[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 129 Reported in Senate (RS)]






                                                       Calendar No. 428
108th CONGRESS
  2d Session
                                 S. 129

                          [Report No. 108-223]

  To provide for reform relating to Federal employment, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 9, 2003

 Mr. Voinovich introduced the following bill; which was read twice and 
           referred to the Committee on Governmental Affairs

                            January 27, 2004

               Reported by Ms. Collins, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 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,

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the ``Federal 
Workforce Flexibility Act of 2003''.</DELETED>
<DELETED>    (b) Table of Contents.--The table of contents of this Act 
is as follows:</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
    <DELETED>TITLE I--FEDERAL HUMAN RESOURCES MANAGEMENT INNOVATIONS

<DELETED>Sec. 101. Streamlined personnel management demonstration 
                            projects.
<DELETED>Sec. 102. Effective date.
<DELETED>TITLE II--REFORMS RELATING TO FEDERAL HUMAN CAPITAL MANAGEMENT

<DELETED>Sec. 201. Recruitment, relocation, and retention bonuses.
<DELETED>Sec. 202. Streamlined critical pay authority.
<DELETED>Sec. 203. Civil service retirement system computation for 
                            part-time service.
<DELETED>Sec. 204. Corrections relating to pay administration.
    <DELETED>TITLE III--REFORMS RELATING TO FEDERAL EMPLOYEE CAREER 
                        DEVELOPMENT AND BENEFITS

<DELETED>Sec. 301. Agency training.
<DELETED>Sec. 302. Annual leave enhancements.

         <DELETED>TITLE I--FEDERAL HUMAN RESOURCES MANAGEMENT 
                         INNOVATIONS</DELETED>

<DELETED>SEC. 101. STREAMLINED PERSONNEL MANAGEMENT DEMONSTRATION 
              PROJECTS.</DELETED>

<DELETED>    Chapter 47 of title 5, United States Code, is amended--
</DELETED>
        <DELETED>    (1) in section 4701--</DELETED>
                <DELETED>    (A) in subsection (a)--</DELETED>
                        <DELETED>    (i) by striking ``(a)'';</DELETED>
                        <DELETED>    (ii) by striking paragraph (1) and 
                        inserting the following:</DELETED>
        <DELETED>    ``(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--
        </DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(B) the General Accounting 
                Office;'';</DELETED>
                        <DELETED>    (iii) in paragraph (4), by 
                        striking ``and'' at the end;</DELETED>
                        <DELETED>    (iv) by redesignating paragraph 
                        (5) as paragraph (6); and</DELETED>
                        <DELETED>    (v) by inserting after paragraph 
                        (4) the following:</DELETED>
        <DELETED>    ``(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</DELETED>
                <DELETED>    (B) by striking subsection (b); 
                and</DELETED>
        <DELETED>    (2) in section 4703--</DELETED>
                <DELETED>    (A) in subsection (a)--</DELETED>
                        <DELETED>    (i) by striking ``conduct and 
                        evaluate demonstration projects'' and inserting 
                        ``conduct, modify, and evaluate demonstration 
                        projects'';</DELETED>
                        <DELETED>    (ii) by striking ``, including any 
                        law or regulation relating to--'' and all that 
                        follows and inserting a period; and</DELETED>
                        <DELETED>    (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.'';</DELETED>
                <DELETED>    (B) by striking subsection (b) and 
                inserting the following:</DELETED>
<DELETED>    ``(b) Before conducting or entering into any agreement or 
contract to conduct a demonstration project, the Office shall ensure--
</DELETED>
        <DELETED>    ``(1) that each project has a plan which 
        describes--</DELETED>
                <DELETED>    ``(A) its purpose;</DELETED>
                <DELETED>    ``(B) the employees to be 
                covered;</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(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;</DELETED>
                <DELETED>    ``(E) the method of evaluating the 
                project; and</DELETED>
                <DELETED>    ``(F) the agency's system for ensuring 
                that the project is implemented in a manner consistent 
                with merit system principles;</DELETED>
        <DELETED>    ``(2) notification of the proposed project to 
        employees who are likely to be affected by the 
        project;</DELETED>
        <DELETED>    ``(3) an appropriate comment period;</DELETED>
        <DELETED>    ``(4) publication of the final plan in the Federal 
        Register;</DELETED>
        <DELETED>    ``(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;</DELETED>
        <DELETED>    ``(6) publication of any subsequent modification 
        in the Federal Register; and</DELETED>
        <DELETED>    ``(7) notification of any subsequent modification 
        to employees who are included in the project.'';</DELETED>
                <DELETED>    (C) in subsection (c)--</DELETED>
                        <DELETED>    (i) by striking paragraph (1) and 
                        inserting the following:</DELETED>
        <DELETED>    ``(1) any provision of chapter 63 or subpart G of 
        part III of this title;'';</DELETED>
                        <DELETED>    (ii) by redesignating paragraphs 
                        (4) and (5) as paragraphs (6) and (7), 
                        respectively;</DELETED>
                        <DELETED>    (iii) by inserting after paragraph 
                        (3) the following:</DELETED>
        <DELETED>    ``(4) section 7342, 7351, or 7353;</DELETED>
        <DELETED>    ``(5) the Ethics in Government Act of 1978 (5 
        U.S.C. App.);''; and</DELETED>
                        <DELETED>    (iv) in paragraph (6) as 
                        redesignated, by striking ``paragraph (1), (2), 
                        or (3) of this subsection; or'' and inserting 
                        ``paragraphs (1) through (5);'';</DELETED>
                <DELETED>    (D) by striking subsections (d) and (e) 
                and inserting the following:</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(2) Before the end of the 5-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.</DELETED>
<DELETED>    ``(e) The Office may terminate a demonstration project 
under this chapter if the Office determines that the project--
</DELETED>
        <DELETED>    ``(1) is not consistent with merit system 
        principles set forth in section 2301, veterans' preference 
        principles, or the provisions of this chapter; or</DELETED>
        <DELETED>    ``(2) otherwise imposes a substantial hardship on, 
        or is not in the best interests of, the public, the Government, 
        employees, or eligibles.''; and</DELETED>
                <DELETED>    (E) by striking subsections (h) and (i) 
                and inserting the following:</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(i) The Office shall ensure that each demonstration 
project is evaluated. Each evaluation shall assess--</DELETED>
        <DELETED>    ``(1) the project's compliance with the plan 
        developed under subsection (b)(1); and</DELETED>
        <DELETED>    ``(2) the project's impact on improving public 
        management.</DELETED>
<DELETED>    ``(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.''.</DELETED>

<DELETED>SEC. 102. EFFECTIVE DATE.</DELETED>

<DELETED>    This title shall take effect 180 days after the date of 
enactment of this Act.</DELETED>

     <DELETED>TITLE II--REFORMS RELATING TO FEDERAL HUMAN CAPITAL 
                          MANAGEMENT</DELETED>

<DELETED>SEC. 201. RECRUITMENT, RELOCATION, AND RETENTION 
              BONUSES.</DELETED>

<DELETED>    (a) Bonuses.--</DELETED>
        <DELETED>    (1) In general.--Chapter 57 of title 5, United 
        States Code, is amended by striking sections 5753 and 5754 and 
        inserting the following:</DELETED>
<DELETED>``Sec. 5753. Recruitment and relocation bonuses</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(A)(i) is newly appointed as an employee of the 
        Federal Government; or</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(B) is currently employed by the Federal 
        Government and must relocate to accept a position stationed in 
        a different geographic area.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(2)(A) The agreement shall include--</DELETED>
        <DELETED>    ``(i) the length of the required service 
        period;</DELETED>
        <DELETED>    ``(ii) the amount of the bonus;</DELETED>
        <DELETED>    ``(iii) the method of payment; and</DELETED>
        <DELETED>    ``(iv) other terms and conditions under which the 
        bonus is payable, subject to subsections (d) and (e) and 
        regulations of the Office.</DELETED>
<DELETED>    ``(B) The terms and conditions for paying a bonus, as 
specified in the service agreement, shall include--</DELETED>
        <DELETED>    ``(i) the conditions under which the agreement may 
        be terminated before the agreed-upon service period has been 
        completed; and</DELETED>
        <DELETED>    ``(ii) the effect of the termination.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(3) A bonus under this section is not part of the basic 
pay of an employee for any purpose.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>``Sec. 5754. Retention bonuses</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(2) the agency determines that, in the absence 
        of a retention bonus, the employee would be likely to leave--
        </DELETED>
                <DELETED>    ``(A) the Federal service; or</DELETED>
                <DELETED>    ``(B) for a different position in the 
                Federal service under conditions described in 
                regulations of the Office.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(2)(A) The agreement shall include--</DELETED>
        <DELETED>    ``(i) the length of the required service 
        period;</DELETED>
        <DELETED>    ``(ii) the amount of the bonus;</DELETED>
        <DELETED>    ``(iii) the method of payment; and</DELETED>
        <DELETED>    ``(iv) other terms and conditions under which the 
        bonus is payable, subject to subsections (f) and (g) and 
        regulations of the Office.</DELETED>
<DELETED>    ``(B) The terms and conditions for paying a bonus, as 
specified in the service agreement, shall include--</DELETED>
        <DELETED>    ``(i) the conditions under which the agreement may 
        be terminated before the agreed-upon service period has been 
        completed; and</DELETED>
        <DELETED>    ``(ii) the effect of the termination.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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--
</DELETED>
        <DELETED>    ``(A) 25 percent of the employee's basic pay if 
        paid under subsection (b); or</DELETED>
        <DELETED>    ``(B) 10 percent of an employee's basic pay if 
        paid under subsection (c).</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(3) A retention bonus is not part of the basic pay of an 
employee for any purpose.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(i) The Office may prescribe regulations to carry out 
this section.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.''.</DELETED>
        <DELETED>    (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:</DELETED>

<DELETED>``5754. Retention bonuses.''.
<DELETED>    (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.</DELETED>
<DELETED>    (c) Effective Date and Application.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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).</DELETED>

<DELETED>SEC. 202. STREAMLINED CRITICAL PAY AUTHORITY.</DELETED>

<DELETED>    Section 5377 of title 5, United States Code, is amended--
</DELETED>
        <DELETED>    (1) by striking subsection (c) and inserting the 
        following:</DELETED>
<DELETED>    ``(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.'';</DELETED>
        <DELETED>    (2) in subsection (e)(1), by striking ``Office of 
        Management and Budget'' and inserting ``Office of Personnel 
        Management'';</DELETED>
        <DELETED>    (3) by striking subsections (f) and (g) and 
        inserting the following:</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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</DELETED>
        <DELETED>    (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.''.</DELETED>

<DELETED>SEC. 203. CIVIL SERVICE RETIREMENT SYSTEM COMPUTATION FOR 
              PART-TIME SERVICE.</DELETED>

<DELETED>    Section 8339(p) of title 5, United States Code, is amended 
by adding at the end the following:</DELETED>
        <DELETED>    ``(3) In the administration of paragraph (1)--
        </DELETED>
                <DELETED>    ``(A) subparagraph (A) of such paragraph 
                shall apply to any service performed before, on, or 
                after April 7, 1986;</DELETED>
                <DELETED>    ``(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</DELETED>
                <DELETED>    ``(C) any service performed on a part-time 
                basis before April 7, 1986, shall be credited as 
                service performed on a full-time basis.''.</DELETED>

<DELETED>SEC. 204. CORRECTIONS RELATING TO PAY 
              ADMINISTRATION.</DELETED>

<DELETED>    (a) In General.--Chapter 53 of title 5, United States 
Code, is amended--</DELETED>
        <DELETED>    (1) in section 5302, by striking paragraph (8) and 
        inserting the following:</DELETED>
        <DELETED>    ``(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'';</DELETED>
        <DELETED>    (2) in section 5305--</DELETED>
                <DELETED>    (A) by striking subsection (a) and 
                inserting the following:</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.'';</DELETED>
                <DELETED>    (B) in subsection (b), by striking 
                paragraph (4) and inserting the following:</DELETED>
        <DELETED>    ``(4) any other circumstances which the Office of 
        Personnel Management (or such agency as the President may 
        designate) considers appropriate.'';</DELETED>
                <DELETED>    (C) in subsection (d)--</DELETED>
                        <DELETED>    (i) by striking ``President'' and 
                        inserting ``Office of Personnel Management''; 
                        and</DELETED>
                        <DELETED>    (ii) by striking ``he'' and 
                        inserting ``the President'';</DELETED>
                <DELETED>    (D) in subsection (e), by striking ``basic 
                pay'' and inserting ``pay'';</DELETED>
                <DELETED>    (E) by striking subsection (f) and 
                inserting the following:</DELETED>
<DELETED>    ``(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.'';</DELETED>
                <DELETED>    (F) in subsection (g)(1)--</DELETED>
                        <DELETED>    (i) by striking ``basic pay'' and 
                        inserting ``pay''; and</DELETED>
                        <DELETED>    (ii) by striking ``President (or 
                        his designated agency)'' and inserting ``Office 
                        of Personnel Management (or such agency as the 
                        President may designate)'';</DELETED>
                <DELETED>    (G) by striking subsection (h) and 
                inserting the following:</DELETED>
<DELETED>    ``(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</DELETED>
                <DELETED>    (H) by adding at the end the 
                following:</DELETED>
<DELETED>    ``(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).</DELETED>
<DELETED>    ``(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.'';</DELETED>
        <DELETED>    (3) in section 5334--</DELETED>
                <DELETED>    (A) in subsection (b), by adding at the 
                end the following:</DELETED>
<DELETED>``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</DELETED>
                <DELETED>    (B) by adding at the end the 
                following:</DELETED>
<DELETED>    ``(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).'';</DELETED>
        <DELETED>    (4) in section 5361--</DELETED>
                <DELETED>    (A) by striking paragraphs (3) and (4) and 
                redesignating paragraphs (5) through (7) as paragraphs 
                (3) through (5), respectively;</DELETED>
                <DELETED>    (B) in paragraph (4), as redesignated, by 
                striking ``and'' at the end;</DELETED>
                <DELETED>    (C) in paragraph (5), as redesignated, by 
                striking the period and inserting a semicolon; 
                and</DELETED>
                <DELETED>    (D) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(6) `rate of basic pay' means--</DELETED>
                <DELETED>    ``(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--</DELETED>
                        <DELETED>    ``(i) any applicable locality-
                        based payment under section 5304 or similar 
                        provision of law;</DELETED>
                        <DELETED>    ``(ii) any applicable special 
                        salary rate under section 5305 or similar 
                        provision of law; and</DELETED>
                        <DELETED>    ``(iii) any applicable existing 
                        retained rate of pay established under section 
                        5363 or similar provision of law; and</DELETED>
                <DELETED>    ``(B) in the case of a prevailing rate 
                employee, the scheduled rate of pay determined under 
                section 5343;</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(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.'';</DELETED>
        <DELETED>    (5) in section 5363--</DELETED>
                <DELETED>    (A) in subsection (a), by amending the 
                matter following paragraph (4) to read as 
                follows:</DELETED>
<DELETED>``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</DELETED>
                <DELETED>    (B) by striking subsections (b) and (c) 
                and inserting the following:</DELETED>
<DELETED>    ``(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:</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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--</DELETED>
        <DELETED>    ``(A) the employee's former highest applicable 
        rate of basic pay; or</DELETED>
        <DELETED>    ``(B) 150 percent of the maximum rate of the 
        highest applicable basic pay rate range for the employee's 
        position.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(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.</DELETED>
<DELETED>    ``(f) Subsections (a) through (e) do not apply (or shall 
cease to apply) to an employee who--</DELETED>
        <DELETED>    ``(1) has a break in service of 1 workday or 
        more;</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(3) is demoted for personal cause or at the 
        employee's request.''; and</DELETED>
        <DELETED>    (6) in section 5365(b) by inserting after 
        ``provisions of this subchapter'' the following: ``(subject to 
        any conditions or limitations the Office may 
        establish)''.</DELETED>
<DELETED>    (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).''.</DELETED>
<DELETED>    (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.</DELETED>

    <DELETED>TITLE III--REFORMS RELATING TO FEDERAL EMPLOYEE CAREER 
                   DEVELOPMENT AND BENEFITS</DELETED>

<DELETED>SEC. 301. AGENCY TRAINING.</DELETED>

<DELETED>    (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:</DELETED>
<DELETED>    ``(c) The head of each agency shall--</DELETED>
        <DELETED>    ``(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</DELETED>
        <DELETED>    ``(2) modify such program or plan to accomplish 
        such plans and goals.''.</DELETED>
<DELETED>    (b) Agency Training Officer; Specific Training Programs.--
</DELETED>
        <DELETED>    (1) In general.--Chapter 41 of title 5, United 
        States Code, is amended by adding after section 4119 the 
        following:</DELETED>
<DELETED>``Sec. 4120. Agency training officer</DELETED>
<DELETED>    ``Each agency shall appoint or designate a training 
officer who shall be responsible for developing, coordinating, and 
administering training for the agency.</DELETED>
<DELETED>``Sec. 4121. Specific training programs</DELETED>
<DELETED>    ``In consultation with the Office of Personnel Management, 
each head of an agency shall establish--</DELETED>
        <DELETED>    ``(1) a comprehensive management succession 
        program to provide training to employees to develop managers 
        for the agency; and</DELETED>
        <DELETED>    ``(2) a program to provide training to managers on 
        actions, options, and strategies a manager may use in--
        </DELETED>
                <DELETED>    ``(A) relating to employees with 
                unacceptable performances; and</DELETED>
                <DELETED>    ``(B) mentoring employees and improving 
                employee performance and productivity.''.</DELETED>
        <DELETED>    (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:</DELETED>

<DELETED>``4120. Agency training officer.
<DELETED>``4121. Specific training programs.''.

<DELETED>SEC. 302. ANNUAL LEAVE ENHANCEMENTS.</DELETED>

<DELETED>    (a) Accrual of Leave for Newly Hired Federal Employees 
With Qualified Experience.--</DELETED>
        <DELETED>    (1) In general.--Section 6303 of title 5, United 
        States Code, is amended by adding at the end the 
        following:</DELETED>
<DELETED>    ``(e)(1) In this subsection, the term `period of qualified 
non-Federal service' means any equal period of service performed by an 
individual that--</DELETED>
        <DELETED>    ``(A) except for this subsection would not 
        otherwise be service performed by an employee for purposes of 
        subsection (a); and</DELETED>
        <DELETED>    ``(B) was performed in a position--</DELETED>
                <DELETED>    ``(i) the duties of which were directly 
                related to the duties of the position in an agency that 
                such individual holds; and</DELETED>
                <DELETED>    ``(ii) which meets such other conditions 
                as the Office of Personnel Management shall prescribe 
                by regulation.</DELETED>
<DELETED>    ``(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.''.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (b) Senior Executive Service Annual Leave Enhancements.--
</DELETED>
        <DELETED>    (1) In general.--Section 6303(a) of title 5, 
        United States Code, is amended--</DELETED>
                <DELETED>    (A) in paragraph (2), by striking ``and'' 
                at the end;</DELETED>
                <DELETED>    (B) in paragraph (3), by striking the 
                period at the end and inserting ``; and''; 
                and</DELETED>
                <DELETED>    (C) by adding after paragraph (3) the 
                following:</DELETED>
        <DELETED>    ``(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.''.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (3) Effective dates.--</DELETED>
                <DELETED>    (A) In general.--Paragraph (1) shall take 
                effect 120 days after the date of enactment of this 
                Act.</DELETED>
                <DELETED>    (B) Regulations.--Paragraph (2) shall take 
                effect on the date of enactment of this Act.</DELETED>

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--REFORMS RELATING TO FEDERAL HUMAN CAPITAL MANAGEMENT

Sec. 101. Recruitment, relocation, and retention bonuses.
Sec. 102. Streamlined critical pay authority.
Sec. 103. Civil service retirement system computation for part-time 
                            service.
Sec. 104. Retirement service credit for cadet or midshipman service.
Sec. 105. Senior Executive Service authority for White House Office of 
                            Administration.

 TITLE II--REFORMS RELATING TO FEDERAL EMPLOYEE CAREER DEVELOPMENT AND 
                                BENEFITS

Sec. 201. Agency training.
Sec. 202. Annual leave enhancements.
Sec. 203. Compensatory time off for travel.

     TITLE I--REFORMS RELATING TO FEDERAL HUMAN CAPITAL MANAGEMENT

SEC. 101. RECRUITMENT, RELOCATION, AND RETENTION BONUSES.

    (a) Bonuses.--
            (1) In general.--Chapter 57 of title 5, United States Code, 
        is amended by inserting after section 5754 the following:
``Sec. 5754a. 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) A bonus may not be paid under this section to an individual 
who is appointed to, or who holds--
            ``(A) a position to which an individual is appointed by the 
        President, by and with the advice and consent of the Senate;
            ``(B) a position in the Senior Executive Service as a 
        noncareer appointee (as such term is defined under section 
        3132(a)); or
            ``(C) a position which has been excepted from the 
        competitive service by reason of its confidential, policy-
        determining, policy-making, or policy-advocating character.
    ``(i)(1) The Office of Personnel Management shall submit an annual 
report on bonuses paid under this section to the Committee on 
Governmental Affairs of the Senate and the Committee on Government 
Reform of the House of Representatives.
    ``(2) Each report submitted under this subsection shall include the 
use by each agency of recruitment and relocation bonuses, including, 
with respect to each agency and each type of bonus, the number and 
amount of bonuses by grade (including the General Schedule, the Senior 
Executive Service, and positions on the Executive Schedule).
    ``(j)(1) An individual may not be paid a recruitment bonus under 
this section and a recruitment bonus under section 5753.
    ``(2) An individual may not be paid a relocation bonus under this 
section and a relocation bonus under section 5753.
``Sec. 5754b. 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 or 5754a.
    ``(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) A bonus may not be paid under this section to an employee who 
holds--
            ``(A) a position to which an individual is appointed by the 
        President, by and with the advice and consent of the Senate;
            ``(B) a position in the Senior Executive Service as a 
        noncareer appointee (as such term is defined under section 
        3132(a)); or
            ``(C) a position which has been excepted from the 
        competitive service by reason of its confidential, policy-
        determining, policy-making, or policy-advocating character.
    ``(k)(1) The Office of Personnel Management shall submit an annual 
report on bonuses paid under this section to the Committee on 
Governmental Affairs of the Senate and the Committee on Government 
Reform of the House of Representatives.
    ``(2) Each report submitted under this subsection shall include the 
use by each agency of retention bonuses, including, with respect to 
each agency, the number and amount of bonuses by grade (including the 
General Schedule, the Senior Executive Service, and positions on the 
Executive Schedule).
    ``(l) An employee may not be paid a retention bonus under this 
section and a retention allowance under section 5754.''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 57 of title 5, United States Code, is 
        amended by inserting after the item relating to section 5754 
        the following:

``5754a. Recruitment and relocation bonuses.
``5754b. Retention bonuses.''.
    (b) Effective Date and Application.--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.

SEC. 102. 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. 103. 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. 104. RETIREMENT SERVICE CREDIT FOR CADET OR MIDSHIPMAN SERVICE.

    (a) Civil Service Retirement System.--Section 8331(13) of title 5, 
United States Code, is amended by striking ``but'' and inserting ``and 
includes service as a cadet at the United States Military Academy, the 
United States Air Force Academy, or the United States Coast Guard 
Academy, or as a midshipman at the United States Naval Academy, but''.
    (b) Federal Employees' Retirement System.--Section 8401(31) of 
title 5, United States Code, is amended by striking ``but'' and 
inserting ``and includes service as a cadet at the United States 
Military Academy, the United States Air Force Academy, or the United 
States Coast Guard Academy, or as a midshipman at the United States 
Naval Academy, but''.
    (c) Effective Date and Application.--The amendments made by this 
section shall apply to--
            (1) any annuity, eligibility for which is based upon a 
        separation occurring before, on, or after the date of enactment 
        of this Act; and
            (2) any period of service as a cadet or midshipman at the 
        military service academy of the Army, Air Force, Coast Guard, 
        or Navy, occurring before, on, or after the date of enactment 
        of this Act.

SEC. 105. SENIOR EXECUTIVE SERVICE AUTHORITY FOR WHITE HOUSE OFFICE OF 
              ADMINISTRATION.

    Chapter 2 of title 3, United States Code, is amended--
            (1) in section 107(b)--
                    (A) in paragraph (2), by striking ``section 3101'' 
                and inserting ``sections 3101 and 3132''; and
                    (B) by adding at the end the following:
            ``(3) Any permanent Senior Executive Service position 
        established under paragraph (2) shall be a career reserved 
        position.'';
            (2) in section 114--
                    (A) by redesignating that section as subsection 
                (a);
                    (B) by amending that subsection, as so 
                redesignated, by striking ``minimum rate of basic pay 
                then currently paid for GS-16'' and inserting ``maximum 
                rate of basic pay then currently paid for GS-15''; and
                    (C) by adding at the end the following:
    ``(b) The limitation established in subsection (a) shall not apply 
to an individual appointed under the authority in section 107(b)(2), in 
accordance with section 3132 of title 5.''.

 TITLE II--REFORMS RELATING TO FEDERAL EMPLOYEE CAREER DEVELOPMENT AND 
                                BENEFITS

SEC. 201. 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. 202. 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 career experience' 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 career experience 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.

SEC. 203. COMPENSATORY TIME OFF FOR TRAVEL.

    (a) In General.--Subchapter V of chapter 55 of title 5, United 
States Code, is amended by adding at end the following:
``Sec. 5550b. Compensatory time off for travel
    ``(a) Notwithstanding section 5542(b)(2), each hour spent by an 
employee in travel status away from the official duty station of the 
employee, that is not otherwise compensable, shall be treated as an 
hour of work or employment for purposes of calculating compensatory 
time off.
    ``(b) An employee who has any hours treated as hours of work or 
employment for purposes of calculating compensatory time under 
subsection (a), shall not be entitled to payment for any such hours 
that are unused as compensatory time.
    ``(c) Not later than 30 days after the date of enactment of this 
section, the Office of Personnel Management shall prescribe regulations 
to implement this section.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 55 of title 5, United States Code, is amended by inserting 
after the item relating to section 5550a the following:

``5550b. Compensatory time off for travel.''.




                                                       Calendar No. 428

108th CONGRESS

  2d Session

                                 S. 129

                          [Report No. 108-223]

_______________________________________________________________________

                                 A BILL

  To provide for reform relating to Federal employment, and for other 
                               purposes.

_______________________________________________________________________

                            January 27, 2004

                       Reported with an amendment