management'';
            (3) by striking subsections (f) and (g) and inserting the 
        following:
    ``(f) The Office of Personnel Management may not authorize the 
exercise of authority under this section with respect to more than 800 
positions at any 1 time, of which not more than 30 may, at any such 
time, be positions the rate of basic pay for which would otherwise be 
determined under subchapter II.
    ``(g) The Office of Personnel Management shall consult with the 
Office of Management and Budget before making any decision to grant or 
terminate any authority under this section.''; and
            (4) in subsection (h), by striking ``The Office of 
        Management and Budget shall report to the Committee on Post 
        Office and Civil Service'' and inserting ``The Office of 
        Personnel Management shall report to the Committee on 
        Government Reform.''.

SEC. 203. CIVIL SERVICE RETIREMENT SYSTEM COMPUTATION FOR PART-TIME 
              SERVICE.

    Section 8339(p) of title 5, United States Code, is amended by 
adding at the end the following:
            ``(3) In the administration of paragraph (1)--
                    ``(A) subparagraph (A) of such paragraph shall 
                apply to any service performed before, on, or after 
                April 7, 1986;
                    ``(B) subparagraph (B) of such paragraph shall 
                apply to all service performed on a part-time or full-
                time basis on or after April 7, 1986; and
                    ``(C) any service performed on a part-time basis 
                before April 7, 1986, shall be credited as service 
                performed on a full-time basis.''.

SEC. 204. CORRECTIONS RELATING TO PAY ADMINISTRATION.

    (a) In General.--Chapter 53 of title 5, United States Code, is 
amended--
            (1) in section 5302, by striking paragraph (8) and 
        inserting the following:
            ``(8) the term `rates of pay under the General Schedule', 
        `rates of pay for the General Schedule', or `scheduled rates of 
        basic pay' means the unadjusted rates of basic pay in the 
        General Schedule as established by section 5332, excluding 
        additional pay of any kind; and'';
            (2) in section 5305--
                    (A) by striking subsection (a) and inserting the 
                following:
    ``(a)(1) Whenever the Office of Personnel Management finds that the 
Government's recruitment or retention efforts with respect to 1 or more 
occupations in 1 or more areas or locations are, or are likely to 
become, significantly handicapped due to any of the circumstances 
described in subsection (b), the Office may establish for the areas or 
locations involved, with respect to individuals in positions paid under 
any of the pay systems referred to in subsection (c), higher minimum 
rates of pay for 1 or more grades or levels, occupational groups, 
series, classes, or subdivisions thereof, and may make corresponding 
increases in all rates of pay range for each such grade or level. 
However, a minimum rate so established may not exceed the maximum rate 
of basic pay (excluding any locality-based comparability payment under 
section 5304 or similar provision of law) for the grade or level by 
more than 30 percent, and no rate may be established under this section 
in excess of the rate of basic pay payable for level IV of the 
Executive Schedule. In the case of individuals not subject to the 
provisions of this title governing appointment in the competitive 
service, the President may designate another agency to authorize 
special rates under this section.
    ``(2) The head of an agency may determine that a category of 
employees of the agency will not be covered by a special rate 
authorization established under this section. The head of an agency 
shall provide written notice to the Office of Personnel Management (or 
other agency designated by the President to authorize special rates) 
which identifies the specific category or categories of employees that 
will not be covered by special rates authorized under this section. If 
the head of an agency removes a category of employees from coverage 
under a special rate authorization after that authorization takes 
effect, the loss of coverage will take effect on the first day of the 
first pay period after the date of the notice.'';
                    (B) in subsection (b), by striking paragraph (4) 
                and inserting the following:
            ``(4) any other circumstances which the Office of Personnel 
        Management (or such agency as the President may designate) 
        considers appropriate.'';
                    (C) in subsection (d)--
                            (i) by striking ``President'' and inserting 
                        ``Office of Personnel Management''; and
                            (ii) by striking ``he'' and inserting ``the 
                        President'';
                    (D) in subsection (e), by striking ``basic pay'' 
                and inserting ``pay'';
                    (E) by striking subsection (f) and inserting the 
                following:
    ``(f) When a schedule of special rates established under this 
section is adjusted under subsection (d), a covered employee's special 
rate will be adjusted in accordance with conversion rules prescribed by 
the Office of Personnel Management or by such agency as the President 
may designate.'';
                    (F) in subsection (g)(1)--
                            (i) by striking ``basic pay'' and inserting 
                        ``pay''; and
                            (ii) by striking ``President (or his 
                        designated agency)'' and inserting ``Office of 
                        Personnel Management (or such agency as the 
                        President may designate)'';
                    (G) by striking subsection (h) and inserting the 
                following:
    ``(h) An employee's entitlement to a rate of pay established under 
this section terminates when the employee is entitled to a higher rate 
of pay (including basic pay as adjusted to include any locality-based 
comparability payment under section 5304 or similar provision of 
law).''; and
                    (H) by adding at the end the following:
    ``(i) When an employee who is receiving a rate of pay established 
under this section moves to a new official duty station at which 
different pay schedules apply, the employee shall be entitled to the 
rates of pay applicable in the new pay area based on the employee's 
position, grade, and step (or relative position in the rate range) 
before the movement, as determined under regulations prescribed by the 
Office of Personnel Management or other agency designated by the 
President under subsection (a). Such pay conversion upon geographic 
movement shall be effected before processing any other simultaneous pay 
action (other than a general pay adjustment).
    ``(j) A rate established under this section shall be considered to 
be part of basic pay for purposes of subchapter III of chapter 83, 
chapter 84, chapter 87, subchapter V of chapter 55, section 5941, and 
for such other purposes as may be expressly provided for by law or as 
the Office of Personnel Management may by regulation prescribe.'';
            (3) in section 5334--
                    (A) in subsection (b), by adding at the end the 
                following:
``If an employee's rate after promotion or transfer is greater than the 
maximum rate of basic pay for the employee's grade, that rate shall be 
treated as a retained rate under section 5363. The Office of Personnel 
Management shall prescribe by regulation the circumstances under which 
and the extent to which special rates under section 5305 (or similar 
provision of law) or locality-adjusted rates under section 5304 (or 
similar provision of law) are considered to be basic pay in applying 
this subsection.''; and
                    (B) by adding at the end the following:
    ``(g) When an employee moves to a new official duty station at 
which different pay schedules apply, the employee shall be entitled to 
the rates of pay applicable in the new pay area based on the employee's 
position, grade, and step (or relative position in the rate range) 
before the  movement. Such pay conversion upon geographic movement 
shall be effected before processing any other simultaneous pay action 
(other than a general pay adjustment).'';
            (4) in section 5361--
                    (A) by striking paragraphs (3) and (4) and 
                redesignating paragraphs (5) through (7) as paragraphs 
                (3) through (5), respectively;
                    (B) in paragraph (4), as redesignated, by striking 
                ``and'' at the end;
                    (C) in paragraph (5), as redesignated, by striking 
                the period and inserting a semicolon; and
                    (D) by adding at the end the following:
            ``(6) `rate of basic pay' means--
                    ``(A) the rate of pay prescribed by law (including 
                regulations) for the position held by an employee 
                before any deductions or additions of any kind, but 
                including--
                            ``(i) any applicable locality-based payment 
                        under section 5304 or similar provision of law;
                            ``(ii) any applicable special salary rate 
                        under section 5305 or similar provision of law; 
                        and
                            ``(iii) any applicable existing retained 
                        rate of pay established under section 5363 or 
                        similar provision of law; and
                    ``(B) in the case of a prevailing rate employee, 
                the scheduled rate of pay determined under section 
                5343;
            ``(7) `former highest applicable rate of basic pay' means 
        the highest applicable rate of basic pay payable to the 
        employee immediately before the action that triggers pay 
        retention under section 5363; and
            ``(8) `highest applicable basic pay rate range' means the 
        range of rates of basic pay for the grade or level of the 
        employee's current position with the highest maximum rate, 
        except as otherwise provided in regulations prescribed by the 
        Office of Personnel Management in cases where another rate 
        range provides higher rates only in the lower portion of the 
        range.'';
            (5) in section 5363--
                    (A) in subsection (a), by amending the matter 
                following paragraph (4) to read as follows:
``is entitled to pay retention under the conditions set forth in this 
section. Notwithstanding any other provision of law, this section may 
not be applied to employees whose rate of basic pay is reduced solely 
because of the recomputation of pay upon movement to a new official 
duty station at which different pay schedules apply. When a geographic 
move is accompanied by a simultaneous pay action that reduces the 
employee's rate of basic pay after the employee's pay has been 
recomputed to reflect the geographic move, this section shall be 
applied, if otherwise applicable.''; and
                    (B) by striking subsections (b) and (c) and 
                inserting the following:
    ``(b)(1) If an employee is entitled to pay retention under 
subsection (a), paragraphs (2) and (3) shall apply in determining the 
employee's rate of pay:
    ``(2) If the employee's former highest applicable rate of basic pay 
is less than or equal to the maximum rate of the highest applicable 
basic pay rate range for the employee's current position, the employee 
is entitled to the lowest payable rate of basic pay in that rate range 
that equals or exceeds the former rate, and pay retention ceases to 
apply.
    ``(3) If the employee's former highest applicable rate of basic pay 
exceeds the maximum rate of the highest applicable basic pay rate range 
for the employee's current position, the employee is entitled to a 
retained rate equal to the lesser of--
            ``(A) the employee's former highest applicable rate of 
        basic pay; or
            ``(B) 150 percent of the maximum rate of the highest 
        applicable basic pay rate range for the employee's position.
    ``(c) An employee's retained rate shall be increased at the time of 
any increase in the maximum rate of the highest applicable basic pay 
rate range for the employee's position by 50 percent of the dollar 
increase in that maximum rate.
    ``(d) The rate of pay for an employee who is receiving a retained 
rate under this section and who is moved to a new official duty station 
at which different pay schedules apply shall be determined under 
regulations prescribed by the Office of Personnel Management consistent 
with the purposes of this section.
    ``(e) A retained rate shall be considered part of basic pay for 
purposes of this subchapter and for purposes of subchapter III of 
chapter 83, chapters 84 and 87, subchapter V of chapter 55, section 
5941, and for such other purposes as may be expressly provided for by 
law or as the law or as the Office of Personnel Management may by 
regulation prescribe. For other purposes, the Office shall prescribe by 
regulation what constitutes basic pay for employees receiving a 
retained rate.
    ``(f) Subsections (a) through (e) do not apply (or shall cease to 
apply) to an employee who--
            ``(1) has a break in service of 1 workday or more;
            ``(2) is entitled by operation of this subchapter or 
        chapter 51 or 53 to a rate of basic pay which is equal to or 
        higher than, or declines a reasonable offer of a position the 
        rate of basic pay for which is equal to or higher than, the 
        rate to which the employee is entitled under this section; or
            ``(3) is demoted for personal cause or at the employee's 
        request.''; and
            (6) in section 5365(b) by inserting after ``provisions of 
        this subchapter'' the following: ``(subject to any conditions 
        or limitations the Office may establish)''.
    (b) Special Rates for Law Enforcement Officers.--Section 403(c) of 
the Federal Employees Pay Comparability Act of 1990 (5 U.S.C. 5305 
note; Public Law 101-509) is amended by striking all after ``provision 
of law)'' and inserting ``and shall be basic pay for all purposes. The 
rates shall be adjusted at the time of adjustments in the General 
Schedule to maintain the step linkage set forth in subsection 
(b)(2).''.
    (c) Pay Retention.--Subject to any regulations the Office of 
Personnel Management may prescribe, any employee in a covered pay 
schedule who is receiving a retained rate under section 5363 of title 
5, United States Code, or similar authority on the effective date of 
this Act shall have the pay of that employee converted on that date. 
The newly applicable retained rate shall equal the formerly applicable 
retained rate as adjusted to include any applicable locality-based 
payment under section 5304 of title 5, United States Code, or similar 
provision of law. Any employee in a covered pay system receiving a rate 
that exceeds the maximum rate of the highest applicable basic pay rate 
range for the employee's position (as defined under section 5361(8) of 
that title, as amended by this Act) under any authority shall be 
considered to be receiving a retained rate under section 5363 of that 
title.

TITLE III--REFORMS RELATING TO FEDERAL EMPLOYEE CAREER DEVELOPMENT AND 
                                BENEFITS

SEC. 301. AGENCY TRAINING.

    (a) Training To Accomplish Performance Plans and Strategic Goals.--
Section 4103 of title 5, United States Code, is amended by adding at 
the end the following:
    ``(c) The head of each agency shall--
            ``(1) evaluate each program or plan established, operated, 
        or maintained under subsection (a) with respect to 
        accomplishing specific performance plans and strategic goals in 
        performing the agency mission; and
            ``(2) modify such program or plan to accomplish such plans 
        and goals.''.
    (b) Agency Training Officer; Specific Training Programs.--
            (1) In general.--Chapter 41 of title 5, United States Code, 
        is amended by adding after section 4119 the following:
``Sec. 4120. Agency training officer
    ``Each agency shall appoint or designate a training officer who 
shall be responsible for developing, coordinating, and administering 
training for the agency.
``Sec. 4121. Specific training programs
    ``In consultation with the Office of Personnel Management, each 
head of an agency shall establish--
            ``(1) a comprehensive management succession program to 
        provide training to employees to develop managers for the 
        agency; and
            ``(2) a program to provide training to managers on actions, 
        options, and strategies a manager may use in--
                    ``(A) relating to employees with unacceptable 
                performances; and
                    ``(B) mentoring employees and improving employee 
                performance and productivity.''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 41 of title 5, United States Code, is 
        amended by adding at the end the following:

``4120. Agency training officer.
``4121. Specific training programs.''.

SEC. 302. ANNUAL LEAVE ENHANCEMENTS.

    (a) Accrual of Leave for Newly Hired Federal Employees With 
Qualified Experience.--
            (1) In general.--Section 6303 of title 5, United States 
        Code, is amended by adding at the end the following:
    ``(e)(1) In this subsection, the term `period of qualified non-
Federal service' means any equal period of service performed by an 
individual that--
            ``(A) except for this subsection would not otherwise be 
        service performed by an employee for purposes of subsection 
        (a); and
            ``(B) was performed in a position--
                    ``(i) the duties of which were directly related to 
                the duties of the position in an agency that such 
                individual holds; and
                    ``(ii) which meets such other conditions as the 
                Office of Personnel Management shall prescribe by 
                regulation.
    ``(2) For purposes of subsection (a), the head of an agency may 
deem a period of qualified non-Federal service performed by an 
individual to be a period of service performed as an employee.''.
            (2) Effective date.--This section shall take effect 120 
        days after the date of enactment of this Act and shall only 
        apply to an individual hired on or after that effective date.
    (b) Senior Executive Service Annual Leave Enhancements.--
            (1) In general.--Section 6303(a) of title 5, United States 
        Code, is amended--
                    (A) in paragraph (2), by striking ``and'' at the 
                end;
                    (B) in paragraph (3), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding after paragraph (3) the following:
            ``(4) one day for each full biweekly pay period for an 
        employee in a position paid under section 5376 or 5383, or for 
        an employee in an equivalent category for which the minimum 
        rate of basic pay is greater than the rate payable at GS-15, 
        step 10.''.
            (2) Regulations.--Not later than 120 days after the date of 
        enactment of this Act, the Office of Personnel Management shall 
        prescribe regulations to carry out the amendments made by this 
        subsection.
            (3) Effective dates.--
                    (A) In general.--Paragraph (1) shall take effect 
                120 days after the date of enactment of this Act.
                    (B) Regulations.--Paragraph (2) shall take effect 
                on the date of enactment of this Act.
                                 <all>
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