who are covered by the Foreign Service Schedule es-
tablished under section 403, in the aggregate, are 
not disadvantaged in terms of the overall amount of 
salary available as a result of conversion to the per-
formance-based compensation system authorized by 
this section.’’. 
(d) CESSATION OF CERTAIN PAYMENTS.— 
(1) LOCALITY PAYMENTS.—A member of the 
Foreign Service may not receive a locality-based 
comparability payment under section 5304 of title 5, 
United States Code, for service performed on or 
after the effective date set forth in subsection (f). 
(2) NONFOREIGN
AREA
ALLOWANCE.—Except 
as provided in section 103(d), a member of the For-
eign Service may not receive a nonforeign area al-
lowance under section 5941 of title 5, United States 
Code, for service performed on or after the effective 
date set forth in subsection (f). 
(e) REPORTING REQUIREMENT.—Not later than Feb-
ruary 1, 2011, and February 1 of each of the 4 years 
thereafter, the Secretary of State shall submit to the ap-
propriate congressional committees a report on the imple-
mentation of this section. Each such report shall include— 
(1) an assessment as to whether the purposes 
of this section are being accomplished; 
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(2) the Foreign Service Schedule established 
under section 403 of the Foreign Service Act of 
1980 (as amended by this section) with respect to 
the period covered by the report; 
(3) any regulations and guidelines adopted to 
determine salary adjustments under section 406 of 
the Foreign Service Act of 1980 (as amended by this 
section); 
(4) the allocation last made by the Secretary of 
State for purposes of section 406(d)(1) of the For-
eign Service Act of 1980 (as amended by this sec-
tion); 
(5) a detailed description of the calculations 
made to determine the allocation described in para-
graph (4); 
(6) an assessment of all allowances provided to 
members of the Service under the Foreign Service 
Act of 1980 or under title 5, United States Code, 
and in particular, how such allowances have been or 
will be affected by the amendments to sections 403 
and 406 of the Foreign Service Act of 1980 made 
by this section; 
(7) a detailed description of the size and dis-
tribution of any salary adjustments under section 
406(a) of the Foreign Service Act of 1980 granted 
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with respect to members within each salary class 
during the period covered by the report; and 
(8) an explanation of the rationale for the size 
and distribution of the salary adjustments referred 
to in paragraph (7). 
For purposes of this subsection, the term ‘‘appropriate 
congressional committees’’ means the Committee on For-
eign Affairs, the Committee on Oversight and Government 
Reform, and the Committee on Appropriations of the 
House of Representatives, and the Committee on Foreign 
Relations, the Committee on Homeland Security and Gov-
ernmental Affairs, and the Committee on Appropriations 
of the Senate. 
(f) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on the first 
day of the first pay period beginning on or after April 1, 
2010. 
SEC. 102. TRANSITION TO PERFORMANCE-BASED COM-
PENSATION SYSTEM. 
(a) APPLICABILITY.—This section applies with re-
spect to the period— 
(1) beginning on the first day of the first pay 
period beginning on or after April 1, 2009; and 
(2) ending on the day before the effective date 
described in section 101(f). 
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(b) RULES FOR DETERMINING BASIC SALARY RATE 
DURING PERIOD TO WHICH THIS SECTION APPLIES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the basic salary rate of any member of 
the Foreign Service designated class 1 or below 
shall, for purposes of computing salary payable for 
service performed during the period described in 
subsection (a), be determined in the same manner as 
if this title had not been enacted. 
(2) INTERIM
SCHEDULE
FOR
CERTAIN
MEM-
BERS.— 
(A) IN
GENERAL.—In the case of any 
member of the Foreign Service designated class 
1 or below whose official duty station is located 
in an area for which members of the Foreign 
Service receive neither payments under section 
5304 of title 5, United States Code, nor pay-
ments under section 5941 of such title, the 
basic salary rate payable to such member shall 
be determined by reference to the interim 
schedule established under subparagraph (B), 
rather than the Foreign Service Schedule (as 
established under section 403 of the Foreign 
Service Act of 1980). 
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