Some Details Still to Come

The budget specifies that under the performance fund plan, the current general schedule system would remain unchanged and individual employees would remain at their existing levels and on schedule for all routine pay raises such as within-grade raises. Any pay increase received from the fund would be treated as increases to base pay for retirement and other purposes and would stay with an employee throughout his or her career. However, the exact workings of the program-such as the standards OPM will apply in considering whether an agency has and adequate program for awarding performance pay-remain unannounced. The administration plans to send a detailed legislative proposal to Capitol Hill soon.