[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.
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