U.S. Office of Personnel Management - Ensuring the Federal Government has an effective civilian workforce

A: Decision Rule #1: Any employee who encumbers a PMRS position on October 31, 1993, is covered by the provisions of P.L. 103-89.

A Decision Rule #2: After October 31, 1993, an employee remains covered by P.L. 103-89 so long as he or she continues to occupy any grade 13, 14, or 15 supervisor or management official position, as defined by 5 U.S.C. 7103(a)(10) and (11), which is in the same grade of the General Schedule, and in the same agency¹, as the position which the employee occupied on October 31, 1993; i.e.,:

• does not get reassigned to a non-supervisor or non-management official position at the same grade in the same agency,

• does not have a break in service of more than 3 days,

• does not transfer to another agency,

• does not get promoted or otherwise changed to a higher grade, and

• does not get demoted or otherwise changed to a lower grade.

¹ DOD agencies and the military departments (Army, Navy, Air Force) are not considered separate agencies (5 U.S.C. 101-105).

NOTE: Answers to the next eight questions illustrate these decision rules.

A: Yes. The employee is encumbering a PMRS position on October 31, 1993, so under Decision Rule #1, P.L. 103-89 applies.

A: No. Under Decision Rule #2, P.L. 103-89 coverage ends with a change to a lower grade. Whether the employee was temporarily promoted from a PMRS position or a GS position is irrelevant. The employee has not continued in a position at the same grade as was occupied on October 31, 1993.

A: No. The employee encumbers a GS position on October 31, 1993, so under Decision Rule #1, P.L. 103-89 will never apply. Upon termination of the temporary promotion, the employee will return to a GS position.

A: No. Under Decision Rule #2, after October 31, 1993, a promotion will terminate P.L. 103-89 coverage. Upon promotion, the employee will be placed on a GS step under GS pay plan rules and shift back to the GS pay plan code.

A: Under Decision Rule #2, a temporary promotion will terminate coverage. The employee will be promoted under the GS pay rules and drop the GM pay plan code, and will return to a GS position subject to GS pay rules when the temporary promotion is terminated.

A: No. When on a detail, an employee continues to encumber the original position of record. Therefore, on October 31, 1993, this employee encumbers a GS position, and, under Decision Rule #1, is not covered by P.L. 103-89. The employee remains a GS employee at the end of the detail.

A: Yes. Under Decision Rule #1, P.L. 103-89 covers all employees who encumber PMRS positions on October 31, 1993, whether or not they are on a designated step for their grade.

A: Apply Decision Rule #1--did the employee encumber a PMRS position on October 31, 1993? (An employee on LWOP continues to encumber the position.) Or was the action that took the employee "out of PMRS" one that leaves the former position unencumbered as of October 31, 1993? If it was the latter, then the employee is returning to a GS position and is not covered by P.L. 103-89. If the action did not leave the former position unencumbered and no other action occurred after October 31, 1993, under Decision Rule #2 to terminate the coverage, then P.L. 103-89 could be "activated" (i.e., pay rate set "off step" and GM pay plan code used) after November 1, 1993.

A: Yes. OPM will issue regulations for the implementation of P.L. 103-89 and pay administration rules for covered employees.

A: Yes. P.L. 103-89 provides that the rate of basic pay payable on October 31, 1993, is the rate of basic pay for covered employees, as adjusted by the final merit increase. Employees paid below the minimum of their grade will continue to be paid below the minimum until some other pay action (e.g., a WGI) brings their rate of basic pay up to or above the minimum, or until they are no longer covered by P.L. 103-89.

A: No. The provisions at 5 U.S.C. 5403 expire as of November 1, 1993. Only GS pay adjustment rules will be in effect as of January 1, 1994.

A: Before November 1, 1993, use the PMRS promotion rules at 5 CFR 531.204. On or after November 1, 1993, use the GS promotion rules at 5 U.S.C. 5334(b).

A: The final merit increases granted under the PMRS extension will be considered a last equivalent increase for calculating waiting periods. Therefore, most employees in the bottom third (first tercile) of their pay ranges will receive WGI's in October 1994. (First tercile employees who were ineligible for the October 1993 merit increase because within 90 days of the effective date of that merit increase they were (a) hired into the Government, (b) promoted into the PMRS, or (c) received a WGI or QSI, will receive their WGI's between June and October 1994.) Second and third tercile employees will receive their WGI's in 1995 and 1996, respectively.

A: No. A zero merit increase is considered a last equivalent increase with respect to calculating waiting periods.

A: Yes. A first tercile employee reassigned or transferred from a PMS to a PMRS position after the effective date of the October 1993 merit increase and before November 1, 1993, would be eligible for a WGI 52 weeks from the effective date of his or her last WGI (his or her last equivalent increase). Among this group, employees who received their last WGI after October 3, 1992, and before November 2, 1992, would be eligible for their next WGI November 1, 1993, when P.L. 103-89 puts them under GS pay plan rules and waiting periods. Those who received their last WGI after November 1, 1992, would be eligible for their next WGI whenever they complete their waiting period, i.e., some time after November 1, 1993. Therefore, we caution you about moving employees into the PMRS during the October transition period. The timing for personnel action processing and coding of the final merit increases for PMRS employees and any immediate WGI's granted to employees covered by P.L. 103-89 must be worked out carefully (see Q25).

A: Not unless you extend your FY 94 performance appraisal cycle beyond the effective date of the WGI. Regulations at 5 CFR 531.404(a)(2) require that the rating of record used as the basis for an ALOC determination must have been assigned no earlier than the most recently completed appraisal period.

A: P.L. 103-89 covers employees, rather than positions. Therefore, after October 31, 1993, all positions in grades 13, 14, and 15 that are considered supervisor or management official positions under paragraphs (10) and (11) of 5 U.S.C. 7103(a) will be GS positions. If one of those positions is occupied by an employee who is covered by P.L. 103-89, the agency, at its discretion, may choose to label the position a "GM" position to indicate the status of the person encumbering it.

A: Yes. Unencumbered will be considered GS positions. The question of whether they are supervisor or management official positions is a separate, labor relations issue.

A: Since all PMRS positions revert to GS as of November 1, 1993, you should post such positions as GS.

A: No. There is no particular requirement to change a position description, especially so long as it is encumbered by an employee covered by P.L. 103-89. "GM" need not be changed to "GS".

A: Yes. So long as P.L. 103-89 coverage is not terminated by one of the actions listed in Decision Rule #2 (see Q2), all SF 50 actions should use the GM pay plan code.

A: Status as a supervisor or management official has implications outside performance management. Its primary importance is in labor relations, since bargaining units may not include such employees. The redefined GM code will have no effect on the supervisory status codes for supervisor and management official.

A: OPM plans to redefine the meaning of the current nature of action code for a PMRS merit increase (NOAC = 891) to indicate WGI's granted to "GM" employees under P.L. 103-89. The 891 NOAC on any action with an effective date before November 1, 1993, will still indicate a merit increase granted under the authority of 5 U.S.C. 5404, as extended by P.L. 103-89. Agencies needing to grant a WGI immediately after the termination of the PMRS (see Q17) should contact OPM to get specific instructions on what NOAC and legal authority code to use. More general instructions will be issued as soon as possible after agencies have processed their final merit increase actions.

A: Not unless you want to for some reason. PMRS elements and standards, and probably most work objectives (see Q31), can be used under PMS.

A: Agencies have two basic options for dealing with their PMRS plans:

• adapt the existing PMRS plan as an agency subsystem under the OPM-approved agency PMS plan (see Q29), or

• bring former PMRS employees directly under the coverage of the OPM-approved agency PMS plan.

Agencies should issue appropriate policy guidance to explain plan changes and other differences in provisions for affected employees.

A: Yes. As in the past, how much flexibility to delegate to its subcomponents is a matter of agency discretion.

A: Yes. OPM regulation permits agencies to use multiple performance appraisal systems for different employee populations under PMS. Therefore, an agency may decide to keep its PMRS plan as a separate PMS appraisal system for former PMRS employees. An agency choosing that option should ensure that work objectives, if used, meet the requirements of PMS critical elements and standards and that the retention level conforms with that stated in the OPM-approved agency PMS plan. Also, it probably would be sensible to define coverage of this separate PMS plan as including supervisors and management officials, irrespective of whether they are still covered by P.L. 103-89. Please notify PMIAD at 202-606-2720 if you decide to maintain your agency's PMRS plan as a separate plan within your PMS.

A: Only if you want to. You should first determine the extent of changes required to make your PMRS plans conform to the requirements of PMS. If they are minimal, it may be to your advantage and least disruptive to make the necessary changes, maintain the PMRS plans, and inform OPM. Keep in mind that we cannot predict the timing of our larger performance management reform effort at this time.

A: Yes, provided they conform to PMS requirements for elements and standards. PMRS work objectives will be acceptable as elements and standards under the PMS if they were written according to OPM's guidance about using work objectives that was issued in an August 19, 1991, IAG memo to directors of personnel.

A: Keeping or changing the PMRS appraisal cycle is up to you. Agencies are free to adjust their appraisal cycles for former PMRS employees to coincide with their PMS population. You can do this by shortening or lengthening one or more cycles, so long as no cycle is less than 90 days. If you shorten a cycle, however, make sure the minimum period is reasonable for the kind of work performed.

A: No. P.L. 103-89 does not address broader performance management issues. The notion of a basic "meet"/"does not meet" performance distinction is part of a larger OPM performance management legislative reform package that is under development.

A: PMRS performance awards must be obligated by October 31, 1993, show effective dates of not later than October 31, 1993, and be paid by December 31, 1993.

A: Past practice indicates that agencies complete their performance award payments during the first quarter of the fiscal year if they are using that year's funds to pay them. As long as you obligate the award funds by October 31, 1993, they will be PMRS performance award expenditures made under the authority of 5 U.S.C. 5406 as extended by P.L. 103-89. Agencies should complete actual payment by December 31, 1993.

A: No. For this transition year only, OPM will apply the funding limits to total dollars spent to reward FY 93 performance, rather than to total dollars spent during a particular fiscal year.

A: No. The PMRS termination legislation's extension of the PMRS awards authority is intended only to enable agencies to pay performance awards for the FY 93 performance cycle.

A: Yes, provided you have not already rewarded that employee's FY 93 performance with a PMRS award. Agencies should wait until the former PMRS employee receives an FY 94 rating of record before granting him or her a PMS performance award.

A: Yes, because performance awards are based on ratings of record that are usually annual and require a minimum appraisal period of 90-120 days. We advise, however, that you avoid paying back-to-back performance awards, which are intended to reward consistently superior, long-term performance. For substantial short-term contributions, a special act award may be more appropriate.

A: No. It appears that Congress will freeze the general pay increase due in January 1994 in order to implement locality-pay raises. By past practice, some agencies will be basing their awards pool calculation on FY 94 figures (e.g., if they are using only FY 94 funds to pay awards and consider FY 94 to be "the current fiscal year" referenced in 5 CFR 540.109(b)). Some of the factors to be considered in estimating aggregate pay under 5 CFR 540.109(b)(2) are uncertain this year, including possible significant changes in the number of PMRS employees. (Amounts for locality pay may not be included as basic pay in making these estimates.) Because of this uncertainty, it may be easier for such agencies simply to use their aggregate PMRS basic pay as of September 30, 1993, as adjusted for the final October 1993 merit increases, to calculate their awards pool.

A: Congress dropped the Norton amendment to the 1993 Omnibus Budget Reconciliation Act that would have imposed a 5-year moratorium on Federal cash awards beginning in FY 94. We know of no other such amendment under consideration by Congress at this time. Agencies may use their authority to grant monetary and nonmonetary awards. There are no minimum or maximum spending limitations. Some agencies are reexamining their funding levels for awards programs, given other funding obligations and limitations that agencies must deal with in making FY 94 pay adjustments.

A: P.L. 103-89 puts them under GS pay plan rules as of November 1, 1993. At that time, a former PMRS employee with a level 5 (Outstanding) rating of record will be eligible for a QSI. However, agencies should keep in mind the criteria for granting QSI's, the base pay adjustments already received by former PMRS employees (i.e., final, full merit increases), and the financial obligation for the agency.

A: Until October 31, 1993, you must put a PMRS employee on a PIP for marginal performance. After October 31, 1993, you may, depending on provisions for PIP's contained in your PMS (or if you have retained it, your PMRS) plan.

A: Yes, if your PMS plan covering the employee provides for a PIP.

A: Time under a PMRS PIP is likely to count toward the employee's opportunity to improve period if the retention level originally communicated to the employee in the PIP does not change. You will need to specify a new retention standard and begin a new opportunity period if your PMS plan states that the retention level is Minimally Successful as compared to Fully Successful under PMRS.

A: You can effect actions for marginal performance on or before October 31, 1993, when the PMRS expires.

A: Performance-based actions under 752 may be taken as long as the performance required for retention is at the same level as would be required under 432. You can safely effect any 752 actions for marginal performance on or before October 31, 1993. After October 31, 1993, you can take action for unacceptable performance only.

A: Yes. The employee notification letter stating (a) that the PMRS expires October 31, 1993, (b) that the employee will retain his or her current rate of pay, (c) that the GM pay plan code will continue, (d) that the GS pay plan rules apply, and (e) how the employee's performance appraisal will be affected, can be placed on the right side of the employee's OPF as documentation. Another option is to add a remark to an SF 50 indicating the changed definition of the GM pay plan code and the coverage of P.L. 103-89.

A: As long as former PMRS employees meet the supervisor and management official definitions at 5 U.S.C. 7103(a)(10) and (11), they are excluded from the bargaining unit.

A: Yes. However, as part of a National Performance Review initiative in the coming months, OPM, in consultation with the agencies, will review the necessity of retaining FPM guidance. This review will analyze FPM contents on an issuance by issuance basis.