5 U.S.C. § 5406 — Agency plan

Page 633 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 5406 formance pay, as defined by regulation, may not exceed the rate of basic pay for Executive Level IV in any year. (3) Any human capital performance payment provided to an employee from the Fund is in ad- dition to any annual pay adjustment (under sec- tion 5303 or any similar provision of law) and any locality-based comparability payment that may apply. (c) No monies from the Human Capital Per- formance Fund may be used to pay for a new po- sition, for other performance-related payments, or for recruitment or retention incentives paid under sections 5753 and 5754. (d)(1) An agency may finance initial human capital performance payments using monies from the Human Capital Performance Fund, as available. (2) In subsequent years, continuation of pre- viously awarded human capital performance payments shall be financed from other agency funds available for salaries and expenses. (Added Pub. L. 108–136, div. A, title XI, § 1129(a), Nov. 24, 2003, 117 Stat. 1643.) Editorial Notes REFERENCES IN TEXT Executive Level IV, referred to in subsec. (b)(2), is set out in section 5315 of this title. PRIOR PROVISIONS A prior section 5404, added Pub. L. 95–454, title V, § 501, Oct. 13, 1978, 92 Stat. 1183; amended Pub. L. 98–615, title II, § 201(a), Nov. 8, 1984, 98 Stat. 3210; Pub. L. 101–103, § 3(a), Sept. 30, 1989, 103 Stat. 670, related to merit increases, prior to repeal by Pub. L. 103–89, § 3(a)(1), (c), Sept. 30, 1993, 107 Stat. 981, 983, eff. Nov. 1, 1993. § 5405. Regulations The Office shall issue such regulations as it determines to be necessary for the administra- tion of this chapter, including the administra- tion of the Fund. The Office’s regulations shall include criteria governing— (1) an agency plan under section 5406; (2) the allocation of monies from the Fund to agencies; (3) the nature, extent, duration, and adjust- ment of, and approval processes for, payments to individual employees under this chapter; (4) the relationship to this chapter of agency performance management systems; (5) training of supervisors, managers, and other individuals involved in the process of making performance distinctions; and (6) the circumstances under which funds may be allocated by the Office to an agency in amounts below or in excess of the agency’s pro rata share. (Added Pub. L. 108–136, div. A, title XI, § 1129(a), Nov. 24, 2003, 117 Stat. 1643.) Editorial Notes PRIOR PROVISIONS A prior section 5405, added Pub. L. 95–454, title V, § 501, Oct. 13, 1978, 92 Stat. 1183; amended Pub. L. 98–615, title II, § 201(a), Nov. 8, 1984, 98 Stat. 3211; Pub. L. 101–509, title V, § 529 [title I, § 101(b)(3)(C)], Nov. 5, 1990, 104 Stat. 1427, 1439, related to pay administration, prior to repeal by Pub. L. 103–89, § 3(a)(1), (c), Sept. 30, 1993, 107 Stat. 981, 983, eff. Nov. 1, 1993. § 5406. Agency plan (a) To be eligible for consideration by the Of- fice for an allocation under this section, an agency shall— (1) develop a plan that incorporates the fol- lowing elements: (A) adherence to merit principles set forth in section 2301; (B) a fair, credible, and transparent em- ployee performance appraisal system; (C) a link between the pay-for-performance system, the employee performance appraisal system, and the agency’s strategic plan; (D) a means for ensuring employee in- volvement in the design and implementation of the system; (E) adequate training and retraining for supervisors, managers, and employees in the implementation and operation of the pay- for-performance system; (F) a process for ensuring ongoing per- formance feedback and dialogue between su- pervisors, managers, and employees throughout the appraisal period, and setting timetables for review; (G) effective safeguards to ensure that the management of the system is fair and equi- table and based on employee performance; and (H) a means for ensuring that adequate agency resources are allocated for the de- sign, implementation, and administration of the pay-for-performance system; (2) upon approval, receive an allocation of funding from the Office; (3) make payments to individual employees in accordance with the agency’s approved plan; and (4) provide such information to the Office re- garding payments made and use of funds re- ceived under this section as the Office may specify. (b) The Office, in consultation with the Chief Human Capital Officers Council, shall review and approve an agency’s plan before the agency is eligible to receive an allocation of funding from the Office. (c) The Chief Human Capital Officers Council shall include in its annual report to Congress under section 1303(d) of the Homeland Security Act of 2002 an evaluation of the formulation and implementation of agency performance manage- ment systems. (Added Pub. L. 108–136, div. A, title XI, § 1129(a), Nov. 24, 2003, 117 Stat. 1644.) Editorial Notes REFERENCES IN TEXT Section 1303(d) of the Homeland Security Act of 2002, referred to in subsec. (c), is section 1303(d) of Pub. L. 107–296, which is set out as a note under section 1401 of this title. PRIOR PROVISIONS A prior section 5406, added Pub. L. 98–615, title II, § 201(a), Nov. 8, 1984, 98 Stat. 3211; amended Pub. L. Page 634 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 5407 1 Section catchline amended by Pub. L. 97–365 without cor- responding amendment of chapter analysis. 101–103, § 4, Sept. 30, 1989, 103 Stat. 671; Pub. L. 102–22, § 2(b), Mar. 28, 1991, 105 Stat. 71, related to performance awards, prior to repeal by Pub. L. 103–89, § 3(a)(1), (c), Sept. 30, 1993, 107 Stat. 981, 983, eff. Nov. 1, 1993. § 5407. Nature of payment Any payment to an employee under this sec- tion shall be part of the employee’s basic pay for the purposes of subchapter III of chapter 83, and chapters 84 and 87, and for such other purposes (other than chapter 75) as the Office shall deter- mine by regulation. (Added Pub. L. 108–136, div. A, title XI, § 1129(a), Nov. 24, 2003, 117 Stat. 1645.) Editorial Notes PRIOR PROVISIONS A prior section 5407, added Pub. L. 98–615, title II, § 201(a), Nov. 8, 1984, 98 Stat. 3213, related to cash award program, prior to repeal by Pub. L. 103–89, § 3(a)(1), (c), Sept. 30, 1993, 107 Stat. 981, 983, eff. Nov. 1, 1993. § 5408. Appropriations There is authorized to be appropriated $500,000,000 for fiscal year 2004, and, for each sub- sequent fiscal year, such sums as may be nec- essary to carry out the provisions of this chap- ter. In the first year of implementation, up to 10 percent of the amount appropriated to the Fund shall be available to participating agencies to train supervisors, managers, and other individ- uals involved in the appraisal process on using performance management systems to make meaningful distinctions in employee perform- ance and on the use of the Fund. (Added Pub. L. 108–136, div. A, title XI, § 1129(a), Nov. 24, 2003, 117 Stat. 1645.) Editorial Notes PRIOR PROVISIONS Prior sections 5408 to 5410 were repealed by Pub. L. 103–89, § 3(a)(1), (c), Sept. 30, 1993, 107 Stat. 981, 983, effec- tive Nov. 1, 1993. Section 5408, added Pub. L. 98–615, title II, § 201(a), Nov. 8, 1984, 98 Stat. 3214, required annual reports by Of- fice of Personnel Management. Section 5409, added Pub. L. 98–615, title II, § 201(a), Nov. 8, 1984, 98 Stat. 3214, directed Office of Personnel Management to prescribe regulations. Section 5410, added Pub. L. 98–615, title II, § 201(a), Nov. 8, 1984, 98 Stat. 3214; amended Pub. L. 101–103, § 2, Sept. 30, 1989, 103 Stat. 670; Pub. L. 102–22, § 2(c), Mar. 28, 1991, 105 Stat. 71; Pub. L. 103–89, § 2, Sept. 30, 1993, 107 Stat. 981, related to termination of chapter and accom- panying regulations. CHAPTER 55—PAY ADMINISTRATION SUBCHAPTER I—GENERAL PROVISIONS Sec. 5501. Disposition of money accruing from lapsed salaries or unused appropriations for sala- ries. 5502. Unauthorized office; prohibition on use of funds. 5503. Recess appointments. 5504. Biweekly pay periods; computation of pay. 5505. Monthly pay periods; computation of pay. 5506. Computation of extra pay based on standard or daylight saving time. 5507. Officer affidavit; condition to pay. 5508. Officer entitled to leave; effect on pay status. Sec. 5509. Appropriations. SUBCHAPTER II—WITHHOLDING PAY 5511. Withholding pay; employees removed for cause. 5512. Withholding pay; individuals in arrears. 5513. Withholding pay; credit disallowed or charge raised for payment. 5514. Installment deduction for indebtedness be- cause of erroneous payment.1 5515. Crediting amounts received for jury or wit- ness service. 5516. Withholding District of Columbia income taxes. 5517. Withholding State income taxes. 5518. Deductions for State retirement systems; Na- tional Guard employees. 5519. Crediting amounts received for certain Re- serve or National Guard service. 5520. Withholding of city or county income or em- ployment taxes. 5520a. Garnishment of pay. SUBCHAPTER III—ADVANCEMENT, ALLOTMENT, AND ASSIGNMENT OF PAY 5521. Definitions. 5522. Advance payments; rates; amounts recover- able. 5523. Duration of payments; rates; active service period. 5524. Review of accounts. 5524a. Advance payments for new appointees and employees relocating within the United States and its territories. 5525. Allotment and assignment of pay. 5526. Funds available on reimbursable basis. 5527. Regulations. SUBCHAPTER IV—DUAL PAY AND DUAL EMPLOYMENT 5531. Definitions. [5532. Repealed.] 5533. Dual pay from more than one position; limi- tations; exceptions. 5534. Dual employment and pay of Reserves and National Guardsmen. 5534a. Dual employment and pay during terminal leave from uniformed services. 5535. Extra pay for details prohibited. 5536. Extra pay for extra services prohibited. 5537. Fees for jury and witness service. 5538. Nonreduction in pay while serving in the uni- formed services or National Guard. SUBCHAPTER V—PREMIUM PAY 5541. Definitions. 5542. Overtime rates; computation. 5543. Compensatory time off. 5544. Wage-board overtime and Sunday rates; com- putation. 5545. Night, standby, irregular, and hazardous duty differential. 5545a. Availability pay for criminal investigators. 5545b. Pay for firefighters. 5546. Pay for Sunday and holiday work. 5546a. Differential pay for certain employees of the Federal Aviation Administration and the Department of Defense. 5547. Limitation on premium pay. 5548. Regulations. 5549. Effect on other statutes. 5550. Border patrol rate of pay. 5550a. Compensatory time off for religious observ- ances. 5550b. Compensatory time off for travel. SUBCHAPTER VI—PAYMENT FOR ACCUMULATED AND ACCRUED LEAVE 5551. Lump-sum payment for accumulated and ac- crued leave on separation.