[Federal Register Volume 70, Number 96 (Thursday, May 19, 2005)]
[Rules and Regulations]
[Pages 28775-28783]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-9909]



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  Federal Register / Vol. 70, No. 96 / Thursday, May 19, 2005 / Rules 
and Regulations  

[[Page 28775]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Parts 213, 297, 315, 334, 362, 537, and 550

RIN 3206-AK27


Excepted Service, Privacy Procedures for Personnel Records, 
Career and Career-Conditional Employment, Temporary Assignment of 
Employees Between Federal Agencies and State, Local, and Indian Tribal 
Governments, Institutions of Higher Education, and Other Eligible 
Organizations, Presidential Management Fellows Program, Repayment of 
Student Loans, and Pay Administration (General)

AGENCY: Office of Personnel Management.

ACTION: Final rule.

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

SUMMARY: The Office of Personnel Management (OPM) is issuing final 
regulations modifying the Presidential Management Intern (PMI) Program. 
The regulations implement Executive Order 13318, which renames the PMI 
Program as the Presidential Management Fellows (PMF) Program, with two 
components: Presidential Management Fellows (Fellows) and Senior 
Presidential Management Fellows (Senior Fellows). The regulations 
prescribe OPM and agency responsibilities with respect to 
administration of the PMF Program and amend other regulations to 
reflect the changes established by the Executive Order. In addition, 
the regulations allow the OPM Director to provide guidance for an 
orderly transition from the PMI Program to the PMF Program.

DATES: Effective Date: This final rule is effective June 20, 2005.

FOR FURTHER INFORMATION CONTACT: Larry Lorenz by telephone on 202-606-
0960, by FAX on 202-606-2329, by TDD on 202-418-3134, or by e-mail at 
[email protected].

SUPPLEMENTARY INFORMATION: The President signed Executive Order (E.O.) 
13318 on November 21, 2003, modernizing the Presidential Management 
Intern (PMI) Program, in keeping with his emphasis on the strategic 
management of the Federal Government's human capital. The E.O. changed 
the name of the PMI Program to the Presidential Management Fellows 
(PMF) Program to better reflect its high standards, rigor, and 
prestige. The PMF Program has two components: Presidential Management 
Fellows (generally comparable to PMIs and hereafter referred to as 
Fellows); and new Senior Presidential Management Fellows (hereafter 
referred to as Senior Fellows). The E.O. charges the OPM Director with 
prescribing regulations for the PMF Program and with providing for an 
orderly transition from the PMI Program to the PMF Program.
    On January 26, 2004, OPM issued proposed regulations at 69 FR 3526 
and requested comments by March 26, 2004. OPM received written comments 
from 12 agencies, 1 public service organization, 11 current Fellows, 1 
former PMI, and 1 Federal employee.

Discussion of Comments

    Generally, the comments were very supportive of the proposed 
regulations. Below we summarize and respond to comments that suggested 
changes or requested clarification.

Definitions

    One agency commented the new Senior Fellows component will be used 
to circumvent requirements for Senior Executive Service (SES) 
placements to the detriment of civil servants. OPM disagrees. We 
believe the Senior Fellows program will be attractive to highly 
qualified mid-career applicants from inside and outside the Federal 
Government and selection will be merit-based.
    One agency noted excepted service agencies are not required to have 
Executive Resources Boards (ERBs). Our research confirmed this. We 
learned some small agencies and some very large agencies have assigned 
agency-wide executive development responsibilities to other senior 
agency positions, boards, committees, or groups. We agree the PMF 
regulations need to accommodate all Executive agencies.
    Accordingly, we expanded the ERB definition at 5 CFR 362.101(b) to 
also mean the agency head or senior agency official or officials who 
have been given executive resource management and oversight 
responsibility by the agency head. We did this to accommodate 
differences among Executive agencies, while maintaining the Program's 
requirement for ERB-level participation and certification for both 
Fellows and Senior Fellows.
    In addition, we are also clarifying the definition of a qualifying 
college or university for consistency with OPM's longstanding policy on 
the acceptability of higher education.

Agency Programs--Number of Fellows and Senior Fellows

    One agency suggested we clarify whether the OPM Director will 
determine separately the total number of Fellow appointments and the 
total number of Senior Fellow appointments. We agree and have changed 5 
CFR 362.201(a) to specify that the OPM Director will determine annually 
the number of Fellows and the number of Senior Fellows appointments.
    One former PMI and a current Fellow asserted that removing the cap 
(the maximum number of PMI appointments allowed under the now-
superceded E.O.) will hurt the image of the program by lowering 
standards and expectations. Another Fellow suggested raising the cap. 
OPM does not believe removal of a fixed limit or cap will impugn the 
image of the program. We note the regulations require the OPM Director 
to determine the number of Fellows and Senior Fellows, annually, based 
on input from the Chief Human Capital Officers Council and agency 
needs, especially with regard to managerial and leadership succession.

Selection

    One agency suggested we define ``exceptional record'' and the 
criteria used to identify an exceptional record in 5 CFR 362.202(c)(1). 
We are not adopting this suggestion. OPM believes the experiences and 
accomplishments of Senior Fellow candidates may vary to such an extent 
that a ``one size fits all'' definition or set of criteria may dissuade 
interested candidates from applying to the program. In addition, we 
prefer to give the Senior Presidential Management Fellows Selection 
Committee (SPMFSC) the flexibility to

[[Page 28776]]

evaluate each candidate's records without constraints in regulation. 
The Committee and OPM may develop criteria to evaluate applications.
    Three agencies expressed concerns with the ability and performance 
of nominating schools to determine preliminary eligibility for 
veterans' preference and suggested OPM provide training or additional 
guidance. We agree and plan to review and revise the current guidance 
or provide training as needed.
    One agency requested clarification regarding how veterans' 
preference procedures apply when selecting Program finalists for 
positions in the agency. We added references to 5 CFR 302 in part 362. 
Part 302 describes the application of veterans' preference in the 
excepted service. In addition, we will review current guidance and 
provide additional guidance if needed.
    An agency suggested OPM expand the evaluation and selection process 
for Fellows to include a PMF Selection Committee with interagency 
representation, similar to what is proposed for Senior Fellows. We do 
not agree a PMF selection committee is necessary; the current process 
works well.

Appointment and Extensions

    One agency suggested it is inappropriate for the OPM Director, a 
political appointee, to appoint members to the SPMFSC, which determines 
and recommends finalists. The agency recommends OPM ask agencies to 
nominate eligible members to serve on the committee, e.g., Chief Human 
Capital Officers or other high-level career managers, because agencies 
have a significant interest. OPM sees no conflict of interest in having 
the OPM Director appoint members to the SPMFSC. We point out the SPMFSC 
will be chaired by a career member of the SES and will include other 
senior agency career executives as members.
    One agency suggested OPM specifically reference 5 CFR 317.502 in 5 
CFR 213.3102(jj) and 5 CFR 362.209(c). Section 317.502 pertains to the 
Qualifications Review Board certification. We have modified 5 CFR 
362.209(c) to include the reference, where we think it is appropriate.
    The same agency suggested changing 5 CFR 317.502 to add a Senior 
Fellows category. We find no reason to change 5 CFR 317.502 because 5 
CFR 362.204(e)(1) provides that ERB-certified Senior Fellows are 
considered in the same manner as a graduate of an OPM-approved SES 
Candidate Development Program (CDP).
    An agency asked us to clarify whether Fellows who have served the 
initial 2-year period, and then are appointed as Senior Fellows, are 
subject to a new 2-year period. Although the answer is yes, the Senior 
Fellows component is not designed for those graduating Fellows who may 
lack the significant work and supervisory experience needed to 
demonstrate their readiness for senior management. We agree some 
clarification is needed and will provide this in guidance rather than 
in the regulation.
    One agency suggested OPM not allow non-citizens to be appointed as 
Fellows. The agency noted in today's climate of security issues and 
terrorism, appointing non-citizens is not practical and may present 
problems. OPM is not adopting this suggestion because it would limit 
agency flexibility. Current rules allow certain non-citizens to be 
appointed in the excepted service, and we see no reason to treat the 
PMFs differently. Agencies may establish more restrictive citizenship 
requirements for appointments into their PMF positions. Fellows and 
Senior Fellows must be U.S. citizens at the time of conversion into the 
competitive service.
    One agency suggested we clarify who may extend the appointment of 
Fellows and Senior Fellows for up to 1 additional year. Section 
362.203(a)(3)(iii) now reads, ``The OPM Director, or the Director's 
designee, may approve an extension.''
    One agency suggested agency requests for extension of Fellowships 
come from an appropriate agency representative (supervisor or PMF 
Coordinator), rather than requiring it from the agency head. OPM agrees 
extension requests may come from someone other than the agency head and 
have changed the regulations in Sec.  362.203(a)(3)(iii) to allow the 
chair of the agency's ERB, or equivalent, to make such requests.

Development, Evaluation, Promotion, and Certification

    One agency suggested we either combine the Senior Fellow and SES 
CDP or afford Senior Fellows noncompetitive promotion and conversion 
eligibility only to the GS-15 (or equivalent) level. If we accepted the 
latter recommendation, the agency recommended Senior Fellows interested 
in SES positions would have to compete for SES and CDP vacancies in 
accordance with the same procedures and under the same conditions as 
other employees. We are not adopting this suggestion for several 
reasons. The Senior Fellows program is intended to produce candidates 
as part of a progression towards placement in the SES. However, Senior 
Fellows are not entitled to placement in the SES. Placement depends 
upon the individual's level of readiness for SES placement as well as 
upon agency needs. Limiting the conversion of Senior Fellows to the GS-
15 level would eliminate a key flexibility of this program; i.e., 
agencies' ability to select truly exceptional individuals for placement 
in the SES. The SES CDP provides a separate pool of candidates, who 
most likely will come from different recruitment sources, for SES 
placement. They are complementary programs for SES succession planning.
    One individual questioned the legal basis for excepting Senior 
Fellows from the requirement to compete under SES merit staffing 
requirements as a prerequisite to appointment in the SES. Subchapter 
VIII of chapter 33, title 5, United States Code, gives OPM authority to 
prescribe SES appointment criteria and also to establish programs for 
the systematic development of candidates for the SES. Executive Order 
13318 authorizes the establishment of the PMF Program and OPM has 
chosen to make this Program a part of its SES development effort. 
Section 6 of E.O. 13318 gives OPM the authority to prescribe 
regulations for the Senior Fellow program. In addition, we note the 
structure of the Senior Fellows program requires competitive entry and 
developmental rigor comparable to SES CDPs as required by 5 CFR part 
412.
    One agency suggested OPM determine the grade level for which each 
finalist is qualified. The agency noted that a decentralized process 
for determining whether Fellows qualify for grades above the GS-9 level 
would result in significant hiring delays and hinder the ability of 
Fellows to enter on duty in a timely fashion. We are not adopting this 
suggestion because agencies may develop their own qualification 
requirements for Schedule A positions and are in the best position to 
evaluate the relevance of the individual's specialized education or 
experience to the position. OPM will determine whether applicants are 
minimally qualified, and agencies can apply the qualification standards 
and make appropriate decisions for hiring Fellows and Senior Fellows 
above the minimum level as they routinely do for any excepted service 
hire.
    Another agency suggested an alternative to the proposed rules for 
hiring Fellows above the GS-9 level. This alternative is based on a 
model the agency currently uses when making certain excepted service 
appointments at various grade levels. OPM is not

[[Page 28777]]

adopting this suggestion because we believe each agency should have the 
flexibility to develop policies and criteria for promotion, which best 
meet its needs as required by 5 CFR 362.204(d)(1). Further, all that is 
required to hire a Fellow above the GS-9 level is for the agency to 
determine whether the Fellow meets the qualifications for the grade 
level.
    One Fellow assumed incorrectly that those entering at the GS-12 
level could not be promoted for 2 years. The PMF regulations allow 
agencies to promote Fellows to GS-13 at any time during the 2-year 
period.
    Two agencies and one Fellow doubted that their agency will hire 
above the GS-9 level; one agency believed they will instead continue to 
use available recruitment options such as student loan repayment, 
superior qualifications appointment, and accelerated promotion, while 
another agency pointed to tight budgets as a deterrent to use of this 
flexibility. We understand some agencies will not need or want to hire 
above the GS-9 level. However, we believe this flexibility is extremely 
useful in accommodating agency and candidate-specific circumstances. 
Accordingly, we are adopting the regulations in this area without 
substantive change.
    One agency suggested the requirement to assign a mentor to a Senior 
Fellow be made optional. OPM is not adopting this suggestion because we 
believe assigning senior level mentors to Senior Fellows is critical to 
the training and development of individuals who are being groomed for 
possible future placement in the SES. For the same reason, we 
established a comparable requirement for SES CDPs, see 5 CFR 
412.104(e)(3).
    One agency suggested changing the requirement that Senior Fellows 
complete formal training through, ``the OPM-approved SES candidate 
development program,'' to ``an OPM-approved SES candidate development 
program.'' Another agency commented that agencies must have the 
latitude to determine whether they will use an existing SES CDP of 
their choice, and to determine if an SES CDP is appropriate based on 
succession planning requirements. Agencies may use any OPM-approved SES 
CDP, and we have revised the proposed 5 CFR 362.204(b)(2)(ii) to state 
this.
    One agency suggested the long-term developmental assignment 
requirement for Senior Fellows will deter agencies with limited travel 
and training budgets from using this program. The agency recommended 
OPM give agencies the option of placing Senior Fellows on long-term 
developmental assignments or providing a plan of acceptable short-term 
developmental assignments. We agree that 12-month developmental 
assignments may be burdensome, so we changed their duration to a 
minimum of 9 months (in addition to classroom training). We have 
revised the proposed 5 CFR 362.204(b)(4)(ii) accordingly.
    One agency wanted OPM to define ``developmental assignment'' and 
the optional ``rotational assignment.'' The agency sought clarification 
as to what constitutes acceptable developmental and rotational 
assignments and whether both agency external and internal assignments 
would be acceptable. OPM is not adopting this suggestion because we 
believe defining these terms may limit agencies' creativity in terms of 
designing these assignments. We prefer to give agencies discretion to 
define the nature or content of their assignments and to tailor them to 
meet agency-specific needs.
    One agency suggested holding Senior Fellows to the same 
requirements as participants in a formal SES Candidate Development 
Program. We disagree and note that Senior Fellows are appointed in the 
excepted service, and they are not subject to time-in-grade (TIG) 
requirements. This condition provides agencies with added flexibility 
to promote these individuals when they qualify.
    One agency noted that eliminating TIG requirements for promoting 
Fellows could result in perceptions of inequities among non-Fellow 
employees and lead to morale problems for agencies not authorized to 
use pay banding. Another agency commented that the more rapid promotion 
of Fellows will negatively impact coworkers. OPM considered these 
comments and decided to give agencies the same ability to accelerate 
promotions as exists for other excepted service positions and require 
agencies to establish criteria and procedures for accelerated 
promotions.
    Another agency recommended retaining the TIG limitation for Fellows 
until TIG is eliminated for the competitive service. For the reasons 
stated in the paragraph above we see no reason to require TIG for 
Fellows and Senior Fellows when it does not apply to other excepted 
service employees.
    One Fellow asked OPM to clarify how promotions without TIG will 
work, and one agency asked OPM to define the criteria and 
qualifications for accelerated promotion. Promotions without TIG work 
in the same fashion as career ladder promotions, but without regard to 
the 12-month rule; i.e., when an individual meets the qualification 
requirements for the next highest grade, the agency may promote the 
individual. The regulations require agencies to establish policies and 
criteria for promotion. We will provide guidance identifying relevant 
issues and provide access to any relevant samples or models agencies 
may give us.
    One agency anticipated the elimination of TIG may result in a 
``hodge-podge of implementation schemes'' that ``will be used to 
circumvent civil service regulations.'' We disagree because agencies 
currently have the same discretion for any excepted service employees. 
Therefore, removing the TIG restriction for Fellows does not circumvent 
civil service regulations. We will provide agencies with supplementary 
guidance for developing criteria and procedures for accelerated 
promotion.
    Accordingly, we are adopting regulations regarding TIG without 
substantive change.
    For the sake of clarity and to avoid redundancy OPM has removed the 
references to coverage under parts 432 and 752 in section 362.204, 
paragraph (c)(3). The appeal rights for Fellows and Senior Fellows are 
found in section 362.208, paragraph (d), which for purposes of 
determining whether Fellows and Senior Fellows have appeal rights, says 
they are treated as excepted service employees. Fellows and Senior 
Fellows in systems not subject to appeal rights under 5 U.S.C. chapters 
43 or 75, such as the Department of Homeland Security, Central 
Intelligence Agency and National Security Personnel System, have the 
appeal rights as provided by the equivalent authorities under their 
systems, if any.

Graduate Degree Waiver

    One agency suggested OPM develop criteria for waiving the graduate 
study requirement for Senior Fellow candidates to assist agencies in 
attracting quality leaders, while ensuring high-level program 
standards. OPM does not believe adding criteria to the regulations is 
necessary. We revised the regulations in section 362.205 to provide the 
OPM Director, or the Director's designee, one general waiver authority.
    Two agencies and one Fellow recommended we require a graduate 
degree for Senior Fellows. We are retaining the flexibility for the OPM 
Director, or the Director's designee, to waive the graduate degree 
requirement per section 362.205 because Senior Fellow candidates may 
have substantially high-level work experience or accomplishments, which 
may be substituted for a graduate degree in certain situations.

[[Page 28778]]

    One agency suggested OPM define what an ``exceptional candidate'' 
is for the purpose of waiving the graduate degree requirement. We 
choose not to define ``exceptional candidate'' in regulations because 
doing so could limit the Senior Fellow Selection Committee's ability to 
evaluate exceptional candidates on a case-by-case basis.
    One agency suggested the regulations include information on how to 
request graduate degree waivers. We agree ``how to'' information should 
be readily available. However, we plan to provide this as guidance 
rather than placing it in regulation.
    Another agency suggested agencies should be able to require Senior 
Fellows, who received a waiver of the graduate degree requirement, to 
get a graduate degree. We disagree and are not adopting this 
suggestion. A waiver signifies an individual's exceptional record of 
accomplishment is a sufficient substitute for a graduate degree.

Program Completion and Placement

    Seven agencies and one Fellow recommended we drop the requirement 
for an agency ERB to certify each Fellow's and Senior Fellow's 
successful completion of all Program requirements. We disagree. 
Generally ERBs (or equivalents) have relevant competent evaluation 
experience, and we believe they should have oversight of their agency's 
PMF Program. Fellows may one day be selected for senior executive level 
positions; therefore, ERB certification should be required for these 
individuals. Further, we believe ERB certification reinforces the 
agency's commitment to this Program while protecting the prestige and 
competitive nature of this Presidential Program. As discussed above, we 
have expanded the definition of ERB for the purposes of this regulation 
to include agency officials or bodies who have equivalent 
responsibility. See 5 CFR 362.101(b) below.
    Two agencies suggested conversion to the competitive service 
following successful completion of the Senior Fellows program be 
discretionary rather than mandatory. We disagree and believe the lack 
of mandatory conversion, following successful completion of the program 
and 2 years of rigorous training, will dissuade talented individuals 
from participating in the program and adversely affect the significant 
investment in the selection and development of high potential 
individuals. We also received a similar comment concerning Fellows and 
disagree for the same reasons.
    One agency recommended more flexibility with regard to the timing 
of placements. We note 5 CFR 362.209(b)(1) requires agencies to appoint 
a Fellow or Senior Fellow who has been certified as having successfully 
completed the Program, ``effective on, or before the expiration of the 
individual's excepted appointment, including extensions.'' We agree the 
immediate placement requirement has the potential to create an 
unnecessary administrative burden on agencies. To alleviate any 
processing difficulties which may arise from this requirement, we are 
delegating to agencies the authority to extend an appointment up to 120 
days. Agencies may appoint a Fellow or Senior Fellow who has been 
certified as having successfully completed the Program at any time 
during this 120-day period. This new provision is consistent with 
flexibilities contained in other programs, such as the Federal Career 
Intern Program, which allows for conversion to the competitive service 
upon successful completion of the program. OPM retains the authority 
for extensions beyond 120 days up to 1 year. Accordingly, we have added 
language at 5 CFR 362.203(a)(3)(iv) and revised 5 CFR 362.209(b)(1) to 
reflect this.

Transition From the Presidential Management Intern (PMI) Program

    Comments from three agencies and 10 Fellows noted the proposed 
regulations did not address how individuals appointed as PMIs under the 
previous Executive order and implementing regulations will transition 
to the new PMF regulations. Most agencies and Fellows suggested such 
individuals be covered by these new regulations. Several agencies and 
Fellows suggested current Fellows be transitioned into the PMF Program 
and be subject to its provisions. We agree that agencies be permitted 
to avail themselves of the new flexibilities contained in this 
regulation with respect to existing fellows.
    In addition, two agencies and four Fellows suggested OPM issue 
guidance addressing various transition issues, including ``how and when 
to implement each * * * ``program change.'' OPM agrees agencies need 
transition guidance on this subject as well. We have revised these 
regulations to provide that OPM will issue such guidance to agencies.
    One Fellow and one former PMI suggested highly qualified Fellows 
and PMIs with substantial high-level work experience should have an 
opportunity to be evaluated in advance and appointed to Senior Fellow 
positions. We disagree. The Senior Fellows program is for truly 
exceptional individuals who already possess exemplary leadership, 
managerial, or professional experience. Qualified Fellows and former 
PMIs may apply for the Senior Fellows program the same as any 
individual.

Miscellaneous Comments

    One organization recommended requiring the Chief Human Capital 
Officers Council to include an evaluation of the PMF Program in its 
annual report to Congress. We decided not to include such a requirement 
at this time. However, we will add specific authority codes in the 
Guide to Processing Personnel Actions to facilitate future Program 
evaluation using data submitted by agencies for the Central Personnel 
Data File.
    One agency asked if there was a ``fallback eligibility'' for 
Federal employees who become Senior Fellows and do not successfully 
complete the Senior Fellow program. Agencies will not be required to 
place Senior Fellows who fail to successfully complete the Senior 
Fellow program. When selecting a Senior Fellow who is a Federal 
employee in a competitive service position, agencies must follow 
notification and documentation procedures in 5 CFR 302.102(b). Further, 
agencies may use existing appointing authorities when appropriate and 
desirable to reinstate former competitive service employees.

Regulatory Flexibility Act

    I certify that this regulation will not have a significant economic 
impact on a substantial number of small entities because it affects 
only certain potential applicants and Federal employees.

Executive Order 12866, Regulatory Review

    This rule has been reviewed by the Office of Management and Budget 
in accordance with Executive Order 12866.

List of Subjects in 5 CFR Parts 213, 297, 315, 334, 362, 537, and 
550

    Administrative practice and procedure, Claims, Colleges and 
universities, Government employees, Indians, Intergovernmental 
relations, Privacy, Reporting and recordkeeping requirements, Wages.

Office of Personnel Management.
Dan G. Blair,
Acting Director.

0
Accordingly, OPM is amending 5 CFR parts 213, 297, 315, 334, 362, 537, 
and 550 as follows:

[[Page 28779]]

PART 213--EXCEPTED SERVICE

0
1. Revise the authority citation for part 213 to read as follows:

    Authority: 5 U.S.C. 3161; 5 U.S.C. 3301 and 3302; E.O. 10577, 3 
CFR, 1954-1958 Comp., p. 218; Sec. 213.101 also issued under 5 
U.S.C. 2103; Sec. 213.3102 also issued under 5 U.S.C. 3301, 3302, 
3307, 3391-3396, 8337(h), and 8456; E.O. 13318; 38 U.S.C. 4301 et 
seq.; Pub. L. 105-339, 112 Stat 3182-83; and E.O. 13162.

0
2. Revise paragraph (ii) of Sec.  213.3102 and add paragraph (jj) to 
read as follows:


Sec.  213.3102  Entire executive civil service.

* * * * *
    (ii) Positions of Fellows in the Presidential Management Fellows 
Program. Initial appointments of Fellows are made at either the GS-9, 
GS-11, or GS-12 level (or their equivalents), depending on the 
candidate's qualifications. Appointments are made under this authority 
for 2 years; however, upon approval of OPM, the head of the department, 
agency, or component within the Executive Office of the President may 
extend the appointment for up to 1 additional year. Upon the Fellow's 
satisfactory completion of the Program, as certified by the employing 
agency's Executive Resources Board (ERB) or equivalent, the employing 
agency must noncompetitively appoint the Fellow to a full-time, 
permanent position in the competitive service as prescribed in Sec.  
315.708 and part 362 of this chapter.
    (jj) Positions of Senior Fellows in the Presidential Management 
Fellows Program. Initial appointments are made at the GS-13, GS-14, or 
GS-15 level (or their equivalents), depending on the candidate's 
qualifications. Appointments may be made under this authority for up to 
2 years; however, upon approval of OPM, the head of the department, 
agency, or component within the Executive Office of the President may 
extend the Senior Fellow's appointment for up to 1 additional year. 
Upon the Senior Fellow's satisfactory completion of the Program, as 
certified by the employing agency's Executive Resources Board (ERB) or 
equivalent, the employing agency must noncompetitively appoint the 
Fellow to a full-time, permanent position in the competitive service as 
prescribed in Sec.  315.708 and part 362 of this chapter. If a Senior 
Fellow successfully completes the Program, as certified by the 
appointing agency's ERB or equivalent, he/she may, at the agency's 
discretion, be appointed to a position in the Senior Executive Service 
(SES) (or the equivalent) without further competition and only one 
time, in the same manner, and subject to the same Qualifications Review 
Board review, as an individual who has successfully completed an OPM-
approved SES candidate development program under parts 317 and 412 of 
this chapter.
* * * * *

PART 297--PRIVACY PROCEDURES FOR PERSONNEL RECORDS

0
3. The authority citation for part 297 continues to read as follows:

    Authority: Sec. 3, Pub. L. 93-579, 88 Stat. 1896 (5 U.S.C. 
552a).

Subpart E--Exempt Records

0
4. Revise paragraph (b)(6) of Sec.  297.501 to read as follows:


Sec.  297.501  Exemptions.

* * * * *
    (b) * * *
    (6) Presidential Management Fellows Program Records (OPM/CENTRAL-
11). All information in these records that meets the criteria stated in 
5 U.S.C. 552a(k)(6) is exempt from the requirements of 5 U.S.C. 
552a(d), relating to access to and amendment of records by the data 
subject. This exemption is claimed because portions of this system 
relate to testing or examining materials used solely to determine 
individual qualifications for appointment or promotion in the Federal 
service and access to or amendment of this information by the data 
subject would compromise the objectivity and fairness of the testing or 
examining process.
* * * * *

PART 315--CAREER OR CAREER-CONDITIONAL EMPLOYMENT

0
5. Revise the authority citation for part 315 to read as follows:

    Authority: 5 U.S.C. 1302, 3301, and 3302; E.O. 10577, 3 CFR, 
1954-1958 Comp., p. 218, unless otherwise noted; and E.O. 13162. 
Secs. 315.601 and 315.609 also issued under 22 U.S.C. 3651 and 3652. 
Secs. 315.602 and 315.604 also issued under 5 U.S.C. 1104. Sec. 
315.603 also issued under 5 U.S.C. 8151. Sec. 315.605 also issued 
under E.O. 12034, 3 CFR, 1978 Comp., p. 111. Sec. 315.606 also 
issued under E.O. 11219, 3 CFR, 1964-1965 Comp., p. 303. Sec. 
315.607 also issued under 22 U.S.C. 2506. Sec. 315.608 also issued 
under E.O. 12721, 3 CFR, 1990 Comp., p. 293. Sec. 315.610 also 
issued under 5 U.S.C. 3304(d). Sec. 315.611 also issued under 
Section 511, Pub. L. 106-117, 113 Stat. 1575-76. Sec. 315.708 also 
issued under E.O. 13318. Sec. 315.710 also issued under E.O. 12596, 
3 CFR, 1987 Comp., p. 229. Subpart I also issued under 5 U.S.C. 
3321, E.O. 12107, 3 CFR, 1978 Comp., p. 264.

Subpart B--The Career-Conditional Employment System

0
6. Revise paragraph (b)(1)(xiii) of Sec.  315.201 to read as follows:


Sec.  315.201  Service requirement for career tenure.

* * * * *
    (b) * * *
    (1) * * *
    (xiii) The date of appointment as a participant in the Presidential 
Management Fellows Program under the provisions of Executive Order 
13318, provided the employee's appointment is converted without a break 
in service to career or career-conditional appointment under Sec.  
315.708;
* * * * *

Subpart G--Conversion to Career or Career-Conditional Employment 
From Other Types of Employment

0
7. Revise Sec.  315.708 to read as follows:


Sec.  315.708  Conversion based on service as a Fellow or Senior Fellow 
in the Presidential Management Fellows Program.

    (a) Agency authority. (1) An agency, not excepted from the 
competitive service, must appoint a Fellow or Senior Fellow to a full-
time, permanent position in the competitive service without further 
competition when the Fellow or Senior Fellow:
    (i) Has satisfactorily completed the Program as outlined in part 
362 of this chapter; and
    (ii) Meets the citizenship requirement set forth in part 338 of 
this chapter.
    (2) A Fellow or Senior Fellow who was initially appointed to a 
permanent position in an agency excepted from the competitive service 
upon completion of the Program may be appointed subsequently to a full-
time permanent position in the competitive service without further 
competition subject to paragraph (a)(1)(ii) of this section.
    (b) Tenure upon conversion. (1) Except as provided in paragraph 
(b)(2) of this section, a Fellow or Senior Fellow appointed under 
paragraph (a) of this section becomes a career-conditional employee.
    (2) A Fellow or Senior Fellow appointed under paragraph (a) of this 
section becomes a career employee when he/she has completed the service 
requirement for career tenure or is excepted from it under Sec.  
315.201(c).
    (c) Acquisition of Competitive Status. A Fellow or Senior Fellow 
appointed to a full-time, permanent position in the competitive service 
under this section does not serve a probationary period and acquires 
competitive status immediately upon appointment.

[[Page 28780]]

PART 334--TEMPORARY ASSIGNMENT OF EMPLOYEES BETWEEN FEDERAL 
AGENCIES AND STATE, LOCAL, AND INDIAN TRIBAL GOVERNMENTS, 
INSTITUTIONS OF HIGHER EDUCATION, AND OTHER ELIGIBLE ORGANIZATIONS

0
8. The authority citation for part 334 continues to read as follows:

    Authority: 5 U.S.C. 3376; E.O. 11589, 3 CFR 557 (1971-1975).

0
9. Revise the definition of Employee in Sec.  334.102 to read as 
follows:
* * * * *
    Employee means an individual serving in a Federal agency under a 
career or career-conditional appointment including career appointees in 
the Senior Executive Service, individuals under appointments of 
equivalent tenure in excepted service positions, and Fellows and Senior 
Fellows in the Presidential Management Fellows Program; or an 
individual employed for at least 90 days in a career position with a 
State, local, or Indian tribal government, institution of higher 
education, or other eligible organization;
* * * * *

0
10. Revise part 362 to read as follows:

PART 362--PRESIDENTIAL MANAGEMENT FELLOWS PROGRAM

Subpart A--Definitions
Sec.
362.101 Definitions.
Subpart B--Program Administration
362.201 Agency programs.
362.202 Announcement, nomination, and selection.
362.203 Appointment and extensions.
362.204 Development, evaluation, promotion, and certification.
362.205 Waiver.
362.206 Movement between departments or agencies.
362.207 Withdrawal and readmission.
362.208 Resignation, termination, reduction in force, and appeal 
rights.
362.209 Placement upon completion.
362.210 Transition.

    Authority: E.O. 13318 of Nov. 21, 2003, 3 CFR, 2003 Comp., p. 
265.

Subpart A--Definitions


Sec.  362.101  Definitions.

    For purposes of this part,
    An agency means a component within the Executive Office of the 
President, or an Executive department, Government corporation, or 
independent establishment as defined in 5 U.S.C. 101, 103, and 104, 
respectively.
    An Executive Resources Board (ERB) has the same meaning as 
specified in Sec.  317.501(a) of this chapter; in those agencies that 
are not required to have an ERB pursuant to that section, it means the 
senior agency official or officials who have been given executive 
resource management and oversight responsibility by the agency head.
    A Presidential Management Fellow or Fellow is an individual 
appointed, at the GS-9, GS-11, or GS-12 level (or equivalent), in the 
excepted service under Sec.  213.3102(ii) of this chapter, or under an 
agency-specific authority if the agency is excepted from the 
competitive service. The individual must have completed a graduate 
course of study at a qualifying college or university, received the 
nomination of the dean or academic director, successfully completed an 
Office of Personnel Management (OPM) administered assessment process, 
been selected as a finalist, and been appointed by an agency as a 
Presidential Management Fellow.
    A Qualifications Review Board (QRB) has the same meaning as 
specified in Sec.  317.502(a) of this chapter.
    A qualifying college or university is an academic institution that 
meets the requirements as stated in the ``General Policies and 
Instructions'' section of the Office of Personnel Management's 
``Operating Manual: Qualification Standards for General Schedule 
Positions,'' under ``Educational and Training Provisions or 
Requirements.'' The Operating Manual is available on OPM's Web site at 
http://www.opm.gov.
    A Senior Presidential Management Fellow or Senior Fellow is an 
individual appointed, at the GS-13, GS-14, or GS-15 level (or 
equivalent), in the excepted service under Sec.  213.3102(jj) of this 
chapter, or under an agency-specific authority if the agency is 
excepted from the competitive service. The individual must have 
completed a graduate course of study at a qualifying college or 
university; have an outstanding record of achievement in an applicable 
leadership, policy, managerial, professional, or technical position or 
area; have successfully completed an OPM-administered assessment 
process; been selected as a finalist by the OPM Director, or the 
Director's designee; and been appointed by an agency as a Senior 
Fellow.

Subpart B--Program Administration


Sec.  362.201  Agency programs.

    (a) On or about October 1 of each year, the OPM Director will 
determine the number of Fellows and the number of Senior Fellows that 
may be appointed during that fiscal year. Those determinations will be 
based on input from the Chief Human Capital Officers Council, as well 
as input from agencies not represented on the Council.
    (b) Thereafter, subject to the provisions and requirements of this 
chapter, an agency may appoint individuals selected by the OPM 
Director, or the Director's designee, as Fellows finalists and/or 
Senior Fellows finalists according to its short-, medium-, and long-
term senior leadership and related (senior policy, professional, 
technical, and equivalent) recruitment, development, and succession 
requirements, as set forth in 5 U.S.C. 1103(c)(2)(C).


Sec.  362.202  Announcement, nomination, and selection.

    (a) At least once each year, OPM will announce the availability of 
Fellow and Senior Fellow appointments and conduct a competition for the 
selection of finalists as set forth below.
    (b) Fellows. (1) Graduate students from all academic disciplines 
who complete or expect to complete an advanced degree from a qualifying 
college or university by August 31 of the academic year in which the 
competition is held, are eligible to become Fellows. These individuals 
must demonstrate an exceptional ability for, as well as a clear 
interest in and commitment to, leadership in the analysis and 
management of public policies and programs.
    (2) For an individual to apply to become a Fellow:
    (i) His/her school must first establish a competitive nomination 
process to ensure that all eligible graduate students are aware of the 
Presidential Management Fellows Program and know how to apply for 
nomination. The school must establish procedures to ensure that each 
candidate receives careful and thorough review and receives equal 
opportunity for nomination.
    (ii) He/she must compete in the school's nomination process.
    (iii) His/her school must rate those who want to be considered for 
nomination either qualified or not qualified. The school will determine 
preliminary eligibility for veterans' preference, and must nominate any 
student who is eligible for veterans' preference and is found qualified 
for nomination. Students eligible for veterans' preference who believe 
they met the school's nomination qualification requirements, but were 
not nominated, may obtain a review by OPM by requesting it in writing.
    (iv) He/she must be officially nominated by the dean, chairperson, 
or

[[Page 28781]]

academic program director using an OPM-provided application form.
    (3) OPM will select Fellow finalists based on an OPM evaluation of 
each candidate's experience and accomplishments based on his/her 
application and the results of a rigorous structured assessment 
process.
    (4) OPM will notify individual candidates of their selection as a 
Fellow finalist. OPM will send all participating agencies the list of 
Fellows finalists for consideration. Agencies may select and appoint a 
finalist as a Fellow.
    (5) Veterans' preference will be applied pursuant to part 302 of 
this chapter.
    (c) Senior Fellows. (1) Any individual with an exceptional record 
of experience and achievement in a leadership (supervisory or 
managerial), policy, professional, or technical position, in an area 
relevant to the appointing agency's mission or succession requirements, 
and who has completed a graduate course of study from a qualifying 
college or university, may apply for appointment as a Senior Fellow. 
Candidates should evidence a strong commitment to public service and be 
able to clearly demonstrate that, by virtue of their competencies and 
accomplishments to date, they have the potential to assume a senior 
executive or senior level policy, professional, or technical position 
in the Federal Government after a relatively brief but intensive period 
of training and development.
    (2) The OPM Director, or the Director's designee, will select 
Senior Fellow finalists based on an evaluation of each candidate's 
experience and accomplishments based on his/her application, the 
results of a structured assessment process, and applying veterans' 
preference in accordance with part 302 of this chapter.
    (i) The OPM Director will appoint a Senior Presidential Management 
Fellows Selection Committee to oversee the evaluation of Senior Fellow 
candidates and recommend finalists.
    (ii) The Selection Committee will be chaired by a career member of 
the Senior Executive Service (SES) and may comprise other individuals 
from within the Federal Government, such as members of the Chief Human 
Capital Officers Council, as appropriate, and/or others, such as non-
Federal employees, when deemed appropriate by the OPM Director.
    (3) OPM will notify each individual candidate of his/her selection 
as a Senior Fellow finalist. OPM will send all participating agencies 
the list of Senior Fellow finalists for consideration. Agencies may 
select and appoint a finalist as a Senior Fellow, subject to the 
application of veterans' preference requirements in part 302 of this 
chapter.


Sec.  362.203  Appointment and extensions.

    (a) Appointment. (1) Except as provided in paragraph (a)(2) of this 
section, an agency must appoint a Fellow or Senior Fellow using the 
excepted service appointing authority provided by 5 CFR 213.3102(ii) or 
(jj), as applicable, of this chapter.
    (2) An agency excepted from the competitive service must appoint a 
Fellow or Senior Fellow under an agency-specific appointing authority. 
(3)(i) Fellows are appointed for an initial period of 2 years.
    (ii) Upon approval of the agency's ERB, Senior Fellows are 
appointed for an initial period of up to 2 years, depending on 
individual qualifications and competencies.
    (iii) The OPM Director, or the Director's designee, may approve an 
extension of a Fellow's or Senior Fellow's appointment for up to 1 
additional year upon written request by the chair of the agency's ERB 
or equivalent; such requests must be received at least 90 days before 
the end of the initial appointment.
    (iv) Agencies may extend, without prior OPM approval, a Fellow's or 
Senior Fellow's appointment for up to an initial 120 days.
    (4) An agency may appoint a Fellow or Senior Fellow any time after 
the individual has been notified that he/she has been selected as a 
finalist, but not more than 12 months after the Fellow or Senior Fellow 
was so selected. However, the OPM Director, or the Director's designee, 
may approve a written agency request to appoint a Fellow or Senior 
Fellow after that deadline, so long as the agency request is submitted 
no later than 30 days prior to the end of the 12-month period.
    (5)(i) An agency may not appoint a Fellow or Senior Fellow unless 
and until he/she has met all graduate degree requirements.
    (ii) If a Fellow or Senior Fellow does not complete all degree 
requirements by August 31 of the year in which the Fellow or Senior 
Fellow was selected as a finalist, the Fellow's or Senior Fellow's 
finalist status is terminated.
    (b) Citizenship. (1) An agency is authorized to appoint a Fellow or 
Senior Fellow who is not a U.S. citizen only under the following 
conditions:
    (i) The individual is lawfully admitted to the United States as a 
permanent resident or is otherwise authorized by the Department of 
Homeland Security's Bureau of Citizenship and Immigration Services to 
be employed in the U.S.; and
    (ii) The agency is authorized to pay the noncitizen under the 
annual appropriations Act ban or any agency-specific enabling 
appropriations statute.
    (c) Grade. (1) An agency must appoint a Fellow at the grade GS-9 
level, or its equivalent, at a minimum. However, if the agency 
determines that a Fellow meets the requisite qualification 
requirements, the agency may appoint the Fellow at the grade GS-11 or 
GS-12 level, or their equivalents.
    (2) An agency must appoint a Senior Fellow at the grade GS-13 
level, or its equivalent, at a minimum. However, if the agency 
determines that a Senior Fellow meets the requisite qualification 
requirements (general leadership, managerial, or specialized 
experience, academic credentials, professional certifications, etc.), 
the agency may appoint the Senior Fellow at the grade GS-14 or GS-15 
level, or their equivalents.


Sec.  362.204  Development, evaluation, promotion, and certification.

    (a) Individual development plans. The appointing agency will 
approve an Individual Development Plan (IDP) for each of its Fellows 
and Senior Fellows that sets forth the specific developmental 
activities designed to impart the competencies of the occupation or 
functional discipline in which the Fellow or Senior Fellow is most 
likely to be placed. The IDP of a Senior Fellow must be approved by the 
appointing agency's ERB or equivalent.
    (b) Required developmental activities. (1) OPM will provide 
orientation and graduation programs for each class or cohort of Fellows 
and Senior Fellows, and will provide information on available training 
opportunities.
    (2) The appointing agency will provide each Fellow and Senior 
Fellow with formal classroom training during the Program:
    (i) For each Fellow, the appointing agency will provide a minimum 
of 80 hours per year of formal classroom training that addresses the 
core competencies required of the occupation or functional discipline 
in which the Fellow will most likely be placed upon completion of the 
program and conversion to a full-time, permanent position.
    (ii) For each Senior Fellow, the appointing agency will provide a 
minimum of 80 hours of formal interagency classroom training provided 
through an OPM-approved SES candidate development program. The OPM 
Director, or the Director's

[[Page 28782]]

designee, may approve alternative sources of such training.
    (3) The appointing agency will assign each Senior Fellow a mentor, 
who is a member of the SES (or equivalent). The mentor will assist the 
Senior Fellow in the development of his/her IDP.
    (4) The appointing agency will provide each Fellow and Senior 
Fellow with at least one rotational or developmental assignment with 
full-time management and/or technical responsibilities consistent with 
the Fellow's or Senior Fellow's IDP. With respect to this requirement:
    (i)(A) Each Fellow must receive at least one developmental 
assignment of 4 to 6 months in duration in the occupation or functional 
discipline in which the Fellow will most likely be placed, with full-
time management and/or technical responsibilities consistent with the 
Fellow's IDP.
    (B) In addition, the Fellow may receive other short-term rotational 
assignments of 1 to 6 months in duration, at the appointing agency's 
discretion, to occupations or functional areas different from the one 
in which the Fellow will most likely be placed;
    (ii) Each Senior Fellow will receive at least one long-term 
developmental assignment of at least 9 months in duration during which 
time the Senior Fellow will serve with full responsibilities for 
accomplishing the duties of that position.
    (c) Performance and progress evaluation. (1) Each Fellow and Senior 
Fellow will be placed on a performance plan, as prescribed by part 430 
of this chapter or other applicable law or regulation, establishing 
performance elements and standards that are directly related to 
acquiring and demonstrating the various leadership, technical, and/or 
general competencies expected of the Fellow or Senior Fellow as well as 
the elements and standards established for the duties assigned.
    (2) Each Fellow and Senior Fellow must receive an annual 
performance evaluation in accordance with the agency's performance 
management program. The rating is derived from an evaluation of the 
Fellow's or Senior Fellow's success in completing developmental 
activities designed to prepare the Fellow or Senior Fellow to meet the 
developmental and performance expectations described in his/her 
performance plan.
    (3) If a Fellow or Senior Fellow does not meet expectations (set 
forth in the performance plan) with regard to his/her developmental 
progress or assignments, the agency may take appropriate action.
    (d) Promotion. (1) An agency must establish policies and criteria 
for the promotion of Fellows and Senior Fellows. A Fellow may be 
promoted up to the GS-13 level or its equivalent. A Senior Fellow may 
be promoted up to the GS-15 level or its equivalent.
    (2) Time-in-grade requirements in part 300 of this chapter do not 
apply to the promotion of Fellows or Senior Fellows while they are 
appointed under Sec.  213.3102(ii) or (jj) of this chapter.
    (e) Certification of completion. (1)(i) Upon a Fellow's or Senior 
Fellow's completion of the Program, the appointing agency's ERB must 
evaluate each Fellow or Senior Fellow, as applicable, and determine 
whether it can certify in writing that he/she has met all of the 
requirements of the Program, including the performance and 
developmental expectations set forth in the individual's performance 
plan and IDP, as established by this regulation, and, if so, make that 
certification. In the event the OPM Director, or the Director's 
designee, has approved a waiver of one or more of those requirements in 
a particular case pursuant to Sec.  362.205, the ERB must certify that 
such a waiver has been granted and that any remaining requirements were 
met. The mentor may be consulted during this process. Any 
certifications are forwarded to OPM.
    (ii) Once Senior Fellows have been certified by the agency ERB, 
they are eligible for consideration by the QRB in the same manner as a 
graduate of an OPM-approved SES candidate development program.
    (iii) The agency must complete its evaluation, make a decision 
regarding certification of successful completion, and notify the Fellow 
or Senior Fellow, no later than 30 calendar days prior to the 
expiration of the Fellow's or Senior Fellow's appointment in the 
Program.
    (2)(i) If the ERB decides not to certify a Fellow or Senior Fellow, 
the Fellow or Senior Fellow may request reconsideration of that 
determination by the OPM Director, or the Director's designee. Such 
reconsideration must be requested in writing, with appropriate 
documentation and justification, within 15 calendar days of the date of 
the agency's decision.
    (ii) The Fellow or Senior Fellow may continue in the Program 
pending the outcome of his/her request for reconsideration. The agency 
must continue to provide appropriate developmental activities during 
this period.
    (iii) The OPM Director's, or the Director's designee's, 
determination in this regard shall be final and not subject to further 
review or appeal.


Sec.  362.205  Waiver.

    Under limited circumstances, the OPM Director, or the Director's 
designee, may approve a written request for a waiver of any of the 
requirements enumerated in this part.


Sec.  362.206  Movement between departments or agencies.

    (a) A Fellow or Senior Fellow may move to another agency at any 
time during his/her appointment in the Program. To move from one agency 
to another during the Program, the Fellow or Senior Fellow must 
separate from the current agency. The new employing agency must appoint 
the participant without a break in service under the appropriate Fellow 
or Senior Fellow appointing authority. The gaining agency's ERB must 
approve the Senior Fellow's appointment for continuation in the 
Program.
    (b) The Fellow or Senior Fellow does not begin a new period in the 
Program upon appointment by the new employing agency. Because there is 
no break in service, time served under the previous Program appointment 
will apply towards the completion of the Program with the new employing 
agency.
    (c) The new appointing agency must notify OPM when a Fellow or 
Senior Fellow moves to that agency from another agency.


Sec.  362.207  Withdrawal and readmission.

    (a) Withdrawal. (1) A Fellow or Senior Fellow may withdraw from the 
Program at any time by resigning from his/her appointment. Such 
withdrawal will be treated as a resignation from the Federal service; 
however, any obligations established upon admission and appointment 
(for example, as a result of accepting a recruitment bonus under part 
575, subpart A, of this chapter) still apply.
    (2) A Fellow or Senior Fellow who held a career or career-
conditional appointment in an agency immediately before entering the 
Program, and who withdraws from the Program for reasons that are not 
related to misconduct, poor performance, or suitability, may, at the 
employing agency's discretion, be placed in a career or career-
conditional position, as appropriate, in that agency. The employing 
agency's determination in this regard is not subject to appeal.
    (3) An agency must notify OPM when a Fellow or Senior Fellow 
withdraws from the Program.
    (b) Readmission. (1) If a Fellow or Senior Fellow withdraws from 
the Program for reasons that are related to misconduct, poor 
performance, or suitability, as determined by the agency,

[[Page 28783]]

he/she will not be readmitted to the Program at any time.
    (2) If a Fellow or Senior Fellow withdraws from the Program for 
reasons that are not related to misconduct, poor performance, or 
suitability, he/she may petition the employing agency for readmission 
and reappointment to the Program; such a petition must be in writing 
and include appropriate justification. Upon consideration of that 
petition, the agency may, at its discretion, submit a written request 
seeking OPM approval to readmit and reappoint the individual to the 
Program; the individual's status in the Program upon readmission and 
reappointment must be addressed as part of the agency's submission. The 
OPM Director's, or the Director's designee's, final determination 
regarding readmission and reappointment is not subject to appeal.


Sec.  362.208  Resignation, termination, reduction in force, and appeal 
rights.

    (a) Resignation. A Fellow or Senior Fellow who resigns at any time 
prior to completion of the Program does not have reinstatement 
eligibility for competitive service positions based on his/her Fellow 
or Senior Fellow appointment.
    (b) Termination. If an agency does not appoint a Fellow or Senior 
Fellow at the end of the Program, as provided in Sec.  362.209, or 
extend the individual's initial appointment under Sec.  362.203, the 
appointment expires when certification for Program completion is denied 
or when the OPM Director, or the Director's designee, denies the 
agency's request for an extension. The agency must provide written 
notification to OPM when a Fellow or Senior Fellow is terminated for 
this or any reason.
    (c) Reduction in force. Fellows and Senior Fellows are in the 
excepted service Tenure Group II for purposes of Sec.  351.502 of this 
chapter.
    (d) Appeal rights. Fellows and Senior Fellows are excepted service 
employees within the meaning of chapters 43 and 75 in title 5, United 
States Code, and have appeal rights as provided therein. For systems 
not covered by 5 U.S.C. chapters 43 or 75, Fellows and Senior Fellows 
have appeal rights as provided by the equivalent authorities under 
their system, if any.


Sec.  362.209  Placement upon completion.

    (a) A Fellow or Senior Fellow must complete the Program within the 
time limits prescribed in Sec.  362.203, including any extensions 
approved by OPM. At the conclusion of that time period, the Fellow or 
Senior Fellow must be appointed, as provided in paragraph (b) of this 
section.
    (b)(1) As provided in part 315 of this chapter and/or Executive 
Order 13318, and except as provided in paragraph (c) of this section, 
an agency must appoint without further competition an ERB-certified 
Fellow or Senior Fellow to a full-time, permanent position, in the 
competitive or excepted service, as applicable. Appointments must be 
effective on or before the expiration of the individual's PMF 
appointment, including extensions.
    (2) A Fellow or Senior Fellow who was initially appointed to a 
permanent position in an agency excepted from the competitive service 
upon completion of the Program may be appointed subsequently to a full-
time permanent position in the competitive service without further 
competition one time only in accordance with the requirements 
prescribed in Sec.  315.708 and Executive Order 13318.
    (c) As provided for in Sec.  362.204(e)(1)(ii), an agency may 
appoint a Senior Fellow who has been certified as having successfully 
completed the Senior Fellows program to a position in the SES, without 
further competition, in the same manner and subject to the same QRB 
review prescribed in Sec.  317.502 of this chapter as a graduate of an 
OPM-approved SES candidate development program.


Sec.  362.210  Transition.

    OPM shall provide written guidance for the orderly transition of 
employees from the Presidential Management Intern Program to the Fellow 
program and may revise it as necessary.

PART 537--REPAYMENT OF STUDENT LOANS

0
11. The authority citation for part 537 continues to read as follows:

    Authority: 5 U.S.C. 5379.

0
12. Revise paragraph (d) of Sec.  537.104 to read as follows:


Sec.  537.104  Employee eligibility.

* * * * *
    (d) Employees serving on excepted appointments who are eligible for 
noncompetitive conversion to a term, career, or career-conditional 
appointment (including, but not limited to, Career Interns, 
Presidential Management Fellows, or Senior Presidential Management 
Fellows).

PART 550--PAY ADMINISTRATION (GENERAL)

Subpart G--Severance Pay

0
13. The authority citation for subpart G continues to read as follows:

    Authority: 5 U.S.C. 5595; E.O. 11257, 3 CFR, 1964-1965 Comp., p. 
357.

0
14. Revise paragraph (f)(6) of the definition of ``Nonqualifying 
appointment'' in Sec.  550.703 to read as follows:


Sec.  550.703  Definitions.

* * * * *
    Nonqualifying appointment * * *
    (f) * * *
    (6) A Presidential Management Fellow or Senior Presidential 
Management Fellow appointment under part 362 of this chapter.
* * * * *
[FR Doc. 05-9909 Filed 5-18-05; 8:45 am]
BILLING CODE 6325-39-P