The Administration has developed draft legislation to require agencies to better manage, develop, and reward employees to better serve the American people. We are now beginning a process to inform all interested parties of our thinking. There will be much public debate and discussion in the months ahead about whether, how and when to adopt these proposals. We want this debate to be as informed as possible, to be about the facts of the proposal, and not what some may suppose it is about.

We most want you to understand what is being proposed, why, why now, what’s in it for you, and what assurances there are that the proposed changes can be successful and good for you. The documents below provide information about our draft proposal:

• Facts about the draft bill, including guiding principles
• A summary of the draft bill
• The draft bill
• A section-by-section analysis of the draft bill
• Answers to Frequently Asked Questions about the draft bill
• Additional Frequently Asked Questions
• A comparison of the draft bill to current law and reforms currently underway at the Departments of Homeland Security and Defense.

Sincerely,

Clay Johnson
Deputy Director for Management, OMB

In response to questions posed by Members of Congress, OPM Director Linda Springer and OMB Deputy Director for Management Clay Johnson provided the following responses. The documents address three areas of inquiry:

• The success of the government’s existing alternative pay systems. This paper (Alternative Pay Systems) chronicles a steady progression away from the current Governmentwide classification and pay systems toward alternative approaches where market rates and performance are central drivers of pay for over 90,000 Federal employees. Over the past 25 years, OPM and Federal agencies have made considerable progress in recognizing what works and what does not work when it comes to implementing performance-based pay systems.
• Robust Performance Management Systems in place in Federal agencies. This paper (Performance Management Systems) examines agency readiness and demonstrates that robust performance management systems are in place or being put in place for a significant portion of the workforce and for the Senior Executive Service. Over the past 3 years, OPM has worked one-on-one with agencies to improve their performance management systems. OPM requires agencies to demonstrate they are fully prepared to implement performance appraisal and award systems that are fair, credible, and transparent. In doing so, agencies are replacing pass/fail systems, renegotiating union contracts, and communicating new expectations with their workforce.
• How the Administration would implement of WFAA. This paper (WFAA Implementation) outlines key steps the Administration contemplates to establish and maintain the WFAA strategic compensation system.