[Federal Register Volume 64, Number 108 (Monday, June 7, 1999)]
[Notices]
[Page 30378]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-14444]



[[Page 30377]]

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Part II





Office of Personnel Management





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Laboratory Personnel Management Demonstration Projects; Army 
Department; U.S. Army Medical Research and Materiel Command, Fort 
Detrick, Frederick, MD; Notice



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  Federal Register / Vol. 64, No. 108 / Monday, June 7, 1999 / 
Notices  

[[Page 30378]]



OFFICE OF PERSONNEL MANAGEMENT


Laboratory Personnel Management Demonstration Project; Department 
of the Army, U.S. Army Medical Research and Materiel Command (MRMC), 
Fort Detrick, Frederick, Maryland

AGENCY: Office of Personnel Management.

ACTION: Notice to make a change to the MRMC Federal Register notice, 
Part III, Vol. 63, No. 41, published on March 3, 1998, specifically 
page 10454, Section V, Conversion, paragraph e, the prorated buyout of 
the within-grade increase.

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SUMMARY: 5 U.S.C. 4703 authorizes the Office of Personnel Management 
(OPM) to conduct demonstration projects that experiment with new and 
different personnel management concepts to determine whether such 
changes in personnel policy or procedures would result in improved 
Federal personnel management.
    The National Defense Authorization Act for Fiscal Year 1995, Pub. 
L. 103-337, 108 STAT. 2663, authorizes the Department of Defense (DoD), 
with the approval of OPM, to carry out personnel demonstration projects 
at DoD Science and Technology (S&T) Reinvention Laboratories. This 
notice makes a change to the MRMC Personnel Management Demonstration 
Project pursuant to 5 C.F.R. 470.315.

DATES: This notice may be implemented beginning on the date of 
publication.

FOR FURTHER INFORMATION CONTACT: MRMC: Carol Dick, U. S. Army Medical 
Research and Materiel Command, Attn: MCHD-CP 810 Schreider Street, 
Suite 120, Fort Detrick, Maryland 21702-5000, phone 301-619-2247.
    OPM: Gail W. Redd, U. S. Office of Personnel Management, 1900 E 
Street NW, Room 7458, Washington, DC 20415, phone 202-606-1521.

SUPPLEMENTARY INFORMATION:

1. Background

    OPM approves S&T Laboratory Personnel Management Demonstration 
Projects and published the MRMC final plan in the Federal Register on 
Tuesday, March 3, 1998, Vol. 63, No. 41. The MRMC demonstration project 
involves simplified job classification, paybanding, a performance-based 
compensation system, employee development provisions, and modified 
reduction-in-force procedures.

2. Overview

    The MRMC published its final project plan on March 3, 1998. The 
final plan incorporated changes made as a result of specific comments 
received during the public comment period and hearings. Those comments 
also brought new and different perspectives to the attention of those 
responsible for implementing, overseeing, and evaluating the project.
    One comment referred to the negative impact that the receipt of a 
lump sum payment instead of an increase to basic rates of pay has on an 
employee. The lump sum payment for the prorated within-grade increase 
buyout is described in the conversion procedures in the project plan. 
Upon closer examination, it was decided that adding the buyout amounts 
to base pay instead of paying it in a lump sum is more beneficial to 
employees and will contribute to their ``high three'' years for 
retirement purposes. A change in the manner of payment from lump sum to 
base pay increase, therefore, is appropriate.

Office of Personnel Management.
Janice R. Lachance,
Director.

I. Executive Summary

    This project was designed by the Department of the Army with 
participation of and review by the Department of Defense (DoD) and the 
Office of Personnel Management (OPM). The purpose of the project is to 
achieve the best workforce for the Army MRMC mission, adjust the 
workforce for change, and improve workforce quality.
    The foundations of the project are based on the concepts of linking 
performance to pay for all covered positions; simplifying paperwork and 
the processing of classification and other personnel actions; 
emphasizing partnerships among management, employees, and unions 
representing covered employees; and delegating classification and other 
authorities to line managers.

II. Introduction

A. Purpose

    The purpose of this notice is to amend the way the within-grade 
increase buyouts will be paid to employees. Changes are hereby made to 
the Federal Register, Part III, Laboratory Personnel Management 
Demonstration Project, Department of the Army, U. S. Army Medical 
Research and Materiel Command, Fort Detrick, Frederick, Maryland; 
Notice, Vol. 63, No. 41, Tuesday, March 3, 1998; page 10454, Section V, 
Conversion, replace paragraph e in its entirety as follows:
    e. Under the current pay structure, employees progress through 
their assigned grade in step increments. Since this system is being 
replaced under the demonstration project, employees will be awarded 
that portion of the next higher step based upon the portion of the 
waiting period they have completed prior to the date of implementation. 
The prorated payment will be added to base pay and paid on the first 
day of the first pay period on or after the 1-year anniversary of the 
date of implementation of the demonstration project. The payment will 
be an increase to base pay commensurate with the number of full weeks 
accrued toward the next higher step prior to the conversion effective 
date. Employees will not be eligible for this base pay increase if 
their performance is below Fully Successful at the time of conversion. 
There will be no prorated payment for employees who were at step 10 or 
receiving a retained rate at the time of conversion into the 
demonstration project. The prorated payment may be provided only to the 
extent that it does not cause the employee's base pay to exceed the 
maximum rate of the employee's band. Rules governing within-grade 
increases under the current Army performance plan will continue in 
effect until the implementation date.
    Those employees added to MRMC by involuntary actions such as 
transfer of function, BRAC, etc., after initial implementation, will be 
awarded that portion of the next higher step based upon the portion of 
the waiting period they have completed at the time they convert into 
the demonstration project (but no earlier than one year after the 
implementation of the project.) Employees at step 10, or receiving 
retained rates, will not be eligible for an increase to base pay since 
they are already at or above the top of the step scale. Also, employees 
will not be eligible for this base pay increase if their performance is 
below Fully Successful at the time of conversion.
    All other provisions of the approved MRMC Personnel Management 
Demonstration Project will apply. Employee notification will be made by 
delivery of copies of the amendment to union officials and MRMC 
employees included in the project, and by posting on the Internet.

[FR Doc. 99-14444 Filed 6-3-99; 10:32 am]
BILLING CODE 6325-01-P