Page:United States Statutes at Large Volume 117.djvu/1659

 117 STAT. 1640

PUBLIC LAW 108–136—NOV. 24, 2003

207(c)(2)(A)(ii) of that title, and again when employment or service in the covered position is terminated.’’. (3) The table of sections for chapter 73 of title 5, United States Code, is amended by adding after the item relating to section 7301 the following: ‘‘7302. Post-employment notification.’’. 5 USC 5304 note.

(c) EFFECTIVE DATE AND APPLICABILITY.—(1) The amendments made by this section shall take effect on the first day of the first pay period beginning on or after the first January 1 following the date of the enactment of this section. (2) The amendments made by subsection (a) may not result in a reduction in the rate of basic pay for any senior executive during the first year after the effective date of those amendments. (3) For the purposes of paragraph (2), the rate of basic pay for a senior executive shall be deemed to be the rate of basic pay set for the senior executive under section 5383 of title 5, United States Code, plus applicable locality pay paid to that senior executive, as of the date of the enactment of this Act. (4) Until otherwise provided by law, or except as otherwise provided by this section, any reference in a provision of law to a rate of basic pay that is above the minimum payable and below the maximum payable to a member of the Senior Executive Service shall be considered a reference to the rate of basic pay payable for level IV of the Executive Schedule.

5 USC 4701 note.

SEC. 1126. DESIGN ELEMENTS OF PAY-FOR-PERFORMANCE SYSTEMS IN DEMONSTRATION PROJECTS.

A pay-for-performance system may not be initiated under chapter 47 of title 5, United States Code, after the date of the enactment of this Act, unless it incorporates the following elements: (1) Adherence to merit principles set forth in section 2301 of such title. (2) A fair, credible, and transparent employee performance appraisal system. (3) A link between elements of the pay-for-performance system, the employee performance appraisal system, and the agency’s strategic plan. (4) A means for ensuring employee involvement in the design and implementation of the system. (5) Adequate training and retraining for supervisors, managers, and employees in the implementation and operation of the pay-for-performance system. (6) A process for ensuring ongoing performance feedback and dialogue between supervisors, managers, and employees throughout the appraisal period, and setting timetables for review. (7) Effective safeguards to ensure that the management of the system is fair and equitable and based on employee performance. (8) A means for ensuring that adequate agency resources are allocated for the design, implementation, and administration of the pay-for-performance system. 5 USC 1101 note.

SEC. 1127. FEDERAL FLEXIBLE BENEFITS PLAN ADMINISTRATIVE COSTS.

(a) IN GENERAL.—Notwithstanding any other provision of law, an agency or other employing entity of the Government which

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