Page:United States Statutes at Large Volume 92 Part 1.djvu/1235

 PUBLIC LAW 95-454—OCT. 13, 1978

92 STAT. 1181

"§ 5402. Merit pay system

5 USC 5402.

" (a) In accordance with the purpose set forth in section 5401(a)(1) of this title, the Office of Personnel Management shall establish a merit pay system which shall provide for a range of basic pay for each grade to which the system applies, which range shall be limited by the minimum and maximum rates of basic pay payable for each grade under chapter 53 of this title. " (b)(1) Under regulations prescribed by the Office, the head of each agency may provide for increases within the range of basic pay for any employee covered by the merit pay system. "(2) Determinations to provide pay increases under this subsection— "(A) may take into account individual performance and organizational accomplishment, and "(B) shall be based on factors such as— "(i) any improvement in efficiency, productivity, and quality of work or service, including any significant reduction '-^ in paperwork; "(ii) cost efficiency; '; "(iii) timeliness of performance; and "(iv) other indications of the effectiveness, productivity, and quality of performance of the employees for whom the employee is responsible; "(C) sihall be subject to review only in accordance with and to the extent provided by procedures established by the head of the agency; and "(D) shall be made in accordance with regulations issued by the Office which relate to the distribution of increases authorized under this subsection. "(3) For any fiscal year, the head of any agency may exercise authority under paragraph (1) of this subsection only to the extent of the funds available for the purpose of this subsection. " (4) The funds available for the purpose of this subsection to the head of any agency for any fiscal year shall be determined before the beginning of the fiscal year by the Office on the basis of the amount estimated by the Office to be necessary to reflect— "(A) within-grade step increases and quality step increases which would have been paid under subchapter III of chapter 53 of this title during the fiscal year to the employees of the agency covered by the merit pay system if the employees were not so covered; and "(B) adjustments under section 5305 of this title which would have been paid under such subchapter during the fiscal year to such employees if the employees were not so covered, less an amount reflecting the adjustment under subsection (c)(1) of this section in rates of basic pay payable to the employees for the fiscal year. " (c)(1) Effective at the beginning of the first applicable pay period commencing on or after the first day of the month in which an adjustment takes effect under section 5305 of this title, the rate of basic pay for any position under this chapter shall be adjusted by an amount equal to the greater of— "(A) one-half of the percentage of the adjustment in the annual rate of pay which corresponds to the percentage generally

Establishment,

5 USC 5301 ^«9-

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.

5 USC 5331. 5 USC 5305.

Effective date,

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