[Federal Register Volume 60, Number 18 (Friday, January 27, 1995)]
[Proposed Rules]
[Pages 5542-5557]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2109]
[[Page 5541]]
_______________________________________________________________________
Part VI
Office of Personnel Management
_______________________________________________________________________
5 CFR Parts 430, 432, 451 and 531
Performance Management; Proposed Rule
Federal Register / Vol. 60, No. 18 / Friday, January 27, 1995 /
Proposed Rules
[[Page 5542]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Parts 430, 432, 451 and 531
RIN 3206-AG34
Performance Management
AGENCY: Office of Personnel Management.
ACTION: Proposed rule.
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SUMMARY: The Office of Personnel Management (OPM) is issuing proposed
regulations to deregulate performance management and incentive awards,
including provisions allowing agencies to use as few as two levels for
critical element appraisals and summary ratings for non-SES employees,
and to make conforming changes to related regulations. These changes
are proposed to provide agencies additional flexibility as called for
by the National Performance Review.
DATES: Comments must be submitted on or before March 28, 1995.
ADDRESSES: Comments may be sent or delivered to: Allan D. Heuerman,
Assistant Director for Labor Relations and Workforce Performance, U.S.
Office of Personnel Management, Room 7412, 1900 E Street NW.,
Washington, DC 20415.
FOR FURTHER INFORMATION CONTACT: Barbara Colchao, (202) 606-2720.
SUPPLEMENTARY INFORMATION: To pursue the flexibility and
decentralization called for by the National Performance Review (NPR),
OPM proposes amending its regulations to remove many of the current
regulatory requirements and permit agencies to implement performance
management systems and programs for non-SES employees that better fit
their organizational climate and needs. (OPM is conducting a separate
review of SES performance appraisal regulations.) These proposed
changes are intended to increase system flexibility and not to suggest
the superiority of the newly available options. OPM advises agencies to
examine their individual circumstances carefully before making any
major changes to their performance management systems and programs.
Partnership and Successful Performance Management
Agencies are strongly urged to develop their performance management
systems and programs in partnership with their employees and union
representatives in accordance with law. Many studies have shown that
the success of a performance management system in achieving its goals
is dependent upon acceptance by the management and employees who use
it. There is no better way to garner support for a system than by
giving all stakeholders a role in developing it. Further, the National
Performance Review stated in its accompanying report, Reinventing Human
Resource Management, that under the ideal performance management system
``Employees and their representatives will be involved in design and
implementation of performance management programs and in development of
performance expectations.'' Consequently, OPM advises agencies that
these regulatory changes in performance management should be
implemented through full partnership with employees and their union
representatives.
Performance Management Systems and Programs
The recommendations of the National Performance Review for
reforming the Government's performance management system contemplated a
policy environment that would permit ``complete decentralization of
performance management within a framework of broad, governmentwide
principles.'' OPM is establishing that framework in these proposed
regulations for appraisal and awards, which would remove many previous
regulatory constraints and implement flexible Governmentwide systems
for appraisal and awards. This approach will permit the implementation
of the NPR recommendation for the development of agency-based
performance management and incentive award programs tailored to meet
each agency's unique needs.
The law governing performance appraisal provides that agencies must
establish one or more appraisal systems, and that OPM must review and
approve an agency's system(s). OPM is proposing to define an agency
appraisal system as the agency's framework of policies and parameters
(i.e., guidelines, boundaries, limits) for the administration of
performance appraisal. (See Sec. 430.204.) Although an agency would be
authorized to establish more than one system, OPM anticipates that most
agencies will not find it necessary to do so. OPM goes on to propose
that within that OPM-approved framework, an agency would be free to
establish and adapt one or more appraisal programs of specific
procedures and requirements. (See Sec. 430.205.)
Consequently, when an agency has determined it can more effectively
meet the objectives for performance management to improve individual
and organizational performance by establishing different specific
performance appraisal procedures and requirements tailored to the
mission, work technology, and/or employees of its organizational
subcomponents or for subsets of positions, the proposed regulations
would authorize the agency to develop appropriate, separate appraisal
programs under the framework of its appraisal system.
Deregulating Performance Management
OPM is proposing implementation of NPR recommendations for
flexible, decentralized performance management through deregulation of
appraisal and awards. That deregulation would be achieved in at least
three ways.
First, the regulations have been reviewed to eliminate unnecessary
or redundant requirements. A number of requirements had been set forth
in regulation, but were not required by statute. Many of these that
have come to be unnecessarily constraining or burdensome (e.g.,
specifying required procedures for employees on details, requiring an
SF-50 for a time-off award) would be eliminated. On the other hand,
several regulations that merely repeat requirements that are already
clearly stated in statute would also be eliminated. In these instances,
of course, the statutory requirements will still be in effect.
Second, a number of regulatory requirements would be removed, not
because they were necessarily ineffective or redundant, but because
agencies should be free to use them without being required to use them.
For example, the proposal to eliminate the requirement for second-level
review of performance plans should not be taken as an indication that
OPM has concluded that second-level review is a bad idea. In many
instances, the reverse is true. However, OPM is proposing to achieve a
shift in policy perspective under which an agency's use of second-level
review in its performance management programs would reflect the
agency's program design choice rather than compliance with a
Governmentwide regulatory requirement. A similar situation can be found
in OPM's proposal to eliminate most restrictions on the use of time-off
awards. Many agencies may choose to retain some limits, and they would
be free to do so.
Another example of this form of deregulation that would implement
an authority without establishing a requirement is OPM's proposal to
delete subpart E (Performance Awards) of part 430 and integrate
provisions for rating-based cash awards into part 451
[[Page 5543]] (Awards). This would consolidate the regulatory structure
and clarify that rating-based cash performance award programs are an
option that agencies are authorized--but not required--to use.
Finally, deregulation would result from modifying OPM's review of
agency systems. An agency's appraisal system, or overall policy
framework, would still be reviewed and approved, as required by law,
for compliance with regulatory requirements. However, the scope of that
review would be limited to that required by law, and there would be
fewer regulatory requirements to review. The proposed regulation
returns the Governmentwide regulatory scheme for performance management
to the decentralized approach initially taken in implementing the Civil
Service Reform Act of 1978. The highly detailed regulatory requirements
that OPM is proposing to modify date to the mid-1980's, a time when
there was a strong policy interest in achieving Governmentwide
uniformity. Experience has provided substantial evidence that the ``one
size fits all'' approach does not support effective performance
management and needs to be changed.
Reinventing Performance Management
In addition to reducing the amount of regulation, OPM is proposing
regulatory revisions to facilitate applying performance management
regulations to improving individual and organizational performance. The
language and context of existing regulation is centered strongly in a
model of individual performance and recognition. The language, context,
and focus of effective performance management practice have altered
substantially in recent years. Many organizations have benefitted from
a shift to focusing on the group or team performance level. Such a
shift can greatly improve the credibility and utility of appraisal and
award processes and outcomes for achieving the objective of improving
organizational performance and mission accomplishment.
The current regulations stem from a model of appraisal based more
on process inputs and the duties and responsibilities in an employee's
individual position description and less on the results and
accomplishments for which that employee is accountable. Experience has
shown that those results and accomplishments are often more reasonably
and meaningfully described, and certainly measured, at the group or
team level. One objective in OPM's revision of appraisal and award
regulations is to ensure that they could be applied to managing group
performance. Consequently, many proposed revisions would remove
language (e.g., ``employee'' and ``position'') that narrowed the
regulation's focus to individual performance. Several appraisal-related
terms would be retained (e.g., appraisal, critical element,
performance), but their definitions modified to accommodate this
broader context.
OPM's goal is to establish a regulatory scheme that would operate
effectively at the individual and the team or group level. An agency
would still be able to design and operate its programs entirely at the
individual level. Establishing and maintaining individual
accountability and taking appropriate actions to deal with poor
performers must remain significant aspects of the Government's
performance management system. Therefore, the regulations would
continue to require that each employee have a performance plan, and OPM
is proposing to require that each plan must include at least one
critical element that addresses individual performance. (See
Sec. 430.206(b)(4).)
In addition to making changes to accommodate group performance, OPM
is proposing some revisions to the regulatory structure that are
intended to refocus attention away from the once-a-year summary rating
aspects of performance appraisal procedures and back toward the
processes involved in communicating performance expectations and
providing ongoing feedback. To that end, OPM is proposing to establish
separate sections within the appraisal subpart of part 430 that focus
on:
--Planning performance, (See Sec. 430.206.)
--Monitoring performance, (See Sec. 430.207.)
and
--Rating performance at the end of an appraisal period or cycle. (See
Sec. 430.208.)
The definition and requirements for a performance plan would be
broad enough to accommodate including other expressions of performance
expectations in addition to establishing elements and standards. (See
Sec. 430.203 and Sec. 430.206(b)(5).) This would facilitate agencies
integrating other performance planning processes with their appraisal
programs (for example, by including factors from performance contracts,
performance goals and targets, published customer service standards,
organization-level performance plans established under the Government
Performance and Results Act of 1993, etc.). The proposed regulations
seek only to establish clearly that agencies would be free to integrate
such planning tools and products and do not establish specific
requirements or procedures for doing so. Such factors could be
considered, for example, in designing incentive award schemes and
distributing rewards and recognition. However, such factors could not
be used as the basis for initiating a performance-based action, which
requires a determination that performance on a critical element is
``Unacceptable.''
Another area where OPM is proposing a broader context is the
process for deriving a summary rating. Although OPM is proposing to
permit as few as two summary rating levels (see below), it is also
anticipated that agencies will continue to have an interest in making
and recording further distinctions among the vast majority of employees
who meet basic performance expectations. OPM is proposing regulations
that would give agencies more flexibility in deriving and assigning
summary rating levels. For example, agencies would be able to--but not
required to--consider other performance-related factors beyond
appraisal of employee or group performance on critical elements. (See
Sec. 430.208(b).) Examples of such other factors include:
--Components from a performance plan such as meeting work plan
objectives or group performance goals that had not been specifically
framed as critical elements,
--A record of receiving awards for superior performance,
--A record of documented productivity gains,
--A non-critical element included in the performance plan to
communicate an expectation and standards that, if met, could raise a
summary rating above Level 3 (``Fully Successful'' or equivalent).
In addition, OPM is proposing to give agencies the flexibility to
use forced distributions of summary ratings above Level 3 (``Fully
Successful'' or equivalent), but only where those summary ratings above
that level are not derived solely based on a comparison of performance
against predetermined standards. An example of such a scheme would be
to use performance-related criteria to rank the employees whose
critical elements are all appraised as at least ``Fully Successful''
and assign the highest rating level to a limited number of employees.
It should be noted that the effectiveness and acceptance of such a
scheme would rest largely on the credibility and equity of the
processes and criteria used to rank the employees.
[[Page 5544]] Nevertheless, OPM is proposing to offer agencies this
flexibility. If performance standards defining the higher levels had
been established, an agency would be prohibited from prescribing a
distribution of ratings. (See Sec. 430.208(c).)
Within the awards arena of performance management, reinventing the
system of Governmentwide policies for recognition and reward programs
would be achieved by integrating rating-based cash performance award
provisions into the same regulatory part as other awards and by
simplifying those regulatory provisions. This would have the effect of
giving agencies a framework of broad, flexible principles for designing
and administering decentralized award programs, consistent with NPR
recommendations. Within those broad principles, agencies would be free
to design and operate a wide variety of tailor-made incentive and
recognition programs at the individual and group level, including most
of the alternative reward, variable pay, and pay-for-performance
schemes that can contribute to improving individual and organizational
performance.
Number of Summary Rating Levels
OPM is proposing to permit agencies to use as few as two levels for
summary performance ratings. Among summary rating levels, agencies
would be required to include a Level 1 (``Unacceptable'') and a Level 3
(``Fully Successful'' or equivalent). If more than two summary rating
levels were used, the agency could choose any combination from the
remaining three levels (i.e., Level 2, Level 4, and Level 5). Agencies
also would continue to be permitted to use equivalent terms for ``Fully
Successful'' and/or ``Outstanding.'' (See Sec. 430.208(d).)
Using the five possible summary rating-level designators
established at Sec. 430.208(d), the following table illustrates the
various patterns of levels available.
----------------------------------------------------------------------------------------------------------------
Summary rating level designator from new Sec. 430.208(d)
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Number of summary rating levels in Level 3
program Level 1 Level 2 (``fully Level 4 Level 5
(``unacceptable'') successful'') (``outstanding'')
----------------------------------------------------------------------------------------------------------------
Two..................................... X ....... X ....... .................
Three:
Option 1.............................. X ....... X ....... X
Option 2.............................. X ....... X X .................
Option 3.............................. X X X ....... .................
Four:
Option 1.............................. X ....... X X X
Option 2.............................. X X X ....... X
Option 3.............................. X X X X .................
Five X X X X X
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Permitting the use of only two summary rating levels would not
require a change in the rules governing additional service credit for
performance in determining an employee's retention standing for RIF
purposes since an appraisal program with only two summary rating levels
would be required to use Level 3 (``Fully Successful'' or equivalent)
to summarize acceptable performance. As set forth in 5 CFR
351.504(d)(3), an employee would receive ``Twelve additional years of
service credit for each performance rating of fully successful (Level
3) or equivalent.''
Number of Levels for Appraising Elements
OPM is proposing to permit agencies to use as few as two levels at
which to appraise performance on the elements in employee performance
plans. At a minimum, it must be determined whether performance is
``Fully Successful'' (or equivalent) or ``Unacceptable'' when appraised
against established performance standards. Agencies would still be
required to establish performance standards at the ``Fully Successful''
(or equivalent) level for critical and non-critical elements. Also,
agencies would continue to be permitted to determine performance to be
at a level that has no established performance standard but which has
been provided for by the applicable performance appraisal program. (See
Sec. 430.206(b)(6).)
Regulatory Changes in Awards
OPM is also proposing to revise regulations so that the
requirements governing all types of awards for non-SES employees would
be in part 451 of chapter 5 of the Code of Federal Regulations. The
proposed regulations provide for a few basic requirements within which
agencies can design award programs to meet their individual cultures
and needs.
The language throughout these regulations has been reviewed for its
use of the term ``incentive award(s).'' For many years since the
inception of the consolidated awards authority for Federal employees in
1954, the term ``incentive'' was used broadly to cover all types of
awards including those that are granted retrospectively at management
discretion to recognize past contributions, such as special acts or
suggestions. As awards theory and practice have developed in recent
years, however, ``incentive'' typically is applied somewhat more
restrictively to award programs, such as productivity gainsharing and
performance goalsharing schemes, that are designed to specify clearly
in advance what recognition and reward will be granted based on a given
contribution. Programs such as these have demonstrated their
effectiveness for improving performance. At the same time, awards that
recognize past contributions not specified in advance beyond some
general criteria remain an appropriate and effective use of the
authority to grant awards.
There is no strict definition or distinction for the term
``incentive'' that can be established or applied. Nevertheless, to
recognize trends in awards theory and practice, OPM is proposing to use
only the term ``award(s)'' in the broad regulations that cover both the
prespecified and the retrospective uses of the awards authority and
limit use of the term [[Page 5545]] ``incentive'' in the regulations to
situations where the relationship between contribution and award is
clearly specified in advance.
OPM is proposing to remove the separate subpart (subpart E) within
part 430 governing the use of rating-based cash performance awards and
to integrate a minimum number of essential provisions into subpart A of
part 451. (See Secs. 451.104(a)(3), 451.104(b) & (g), and 451.106(b),
(f) & (g).) OPM is also proposing to delete the separate subpart
(subpart C) within part 451 governing the use of time-off awards and to
integrate time-off awards within the more general award provisions.
(See Secs. 451.104(a) and 451.104(e).)
OPM is proposing new regulations to implement new statutory
provisions at 5 U.S.C. 4508 and 4509 concerning restrictions on awards
for senior political appointees. (See Sec. 451.105.) In addition, OPM
is proposing a new regulation that alerts agencies that when designing
award programs under this authority, they must ensure that award
schemes, especially those based on achievements other than those
directly related to an employee's performance plan, will not violate
any other statute or Governmentwide regulation. (See Sec. 451.106(a).)
Within-Grade Increase Flexibilities
OPM is proposing an agency-requested flexibility to permit the
delay of the acceptable level of competence (ALOC) determination
required for granting a within-grade increase when an employee has
begun an opportunity period or has been given a notice of a proposed
performance-based action. This option to delay an ALOC in no way
restrains an agency from establishing a policy to deny a within-grade
increase to an employee whose performance or rating of record supports
such a denial. Furthermore, in those agencies that choose to continue
using a Level 2 (``Minimally Successful'' or equivalent) summary rating
level, exercising the delay option would create an inequity between the
minimally acceptable and unacceptable employee in that the unacceptable
employee would be given additional time to achieve ALOC. (See
Sec. 531.409(c)(2).)
Another proposed flexibility would cover situations where agencies
have employees who are authorized to perform activities of official
interest to the agency (e.g., labor-management partnership activities
under section 2 of Executive Order 12871, serving as a representative
of a labor organization, etc.), but are not able to perform under
elements and standards (and, therefore, the agency is unable to provide
a rating of record). OPM is proposing to permit the agency to waive the
requirement for an ALOC determination and grant within-grade increases
upon completion of the applicable waiting period. This waiver option
recognizes that such employees have not had a sufficient opportunity to
perform under their assigned elements and standards due to the other
authorized activities and supposes that such performance would have
been at least ``Fully Successful'' had it occurred. (See
Sec. 531.409(d)(5).)
Eligibility for Quality Step Increases
Agencies are required by Executive Order 11721 to establish plans
for granting additional step increases to employees on the basis of
high quality performance. Current regulation at Sec. 531.504
establishes that a Level 5 (``Outstanding'' or equivalent) rating is
required for granting such a quality step increase (QSI). OPM
recognizes that agencies that choose to adopt two summary rating levels
or to not include a Level 5 summary rating level would not be able to
grant a QSI under current regulation, and thereby satisfy the
requirements of Executive Order 11721. Consequently, OPM proposes to
amend its pay regulations to permit an employee under an appraisal
program without a Level 5 summary rating level to be eligible for a QSI
based on demonstrating sustained performance that is significantly
higher than that expected at the ``Fully Successful'' level. Agencies
would be required to establish performance-related criteria for QSI
eligibility consistent with this requirement. (See Sec. 531.504.)
Appraisal System Transition
OPM is proposing a regulatory provision that would assist agencies
as they develop and implement new appraisal systems and programs under
new regulatory flexibilities. At the time that new regulatory
requirements and provisions become effective, it is essential to
support a smooth transition especially for agencies that might be
pursuing a pending administrative action initiated under the systems
that exist now. The regulatory provision would clarify that any
appraisal system that had been reviewed and officially approved by OPM
as of the effective date of the revised regulations would be considered
an approved system under the revised regulations until such time as
changes to the system are approved. This will permit agencies to pursue
pending actions and to continue to operate their existing appraisal
systems and initiate other actions based on appraisal results. (See
Sec. 430.201(b).)
Agencies should note that these regulatory changes establish no
requirements or deadlines to make appraisal system changes. The
flexibility the proposed regulations would achieve includes the
flexibility to continue agency appraisal policies, procedures, and
requirements that are already in use. OPM is proposing no regulatory
provision that would create a regulatory conflict for any appraisal
system already approved under current regulation.
OPM would provide guidance to agencies on requirements and
procedures for submitting system descriptions to OPM for review and
approval.
Major Proposed Changes to Performance Management Regulations
OPM also is proposing to amend its regulations in other ways to
provide additional flexibilities, eliminate burdensome requirements,
establish new provisions, and make conforming and editorial changes.
The following list summarizes the substantive changes, including those
discussed above.
Added Flexibilities and Reduced Requirements
1. Permits agencies to use as few as two performance levels for
appraising elements.
2. Permits agencies to use as few as two levels for summary
performance ratings.
3. Removes the requirement for OPM approval of plans for awards,
quality step increases, and within-grade increases, but retains
statutory requirement that OPM approve performance appraisal systems.
4. Permits recording of performance plans, ratings, etc., in
formats other than paper.
5. Deletes the requirement for higher-level review of performance
plans.
6. Replaces the requirement that agencies assist employees with
performance below Fully Successful with the statutory requirement to
assist with performance that is Unacceptable.
7. Replaces the total prohibition on forced distributions of
summary ratings with prohibitions limited to summary ratings below
Level 3 or situations where summary ratings are based solely on
appraisal against pre-established performance standards.
8. Deletes the requirement that a rating of record under one pay
system be used as the rating of record under a new system when there is
no change in duties or responsibilities.
9. Deletes the requirement for agencies to prepare a summary rating
when an employee changes position and [[Page 5546]] to specify how such
a rating is to be taken into account when preparing a rating of record.
10. Deletes fixed limits (90 to 120 days) on the length of the
minimum appraisal period, and replaces them with a requirement that a
minimum period be established.
11. Deletes specific requirements for rating employee performance
while on detail and replaces them with a requirement that an agency
appraisal program address appraisal while on detail.
12. Deletes the general requirement for higher-level approval of a
rating of record and replaces it with a requirement that only
``Unacceptable'' summary ratings be approved at a higher level.
13. Replaces the requirement for training supervisors and employees
on the appraisal process with a requirement to communicate about
relevant parts of the system and programs.
14. Deletes subpart E (Performance Awards) of part 430 and
incorporates some performance awards provisions into part 451 (Awards).
15. Deletes the recommendation to make maximum use of awards
authority.
16. Replaces the requirement to document awards in the OPF with a
provision for agencies to establish criteria to determine which awards
to document in the OPF.
17. Replaces the requirement for higher-level review of awards with
a requirement to follow agency financial management control procedures.
18. Deletes the requirements for an SF-50 for a time-off award and
for annual reports on performance awards and awards program activity,
and replaces them with a requirement to report data on all cash and
time-off awards to the CPDF.
19. Deletes the provision that awards cannot be used as substitutes
for pay or other personnel actions.
20. Deletes most regulatory provisions and requirements regarding
time-off awards, but retains the provision that prohibits converting a
time-off award to cash.
New Provisions
1. A distinction is made between an agency system (agencywide
policy and parameters) and an agency program (specific procedures,
forms, standards, etc.).
2. Agencies are encouraged to involve employees and their
representatives in the development of award and appraisal systems and
programs.
3. Key definitions and provisions have been broadened to explicitly
include teams.
4. Provision to maintain applicability of appraisal systems already
reviewed and approved by OPM is added.
5. At least one element in a performance plan must address
individual performance.
6. Agencies are to ensure that any award program they develop does
not conflict with any other applicable law or regulation.
7. OPM is authorized to grant agency requests to extend 5 U.S.C.
4505a to non-General Schedule employees as provided by Executive Order
12828.
8. The provision that a rating-based cash performance award cannot
be appealed is clarified to include all awards.
9. The statutory restrictions on granting awards to senior
political officials is added.
10. Agencies are to use the OPM Guide to Federal Workforce
Reporting Systems when reporting data.
11. OPM is authorized to evaluate agency award programs.
12. A provision permitting an agency to delay an ALOC determination
if the employee is in an opportunity period or notice period is added.
13. A provision permitting an agency to waive the ALOC
determination for employees who have been unable to perform under
elements and standards because they spent 100% of their time on
activities of official interest to the agency is added.
14. An agency that does not use the ``Outstanding'' (Level 5)
summary rating level will be permitted to establish performance-related
criteria and grant a quality step increase to an employee who
demonstrates significantly high quality performance.
Table of Changes
The following table lists all the proposed changes to the current
regulation, including those discussed above.
--In the left column, the table lists all current regulations in parts
430 and 451 and current regulations in parts 432 and 531 that are
impacted by the proposed regulations.
--In the middle column, the table lists the proposed regulations that
track the provisions of the current regulations in the left column.
--In the right column, the table explains the changes in provisions
from the current regulation in the left column to the proposed
regulation in the middle column.
----------------------------------------------------------------------------------------------------------------
Current rule Proposed rule Description of change
----------------------------------------------------------------------------------------------------------------
Sec. 430.101................ Sec. 430.101................ Proposed rule removes citation of incentive award
and pay statutes because they no longer apply.
Sec. 430.102................ Sec. 430.102(a)............. Proposed rule redefines performance management to
reorient the definition to team settings and goals
of the National Performance Review (NPR).
Sec. 430.103................ Sec. 430.102(c)............. Proposed rule redescribes the Performance Management
Plan; removes the requirement for OPM approval of
plans for awards, quality step increases, and
within-grade increases; the requirement for final
approval of component plans by OPM; and reference
to the Performance Management Plan Checklist to
provide greater agency flexibility and to reflect
OPM's scope of review.
Sec. 430.209 (a) & (f)...... Proposed rule revises and redesignates the provision
requiring submission of appraisal system(s), system
changes, and records to OPM to reflect OPM's scope
of review.
Sec. 430.201(a)............. Sec. 430.201(a)............. Proposed rule makes editorial changes to section
addressing statutory authority to eliminate
nonessential information.
Sec. 430.201(b)............. Proposed rule adds provision to maintain
applicability of performance appraisal systems
already reviewed and approved by OPM.
Sec. 430.201(b)............. Sec. 430.102(b)............. Proposed rule revises language that specifies
objectives of performance appraisal systems to
specify objectives of performance management and to
add references to teams.
Sec. 430.202(a)............. Sec. 430.202(a)............. Proposed rule attaches to ``General Schedule'' a
parenthetical reference to ``GS/GM'' to accommodate
termination of the Performance Management and
Recognition System.
Sec. 430.202(b)............. Sec. 430.202(b)............. Proposed rule deletes requirements regarding the
statutory authority under which agencies may
exclude temporary employees to increase agency
flexibility.
[[Page 5547]]
Sec. 430.202(c)............. Sec. 430.202(c)............. Proposed rule substitutes a ``minimum period
established by the agency'' for the fixed ``120
calendar days'' as the minimum period of time a
position is not reasonably expected to exceed to be
excluded from coverage for the purpose of
increasing agency flexibility.
Sec. 430.202(d)............. Sec. 430.202(d)............. No change.
Sec. 430.203................ Sec. 430.203................ Appraisal is broadened to allow more flexibility.
Appraisal period is revised to reinforce the
expectation that appraisal periods generally last
one year and to establish them as the basis for
ratings of record.
Appraisal program is added to distinguish specific
appraisal procedures and requirements from
agencywide appraisal policies and parameters
established for the administration of performance
appraisal within the agency.
Appraisal system is revised to clarify that it
refers only to an agencywide framework for
appraisal policy and to remove references to
various system requirements that would no longer
apply.
Critical element is broadened to facilitate using
performance planning to communicate expectations,
especially in team settings, by removing
classification-centered references to duties and
responsibilities of the position.
Non-critical element is deleted because it is not
needed.
Performance is revised to broaden the definition, to
reference work responsibilities as well as
assignments, and to remove the classification-
centered reference to a position to better
accommodate team settings.
Performance Appraisal System is retained without
change.
Performance Management Plan is deleted because it is
described in subpart A already.
Performance plan is revised to reorient the
definition to team settings and NPR goals and to
permit the performance plan to be recorded in
formats other than paper.
Performance rating is added to replace the
definition of ``summary rating'' which is no longer
needed, to permit the performance rating to be
recorded in formats other than paper, and to
acknowledge that non-critical elements are
optional.
Performance standard is revised to remove language
that implies that management should develop
standards without employee input and to improve
clarity.
Progress review is revised to emphasize
communication and the legitimacy of team elements
and standards.
Rating is deleted because it is not needed.
Rating of record is revised to refer to
``performance rating'' instead of ``summary
rating,'' to include the assignment of a summary
rating level, to remove reference to the
Performance Management Plan, to specify that the
rating of record generally applies to performance
over the entire appraisal period, and to specify
that all references to official ratings,
performance ratings, and ratings of record in title
5 of the Code of Federal Regulations refer to this
definition. The purpose of these changes is to
clarify the rating process and provide greater
flexibility.
Summary rating is deleted and replaced by a new
term, ``performance rating,'' and language in the
``rating of record'' definition (see above) to
clarify the rating process and provide greater
flexibility.
Sec. 430.204(a)............. Sec. 430.204(a)............. No change.
Sec. 430.204(b)............. Proposed rule adds new provision to require agencies
to establish agencywide policies and parameters and
sets forth minimum requirements for a system to
reflect OPM's scope of review.
Sec. 430.204(c),............ Proposed rule adds new provision to encourage
Sec. 430.204(d)............. employee involvement in system and program
development to reflect team settings and NPR goals.
Sec. 430.205(a)............. Proposed rule adds new provision that requires
agencies to develop at least one appraisal program
within the scope of agency systems to specify
procedures and requirements to operate the
performance appraisal system.
Sec. 430.205(c)............. Proposed rule adds new provision that permits the
development of separate appraisal programs to
implement decentralized performance appraisal.
Sec. 430.204(b)............. Sec. 430.206(b)(3), Sec. Proposed rule revises and redesignates provisions
430.207(b), Sec. 430.208(a) requiring performance plans, appraisals, and
summary ratings; and permits formats other than
paper for recording performance plans to clarify
the rating process and provide greater flexibility.
Sec. 430.204(c)............. Sec. 430.206(b)(1).......... Proposed rule retains provision for employee
participation in establishing performance plans,
deletes reference to examples of employee
participation in establishing performance plans to
eliminate nonessential information, and deletes the
provision that supervisory officials have ultimate
authority to establish such plans to accommodate
team settings and support NPR goals.
Sec. 430.204(d)(1).......... Sec. 430.206(b)(2)&(3)...... Proposed rule revises and redesignates the
provisions for job-related performance plans
provided at the beginning of the appraisal period
to clarify the rating process.
(b)(4)...................... Proposed rule adds new provision to ensure that at
least one element addresses individual performance.
Sec. 430.204(d)(2).......... Sec. 430.206(b)(5).......... Proposed rule revises and redesignates the provision
for the inclusion of organizational objectives in
performance plans to provide for team setting and
support NPR goals.
Sec. 430.204(e)............. Sec. 430.206(b)(6).......... Proposed rule permits agencies to use as few as two
levels to appraise elements to provide greater
flexibility (see section in supplementary
information above), and continues requirement for
Fully Successful standard and ability to appraise
at levels without explicit standards.
Sec. 430.204(f)............. Sec. 430.206(b)(6)(ii)...... Proposed rule revises and redesignates requirement
for written performance standard and deletes
requirement for higher-level review of performance
plans to provide greater flexibility.
[[Page 5548]]
Sec. 430.204(g)............. Sec. 430.208(b)............. Proposed rule revises and redesignates the
requirement for a summary rating method and
provides added flexibility in deriving summary
rating levels.
Sec. 430.204(h)............. Sec. 430.208(d)............. Proposed rule permits agencies to use as few as two
summary rating levels (Unacceptable and Fully
Successful) (see section in supplementary
information above) and permits use of other levels
to provide greater flexibility.
Sec. 430.204(i)............. Sec. 430.208(d) Sec. Proposed rule simplifies regulatory text and
430.209(3). replaces the outdated reference to the Federal
Personnel Manual with a reference to the current
OPM Guide to Federal Workforce Reporting Systems.
Sec. 430.204(j)............. Sec. 430.207(c)(1).......... Proposed rule clarifies that agencies are required
to assist employees with ``Unacceptable''
performance and deletes examples of assistance to
remove nonessential information.
Sec. 430.204(k)............. Sec. 430.207(c)()........... Proposed rule simplifies language addressing
unacceptable performance to delete information
stated elsewhere in regulation (performance-based
action can be taken either under procedures
established in part 432 or part 752, subpart D).
Sec. 430.204(1)............. ............................ Proposed rule deletes provision requiring ratings of
record under one pay system to be used as ratings
of record under a new pay system when there is no
change in the duties and responsibilities of the
position to provide greater flexibility.
Sec. 430.204(a)............. Sec. 430.206(a)............. Proposed rule revises and redesignates the
requirement for appraisal period and removes the
requirement for agencies to prepare a summary
rating when an employee changes position and to
specify how these are taken into account when
preparing ratings of record to clarify the rating
process and provide greater flexibility.
Sec. 430.205(b)............. Sec. 430.207(a)............. Proposed rule deletes fixed limits on the length of
minimum appraisal periods to provide greater
flexbility.
Sec. 430.205(c)............. Sec. 430.207(b)............. Proposed rule makes editorial changes to provisions
regarding appraising performance on each element
and progress reviews to increase emphasis on
communication.
Sec. 430.205(d)............. Sec. 430.205(b)............. Proposed rule replaces requirement to rate employee
performance while on detail with requirement that
programs address the issue to provide greater
flexibility.
Sec. 430.205(e)............. Sec. 430.207(b)............. Proposed rule revises and redesignates the
requirement for a progress review to increase
emphasis on communication.
Sec. 430.205(f)............. Sec. 430.208(f)............. Proposed rule revises the redesignates and provision
regarding rating disabled veterans to clarify
rating process.
Sec. 430.206(a)............. Sec. 430.208(a)............. Proposed rule revises and redesignates requirement
for rating of record to eliminate repeating
information in the definition and permits agencies
to use formats other than paper to give ratings of
record to employees.
Sec. 430.206(b)............. ............................ Proposed rule deletes a provision repeated in
current Sec. 430.205(c) and proposed Sec.
430.207(b) (see above).
Sec. 430.206(c)............. Sec. 430.208(e)............. Proposed rule limits requirement for higher-level
approval to ``Unacceptable'' ratings of record to
provide greater flexibility.
Sec. 430.206(d)............. Sec. 430.208(c)............. Proposed rule revises and redesignates the
prohibition of forced distribution, but limits it
to ratings below Level 3 or to situations where
employees are rated only against pre-established
standards, and removes the requirement that
agencies establish procedures to ensure that only
those employees who exceed normal expectations
receive ratings above Fully Successful. These
changes are made to provide greater flexibility.
Sec. 430.206(e)............. Sec. 430.208(g)............. Proposed rule makes editorial changes to provision
regarding extension of appraisal period to clarify
the rating process and provide greater flexibility.
Sec. 430.206(f)............. Sec. 430.209(b)............. Proposed rule revises and redesignates the
requirements to transfer ratings of record when
employees go to a new agency or organization to
clarify the rating process.
Sec. 430.207................ ............................ Proposed rule deletes reserved secton for
performance appraisal advisory committees that is
not needed.
Sec. 430.208................ Sec. 430.209 (c) & (d)...... Proposed rule replaces the requirement for training
supervisors and employees on the appraisal process
with requirement to communicate about the relevant
parts of the system(s) and programs to reflect
emphasis on communication and provide graeter
flexibility, and retains the requirement to
evaluate system(s) and programs.
Sec. 430.209................ Sec. 430.209(g)............. Proposed rule moves the requirement for agencies to
take corrective actions to clarify
responsibilities.
Sec. 430.210................ Proposed rule revises and redesignates OPM role to
reflect OPM's authority to review, evaluate, and
direct corrective action.
Sec. 430.210................ Sec. 430.209(a)............. Proposed rule clarifies that each agency must submit
its performance appraisal system(s) for OPM
approval.
Subpart E Performance Awards ............................ Proposed rule deletes this subpart and combines the
provision for performance awards into other
sections of part 451 to integrate awards policy and
support NPR goals.
Sec. 430.501(a)............. Sec. 451.101................ Proposed rule revises and redesignates the reference
to chapter 43, United States Code to accommodate
relocation of information.
Sec. 430.501(b)............. Sec. 451.101(c)............. Proposed rule makes editorial changes to provision
regarding definition of employees to accommodate
relocation of information.
Sec. 430.501(c)............. Sec. 451.101(c)............. Proposed rule makes editorial changes to provision
regarding definition of agencies to accommodate
relocation of information.
Sec. 430.501(d)............. ............................ Proposed rule deletes reference to part 451 for
regulatory requirements for granting superior
accomplishment awards that is no longer needed.
Sec. 430.502................ ............................ Proposed rule deletes definitions for performance
award, performance award budget, Performance
Management Plan, and rating of record that are no
longer needed.
Sec. 430.503(a)............. ............................ Proposed rule deletes purpose section for
performance awards that is no longer needed.
Sec. 430.503(b)............. Sec. 451.104(a)(3).......... Proposed rule revises and redesignates the provision
to permit use of a rating of record as the basis
for granting an award to accommodate relocation of
information.
[[Page 5549]]
Sec. 430.503(c)............. Sec. 451.106(g)............. Proposed rule replaces requirement to document
awards in OPF with provision for agencies to
establish criteria to determine which awards to
document in OPF to provide greater flexibility.
Sec. 430.503(d)............. Sec. 451.106(h)............. Proposed rule redesignates provision for giving due
weight to awards in promotions without change.
Sec. 430.503(e)............. ............................ Proposed rule deletes recommendation to make maximum
use of awards authority to remove nonessential
information.
Sec. 430.504(a)............. ............................ Proposed rule deletes repetition of the statutory
percentage limits for performance-based cash awards
at 5 U.S.C. 4505a(a)(2)(A).
Sec. 430.504(b)............. Sec. 451.104(b)............. Proposed rule revises and redesignates the provision
that cash awards are paid as lump sums to
accommodate relocation of information.
Sec. 430.504(c)............. Sec. 451.104(g)............. Proposed rule makes editorial changes regarding
application of locality pay to clarify language.
Sec. 430.504(d)............. Sec. 451.103(c)............. Proposed rule replaces higher level review of awards
based on a rating of record with requirement to
follow agency financial management control
procedures to give flexibility while maintaining
necessary levels of control.
Sec. 430.504(e)............. Sec. 451.104(h)............. Proposed rule moves the provision that a performance-
based cash award and its amount cannot be appealed
(5 U.S.C. 4505a (b)(2)). Resulting rule covers all
awards under this subpart. This change is made to
accommodate relocation of information and to
reflect that appeal rights are granted specifically
by statute.
Sec. 430.505................ ............................ Proposed rule deletes this section requiring OPM
approval of award plans to ease administrative
burden.
Sec. 430.506(a)............. Sec. 451.103(a)............. Proposed rule revises and redesignates the provision
to establish award programs to support NPR goals.
Sec. 430.506(b)(1) & (2).... ............................ Proposed rule deletes requirement for OPM approval
of agency award plans and changes to them to ease
administrative burden.
Sec. 430.506(b)(3).......... Sec. 451.106(b)............. Proposed rule revises and redesignates the
requirement for submitting awards in excess of
$10,000 to OPM to clarify the approval process.
Sec. 430.506(b)(4).......... Sec. 451.106(e)............. Proposed rule replaces required reports with
requirement to report cash and time off awards to
CPDF to reduce reporting requirements.
Sec. 432.103(b)............. Sec. 432.103(b)............. Critical element is revised to conform with its new
definition in Sec. 430.203.
Sec. 451.101................ Sec. 451.101(a)............. Proposed rule makes editorial changes to section
addressing statutory authority to accommodate
relocated rating-based award information.
Sec. 451.101(b)............. Proposed rule adds existing requirement for OPM to
prescribe procedures governing payment of certain
types of awards recommended by more than one agency
for a member of the armed forces as provided by
Executive Order 11438, and existing authority for
OPM approval of requests to extend 5 U.S.C. 4505a
to non-General Schedule employees as provided by
Executive Order 12828.
Sec. 451.101(c)............. Proposed rule combines location of statutory
definitions currently in Sec. 451.101(b) & (c).
Sec. 451.101(d)............. Proposed rule deletes reference to Part 430, subpart
E (performance awards) that no longer applies.
Sec. 451.102................ ............................ Proposed rule deletes description of superior
accomplishment awards because it is not needed.
Sec. 451.103................ Sec. 451.102................ Award or superior accomplishment award is replaced
and revised by Award to accommodate team settings;
Contribution, Intangible benefits, Non-monetary
award, Performance Management Plan, Special act or
service (including requirement that contribution be
non-recurring), Superior accomplishment award, and
Tangible benefits are deleted to increase
flexibility and because they are not needed to give
meaning to the provisions of part 451; and a
definition for award program is added to support
NPR goals.
Sec. 451.104(a)............. Sec. 451.103(a)............. Proposed rule revises and redesignates reference to
agency developed program(s) to provide greater
flexibility.
Sec. 451.103(b)............. Proposed rule adds new provision to encourage
employee involvement in system and program
development to support NPR goals.
Sec. 451.104(a)............. Proposed rule combines the various bases for
granting awards into one section to reflect
relocated information and support NPR goals.
Sec. 451.104(b)............. ............................ Proposed rule deletes an emphasis on determining a
contribution's value to the Government instead of
to the agency to increase flexibility.
Sec. 451.104(c)............. ............................ Proposed rule deletes explicit permission to grant
different awards and/or quality step increases
simultaneously for the same contribution(s) because
it is not needed.
Sec. 451.104(d)............. ............................ Proposed rule deletes provision that awards cannot
be used as substitutes for pay or other personnel
actions because it is not needed.
Sec. 451.104(e)(1).......... ............................ Proposed rule deletes repetition of statutory
requirement regarding contributions made while a
Government employee (5 U.S.C. 4505).
Sec. 451.104(e)(2).......... Sec. 451.103(c)(2).......... Proposed rule revises and redesignates the provision
for justification of awards to protect integrity of
award programs.
Sec. 451.104(e)(3).......... Sec. 451.103(c)(1).......... Proposed rule replaces requirement for higher-level
review of awards with requirement to follow agency
financial management control procedures to give
flexibility while maintaining necessary levels of
control.
Sec. 451.104(f)............. Sec. 451.104(e)............. Proposed rule redesignates provision for granting
awards to heirs or estates, and deletes the
repetition of a statutory requirement (5 U.S.C.
4502 (c)) that acceptance of an award releases the
Government from further claim.
Sec. 451.105................ Proposed rule adds new section regarding statutory
restrictions on granting awards to senior political
officials (5 U.S.C. 4508 and 4509) to clarify
coverage.
[[Page 5550]]
Sec. 451.106(a)............. Proposed rule rule adds new provision that requires
agencies to ensure that an award program does not
conflict with any other applicable law or
Governmentwide regulation to protect the integrity
of award programs.
Sec. 451.104(g)............. Sec. 451.106(i)............. Proposed rule revises and redesignates the provision
permitting agencies to determine which awards are
to be documented in the OPF to provide greater
flexibility.
Sec. 451.104(h)............. Sec. 451.106(h)............. Proposed rule revises and redesignates the provision
for giving due weight to awards in promotions to
reflect more accurately the statutory provision.
Sec. 451.104(i)............. Sec. 451.106(c)............. Proposed rule replaces the requirement for agencies
to provide training to supervisors and employees on
its award program(s) with requirement to provide
for communicating about award program(s) to reflect
emphasis on communication and provide greater
flexibility.
Sec. 451.106(d)............. Proposed rule revises and redesignates the provision
requiring agencies to evaluate award programs to
provide greater flexibility.
Sec. 451.104(j)............. Sec. 451.103(c)(1).......... Proposed rule replaces requirement for higher-level
approval of awards with requirement to follow
agency financial management control procedures to
give flexibility while maintaining necessary levels
of control.
Sec. 451.105(a)............. Sec. 451.104 (b)&(c)........ Proposed rule revises and redesignates the
provisions regarding award payments and taxation to
accommodate relocation of information and to
clarify requirements.
Sec. 451.105(b)............. Sec. 451.104(d)(1).......... Proposed rule makes editorial changes to paragraph
addressing agency responsibility for award payment
when the award is approved for an employee of
another agency to streamline regulatory text.
Sec. 451.105(c)............. Sec. 451.104(d)(2).......... Proposed rule makes editorial changes to paragraph
regarding payment of an award approved for a member
of the armed forces for a suggestion, invention, or
scientific achievement to streamline regulatory
text.
Sec. 451.106(a)............. ............................ Proposed rule deletes OPM approval of superior
accomplishment awards component of Performance
Management Plans to ease administrative burden.
Sec. 451.106(b)............. Sec. 451.107(a)............. Proposed rule clarifies that the limits established
for award payments apply to individuals only to
provide greater flexibility.
Sec. 451.107(b)............. Proposed rule establishes explicitly that
Presidential approval is required for award
payments over $25,000 that OPM has approved to
clarify the award approval process.
Sec. 451.107(a)............. ............................ Proposed rule deletes the requirement to submit a
superior accomplishment awards component of a
Performance Management Plan to OPM for approval to
ease administrative burden.
Sec. 451.107(a)(3).......... Sec. 451.106(b)............. Proposed rule makes editorial changes to provision
that agencies shall submit to OPM for approval all
award recommendations that would grant an
individual more than $10,000 to clarify the award
approval process.
Sec. 451.107(a)(4).......... Sec. 451.106(e)............. Proposed rule replaces requirement for an annual
report on the program's activities and expenditures
with a requirement to report all cash and time off
awards to the CPDF to reduce reporting
requirements.
Sec. 451.106(f)............. Proposed rule adds provision for agencies to use OPM
Guide to Federal Workforce Reporting Systems when
reporting award data to ensure proper reporting.
Sec. 451.106(g)............. Proposed rule permits OPM to define the records it
requires to meet the information needs of agencies
and other stakeholders.
Sec. 451.106(j)............. Proposed rule adds provision requiring agencies to
take corrective actions prescribed by OPM to ensure
compliance with law and regulation.
Sec. 451.107(b)............. ............................ Proposed rule deletes requirement that agencies
consider adopted ideas for wider application both
within the agency and Governmentwide to provide
greater flexibility.
Sec. 451.107(c)............. Proposed rule adds requirement for OPM to review and
determine whether to approve requests to extend the
provisions of 5 U.S.C. 4505a to non-General
Schedule employees to implement Executive Order
12828.
Sec. 451.107(d)............. Proposed rule adds new provision that permits OPM to
evaluate the application and operation of agency
award program(s) to support OPM's oversight
responsibilities.
Sec. 451.201................ Sec. 451.201................ Proposed rule adds new sentence to end of paragraph
(a) that cautions that Presidential awards under
this paragraph are subject to the restrictions as
specified in Sec. 451.105 (the statutory
restrictions at 5 U.S.C. 4508 and 4509) to
implement statute.
Subpart C Time Off Awards... ............................ Proposed rule deletes this subpart and combines the
provisions for time-off awards into other sections
of part 451 to integrate awards policy and support
NPR goals.
Sec. 451.306(d)............. Sec. 451.104(f)............. Proposed rule redesignates the provision prohibiting
the conversion of time off to cash with no change.
Sec. 531.401(c)&(d)......... Sec. 531.401(c)&(d)......... Proposed rule includes the title of Executive Order
11721 and Public Law 103-89 for easier reference.
Sec. 531.402(a)............. Sec. 531.402(a)............. Proposed rule replaces reference to maximum step
with maximum rate to accommodate GM employees.
Sec. 531.403................ Sec. 531.403................ Acceptable level of competence is revised to remove
reference to duties of the position to conform with
definition of critical element at Sec. 430.203 and
to include agency head in setting requirements to
provide greater flexibility.
Critical element is revised to update reference to
the redesignated definition section in performance
appraisal regulation.
Equivalent increase is revised to include reference
to higher rate of the grade to accommodate GM
employees.
Sec. 531.404................ Sec. 531.404................ Proposed rule replaces step 10 with maximum rate of
the grade to accommodate GM employees.
[[Page 5551]]
Sec. 531.404(a)............. Sec. 531.404(a)............. Proposed rule deletes reference to duties of the
position to conform with definition of critical
element at Sec. 430.203 and replaces reference to
the locus of the rating of record definition from
the agency Performance Management Plan to the
regulation at Sec. 430.204 to accommodate
regulatory changes.
Sec. 531.408................ Sec. 531.409(b)............. Proposed rule revises and redesignates provisions
for communicating performance requirements by
including a reference to subpart B, replacing
appraisal requirements by OPM for systems not under
part 430 with agency-established requirements, and
making other editorial changes to conform with
revised terms in part 430 to provide greater
flexibility.
Sec. 531.409(c)(2).......... Proposed rule adds new provision to permit
opportunity period and notice period as reasons for
delay of an ALOC (acceptable level of competence)
determination to provide greater flexibility.
Sec. 531.409(c)(2) (i) & Sec. 531.409(c)(3) (i) & Proposed rule redesignates provisions regarding
(iii). (iii). within-grade increase delays with no change.
Sec. 531.409(c)(2)(ii)...... Sec. 531.409(c)(3)(ii)...... Proposed rule makes editorial changes to conform
with the revised terms in part 430 and to reference
opportunity period.
Sec. 531.409(c)(3)(iv)...... Proposed rule adds requirement that within-grade
increase is not granted if performance is not at an
acceptable level of competence and references
follow-up procedures to clarify the within-grade
increase process.
Sec. 531.409(d)............. Sec. 531.409(d)............. Proposed rule makes editorial changes to conform
with the revised terms in part 430.
Sec. 531.409(d)(5).......... Proposed rule adds new provision that includes 100%
time spent on authorized activities of official
interest to the agency as a reason to waive an ALOC
determination to grant greater flexibility.
Sec. 531.409(d)(5).......... Sec. 531.409(d)(6).......... Proposed rule redesignates provision regarding long-
term training with no change.
Sec. 531.501................ Sec. 531.501................ Proposed rule includes the title of Executive Order
11721 for easier reference and removes partial
content of the Executive Order from regulation
because it is not needed.
Sec. 531.503................ Sec. 531.503................ Proposed rule establishes a merit system principle
rather than referencing recognition of outstanding
performance as the context for granting QSI's to
accommodate regulatory change at Sec. 531.504.
Sec. 531.504................ Sec. 531.504................ Proposed rule revises the provision to permit
agencies that choose not to have a Level 5 rating
in their appraisal programs to establish
performance-related criteria to grant QSI's to
provide greater flexibility.
Sec. 531.506................ Sec. 531.506................ Proposed rule removes reference to completion of
rating of record and ties effective date to
approval of QSI to provide greater flexibility.
Sec. 531.507................ ............................ Proposed rule removes requirement to include QSI
plan as part of Performance Management Plan to ease
administrative burden.
Sec. 531.507(a)-(e)......... Sec. 531.507(a)............. Proposed rule references rather than repeats the
requirements of Executive Order 11721 because they
are not needed.
Sec. 531.508(a)............. Sec. 531.507(b)............. Proposed rule revises and redesignates requirement
for reporting QSI usage to clarify responsibility.
Sec. 531.507(c)............. Proposed rule requires use of OPM's Guide to Federal
Workforce Reporting Systems for CPDF reporting to
ensure proper reporting.
Sec. 531.508(b)............. Sec. 531.508................ Proposed rule redesignates the provision for OPM
evaluation with no change in text.
----------------------------------------------------------------------------------------------------------------
E.O. 12866, Regulatory Review
This rule has been reviewed by the Office of Management and Budget
in accordance with E.O. 12866.
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 Parts 430 and 451
Decorations, medals, awards, Government employees.
5 CFR Part 432
Administrative practice and procedure, Government employees.
5 CFR Part 531
Government employees, Law enforcement officers, Wages.
U.S. Office of Personnel Management.
James B. King,
Director.
Accordingly, OPM is proposing to amend parts 430, 432, 451 and 531
of title 5, Code of Federal Regulations, as follows:
PART 430--PERFORMANCE MANAGEMENT
1. The authority citation for part 430 is revised to read as
follows:
Authority: 5 U.S.C. chapter 43.
2. Subpart A is revised to read as follows:
Subpart A--Performance Management
Sec.
430.101 Authority.
430.102 Performance management.
Subpart A--Performance Management
Sec. 430.101 Authority.
Chapter 43 of title 5, United States Code, provides for performance
appraisal of Federal employees. This subpart supplements and implements
this portion of the law.
Sec. 430.102 Performance management.
(a) Performance management is the systematic process by which an
agency involves its employees, as individuals and members of a group,
in improving organizational effectiveness in the accomplishment of
agency mission and goals.
(b) Performance management integrates the processes an agency uses
to--
(1) Communicate and clarify organizational goals to employees;
(2) Identify individual and, where applicable, team accountability
for accomplishing organizational goals;
(3) Identify and address developmental needs for individuals and,
where applicable, teams;
(4) Assess and improve individual and organizational performance;
[[Page 5552]]
(5) Use appropriate measures of performance as the basis for
recognizing and rewarding accomplishments; and
(6) Use the results of performance appraisal as a basis for
appropriate personnel actions.
(c) A Performance Management Plan is the description of an agency's
framework for implementing all aspects of performance management and
shall include, but not be limited to, the agency performance appraisal
system(s) (as defined in Secs. 430.203 and 430.303) and the agency
award program(s) (as defined in Sec. 451.102).
3. Subpart B, consisting of Secs. 430.201 through 430.210, is
revised to read as follows:
Subpart B--Performance Appraisal for General Schedule, Prevailing Rate,
and Certain Other Employees
Sec.
430.201 General.
430.202 Coverage.
430.203 Definitions.
430.204 Agency performance appraisal system(s).
430.205 Agency performance appraisal program(s).
430.206 Planning performance.
430.207 Monitoring performance.
430.208 Rating performance.
430.209 Agency responsibilities.
430.210 OPM responsibilities.
Subpart B--Performance Appraisal for General Schedule, Prevailing
Rate, and Certain Other Employees
Sec. 430.201 General.
(a) Statutory authority. Chapter 43 of title 5, United States
Code, provides for the establishment of agency performance appraisal
systems and requires the Office of Personnel Management (OPM) to
prescribe regulations governing such systems. The regulations in this
subpart in combination with statute set forth the requirements for
agency performance appraisal system(s) and program(s) for employees
covered by subchapter I of chapter 43.
(b) Savings provision. The performance appraisal system portion of
an agency's performance management plan approved by OPM as of the
effective date of these regulations shall constitute an approved
performance appraisal system under these regulations until such time
changes to the system are approved. No provision of these regulations
shall be applied in such a way as to affect any administrative
proceeding related to any action taken under regulations in this
chapter pending at the effective date of the regulations in this
subpart.
Sec. 430.202 Coverage.
(a) Employees and agencies covered by statute. (1) Section 4301(1)
of title 5, United States Code, defines agencies covered by this
subpart.
(2) Section 4301(2) of title 5, United States Code, defines
employees covered by statute by this subpart. Besides General Schedule
(GS/GM) and prevailing rate employees, coverage includes, but is not
limited to, senior-level and scientific and professional employees paid
under 5 U.S.C. 5376.
(b) Statutory exclusions. This subpart does not apply to agencies
or employees excluded by 5 U.S.C. 4301(1) and (2), the United States
Postal Service, or the Postal Rate Commission.
(c) Administrative exclusions. OPM may exclude any position or
group of positions in the excepted service under the authority of 5
U.S.C. 4301(2)(G). This regulation excludes excepted service positions
for which employment is not reasonably expected to exceed the minimum
period established by the agency under Sec. 430.207(a) in a consecutive
12-month period.
(d) Agency requests for exclusions. Heads of agencies or their
designees may request the Director of OPM to exclude positions in the
excepted service. The request must be in writing, explaining why the
exclusion would be in the interest of good administration.
Sec. 430.203 Definitions.
In this subpart, terms are defined as follows:
Appraisal means the process under which performance is reviewed and
evaluated.
Appraisal period means the period of time (generally 1 year)
established by an agency for which performance will be reviewed and a
rating of record will be prepared.
Appraisal program means the specific procedures and requirements
established by an agency or the components of an agency within the
policies and parameters covered by the agency appraisal system(s).
Appraisal system means the framework of agencywide policies and
parameters for the administration of performance appraisal programs
established under subchapter I of chapter 43 of title 5, United States
Code, and this subpart within an agency as defined at 5 U.S.C. 4301(1).
Critical element means a work assignment or responsibility of such
importance that unacceptable performance on the element would result in
a determination that overall performance is unacceptable.
Performance means accomplishment of work assignments or
responsibilities.
Performance appraisal system: see Appraisal system.
Performance plan means all of the written, or otherwise recorded,
individual, team, or organizational performance factors that lead to
the assignment of an employee's summary rating level. A plan contains
the critical elements based on employee assignments and
responsibilities, and their related performance standard(s), and may
contain other performance-related factors including, but not limited
to, non-critical elements.
Performance rating means the written, or otherwise recorded,
appraisal of performance compared to the performance standard(s) for
each critical element (and non-critical element, where applicable) on
which there has been an opportunity to perform for the minimum period.
Performance standard means the management-approved expression of
the performance threshold(s), requirement(s), or expectation(s) for an
element that must be met to be appraised at a particular level of
performance (as specified in Sec. 430.206(b)(6)(i) of this subpart). A
performance standard may include, but is not limited to, factors such
as quality, quantity, timeliness, and manner of performance.
Progress review means communicating with the employee about
performance on individual and, where applicable, team elements and
standard(s).
Rating of record means the performance rating prepared at the end
of an appraisal period (under provisions specified by the agency) for
performance over the entire period and the assignment of a summary
rating level (as specified in Sec. 430.208(d)). This constitutes the
official rating of record referenced in this chapter.
Sec. 430.204 Agency performance appraisal system(s).
(a) Each agency as defined at section 4301(1) of title 5, United
States Code, shall develop one or more performance appraisal systems
for employees covered by this subpart.
(b) The agency system(s) shall establish agencywide policies and
parameters for the application and operation of performance appraisal
within the agency. At a minimum, an agency system shall--
(1) Provide for--
(i) Establishing employee performance plans, including, but not
limited to, critical elements and performance standards; [[Page 5553]]
(ii) Communicating performance plans to employees at the beginning
of an appraisal period;
(iii) Evaluating each employee during the appraisal period on the
employee's elements and standards;
(iv) Recognizing and rewarding employees whose performance so
warrants;
(v) Assisting employees in improving unacceptable performance; and
(vi) Reassigning, reducing in grade, or removing employees who
continue to have unacceptable performance, but only after an
opportunity to demonstrate acceptable performance.
(2) Identify employees covered by the system;
(3) Establish the permissible values (including, but not limited
to, number of days and number of levels) that an agency program may use
for--
(i) The appraisal period (as specified in Sec. 430.206(a));
(ii) The minimum period (as specified in Sec. 430.207(a));
(iii) The number(s) of performance levels at which elements shall
be appraised (as specified in Sec. 430.206(b)(6)); and
(iv) The number of summary rating levels that may be assigned in a
rating of record (as specified in Sec. 430.208(d)); and
(4) Include, where applicable, criteria and procedures for
establishing separate appraisal programs within the agency; and
(5) Require that an agency appraisal program shall conform to
statute and the regulations of this chapter.
(c) Agencies are encouraged to involve employees and their
representatives in developing and implementing their system(s).
Sec. 430.205 Agency performance appraisal program(s).
(a) Each agency shall establish at least one appraisal program of
specific procedures and requirements to be implemented in accordance
with the agency's appraisal system(s). At a minimum, each appraisal
program shall include procedures and requirements for planning
performance as specified in Sec. 430.206, monitoring performance as
specified in Sec. 430.207, and rating performance as specified in
Sec. 430.208.
(b) An agency program shall establish criteria and procedures to
address employee performance for employees who are on detail, who are
transferred, or for other special circumstances as established by the
agency.
(c) An agency may permit the development of separate appraisal
programs under the framework of its appraisal system(s).
(d) Agencies are encouraged to involve employees and their
representatives in developing and implementing their program(s).
Sec. 430.206 Planning performance.
(a) Appraisal period. (1) An appraisal program shall designate an
official appraisal period for which a performance plan shall be
prepared, during which performance shall be monitored, and for which a
rating of record shall be prepared.
(2) The appraisal period shall generally be designated so that
employees shall be provided a rating of record on an annual basis. An
appraisal program may provide that longer appraisal periods may be
designated when work assignments and responsibilities so warrant or
performance management objectives can be achieved more effectively.
(b) Performance plan. (1) Agencies shall encourage employee
participation in establishing performance plans.
(2) Performance plans shall be provided to employees at the
beginning of each appraisal period (normally within 30 days).
(3) An appraisal program shall require that each employee be
covered by an appropriate written, or otherwise recorded, performance
plan based on work assignments and responsibilities.
(4) Each performance plan shall include at least one critical
element that addresses individual performance.
(5) When appropriate, performance plans may also include
accomplishment of team, group, or organizational objectives by
incorporating elements, objectives, goals, program plans, work plans,
or by other similar means that account for program results.
(6) (i) An appraisal program shall provide for establishing the
number of levels at which performance on an element may be appraised.
At a minimum, two levels shall be used, with one level being ``Fully
Successful'' or its equivalent and another level being
``Unacceptable.''
(ii) A performance standard shall be established at the ``Fully
Successful'' level for each element and may be established at other
levels.
(iii) The absence of an established standard at a level specified
in the program shall not preclude a determination that performance is
at that level.
Sec. 430.207 Monitoring performance.
(a) Minimum period. An appraisal program shall establish a minimum
period before any performance determination can be made.
(b) Ongoing appraisal. An appraisal program shall include methods
for appraising each element in the performance plan during the
appraisal period, unless there has been insufficient opportunity to
demonstrate performance on the element. Such methods shall include, but
not be limited to, conducting one or more progress reviews during each
appraisal period.
(c) Unacceptable performance. At any time during the appraisal
period that performance is determined to be unacceptable in one or more
critical elements, an appraisal program shall provide for--
(1) Assisting employees in improving unacceptable performance; and
(2) Taking action based on unacceptable performance.
Sec. 430.208 Rating performance.
(a) As soon as practicable after the end of the appraisal period, a
written, or otherwise recorded, rating of record shall be given to each
employee.
(b) Rating of record procedures for each appraisal program shall
include a method for deriving a summary rating and assigning a summary
rating level as specified in paragraph (d) of this section based at a
minimum on appraisal of performance on critical elements, and, at
agency discretion, consideration of other performance-related factors
including, but not limited to, appraisal of performance on non-critical
elements.
(1) A summary rating above Level 1 (``Unacceptable'') shall not be
assigned if performance on any critical element has been appraised as
``Unacceptable.''
(2) Consideration of other performance-related factors shall not
result in assigning a summary rating of Level 1 (``Unacceptable'') if
each critical element has been appraised at least ``Fully Successful''
(or equivalent).
(c) An appraisal program shall not establish a forced distribution
of summary ratings--
(1) Below Level 3 (``Fully Successful'' or equivalent); or
(2) If those summary ratings are derived solely from an appraisal
of performance against pre-established standards.
(d) Summary rating levels. (1) An appraisal program shall provide
for--
(i) At least two and not more than five summary rating levels;
(ii) A Level 1 (``Unacceptable'') summary rating level; and
(iii) A Level 3 (``Fully Successful'' or equivalent) summary rating
level.
(2) If more than two summary rating levels are used, agencies may
provide for any combination of additional summary rating levels (Level
2, Level 4, and Level 5) provided that--
(i) Level 2, if used, is a rating level above Level 1 and below
Level 3; and [[Page 5554]]
(ii) Level 4, if used, is a rating level above Level 3 and below
Level 5 (``Outstanding'' or equivalent), if used.
(3) The term ``Outstanding'' shall be used only to describe a Level
5 summary rating level.
(4) The summary rating level designator (Level 1 through Level 5)
shall be used to provide consistency in describing ratings of record
and in referencing other related regulations (including, but not
limited to, Sec. 351.504 of this chapter).
(e) A rating of record of ``Unacceptable'' (Level 1) shall be
reviewed and approved by a higher level management official.
(f) The rating of record or performance rating for a disabled
veteran shall not be lowered because the veteran has been absent from
work to seek medical treatment as provided in Executive Order 5396.
(g) When a rating of record cannot be prepared at the time
specified, the appraisal period shall be extended. Once the conditions
necessary to complete a rating of record have been met, a rating of
record shall be prepared as soon as practicable.
(h) A performance rating may be prepared at such other times as an
appraisal program may specify for special circumstances including, but
not limited to, transfers and performance on details.
Sec. 430.209 Agency responsibilities.
An agency shall--
(a) Submit to OPM for approval a description of its appraisal
system(s) as specified in Sec. 430.204(b) of this subpart, and any
subsequent changes that modify any element of the agency's system(s)
that is subject to a regulatory requirement in this part;
(b) Transfer the employee's most recent rating of record, and any
subsequent performance ratings, when an employee transfers to another
agency or is assigned to another organization within the agency;
(c) Require communication with supervisors and employees about
relevant parts of its performance appraisal system(s) and program(s);
(d) Evaluate the performance appraisal system(s) contained in its
Performance Management Plan and performance appraisal program(s) in
operation in the agency;
(e) Use OPM's Guide to Federal Workforce Reporting Systems to
report ratings of record data to the CPDF;
(f) Maintain and submit such records as OPM may require; and
(g) Take any action required by OPM to ensure conformance with
applicable law, regulation, and OPM policy.
Sec. 430.210 OPM responsibilities.
(a) OPM shall review and approve an agency's performance appraisal
system(s).
(b) OPM may evaluate the operation and application of an agency's
performance appraisal system(s) and program(s).
(c) If OPM determines that an appraisal system or program does not
meet the requirements of applicable law, regulation, or OPM policy, it
shall direct the agency to implement an appropriate system or program
or to take other corrective action.
4. Subpart D [Reserved] and Subpart E, consisting of Secs. 430.501
through 430.506, are removed.
PART 432--PERFORMANCE BASED REDUCTION IN GRADE AND REMOVAL ACTIONS
5. The authority citation for part 432 continues to read as
follows:
Authority: 5 U.S.C. 4303, 4305.
6. In Sec. 432.103, paragraph (b) is revised to read as follows:
Sec. 432.103 Definitions.
* * * * *
(b) Critical element means a work assignment or responsibility of
such importance that unacceptable performance on the element would
result in a determination that overall performance is unacceptable.
* * * * *
PART 451--AWARDS
7. The heading of part 451 is revised to read as follows:
PART 451--AWARDS
8. The authority citation for part 451 is revised to read as
follows:
Authority: 5 U.S.C. 4302, 4501-4507; E.O. 11438, 12828.
9. Subpart A, consisting of Secs. 451.101 through 451.107, is
revised to read as follows:
Subpart A--Agency Awards
Sec.
451.101 Authority and Coverage.
451.102 Definitions.
451.103 Agency award program(s).
451.104 Awards.
451.105 Award restrictions.
451.106 Agency responsibilities.
451.107 OPM responsibilities.
Subpart A--Agency Awards
Sec. 451.101 Authority and coverage.
(a) Chapter 45 of title 5, United States Code authorizes agencies
to pay a cash award to, grant time-off to, and incur necessary expense
for the honorary recognition of, an employee (individually or as a
member of a group) and requires the Office of Personnel Management to
prescribe regulations governing such authority. Chapter 43 of title 5,
United States Codes provides for recognizing and rewarding employees
whose performance so warrants. The regulations in this subpart, in
combination with the chapters 43 and 45, United States Code, and any
other applicable law, establish the requirements for agency award
programs.
(b) Section 4 of E.O. 11438 (Prescribing Procedures Governing
Interdepartmental Cash Awards to the Members of the Armed Forces,
December 3, 1968) requires the Office of Personnel Management to
prescribe procedures for covering the cost of a cash award recommended
by more than one agency for a member of the armed forces for the
adoption or use of a suggestion, invention, or scientific achievement.
Section 1 of E.O. 12828 (Delegation of Certain Personnel Management
Authorities, January 5, 1993) delegates to the Office of Personnel
Management the authority of the President to permit performance-based
cash awards under 5 U.S.C. 4505a to be paid to categories of employees
who would not be eligible otherwise.
(c) This subpart applies to employees as defined by section 2105
and agencies as defined by section 4501 of title 5, United States Code,
except as provided in Secs. 451.105 and 451.201(a).
(d) For the regulatory requirements for granting performance awards
to Senior Executive Service (SES) employees based on an employee's
performance appraisal and rating of record, refer to Sec. 534.403 of
this chapter.
Sec. 451.102 Definitions.
Award means something bestowed or an action taken to recognize and
reward individual or team achievement that contributes to meeting
organizational goals or improving the efficiency, effectiveness, and
economy of the Government or is otherwise in the public interest. Such
awards include, but are not limited to, employee incentives (e.g.,
agency productivity gainshares), which are based on predetermined
criteria such as productivity standards, performance goals, measurement
systems, award formulas, or payout schedules.
Award program means the specific procedures and requirements
established by an agency or a component of an agency for granting
awards under subchapter I of chapter 43 and of chapter 45 of title 5,
United States Code, and this subpart. [[Page 5555]]
Sec. 451.103 Agency award program(s).
(a) Agencies shall develop one or more award programs for employees
covered by this subpart.
(b) Agencies are encouraged to include employees and their
representatives in developing such programs.
(c) An agency award program shall provide for--
(1) Obligating funds consistent with applicable agency financial
management controls and delegations of authority; and
(2) Documenting justification for awards that are not based on a
rating of record (as defined in Sec. 430.203 of this chapter).
Sec. 451.104 Awards.
(a) An agency may grant a cash, honorary, or informal recognition
award, or grant time-off without charge to leave or loss of pay
consistent with chapter 45 of title 5, United States Code, and this
part to an employee, as an individual or member of a group, on the
basis of--
(1) A suggestion, invention, superior accomplishment, or other
personal effort that contributes to the efficiency, economy, or other
improvement of Government operations or achieves a significant
reduction in paperwork;
(2) A special act or service in the public interest in connection
with or related to official employment; or
(3) Performance as reflected in the employee's most recent rating
of record (as defined in Sec. 430.203 of this chapter), except that
such awards may be paid to SES employees only under Sec. 534.403 of
this chapter and not on the basis of this subpart.
(b) A cash award under this subpart is a lump sum in addition to
regular pay and does not increase an employee's rate of basic pay.
(c) An award is subject to the withholding of taxes.
(d) When an award is approved for--
(1) An employee of another agency, the benefiting agency shall make
arrangements to transfer funds to the employing agency to cover the
award. If the administrative costs of transferring funds would exceed
the amount of the award, the employing agency shall absorb the award
costs and pay the award; and
(2) A member of the armed forces for a suggestion, invention, or
scientific achievement, arrangements shall be made to transfer funds to
the agency having jurisdiction over the member in accordance with E.O.
11438, ``Prescribing Procedures Governing Interdepartmental Cash Awards
to the Members of the Armed Forces''.
(e) An award may be granted to the legal heirs or estates of
deceased employees.
(f) A time-off award granted under this subpart shall not be
converted to a cash payment under any circumstances.
(g) When granting an award on the basis of a rating of record that
is paid as a percentage of basic pay under 5 U.S.C. 4505a(a)(2)(A), the
rate of basic pay used shall be determined without taking into account
any locality-based comparability payment under 5 U.S.C. 5304 or an
interim geographic adjustment or special law enforcement adjustment
under section 302 or 404 of the Federal Employees Pay Comparability Act
of 1990, respectively.
(h) Employees may not appeal an agency's decision not to grant an
award or the amount of such an award. This does not affect any right or
remedy under subchapter II of chapter 12, chapter 71, or section
2302(d) of title 5, United States Code.
Sec. 451.105 Award restrictions.
(a) Agencies shall not grant awards under this subpart during a
Presidential election period (as defined at 5 U.S.C. 4508) to employees
who are--
(1) In the Senior Executive Service and not career appointees
(i.e., non-career or limited appointees), or
(2) In an excepted service position of a confidential or policy-
determining character (schedule C).
(b) Agencies shall not grant cash awards under this subpart to
employees appointed by the President with Senate confirmation who serve
in--
(1) An Executive Schedule position, or
(2) A position for which pay is set in statute by reference to a
section or level of the Executive Schedule.
Sec. 451.106 Agency responsibilities.
(a) In establishing and operating its award program(s), an agency
shall assure that a program does not conflict with or violate any other
law or Governmentwide regulation.
(b) When a recommended award would grant over $10,000 to an
individual employee, the agency shall submit the recommendation to OPM
for approval.
(c) Agencies shall provide for communicating with employees and
supervisors about the relevant parts of their award program(s).
(d) Agencies shall evaluate their award program(s).
(e) Agencies shall report all cash and time off awards to the CPDF.
(f) Agencies shall use OPM's Guide to Federal Workforce Reporting
Systems to report award data to the CPDF.
(g) Agencies shall maintain and submit such records as OPM may
require.
(h) Agencies shall give due weight to an award granted under this
part in qualifying and selecting an employee for promotion as provided
in 5 U.S.C. 3362.
(i) Agencies shall establish criteria for identifying which awards
to document in the Official Personnel Folder in conformance with OPM's
Guide to Personnel Recordkeeping.
(j) Agencies shall take any corrective action required by OPM to
ensure conformance with applicable law, regulation, and OPM policy.
Sec. 451.107 OPM responsibilities.
(a) OPM shall review and approve or disapprove each agency
recommendation for an award that would grant over $10,000 to an
individual employee.
(b) When a recommended award would grant over $25,000 to an
individual employee, OPM shall review the recommendation and submit it
(if approved) to the President for final approval.
(c) OPM shall review and approve or disapprove a request from the
head of an Executive agency to extend the provisions of 5 U.S.C. 4505a
to any category of employees within that agency that would not be
covered otherwise.
(d) OPM may evaluate the operation and application of an agency's
award program(s).
10. In Sec. 451.201, the second introductory paragraph (a) is
removed, paragraph (b), (c), and (d) are redesignated as paragraphs
(c), (d), and (e) respectively, and a new paragraph (b) is added to
read as follows:
Sec. 451.201 Authority and coverage.
* * * * *
(b) Awards granted under paragraph (a) are subject to the
restrictions as specified in Sec. 451.105.
* * * * *
11. Subpart C, consisting of Secs. 451.301 through 451.307, is
removed.
PART 531--PAY UNDER THE GENERAL SCHEDULE
12. The authority citation for part 531 is revised to read as
follows:
Authority: 5 U.S.C. 5115, 5307, and 5338; sec. 4 of Pub. L. 103-
89, 107 Stat. 981; and E.O. 12748, 56 FR 4521, February 4, 1991, 3
CFR 1991 Comp., p. 316;
Subpart A also issued under 5 U.S.C. 5304, 5305, and 5553; section
302 of the Federal Employees Pay Comparability Act of 1990 (FEPCA),
Pub. L. 101-509, 104 Stat. 1462; and E.O. 12786, 56 FR
[[Page 5556]] 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 5 U.S.C. 5304, 5305, and 5553; sections
302 and 404 of FEPCA, Pub. L. 101-509, 104 Stat. 1462 and 1466; and
section 3(7) of Pub. L. 102-378, 106 Stat. 1356;
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.
13. In Sec. 531.401, paragraphs (c) and (d) are revised to read as
follows:
Sec. 531.401 Principal authorities.
* * * * *
(c) Section 402 of E.O. 11721 (Providing for Federal Pay
Administration, May 23, 1973), as amended, provides that ``The Civil
Service Commission (Office of Personnel Management) shall issue such
regulations and standards as may be necessary to ensure that only those
employees whose work is of an acceptable level of competence receive
periodic step-increases under the provisions of section 5335 of title
5, United States Code.''
(d) Section 4 of Public Law 103-89 (Performance Management and
Recognition System Termination Act of 1993) provides that ``the Office
of Personnel Management shall prescribe regulations necessary for the
administration of this section.''
14. In Sec. 531.402, paragraph (a) is revised to read as follows:
Sec. 531.402 Employee coverage.
(a) Except as provided in paragraph (b) of this section, this
subpart applies to employees who occupy permanent positions classified
and paid under the General Schedule and who are paid at less than the
maximum rate of their grades.
* * * * *
15. In Sec. 531.403, the definitions of acceptable level of
competence, critical element, and equivalent increase are revised to
read as follows:
Sec. 531.403 Definitions.
* * * * *
Acceptable level of competence means performance by an employee
that warrants advancement of the employee's rate of basic pay to the
next higher step of the grade (or, in the case of a GM employee, the
next higher rate within the grade) of his or her position, subject to
the requirements of Sec. 531.404 of this subpart, as determined by the
head of the agency.
* * * * *
Critical element has the meaning given that term in Sec. 430.203 of
this chapter.
* * * * *
Equivalent increase means an increase or increases in an employee's
rate of basic pay equal to or greater than the difference between the
employee's rate of basic pay and the rate of pay for the next higher
step of that grade (or, in the case of a GM employee, the next higher
rate within the grade).
* * * * *
16. In Sec. 531.404, the introductory text, and the introductory
text of paragraph (a) are revised to read as follows:
Sec. 531.404 Earning within-grade increase.
An employee paid at less than the maximum rate of the grade of his
or her position shall earn advancement in pay to the next higher step
of the grade or the next higher rate within the grade (as defined in
Sec. 531.403) upon meeting the following three requirements established
by law:
(a) The employee's performance must be at an acceptable level of
competence, as defined in this subpart by authority of section 402 of
E.O. 11721, as amended. To be determined at an acceptable level of
competence, the employee's most recent rating of record (as defined in
Sec. 430.203 of this chapter) shall be at least Level 3 (``Fully
Successful'' or equivalent).
* * * * *
17. Section 531.408 is removed and reserved.
Sec. 531.408 [Reserved].
18. In Sec. 531.409, paragraph (b) is revised, paragraph (c)(2) is
redesignated as paragraph (c)(3) and revised, a new paragraph (c)(2) is
added, the introductory text to paragraph (d) is revised, paragraph
(d)(4) is revised, paragraph (d)(5) is redesignated as paragraph
(d)(6), a new paragraph (d)(5) is added, and the concluding text at the
end of paragraph (d) is revised to read as follows:
Sec. 531.409 Acceptable level of competence determinations.
* * * * *
(b) Basis for determination. When applicable, an acceptable level
of competence determination shall be based on a current rating of
record made under part 430, subpart B, of this chapter. For those
agencies not covered by chapter 43 of title 5, United States Code, and
for employees in positions excluded from 5 U.S.C. 4301, an acceptable
level of competence determination shall be based on performance
appraisal requirements established by the agency. If an employee has
been reduced in grade because of unacceptable performance and has
served in one position at the lower grade for at least the minimum
period established by the agency, a rating of record at the lower grade
shall be used as the basis for an acceptable level of competence
determination.
(c) * * *
(2) An acceptable level of competence determination may be delayed
during an employee's opportunity to demonstrate acceptable performance
(as defined at Sec. 432.103(d)) of this chapter or during a notice
period for a proposed performance-based action under part 432 or 752 of
this chapter.
(3) When an acceptable level of competence determination has been
delayed under this subpart:
(i) The employee shall be informed that his or her determination is
postponed and, where applicable, the rating period extended and shall
be told of the specific requirements for performance at an acceptable
level of competence.
(ii) An acceptable level of competence determination shall then be
made upon completion of either the minimum period established by the
agency or the opportunity to demonstrate acceptable performance.
(iii) If, following the delay, the employee's performance is
determined to be at an acceptable level of competence, the within-grade
increase shall be granted retroactively to the beginning of the pay
period following completion of the applicable waiting period.
(iv) If, following the delay, the employee's performance is
determined not to be at an acceptable level of competence, the within-
grade increase shall not be granted. The provisions of Sec. 531.411
govern the determination of an employee's acceptable level of
competence following the withholding of a within-grade increase.
(d) Waiver of requirement for determination. An acceptable level of
competence determination shall be waived and a within-grade increase
granted when an employee has not served in any position for the minimum
period under an applicable agency performance appraisal program during
the final 52 calendar weeks of the waiting period for one or more of
the following reasons:
* * * * *
(4) Because of details to another agency or employer for which no
rating has been prepared; [[Page 5557]]
(5) Because the employee has had insufficient time to demonstrate
an acceptable level of competence due to authorized activities of
official interest to the agency not subject to appraisal under part 430
of this chapter (including, but not limited to, labor-management
partnership activities under section 2 of Executive Order 12871 and
serving as a representative of a labor organization); or
* * * * *
In such a situation, there shall be a presumption that the employee
would have performed at an acceptable level of competence had the
employee performed the duties of his or her position of record for the
minimum period under the applicable agency performance appraisal
program.
19. Section 531.501 is revised to read as follows:
Sec. 531.501 Applicability.
This subpart contains regulations of the Office of Personnel
Management to carry out section 5336 of title 5, United States Code,
which authorizes the head of an agency, or another official to whom
such authority is delegated, to grant quality step increases, and to
carry out section 403 of Executive Order 11721 (Providing for Federal
Pay Administration, May 23, 1973), as amended.
20. Section 531.503 is revised to read as follows:
Sec. 531.503 Purpose of quality step increases.
The purpose of quality step increases is to provide appropriate
incentives and recognition for excellence in performance by granting
faster than normal step increases.
21. Section 531.504 is revised to read as follows:
Sec. 531.504 Level of performance required for quality step increase.
A quality step increase shall not be required but may be granted
only to--
(a) An employee who receives a rating of record at Level 5
(``Outstanding'' or equivalent), as defined in part 430, subpart B, of
this chapter; or
(b) An employee who is covered by a performance appraisal program
that does not have a Level 5 rating and who demonstrates sustained
performance of high quality significantly above that expected at the
``Fully Successful'' level in the type of position concerned, as
determined under performance-related criteria established by the
agency.
22. Section 531.506 is revised to read as follows:
Sec. 531.506 Effective date of a quality step increase.
The quality step increase should be made effective as soon as
practicable after it is approved.
23. Section 531.507 is revised to read as follows:
Sec. 531.507 Agency responsibilities.
(a) Agencies shall develop and implement a plan(s) for granting
quality step increases in accordance with Executive Order 11721.
(b) Agencies shall maintain and report such records as the Office
may require.
(c) Agencies shall use OPM's Guide to Federal Workforce Reporting
Systems to report quality step increases to the CPDF.
24. Section 531.508 is revised to read as follows:
Sec. 531.508 Evaluation of quality step increase authority.
The Office of Personnel Management may evaluate an agency's use of
the authority to grant quality step increases. The agency shall take
any corrective action required by the Office.
[FR Doc. 95-2109 Filed 1-26-95; 8:45 am]
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