Federal Pay Equity and Management Improvement Act of 1984

(Measure passed House, amended roll call #294 (413-6))

Federal Pay Equity and Management Improvement Act of 1984 - Title I: Pay Equity - Directs the Office of Personnel Management (OPM) to enter into a contract with a consultant to conduct a study and prepare a report on: (1) any Government practices of setting lower wage rates under the position classification system or the prevailing pay rate system for jobs held predominantly by women than for jobs with comparable duties and requirements held predominantly by men; (2) the discriminatory wage differentials resulting from such practices; and (3) appropriate measures for eliminating such practices and differentials, including proposals for the use of equitable job-evaluation techniques and training programs for individuals responsible for implementing such measures and excluding any measure which would result in a reduction in the rate of pay for any position. Requires that the consultant's report be submitted to OPM and the Pay Equity Study Council within six months. Directs OPM to transmit such report and any written comments received from the Council to the President and specified congressional committees within one month after receiving such report.

Directs OPM to: (1) establish a Pay Equity Study Council consisting of at least six representatives of labor organizations representing substantial numbers of female employees; and (2) meet with the Council during the 30 days after its establishment to discuss the design, methodology, and conduct of such study. Directs the Council to recommend to OPM at least five consultants which would be appropriate to conduct such study. Requires OPM to select one of such consultants.

Requires that the consultant meet jointly with OPM and the Council at least monthly concerning the study. Directs the Council to submit its written comments on the consultant's OPM in time for transmission to the President and Congress, after which such Council shall cease to exist.

Requires each executive agency to cooperate with the consultant in the conduct of such study. Directs OPM to provide the Council with any necessary information.

Title II: Performance Management and Recognition System - Revises the merit pay system. Renames the system the performance management and recognition system.

Allows the President to exclude any class of employees within any agency unit from such system under specified conditions. Excludes employees of the Office of the Architect of the Capitol, the Library of Congress, the Botanic Garden, and the Administrative Office of the Courts from such system.

Declares that such system shall provide for general pay increases, merit increases, and performance awards based on an employee's performance as measured on a five-level scale consisting of one fully successful level, two levels below fully successful, and two levels above fully successful.

Requires that any employee whose performance is rated at: (1) the second level below fully successful receive no general pay increase; (2) the first level below fully successful receive one half of the general increase; and (3) the fully successful level or above receive the full general increase.

Authorizes annual merit increases to take effect on the first applicable pay period beginning on or after October 1 of each year. Sets the amount of a merit increase at one-ninth of the difference between the minimum and maximum rates of basic pay for the pay grade. Provides for the award of a full merit increase or a fraction thereof based on the employee's level of performance and the employee's basic pay rate within his or her pay grade. Denies merit increases to employees who perform below the fully successful level.

Prohibits an employee covered by the performance management and recognition system from being paid at a rate greater than the maximum rate of basic pay for the grade of the employee's position. Allows a covered employee to be paid less than the minimum pay for such grade only as a result of the employee failing to qualify for a full general pay increase. Prohibits a reduction in the pay of an employee brought under such system so long as the employee continues to occupy the same position.

Requires the payment of a performance award in an amount not more than ten percent and, after FY 1985, not less than two percent of an employee's annual rate of basic pay to any employee whose performance is rated at the second level above fully successful. Authorizes the payment of a performance award not exceeding ten percent of an employee's basic pay to any employee whose performance is rated at the first level either above or at the fully successful level. Limits the funds available to an agency for performance awards to a specified percentage of the agency funds payable for the basic pay of employees under the performance management and recognition system.

Continues the cash award program (currently provided under the merit pay system) under the performance management and recognition system.

Directs OPM to report to the President and Congress annually on the effectiveness of such system. Prohibits OPM from promulgating regulations restricting the individual or aggregate amount of performance awards. Terminates such system on September 30, 1989.

Requires agencies to develop separate performance appraisal procedures for employees covered by such system. Requires such performance appraisal procedures to require the joint participation of the supervising official and the employee in establishing performance standards. Directs OPM to prescribe regulations requiring that such procedures assure accurate evaluation of job performance, communication with employees regarding performance standards at the begining of each appraisal period, evaluation of employees based upon such standards, assistance to employees performing below the fully successful level, and the reassignment, reduction in grade, or removal of any employee who continues to perform below the fully successful level after being afforded reasonable opportunity to improve his or her performance. Lists factors to be considered in performance appraisals, including organizational accomplishment. Entitles an employee whose performance is rated below the fully successful level to: (1) receive prompt notice of that rating and an opportunity for reconsideration of such rating within the agency; and (2) appeal any such rating which is affirmed on reconsideration to the Merit Systems Protection Board.

Requires each agency to establish a performance standards review board to: (1) assess the agency's performance standards; (2) study the feasibility of an awards program based on the collective performance of groups of employees under the performance management and recognition system; and (3) provide technical assistance with respect to demonstration projects relating to performance standards.

Prohibits OPM or any agency from prescribing any particular distribution of levels of performance ratings or any specific performance standard or element. Prohibits any reduction in the basic pay rate of an individual serving in a position which: (1) is under the merit pay system before the effective date of this title solely because such position does not become covered by the performance management and recognition system; or (2) ceases to be covered by the performance management and recognition system upon termination of such system.

Title III: Senior Executive Service - Expresses the sense of Congress that the Senior Executive Service should be continued indefinitely.

Establishes the minimum amount of a performance award for a career appointee in the Senior Executive Service (SES) as five percent of the appointee's basic pay rate. Limits the aggregate amount of performance awards payable to SES career appointees of an agency to a specified percentage of the basic pay payable to such appointees during the preceding fiscal year.

Prohibits the total number of noncareer appointees in all agencies in a fiscal year from exceeding ten percent of the average number of senior executives occupying SES positions in all agencies during the preceding fiscal year. Revises a limitation on the number of SES positions in an agency that may be filled by noncareer appointees to prohibit such number from exceeding 25 percent of the average number of senior executive occupying SES positions in the agency during the preceding fiscal year.

Permits a career appointee to be removed from the SES due to a reduction-in-force if the appointee is not assigned to another SES position within the same agency or placed in a SES position in another agency within 45 (currently 120) days after OPM received the original agency's certification that no SES position is available.

Prohibits a career appointee from being reassigned outside of his or her commuting area unless he or she is consulted and provided 60 days notice concerning such reassignment. Directs OPM to prescribe regulations providing career appointees rights comparable to competing employees in the event of a transfer of functions between agencies. Authorizes an agency to take an adverse action against an employee because the employee fails to accept a directed reassignment or to accompany a position in a transfer of function. Provides that the involuntary separation of an employee for failure to accept a directed reassignment to a position or to accompany a position in a transfer of function outside his or her commuting area shall not be considered to be a removal for cause on charges of misconduct or delinquency in determining such employee's eligibility for immediate civil service retirement.