Federal Manager's Daily Report

The National Defense Authorization Act for fiscal year 2004

provides for a number of changes regarding pay and leave


administration, benefits and other policies, the Office of

Personnel Management said in a memorandum for human

resources officers.

It said the act allows the Secretary of Defense and the

Director of OPM to establish a new human resources

management system (including a new labor relations system)

for Department of Defense employees.

As for mobilized federal civilian employees performing

full-time military service in support of a contingency

operation, they get 22 days of military leave each calendar

year, and their pay must be credited against any federal

civilian pay the employee received during the 22 workdays

of military leave. The employee is also entitled to the

greater of civilian or military pay, but an employee can

take annual leave instead of military leave and retain both

civilian and military pay, said OPM.

The act says executive agencies must conduct an annual

employee survey to assess executive leadership and

management practices, and employee satisfaction, for which

OPM will issue implementation regulations in 2004.

The act also states the senior executive service is

entering a performance based pay system for which

locality-based comparability payments are discontinued.

(A separate memo on the new SES pay system is available at


For additional information, agency chief human capital

officers or HR directors should contact OPM human capital

officers, and employees should contact their agency HR

offices for assistance.

For the full memo go to