Civil Service Simplification Act of 1986

Civil Service Simplification Act of 1986 - Establishes a Simplified Management System as an alternative to the present Federal classification and pay system. Authorizes the head of an agency to implement such System for the agency, components of the agency, or any occupation or group of occupations within the agency. Requires the head of an agency to submit plans for such System to the President and the Office of Personnel Management (Office) for review and approval. Requires that such plans be approved if they are budget-neutral and consistent with criteria established under this Act.

Requires the Office to establish career paths and pay bands for the System.

Authorizes agencies to increase rates of pay or to pay bonuses to employees under the System, if it is determined that recruitment or retention of well-qualified employees is, or is likely to become, seriously handicapped by higher pay rates paid by Federal or non-Federal employers, undesirable working conditions, or remote geographical locations.

Directs the Office to prescribe regulations to provide linkages between pay bands and General Schedule grade levels and rates of basic pay.

Requires each agency which implements the Simplified Management System to prepare a pay-for-performance plan which shall be subject to approval by the Office.

Directs the Office to prescribe regulations for conversion procedures to convert individuals to coverage under the System and to terminate coverage under the System.

Directs the President to review the operation of the System in each agency to ensure that such System is operating in a budget-neutral manner. Authorizes the President to require an agency to modify or terminate the use of such System if it is not so operating.

Requires the Office to monitor and evaluate the operations of the System. Authorizes the Office to require modification or termination of the System for noncompliance with provisions of this Act.

Authorizes an employee under such system to request certain information from the Office concerning career paths and pay bands. Declares any decision made by the Office based on such request binding on the employing agency and not subject to appeal or review.