[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3203 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3203

To reform the compensation system of the Foreign Service of the United 
   States, and to amend the provision relating to the death gratuity 
payable to surviving dependents of Foreign Service employees who die as 
   a result of injuries sustained in the performance of duty abroad.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 27, 2007

Mr. Smith of New Jersey (for himself, Mr. Payne, Mr. Scott of Georgia, 
Mr. Tom Davis of Virginia, and Mr. Wolf) introduced the following bill; 
which was referred to the Committee on Foreign Affairs, and in addition 
to the Committee on Oversight and Government Reform, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
To reform the compensation system of the Foreign Service of the United 
   States, and to amend the provision relating to the death gratuity 
payable to surviving dependents of Foreign Service employees who die as 
   a result of injuries sustained in the performance of duty abroad.

    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 ``Foreign Service 
Global Compensation Act of 2007''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
          TITLE I--PROVISIONS RELATING TO COMPENSATION SYSTEM

Sec. 101. Foreign Service performance-based compensation system.
Sec. 102. Transition to performance-based compensation system.
Sec. 103. Uniform compensation for worldwide service.
Sec. 104. Technical and conforming amendments.
            TITLE II--PROVISIONS RELATING TO DEATH GRATUITY

Sec. 201. Death gratuity.

          TITLE I--PROVISIONS RELATING TO COMPENSATION SYSTEM

SEC. 101. FOREIGN SERVICE PERFORMANCE-BASED COMPENSATION SYSTEM.

    (a) Purposes.--The purposes of this title are--
            (1) to improve the recruitment and retention of high-
        performing Foreign Service members;
            (2) to ensure performance management that effectively 
        communicates performance expectations and makes meaningful 
        distinctions based upon relative performance; and
            (3) to institute a worldwide pay system for the Foreign 
        Service.
    (b) Foreign Service Schedule.--Section 403 of the Foreign Service 
Act of 1980 (22 U.S.C. 3963) is amended to read as follows:

``SEC. 403. FOREIGN SERVICE SCHEDULE.

    ``(a) In General.--The President shall establish, review on an 
annual basis, and periodically adjust a Foreign Service Schedule, which 
shall consist of 9 salary classes that apply to members of the Service 
who are citizens of the United States and for whom salary rates are not 
otherwise provided under this chapter. The annual review under this 
subsection shall include consideration of pertinent economic measures, 
including but not limited to changes in the Employment Cost Index 
(within the meaning of section 5302(2) of title 5, United States Code).
    ``(b) Limit.--The maximum salary rate for the highest class 
established under this section, which shall be designated class 1, may 
not exceed the rate of basic pay for level IV of the Executive Schedule 
under section 5315 of title 5, United States Code.''.
    (c) Within-Class Salary Increases.--Section 406 of the Foreign 
Service Act of 1980 (22 U.S.C. 3966) is amended to read as follows:

``SEC. 406. WITHIN-CLASS SALARY INCREASES.

    ``(a) Determination.--The Secretary shall determine, on at least an 
annual basis, the size of any salary adjustment (expressed as a 
percentage or otherwise) which shall be made with respect to any 
members within a salary class in the Foreign Service Schedule, taking 
into account individual performance, contribution to the mission of the 
Department, or both, under a performance management system that--
            ``(1) makes meaningful distinctions based upon relative 
        performance; and
            ``(2) clearly links individual salary and performance under 
        precepts prescribed by the Secretary.
The Secretary shall determine the date as of which any salary 
adjustment under this subsection shall take effect.
    ``(b) Limitation.--A performance-based salary adjustment under 
subsection (a) may not be made with respect to any member of the 
Service whose performance does not meet the standards of performance 
for the salary class of the member for the applicable evaluation 
period.
    ``(c) Equal Basic Salary Adjustments.--Notwithstanding subsection 
(a), the Secretary may provide equal basic salary adjustments, on a 
percentage basis, for career candidates or other members of the 
Service--
            ``(1) whose performance has not been reviewed by a 
        selection board under section 602; and
            ``(2) who are found to meet the standards of performance 
        for their class.
The Secretary shall determine the date as of which any salary 
adjustment under this subsection shall take effect.
    ``(d) Funding for Performance-Based Salary Adjustments.--
            ``(1) In general.--In order to provide funding for 
        adjustments in basic salary rates under this section, the 
        Secretary shall allocate an amount equal to or greater than the 
        sum of--
                    ``(A) an amount that would be sufficient to fund--
                            ``(i) within-class salary step increases 
                        under this section, as such increases would 
                        have occurred absent the amendments made 
                        pursuant to the Foreign Service Global 
                        Compensation Act of 2007; and
                            ``(ii) increases in salary rates under the 
                        Foreign Service Schedule in accordance with 
                        section 5303 of title 5, United States Code, as 
                        such increases would have occurred absent the 
                        amendments made pursuant to the Foreign Service 
                        Global Compensation Act of 2007; and
                    ``(B) the amount necessary to provide for salary 
                adjustments based on mission requirements, labor market 
                conditions, salary adjustments received by employees of 
                other Federal agencies, and any other relevant factors.
            ``(2) Purpose.--The formula set forth in paragraph (1) 
        shall ensure that members of the Service who are covered by the 
        Foreign Service Schedule established under section 403, in the 
        aggregate, are not disadvantaged in terms of the overall amount 
        of salary available as a result of conversion to the 
        performance-based compensation system authorized by this 
        section.''.
    (d) Cessation of Certain Payments.--
            (1) Locality payments.--A member of the Foreign Service may 
        not receive a locality-based comparability payment under 
        section 5304 of title 5, United States Code, for service 
        performed on or after the effective date set forth in 
        subsection (f).
            (2) Nonforeign area allowance.--Except as provided in 
        section 103(d), a member of the Foreign Service may not receive 
        a nonforeign area allowance under section 5941 of title 5, 
        United States Code, for service performed on or after the 
        effective date set forth in subsection (f).
    (e) Reporting Requirement.--Not later than February 1, 2011, and 
February 1 of each of the 4 years thereafter, the Secretary of State 
shall submit to the appropriate congressional committees a report on 
the implementation of this section. Each such report shall include--
            (1) an assessment as to whether the purposes of this 
        section are being accomplished;
            (2) the Foreign Service Schedule established under section 
        403 of the Foreign Service Act of 1980 (as amended by this 
        section) with respect to the period covered by the report;
            (3) any regulations and guidelines adopted to determine 
        salary adjustments under section 406 of the Foreign Service Act 
        of 1980 (as amended by this section);
            (4) the allocation last made by the Secretary of State for 
        purposes of section 406(d)(1) of the Foreign Service Act of 
        1980 (as amended by this section);
            (5) a detailed description of the calculations made to 
        determine the allocation described in paragraph (4);
            (6) an assessment of all allowances provided to members of 
        the Service under the Foreign Service Act of 1980 or under 
        title 5, United States Code, and in particular, how such 
        allowances have been or will be affected by the amendments to 
        sections 403 and 406 of the Foreign Service Act of 1980 made by 
        this section;
            (7) a detailed description of the size and distribution of 
        any salary adjustments under section 406(a) of the Foreign 
        Service Act of 1980 granted with respect to members within each 
        salary class during the period covered by the report; and
            (8) an explanation of the rationale for the size and 
        distribution of the salary adjustments referred to in paragraph 
        (7).
For purposes of this subsection, the term ``appropriate congressional 
committees'' means the Committee on Foreign Affairs, the Committee on 
Oversight and Government Reform, and the Committee on Appropriations of 
the House of Representatives, and the Committee on Foreign Relations, 
the Committee on Homeland Security and Governmental Affairs, and the 
Committee on Appropriations of the Senate.
    (f) Effective Date.--This section and the amendments made by this 
section shall take effect on the first day of the first pay period 
beginning on or after April 1, 2010.

SEC. 102. TRANSITION TO PERFORMANCE-BASED COMPENSATION SYSTEM.

    (a) Applicability.--This section applies with respect to the 
period--
            (1) beginning on the first day of the first pay period 
        beginning on or after April 1, 2009; and
            (2) ending on the day before the effective date described 
        in section 101(f).
    (b) Rules for Determining Basic Salary Rate During Period to Which 
This Section Applies.--
            (1) In general.--Except as provided in paragraph (2), the 
        basic salary rate of any member of the Foreign Service 
        designated class 1 or below shall, for purposes of computing 
        salary payable for service performed during the period 
        described in subsection (a), be determined in the same manner 
        as if this title had not been enacted.
            (2) Interim schedule for certain members.--
                    (A) In general.--In the case of any member of the 
                Foreign Service designated class 1 or below whose 
                official duty station is located in an area for which 
                members of the Foreign Service receive neither payments 
                under section 5304 of title 5, United States Code, nor 
                payments under section 5941 of such title, the basic 
                salary rate payable to such member shall be determined 
                by reference to the interim schedule established under 
                subparagraph (B), rather than the Foreign Service 
                Schedule (as established under section 403 of the 
                Foreign Service Act of 1980).
                    (B) Interim schedule.--In order to carry out 
                subparagraph (A), the Secretary of State shall 
                establish (before the start of the period described in 
                subsection (a)) and update (as necessary to reflect any 
                adjustment to the Foreign Service Schedule taking 
                effect after the start of such period) an interim 
                schedule of basic salary rates which shall consist of--
                            (i) the same classes and steps as those set 
                        forth in the Foreign Service Schedule (as 
                        established under such section 403); and
                            (ii) rates that are equal to--
                                    (I) the rates for the corresponding 
                                classes and steps under the Foreign 
                                Service Schedule (as so established or 
                                adjusted), uniformly increased by
                                    (II) 9 percent, or such other 
                                percentage as the President may 
                                determine in lieu thereof.
                    (C) Treatment.--A basic salary rate determined 
                under this subsection shall, for all purposes (except 
                subparagraph (B)(ii)(I)), be treated in the same way as 
                if it were a basic salary rate under the Foreign 
                Service Schedule under such section 403.
    (c) Conversion Rules.--The Secretary, as defined by section 102(10) 
of the Foreign Service Act of 1980 (hereinafter in this title referred 
to as the ``Secretary concerned'') shall establish salary conversion 
rules which shall apply in the case of any member who, during the 
period with respect to which this section applies, transfers between 
duty stations that are subject to the provisions of subsections (b)(1) 
and (b)(2), respectively.

SEC. 103. UNIFORM COMPENSATION FOR WORLDWIDE SERVICE.

    (a) Initial Adjustment in Salaries of Members.--Effective as of the 
first day of the first pay period beginning on or after April 1, 2010, 
the basic salary rate of each member of the Foreign Service designated 
class 1 or below who, as of the day before such first day, was 
receiving a basic salary rate determined under section 102 shall become 
subject to the Foreign Service Schedule established under section 403 
of the Foreign Service Act of 1980 (as amended by section 101), and 
shall receive an initial rate under such Schedule (as so amended) which 
shall be determined in accordance with the following:
            (1) Except as provided in paragraph (2) or (3), the initial 
        rate shall be fixed so as to be equal to the sum of--
                    (A) the basic salary rate under the Foreign Service 
                Schedule for the class and step held by such member as 
                of the day before such first day (determined by 
                applying the Foreign Service Schedule as last in effect 
                under section 403 of the Foreign Service Act of 1980 
                before the first day of the first pay period beginning 
                on or after April 1, 2010, and disregarding any rates 
                established under section 102(b)(2)); and
                    (B) the amount derived by multiplying the rate 
                determined under subparagraph (A) by the locality-based 
                comparability percentage that, as of such first day, is 
                in effect under section 5304 of title 5, United States 
                Code, with respect to General Schedule positions within 
                the locality that includes the District of Columbia.
            (2) In the case of any member who, effective as of the 
        first day of the first pay period beginning on or after April 
        1, 2010, would otherwise have been advanced to a higher step in 
        such member's class by reason of section 406(a) of the Foreign 
        Service Act of 1980 (determined by applying the provisions of 
        such Act as last in effect before such first day), paragraph 
        (1)(A) shall be applied by using the step to which such member 
        would have been so advanced as of such first day, rather than 
        the step described in paragraph (1)(A).
            (3) The Secretary concerned shall by regulation determine 
        how effect shall be given to any salary adjustment (whether in 
        connection with a promotion, a step increase under section 
        406(b) of the Foreign Service Act of 1980 for especially 
        meritorious service, or otherwise) which, if this title had not 
        been enacted, would otherwise have become effective beginning 
        on such first day, subject to paragraph (2).
            (4) All payments under section 5304 of title 5, United 
        States Code, and, except to the extent provided in subsection 
        (d), all payments under section 5941 of such title shall cease 
        to be payable with respect to any member of the Foreign 
        Service, as required by section 101(d).
    (b) Minimum and Maximum Rates Initially Established.--The minimum 
and maximum rates initially established under section 403 of the 
Foreign Service Act of 1980 (as amended by section 101) for each of the 
respective salary classes of the Foreign Service Schedule shall be 
established in a manner consistent with the requirements of subsection 
(a)(1).
    (c) One-Time Adjustment in Basic Salary Rates of Certain Other 
Members.--
            (1) Applicability.--This subsection applies with respect to 
        any career candidate or other member of the Foreign Service--
                    (A) whose performance has not been reviewed by a 
                selection board under section 602 of the Foreign 
                Service Act of 1980; and
                    (B) who, if this title had not been enacted, would 
                otherwise have been eligible to receive a within-class 
                step increase under section 406(a) of the Foreign 
                Service Act of 1980 (determined by applying the 
                provisions of such Act as last in effect before the 
                first day of the first pay period beginning on or after 
                April 1, 2010), effective as of a date occurring within 
                the period that--
                            (i) begins on the first day of the first 
                        pay period beginning on or after April 1, 2010; 
                        and
                            (ii) ends as of September 30, 2010.
            (2) Authority.--The Secretary concerned may provide for a 
        one-time adjustment under this subsection in the basic salary 
        rate of any member of the Foreign Service with respect to whom 
        this subsection applies.
            (3) Conditions.--An adjustment under this subsection in the 
        basic salary rate of any member--
                    (A) shall become effective as of the first day of 
                the first pay period beginning on or after April 1, 
                2010; and
                    (B) shall be equal to an amount determined by the 
                Secretary concerned, but not more than the dollar 
                amount equivalent of the step increase described in 
                paragraph (1)(B), prorated to reflect the ratio that--
                            (i) the number of weeks toward such step 
                        increase completed by such member as of the day 
                        before the first day referred to in paragraph 
                        (1)(B)(i), bears to
                            (ii) the total number of weeks that would 
                        have been required in order for such member to 
                        qualify for the full step increase.
    (d) Special Transitional Rules.--
            (1) Applicability.--This subsection applies to any member 
        of the Foreign Service who, as of the first day of the first 
        pay period beginning on or after April 1, 2010, is serving at a 
        duty station for which, if this title had not been enacted, 
        such member would, as of such first day, have been eligible to 
        receive--
                    (A) a locality-based comparability payment under 
                section 5304 of title 5, United States Code, equal to a 
                percentage greater than the percentage described in 
                subsection (a)(1)(B); or
                    (B) an allowance under section 5941 of title 5, 
                United States Code, equal to a percentage greater than 
                the percentage described in subsection (a)(1)(B).
        Any determination of eligibility under this paragraph shall be 
        made applying the same criteria, requirements, and other terms 
        or conditions as were in effect, with respect to the payment or 
        allowance involved, at the end of the last pay period before 
        the pay period referred to in the preceding sentence.
            (2) Nonreduction rules.--The Secretary concerned shall by 
        regulation provide for the following:
                    (A) Locality-based comparability payment.--A member 
                of the Foreign Service to whom this subsection applies 
                by virtue of paragraph (1)(A) shall be entitled to a 
                temporary supplement equal to the amount necessary to 
                prevent a reduction in pay at the time of conversion to 
                the Foreign Service Schedule established on the date 
                described in section 101(f). The temporary supplement 
                shall be expressed as an annual rate and paid biweekly. 
                The temporary supplement shall be considered basic pay 
                for the same purposes as a locality-based comparability 
                payment under section 5304 of title 5, United States 
                Code. The amount of the temporary supplement shall be 
                fixed and not subject to adjustment, but shall be 
                discontinued under the conditions set forth in 
                paragraph (3).
                    (B) Nonforeign area allowance.--A member of the 
                Foreign Service to whom this subsection applies by 
                virtue of paragraph (1)(B) shall be entitled to a 
                temporary allowance equal to the amount necessary to 
                prevent a reduction in pay at the time of conversion to 
                the Foreign Service Schedule established on the date 
                described in section 101(f). The temporary allowance 
                shall be expressed as an annual rate and paid biweekly. 
                The temporary allowance shall be treated, for all 
                purposes, as if it were an allowance under section 5941 
                of title 5, United States Code. The amount of the 
                temporary allowance shall be fixed and not subject to 
                adjustment, but shall be discontinued under the 
                conditions set forth in paragraph (3).
            (3) Conditions for continued applicability.--The provisions 
        of this subsection shall remain in effect with respect to a 
        member only for so long as such member remains--
                    (A) continuously assigned to the same duty station 
                (as described in paragraph (1)); and
                    (B) subject to the Foreign Service Schedule 
                established under section 403 of the Foreign Service 
                Act of 1980 (as amended by section 101).
    (e) Management Right.--Adjustments made under section 102(c) and 
subsections (a)(3), (c), and (d) of this section--
            (1) shall be considered a management right under section 
        1005(a) of the Foreign Service Act of 1980; and
            (2) are not grievances under section 1101(b) of such Act.

SEC. 104. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Foreign Service Act of 1980.--The Foreign Service Act of 1980 
(22 U.S.C. 3901 et seq.) is amended--
            (1) in section 402(a)(2) (22 U.S.C. 3962(a)(2)), by 
        inserting ``under precepts prescribed by the Secretary'' after 
        ``system'';
            (2) in section 602(a) (22 U.S.C. 4002(a)), by amending 
        paragraph (3) to read as follows:
            ``(3) approvals or denials of performance-based salary 
        adjustments under sections 402(a)(2) and 406(a)'';
            (3) in section 605 (22 U.S.C. 4005)--
                    (A) in subsection (a)--
                            (i) by inserting ``and performance-based 
                        salary adjustments under sections 402(a)(2) and 
                        406(a)'' after ``Recommendations for 
                        promotion''; and
                            (ii) by inserting ``and performance-based 
                        salary adjustments'' after ``shall make 
                        promotions''; and
                    (B) in subsection (b)--
                            (i) by inserting ``or precepts prescribed 
                        by the Secretary'' after ``set forth by 
                        regulation''; and
                            (ii) by inserting ``or salary adjustment'' 
                        after ``delay the promotion'';
            (4) in section 606 (22 U.S.C. 4006)--
                    (A) in subsection (a)(4), by striking ``within-
                class salary increase'' and inserting ``performance-
                based salary adjustment''; and
                    (B) in subsection (b), by striking ``within-class 
                salary increases'' and inserting ``performance-based 
                salary adjustments'';
            (5) in section 806(a)(9) (22 U.S.C. 4046(a)(9)), by adding 
        at the end the following: ``This paragraph shall not apply to 
        service performed on or after the first day of the first pay 
        period beginning on or after April 1, 2010.'';
            (6) in section 855(a)(3) (22 U.S.C. 4071d(a)(3)), by adding 
        at the end the following: ``This paragraph shall not apply to 
        service performed on or after the first day of the first pay 
        period beginning on or after April 1, 2010.'';
            (7) in section 1005(a) (22 U.S.C. 4105(a))--
                    (A) in paragraph (6), by striking ``and'' at the 
                end;
                    (B) in paragraph (7), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(8) to make determinations under sections 402(a)(2) and 
        406(a), to make salary adjustments under section 406(c), or to 
        make allocations under section 406(d).''; and
            (8) in section 1101(b) (22 U.S.C. 4131(b))--
                    (A) in paragraph (3), by striking ``or'' at the 
                end;
                    (B) in paragraph (4), by striking the period at the 
                end and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(5) judgments with respect to--
                    ``(A) salary determinations under sections 
                402(a)(2) and 406(a);
                    ``(B) salary adjustments under sections 406(c); or
                    ``(C) allocations under section 406(d).''.
    (b) Title 5, United States Code.--Title 5, United States Code, is 
amended--
            (1) in chapter 53--
                    (A) in section 5302(1)--
                            (i) in subparagraph (A), by adding ``or'' 
                        at the end;
                            (ii) by striking subparagraph (B); and
                            (iii) by redesignating subparagraph (C) as 
                        subparagraph (B); and
                    (B) in section 5304(h)(1)(D)--
                            (i) in clause (v), by striking ``or'' at 
                        the end;
                            (ii) in clause (vi), by striking the period 
                        at the end and inserting ``; or''; and
                            (iii) by adding at the end the following:
                            ``(vii) a position in the Foreign 
                        Service.''; and
            (2) in chapter 57--
                    (A) in section 5753(a)(2)(A), by inserting ``, 
                excluding members of the Foreign Service other than 
                chiefs of mission and ambassadors at large'' before the 
                semicolon at the end; and
                    (B) in section 5754(a)(2)(A), by inserting ``, 
                excluding members of the Foreign Service other than 
                chiefs of mission and ambassadors at large'' before the 
                semicolon at the end.
    (c) Effective Dates.--The amendments made by subsections (a) and 
(b)(1) shall take effect on the first day of the first pay period 
beginning on or after April 1, 2010.

            TITLE II--PROVISIONS RELATING TO DEATH GRATUITY

SEC. 201. DEATH GRATUITY.

    (a) In General.--Section 413(a) of the Foreign Service Act of 1980 
(22 U.S.C. 3973(a)) is amended--
            (1) by striking ``(a)'' and inserting ``(a)(1)''; and
            (2) by adding at the end the following:
    ``(2) For purposes of any computation under this section, the rate 
of basic salary payable to a Foreign Service employee at time of death 
shall--
            ``(A) except as provided in subparagraph (B), be deemed to 
        have been equal to the rate that was then payable for level II 
        of the Executive Schedule under section 5313 of title 5, United 
        States Code; or
            ``(B) if the decedent was subject to a local compensation 
        plan under section 408 at time of death, be deemed to have been 
        equal to the highest basic salary rate that was then payable 
        under such plan.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to deaths occurring on or after the date of the 
enactment of this Act.
                                 <all>