§5406 — Title 5 Government Organization and Employees | U.S. Code

Summary

An agency must make a plan with eight main parts to be considered for funding by the Office. The parts cover merit-based rules, a fair and clear performance review system, a link between pay-for-performance, reviews, and the agency’s goals, employee input in designing the system, training for managers and staff, ongoing feedback and review schedules, safeguards so pay is fair and based on performance, and enough money and staff to run the system. The Office must approve the plan. After approval, the agency can get money, must pay employees under the approved plan, and must tell the Office how the payments and funds were used. The Office reviews plans with the Chief Human Capital Officers Council. That Council must include an evaluation of agency performance systems in its annual report to Congress under section 1303(d) of the Homeland Security Act of 2002.

Title 5, §5406

Government Organization and Employees — Source: USLM XML via OLRC

(a)To be eligible for consideration by the Office for an allocation under this section, an agency shall—

(1)develop a plan that incorporates the following elements:

(A)adherence to merit principles set forth in section 2301;

(B)a fair, credible, and transparent employee 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 involvement 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 performance feedback and dialogue between supervisors, 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 equitable and based on employee performance; and

(H)a means for ensuring that adequate agency resources are allocated for the design, 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 regarding payments made and use of funds received 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 management systems.

Notes & Related Subsidiaries

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. 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.

§5406 Agency Plan