[Federal Register Volume 59, Number 153 (Wednesday, August 10, 1994)]
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[FR Doc No: 94-19261]


  Federal Register / Vol. 59, No. 153 / Wednesday, August 10, 1994 /
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[Federal Register: August 10, 1994]


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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 
Prices of new books are listed in the first FEDERAL REGISTER issue of each 
week.

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                                                   VOL. 59, NO. 153

                                         Wednesday, August 10, 1994

OFFICE OF PERSONNEL MANAGEMENT

5 CFR Parts 293, 351, 430, 432, 451, 511, 530, 531, 536, 540, 575, 
591, 595, and 771

RIN 3206-AF69

 

Termination of the Performance Management and Recognition System

AGENCY: Office of Personnel Management.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Office of Personnel Management (OPM) is issuing final 
regulations to implement the ``Performance Management and Recognition 
System Termination Act of 1993'' (Pub. L. 103-89), which provides for 
the temporary extension and orderly termination of the Performance 
Management and Recognition System (PMRS) and specifies how former PMRS 
employees will be paid.

EFFECTIVE DATE: September 9, 1994.

FOR FURTHER INFORMATION CONTACT:
James Weddel, (202) 606-2858, concerning questions about the changes in 
5 CFR parts 511, 530, 531, 536, 575, 591, and 595; and Barbara Colchao, 
(202) 606-2720, concerning questions about the changes in 5 CFR parts 
293, 351, 430, 432, 451, 540, and 771.

SUPPLEMENTARY INFORMATION: On December 15, 1993, at 58 FR 65531, OPM 
published interim regulations to implement the ``Performance Management 
and Recognition System Termination Act of 1993'' (Pub. L. 103-89), with 
a 60-day comment period. These regulations were made effective 
retroactive to November 1, 1993.
    On December 30, 1993, at 58 FR 69169, OPM published final 
regulations to implement locality-based comparability payments under 
the ``Federal Employees Pay Comparability Act of 1990'' (FEPCA) (Pub. 
L. 101-509). The locality pay regulations revised the definitions of 
scheduled annual rate of pay in Secs. 531.101 and 531.301 which were 
previously published in the interim regulations implementing the PMRS 
Termination Act. The final regulations on locality pay were made 
effective January 1, 1994, and were applicable on the first day of the 
first pay period beginning on or after January 1, 1994.
    On February 3, 1994, at 59 FR 5223, OPM published corrections to 
fix three typographical errors in the interim regulations for PMRS 
termination.
    During the comment period, which ended February 14, 1994, OPM 
received three comments, each from a different Federal agency. One 
agency suggested revising the regulations to clarify that employees 
cannot ``become'' GM employees after November 1, 1993, and to specify 
the personnel actions that would trigger loss of GM status. A second 
agency asked for clarification of whether an employee who loses 
coverage as a result of a temporary promotion regains coverage when the 
temporary promotion ends, and if so, how the employee's pay would be 
set. A third agency felt that the text of Sec. 531.406(b)(2) (i)-(iii) 
specifying when time in a non-pay status is creditable service for a 
within-grade increase should be simplified. The agency also asserted 
that certain definitions in Secs. 531.101 and 531.301 were superseded 
by revised definitions in the final locality pay regulations. Finally, 
it was called to our attention that the instructions for setting pay on 
loss of GM status should be revised to clarify that pay retention is 
not required if an employee requests a reduction in grade.
    Following are the major issues raised, a summary of comments on 
each issue, and a discussion of changes made to the interim 
regulations.
    1. The definition of GM employee and loss of status as a GM 
employee.
    Summary of Comments: One agency suggested that the statutory basis 
(Pub. L. 103-89) for the definition of GM employee should be introduced 
in its regulatory definition in Sec. 531.202. The agency also noted 
that the timing and basis for GM status could be clarified. Another 
agency specifically asked for clarification of whether an employee who 
loses GM status when temporarily promoted after October 31, 1993, 
regains GM status when the temporary promotion ends.
    Discussion and Changes: OPM is adopting the suggestion that section 
4 of Pub. L. 103-89, the Performance Management and Recognition System 
Termination Act of 1993, be introduced in the definition of GM employee 
(see Sec. 531.202(e)). Where possible, we are replacing references to 
coverage under section 4 of the Act with references to the amended 
definition of GM employee and, where appropriate, to a new paragraph, 
``status as a GM employee'' (see Sec. 531.203(g)), which specifies 
personnel actions under which an employee would retain or permanently 
lose GM status (see Sec. 531.204 (d), (e) and (f), and 
Sec. 536.308(b)(3)). Also, Sec. 531.204(d) and the definition of GM 
employee have been amended to remove any suggestion that status as a GM 
employee can be acquired any time other than on November 1, 1993, the 
effective date of section 4 of the Act.
    When a temporary promotion begins after October 31, 1993, coverage 
under section 4 of the PMRS Termination Act (GM status) ends because of 
the change in grade. Coverage cannot be regained once it is lost 
because it is linked to continuous service as a supervisor or 
management official in the same grade and in the same agency after 
October 31, 1993. Coverage is acquired only once, on November 1, 1993.
    On the employee's return to the lower grade, the agency must set 
pay using GS pay setting rules. The agency may restore the employee's 
rate of basic pay to what it would have been had there never been a 
temporary promotion (including any within-grade or merit increases that 
would have been granted at the lower grade). Also, if permitted by its 
own policies, the agency may instead set pay at a higher rate using the 
highest previous rate under Sec. 531.203(d). In either pay-setting 
procedure, if the recomputed rate of basic pay falls between steps of a 
GS grade or a special salary rate schedule, the rate of basic pay must 
be set at the next higher step within the lower grade. To clarify this 
policy, OPM has added a new paragraph entitled, ``expiration or 
termination of temporary promotions'' (see Sec. 531.204(c)). This 
replaces OPM guidance that was previously published in Federal 
Personnel Manual (FPM) Supplement 990-2, Book 531, S4-5d. That guidance 
has been abolished by the sunset of the FPM.
    2. Setting pay on loss of GM status through voluntary reduction in 
grade.
    Summary of Comments: It was called to our attention that the 
regulation on setting pay on loss of GM status implies that an employee 
retains pay if he or she is voluntarily reduced in grade (see 
redesignated 5 CFR 531.204(e)).
    Discussion and Change: A new paragraph has been added to clarify 
that the provisions of Sec. 531.204(e) (1) through (4) do not apply 
when an employee loses GM status as a result of a reduction in grade at 
the employee's request (see Sec. 531.204(f)(3)). Rather, an agency may 
set pay at the lowest step of the lower grade or at a higher step in 
the lower grade under its policies for applying the maximum payable 
rate rules.
    3. Creditable service in a waiting period for a within-grade-
increase when an employee is in a non-pay status.
    Summary of Comments: One agency proposed simplifying regulatory 
text by combining separate language for GS and GM employees.
    Discussion and Change: OPM is removing unnecessary references to 
steps, next higher rate within the grade, and GM employee in 
Sec. 531.406(b)(2) (i)-(iii) to be consistent with the language used to 
establish the length of waiting periods in Sec. 531.405.
    4. The impact of final locality pay regulations on PMRS termination 
regulations.
    Summary of Comments: One agency commented that the revised 
definitions in Secs. 531.101 and 531.301 of the interim regulations are 
no longer current since the definitions were subsequently revised again 
by the final regulations implementing locality pay adjustments.
    Discussion and Change: This comment is partially correct. The 
current definition of scheduled annual rate of pay in Secs. 531.101 and 
531.301 is the definition as revised in the locality pay regulations 
published in the Federal Register on December 30, 1993 (58 FR 69169). 
However, the current definition of employee in Sec. 531.101 is the 
definition as revised in the interim PMRS termination regulations. 
There is no change, except that a statutory reference in the employee 
definition in Sec. 531.101 is clarified by inserting ``of title 5.''

Editorial Revisions to Regulations

    References to the PMRS Termination Act in Secs. 530.306(b)(2), 
531.401(d), and 531.502 are clarified by replacing ``Public Law 103-
89'' with ``the Performance Management and Recognition System 
Termination Act of 1993 (Pub. L. 103-89).'' References to GM employee 
in Secs. 531.203(c)(2) and 531.205(a)(2)(i) are clarified by inserting 
the citation, ``(as defined in Sec. 531.202).'' Also, minor editorial 
changes are being made to correct errors or clarify text at 
Secs. 531.204(e)(1), 531.205(a)(2) (ii) through (iv), 531.403, 
531.405(a) (1) and (2), and 536.308 (a) and (b).

Regulatory Flexibility Act

    I certify that these regulations will not have a significant 
economic impact on a substantial number of small entities because they 
apply only to Federal agencies and employees.

List of Subjects

5 CFR Part 293

    Archives and records, Freedom of information, Government employees, 
Health records, Privacy.

5 CFR Parts 351 and 432

    Administrative practice and procedure, Government employees.

5 CFR Parts 430 and 451

    Awards, Government employees, Medals.

5 CFR Part 511

    Administrative practice and procedure, Freedom of information, 
Government employees, Wages.

5 CFR Part 530

    Government employees, Reporting and recordkeeping requirements, 
Wages.

5 CFR Part 531

    Government employees, Law enforcement officers, Wages.

5 CFR Parts 540 and 575

    Government employees, Wages.

5 CFR Part 536

    Administrative practice and procedure, Freedom of information, 
Government employees, Reporting and recordkeeping requirements, Wages.

5 CFR Part 591

    Government employees, Travel and transportation expenses, Wages.

5 CFR Part 595

    Government employees, Health professions, Wages.

5 CFR Part 771

    Administrative practice and procedure, Government employees.

Office of Personnel Management
Lorraine A. Green,
Deputy Director.

    Accordingly, the interim rule amending 5 CFR parts 293, 351, 430, 
432, 451, 511, 530, 531, 536, 540, 575, 591, 595, and 771 published at 
58 FR 65531 on December 15, 1993, amended by the final rule amending 5 
CFR part 531 published at 58 FR 69169 on December 30, 1993, and 
corrected at 59 FR 5223 on February 3, 1994, is adopted as final with 
the following changes:

PART 530--PAY RATES AND SYSTEMS (GENERAL)

    1. The authority citation for part 530 continues to read as 
follows:

    Authority: 5 U.S.C. 5305 and 5307; E.O. 12748;
    Subpart B also issued under sec. 302(c) and 404(c) of the 
Federal Employees Pay Comparability Act of 1990 (Pub. L. 101-509), 
104 Stat. 1462 and 1466, respectively;
    Subpart C also issued under sec. 4 of the Performance Management 
and Recognition System Termination Act of 1993 (Pub. L. 103-89), 107 
Stat. 981.

    2. In Sec. 530.306, paragraph (b)(2) is revised to read as follows:


Sec. 530.306  Determining employee rates.

* * * * *
    (b) * * *
    (2) If the employee is receiving a rate of basic pay applicable to 
a GM employee (as defined in Sec. 531.202 of this chapter), the 
employee shall receive his or her existing rate. This rate may be lower 
than the minimum rate for the regular schedule, as permitted by section 
4 of the Performance Management and Recognition System Termination Act 
of 1993 (Pub. L. 103-89). If the employee's existing rate exceeds the 
maximum rate for the regular or decreased special salary rate schedule, 
the employee shall be entitled to the existing rate, as provided in 
Sec. 536.104(a)(3) of this chapter.
* * * * *

PART 531--PAY UNDER THE GENERAL SCHEDULE

    3. The authority citation for part 531 continues to read as 
follows:

    Authority: 5 U.S.C. 5115, 5307, 5338; sec. 4 of the Performance 
Management and Recognition System Termination Act of 1993, 107 Stat. 
981; E.O. 12748, 56 FR 4521, February 4, 1991, 3 CFR 1991 Comp., p. 
316;
    Subpart A also issued under section 302 of the Federal Employees 
Pay Comparability Act of 1990 (FEPCA), 104 Stat. 1462, 5 U.S.C. 
5304, 5305, and 5553, and E.O. 12786, 56 FR 67453, December 30, 
1991, 3 CFR 1991 Comp., p. 376;
    Subpart B also issued under 5 U.S.C. 5303(g), 5333, 5334(a), and 
7701(b)(2);
    Subpart C also issued under section 404 of FEPCA, 104 Stat. 
1466, section 3(7) of Pub. L. 102-378 (October 2, 1992), section 302 
of FEPCA, 104 Stat. 1462, and 5 U.S.C. 5304, 5305, and 5553;
    Subpart D also issued under 5 U.S.C. 5335(g) and 7701(b)(2);
    Subpart E also issued under 5 U.S.C. 5336;
    Subpart F also issued under 5 U.S.C. 5304, 5305(g)(1), and 5553, 
and E.O. 12883, 58 FR 63281, November 29, 1993, 3 CFR 1993 Comp., p. 
682.

    4. In Sec. 531.101, the definition of employee is revised to read 
as follows:


Sec. 531.101  Definitions.

* * * * *
    Employee means an employee in a position to which subchapter III of 
chapter 53 of title 5, United States Code, applies, whose official duty 
station is located in an interim geographic adjustment area, including 
an employee in a position authorized by Sec. 213.3102(w) of this 
chapter whose rate of basic pay is established under the General 
Schedule.
* * * * *
    5. In Sec. 531.202, the first sentence of paragraph (e) is revised 
to read as follow:


Sec. 531.202  Definitions.

* * * * *
    (e) GM employee means an employee who was covered by the 
Performance Management and Recognition System under chapter 54 of title 
5, United States Code, on October 31, 1993 (and therefore became 
covered on November 1, 1993, by section 4 of Pub. L. 103-89, the 
Performance Management and Recognition System Termination Act of 1993), 
and who continues thereafter to occupy a position as a supervisor or 
management official (as defined in paragraphs (10) and (11) of section 
7103(a) of title 5, United States Code) in the same grade of the 
General Schedule and in the same agency without a break in service of 
more than 3 calendar days.* * *
* * * * *
    6. In Sec. 531.203, the first sentence of paragraph (c)(2) 
introductory text is revised, and a new paragraph (g) is added to read 
as follows:


Sec. 531.203  General provisions.

* * * * *
    (c) * * *
    (2) The maximum rate of basic pay that may be paid a GM employee 
(as defined in Sec. 531.202) shall be determined as follows: * * *
* * * * *
    (g) Status as a GM employee. (1) An employee retains status as a GM 
employee (as defined in Sec. 531.202) when detailed to any position or 
when reassigned to another General Schedule position in which the 
employee continues to be a supervisor or management official (as 
defined in paragraphs (10) and (11) of section 7103(a) of title 5, 
United States Code).
    (2) An employee permanently loses status as a GM employee if the 
employee is promoted (including a temporary or term promotion), 
transferred, reduced in grade, reassigned to a position in which the 
employee will no longer be a supervisor or management official, or has 
a break in service of more than 3 calendar days.
    7. In Sec. 531.204, paragraphs (c) through (e) are redesignated as 
paragraphs (d) through (f), respectively; a new paragraph (c) is added; 
and newly redesignated paragraph (d), the introductory text of newly 
redesignated paragraph (e), newly redesignated paragraph (e)(1), and 
newly redesignated paragraph (f) are revised to read as follows:


Sec. 531.204  Special provisions.

* * * * *
    (c) Expiration or termination of temporary promotions. (1) On 
expiration or termination of a temporary promotion when an employee is 
returned to the lower grade, an agency must recompute the employee's 
rate of basic pay for the lower grade as if the employee had not been 
temporarily promoted unless the agency sets pay at a higher rate under 
Sec. 531.203(d).
    (2) In the case of an employee whose rate of basic pay would 
otherwise fall between two steps of General Schedule grade or 
applicable special rate range, the rate of basic pay of the employee 
must be increased to the rate for the next higher step of the grade or 
special rate range.
    (d) Rate of basic pay on acquiring status as a GM employee. On 
acquiring status as a GM employee (as defined in Sec. 531.202) on 
November 1, 1993, an employee shall continue to receive the rate of 
basic pay that was payable on October 31, 1993.
    (e) Rate of basic pay on loss of status as a GM employee. On loss 
of status as a GM employee (as defined in Sec. 531.202) under 
Sec. 531.203(g)(2), an employee shall receive (except as provided in 
paragraph (f) of this section) his or her existing rate of basic pay, 
plus any of the following adjustments that may be applicable, in the 
order specified:
    (1) The amount of any annual adjustment under section 5303 of title 
5, United States Code, to which the employee would otherwise be 
entitled on that date or, for an employee subject to special pay rates, 
the amount of any pay adjustment made on that date under section 5305 
of title 5, United States Code, and part 530 of this chapter;
* * * * *
    (f) Special exceptions. Paragraphs (e) (1) through (4) of this 
section do not apply to any employee who loses status as a GM employee 
(as defined in Sec. 531.202) under Sec. 531.203(g)(2) as a result of--
    (1) An action taken for disciplinary or performance related 
reasons;
    (2) The expiration or termination of a temporary promotion; or
    (3) A reduction in grade at the employee's request.
    8. In Sec. 531.205, paragraph (a)(2)(i) introductory text and 
paragraphs (a)(2)(ii) through (iv) are revised to read as follows:


Sec. 531.205  Pay schedule conversion rules at the time of an annual 
pay adjustment under 5 U.S.C. 5303.

    (a) * * *
    (2)(i) Except as provided in paragraphs (a)(2)(ii) through (iv) of 
this section, an agency shall determine the annual pay adjustment under 
5 U.S.C. 5303 for a GM employee (as defined in Sec. 531.202) as 
follows:
* * * * *
    (ii) The rate of basic pay of an employee which is at the minimum 
or maximum of the rate range in effect on the day preceding the pay 
adjustment shall be adjusted to the minimum or maximum of the new rate 
range, respectively.
    (iii) The rate of basic pay of an employee which is less than the 
minimum rate of the rate range of the employee's position shall be 
increased by the full amount of the annual pay adjustment under 5 
U.S.C. 5303 applicable to the rate range of the grade of the employee's 
position.
    (iv) An employee who is receiving retained pay shall receive one-
half of the annual pay adjustment under 5 U.S.C. 5303, as required by 5 
U.S.C. 5363(a).
* * * * *
    9. In Sec. 531.401, paragraph (d) is revised to read as follows:


Sec. 531.401  Principal authorities.

* * * * *
    (d) Section 4 of the Performance Management and Recognition System 
Termination Act of 1993 (Pub. L. 103-89) provides that ``the Office of 
Personnel Management shall prescribe regulations necessary for the 
administration of this section.''
    10. In Sec. 531.403, the introductory text of the definition of 
within-grade increase is revised to read as follows:


Sec. 531.403  Definitions.

    Within-grade increase is synonymous with the term ``step increase'' 
used in section 5335 of title 5, United States Code, and means--
* * * * *
    11. In Sec. 531.405, the introductory paragraphs of (a)(1) and 
(a)(2) are revised to read as follows:


Sec. 531.405  Waiting periods for within-grade increase.

    (a) Length of waiting period. (1) For an employee with a scheduled 
tour of duty, the waiting periods for advancement to the next higher 
step in all General Schedule grades (or the next higher rate within the 
grade, as defined in Sec. 531.403) are:
* * * * *
    (2) For an employee without a scheduled tour of duty, the waiting 
periods for advancement to the next higher step of all General Schedule 
grades (or the next higher rate within the grade, as defined in 
Sec. 531.403) are:
* * * * *
    12. In Sec. 531.406, paragraphs (b)(2)(i) through (iii) are revised 
to read as follows:


Sec. 531.406  Creditable service.

* * * * *
    (b) * * *
    (2) * * *
    (i) Two workweeks in the waiting period for an employee whose rate 
of basic pay is less than the rate of basic pay for step 4 of the 
applicable grade;
    (ii) Four workweeks in the waiting period for an employee whose 
rate of basic pay is equal to or greater than the rate of basic pay for 
step 4 of the applicable grade and less than the rate of basic pay for 
step 7 of the applicable grade; and
    (iii) Six workweeks in the waiting period for an employee whose 
rate of basic pay is equal to or greater than the rate of basic pay for 
step 7 of the applicable grade.
* * * * *
    13. In Sec. 531.502, the definition of quality step increase is 
revised to read as follows:


Sec. 531.502   Definitions.

* * * * *
    Quality step increase is synonymous with the term ``step increase'' 
used in section 5336 of title 5, United States Code, and means an 
increase in an employee's rate of basic pay from one step or rate of 
the grade of his or her position to the next higher step of that grade 
or next higher rate within the grade (as defined in Sec. 531.403) in 
accordance with section 5336 of title 5, United States Code, section 4 
of the Performance Management and Recognition System Termination Act of 
1993 (Pub. L. 103-89), and this subpart.

PART 536--GRADE AND PAY RETENTION

    14. The authority citation for part 536 continues to read as 
follows:

    Authority: 5 U.S.C. 5361-5366; sec. 7202(f) of the Omnibus 
Budget Reconciliation Act of 1990 (Pub. L. 101-508), 104 Stat. 1338-
336; sec. 4 of the Performance Management and Recognition System 
Termination Act of 1993, 107 Stat. 981; Sec. 536.307 also issued 
under 5 U.S.C. 552, Freedom of Information Act, Pub. L. 92-502.

Subpart A--Definitions; Coverage and Applicability

    15. In Sec. 536.308, paragraph (a), the introductory text of 
paragraph (b), and paragraph (b)(3) are revised to read as follows:


Sec. 536.308   Applicability of retained grade.

    (a) Except as provided in paragraph (b) of this section, when an 
employee is entitled to grade retention, the retained grade shall be 
treated as the employee's grade for all purposes, including pay and pay 
administration, retirement, life insurance, and eligibility for 
training.
    (b) The retained grade may not be used--
* * * * *
    (3) To determine whether an employee retains status as a GM 
employee (as defined in Sec. 531.202 of this chapter); or
* * * * *
[FR Doc. 94-19261 Filed 8-9-94; 8:45 am]
BILLING CODE 6325-01-M