[Federal Register: May 9, 2008 (Volume 73, Number 91)]
[Notices]
[Page 26436-26451]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09my08-112]
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OFFICE OF PERSONNEL MANAGEMENT
Proposed Personnel Demonstration Project; Alternative Personnel
Management System for the U.S. Department of Agriculture, Food Safety
and Inspection Service
AGENCY: U.S. Office of Personnel Management.
ACTION: Notice of a proposed demonstration project plan.
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SUMMARY: Chapter 47 of title 5, United States Code, authorizes the U.S.
Office of Personnel Management (OPM), directly or in agreement with one
or more agencies, to conduct demonstration projects that experiment
with new and different human resources management concepts to determine
whether changes in human resources policy or procedures result in
improved Federal human resources management. The Food Safety and
Inspection Service (FSIS), the United States Department of Agriculture
(USDA), and OPM propose to test a results-based, competency-linked pay-
for-performance system that is combined with a simplified, pay banding
classification and compensation system. Section 4703 of
[[Page 26437]]
title 5 requires OPM to publish the proposed project plan in the
Federal Register. This notice fulfills that requirement.
DATES: To be considered, written comments must be submitted on or
before June 9, 2008. A public hearing will be held on the proposed
project plan on Thursday, June 26, 2008, and will begin at 10 a.m.,
Eastern Standard Time. The location of the hearing is: U.S. Department
of Agriculture, South Building, 1400 Independence Avenue, SW.,
Washington, DC 20250. You must use the 7th wing entrance which is
accessible from Independence Avenue.
Public parking is limited, but the building is conveniently
accessible to the ``Smithsonian'' Metro stations. The South Building is
a secure facility. Members of the public must show a government-issued
photo ID (e.g. State driver's license). Attendees will undergo
electronic screening, and their personal belongings will be subject to
a physical search. Personal items prohibited in the South Building
include devices that can transmit and record, weapons (guns, knives,
explosives, etc.), and alcohol. A member of the public possessing such
items will be barred from entering, and such items are subject to
confiscation. There will be a sign-in table set up in the lobby of the
Jefferson Auditorium. A greeter and signs will direct attendees to the
auditorium location.
There will be a telephone call-in number for members of the public
and agency who cannot attend in person. That number will be 888-790-
4330 (Passcode: Demonstration Project), and the line will be active
from 10 a.m. Eastern Standard Time until the conclusion of the hearing.
At the time of the hearing, interested persons or organizations may
present their written or oral comments on the proposed demonstration
project. The hearing will be informal. However, anyone wishing to
testify should contact the person listed under FOR FURTHER INFORMATION
CONTACT, so that FSIS, USDA, and OPM can plan the hearing and provide
sufficient lead time for all interested persons and organizations to be
heard. Priority will be given to those on the schedule, with others
speaking in any remaining available time. Each speaker's presentation
will be limited to five minutes. Written comments may be submitted to
supplement oral testimony during the public comment period.
ADDRESSES: Comments may be mailed to Demonstration Projects, U.S.
Office of Personnel Management, 1900 E Street, NW., Room 7677,
Washington, DC 20415 or submitted by e-mail to Demoprojects@opm.gov.
FOR FURTHER INFORMATION CONTACT: (1) FSIS, Laurie Lindsay, Director, HR
Demonstration Project Staff, (202) 720-7983, 1400 Independence Avenue,
SW., Room 2134 South Building, Washington D.C, 20250; (2) Office of
Personnel Management, Patsy Stevens, Systems Innovation Group Manager,
(202) 606-1574, U.S. Office of Personnel Management, 1900 E Street,
NW., Room 7456, Washington, DC 20415.
SUPPLEMENTARY INFORMATION: The goals of this demonstration project are
to improve workforce performance and promote mission accomplishment by
making employees' pay increases more performance-sensitive, so that
only Fully Successful and higher performers will receive any pay
adjustments and the best performers will receive the largest pay
adjustments. This will produce such measurable outcomes as improving
the quality of new hires, increasing the proportion of agency positions
that remain filled, improving supervisors' and employees' commitment to
a highly effective performance culture, retaining good performers,
making line managers more responsible and accountable for human
resources management, improving the effectiveness and efficiency of
human resources systems, and closing human capital gaps for supervisory
and mission-critical occupations (e.g., the gap between the number of
employees required at each competency proficiency level to perform
current and future missions and the number of existing employees at
those levels).
Linda M. Springer,
Director.
Table of Contents
I. Executive Summary
II. Introduction
A. Purpose
B. Problems with the Present System
C. Changes Required/Expected Benefits
D. Participating Organizations
E. Participating Employees
F. Labor Participation
G. Project Design
III. Personnel System Changes
A. Pay Banding Classification and Pay System
1. Establishment of Career Paths and Pay Bands
2. Position Classification
3. Delegation of Classification Authority
4. Classification Appeals
5. Elimination of Fixed Steps
6. Rate Range
7. Locality Pay
8. Rate of Basic Pay Upon Initial Appointment
9. Rate of Basic Pay Upon Promotion
10. Rate of Basic Pay in Noncompetitive Lateral Actions
11. Other Pay Administration Provisions
12. Staffing Supplements
13. Status as GS Employees
B. Performance Appraisal System
1. Program Requirements
2. Supervisory Accountability
3. Reconsideration of Ratings
C. Performance-based Pay Increases and Awards
1. Performance Shares
2. Performance Pay Pools
3. Performance-based Pay Increases
4. Employees Who Cannot Receive a Performance Pay Increase
5. Performance Awards
D. Developmental Pay Increases
E. Staffing
1. Minimum Qualification Requirements
2. Flexible Pay Setting for New Hires
3. Promotions
F. Reduction-in-Force
IV. Training
V. Conversion
A. Conversion to the Demonstration Project
B. Conversion to the General Schedule
VI. Project Modification
VII. Project Duration
VIII. Project Evaluation
IX. Costs
A. Buy-in Costs
B. Recurring Costs
X. Waiver of Laws and Regulations Required
I. Executive Summary
This project was designed by the United States Department of
Agriculture (USDA), including the Food Safety and Inspection Service
(FSIS), with participation of and review by the U.S. Office of
Personnel Management (OPM). The demonstration project will pursue
several key objectives: to simplify the current classification system
for greater flexibility in classifying work and paying employees; to
reaffirm the performance management and rewards system for improving
individual and organizational performance; to assure that the
allocation of annual pay increases reflects distinctions in levels of
performance in a meaningful way; and to test the effectiveness of
multi-grade pay bands in recruiting, advancing and retaining employees.
The duration of the project will be 5 years, except that the project
may be extended by OPM if further testing and evaluation are warranted.
The proposed project will test whether a results-based, competency-
linked pay-for-performance system can be successful in USDA. Previous
alternative pay systems that used competency models (e.g., the
Government Accountability Office (GAO) compensation system and the
Department of Defense (DOD) Acquisition Workforce Demonstration
Project) did not focus on missions or occupations related to public
health or food defense. Moreover, the workforce covered by the proposed
demonstration project is predominantly supervisory (about 40%), and it
is important to
[[Page 26438]]
establish effective pay-for-performance policies and procedures for
supervisory positions before extending such systems to large numbers of
line worker positions throughout the Federal Government. Finally, a
substantial number of the covered employees (approximately 30 percent)
have working conditions that are dramatically different from other
white-collar workers (e.g., shift-oriented work in slaughter or meat
processing facilities), including the requirement for substantial
amounts of regularly-scheduled and intermittent overtime.
II. Introduction
A. Purpose
The purpose of the proposed project is to strengthen the
contribution of human resources management in helping to achieve the
missions of the specific program areas of FSIS. The proposed project
will test whether a results-based, competency-linked, pay-for-
performance system and related innovations will produce successful
results in a public health regulatory environment with distinct working
conditions and an ever-present concern for food defense and security.
B. Problems with the Present System
The USDA Strategic Human Capital Plan and the President's
Management Agenda require FSIS to manage human capital in the 21st
century very aggressively. FSIS must achieve comprehensive human
capital goals for strategic workforce planning, learning and workforce
development, recruitment and retention, and evolution of a highly
effective performance culture.
The FSIS Strategic Plan calls for continued transformation of the
existing workforce, which was recruited and trained during a time when
food safety was considered a conventional inspection program governed
by legislation such as the Federal Meat Inspection Act of 1906, the
Poultry Products Inspection Act of 1957, the Wholesome Meat Act of
1967, the Wholesome Poultry Products Inspection Act of 1968, and the
Egg Products Inspection Act of 1970. This legislation was enacted when
food industry practices were characterized by carcass-by-carcass
organoleptic inspection. To carry out its public health regulatory
missions today, FSIS must assure science-based development and
execution of policy and must also emphasize risk-oriented assessment,
planning, analysis, inspection, and management activities. Also, FSIS
must recruit, develop, retain, and accomplish life-cycle management for
a workforce that is educated and skilled in public health, food
defense, food safety, public education, and emergency-response systems,
programs, practices, and technologies. In addition to inspecting
poultry and meat animals, poultry and meat products, and egg products,
FSIS must accomplish a growing list of advanced public health functions
to include conducting risk assessments to identify and evaluate the
potential human health outcomes from the consumption of meat, poultry,
and egg products.
At best, the personnel system that currently covers USDA and FSIS
employees is based on 20th century assumptions about the nature of
public service. Although the current Federal personnel management
system is based on important core principles, those principles operate
in an inflexible, one-size-fits-all system of defining work, hiring
staff, managing people, assessing and rewarding performance, and
advancing personnel. These inherent weaknesses make support of the FSIS
mission complex, costly, and, ultimately, risky from the standpoint of
public health. Currently, pay and the movement of personnel are pegged
to outdated, narrowly-defined work definitions, hiring processes are
cumbersome, and high performers and low performers are generally paid
alike. These systemic inefficiencies detract from the potential
effectiveness of the public health workforce.
The challenges facing USDA and FSIS today to assure and improve the
public health from farm to table require a workforce transformation.
FSIS employees are being asked to assume new and different
responsibilities, take more initiative, and be more innovative, agile,
and accountable than ever before. It is critical that USDA and FSIS
support the entire public health workforce with modern systems,
particularly a human resources management system that supports and
protects their critical role in public health, food safety, and food
security.
C. Changes Required/Expected Benefits
The innovations of the project and their objectives are summarized
below.
1. Pay Banding and Classification
Occupational groups will be placed in appropriate career paths, pay
bands will replace grades, and agency pay band standards will replace
OPM position classification standards. The classification system will
be automated as much as possible through intranet-based classification
tools, and authority will be delegated to line managers (at least one
level below the Deputy Assistant Administrator level).
These changes are intended to simplify and speed up the
classification process, make the process more serviceable and
understandable, improve the effectiveness of classification decision-
making and accountability, and facilitate pay for performance.
Pay bands, which generally correspond to multiple grade levels,
provide larger classification targets that can be defined by shorter,
simpler, and more understandable classification standards. This simpler
system will be easier to automate, will require fewer resources to
operate, and will facilitate delegation to line managers.
By providing broader and more flexible pay ranges for setting entry
pay, pay banding will provide hiring officials with an important tool
for attracting high-quality candidates and thus contribute to the
objective of increasing the quality of new hires.
By providing more flexible pay progression based on performance,
pay banding will give managers the ability to increase the pay of good
performers to higher and more competitive levels, thus improving the
retention of good performers. At the same time, the potential for
higher pay increases for good performance, supported by the broader pay
ranges of a pay banding system, will contribute to the objective of
improving organizational and individual performance.
2. Staffing
Additional staffing tools will include such elements as flexible
entry salaries, staffing supplements for employees in the applicable
special rate categories, developmental pay increases, and more flexible
pay increases associated with promotion.
These changes are intended to attract high-quality candidates and
increase the retention of good performers. Flexible pay-setting for new
hires is a recruiting tool that gives hiring officials greater
flexibility to offer more competitive salaries to high-quality
candidates, addressing the objective of improving the quality of new
hires. This will be used in conjunction with existing recruitment and
retention incentives under title 5.
3. Pay
The most important change in pay administration is the introduction
of a pay-for-performance system. The pay-for-performance system will
support several objectives. It will strengthen the organization's
performance culture. It will promote fairness through the
[[Page 26439]]
results-based, competency-linked, performance rating process. It will
provide a motivational tool as well as a retention tool. As a
motivational tool, the promise of higher pay increases for good
performance encourages high achievement. As a retention tool, a pay-
for-performance system allows the organization to quickly move the
salaries of good performers to levels that are more competitive in the
labor market. The promise of higher pay increases for good performance
will encourage achievement and promote the objective of improved
individual and organizational performance.
Under the proposed pay-for-performance system, employee performance
ratings will govern individual pay progression within pay bands. Any
general increase in GS rates of basic pay approved by Congress and the
President will be applied only to the FSIS band ranges (i.e., band
minimums and maximums). Demonstration project employees will receive
pay increases based on their rating of record. Funds currently applied
to within-grade increases, quality step increases, and the annual GS
pay adjustment will be used to grant these performance-based pay
increases. Employees rated below Fully Successful will not receive any
basic pay increase, nor will they receive pay increases when locality
pay percentages are increased. (See section III.C.)
In addition, employees in developmental positions may receive
additional pay increases. Funds used for career ladder promotions from
one grade to a higher grade will initially be used to fund these
developmental pay increases. These pay increases may be granted to an
employee to recognize the faster progression that can occur in a
developmental position. This pay flexibility addresses the objective of
improving retention by raising the pay of high-performing employees
while also supporting the objective of preserving merit system
principles (e.g., equal pay for work of equal value). (See section
III.D.)
4. Performance Appraisal
The demonstration project will continue to use the current FSIS
appraisal program including the current five-level rating process,
which incorporates competencies into the performance standards. (The
five-level rating system has the following levels: 1--Unacceptable, 2--
Marginal, 3--Fully Successful, 4--Superior, and 5--Outstanding.) The
performance appraisal process is intended to (1) promote good
performance; (2) encourage a continuing dialogue between supervisors
and employees on organizational objectives, supervisory expectations,
employee performance, employee needs for assistance and guidance, and
employee development; and (3) provide a basis for performance-related
decisions in employee development, pay, rewards, assignment, promotion,
and retention. The program will more effectively communicate to
employees how they are performing, the rewards of good performance, and
the consequences of poor performance.
5. Pay for Performance
The most important feature of the demonstration project is that it
links the employee's rating of record to shares of a performance pay
pool. Performance-based pay increases give an operating unit the
ability to raise the pay of good performers more rapidly, thus
improving retention of good performers. Performance pay is distributed
to employees either in the form of increases in base pay or, when the
employee reaches a band maximum (or is on retained pay), in the form of
a performance bonus. The number and type of performance pay pools will
be described in implementing guidance, but performance ratings will be
linked to performance pay shares so that employees who earn a level
five rating (the highest) will earn the greatest number of performance
pay shares, employees who earn a level four rating will earn a smaller
number of shares, and employees who earn a level three rating will earn
the fewest number of performance shares. Employees rated below level
three will not be eligible for performance pay increases.
6. Performance Awards
Existing programs for both non-monetary and monetary recognition
will remain under the plan in accordance with chapter 45 of title 5,
United States Code.
Awards address two objectives. First, rewarding achievement will
make high achievers more likely to remain, thus improving retention of
the best performers. Second, the potential for awards for achievement
will encourage improved individual performance. Although FSIS is not
testing any new procedures under the demonstration project authority in
chapter 47 of title 5, awards are a key part of a performance pay
system and therefore noted here to clarify their use and provide a full
picture of the project plan.
7. Line Management Authority
The program areas will delegate greater authority and
accountability to line managers. This delegation is intended to improve
the effectiveness of human resources management by strengthening the
role of line managers as the human resources managers of their units.
The project will be managed by the FSIS Demonstration Project
Management Board (DPMB), composed of representatives from each
operating unit (program area) and chaired by the Assistant
Administrator for the Office of Management.
D. Participating Organizations
The Department proposes that FSIS be the only agency participating
in this project. The Department and FSIS have determined that employees
in all program areas in the agency, including headquarters and field
employees, will participate, except that all bargaining-unit members
will be excluded. Including all bargaining unit members would cause the
project to exceed the 5,000 limit on the number of participating
employees. Included in the project are all non bargaining-unit
employees located in meat and poultry plants throughout the United
States (excluding intermittent food inspection personnel (GS-1863)
appointed under Schedule A 213.3113(1)(3) and Schedule C employees), 15
District Offices, 3 Field Laboratories, a Technical Service Center in
Omaha NE, a Financial Processing Center in Des Moines IA, a Human
Resources Field Office in Minneapolis MN, as well as all Headquarters
program offices. Each of these units is committed to operating a
credible, robust performance appraisal program aligned to the
organization's strategic goals and objectives. These organizations have
demonstrated this commitment the past two years, as FSIS implemented a
comprehensive performance management training program within the
agency.
E. Participating Employees
The demonstration project covers all General Schedule employees
(with pay plan codes GS and GM) in non-bargaining unit positions. The
excluded bargaining unit positions are nonsupervisory positions in the
food technology (GS-1382), food inspection (GS-1863), and consumer
safety inspection (GS-1862) series and non-bargaining food inspection
(GS-1863) employees appointed under Schedule A 213.3113(1)(3).
Also excluded from coverage of this project are all Senior
Executive Service (SES), Senior Level (SL), and Federal Wage System
(WG) employees, and all Schedule C employees.
Table 1 shows the number of employees subject to coverage under
this project by occupational series and
[[Page 26440]]
grade. The OPM occupational series will be retained for all covered
positions.
Table 1.--Covered Employees, by Series and Grade (as of 01/08/08)
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Series 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
0018............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 4 1 ...... ...... 5
0080............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 1 ...... 1
0099............................................................ ...... ...... ...... 1 ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 1
0101............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 1 1
0110............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 1 4 ...... 5
0199............................................................ ...... ...... ...... 1 ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 1
0201............................................................ ...... ...... ...... ...... ...... ...... ...... ...... 10 ...... 4 26 41 21 4 106
0203............................................................ ...... ...... ...... ...... 6 5 17 ...... ...... ...... ...... ...... ...... ...... ...... 28
0260............................................................ ...... ...... ...... ...... ...... ...... ...... ...... 3 ...... 1 1 8 4 1 18
0299............................................................ ...... ...... ...... ...... ...... ...... 1 ...... 2 ...... ...... ...... ...... ...... ...... 3
0301............................................................ ...... ...... ...... ...... ...... ...... 1 ...... 46 1 1 23 20 19 11 122
0303............................................................ 3 ...... 3 14 9 4 12 ...... 1 ...... ...... ...... ...... ...... ...... 46
0305............................................................ ...... ...... 1 5 1 ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 7
0318............................................................ ...... ...... ...... ...... 4 16 37 8 4 ...... ...... ...... ...... ...... ...... 69
0326............................................................ ...... 1 ...... 14 ...... 9 ...... ...... ...... ...... ...... ...... ...... ...... ...... 24
0335............................................................ ...... ...... ...... 1 ...... 5 1 ...... ...... ...... ...... ...... ...... ...... ...... 7
0340............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 35 28 63
0341............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 1 ...... 1 ...... ...... 2
0342............................................................ ...... ...... ...... ...... ...... ...... ...... ...... 1 ...... ...... ...... 1 1 ...... 3
0343............................................................ ...... ...... ...... ...... ...... ...... 1 ...... 16 ...... 15 34 52 32 14 164
0344............................................................ ...... ...... ...... ...... 1 4 35 ...... ...... ...... ...... ...... ...... ...... ...... 40
0361............................................................ ...... ...... ...... ...... ...... ...... 1 ...... ...... 1 ...... ...... ...... ...... ...... 2
0391............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 1 1 ...... ...... 2
0399............................................................ ...... ...... ...... 1 ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 1
0401............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 4 1 2 7
0403............................................................ ...... ...... ...... ...... ...... ...... ...... ...... 6 ...... 2 30 35 16 2 91
0404............................................................ ...... ...... 5 2 1 1 8 ...... 11 ...... 2 ...... ...... ...... ...... 30
0414............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 1 ...... ...... ...... 1
0415............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 2 1 ...... 3
0499............................................................ ...... 1 1 1 1 ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 4
0501............................................................ ...... ...... ...... ...... ...... ...... 2 ...... 5 ...... 4 2 6 6 3 28
0503............................................................ ...... ...... ...... 2 22 6 5 3 ...... ...... ...... ...... ...... ...... ...... 38
0510............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 8 10 3 ...... 21
0544............................................................ ...... ...... ...... ...... ...... ...... 3 ...... ...... ...... ...... ...... ...... ...... ...... 3
0560............................................................ ...... ...... ...... ...... ...... ...... ...... ...... 1 ...... ...... 5 3 3 1 13
0561............................................................ ...... ...... ...... ...... ...... ...... 1 ...... ...... ...... ...... ...... ...... ...... ...... 1
0599............................................................ ...... ...... ...... 1 ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 1
0601............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 6 6 1 13
0602............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 1 ...... 1
0690............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 1 1 ...... ...... 2
0696............................................................ ...... ...... ...... ...... ...... ...... 2 ...... 3 ...... 14 161 83 2 ...... 265
0699............................................................ ...... ...... ...... 2 ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 2
0701............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 74 678 184 25 6 967
0799............................................................ ...... ...... ...... ...... ...... ...... 19 ...... ...... ...... 1 ...... ...... ...... ...... 20
0896............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 1 1 ...... 2
1035............................................................ ...... ...... ...... ...... ...... ...... 1 ...... 1 ...... 3 5 7 1 ...... 18
1071............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 2 ...... ...... ...... ...... 2
1084............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 1 ...... ...... ...... ...... 1
1101............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 3 1 1 5
1102............................................................ ...... ...... ...... ...... ...... ...... ...... ...... 1 ...... ...... 3 3 2 ...... 9
1301............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 2 2 ...... 4
1311............................................................ ...... ...... ...... 1 1 1 ...... ...... 6 ...... 2 ...... ...... ...... ...... 11
1320............................................................ ...... ...... ...... ...... ...... ...... ...... ...... 2 ...... 5 33 20 6 ...... 66
1382............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 8 3 ...... 11
1412............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 1 7 1 1 ...... 10
1501............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 3 2 ...... 5
1515............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 1 1 ...... ...... 2
1529............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 2 1 ...... 3
1654............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 1 1 1 ...... ...... 3
1701............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 1 ...... ...... 1
1702............................................................ ...... ...... ...... ...... ...... 1 ...... 1 ...... ...... ...... ...... ...... ...... ...... 2
1801............................................................ ...... ...... ...... ...... ...... ...... 1 ...... 1 ...... 41 71 30 16 2 162
1810............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 6 2 1 ...... 9
1862............................................................ ...... ...... ...... ...... ...... ...... ...... 15 115 ...... ...... ...... ...... ...... ...... 130
1863............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 1 4 ...... ...... 5
1899............................................................ ...... ...... ...... 1 1 ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 2
2001............................................................ ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... 3 ...... 2 ...... ...... 5
2005............................................................ ...... ...... ...... ...... ...... 1 ...... ...... ...... ...... ...... ...... ...... ...... ...... 1
2210............................................................ ...... ...... ...... ...... ...... ...... ...... ...... 2 ...... 2 34 30 18 3 89
2299............................................................ ...... ...... ...... ...... ...... ...... ...... ...... 1 ...... ...... ...... ...... ...... ...... 1
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Total....................................................... 3 2 10 47 56 44 148 27 238 2 180 1,137 581 236 80 2,791
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[[Page 26441]]
F. Labor Participation
No bargaining-unit employees are covered in this project.
G. Project Design
The project methodology is to introduce into all FSIS program areas
(for covered positions) certain innovations in human resources
management, and to evaluate over time the effects of those innovations
on the ability of the program areas to manage their human resources.
The methodology includes the following steps:
1. Selection of Innovations: The Department and FSIS have
determined that particular pay banding and performance-based pay
progression innovations that are linked to a framework of core
competencies should be included in the proposed project. These
innovations, and the procedures associated with them, are described
below under Pay Banding Classification and Pay System, Performance
Appraisal System, Performance-based Pay Increases and Awards,
Developmental Pay Increases, Staffing and Reduction-in-Force (See
Section III, A through F).
2. Selection of Program Areas: The Department and FSIS have
selected all program areas of the agency for inclusion in the project
since the total number of non-bargaining unit employees is
approximately 2,900 (part-time, full-time, and intermittent) and falls
within the maximum of 5,000 allowed for a demonstration project.
3. Goals and Objectives: The specific project objectives are listed
under SUPPLEMENTARY INFORMATION and Executive Summary and are directly
related to the issues identified under Section II.B, Problems with the
Present System.
4. Partnership: The Department and FSIS have limited the covered
workforce to non-bargaining unit positions. Therefore, input from labor
representatives is not required. However, consistent with the policy of
the agency Administrator, FSIS will seek input from two employee
associations whose membership overlaps with the covered workforce.
5. Baseline Evaluation: To provide a basis of comparison between
employee opinions of the current system and their future opinions of
the project system, each employee in the covered program areas will be
asked to complete an opinion questionnaire comparable to the Federal
Human Capital Survey prior to implementation of the project. To
establish a baseline for cost analysis, each operating unit will be
required to analyze its personnel costs during fiscal years 2005, 2006,
and 2007.
6. Training: The agency and the program areas will provide training
to managers, employees, and human resources staff prior to
implementation of the project and will provide additional training to
managers on the pay-for-performance system prior to the end of the
first performance cycle. (See Section IV, Training.)
7. Implementation: To ensure a smooth implementation, the agency
will emphasize top management support; the development of detailed
operating procedures and implementing directives prior to
implementation; thorough training of managers, employees and human
resources staff; step-by-step implementation planning; adequate backup
systems, particularly in automated personnel and payroll systems; and
sufficient operating resources.
8. Program Evaluation: The Department and FSIS will arrange for
periodic evaluation of the project under an OPM-approved evaluation
plan. (See Section VIII, Project Evaluation.) The evaluation will be
designed to determine whether the innovations are achieving project
goals and objectives and are operating within acceptable cost limits.
(See Section IX, Costs.)
III. Personnel System Changes
A. Pay Banding Classification and Pay System
1. Establishment of Career Paths and Pay Bands
In coordination with OPM, FSIS may establish, and adjust over time,
career paths that group one or more occupational categories together
and provide a common pay banding structure ( i.e., a set of work levels
and rate ranges) for occupations within a given career path. Initially,
FSIS intends to establish four career paths as follows:
(a) Professional, Scientific, and Administrative [AP]: Policy,
staff, line, supervisory, and managerial positions in science,
veterinary medicine, consumer safety, food technology, mathematics,
accounting, and other comparable occupations with a positive education
requirement. Examples of occupational series are 0403-Microbiology,
0510-Accounting, 0696-Consumer Safety, 0701-Veterinary Medical Science,
and 1301-General Physical Science. In addition, this career path will
include policy, staff, line, supervisory, and managerial positions in
such fields as finance, procurement, human resources management, public
information, management and program analysis, compliance investigation,
and other two-grade interval occupations that do not maintain a
positive education requirement. Examples of these occupational series
are 0201-Human Resources Management, 0343-Management and Program
Analysis, 1035-Public Affairs.
(b) Supervisory Inspection [AI]: Supervisory positions that direct
the work of inspectors at an import warehouse, a plant, or in a circuit
of plants within a geographic area. These positions are 1862-
Supervisory Consumer Safety Inspectors.
(c) Scientific and Technical Support [AS]: Line positions,
predominantly in agency laboratories, which support professional and
scientific operations. Examples include 0404-Biological Science
Technician, 1311-Physical Science Technician and similar traditional
one-grade interval technician support occupations in agency
laboratories.
(d) Management Support [AO]: Nonsupervisory and supervisory
clerical and assistant positions that support positions not fitting the
definition of any other career paths. Examples include 203-Human
Resources Assistant, 318-Secretary, 326-Office Automation Assistant,
344-Management Assistant and similar traditional one-grade interval
technician and administrative support occupations.
Each career path will be subdivided into pay bands. Each pay band
will correspond to one or more GS grades. Pay bands provide larger
classification targets that can be defined by shorter, simpler and more
understandable classification standards. In coordination with OPM, FSIS
may establish, and adjust over time, a career path's pay band
structure. Initially, the pay bands within each career path and their
relationship to GS grades will be as follows:
[[Page 26442]]
Table 2.--Sample Pay Bands Under PHHRS
--------------------------------------------------------------------------------------------------------------------------------------------------------
Career path Pay band 1 Pay band 2 Pay band 3 Pay band 4 Pay band 5 Pay band 6
--------------------------------------------------------------------------------------------------------------------------------------------------------
Administrative, Professional, GS-1/4 (Student GS-5/7 Trainee.... GS-9/11 GS-12/13 * Full GS-14 Expert...... GS-15 Senior Expert
and Scientific (AP). Trainee). Intermediate. Performance. Pay Band 5S....... Pay Band 6S
GS-13/14 GS-15 Manager
Supervisor.
Supervisory Inspection (AI).... .................. .................. GS-8/9 Supervisory GS-10/11 Senior
Inspectors. Supervisors.
Scientific & Technical (AS).... GS-1/4 (Aide)..... GS-5/6/7 Entry.... GS-8/9 Independent GS-10/11 Expert &
Supervisory.
Management Support (AO)........ GS-1/4 Clerical GS-5/6/7 Assistant GS-8/9/10 Senior
(Entry). or Clerical or Lead
Supervisor. Assistant, and
Supervisor .
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Also includes supervisory positions where the band-controlling work is actually personally performed non-supervisory work.
The final pay banding architecture will be described in
implementing guidance. FSIS will coordinate changes in career paths or
pay banding structures with OPM. After coordination with OPM, FSIS will
give affected employees advance notice and an opportunity to comment
before effecting a change with respect to career paths or pay banding
structure.
2. Position Classification
Occupational groups will be placed in career paths, pay bands will
replace grades, and FSIS pay band standards will replace OPM position
classification standards. The General Schedule occupational series will
be retained.
Each classification standard will describe the threshold of work
encompassed by each pay band based on general duties and
responsibilities, knowledge, skills, and abilities. FSIS will establish
classification standards in consultation with OPM. Positions must meet
or exceed the threshold to be classified into a pay band. These bases
complement each other at each pay band in a career path and may not be
separated in classifying a position. OPM classification standards will
not be used directly, but may be used indirectly to establish
competency criteria that distinguish pay bands or pay levels within a
key career path.
3. Delegation of Classification Authority
The agency has delegated classification authority to SES and GS-15
executives and managers since July 2004. The delegated classification
authority (DCA) provisions of this project continue this initiative and
increase the number of managers who receive classification authority.
Managers must successfully complete DCA training before classification
authority may be exercised. The delegation of classification authority
will be facilitated by the expansion of an intranet-based Position
Description Library, which will include standard descriptions of all
key positions in all career paths and pay bands. Line managers will
utilize this intranet-based Position Description Library to select or
classify most positions. These changes are intended to simplify and
speed up the classification process, make the process more serviceable
and understandable, improve the effectiveness of classification
decision-making and accountability, and facilitate pay for performance.
Implementing guidance will describe the modified DCA policies and
procedures.
4. Classification Appeals
An employee covered by the FSIS Demonstration Project may appeal
the occupational series, official title, or pay band of his or her
position at any time to the agency, Department or directly to the
Office of Personnel Management consistent with procedures currently
prescribed under 5 CFR part 511, subpart F. Implementing guidance will
describe the classification appeals process.
5. Elimination of Fixed Steps
Employees will be converted from existing 15-grade GS position
classification and pay system established under 5 U.S.C. chapter 51 and
chapter 53, subchapter III, to the new pay banding system. The 10 fixed
steps of each GS grade will not apply to employees participating in the
demonstration project. The fixed-step system operates primarily to
reward longevity. A pay banding pay system is an important element of
any effort to make pay more performance-sensitive. No employee's pay
will be reduced as a result of becoming covered by the demonstration
project. (See section V.A.) However, demonstration project employees
will no longer receive longevity-based, within-grade pay increases at
prescribed intervals. Instead, they will be granted annual performance
increases and bonuses as described in section III.C below.
6. Rate Range
The normal minimum and maximum rates of the rate range for each pay
band will equal the applicable step 1 rate and step 10 rate,
respectively, for the lowest and highest grades, respectively, in the
GS that are included in the pay band. The normal minimum and maximum
rates of each band will be increased at the time of a general pay
increase under 5 U.S.C. 5303 so they equal the new minimum and maximum
rates of the grades corresponding to the band.
The minimum rate of the pay band is extended 5 percent below the
normal minimum for employees with a rating of record below Fully
Successful. Such an employee's rate may fall below the normal pay band
minimum when that minimum increases as a result of a pay band
adjustment, but the employee cannot receive a pay increase because the
employee's rating of record is below Fully Successful, as described in
section III.C.4.
The maximum rate of each pay band is extended 5 percent above the
normal maximum for all employees with a rating of record at the highest
level (currently called ``Outstanding'' in FSIS). This feature will
help to ensure that the range of available pay rates will be adequate
to recognize truly outstanding performance. The upper range extension
is reserved for employees with an Outstanding rating. If an employee in
the upper range extension is rated below the
[[Page 26443]]
Outstanding level, special provisions apply, as described in section
III.A.11.
7. Locality Pay
Locality-based comparability payments under 5 U.S.C. 5304 will be
paid on top of the rate of basic pay in the same manner as those
payments apply to GS employees (except as otherwise provided in this
plan). Staffing supplements may apply as described in section III.A.12.
When a locality-based comparability payment established under 5 U.S.C.
5304 is increased, a demonstration project employee whose most recent
rating of record is Fully Successful or higher is entitled to the
increased locality payment.
A demonstration project employee whose most recent rating of record
is below Fully Successful is entitled to the increased locality
payment, but his or her underlying rate of basic pay will be reduced in
a manner that ensures the employee's total rate of pay does not
increase. This reduction is necessary to ensure, in an administratively
feasible way, that an employee rated less than Fully Successful will
not receive a pay increase. It does not constitute a reduction in pay
for purposes of applying the adverse action procedures in chapter 75 of
title 5, United States Code. (Exception: An employee's rate of basic
pay may not be reduced under this paragraph to the extent that the
reduction would cause an employee's rate to fall more than 5 percent
below the normal range minimum.)
A locality rate cap 5 percent higher than the normal EX-IV cap is
established to accommodate those Outstanding performers in the 5
percent upper rate range extension. This higher cap will apply only to
employees receiving a rate within the upper range extension. If the
locality rate for an employee at the normal band maximum is affected by
the EX-IV cap, resulting in an ``effective locality pay percentage''
that is less than the regular locality pay percentage, the locality
rate for an employee in the upper rate range extension of the same band
will be computed using that same effective locality pay percentage.
(For example, if the regular locality pay percentage is 30 percent, but
the EX-IV cap causes the amount of locality pay actually received by an
employee at the normal band maximum to be 20 percent, that effective
locality pay percentage of 20 percent would be used to compute locality
pay for an employee in the upper range extension of the same band.)
8. Rate of Basic Pay Upon Initial Appointment
Upon appointment to a demonstration project position under
Delegated Examining, Direct-Hire Authorization or other authority
primarily designed for initial entry into the Federal service (e.g.,
Veterans Employment Opportunity Act, 30% Disabled Veteran Appointment),
an appointee's rate of basic pay may be set at any rate within the
normal pay band range. In exercising this flexibility, FSIS will
consider the appointee's qualifications, competing job offers, FSIS's
need for the appointee's talents, the appointee's potential
contributions to FSIS mission accomplishment, and the rates received by
on-board employees. This flexibility will allow FSIS to compete more
effectively with private industry for the best talent available.
Implementing guidance will provide managers with assistance in setting
pay to assure fair and equitable treatment of a diverse workforce.
9. Rate of Basic Pay Upon Promotion
Upon promotion to a higher pay band within a career path or to a
pay band in another career path with a higher maximum rate, an
employee's rate of basic pay will be set at a rate within the higher
pay band that provides a pay increase of 8 percent, unless a greater
increase is necessary to set pay at the normal range minimum. (See
section III.E.3 for definition of ``promotion.'') In consultation with
OPM, FSIS may establish exceptions to this policy to deal with
employees receiving a retained rate, employees who are re-promoted
shortly after demotion, employees with exceptional performance
warranting a larger increase with higher-management approval, etc. FSIS
may adopt, in consultation with OPM, policies providing a promotion-
equivalent increase in appropriate circumstances to a Federal employee
outside the demonstration project who accepts a position covered by the
demonstration project.
10. Rate of Basic Pay in Noncompetitive Lateral Actions
Upon non-competitive lateral movement (e.g., via transfer or
reassignment, not conversion of position) to a demonstration project
position from another Federal position, an employee's pay rate
(including any locality payment or staffing supplement) will be set at
an amount that is equal (after any geographic pay conversion) to the
employee's existing pay rate (including any locality payment or
equivalent basic pay supplement), subject to the applicable normal
range maximum. For such an employee moving from a position outside the
demonstration project, FSIS may provide an increase in the rate of
basic pay immediately after movement to reflect the prorated value of
the employee's next scheduled within-grade increase under the former
pay system, consistent with the requirements in section V.A.
11. Other Pay Administration Provisions
Annual performance-based pay increases described in section III.C.3
will be made to the rate of basic pay. These increases are scheduled to
be made on the same date that the annual rate range adjustments
normally take effect--i.e., the first day of the first pay period
beginning on or after January 1. To be eligible for an annual
performance pay increase an employee must have a rating of record of
Fully Successful or higher.
Annual performance awards described in section III.C.5. provide for
lump-sum cash payments recognizing performance and will be made at the
same time as the annual performance pay increase. To be eligible for a
performance award, an employee must have a rating of record of Fully
Successful or higher.
Developmental pay increases described in Section III.D may be paid
no more than once during any 52-week period, following the mid-year
progress review.
The grade retention provisions in 5 U.S.C. 5362 and 5 CFR part 536
are not applicable (i.e., no pay band retention). The pay retention
rules in 5 U.S.C. 5363 and 5 CFR part 536 apply to demonstration
project employees, subject to the following exceptions:
(1) An employee with a rating of record below Fully Successful may
not receive an increase in his or her retained rate under the 50-
percent adjustment rule in 5 U.S.C. 5363(b)(2)(B);
(2) The cap on retained rates is equal to the rate for level IV of
the Executive Schedule plus 5 percent (instead of the EX-IV cap
established in 5 CFR 536.306) in order to accommodate the upper range
extension;
(3) An employee in the upper range extension who is rated below
Outstanding will be converted to a retained rate before processing any
other pay action; and
(4) The range maximum rate used in computing retained rate
adjustments under the 50-percent adjustment rule will be the maximum
rate of the highest applicable rate range (including any applicable
locality payment or staffing
[[Page 26444]]
supplement) taking into consideration an employee's rating of record.
For retained rate employees rated Outstanding, the increase is 50
percent of the dollar change in the applicable adjusted rate for the
upper range extension maximum. (Note that an employee rated Outstanding
must have a retained rate in excess of the upper range extension
maximum adjusted rate, since he or she would otherwise be converted to
a rate within that range extension.) For retained rate employees rated
below Outstanding, the increase is 50 percent of the dollar change in
the applicable adjusted rate for the normal band maximum.
If an employee is receiving a retained rate that is less than the
applicable adjusted maximum rate (including any applicable locality
payment or staffing supplement) for the upper range extension for the
employee's band, and if that employee receives a rating of record of
Outstanding, the employee's retained rate will be terminated and
converted to an equal adjusted rate (base rate in upper range extension
plus applicable locality payment or staffing supplement). This
conversion must be processed before any other pay adjustment.
For a retained rate employee with a rating of record of
Outstanding, if a retained rate increase provided at the time of a
range adjustment results in the retained rate falling below the
applicable adjusted rate for the upper range extension maximum, the
employee's retained rate will be terminated, and the employee's pay
will be set at the maximum rate of the upper range extension.
For a retained rate employee with a rating of record of Fully
Successful or Superior, if a retained rate adjustment provided at the
time of a range adjustment results in the retained rate falling below
the applicable adjusted rate for the normal band maximum, the
employee's retained rate will be terminated, and the employee's pay
will be set at the normal band maximum rate.
For a retained rate employee with a rating of record below Fully
Successful, the retained rate is frozen and not subject to adjustment.
When such an employee's retained rate falls below the applicable
adjusted rate for the normal band maximum, the employee's retained rate
will be terminated, and the employee's pay will be set at an adjusted
rate equal to the retained rate (i.e., the rate is not set at the range
maximum).
As required by 5 CFR 536.304(a)(2) and 536.305(a)(2), any general
pay adjustment, including a retained rate adjustment as described in
the preceding paragraphs, must be processed before any other
simultaneous pay action (such as a geographic pay conversion).
When applicable, the saved pay rules in 5 U.S.C. 3594 and 5 CFR
359.705 for former SES members continue to apply to demonstration
project employees, except that (1) an employee with a rating of record
below Fully Successful may not receive an increase in his or her saved
rate under 5 U.S.C. 3594(c)(2); and (2) the 50-percent adjustment rule
must be applied in the same manner as it is applied for a retained rate
under 5 U.S.C. 5363, subject to the modifications described in the
preceding paragraphs. The rules regarding termination of a saved rate
when it falls below the applicable adjusted maximum rate must be
parallel to those governing termination of a retained rate under 5
U.S.C. 5363, subject to the modifications described in the preceding
paragraphs.
FSIS may adopt supplemental pay administration policies governing
matters not specifically addressed in this plan, subject to any OPM
guidance. In addressing geographic conversions and simultaneous pay
actions, such rules must be consistent with 5 CFR 531.205 and 5 CFR
531.206, respectively.
12. Staffing Supplements
An employee who is assigned to an occupational series and
geographic area covered by an OPM-established special rates schedule,
and who meets any other applicable coverage requirements, will be
entitled to a staffing supplement if the maximum adjusted rate for a
covered position in the GS grades corresponding to the employee's band
is a special rate that exceeds the applicable maximum GS locality rate.
The staffing supplement is added on top of the rate of basic pay in the
same manner as locality pay. An employee will receive the higher of the
applicable locality payment or staffing supplement.
For employees being converted into the demonstration project, the
employee's total pay immediately after conversion will be the same as
immediately before, but a portion of the total will be in the form of a
staffing supplement. Adverse action and pay retention provisions will
not apply to the conversion process as there will be no change in the
total salary rate. The staffing supplement is calculated as described
below.
Upon conversion, the demonstration base rate will be established by
dividing the employee's former GS adjusted rate (the higher of special
rate or locality rate) by the staffing factor. The staffing factor will
be determined by dividing the maximum special rate for the banded
grades by the GS base rate corresponding to that special rate (step 10
GS base rate for the same grade as the special rate). The employee's
demonstration staffing supplement is derived by multiplying the
demonstration base rate by the staffing factor minus one. Therefore,
the employee's final demonstration special staffing rate equals the
demonstration base rate plus the special staffing supplement; this
amount will equal the employee's former GS adjusted rate.
Simplified, the formula is this:
Staffing factor=(Maximum special rate for banded grades)/(GS base rate
corresponding to that special rate)
Demonstration base rate=(Former GS adjusted rate [special or locality
rate])/ (Staffing factor)
Staffing supplement=demonstration base rate x (staffing factor-1)
Salary upon conversion=demonstration base rate + staffing supplement
[sum will equal existing rate]
If a special rate employee is converted to a band where the maximum
GS adjusted rate for the banded grades is a locality rate, when the
employee is converted into the demonstration project, the demonstration
base rate is derived by dividing the employee's former special rate by
the applicable locality pay factor (for example, in the Washington-
Baltimore area, the locality pay factor is 1.2089 in 2008). The
employee's demonstration locality-adjusted rate will equal the
employee's former GS adjusted rate.
Any GS or special rate schedule adjustment will require
recomputation of the staffing supplement. Employees receiving a
staffing supplement remain entitled to an underlying locality rate,
which may over time supersede the need for a staffing supplement. If
OPM discontinues or decreases a special rate schedule, pay retention
provisions will be applied, as appropriate. Upon geographic movement,
an employee who receives the special staffing supplement will have his
or her entitlement to a staffing supplement redetermined; any resulting
reduction in the supplement will not be considered an adverse action or
a basis for pay retention.
When a staffing supplement is increased, a demonstration project
employee whose rating of record is below Fully Successful is entitled
to the increased supplement, but his or her underlying rate of basic
pay will be reduced in a manner that ensures the employee's total rate
of pay does not increase. Such a reduction does not
[[Page 26445]]
constitute a reduction in pay for purposes of applying the adverse
action procedures in chapter 75 of title 5, United States Code.
(Exception: An employee's rate of basic pay may not be reduced under
this paragraph to the extent that the reduction would cause an
employee's rate to fall more than 5 percent below the normal range
minimum.)
Established salary including the staffing supplement will be
considered basic pay for the same purposes as a special rate under 5
CFR 530.308--e.g., for purposes of retirement, life insurance, premium
pay, severance pay, and advances in pay. It will also be used to
compute workers' compensation payments and lump-sum payments for
accrued and accumulated annual leave.
Adjusted rates that include a staffing supplement are subject to an
Executive Schedule Level IV (EX-IV) cap, except that an adjusted rate
cap 5 percent higher than the EX-IV rate is established exclusively for
Outstanding-rated employees in the upper range extension. If the
adjusted rate for an employee at the normal band maximum is affected by
the EX-IV cap, resulting in an ``effective staffing supplement
percentage'' that is less than the regular staffing supplement
percentage, the adjusted rate for an employee in the upper rate range
extension of the same band and in the same staffing supplement category
will be computed using that same effective staffing supplement
percentage. (For example, if the regular staffing supplement percentage
is 35 percent, but the EX-IV cap causes the amount of the staffing
supplement actually received by an employee at the normal band maximum
to be 20 percent, that effective staffing supplement percentage of 20
percent would be used to compute the staffing supplement for an
employee in the upper range extension of the same band.)
OPM may approve staffing supplements for categories of employees
within the demonstration project who are not in approved special rate
categories for GS employees, consistent with the provisions in 5 U.S.C.
5305(a) and (b).
13. Status as GS Employees
Notwithstanding the waiver of laws governing the GS classification
and pay system, demonstration project employees will be considered to
be GS employees in applying other laws, regulations, and policies,
except as otherwise provided in this plan. For example, demonstration
project employees will remain eligible for locality pay under 5 U.S.C.
5304 (subject to exceptions described in this plan), hazardous duty
differentials under 5 U.S.C. 5545(d), and recruitment, relocation, and
retention incentives under 5 U.S.C. 5753-5754. Demonstration project
employees will be covered by the regulations in 5 CFR part 300, subpart
F, except that ``grade'' will be replaced with ``pay band.'' (See
section III.E.3. for a 52-week time-in-band requirement.) However,
project employees will not be covered by the supervisory differential
provision in 5 U.S.C. 5755.
A demonstration project employee who converts from the project
position to a GS position without a break in service will be considered
a GS employee for the purpose of applying the GS promotion rule under 5
U.S.C. 5334(b). (See section V.B.)
B. Performance Appraisal System
FSIS will use its current performance management program under the
Department of Agriculture appraisal system that has been approved by
OPM, consistent with chapter 43 of title 5, United States Code.
Throughout the duration of the demonstration project, the effectiveness
of performance management within the project will be monitored by
examining metrics and assessments that will be included in the
demonstration project evaluation plan.
1. Program Requirements
The FSIS performance appraisal program requires written performance
plans for each covered employee containing the employee's performance
elements and standards. The performance plan links the performance
elements and standards for individual employees to the organization's
strategic goals and objectives. Ongoing feedback and dialogue between
employees and their supervisors regarding performance is required. In
addition, the program provides for, at a minimum, one midyear progress
review.
The FSIS appraisal program, including its performance levels and
standards, provides for making meaningful distinctions in performance.
The program currently uses a five-level summary rating pattern to
summarize performance and three levels to appraise performance at the
element level. Its summary level pattern under 5 CFR 430.208(d) uses
Pattern H with Levels 1, 2, 3, 4, and 5, which FSIS has labeled
Unacceptable, Marginal, Fully Successful, Superior, and Outstanding,
respectively. Employees must be covered by their performance plan for
at least 90 days before they can be assigned a rating of record.
Supervisors and managers apply the appraisal program in a way that
makes appropriate differentiations in performance. These
differentiations reflect overall organizational performance. Employees
receive a written performance appraisal (i.e., a rating of record)
annually. Forced distributions of ratings are prohibited. Each annual
appraisal period will begin on October 1 and end on the following
September 30. Performance appraisals will be completed in a timely
manner to support pay decisions in accordance with section III.C.
Additional guidance on the performance appraisal program is
provided in current FSIS directives. Performance appraisal is an
evolutionary process, and changes may be made during the course of the
demonstration project based on findings from our ongoing evaluations
and reviews. Any changes will be communicated to affected employees,
and they will be given a chance to comment before FSIS implements the
changes.
2. Supervisory Accountability
Supervisors are responsible for providing appropriate consequences
for employee performance by addressing poor performance and recognizing
exceptional performance. The performance plans for supervisors and
managers include the degree to which supervisors and managers plan,
assess, monitor, develop, correct, rate, and reward subordinate
employees' performance. It is recognized that specific training must be
provided to prepare supervisors and managers to exercise these
responsibilities. FSIS understands that this demonstration project will
heighten the need for continuing supervisory training to support the
accurate and realistic appraisal of performance.
3. Reconsideration of Ratings
To support fairness and transparency for the program and its
consequences, employees have an opportunity to request reconsideration
of a rating of record by a management official other than the rating
official. Such reconsiderations must be initiated no more than 15 days
after the official rating of record is assigned, consistent with the
applicable administrative grievance policy. If the reconsideration of
the appraisal results in a different rating of record, the revised
rating of record will become the basis for the employee's pay
increase(s) in accordance with section III.C. If the adjustment occurs
after all pay deliberations have been finalized, it
[[Page 26446]]
does not result in a recalculation of other employees' pay increases.
If, after an opportunity to improve, an employee's performance is
still not satisfactory, the Rating Official will give the employee a
rating of Level 1, Unacceptable, and must take action to reassign or
remove the employee, or place the employee in a lower pay band, in
accordance with performance action provisions in law and regulation.
C. Performance-based Pay Increases and Awards
1. Performance Shares
FSIS will establish rating/share patterns for each pay pool--that
is, the relationship between ratings of record and numbers of shares. A
share mechanism will be used (1) to ensure that employees with higher
ratings of record receive greater pay increases than employees with
relatively lower ratings, and (2) to control costs without resorting to
a forced distribution of ratings, which is prohibited.
FSIS may adjust rating/share patterns over time after coordination
with OPM, and after giving affected employees advance notice. A change
in the rating/share pattern may be applied in computing performance
increases based on an appraisal period only if it takes effect at least
120 days before the end of that appraisal period.
Each employee will be assigned a certain number of shares, based on
his or her rating or record. Initially, the number of shares for each
rating level will be as follows: 9 shares are assigned to the
Outstanding rating; 6 shares to the Superior rating; and 4 shares to
the Fully Successful rating. No shares may be assigned to any rating of
record below Fully Successful, since no pay increase is payable to
employees with such a rating of record.
After the ratings of record and shares are assigned to employees
the value of a single share can be calculated. The value of each
performance share will be expressed as a percentage of the rate of
basic pay. The agency will provide training to all project participants
to assure fair, accurate performance ratings and equitable performance
payouts.
2. Performance Pay Pools
Funds that otherwise would be spent on the annual GS pay
adjustment, within-grade increases (WGI's), and quality step increases
(QSI's) for demonstration project employees will instead be placed into
a pay pool, which will be used to fund annual performance increases.
Unlike GS employees, participating employees whose most recent rating
of record is below Fully Successful will not receive any increase in
their rate of basic pay.
Participating programs will establish pay pools for allocating
performance-based pay increases. FSIS will determine which
participating employees are covered by any pay pool and determine the
dollar value of each pay pool. In setting the value of the pay pool,
FSIS will initially allocate an amount for performance-based pay
increases equal to the estimated value of the WGI's, QSI's and the
annual GS pay adjustments that otherwise would have been paid to
participating employees. In computing the estimated value of WGI's, and
QSI's, FSIS may use Governmentwide or agency historical averages.
3. Performance-based Pay Increases
FSIS will determine the value of one performance share, expressed
as a percentage of the employee's rate of basic pay, based on the value
of the pay pool and the distribution of shares among pay pool
employees. An individual employee's performance payout is determined by
multiplying the determined percentage value of a performance share by
the number of shares assigned to the employee. On the first day of the
first pay period beginning on or after January 1 of each year, this
amount will be paid as an increase in the employee's rate of basic pay,
but only to the extent that it does not cause the employee's rate to
exceed the applicable maximum of the employee's rate range.
Notwithstanding the preceding sentence, employees in the upper range
extension rated below the highest rating level are subject to special
rules as described in sections III.A.6 and III.A.11. Any portion of an
employee's performance pay increase amount that cannot be delivered as
a basic pay increase will be paid out as a lump-sum performance bonus
(with no charge to the pay pool). Such a lump-sum payment is not basic
pay for any purpose and is not a cash award under chapter 45 of title
5, United States Code.
An employee with a rating of record of Fully Successful or higher
may not receive a performance payout that is less than the percentage
value of any simultaneous rate range adjustment, except for (1) an
employee receiving a retained rate and (2) an employee in the upper
range extension with a rating of record below Outstanding (Level 5) who
is converted to a retained rate (as provided in section III.A.11.).
This guaranteed amount will be used in place of any lower performance
payout resulting from the share methodology. Any additional costs of
using the guaranteed amount will be funded outside the pay pool.
Otherwise, the guaranteed amount is applied in the same manner as the
regular performance payout.
An employee who does not have a rating of record for the appraisal
period most recently completed will be treated the same as employees in
the same pay pool who received the modal rating for that period,
subject to FSIS proration policies.
FSIS may establish policies on prorating the performance-based pay
increases and/or lump-sum payments for an employee who, during the
period between annual pay adjustments, was (1) hired or promoted, (2)
in leave-without-pay status, (3) on a part-time work schedule, or (4)
in other circumstances that make proration appropriate. Such proration
policies will provide each eligible employee with the full percentage
adjustment used to adjust base rate ranges (if any) and will prorate
any additional amount of performance pay increase that would be
applicable to the employee but for the proration requirement.
If any employee's rating of record that is the basis for a
performance payout is retroactively revised (after the regular
effective date of performance payouts) through a reconsideration or
grievance process, the employee's performance payout must be
retroactively recomputed using the share value as originally
determined. Any such retroactive corrections are not funded out of the
pay pool and do not affect the performance payouts provided to other
employees in the pay pool. In setting the size of a future pay pool,
management will take into account past and projected corrections.
Special provision for employees receiving a retained rate: An
employee receiving a retained rate under 5 U.S.C. 5363 or 5 U.S.C. 3594
is not eligible for a basic pay increase except in conjunction with (1)
a rate range adjustment as described in section III.A.11 or (2) a
geographic conversion under 5 CFR.359.705(e) or 536.303(b), as
applicable. At the discretion of an authorized agency official, a
retained rate employee may receive the same lump-sum payment payable to
an employee in the same pay pool who is at the applicable range maximum
and who has the same rating of record and number of shares.
Special provisions for employees returning to duty after a period
of service in the uniformed services or in receipt of workers'
compensation benefits: Special pay-setting provisions apply to
employees who do not have a rating of record to support a pay
adjustment but who are returning to
[[Page 26447]]
duty status after a period of leave-without-pay or separation during
which the employee (1) was serving in the uniformed services (as
defined in 38 U.S.C. 4303 and 5 CFR 353.102) with legal restoration
rights (e.g., 38 U.S.C. 4316), or (2) was receiving workers'
compensation benefits under 5 U.S.C. chapter 81, subchapter I. In these
cases, FSIS will determine the employee's prospective rate of basic pay
upon return to duty by making performance-based pay increases for the
intervening period based on the modal rating of record for employees in
the same pay pool. The performance pay increases during the intervening
period may not be prorated based on periods covered by this provision.
In addition, a performance pay increase that is effective after the
employee's return to duty may not be prorated based on periods covered
by this provision. A lump-sum payment for a period including actual
service performed after the employee's return to duty must be prorated
(based on service covered by this provision) under the same agency
proration policies that apply generally to periods of leave without
pay.
4. Employees Who Cannot Receive a Performance Pay Increase
Employees with a rating of record below Fully Successful are
prohibited from receiving a performance payout. When an employee does
not receive a performance pay increase because of performance below
Fully Successful, his or her pay rate may fall below the normal minimum
rate of the pay band, since that range minimum may be increasing.
However, in no case may an employee's rate of basic pay be set more
than 5 percent below the normal range minimum.
If FSIS later chooses to give such an employee a new rating of
record of Fully Successful or higher before the end of the next
appraisal period, the employee is entitled to an increase effective on
the first day of the first pay period beginning on or after the date
the new rating of record is final. The increase must be the same dollar
amount as the increase the employee would have received if he or she
had been rated Fully Successful at the time the increase was initially
denied.
Each employee who does not receive an increase in basic pay because
his or her performance is less than Fully Successful will be entitled
to be notified promptly in writing of that fact. At the same time, the
employee must be informed in writing of the right to request that the
agency reconsider its determination, under the same procedures
prescribed by OPM regarding the determination not to provide a within-
grade increase under 5 U.S.C. 5335(c). The Merit Systems Protection
Board will process any appeals under this section in the same manner
that it processes appeals under 5 U.S.C. 5335(c).
See section III.A.7 and section III.A.12 regarding the
recomputation of an employee's rate of basic pay to prevent a pay
increase resulting from an increase in the applicable locality payment
or staffing supplement.
5. Performance Awards
Performance awards may be granted to any employee with a rating of
record at Level 3 (Fully Successful) or higher and are given at the end
of the performance year in conjunction with decisions on performance
pay increases. FSIS will adopt supplemental award administration
policies not specifically covered under the plan to improve
implementation of existing authorities prescribed under chapter 45,
title 5, United States Code. These performance awards are separate from
performance pay increases.
D. Developmental Pay Increases
Employees in developmental positions (i.e., positions with
promotion potential to a higher pay band) may receive additional pay
increases (in addition to the annual performance pay increase) as they
acquire the competencies, skills and knowledge necessary to advance to
the full performance level of their position. An employee in a
developmental position may be awarded a pay increase within his or her
pay band that ranges up to 7 percent of basic pay to recognize the
faster progression that can occur in a developmental position.
Employees must be performing at the Fully Successful level or higher to
be eligible for a developmental pay increase. Developmental pay
increases may be paid no more than once during a 52-week period and
following the mid-year progress review in accordance with implementing
guidance. Developmental pay increases must be approved by the program's
Assistant Administrator or his or her designee to ensure equity and
accountability. The funds previously used for career promotions for the
GS grade levels will initially be used to fund the developmental pay
increases in the first fiscal year of the program's implementation. In
all future fiscal years, FSIS will allocate a fixed amount of funds
within the annual appropriation, and these funds will go into a pool
for distribution to each FSIS program area to cover developmental pay
increases.
E. Staffing
1. Minimum Qualification Requirements
Application of the OPM Operating Manual: Qualification Standards
for General Schedule Positions is simplified by allowing a candidate to
qualify for a specific pay band if the candidate meets (or exceeds) the
requirements for the lowest grade included in that specific pay band.
For example, a candidate for a 403-Microbiologist position assigned to
Pay Band 2 (GS-5 through GS-7) need only meet the qualification
requirements for a GS-0403 Microbiologist position at the GS-5 level.
For FSIS demonstration project employees and employees of other
Federal agencies who are in sufficiently similar pay banding systems
(as described in FSIS implementing policies), the common OPM
requirement of 1 year of experience ``at the next lower grade in the
normal line of progression for the occupation'' is changed to ``at the
next lower pay band in the normal line of progression for the
occupation.''
2. Flexible Pay Setting for New Hires
Upon appointment to a demonstration project position under
Delegated Examining, Direct-Hire Authorization or other authority
primarily designed for initial entry into the Federal service (e.g.,
Veterans Employment Opportunity Act, 30% Disabled Veteran Appointment),
an appointee's pay rate may be set at any rate within the normal pay
band range. In exercising this flexibility, FSIS will consider the
appointee's qualifications, competing job offers, the agency's need for
the appointee's talents, the availability of other candidates, the
appointee's potential contributions to FSIS mission accomplishment, and
the rates received by on-board employees. This flexibility will allow
FSIS to compete more effectively with private industry for the best
talent available. Implementing guidance will provide managers with
assistance in setting pay to assure fair and equitable treatment of a
diverse workforce.
3. Promotions
A promotion is a change to (1) a higher pay band in the same career
path or (2) a pay band in another career path with a higher maximum
rate of basic pay. To be eligible for promotion, an employee must have
a current performance rating of Fully Successful or higher. The time-
in-band requirement for promotion eligibility is 52 weeks, with one
exception: An employee may be promoted from Pay Band 1 to Pay
[[Page 26448]]
Band 2 in the Management Support Career Path or in the Scientific and
Technical Support Career Path without time restriction. (See section
III.A.9. for pay setting upon promotion.) When employees are
competitively selected for a position with promotion potential, and are
subsequently moved to a higher pay band in their career path, the
action is processed as a non-competitive pay band promotion until the
full performance level of the position is reached.
F. Reduction in Force
If, during the life of the demonstration project, FSIS enters into
a reduction in force (RIF), the RIF will be conducted in accordance
with 5 U.S.C. 1302 and 3502 and 5 CFR part 351, except as follows:
(a) Each of the career paths in each FSIS local commuting area will
constitute separate competitive areas (i.e., separate from the other
career paths, and separate from the competitive areas of other FSIS
employees);
(b) FSIS will establish competitive levels consisting of all
positions in a competitive area which are in the same pay band and
classification series, and which are similar enough in duties,
qualification requirements, pay schedules, and working conditions so
that the incumbent of one position may be reassigned to any of the
other positions in the level without undue interruption. Each
demonstration project competitive level will become a Retention List
for purposes of competition when employees are released from their
competitive levels, displaced by higher-standing employees, or placed
during the exercise of assignment rights.
(c) Assignment rights will be modified by substituting ``one pay
band'' for ``three grades'' and ``two pay bands'' for ``five grades.''
(d) FSIS will use retention standing when it chooses to offer
vacant positions within the meaning of 5 CFR 351.704.
Prior to conducting a RIF, FSIS will issue and implement a policy
in accordance with 5 CFR part 330, subpart B, except that the
establishment and operation of a reemployment priority list (RPL) will
be designed to assist current FSIS competitive service demonstration
project employees who will be separated as a result of a RIF and,
subsequently, former FSIS competitive service demonstration project
employees who have been separated as a result of a RIF, or who have
fully recovered from a compensable injury after more than 1 year, in
their efforts to be reemployed at FSIS, by affording them reemployment
priority over certain outside job applicants for FSIS competitive
service demonstration project vacancies.
FSIS will develop and adopt supplemental RIF administration
procedures to augment the RIF policies stipulated by this plan.
IV. Training
Training will be provided to all participating employees,
supervisors, and managers before the project is launched and throughout
the life of the project. It is important that employees perceive the
performance management program as fair and transparent; therefore,
supervisors and managers will be trained extensively in setting and
communicating performance expectations; monitoring performance and
providing timely feedback; developing employee performance and
addressing poor performance; rating employees' performance based on
expectations; and involving employees in the development and
implementation of the performance appraisal program. Supervisors and
managers will be held accountable for the effective management of the
performance of employees they supervise through performance
expectations set for and appraisals made of their own performance in
this regard.
All employees will be trained in the performance appraisal process
and the pay adjustment mechanism. Various types of training are being
considered, including video conferencing, on-line tutorials,
simulation, and train-the-trainer concepts.
V. Conversion
A. Conversion to the Demonstration Project
1. Only General Schedule (pay plan codes GS and GM) employees who
are not in a bargaining unit will be converted to this project
(excludes non-bargaining unit food inspection (GS-1863) employees
appointed under Schedule A 213.3113(1)(3) and Schedule C employees).
Employees whose positions become covered by the demonstration project
will convert into the career path and pay band covering the
occupational series and grade of their position of record. Employees
will convert to the demonstration project with no change in their total
rate of pay (including basic pay, plus any applicable locality payment,
special rate supplement or staffing supplement). Special conversion
rules apply to special rate employees as described in section III.A.12,
Staffing Supplements. Any simultaneous pay action that is scheduled to
take effect under the GS pay system on the date of conversion must be
processed before processing the conversion to the pay banding system.
FSIS implementing policies will provide procedures for converting an
employee on grade retention under 5 U.S.C. 5362 or receiving a retained
rate under 5 U.S.C. 5363 or a saved rate under 5 U.S.C. 3594 to the
demonstration project.
2. Immediately after conversion, eligible employees will receive an
increase in basic pay reflecting the prorated value of the next
scheduled within-grade increase (WGI). The prorated value is determined
by calculating the portion of the time in step employees have completed
towards the waiting period for their next WGI. This WGI ``buy-in''
adjustment will not be paid to (1) employees who are at the step 10
rate for their grade immediately before conversion to the demonstration
project, (2) employees who are receiving a retained rate of pay under 5
U.S.C. 5363 or saved rate under 5 U.S.C. 3594 immediately before
conversion to the demonstration project, or (3) employees whose rating
of record is below Fully Successful.
3. Adverse action provisions under 5 U.S.C. chapter 75, subchapter
II, do not apply to reductions in pay upon conversion into the
demonstration project as long as the employee's total rate of pay
(including basic pay, plus any applicable locality payment, special
rate supplement) is not reduced upon conversion.
4. The first performance-based pay increase under the project's pay
adjustment mechanism will be effective on the first day of the first
pay period beginning on or after January 1, 2010.
5. For employees who enter the demonstration project by lateral
reassignment or transfer (i.e., not by conversion of position), FSIS
may apply parallel pay conversion rules, including rules for providing
a prorated adjustment reflecting time accrued toward a GS within-grade
increase or similar within-range adjustment under another pay system.
If conversion into the demonstration project is accompanied by a
geographic move, the employee's pay entitlements under the former pay
system in the new geographic area must be determined before performing
the pay conversion.
B. Conversion to the General Schedule
FSIS implementing guidance will provide procedures for converting
an employee's pay band and pay rate to a GS-equivalent grade and rate
of pay if the employee moves out of the demonstration project to a GS
position.
[[Page 26449]]
The converted GS-equivalent grade and rate of pay will be determined
before any geographic move, promotion, or other simultaneous action
that occurs simultaneously with conversion back to the GS system. The
new employing organization must use the converted GS-equivalent grade
and rate of pay in applying various pay administration rules that
govern how pay is set in the GS position (e.g., rules for promotion and
highest previous rate under 5 CFR part 531, subpart B, and pay
retention under 5 CFR part 536). The converted GS rate will not be
adjusted to match a step rate before applying those rules. The
converted GS grade and rate of pay are deemed to have been in effect at
the time the employee left the demonstration project pay banding
system. The rules for determining the converted GS grade for pay
administration purposes do not apply to the determination of an
employee's GS-equivalent grade for other purposes, such as reduction-
in-force or adverse action. FSIS will perform the computations for
employees who remain within FSIS and USDA. FSIS may perform the
computations, as a courtesy, for employees who move to other Federal
agencies. At a minimum, FSIS will provide a copy of the conversion
procedures to gaining Federal agencies for their use. If an employee
moves out of the demonstration project to a non-GS system, the
employee's pay will be set under the pay-setting rules governing that
system.
VI. Project Modification
Demonstration projects require modification from time to time as
experience is gained, results are analyzed, and conclusions are reached
on how the system is working. FSIS may modify and adjust features and
elements of this project plan over time. FSIS will coordinate such
modifications with OPM and gain its approval prior to implementing the
modification. Depending on the nature and extent of the modification,
OPM may require that the modification be published as a notice in the
Federal Register.
VII. Project Duration
The initial implementation period for the demonstration project
will be 5 years. However, with OPM's concurrence, the project may be
extended for additional testing or terminated before the expiration of
the 5-year period.
VIII. Project Evaluation
Chapter 47 of title 5, United States Code, requires an evaluation
of the results of the demonstration project. FSIS, in coordination with
USDA and OPM, will develop a plan to evaluate the demonstration project
to determine the extent to which the pay increases paid to
participating employees reflect meaningful distinctions among their
levels of performance and the extent to which the project is achieving
its other stated goals. Workforce data will be analyzed to make this
assessment. Key features of successful performance-based pay systems,
including leadership commitment, communication, stakeholder
involvement, training, planning, mission alignment, and the rewarding
of performance, will be assessed to determine the effectiveness of the
demonstration project and ensure compliance with stated project goals.
The evaluation will address the extent to which the project has
incorporated the elements required by section 1126 of Public Law 108-
136 (5 U.S.C. 4701 note). In addition, the project will be examined
during each phase of the evaluation to assess that costs are being
managed effectively. Moreover, cost discipline will be examined during
each phase of the evaluation to ensure spending remains within
acceptable limits. Finally, employee feedback will be sought through
surveys, interviews, and focus groups to assess employee perceptions of
the fairness and integrity of the performance appraisal and pay
adjustment processes.
IX. Costs
A. Buy-in Costs
Upon conversion to the demonstration system many employees will
receive an increase in basic pay for the prorated time in grade towards
their next within-grade increase. However, these costs will be offset
by the elimination of within-grade step increases that otherwise would
have occurred.
B. Recurring Costs
All funding will be provided through the organization's budget.
Each project program area will maintain compensation during the project
at the level it would have reached under the current system. No
additional funding will be requested specifically for this project; all
costs will be charged to available funds through existing
appropriations. To ensure appropriate carryover of costs from pre-
project to project years, a base assessment will be made using 3 base
years: Fiscal Years 2005, 2006, and 2007. For example, data associated
with average annual salary, pay increases and promotions, turnover, and
other relevant data will be collected to ensure a thorough analysis of
costs which are impacted by pay banding. Budget discipline will be
required and achieved by imposing specific funding principles. Finally,
both longitudinal and site comparisons will be used to ensure that
spending remains within acceptable limits.
X. Waiver of Laws and Regulations Required
A. Title 5, United States Code
Chapter 35, section 3594: Saved pay for former members of the
Senior Executive Service (only to the extent necessary to (1) bar
employees with a rating of record lower than Fully Successful from
receiving saved rate increases under 5 U.S.C. 3594(c)(2); (2) provide a
saved rate that is less than the maximum rate (including any locality
adjustment or staffing supplement) of the upper range extension for an
employee who receives a rating of record of Outstanding will be
terminated and converted to an equal adjusted rate; (3) provide the
range maximum rate used to compute saved rate adjustments is the normal
range maximum rate (including any locality adjustment or staffing
supplement) for employees with a rating of record below Outstanding and
the upper range maximum rate (including any locality adjustment or
staffing supplement) for an employees with an Outstanding rating of
record; and (4) provide when a frozen saved rate for an employee with a
rating of record below Fully Successful falls below the applicable
adjusted rate for the normal band maximum, the saved rate will be
terminated and the employee's pay will be set at an adjusted rate equal
to the saved rate).
Chapter 51: Classification (except that (1) sections 5111 and 5112
are retained with ``grade'' replaced by ``pay bands'' and (2) for the
purpose of applying any other laws, regulations, or policies that refer
to GS employees or to chapter 51 of title 5, United States Code, the
modified classification system established under this plan must be
considered to be a GS classification system under chapter 51; this
includes, but is not limited to, the reference to the General Schedule
in section 5545(d) (relating to hazard pay).
Chapter 53, section 5302(1)(A), (8) and (9): Definitions (only to
the extent necessary to provide that employees under the demonstration
project are not considered to be GS employees for the purposes of
annual adjustments under section 5303 or similar provision of law
governing annual adjustments for employees covered by section 5303).
[[Page 26450]]
Chapter 53, section 5303: Annual adjustments to pay schedules
Chapter 53, section 5304(g)(1): Locality-based comparability payments
(only to the extent necessary to (1) provide a locality rate may not
exceed the rate for EX-IV plus 5 percent for employees in the upper
range extension) and (2) apply an ``effective'' locality pay percentage
for employees in the upper range extension under circumstances
described in the plan).
Chapter 53, section 5305: Special pay authority.
Chapter 53, subchapter III: General Schedule pay rates (except
that, for purposes of applying any other laws, regulations, or policies
that refer to GS employees or to subchapter III of chapter 53 of title
5, United States Code, the modified pay system established under this
plan must be considered to be a GS pay system established under such
subchapter III, except as otherwise provided in this plan; this
includes, but is not limited to, references to the General Schedule in
section 5304 (relating to locality pay), section 5545(d) (relating to
hazard pay), and sections 5753-5754 (dealing with recruitment,
relocation, and retention incentives).
Chapter 53, section 5362: Grade retention.
Chapter 53, section 5363: Pay retention (only to the extent
necessary to (1) replace ``grade'' with ``pay band;'' (2) bar employees
with a rating of record lower than Fully Successful from receiving
retained rate increases under 5 U.S.C. 5363(b)(2)(B); (3) provide that
pay retention provisions do not apply to conversions into the
demonstration project from the General Schedule or other pay system, as
long as the employee's total pay rate is not reduced; (4) provide the
pay (including any locality adjustment or staffing supplement) of an
employee in the upper range extension who is rated below Outstanding
will be converted to a retained rate before processing any other
actions; (5) provide a retained rate that is less than the maximum rate
(including any locality adjustment or staffing supplement) of the upper
range extension for an employee who receives a rating of record of
Outstanding will be terminated and converted to an equal adjusted rate;
(6) provide the range maximum rate used to compute retained rate
adjustments is the normal range maximum rate (including any locality
adjustment or staffing supplement) for employees with a rating of
record below Outstanding and the upper range maximum rate (including
any locality adjustment or staffing supplement) for an employees with
an Outstanding rating of record; and (7) provide when a retained rate
for an employee with a rating of record below Fully Successful falls
below the applicable adjusted rate for the normal band maximum, the
retained rate will be terminated and the employee's pay will be set at
an adjusted rate equal to the retained rate).
Chapter 55, section 5542(a): Overtime rates (only to the extent
necessary to provide that the GS-10 minimum special rate (if any) for
the special rate category that would otherwise apply to an employee
(but for the existence of the demonstration project) is deemed to be
the ``applicable special rate of pay'' in determining the overtime
hourly rate cap).
Chapter 55, section 5547: Limitation on premium pay (only to the
extent necessary to provide that an applicable staffing supplement is
added to the GS-15, step 10, rate in lieu of the applicable locality
payment).
Chapter 59, section 5941: Cost-of-living allowances and post
differentials (only to the extent necessary to provide that employees
in the demonstration project pay system are eligible for coverage under
section 5941).
Chapter 75, section 7512(3): Adverse actions (only to the extent
necessary to replace ``grade'' with ``pay band'').
Chapter 75, section 7512(4): Adverse actions (only to the extent
necessary to provide that adverse action provisions do not apply to (1)
conversions into the demonstration project from the General Schedule or
other pay system, as long as the employee's total rate of pay is not
reduced and (2) reductions in rates of basic pay to offset a locality
pay or staffing supplement increase as a result of receiving a rating
of record below Fully Successful).
Note: If any of the provisions of title 5, United States Code,
listed above are amended during the period this demonstration
project is in effect, FSIS may choose to terminate the waiver of one
or more such provisions with respect to employees participating in
the project, without formally modifying the project itself. FSIS
must notify OPM when any such waiver is terminated.
B. Title 5, Code of Federal Regulations
Part 300, subpart F: Time-in-grade restrictions (only to the extent
necessary to replace ``grade'' with ``pay band'').
Part 330, subpart B, section 330.201: Establishment and maintenance
of Reemployment Priority List (RPL) (only to the extent necessary to
establish and maintain a reemployment priority list exclusively for
FSIS competitive service demonstration project employees).
Part 351, subpart D, section 351.402: Competitive area (only to the
extent necessary to permit the use of career paths in conjunction with
organizational units and geographic locations when establishing
competitive areas).
Part 351, subpart D, section 351.403: Competitive level (only to
the extent necessary to substitute ``same pay band'' for ``same
grade'').
Part 351, subpart G, section 351.701: Assignment involving
displacement (only to the extent necessary to substitute ``one pay
band'' for ``three grades'' and ``two pay bands'' for ``five grades'').
Part 359, subpart G, section 359.705: Pay (only to the extent
necessary to (1) bar employees with a rating of record lower than Fully
Successful from receiving a saved rate increase under 5 CFR
359.705(d)(1)); (2) provide a saved rate that is less than the maximum
rate (including any locality adjustment or staffing supplement) of the
upper range extension for an employee who receives a rating of record
of Outstanding will be terminated and converted to an equal adjusted
rate; (3) provide the range maximum rate used to compute saved rate
adjustments is the normal range maximum rate (including any locality
adjustment or staffing supplement) for employees with a rating of
record below Outstanding and the upper range maximum rate (including
any locality adjustment or staffing supplement) for an employees with
an Outstanding rating of record; and (4) provide when a saved rate for
an employee with a rating of record below Fully Successful falls below
the applicable adjusted rate for the normal band maximum, the saved
rate will be terminated and the employee's pay will be set at an
adjusted rate equal to the saved rate).
Part 430, subpart B, section 430.203: Definitions (only to the
extent necessary to allow an additional rating of record to support a
pay decision under section III.C.3 or 4 of this project plan).
Part 511, subpart B: Coverage of the General Schedule.
Part 511, section 511.607: Nonappealable issues.
Part 530, subpart C: Special Rate Schedules for Recruitment and
Retention.
Part 531, subpart B: Determining Rate of Basic Pay.
Part 531, subpart D: Within-Grade Increases.
Part 531, subpart E: Quality Step Increases.
Part 531, section 531.604: Determining an employee's locality rate
(only to the extent necessary to apply an ``effective'' locality pay
percentage for employees in the upper range extension under
circumstances described in the plan).
[[Page 26451]]
Part 531, section 531.606: Maximum limits on locality rates (only
to the extent necessary to provide a locality rate may not exceed the
rate for EX-IV plus 5 percent for employees in the upper range
extension).
Part 536, subpart B: Grade Retention.
Part 536, subpart C: Pay Retention (only to the extent necessary to
(1) replace ``grade'' with ``pay band;'' (2) bar employees with a
rating of record lower than Fully Successful from receiving retained
rate increases under 5 CFR 536.305; (3) provide that pay retention
provisions do not apply to conversions into the demonstration project
from the General Schedule or other pay system, as long as the
employee's total pay rate is not reduced); (4) provide that a retained
rate may not exceed the rate for EX-IV plus 5 percent; (5) provide the
pay (including any locality adjustment or staffing supplement) of an
employee in the upper range extension who is rated below Outstanding
will be converted to a retained rate before processing any other
actions; (6) provide a retained rate that is less than the maximum rate
(including any locality adjustment or staffing supplement) of the upper
range extension for an employee who receives a rating of record of
Outstanding will be terminated and converted to an equal adjusted rate;
(7) provide the range maximum rate used to compute retained rate
adjustments is the normal range maximum rate (including any locality
adjustment or staffing supplement) for employees with a rating of
record below Outstanding and the upper range maximum rate (including
any locality adjustment or staffing supplement) for an employees with
an Outstanding rating of record; and (8) provide when a retained rate
for an employee with a rating of record below Fully Successful falls
below the applicable adjusted rate for the normal band maximum, the
retained rate will be terminated and the employee's pay will be set at
an adjusted rate equal to the retained rate).
Part 550, sections 550.106-107: Biweekly and annual maximum
earnings limitation (only to the extent necessary to provide that an
applicable staffing supplement is added to the GS-15, step 10, rate in
lieu of the applicable locality payment).
Part 550, section 550.113(a): Computation of overtime pay (only to
the extent necessary to provide that the GS-10 minimum special rate (if
any) for the special rate category that would otherwise apply to an
employee (but for the existence of the demonstration project) is deemed
to be the ``applicable special rate of pay'' in determining the
overtime hourly rate cap).
Part 550, section 550.703: Definitions (to the extent necessary to
modify paragraph (c)(4) of the definition of ``reasonable offer'' by
replacing ``two grade or pay levels'' with ``one pay band level'' and
``grade or pay level'' with ``pay band level'').
Part 591, subpart B, section 591.204: Cost-of-living allowances and
post differentials (only to the extent necessary to provide that the
demonstration project pay system is a qualifying pay plan).
Part 752, section 752.401(a)(3): Adverse actions (only to the
extent necessary to replace ``grade'' with ``pay band'').
Part 752, section 752.401(a)(4): Adverse actions (only to the
extent necessary to provide that adverse action provisions do not apply
to (1) conversions into the demonstration project from the General
Schedule or other pay system, as long as the employee's total rate of
pay is not reduced and (2) reductions in rates of basic pay to offset a
locality pay or staffing supplement rate increase as a result of
receiving a rating of record below Fully Successful).
Note: If any of the provisions of title 5, Code of Federal
Regulations, listed above are revised during the period this
demonstration project is in effect, FSIS may choose to terminate the
waiver of one or more such provisions with respect to employees
participating in the project, without formally modifying the project
itself. FSIS must notify OPM when any such waiver is terminated.
[FR Doc. E8-10440 Filed 5-8-08; 8:45 am]
BILLING CODE 6325-43-P