The Department of Veterans Affairs and OPM have proposed pay for performance pilot project for assistant medical center directors, associate medical center directors, and deputy network directors in the GS-0670 Health Systems Administrator series at the GS-14/15 grade levels.
According to a notice in the June 18 Federal Register, the project would eliminate the 10 fixed steps within each of the 15 GS grades and make annual GS pay adjustments performance-sensitive.
It said the project is meant to test the application of meaningful distinctions in levels of performance to the allocation of annual pay increases under the GS system.
Employees not rated at least fully successful would get no pay increase, something DVA and OPM said would amount to a more prudent use of limited resources.
Pay adjustments would be funded from a pay pool consisting of the amounts that would otherwise be used to pay the annual GS pay adjustment, within grade increases, and quality step increases to employees covered by the demonstration project.
A share mechanism will be used to allocate pay increases among employees with different levels of performance.
