§9508 — Title 5 Government Organization and Employees | U.S. Code

Summary

The Secretary of the Treasury must create a performance management system for the IRS within one year. The system must set clear job-based retention standards for each employee, tell employees what those standards are, check regularly whether employees meet them, and, if they do not, take steps allowed by law (for example deny pay increases or promotions, reassign the employee, use disciplinary or removal actions, or other appropriate steps). The system must also set and share goals for individuals, teams, or the whole agency, use those goals to tell better from worse performance, and use performance results when giving awards, changing pay, or taking other personnel actions. A “performance assessment” means the check of retention standards and any extra judgments based on the shared goals. “Unacceptable performance” means failing to meet a retention standard. The Secretary may run an awards program to reward individual, group, or agency achievements, and cash awards under chapter 45 can be given without the usual approval under section 4502(b). In some appeal rules, a 30‑day time period may be treated as 15 days for IRS employees, and an IRS employee may not appeal the denial of a periodic step increase under section 5335 to the Merit Systems Protection Board.

Title 5, §9508

Government Organization and Employees — Source: USLM XML via OLRC

(a)In lieu of a performance appraisal system established under section 4302, the Secretary of the Treasury shall, within 1 year after the date of enactment of this section, establish for the Internal Revenue Service a performance management system that—

(1)maintains individual accountability by—

(A)establishing one or more retention standards for each employee related to the work of the employee and expressed in terms of individual performance, and communicating such retention standards to employees;

(B)making periodic determinations of whether each employee meets or does not meet the employee’s established retention standards; and

(C)taking actions, in accordance with applicable laws and regulations, with respect to any employee whose performance does not meet established retention standards, including denying any increases in basic pay, promotions, and credit for performance under section 3502, and taking one or more of the following actions:

(i)Reassignment.

(ii)An action under chapter 43 or chapter 75 of this title.

(iii)Any other appropriate action to resolve the performance problem; and

(2)except as provided under section 1204 of the Internal Revenue Service Restructuring and Reform Act of 1998, strengthens the system’s effectiveness by—

(A)establishing goals or objectives for individual, group, or organizational performance (or any combination thereof), consistent with the Internal Revenue Service’s performance planning procedures, including those established under the Government Performance and Results Act of 1993, subtitle III of title 40, Revenue Procedure 64–22 (as in effect on July 30, 1997), and taxpayer service surveys, and communicating such goals or objectives to employees;

(B)using such goals and objectives to make performance distinctions among employees or groups of employees; and

(C)using performance assessments as a basis for granting employee awards, adjusting an employee’s rate of basic pay, and other appropriate personnel actions, in accordance with applicable laws and regulations.

(b)(1)For purposes of subsection (a)(2), the term “performance assessment” means a determination of whether or not retention standards established under subsection (a)(1)(A) are met, and any additional performance determination made on the basis of performance goals and objectives established under subsection (a)(2)(A).

(2)For purposes of this title, the term “unacceptable performance” with respect to an employee of the Internal Revenue Service covered by a performance management system established under this section means performance of the employee which fails to meet a retention standard established under this section.

(c)(1)The Secretary of the Treasury may establish an awards program designed to provide incentives for and recognition of organizational, group, and individual achievements by providing for granting awards to employees who, as individuals or members of a group, contribute to meeting the performance goals and objectives established under this chapter by such means as a superior individual or group accomplishment, a documented productivity gain, or sustained superior performance.

(2)A cash award under subchapter I of chapter 45 may be granted to an employee of the Internal Revenue Service without the need for any approval under section 4502(b).

(d)(1)In applying section 4303(b)(1)(A) and 7513(b)(1) to employees of the Internal Revenue Service, “30 days” may be deemed to be “15 days”.

(2)Notwithstanding the second sentence of section 5335(c), an employee of the Internal Revenue Service shall not have a right to appeal the denial of a periodic step increase under section 5335 to the Merit Systems Protection Board.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The date of enactment of this section, referred to in subsec. (a), is the date of enactment of Pub. L. 105–206, which was approved July 22, 1998. section 1204 of the Internal Revenue Service Restructuring and Reform Act of 1998, referred to in subsec. (a)(2), is section 1204 of Pub. L. 105–206, which is set out as a note under section 7804 of Title 26, Internal Revenue Code. The Government Performance and Results Act of 1993, referred to in subsec. (a)(2)(A), is Pub. L. 103–62, Aug. 3, 1993, 107 Stat. 285, which enacted section 306 of this title, sections 1115 to 1119, 9703, and 9704 of Title 31, Money and Finance, and sections 2801 to 2805 of Title 39, Postal Service, amended section 1105 of Title 31, and enacted provisions set out as notes under section 1101 and 1115 of Title 31. For complete classification of this Act to the Code, see

Short Title

of 1993 Amendment note set out under section 1101 of Title 31 and Tables.

Amendments

2002—Subsec. (a)(2)(A). Pub. L. 107–217 substituted “subtitle III of title 40” for “division E of the Clinger-Cohen Act of 1996 (Public Law 104–106; 110 Stat. 679)”.

§9508 General Workforce Performance Management System