Feds to Limit 'Perfect' Scores for Top Brass—Fairness Finally?
Published Date: 5/2/2025
Proposed Rule
Summary
The government wants to change how top federal leaders (Senior Executive Service) get their performance ratings. They plan to allow limits on how many can get the highest scores to make ratings fairer and more honest. This affects federal agencies and aims to improve accountability, with public comments open until June 2, 2025.
Analyzed Economic Effects
3 provisions identified: 0 benefits, 2 costs, 1 mixed.
Limits on Top SES Ratings
If you are a Senior Executive Service (SES) member, OPM proposes to allow agencies to set limits on how many SES can receive the highest ratings (Levels 4 and 5). This change would apply across the government to about 8,430 SES members and agencies are expected to prepare in fiscal year 2025 for implementation in the fiscal year 2026 appraisal period. The rule says this could lead to fewer performance awards and pay adjustments for SES members.
DEI Removed from SES Appraisals
OPM proposes to remove the performance factor that appraisals should consider "leadership effectiveness in promoting diversity, inclusion, and engagement" (removal of 5 CFR 430.308(d)(7)). OPM also proposes to remove language encouraging agencies to consider diversity and inclusion when appointing Performance Review Board (PRB) members and to replace it with language encouraging selection of individuals committed to enforcing SES performance standards.
One-time Governmentwide Implementation Cost
OPM estimates the one-year transitional cost to implement this rule at about $1.5 million governmentwide. That total includes about $12,400 per agency (80 hours of policy-update work at an assumed $154.76 hourly labor cost, totaling about $1.1 million across ~90 agencies) and about $420,000 for SES members spending an extra 15 minutes each to adjust performance requirements (based on ~8,430 SES and an assumed $199.34 hourly loaded cost).
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Key Dates
Department and Agencies
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