This bill establishes a 5-year pilot program that ties federal employee pay to individual performance, affecting mid-to-senior level federal workers (grades GS-11 through GS-15 and above) in positions with measurable job duties like project management, IT, finance, and customer service. Between 1 and 10 percent of eligible employees at each federal agency would participate, with agencies able to opt out only for national security or public safety reasons. Under the program, employees who exceed performance expectations would receive a 15 percent salary increase, those who meet expectations would receive no adjustment, and those falling short would face a 15 percent pay cut along with required training to improve. The pilot excludes participating employees from regular federal pay raises, step increases, and performance bonuses available under current law, though agencies may offer non-monetary benefits like flexible scheduling and telework. The bill requires no new funding, directing agencies to use existing budgets, and mandates annual reports to Congress assessing the program's impact on productivity, employee satisfaction, and federal budgets.
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