care, especially for the purpose of helping prevent birth 
defects and pregnancy complications, for individuals in the 
Republic of Belarus and Ukraine affected by the 
Chernobyl disaster. 
SEC. 14. FOREIGN SERVICE PAY FOR PERFORMANCE SYS-
TEM. 
(a) PURPOSE.—The purposes of this section are— 
(1) to recruit, retain, and reward high-per-
forming Foreign Service members required to be 
available for worldwide assignment; 
(2) to ensure performance management that ef-
fectively communicates performance expectations 
and makes meaningful distinctions based upon rel-
ative performance; and 
(3) to institute a worldwide pay system, con-
sistent with the requirement that Foreign Service 
members be available for worldwide assignment. 
(b) FOREIGN SERVICE SCHEDULE.—Section 403 of 
the Foreign Service Act of 1980 (22 U.S.C. 3963) is 
amended to read as follows: 
‘‘§ 403. Foreign service schedule 
‘‘(a) ESTABLISHMENT.—The President shall estab-
lish, and periodically adjust, a Foreign Service Schedule, 
which shall consist of 9 salary classes that apply to mem-
bers of the Service who are citizens of the United States 
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and for whom salary rates are not otherwise provided 
under this chapter. The maximum salary rate for the high-
est class established under this section, which shall be des-
ignated class 1, may not exceed the rate of basic pay for 
level IV of the Executive Schedule under section 5315 of 
title 5, United States Code. 
‘‘(b) ADJUSTMENTS.—Any adjustment in the basic 
salary rates for members of the Service made at the time 
of a schedule adjustment under subsection (a) shall be 
made in accordance with section 406.’’. 
(c) WITHIN CLASS SALARY INCREASES.—Section 
406 of the Foreign Service Act of 1980 (22 U.S.C. 3966) 
is amended to read as follows: 
‘‘§ 406. Within class salary increases 
‘‘(a) DETERMINATION.—The Secretary, in the Sec-
retary’s sole and exclusive discretion, shall determine 
which basic salary rate within a band of rates of pay pre-
scribed by the President under section 403(a) shall be paid 
to members of the Service, taking into account individual 
performance, contribution to the mission of the Depart-
ment, or both, under a rigorous performance management 
system that— 
‘‘(1) makes meaningful distinctions based upon 
relative performance; and 
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‘‘(2) clearly links individual pay and perform-
ance under precepts prescribed by the Secretary. 
‘‘(b) EQUAL BASIC SALARY ADJUSTMENTS.—Not-
withstanding subsection (a), the Secretary, in the Sec-
retary’s sole and exclusive discretion, may provide equal 
basic salary adjustments for all career candidates or other 
members of the Service— 
‘‘(1) whose performance has not been reviewed 
by a selection board under section 602; and 
‘‘(2) who are found to meet the standards of 
performance for their class. 
‘‘(c) 
PERFORMANCE-BASED
SALARY
ADJUST-
MENTS.— 
‘‘(1) IN GENERAL.—For performance-based pay 
adjustments, the Secretary in the Secretary’s sole 
and exclusive discretion, shall annually allocate an 
amount equal to or greater than the sum of— 
‘‘(A) an amount that would be sufficient to 
fund increases under section 406(a) of the For-
eign Service Act as in effect on March 31, 
2008; and 
‘‘(B) the amount necessary to provide for 
pay adjustments based on mission require-
ments, labor market conditions, availability of 
funds, pay adjustments received by employees 
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of other Federal agencies, and any other rel-
evant factors. 
‘‘(2) FLEXIBILITY.—The formula set forth in 
paragraph (1) shall— 
‘‘(A) ensure that employees, in the aggre-
gate, are not disadvantaged in terms of the 
overall amount of pay available as a result of 
conversion to the new foreign service perform-
ance-based compensation system; and 
‘‘(B) provide flexibility to accommodate 
changes in the mix of employees performing 
those 
functions, 
and 
other 
changed 
cir-
cumstances that might impact pay levels. 
‘‘(3) LIMITATION.—No performance-based sal-
ary adjustments authorized by this section may be 
paid to any member of the Service if the perform-
ance of the member falls below the standards of per-
formance for the salary class of the member.’’. 
(d) EXCEPTIONS.— 
(1) LOCALITY
PAYMENTS
FOR
PRIOR
SERV-
ICE.—A member of the Foreign Service may not re-
ceive a locality payment under section 5304 of title 
5, United States Code, for service performed on or 
after the first day of the first pay period beginning 
on or after April 1, 2008. 
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