PRIA Logo™
Title 5, Government Organization and EmployeesRelease 119-102

§5403 Human Capital Performance Fund

Title 5 › PART III — EMPLOYEES › Subpart D — Pay and Allowances › CHAPTER 54 — HUMAN CAPITAL PERFORMANCE FUND › § 5403

Last updated Aug 21, 2026|Official source

Summary

Creates a Human Capital Performance Fund run by the Office. To get money, an agency must submit a plan under section 5406 and have it approved. After the training set‑aside under section 5408, 90% of the remaining money can be given to agencies based on their share of Executive branch payroll. Any agency’s unused share can be reallocated to others. The other 10%, plus amounts not given because an agency failed to submit an acceptable plan, will go to agencies with exceptionally high‑quality plans. Agencies must give the Office the payroll data it needs.

Full Legal Text

Title 5, §5403

Government Organization and Employees, Source: USLM XML via OLRC

(a)There is hereby established the Human Capital Performance Fund, to be administered by the Office for the purpose of this chapter.
(b)(1)(A)An agency shall submit a plan as described in section 5406 to be eligible for consideration by the Office for an allocation under this section. An allocation shall be made only upon approval by the Office of an agency’s plan.
(B)(i)After the reduction for training required under section 5408, ninety percent of the remaining amount appropriated to the Fund may be allocated by the Office to the agencies. Of the amount to be allocated, an agency’s pro rata distribution may not exceed its pro rata share of Executive branch payroll.
(ii)If the Office does not allocate an agency’s full pro rata share, the undistributed amount remaining from that share will become available for distribution to other agencies, as provided in subparagraph (C).
(C)(i)After the reduction for training under section 5408, ten percent of the remaining amount appropriated to the Fund, as well as the amount of the pro rata share not distributed because of an agency’s failure to submit a satisfactory plan, shall be allocated among agencies with exceptionally high-quality plans.
(ii)An agency with an exceptionally high-quality plan is eligible to receive an additional distribution in addition to its full pro rata distribution.
(2)Each agency is required to provide to the Office such payroll information as the Office specifies necessary to determine the Executive branch payroll.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 5403, added Pub. L. 95–454, title V, § 501, Oct. 13, 1978, 92 Stat. 1182; amended Pub. L. 98–615, title II, § 201(a), Nov. 8, 1984, 98 Stat. 3209; Pub. L. 101–509, title V, § 529 [title I, § 101(b)(4)(C)], Nov. 5, 1990, 104 Stat. 1427, 1439; Pub. L. 102–378, § 2(38), Oct. 2, 1992, 106 Stat. 1351, related to general pay increases, prior to repeal by Pub. L. 103–89, § 3(a)(1), (c), Sept. 30, 1993, 107 Stat. 981, 983, eff. Nov. 1, 1993.

Reference

Citations & Metadata

Citation

5 U.S.C. § 5403

Title 5, Government Organization and Employees

Last Updated

Aug 21, 2026

Release point: 119-102