II 

109TH CONGRESS 

2D SESSION S. 3492 

To strengthen performance management in the Federal Government, to make 

the annual general pay increase for Federal employees contingent on 

performance, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 13, 2006 

Mr. VOINOVICH introduced the following bill; which was read twice and 

referred to the Committee on Homeland Security and Governmental Affairs 

A BILL 

To strengthen performance management in the Federal Government, to make the annual general pay increase for 

Federal employees contingent on performance, and for 

other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Federal Workforce 

5 Performance Appraisal and Management Improvement 

6 Act of 2006’’. 


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1 SEC. 2. PERFORMANCE APPRAISAL SYSTEMS. 

2 Subchapter 1 of chapter 43 of title 5, United States 

3 Code, is amended— 

4 (1) by amending section 4302 to read as fol5 lows: 

6 ‘‘§ 4302. Establishment of performance appraisal sys7 tems 

8 ‘‘(a)(1) Subject to paragraphs (2) and (3), each agen9 cy shall establish 1 or more performance appraisal systems 

10 to promote high performance. 

11 ‘‘(2) In designing and applying a performance ap12 praisal system established under this subsection, each 

13 agency shall— 

14 ‘‘(A) link the system with the strategic goals 

15 and annual performance plan of the agency; 

16 ‘‘(B) involve employees in the development of 

17 their performance standards; 

18 ‘‘(C) provide each employee with a written per19 formance appraisal annually; 

20 ‘‘(D) make meaningful distinctions in perform21 ance; and 

22 ‘‘(E) use the results of performance appraisals 

23 as a basis for training, rewarding, compensating, re24 assigning, promoting, reducing in grade, retaining, 

25 and removing employees. 


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1 ‘‘(3) Consistent with section 4304, each performance 

2 appraisal system established under this subsection shall 

3 be developed with appropriate technical assistance from 

4 the Office of Personnel Management and shall be reviewed 

5 before implementation and from time to time thereafter 

6 by the Director of the Office to determine whether the sys7 tem meets the requirements of this subchapter. The agen8 cy shall promptly take any corrective action directed by 

9 the Director of the Office at any time under section 4304 

10 (b)(3). 

11 ‘‘(b) Under regulations which the Director of the Of12 fice of Personnel Management shall prescribe, each per13 formance appraisal system shall provide for— 

14 ‘‘(1) holding supervisors and managers account15 able in their performance appraisal for effectively 

16 managing the performance of employees, which in17 cludes— 

18 ‘‘(A) assessing performance; 

19 ‘‘(B) providing ongoing feedback and pre20 paring written performance appraisals; 

21 ‘‘(C) addressing poor performance; and 

22 ‘‘(D) promoting and rewarding excellent 

23 performance; 


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1 ‘‘(2) establishing performance standards related 

2 to relevant assigned tasks for each employee or posi3 tion under the system which will permit— 

4 ‘‘(A) the accurate evaluation of perform5 ance on the basis of objective criteria, to the 

6 maximum extent feasible; and 

7 ‘‘(B) making meaningful distinctions in 

8 performance; 

9 ‘‘(3) communicating to each employee at the be10 ginning of each appraisal period the performance 

11 standards and the critical elements of the employee’s 

12 position; 

13 ‘‘(4) evaluating each employee during the ap14 praisal period on such standards; 

15 ‘‘(5) assisting employees in improving unaccept16 able performance; 

17 ‘‘(6) reassigning, reducing in grade, or remov18 ing employees who continue to have unacceptable 

19 performance, but only after an opportunity to dem20 onstrate acceptable performance; 

21 ‘‘(7) establishing multiple levels of summary 

22 performance ratings which provide for making mean23 ingful distinctions in performance, including at 

24 least— 


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1 ‘‘(A) a summary level of fully successful 

2 (or equivalent); 

3 ‘‘(B) a summary level of unacceptable; and 

4 ‘‘(C) a summary level above fully success5 ful; and 

6 ‘‘(8) recognizing and rewarding employees 

7 whose performance so warrants.’’; and 

8 (2) by amending section 4304 to read as fol9 lows: 

10 ‘‘§ 4304. Responsibilities of the Office of Personnel 

11 Management 

12 ‘‘(a) The Office of Personnel Management shall make 

13 technical assistance available to agencies in the develop14 ment of performance appraisal systems. 

15 ‘‘(b)(1) The Director of the Office shall review each 

16 performance appraisal system developed by any agency 

17 under this subchapter prior to its implementation and de18 termine whether the performance appraisal system as de19 signed meets the requirements of this subchapter. 

20 ‘‘(2) The Director of the Office shall— 

21 ‘‘(A) review agency performance appraisal sys22 tems developed under this subchapter from time to 

23 time after their implementation to determine the ex24 tent to which the application of any such system 

25 meets the requirements of this subchapter; and 


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1 ‘‘(B) report to the President and Congress any 

2 finding that an agency has failed to meet those re3 quirements. 

4 ‘‘(3) If the Director of the Office determines that a 

5 system does not meet the requirements of this subchapter 

6 (including regulations prescribed under section 4305), the 

7 Director of the Office shall direct the agency to implement 

8 an appropriate system or to correct operations under the 

9 system, and any such agency shall take any action so re10 quired.’’. 

11 SEC. 3. MANDATORY TRAINING PROGRAMS FOR SUPER12 VISORS. 

13 (a) IN GENERAL.—Section 4121 of title 5, United 

14 States Code, is amended to read as follows: 

15 ‘‘§ 4121. Specific training programs 

16 ‘‘(a) In this section, the term ‘supervisor’ means— 

17 ‘‘(1) a supervisor as defined under section 

18 7103(a)(10); and 

19 ‘‘(2) any other employee as the Director of the 

20 Office may by regulation prescribe. 

21 ‘‘(b) Under operating standards promulgated by, and 

22 in consultation with, the Director of the Office of Per23 sonnel Management, the head of each agency shall estab24 lish— 


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1 ‘‘(1) a comprehensive management succession 

2 program to provide training to employees to develop 

3 managers for the agency; and 

4 ‘‘(2) a program to provide training to super5 visors on actions, options, and strategies a super6 visor may use in— 

7 ‘‘(A) communicating performance expecta8 tions and conducting employee performance ap9 praisals; 

10 ‘‘(B) mentoring employees and improving 

11 employee performance and productivity; 

12 ‘‘(C) dealing with employees whose per13 formance is unacceptable; and 

14 ‘‘(D) otherwise carrying out the duties and 

15 responsibilities of a supervisor. 

16 ‘‘(c)(1) Not later than 1 year after the date on which 

17 an individual is appointed to the position of supervisor, 

18 and every 5 years thereafter, that individual shall be re19 quired to complete the program established under sub20 section (b)(2). 

21 ‘‘(2) Each program established under subsection 

22 (b)(2) shall include provisions under which credit may be 

23 given for periods of similar training previously completed. 


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1 ‘‘(d) The Director of the Office of Personnel Manage2 ment shall prescribe regulations to carry out this sec3 tion.’’. 

4 (b) EFFECTIVE DATE AND APPLICATION.— 

5 (1) IN GENERAL.—The amendments made by 

6 this section shall take effect as provided under sec7 tion 8 and apply to— 

8 (A) each individual appointed to the posi9 tion of a supervisor, as defined under section 

10 4121(a) of title 5, United States Code, (as 

11 added by subsection (a) of this section) on or 

12 after that effective date; and 

13 (B) each individual who is employed in the 

14 position of a supervisor on that effective date as 

15 provided under paragraph (2). 

16 (2) SUPERVISORS ON EFFECTIVE DATE.—Each 

17 individual who is employed in the position of a su18 pervisor on the effective date of this section shall be 

19 required to— 

20 (A) complete the program established 

21 under section 4121(b)(2) of title 5, United 

22 States Code (as added by subsection (a) of this 

23 section), not later than 3 years after the effec24 tive date of this section; and 


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1 (B) complete that program every 5 years 

2 thereafter in accordance with section 4121(c) of 

3 such title. 

4 SEC. 4. PAY RATES AND SYSTEMS. 

5 Chapter 53 of title 5, United States Code, is amend6 ed— 

7 (1) in section 5303, by adding at the end the 

8 following: 

9 ‘‘(h)(1) An employee covered under subchapter III 

10 whose summary rating of performance for the most re11 cently completed appraisal period is below the fully suc12 cessful level, as defined by the Director of the Office of 

13 Personnel Management, may not receive an increase in the 

14 rate of basic pay of that employee as the result of an ad15 justment under this section. The Director shall prescribe 

16 such rules as may be necessary to administer this sub17 section, including rules regarding the treatment of an em18 ployee whose rate of basic pay falls below the minimum 

19 rate of the applicable grade (or between steps of a grade) 

20 and the treatment of an employee whose performance sub21 sequently improves. 

22 ‘‘(2) When a determination is made that an employee 

23 covered under subchapter III will not receive an increase 

24 in the rate of basic pay of that employee because the em25 ployee’s summary rating of performance for the most reVerDate Aug 31 2005 06:00 Jun 16, 2006 Jkt 049200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S3492.IS S3492

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1 cently completed appraisal period is below the fully suc2 cessful level, the employee is entitled to prompt written 

3 notice of that determination and an opportunity for recon4 sideration of the determination within the agency, as spec5 ified in the procedures prescribed by the Director of the 

6 Office of Personnel Management under section 5335(c). 

7 If the determination is affirmed on reconsideration, the 

8 employee is entitled to appeal to the Merit Systems Pro9 tection Board under the same terms and conditions as 

10 specified in such section.’’; 

11 (2) in section 5304, by amending subsection (i) 

12 to read as follows: 

13 ‘‘(i) The Director of the Office of Personnel Manage14 ment shall prescribe regulations, consistent with this sec15 tion, governing the payment of comparability payments to 

16 employees. The regulations shall provide that, at the time 

17 of an increase in a comparability payment, the rate of 

18 basic pay of an employee covered under subchapter III, 

19 or any other pay system designated by the Director, whose 

20 summary rating of performance for the most recently com21 pleted appraisal period is below the fully successful level, 

22 as defined by the Director, shall be reduced by an amount 

23 that results in retaining the employee’s total rate of pay 

24 under this section and sections 5303 and 5304a, as in ef25 fect immediately before any increase under such sections. 


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1 Such a reduction in an employee’s rate of basic pay shall 

2 not be considered a reduction in pay for the purpose of 

3 applying the adverse action procedures under section 

4 7512.’’; 

5 (3) in section 5305, by amending subsection (f) 

6 to read as follows: 

7 ‘‘(f)(1) When a schedule of special rates established 

8 under this section is adjusted under subsection (d), the 

9 special rate of an employee shall be adjusted in accordance 

10 with conversion rules prescribed by the Director of the Of11 fice of Personnel Management (or by such other agency 

12 as the President may designate under the last sentence 

13 of subsection (a)(1)). 

14 ‘‘(2) The conversion rules prescribed under para15 graph (1), shall provide that a covered employee whose 

16 summary rating of performance for the most recently com17 pleted appraisal period is below the fully successful level, 

18 as defined by the Director of the Office of Personnel Man19 agement, may not receive an increase in the special rate 

20 of that employee as the result of an adjustment under sub21 section (d). The Director shall prescribe such rules as may 

22 be necessary to administer this paragraph, including rules 

23 regarding the treatment of an employee whose rate of 

24 basic pay falls below the minimum rate of the applicable 

25 grade (or between pay rates or steps of a grade) and the 


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1 treatment of an employee whose performance subsequently 

2 improves. The rules may provide for reducing an employ3 ee’s rate of basic pay to the extent necessary to prevent 

4 any increase in the employee’s special rate. Such a reduc5 tion in an employee’s rate of basic pay shall not be consid6 ered a reduction in pay for the purpose of applying the 

7 adverse action procedures in section 7512. 

8 ‘‘(3) When a determination is made that a covered 

9 employee will not receive an increase in the special rate 

10 of that employee under this subsection because the em11 ployee’s summary rating of performance for the most re12 cently completed appraisal period is below the fully suc13 cessful level, the employee is entitled to prompt written 

14 notice of that determination and an opportunity for recon15 sideration of the determination within the agency, as spec16 ified in the procedures prescribed by the Director under 

17 section 5335(c). If the determination is affirmed on recon18 sideration, the employee is entitled to appeal to the Merit 

19 Systems Protection Board under the same terms and con20 ditions as specified in such section.’’; 

21 (4) in section 5335— 

22 (A) in subsection (a) by amending sub23 paragraph (B) to read as follows: 

24 ‘‘(B) the employee’s summary rating of 

25 performance for the most recently completed 


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1 appraisal period is at least at the fully success2 ful level, as defined by the Director of the Of3 fice of Personnel Management.’’; and 

4 (B) by amending subsection (c) to read as 

5 follows: 

6 ‘‘(c)(1) When an employee’s summary rating of per7 formance for the most recently completed appraisal period 

8 is below the fully successful level, the pay of that employee 

9 may not be increased under this section. Such an employee 

10 is entitled to prompt written notice of the determination 

11 not to increase the pay of that employee and an oppor12 tunity for reconsideration of the determination within the 

13 agency under uniform procedures prescribed by the Direc14 tor of the Office of Personnel Management. If the deter15 mination is affirmed on reconsideration, the employee is 

16 entitled to appeal to the Merit Systems Protection Board. 

17 If the reconsideration or appeal results in a reversal of 

18 the earlier determination, the new determination super19 sedes the earlier determination and is deemed to have been 

20 made as of the date of the earlier determination. The au21 thority of the Director to prescribe procedures and the en22 titlement of the employee to appeal to the Board do not 

23 apply to a determination made by the Librarian of Con24 gress. 


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1 ‘‘(2) Notwithstanding any other provision of law, an 

2 employee may grieve or appeal the first pay determination 

3 under this subsection or under section 5303(h), 5305(f), 

4 or 5363(b)(2(C) that is based on the employee’s most re5 cent summary rating of performance. An employee may 

6 not grieve or appeal any subsequent pay determination 

7 made that is based on the same summary rating of per8 formance’’; 

9 (5) by amending section 5338 to read as fol10 lows: 

11 ‘‘§ 5338. Regulations 

12 ‘‘The Director of the Office of Personnel Manage13 ment may prescribe regulations necessary for the adminis14 tration of this subchapter. Such regulations shall address 

15 how paysetting rules apply to an employee whose rate of 

16 basic pay is not equal to 1 of the scheduled step rates 

17 as a result of a determination not to increase the rate of 

18 basic pay of that employee under section 5303(h) or 

19 5305(f) or to reduce the rate of basic pay of that employee 

20 under section 5304(i) or 5305(f).’’; 

21 (6) in section 5343 (relating to prevailing rate 

22 wage systems)— 

23 (A) in subsection (e)— 

24 (i) by amending paragraph (2) to read 

25 as follows: 


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1 ‘‘(2) A prevailing rate employee under a regular wage 

2 schedule whose summary rating of performance for the 

3 most recently completed appraisal period is at least at the 

4 fully successful level, as defined by the Director of the Of5 fice of Personnel Management, shall advance automati6 cally to the next higher step within the grade at the begin7 ning of the first applicable pay period following the com8 pletion by that employee of— 

9 ‘‘(A) 26 calendar weeks of service in step 1; 

10 ‘‘(B) 78 calendar weeks of service in step 2; 

11 and 

12 ‘‘(C) 104 calendar weeks of service in each of 

13 steps 3 and 4.’’; 

14 (ii) by amending paragraph (4) to 

15 read as follows: 

16 ‘‘(4) Supervisory wage schedules and special wage 

17 schedules authorized under subsection (c)(3) may have 

18 single or multiple rates or steps according to prevailing 

19 practices in the industry on which the schedule is based. 

20 A prevailing rate employee under a supervisory or special 

21 wage schedule with multiple rates or steps whose summary 

22 rating of performance for the most recently completed ap23 praisal period is at least at the fully successful level, as 

24 defined by the Director of the Office of Personnel Manage25 ment, shall advance automatically to the next higher step 


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1 within the grade at the beginning of the first applicable 

2 pay period following the completion by that employee of 

3 any required waiting period.’’; and 

4 (iii) by adding at the end the fol5 lowing: 

6 ‘‘(5)(A) When a summary rating of performance of 

7 an employee covered under this subchapter for the most 

8 recently completed appraisal period is below the fully suc9 cessful level, as defined by the Director of the Office of 

10 Personnel Management, the employee may not be ad11 vanced to the next higher step within the grade under 

12 paragraph (2) or (4). Such an employee is entitled to 

13 prompt written notice of the determination not to increase 

14 the pay of that employee and an opportunity for reconsid15 eration of the determination within the agency under uni16 form procedures prescribed by the Director of the Office 

17 of Personnel Management. If the determination is af18 firmed on reconsideration, the employee is entitled to ap19 peal to the Merit Systems Protection Board. If the recon20 sideration or appeal results in a reversal of the earlier de21 termination, the new determination supersedes the earlier 

22 determination and is deemed to have been made as of the 

23 date of the earlier determination. 

24 ‘‘(B) Notwithstanding any other provision of law, an 

25 employee may grieve or appeal the first pay determination 


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1 under this paragraph, subsection (g), or section 

2 5363(b)(2)(C) when such determinations are made based 

3 on the same summary rating of performance. An employee 

4 may not grieve or appeal any subsequent pay determina5 tion made that is based on the same summary rating of 

6 performance.’’; and 

7 (B) by adding at the end the following: 

8 ‘‘(g)(1) An employee covered under this subchapter 

9 whose summary rating of performance for the most re10 cently completed appraisal period is below the fully suc11 cessful level, as defined by the Director of the Office of 

12 Personnel Management, may not receive an increase in the 

13 rate of basic pay of that employee as the result of an ad14 justment in any wage schedule established under this sub15 chapter. The Director may prescribe such rules as may 

16 be necessary to administer this subsection, including rules 

17 regarding the treatment of an employee whose rate of 

18 basic pay falls below the minimum rate of the applicable 

19 grade (or between steps of a grade) and the treatment 

20 of an employee whose performance subsequently improves. 

21 ‘‘(2) When a determination is made that a covered 

22 employee will not receive an increase in the rate of basic 

23 pay of that employee at the time of an adjustment in a 

24 wage schedule because the employee’s summary rating of 

25 performance for the most recently completed appraisal peVerDate Aug 31 2005 06:00 Jun 16, 2006 Jkt 049200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S3492.IS S3492

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1 riod is below the fully successful level, the employee is enti2 tled to prompt written notice of that determination and 

3 an opportunity for reconsideration of the determination 

4 within the agency, as specified in the procedures pre5 scribed by the Director of the Office of Personnel Manage6 ment under subsection (e)(5). If the determination is af7 firmed on reconsideration, the employee is entitled to ap8 peal to the Merit Systems Protection Board under the 

9 same terms and conditions as specified under subsection 

10 (e)(5).’’; 

11 (7) in section 5363(b)(2) (relating to pay reten12 tion)— 

13 (A) in subparagraph (B) by striking ‘‘A 

14 rate’’ and inserting ‘‘Except as provided in sub15 paragraph (C), a rate’’; and 

16 (B) by adding at the end the following: 

17 ‘‘(C)(i) An employee’s retained rate may not be in18 creased under subparagraph (B) if the employee’s sum19 mary rating of performance for the most recently com20 pleted appraisal period is below the fully successful level, 

21 as defined by the Director of the Office of Personnel Man22 agement. The Director shall prescribe such rules as may 

23 be necessary to administer this subparagraph, including 

24 rules regarding the treatment of an employee whose per25 formance subsequently improves. 


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1 ‘‘(ii) When a determination is made that an employee 

2 will not receive an increase in the retained rate of that 

3 employee because the employee’s summary rating of per4 formance for the most recently completed appraisal period 

5 is below the fully successful level, the employee is entitled 

6 to prompt written notice of that determination and an op7 portunity for reconsideration of the determination within 

8 the agency, as specified in the procedures prescribed by 

9 the Director of the Office of Personnel Management under 

10 section 5335(c). If the determination is affirmed on recon11 sideration, the employee is entitled to appeal to the Merit 

12 Systems Protection Board under the same terms and con13 ditions as specified under section 5335(c).’’; 

14 (8) in section 5376(b) (relating to pay for cer15 tain senior-level positions)— 

16 (A) in paragraph (2), by striking ‘‘Subject 

17 to paragraph (1)’’ and inserting ‘‘Subject to 

18 paragraphs (1) and (3)’’; and 

19 (B) by adding at the end the following: 

20 ‘‘(3) Notwithstanding any other provision of 

21 this section, an employee covered under this section 

22 whose summary rating of performance for the most 

23 recently completed appraisal period is below the fully 

24 successful level, as defined by the Director of the Of25 fice of Personnel Management, may not receive an 


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1 increase in the rate of basic pay of that employee. 

2 The Director shall prescribe such rules as may be 

3 necessary to administer this paragraph, including 

4 rules regarding the treatment of an employee whose 

5 rate of basic pay falls below the otherwise applicable 

6 minimum rate prescribed by paragraph (1)(A) and 

7 the treatment of an employee whose performance 

8 subsequently improves.’’; 

9 (9) in section 5382(a), in the first sentence, by 

10 inserting ‘‘(except as provided by section 5383(a))’’ 

11 after ‘‘for the Senior Executive Service, and’’; and 

12 (10) in section 5383, by amending subsection 

13 (a) to read as follows: 

14 ‘‘(a) Each appointing authority shall determine, in 

15 accordance with criteria established by the Director of the 

16 Office of Personnel Management, which of the rates within 

17 a range established under section 5382 shall be paid to 

18 each senior executive under such appointing authority. 

19 Such criteria shall provide that a member of the Senior 

20 Executive Service may not receive an increase in the rate 

21 of basic pay of that member if such member’s summary 

22 rating of performance for the most recently completed ap23 praisal period is below the fully successful level, as defined 

24 by the Director. The Director shall prescribe such rules 

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1 ing rules regarding the treatment of a member whose rate 

2 of basic pay falls below the otherwise applicable minimum 

3 rate prescribed by section 5382(a) and the treatment of 

4 a member whose performance subsequently improves.’’. 

5 SEC. 5. SENIOR EXECUTIVE SERVICE PLACEMENT IN 

6 OTHER PERSONNEL SYSTEMS. 

7 Section 3594(c)(2) of title 5, United States Code, is 

8 amended to read as follows: 

9 ‘‘(2)(A) Except as provided in subparagraph (B) of 

10 this paragraph, an employee who is receiving basic pay 

11 under paragraph (1)(B)(ii) or (iii) is entitled to have the 

12 rate of basic pay of the employee increased by 50 percent 

13 of the amount of each increase in the maximum rate of 

14 basic pay for the grade of the position in which the em15 ployee is placed under subsection (a) or (b) until the rate 

16 is equal to the rate in effect under paragraph (1)(B)(i) 

17 for the position in which the employee is placed. 

18 ‘‘(B) A rate of basic pay established under paragraph 

19 (1)(B)(ii) or (iii) may not be increased under subpara20 graph (A) if the employee’s summary rating of perform21 ance for the most recently completed appraisal period is 

22 below the fully successful level, as defined by the Director 

23 of the Office of Personnel Management. The Director shall 

24 prescribe such rules as may be necessary to administer 

25 this subparagraph, including rules regarding the treatVerDate Aug 31 2005 06:00 Jun 16, 2006 Jkt 049200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\S3492.IS S3492

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1 ment of an employee whose performance subsequently im2 proves.’’. 

3 SEC. 6. CERTAIN SENIOR-LEVEL POSITIONS. 

4 (a) LOCALITY PAY.—Section 5304 of title 5, United 

5 States Code, as amended by section 4 of this Act, is fur6 ther amended— 

7 (1) in subsection (g), by amending paragraph 

8 (2) to read as follows: 

9 ‘‘(2) The applicable maximum under this sub10 section shall be level III of the Executive Schedule 

11 for— 

12 ‘‘(A) positions under subparagraphs (A) 

13 and (B) of subsection (h)(1); and 

14 ‘‘(B) any positions under subsection 

15 (h)(1)(C) as the President may determine.’’; 

16 and 

17 (2) in subsection (h)— 

18 (A) in paragraph (1)— 

19 (i) by striking subparagraph (A); 

20 (ii) by redesignating subparagraphs 

21 (B), (C), and (D) as subparagraphs (A), 

22 (B), and (C), respectively; 

23 (iii) in clause (v), by striking ‘‘or’’ at 

24 the end; 


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1 (iv) in clause (vi), by striking the pe2 riod at the end and inserting ‘‘; or’’; and 

3 (v) by adding at the end the following: 

4 ‘‘(vii) a position to which section 5376 

5 applies (relating to certain senior-level and 

6 scientific and professional positions).’’; 

7 (B) in paragraph (2)(B)— 

8 (i) in clause (i)— 

9 (I) by striking ‘‘subparagraphs 

10 (A) through (C)’’ and inserting ‘‘sub11 paragraphs (A) and (B)’’; and 

12 (II) by striking ‘‘or (vi)’’ and in13 serting ‘‘(vi), or (vii)’’; and 

14 (ii) in clause (ii)— 

15 (I) by striking ‘‘paragraph 

16 (1)(D)’’ and inserting ‘‘paragraph 

17 (1)(C)’’; and 

18 (II) by striking ‘‘or (vi)’’ and in19 serting ‘‘(vi), or (vii)’’. 

20 (b) ACCESS TO HIGHER MAXIMUM RATE OF BASIC

21 PAY.—Section 5376(b) of title 5, United States Code, as 

22 amended by section 4 of this Act, is further amended— 

23 (1) in paragraph (1) by amending subpara24 graph (B) to read as follows: 


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1 ‘‘(B) subject to paragraph (4), not greater 

2 than the rate of basic pay payable for level III 

3 of the Executive Schedule.’’; and 

4 (2) by adding at the end the following: 

5 ‘‘(4) In the case of an agency which, under sec6 tion 5307(d), has a performance appraisal system 

7 which, as designed and applied, is certified as mak8 ing meaningful distinctions based on relative per9 formance, paragraph (1)(B) shall apply as if the ref10 erence to ‘level III’ were a reference to ‘level II’. 

11 ‘‘(5) No employee may suffer a reduction in pay 

12 by reason of transfer from an agency with an appli13 cable maximum rate of pay prescribed under para14 graph (4) to an agency with an applicable maximum 

15 rate of pay prescribed under paragraph (1)(B).’’. 

16 (c) AUTHORITY FOR EMPLOYMENT; APPOINTMENTS; 

17 CLASSIFICATION STANDARDS.—Title 5, United States 

18 Code is amended— 

19 (1) in section 3104(a), in the second sentence, 

20 by striking ‘‘prescribes’’ and inserting ‘‘prescribes 

21 and publishes in such form as the Office may deter22 mine’’; 

23 (2) in section 3324(a) by striking ‘‘the Office of 

24 Personnel Management’’ and inserting: ‘‘the Direc25 tor of the Office of Personnel Management on the 


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1 basis of qualification standards developed by the 

2 agency involved in accordance with criteria specified 

3 in regulations prescribed by the Director’’; 

4 (3) in section 3325— 

5 (A) in subsection (a), in the second sen6 tence, by striking ‘‘or its designee for this pur7 pose’’ and inserting the following: ‘‘on the basis 

8 of standards developed by the agency involved 

9 in accordance with criteria specified in regula10 tions prescribed by the Director of the Office of 

11 Personnel Management’’; and 

12 (B) by adding at the end the following: 

13 ‘‘(c) The Director of the Office of Personnel Manage14 ment shall prescribe such regulations as may be necessary 

15 to carry out the purpose of this section.’’; and 

16 (4) in section 5108(a)(2) by inserting ‘‘pub17 lished by the Director of the Office of Personnel 

18 Management in such form as the Office may deter19 mine’’ after ‘‘and procedures’’. 

20 SEC. 7. REGULATIONS. 

21 Not later than 1 year after the date of enactment 

22 of this Act, the Director of the Office of Personnel Man23 agement shall prescribe regulations to carry out this Act, 

24 including the amendments made by this Act. 


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1 SEC. 8. EFFECTIVE DATES AND IMPLEMENTATION. 

2 (a) SECTIONS 2 AND 3.— 

3 (1) EFFECTIVE DATE.—The amendments made 

4 by sections 2 and 3 shall take effect on the earlier 

5 of— 

6 (A) 180 days after the date of enactment 

7 of this Act; or 

8 (B) the effective date of implementing reg9 ulations prescribed by the Director of the Office 

10 of Personnel Management. 

11 (2) SUBMISSIONS.— 

12 (A) PERFORMANCE APPRAISAL SYSTEMS.— 

13 Not later than July 1, 2007, each agency cov14 ered by subchapter I of chapter 43 of title 5, 

15 United States Code, shall submit to the Direc16 tor of the Office of Personnel Management each 

17 performance appraisal system established under 

18 that subchapter so that the Director may deter19 mine whether the system meets the require20 ments of the subchapter. Each submission 

21 under this paragraph shall include all informa22 tion the Director requires in order to make the 

23 determination. 

24 (B) REPORT TO CONGRESS.—Not later 

25 than November 1, 2007, the Director of the Of26 fice of Personnel Management shall submit a 


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1 report regarding the Director’s review under 

2 section 4304(b)(1) of title 5, United States 

3 Code, as amended by section 2 of this Act, to 

4 the President and Congress. 

5 (b) SECTIONS 4 AND 5.—The amendments made by 

6 sections 4 and 5 shall apply with respect to any employee 

7 beginning on the first day of the first pay period following 

8 the completion of 52 weeks after the date on which the 

9 first annual adjustments in rates of basic pay under sec10 tion 5303 of title 5, United States Code, occur following 

11 the date of enactment of this Act. 

12 (c) SECTION 6.— 

13 (1) EFFECTIVE DATE.—The amendments made 

14 by section 6 shall take effect on the first day of the 

15 first pay period beginning on or after the 180th day 

16 following the date of enactment of this Act. 

17 (2) NO REDUCTIONS IN RATES OF PAY.— 

18 (A) IN GENERAL.—The amendments made 

19 by section 6 may not result, at the time such 

20 amendments take effect, in a reduction in the 

21 rate of basic pay for an individual holding a po22 sition to which section 5376 of title 5, United 

23 States Code, applies. 

24 (B) DETERMINATION OF RATE OF PAY.— 

25 For the purposes of subparagraph (A), the rate 


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1 of basic pay for an individual described in that 

2 subparagraph shall be deemed to be the rate of 

3 basic pay set for the individual under such sec4 tion 5376, plus applicable locality pay paid to 

5 that individual, as of the effective date under 

6 paragraph (1). 

7 (d) REFERENCES TO MAXIMUM RATES.—Except as 

8 otherwise provided by law, any reference in a provision of 

9 law to the maximum rate under section 5376 of title 5, 

10 United States Code— 

11 (1) as provided before the effective date of the 

12 amendments made by section 6, shall be considered 

13 a reference to the rate of basic pay for level IV of 

14 the Executive Schedule; and 

15 (2) as provided on or after the effective date of 

16 the amendments made by section 6, shall be consid17 ered a reference to— 

18 (A) the rate of basic pay for level III of 

19 the Executive Schedule; or 

20 (B) if the head of the agency responsible 

21 for administering the applicable pay system cer22 tifies that the employees are covered by a per23 formance appraisal system meeting require24 ments established by the Director of the Office 


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1 of Personnel Management, level II of the Exec2 utive Schedule. 

Æ 


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