White House Plan Would Shift Pay Funds

Under the Bush administration’s proposed overhaul of federal pay setting—which would apply to both white- and blue-collar employees—performance would play a major role in determining an employee’s annual raise, with the highest-rated performers getting by far the lion’s share. The plan, which exists as draft legislation yet to be introduced in Congress, would put employees into broad pay bands, and pool the money currently used for regular within-grade raises, “quality” step increases and promotions and divide that money into shares. An employee with an “outstanding” rating would get three shares, one with an “exceeds fully successful” rating two shares, and one with a “fully successful” rating one share. Pay supplements currently paid, such as firefighter pay, hazardous duty pay, physicians’ comparability allowances and numerous others, also would remain available.