Performance Management and Recognition System Reauthorization Act of 1989
PL 101-103 (H.R.3282), enacted 09/30/1989

103 STAT. 670 
PUBLIC LAW 101-103—SEPT. 30, 1989 
Public Law 101-103 
101st Congress 
An Act 
Sept. 30, 1989 
[H.R. 3282] 
Performance 
Management 
and Recognition 
System 
Reauthorization 
Act of 1989. 
Government 
organization and 
employees. 
5 u s e 5401 note. 
To amend title 5, United States Code, to authorize the continuation of the perform-
ance management and recognition system through March 31, 1991, and for other 
purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SPXTIONl. SHORT TITLP]. 
, 
This Act may be cited as the "Performance Management and 
Recognition System Reauthorization Act of 1989". 
SEC. 2. REAUTHORIZATION. 
Section 5410 of title 5, United States Code, is amended by striking 
"September 30, 1989" and inserting "March 81, 1991". 
SEC. :$. AMENDMENTS RELATING TO MERIT INCREASES. 
(a) AMENDMENTS.—Section 5404 of title 5, United States Code, is 
amended— 
(1) in subsection (a)— 
(A) by striking "applicable" in paragraph (1) and insert-
ing "first"; 
(B) by redesignating paragraphs (2) and (3) as paragraphs 
(3) and (4), respectively; and 
(C) by inserting after paragraph (1) the following: 
"(2) the term 'second reference rate', as used with respect to 
the rate of basic pay of an employee, means the rate equal to 
the sum of— 
"(A) the minimum rate of basic pay provided under sec-
tion 5332 of this title for the grade of the position held by 
such employee; and 
"(B) two-thirds of the difference between the maximum 
rate of basic pay provided for such grade under such section 
and the minimum rate of basic pay so provided;"; and 
(2) in subsection (c)— 
(A) by striking "applicable" in paragraph (1)(A) and 
inserting "first"; and 
(B) by striking subparagraph (B) of paragraph (1) and 
inserting the following: 
"(B) If, on the day before the effective date of an increase under 
this section, the rate of basic pay of the employee equals or exceeds 
the first reference rate but does not equal or exceed the second 
reference rate, and the performance of such employee is rated— 
'd) Tt the level 2 levels above the fully successful level, the 
rate of basic pay of the employee shall be increased by an 
amount equivalent to a merit increase; or 
"(ii) at the fully successful level or the level 1 level above the 
fully successful level, the rate of basic pay of the employee shall 
be increased by an amount equivalent to one-half of a merit 
increase. 
PUBLIC LAW 101-103—SEPT. 30, 1989 
103 STAT. 671 
"(C) If the rate of basic pay of the employee equals or exceeds the 
second reference rate on the day before the effective date of an 
increase under this section, and the performance of such employee is 
rated— 
"(i) at the level 2 levels above the fully successful level, the 
rate of basic pay of the employee shall be increased by an 
amount equivalent to a merit increase; 
"(ii) at the level 1 level above the fully successful level, the 
rate of basic pay of the employee shall be increased by an 
amount equivalent to one-half of a merit increase; or 
"(iii) at the fully successful level, the rate of basic pay of the 
employee shall be increased by an amount equivalent to one-
third of a merit increase." 
(b) EFFECTIVE DATE.—The amendments made by subsection (a) 5 USC 5404 note, 
shall take effect on October 1, 1989, and shall apply with respect to 
any pay increase which becomes effective during the 18-month 
period beginning on that date. 
SEC. 4. AMENDMENTS RELATING TO PERFORMANCE AWARDS. 
Section 5406(c) of title 5, United States Code, is amended— 
(1) by striking subclause (III) of paragraph (2)(A)(i) and insert-
ing the following: 
"(III) shall be 1.15 percent for each of fiscal years 1989, 1990, 
and 1991."; 
(2) in paragraph (2)(A)(ii) by striking "of the 5 fiscal years" 
and inserting "fiscal year"; and 
(3) by adding at the end the following: 
"(3) The estimate under paragraph (l)(A)(ii) for fiscal year 1991 
shall not take into account any period following March 31 of that 
year.". 
SEC. .
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>
. PERFORMANCE IMPROVEMENT PLANS. 
(a) IN GENERAL.—Section 4302a(b) of title 5, United States Code, 
is amended by striking paragraphs (5) and (6) and inserting the 
following: 
"(5) procedures under which any employee whose perform-
ance has been rated below fully successful shall be given a 
performance improvement plan (which shall include, along with 
such other matters as the agency may consider appropriate, a 
description of the types of improvements that the employee 
must demonstrate to attain the fully successful level of perform-
ance) and a reasonable period of time to attain that level; and 
"(6) reassigning, reducing in grade, or removing any employee 
who fails to attain at least the fully successful level once 
aflofded the period under paragraph (5). 
The provisions of section 4303, relating to the reduction in grade or 
removal of an employee for unacceptable performance, shall apply 
with respect to any reduction in grade or removal under paragraph 
(6).". 
(b) EFFECTIVE DATE.—The amendment made by this section shall 
5 usC 4302a 
take effect on October 1, 1989, and shall apply with respect to any note, 
performance determination (under section 4302a(b)(4) of title 5, 
United States Code) given on or after that date. 
103 STAT. 672 
PUBLIC LAW 101-103—SEPT. 30, 1989 
SEC. 6. TEMPORARY CONTINUATION OF PROVISION RELATING TO THE 
SCHEDULE FOR PAYING THE LUMP-SUM CREDIT TO CER-
TAIN ANNUITANTS. 
Section 6001(a) of the Omnibus Budget Reconciliation Act of 1987 
(5 U.S.C. 8843a note) is amended by striking "October 1, 1989" and 
inserting "December 3,1989". 
Approved September 30, 1989. 
LEGISLATIVE HISTORY—H.R. 3282: 
CONGRESSIONAL RECORD, Vol. 135 (1989): 
Sept. 19, considered and passed House. 
Sept. 27, considered and passed Senate, amended. 
Sept. 28, House concurred in Senate amendments.