Civil Service Reform Proposals: A Side-by-Side Comparison of S. 129 (108th Congress) with Current Law

CRS Report for Congress
Federal Workforce Flexibilities:
A Side-by-Side Comparison of S. 129
th
(108 Congress) with Current Law
Updated June 30, 2004
Barbara L. Schwemle
Analyst in American National Government
Government and Finance Division

Congressional Research Service ˜ The Library of Congress

Federal Workforce Flexibilities:
A Side-by-Side Comparison of
S. 129 (108^th Congress) with Current Law
Summary
A bill related to the management of the federal workforce is being considered
by the 108^th Congress. S. 129, the Federal Workforce Flexibility Act of 2003, passed
the Senate with an amendment by unanimous consent on April 8, 2004. In the
House, the Subcommittee on Civil Service and Agency Organization forwarded S.
129 to the House Committee on Government Reform on May 18, 2004, after
amending it by voice vote. On June 24, 2004, the House committee ordered the bill
to be reported to the House of Representatives, after amending it, by voice vote. The
bill was introduced by Senator George Voinovich on January 9, 2003. A similar bill,
H.R. 1601, the Federal Workforce Flexibility Act of 2003, was introduced in the
House of Representatives by Representative Jo Ann Davis on April 3, 2003.
S. 129, as passed by the Senate and as ordered to be reported to the House,
would amend current law provisions on critical pay, civil service retirement system
computation for part-time service, agency training, and annual leave. The bill also
would amend current law provisions on recruitment and relocation bonuses and
retention allowances (which would be renamed bonuses). As ordered to be reported
to the House, S. 129 would amend the current 5 U.S.C. §§5753 and 5754 language
on such bonuses and allowances. As passed by the Senate, it would add new sections
5754a and 5754b on recruitment, relocation, and retention bonuses to Title 5 United
States Code. Therefore, if S. 129, as passed by the Senate, were enacted, agencies
would be able to use the current law provisions on recruitment and relocation
bonuses and retention allowances at 5 U.S.C. §§5753 and 5754 and the enhanced
authority for recruitment, relocation, and retention bonuses proposed at 5 U.S.C.
§§5754a and 5754b.
S. 129, as ordered to be reported to the House, would amend current law
provisions on pay administration. These amendments were included in S. 129, as
introduced, but they were dropped during Senate committee markup and are not
included in the Senate-passed version of the bill. Provisions that would amend
current law on retirement service credit for cadet or midshipman service and
compensatory time off for travel were added to S. 129 during Senate committee
markup and are included in the legislation as passed by the Senate and as ordered to
be reported to the House. Added during Senate Committee markup as well were
provisions on Senior Executive Service authority for the White House Office of
Administration that are in the Senate-passed bill, but are not in the legislation as
ordered to be reported to the House. Other provisions that would have amended
current law provisions relating to contributions to the Thrift Savings Plan, annuity
commencement dates, and retirement for air traffic controllers were included in S.
129, as forwarded by the House Civil Service and Agency Organization
Subcommittee to the House Government Reform Committee, but were removed
during the full committee markup.
This report compares each of the provisions in S. 129, as passed by the Senate
and as ordered to be reported to the House, with current law.

Contents
In troduction ......................................................1
Table 1. S. 129 Provisions Compared with Current Law...................5
Title 5 — Government Organization and Employees..................5
Chapter 41 — Training.....................................5
Chapter 45 — Incentive Awards..............................7
Chapter 53 — Pay Rates and Systems..........................7
Chapter 55 — Pay Administration............................23
Chapter 57 — Recruitment, Relocation, and Retention Bonuses....24
Chapter 63 — Leave......................................41
Chapter 83 — Civil Service Retirement System;
and Chapter 84 — Federal Employees’ Retirement System....44
Title 3 — The President........................................45

Federal Workforce Flexibilities:
A Side-by-Side Comparison of
th
S. 129 (108 Congress) with Current Law
Introduction
As in the previous Congress, management of the federal workforce continues
to be an issue of interest to the Senate and the House of Representatives in the 108^th
Congress. S. 129, the Federal Workforce Flexibility Act of 2003, passed the Senate
with an amendment by unanimous consent on April 8, 2004. Senator George
Voinovich introduced the bill on January 9, 2003, and it was referred to the Senate
Committee on Governmental Affairs. On October 22, 2003, the committee ordered
the bill to be reported with an amendment in the nature of a substitute; and it was
reported on January 27, 2004.¹ The committee substitute, as amended, was agreed
to by unanimous consent on April 8, 2004. In the House of Representatives, the
Subcommittee on Civil Service and Agency Organization of the House Committee
on Government Reform marked up S. 129 on May 18, 2004. Before forwarding the
legislation to the full committee, the subcommittee agreed by voice vote to an
amendment in the nature of a substitute offered by Representative Jo Ann Davis and
en bloc amendments offered by Representative Danny Davis. On June 24, 2004, the
House committee ordered the bill to be reported to the House of Representatives by
voice vote, after agreeing, by voice vote, to an amendment in the nature of a
substitute offered by Representative Jo Ann Davis.
Another bill related to management of the federal workforce was introduced in
the House of Representatives on April 3, 2003. Representative Jo Ann Davis
introduced H.R. 1601, the Federal Workforce Flexibility Act of 2003, and it was
referred to the House Committee on Government Reform. As introduced, S. 129 and
H.R. 1601 were identical except for one provision relating to personnel
demonstration projects.² On April 8, 2003, the Subcommittee on Oversight of
Government Management, the Federal Workforce, and the District of Columbia of
the Senate Committee on Governmental Affairs, along with the Subcommittee on
Civil Service and Agency Organization of the House Committee on Government
Reform, conducted a joint hearing on the federal government’s human capital

¹ U.S. Congress, Senate Committee on Governmental Affairs, Federal Workforce Flexibility
Act of 2003, report to accompany S. 129, 108^th Cong., 2^nd sess., S.Rept. 108-223
(Washington: GPO, 2004).
² Under S. 129, as introduced, OPM would have submitted a recommendation to Congress
as to whether a demonstration project should be made permanent before the end of five
years. This provision was dropped from the bill during markup by the Senate Committee
on Governmental Affairs on October 22, 2003. H.R. 1601 would require the
recommendation to be made at or before the end of seven years.

challenge.³ A hearing that included discussion of H.R. 1601 was conducted by the
House Subcommittee on Civil Service and Agency Organization on February 11,
2004.⁴ Both S. 129 and H.R. 1601 include a number of the provisions that were in
S. 2651, the Federal Workforce Improvement Act of 2002, introduced by Senator
Voinovich in the 107^th Congress. Several of the S. 2651 provisions, including those
on agency Chief Human Capital Officers, alternative ranking and selection
procedures, voluntary separation incentive payments, the repeal of recertification
requirements for the Senior Executive Service, academic degree training, and
modifications to the National Security Education Program, were enacted in P.L. 107-
296, Homeland Security Act of 2002, signed by President George Bush on November

25, 2002 and are applicable governmentwide.⁵

S. 129, as passed by the Senate and as ordered to be reported to the House,
would amend current law provisions on critical pay, civil service retirement system
computation for part-time service, agency training, and annual leave. The bill also
would amend current law provisions on recruitment and relocation bonuses and
retention allowances (which would be renamed bonuses). As ordered to be reported
to the House, S. 129 would amend the current 5 U.S.C. §§5753 and 5754 language
on such bonuses and allowances. As passed by the Senate, it would add new sections
5754a and 5754b on recruitment, relocation, and retention bonuses to Title 5 United
States Code. Therefore, if S. 129, as passed by the Senate, were enacted, agencies
would be able to use the current law provisions on recruitment and relocation
bonuses and retention allowances at 5 U.S.C. §§5753 and 5754 and the enhanced
authority for recruitment, relocation, and retention bonuses proposed at 5 U.S.C.
§§5754a and 5754b.⁶
S. 129, as ordered to be reported to the House, would amend current law
provisions on pay administration. These amendments were included in S. 129, as
introduced, but they were dropped during Senate committee markup and are not
included in the Senate-passed version of the bill. Provisions that would amend
current law on retirement service credit for cadet or midshipman service and
compensatory time off for travel were added to S. 129 during Senate committee
markup and are included in the legislation as passed by the Senate and as ordered to

³ U.S. Congress, Senate Committee on Governmental Affairs, Subcommittee on Oversight
of Government Management, the Federal Workforce and the District of Columbia and
House Committee on Government Reform, Subcommittee on Civil Service and Agency
Organization, The Human Capital Challenge: Offering Solutions and Delivering Results,^th^st
hearing, 108 Cong., 1 sess., April 8, 2003 (Washington: GPO, 2003).
⁴ U.S. Congress, House Committee on Government Reform, Subcommittee on Civil Service
and Agency Organization, Esprit de Corps: Recruiting and Retaining America’s Best for^th^nd
the Federal Civil Service, Hearing, 108 Cong., 2 sess., Feb. 11, 2004 (unpublished).
⁵ For a discussion of these provisions, see CRS Report RL31500, Homeland Security:
Human Resources Management, by Barbara L. Schwemle.
⁶ According to staff of the Senate Committee on Governmental Affairs, the current authority
at 5 U.S.C. 5753 and 5754 allows political appointees to be eligible for recruitment and
relocation bonuses and retention allowances. S. 129, as passed by the Senate, would provide
enhanced recruitment, relocation, and retention bonuses, but political appointees would be
excluded from being eligible for the enhanced bonuses.

be reported to the House. Added during Senate Committee markup as well were
provisions on Senior Executive Service authority for the White House Office of
Administration that are in the Senate-passed bill, but are not in the legislation as
ordered to be reported to the House (the provisions were removed from the House
version of the bill during the full House committee markup). Other provisions that
would have amended current law provisions relating to contributions to the Thrift
Savings Plan, annuity commencement dates, and retirement for air traffic controllers
were included in S. 129, as forwarded by the House Civil Service and Agency
Organization Subcommittee to the House Government Reform Committee, but were
removed during the full committee markup.
In the 107^th Congress, Senator Voinovich introduced S. 1603, the Federal
Human Capital Act of 2001, on October 31, 2001 and S. 1639, the Federal Employee
Management Reform Act of 2001, on November 6, 2001. Senator Fred Thompson
introduced S. 1612, the Managerial Flexibility Act of 2001, on November 1, 2001.⁷
The bills were referred to the Senate Committee on Governmental Affairs.
Representative Constance Morella introduced H.R. 4580, the Good People, Good
Government Act, on April 24, 2002, and it was referred to the House Committee on
Government Reform. Earlier, on October 15, 2001, the Administration of President
George W. Bush submitted a legislative proposal entitled The Managerial Flexibility
Act of 2001 to Congress. The Office of Management and Budget (OMB) described
the proposal as “a key component of the Bush Administration’s ‘Freedom to Manage’
initiative . . . to eliminate legal barriers to effective management.”⁸ The proposal
included provisions on personnel management flexibilities, including voluntary
separation incentive payments, voluntary early retirement, recruitment and retention
bonuses and relocation allowances, academic degrees, the Senior Executive Service,
personnel management demonstration projects, and direct hire.
On March 18 and 19, 2002, the Subcommittee on International Security,
Proliferation, and Federal Services of the Senate Committee on Governmental
Affairs conducted hearings on several of the civil service bills. Following the
hearings, Senator Voinovich, joined by Senators Thompson and Cochran, revised
some of the provisions in S. 1603 and S. 1639, as introduced, and merged them into
one bill, S. 2651. As mentioned above, several of the S. 2651 provisions were
enacted in P.L. 107-296. No further action was taken on any of the other 107^th
Congress bills.
This report compares each of the provisions in S. 129, as passed by the Senate
and as ordered to be reported to the House, with current law. The information in this
report is presented according to the sequential organization of Title 5 United States

⁷ For a discussion of the provisions of S. 1603, S. 1639, and S. 1612, see CRS
Memorandum, Civil Service Reform Proposals, coordinated by Sharon S. Gressle.
Available from CRS.
⁸ U.S. Office of Management and Budget, OMB News Release 2001-47, “President Bush
Proposes Legislation to Improve Management of Federal Agencies,” Oct. 15, 2001.
Available at [http://www.whitehouse.gov/omb/pubpress/2001-47.html], visited June 30,

2004. Senator Fred Thompson introduced S. 1613, the Freedom to Manage Act, on Nov.

1, 2001, and it was referred to the Senate Committee on Governmental Affairs.

Code as current law. Patrick Purcell, Specialist in Social Legislation, Domestic
Social Policy Division, Congressional Research Service (CRS), prepared the rows
in Table 1 on retirement provisions under 5 U.S.C. Chapters 83 and 84. L. Elaine
Halchin, Analyst in American National Government, Government and Finance
Division, CRS, prepared the rows in Table 1 on Senior Executive Service Authority
for the White House Office of Administration under 3 U.S.C. Chapter 2.

CRS-5
Table 1. S. 129 Provisions Compared with Current Law
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
Title 5 — Government Organization and Employees
Chapter 41 — Training
Section 4103. Establishment of trainingSec. 201, Agency TrainingSec. 201, Agency Training
programs. Sec. 201(a), Training to accomplish Sec. 201(a), Training to accomplish
ⁱ^{ki/CRS-RL31516}performance plans and strategic goals,would amend 5 U.S.C. §4103 by adding aperformance plans and strategic goalsSame provision, but does not include the
^g/w
^s^.ornew paragraph (c), which would providewords “on a regular basis.”
^le^akthat each agency head would, on a regular
basis, (1) evaluate each program or plan
^://wikiestablished, operated, or maintained under 5
^h^ttpU.S.C. §4103(a) with respect to
accomplishing specific performance plans
and strategic goals in performing the agency
mission; and (2) modify such program or
plan as needed to accomplish such plans
and goals.
Chapter 41 — Training.No similar provision Sec. 201(b), Agency training officer;
Authorizes training for federal employees.specific training programs, would amend
5 U.S.C. Chapter 41 by adding a new
section:

CRS-6
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
Sec. 4120, Agency training officer,
would provide that each agency would
appoint or designate a training officer who
would be responsible for developing,
coordinating, and administering training
for the agency.
ⁱ^{ki/CRS-RL31516}Chapter 41 — Training. Authorizes training for federal employees. Sec. 201(b), Specific trainingprograms, would amend 5 U.S.C. ChapterSec. 201(b), Agency training officer;specific training programs, would amend
^g/w41 by adding a new section:5 U.S.C. Chapter 41 by adding a new
^s^.or
^le^ak section:
Sec. 4121, Specific training programs, Sec. 4121, Specific training
^://wikiwould provide that in consultation withprograms, which would provide the same,
^h^ttpOPM, each agency head would establish (1)except as noted.
a comprehensive management succession
program to provide training to employees to
develop managers for the agency; and (2) a
program to train managers on actions,
options, and strategies a manager could use
in (A) relating to employees with
unacceptable performance; (B) mentoring
employees and improving performance and
productivity; and (C) conducting employee(C) No similar provision

performance appraisals.

CRS-7
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
Chapter 45 — Incentive Awards
Section 4505a. Performance-based cash Sec. 301(c), Repeal, would amend 5No similar provision
awards.U.S.C. §4505a(a)(2) by striking
(B) For purposes of computing a percentagesubparagraph (B).
of a rate of basic pay under subparagraph (A),
(on cash awards) the rate of basic pay used
ⁱ^{ki/CRS-RL31516}shall be determined without taking intoaccount any locality-based comparability
^g/wpayment under 5 U.S.C. §5304.
^s^.or
^le^akChapter 53 — Pay Rates and Systems
^://wikiSection 5302. Definitions.Sec. 301, Corrections Relating to PayNo similar provision

^h^ttp Sec. 5302(8) defines terms on GeneralAdministration
Schedule (GS) rates of pay as the rates set Sec. 301(a)(1) would amend 5 U.S.C.
forth in the GS and, for an employee§5302(8) to provide that “rates of pay under
receiving retained pay, the basic pay under 5the General Schedule” (GS), “rates of pay
U.S.C. §5363.for the GS,” or “scheduled rates of basic
pay” would mean the rates of basic pay
under the GS as established by 5 U.S.C.
§5332, excluding pay under 5 U.S.C. §5304
and any other additional pay of any kind.

CRS-8
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
Section 5304. Locality-basedSec. 302, Technical CorrectionsNo similar provision
comparability payments. Sec. 302(a)(1) would amend (A) 5
Sec. 5304(g)(2)(A) provides thatU.S.C. §5304(g)(2)(A) to provide that the
Executive Schedule level III is the maximumprovision would apply to senior-level,
total pay for senior-level, Senior ExecutiveSenior Executive Service (SES), and FBI
Service (SES), FBI and DEA SES, andand DEA SES positions.
administrative law judge positions. Sec. 302(a)(2) would provide that the
ⁱ^{ki/CRS-RL31516}amendments made by this subsection would
^g/wtake effect as if included in the enactment of
^s^.orP.L. 108-136.
^le^ak
Section 5305. Special pay authority. Sec. 301(a)(2)(A) would amend 5 U.S.C.No similar provision

^://wiki Sec. 5305(a) authorizes the President to§5305(a) to provide that (a)(1) OPM could
^h^ttpestablish special pay rates. A minimum rateestablish special pay rates. A minimum rate
could not exceed the maximum statutory paycould not exceed the maximum basic pay
rate for the grade or level by more than 30%rate (excluding locality-based comparability
and no rate may exceed level V of thepayments) for the grade or level by more
Executive Schedule. The President maythan 30% and no rate could exceed level IV
delegate the authority to OPM, or to anotherof the Executive Schedule. For individuals
agency for individuals not subject to Title 5.not subject to Title 5 provisions governing
appointment in the competitive service, the
President could designate another agency to
authorize special rates under this section.
(2) The agency head could determine that a
category of agency employees would not be
covered by a special rate authorization. The

CRS-9
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
agency head would provide written notice
to OPM (or other agency designated by the
President to authorize special rates under
the last sentence of paragraph (1)) which
identifies the specific category or categories
of employees that will not be covered by
special rates. If the agency head removes a
ⁱ^{ki/CRS-RL31516}category of employees from coverage after
^g/wthe special rate authorization takes effect,
^s^.orthe loss of coverage would take effect on
^le^akthe first day of the first pay period after the
notice date.
^://wiki
^h^ttp Sec. 5305(b)(4): any other circumstances Sec. 301(a)(2)(B) would amend 5 U.S.C.No similar provision
which the President (or an agency duly§5305(b)(4) to read: (4) any other
authorized or designated by the President incircumstances which OPM (or such other
accordance with the last sentence ofagency as the President may under the last
subsection (a)) considers appropriate.sentence of subsection (a)(1) designate)
considers appropriate.
Sec. 5305(d): ... rates of pay established Sec. 301(a)(2)(C) would amend 5 U.S.C.No similar provision

under this Sec. may be revised from time to§5305(d), (i) by striking “President” and
time by the President or by such agency as heinserting “Office of Personnel
may designate ....Management” and (ii) by striking “or by
such agency as he may designate” and

CRS-10
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
inserting “(or by such other agency as the
President may designate under the last
sentence of subsection (a)(1).”
Sec. 5305(e): an increase in a rate of Sec. 301(a)(2)(D) would amend 5 U.S.C.No similar provision
basic pay established under this section is not§5305(e) by striking “basic pay” and
an equivalent increase in pay within theinserting “pay.”
ⁱ^{ki/CRS-RL31516}meaning of Sec. 5335.
^g/w Sec. 5305(f) covers adjustment of special Sec. 301(a)(2)(E) would amend 5 U.S.C.No similar provision
^s^.orpay rates, under conversion rules prescribed§5305(f) to provide that when special rates
^le^akby the President or such agency heare adjusted under subsection (d), a covered
^://wikidesignates, when statutory pay rates increase.employee’s special rate would be adjusted
^h^ttpin accordance with conversion rules
prescribed by OPM (or by such other
agency as the President may under the last
sentence of subsection (a)(1) designate.
Sec. 5305(g)(1): ... any comparability Sec. 301(a)(2)(F) would amend 5 U.S.C.No similar provision

payments ... shall be available to individuals§5305(g)(1), (i) by striking “basic pay” and
receiving rates of basic pay established underinserting “pay” and (ii) by striking
this Sec. to such extent as the President (or“President (or his designated agency)” and
his designated agency) considersinserting “Office of Personnel Management
appropriate....(or such other agency as the President may
under the last sentence of subsection (a)(1)
desi gn at e).”

CRS-11
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
Sec. 5305(h): pay cannot be less than Sec. 301(a)(2)(G) would amend 5 U.S.C.No similar provision
basic (including locality pay) payable if§5305(h) to provide that an employee
special pay were not available.would not for any purpose be considered to
be entitled to a rate of pay established under
this section with respect to any period for
which such employee is entitled to a higher
rate of basic pay under any other provision
ⁱ^{ki/CRS-RL31516}of law. “Basic pay” would include any
^g/wapplicable locality-based comparability
^s^.orpayment under 5 U.S.C. §5304 or similar
^le^akprovision of law.
^://wikiNo similar provision Sec. 301(a)(2)(H) would amend 5 U.S.C.No similar provision

^h^ttp§5305 by adding a new subsection (i) which
would provide that if an employee who is
receiving a rate of pay under this section
becomes subject, by virtue of moving to a
new official duty station, to a different pay
schedule, such employee’s new rate of pay
would be initially established under
conversion rules prescribed by OPM (or
such other agency as the President may
under the last sentence of subsection (a)(1)
designate) in conformance with the
following:

CRS-12
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
(1) First, determine the pay rate to which
such employee would be entitled at the new
official duty station based on such
employee’s position, grade, and step (or
relative position in the rate range) before
the move. (2) Then, if (in addition to the
change in pay schedule) the move also
ⁱ^{ki/CRS-RL31516}involves any personnel action or other
^g/wchange requiring a rate adjustment under
^s^.orany other provision of law, rule, or
^le^akregulation, apply the applicable rate
adjustment provisions, treating the rate
^://wikidetermined under paragraph (1) as if it were
^h^ttpthe rate last received by the employee
before the rate adjustment.
No similar provision Sec. 301(a)(2)(H) would amend 5 U.S.C.No similar provision

§5305 by adding a new subsection (j) which
would provide that a rate determined under
a special rates schedule would be part of
basic pay for purposes of civil service
retirement, federal employees’ retirement
system, life insurance, premium pay,
miscellaneous allowances, and for such
other purposes as may be expressly
provided for by law or as OPM could
prescribe by regulation.

CRS-13
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
Section 5305, note: Sec. 301(b), Special rates for lawNo similar provision
Federal Law Enforcement Pay Reform Actenforcement officers, would amend Sec.
of 1990.403(c) by striking the current language and
... in the same manner as rates establishedinserting: “and shall be basic pay for all
under 5 U.S.C. §5305, as so amended, andpurposes. The rates shall be adjusted at the
may be increased in accordance with 5 U.S.C.time of adjustments in the General Schedule
§5305(f). [Sec. 403(c) of the Federalto maintain the step linkage set forth in
ⁱ^{ki/CRS-RL31516}Employees Pay Comparability Act of 1990subsection (b)(2).”
^g/w(104 Stat. 1465; 5 U.S.C. §5305 note)]
^s^.or
^le^ak Sec. 5305, note: authorizes relocation Sec. 101(b), Relocation payments,No similar provision
payments for law enforcement officers. [Sec.would repeal Sec. 407.
^://wiki407 of the Federal Employees Pay
^h^ttpComparability Act of 1990 (104 Stat. 1467; 5
U.S.C. §5305 note)]
Section 5314. Positions at level III Sec. 302(b) would amend 5 U.S.C.No similar provision
(Executive Schedule).§5314 by adding: “Administrator of the
Office of Electronic Government.”
Section 5334. Rate on change of position Sec. 301(a)(3)(A) would amend 5 U.S.C.No similar provision

or type of appointment; regulations. (Pay)§5334(b), (A) by adding new text providing
Sec. 5334(b) covers employee entitlementthat if an employee’s rate after promotion or
to basic pay rates upon promotion or transfertransfer is greater than the maximum rate of
to a higher grade.basic pay for his or her grade, that rate
would be treated as a retained rate. OPM
would prescribe regulations on the

CRS-14
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
circumstances under which and the extent to
which special rates or locality-adjusted rates
would be considered to be basic pay in
applying this subsection.
No similar provision Sec. 301(a)(3)(B) would amend 5 U.S.C.No similar provision

§5334, by adding a new subsection (g)
ⁱ^{ki/CRS-RL31516}providing that in the case of an employeewho (1) moves to a new official duty
^g/wstation, and (2) by virtue of such move,
^s^.or
^le^akbecomes subject to a different pay schedule,
any rate adjustment under the preceding
^://wikiprovisions of this section, with respect to
^h^ttpsuch employee in connection with such
move, would be made (A) first, by
determining the rate of pay to which such
employee would be entitled at the new
official duty station based on such
employee’s position, grade, and step (or
relative position in the rate range) before
the move, and (B) then, by applying the
provisions of this section that would
otherwise apply (if any), treating the rate
determined under subparagraph (A) as if it
were the rate last received by the employee
before the rate adjustment.

CRS-15
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
Subchapter VI — Grade and Pay Sec. 301(a)(4)(A) would amend 5 U.S.C.No similar provision
Retention.§5361 by amending paragraph (4) to
Section 5361. Definitions.provide that “rate of basic pay” would mean
(4) “Rate of basic pay” means, in the case of a(A) the rate of basic pay payable to an
prevailing rate employee, the scheduled rateemployee under law or regulations before
of pay determined under 5 U.S.C. 5343.any deductions or additions of any kind, but
including (i) any applicable locality-based
ⁱ^{ki/CRS-RL31516}comparability payment or (ii) any
^g/wapplicable special pay and (iii) subject to
^s^.orsuch regulations as OPM could prescribe,
^le^akany applicable existing retained rate of pay;
and (B) in the case of a prevailing rate
^://wikiemployee, the scheduled rate of pay
^h^ttpdetermined under 5 U.S.C. §5343.
Sec. 301(a)(4)(D) would amend 5 U.S.C.
§5361 by adding at the end the following:
(8) “retained rate” would mean the rate of
basic pay to which an employee is entitled
under 5 U.S.C. §5363(b)(2).
Section 5363. Pay Retention. Sec. 301(a)(5)(A) would amend 5 U.S.C.No similar provision

Sec. 5363(a), matter following paragraph§5363(a) by striking the matter following
(4): ... is entitled to basic pay at a rate equalparagraph (4) and inserting: “is entitled to a
to (A) the employee’s allowable former raterate of basic pay in accordance with
of basic pay, plus (B) 50 % of the amount ofregulations prescribed by OPM in

CRS-16
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
each increase in the maximum rate of basicconformity with the provisions of this
pay payable for the grade of the employee’ssection.”
position immediately after such reduction in
pay if such allowable former rate exceeds
such maximum rate for such grade.
Sec. 5363(b): For the purpose of Sec. 301(a)(5)(B) would amend 5 U.S.C.No similar provision

ⁱ^{ki/CRS-RL31516}subsection (a) of this section, “allowableformer rate of basic pay” means the lower of §5363 by striking subsection (b) andinserting: “(b)(1)(A) If, as a result of any
^g/w— (1) the rate of basic pay payable to theevent described in subsection (a), the
^s^.or
^le^akemployee immediately before the reduction inemployee’s former rate of basic pay is less
pay; or (2) 150 % of the maximum rate ofthan or equal to the maximum rate of basic
^://wikibasic pay payable for the grade of thepay payable for the grade of the employee’s
^h^ttpemployee’s position immediately after suchposition immediately after the occurrence of
reduction in pay.the event involved, the employee is entitled
to basic pay at the lowest rate of basic pay
payable for such grade that equals or
exceeds such former rate of basic pay. (B)
This section shall cease to apply to an
employee to whom subparagraph (A)
applies once the appropriate rate of basic
pay has been determined for such employee
under this paragraph.”
“(2)(A) If, as a result of any event described
in subsection (a), the employee’s former
rate of basic pay is greater than the

CRS-17
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
maximum rate of basic pay payable for the
grade of the employee’s position
immediately after the occurrence of the
event involved, the employee is entitled to
basic pay at a rate equal to the lesser of (i)
the employee’s former rate of basic pay; or
(ii) 150 percent of the maximum rate of
ⁱ^{ki/CRS-RL31516}basic pay payable for the grade of the
^g/wemployee’s position immediately after the
^s^.oroccurrence of the event involved, as
^le^akadjusted by subparagraph (B). (B) A rate to
which an employee is entitled under this
^://wikiparagraph shall be increased at the time of
^h^ttpany increase in the maximum rate of basic
pay payable for the grade of the employee’s
position by 50 percent of the dollar amount
of each such increase.”
(3) “Former rate of basic pay,” as used with
respect to an employee in connection with
an event described in subsection (a), would
mean the rate of basic pay last received by
such employee before the occurrence of
such event.

CRS-18
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
Sec. 5363(c) provides that pay retention Sec. 301(a)(5)(B) would amend 5 U.S.C.No similar provision

ceases to apply to an employee who has a§5363 by striking subsection (c) and
break in service of one workday or more; isinserting: “(c)(1) Notwithstanding any
entitled to a basic pay rate which is equal toother provision of this section, in the case of
or higher than, or declines a reasonable offeran employee who (A) moves to a new
of a position whose basic pay rate is equal toofficial duty station, and (B) in conjunction
or higher than, the rate to which the employeewith such move, becomes subject to both a
ⁱ^{ki/CRS-RL31516}is entitled under pay retention; or is demoteddifferent pay schedule and (disregarding
^g/wfor personal cause or at the employee’sthis subsection) the preceding provisions of
^s^.orrequest.this section, this section shall be applied (i)
^le^akfirst, by determining the rate of pay to
which such employee would be entitled at
^://wikithe new official duty station based on such
^h^ttpemployee’s position, grade, and step (or
relative position in the pay range) before the
move, and (ii) then, by applying the
provisions of this section that would apply
(if any), treating the rate determined under
clause (i) as if it were the rate last received
by the employee before the application of
this section. (2) A reduction in an
employee’s rate of basic pay resulting from
a determination under paragraph (1)(ii) is
not a basis for an entitlement under this
section. (3) The rate of basic pay for an
employee who is receiving a retained rate at

CRS-19
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
the time of moving to a new official duty
station at which different pay schedules
apply shall be subject to regulations
prescribed by OPM consistent with the
purposes of this section.”
No similar provision Sec. 301(a)(5)(B) would add a newNo similar provision
ⁱ^{ki/CRS-RL31516}subsection (d) at 5 U.S.C. §5363 to providethat a retained rate would be considered part
^g/wof basic pay for purposes of this subchapter
^s^.or
^le^akand for purposes of civil service retirement,
federal employees’ retirement system, life
^://wikiinsurance, premium pay, miscellaneous
^h^ttpallowances, and for such other purposes as
could be expressly provided for by law or as
OPM could prescribe by regulation. OPM
would, for any purpose other than any of
the purposes referred to in the preceding
sentence, prescribe by regulation what
constitutes basic pay for employees
receiving a retained rate.
Sec. 5363(c) provides that pay retention Sec. 301(a)(5)(B) would provide, at 5No similar provision

ceases to apply to an employee who has aU.S.C. §5363(e), that “This section shall
break in service of one workday or more; isnot apply, or shall cease to apply, to an
entitled to a basic pay rate which is equal toemployee who (1) has a break in service of

CRS-20
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
or higher than, or declines a reasonable offer1 workday or more; (2) is entitled, by
of a position whose basic pay rate is equal tooperation of this subchapter, chapter 51 or
or higher than, the rate to which the employee53, or any other provision of law, to a rate
is entitled under pay retention; or is demotedof basic pay which is equal to or higher
for personal cause or at the employee’sthan, or declines a reasonable offer of a
request.position the rate of basic pay for which is
equal to or higher than, the retained rate to
ⁱ^{ki/CRS-RL31516}which the employee would otherwise be
^g/wentitled; or (3) is demoted for personal
^s^.orcause or at the employee’s request.”
^le^ak
Section 5365. Regulations. Sec. 301(a)(6) would amend 5 U.S.C.No similar provision
^://wiki Authorizes OPM to prescribe regulations§5365(b) to provide that, under the
^h^ttpto administer grade and pay retention.regulations, OPM could provide for the
application of all or portions of the
provisions on grade and pay retention
(subject to any conditions or limitations
OPM could establish).
No similar provisionSec. 301, Effective Date; ConversionNo similar provision

Rules
Sec. 301(d)(1) would provide that
Section 301 would take effect on the first
day of the first applicable pay period
beginning on or after the 180^th day after the
act’s enactment.

CRS-21
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
Sec. 301(d)(2) would provide for
conversion rules. (A) Individuals
receiving a retained rate or a rate greater
than the maximum rate for the grade,
Subject to any regulations OPM could
prescribe, an employee under a covered pay
schedule who, on the day before the
ⁱ^{ki/CRS-RL31516}effective date of this section, is receiving a
^g/wretained rate under 5 U.S.C. §5363, or is
^s^.orreceiving under similar authority a rate of
^le^akbasic pay that is greater than the maximum
rate of basic pay payable for the grade of
^://wikithe employee’s position would have that
^h^ttprate converted as of the effective date of
Section 301, and the employee would be
considered to be receiving a retained rate
under 5 U.S.C. §5363 (as amended by
Section 301). The newly applicable
retained rate would equal the formerly
applicable retained rate as adjusted to
include any applicable locality-based
Section 5361. Definitions.comparability payment. (B) “Covered pay
(5) “covered pay schedule” means theschedule” would have the meaning given
General Schedule, any prevailing ratesuch term by 5 U.S.C. §5361.

schedule, or a special occupational pay
system.

CRS-22
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
Section 5377. Pay Authority for CriticalSec. 102, Streamlined Critical PaySec. 102, Streamlined Critical Pay
Positions. Authority Authority
Sec. 5377(c) authorizes OMB, in Sec. 102(1) would amend 5 U.S.C.Same provision
consultation with OPM, to, upon the request§5377(c) to provide that OPM, in
of an agency head, grant authority to fix theconsultation with OMB, would grant the
basic pay rate for one or more positions in theauthority.
agency in accordance with critical pay.
ⁱ^{ki/CRS-RL31516} Sec. 5377(e)(1) provides that the authority Sec. 102(2) would amend 5 U.S.C.Same provision
^g/wto fix the basic pay rate for a position§5377(e)(1) to substitute OPM for OMB.
^s^.or
^le^akterminates whenever OMB determines (in
accordance with such procedures and subject
^://wikito such terms or conditions as OMB
^h^ttpregulations prescribe) that one or more of the
requirements for critical pay are no longer
met.
Sec. 5377(f) provides that OMB may not Sec. 102(2) would amend 5 U.S.C.Same provision

authorize the exercise of critical pay authority§5377(f) to substitute OPM for OMB.
for more than 800 positions at any time, of
which not more than 30 may at any time, be
positions which would otherwise be paid on
the Executive Schedule.

CRS-23
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
Sec. 5377(g) directs OMB to consult with Sec. 102(3) would amend 5 U.S.C.Same provision
OPM before prescribing regulations or§5377(g) to provide that OPM would
making any decision to grant or terminate anyconsult with OMB before making any
critical pay authority.decision to grant or terminate any critical
pay authority. The language relating to
prescribing regulations would be struck.
ⁱ^{ki/CRS-RL31516} Sec. 5377(h) authorizes OMB to reportannually and in writing to the House Sec. 102(4) would amend 5 U.S.C.§5377(h) to substitute OPM for OMB andSame provision
^g/wCommittee on Post Office and Civil Servicethe House Committee on Government
^s^.or
^le^akand the Senate Committee on GovernmentalReform for the House Committee on Post
Affairs on the operation of critical pay.Office and Civil Service.
^://wiki
^h^ttpChapter 55 — Pay Administration
No similar provisionSec. 203, Compensatory Time Off forSec. 203, Compensatory Time Off for
TravelTravel
Sec. 203(a) would amend 5 U.S.C. Sec. 203(a) would amend 5 U.S.C.
Chapter 55, Subchapter V by adding a newChapter 55, Subchapter V by adding a new
Section 5550b at the end.Section 5550b at the end.
Sec. 5550b, Compensatory time off forSame provision

travel, would provide that (a)
Section 5542. Overtime rates;Notwithstanding 5 U.S.C. §5542(b)(2),
computation.each hour spent by an employee in travel
Sec. 5542(b)(2) provides that time spent instatus away from the his or her official duty
a travel status away from the official-dutystation, that is not otherwise compensable,
station of an employee is not hours ofwould be treated as an hour of work or

CRS-24
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
employment unless — (A) the time spent isemployment for purposes of calculating
within the days and hours of the regularlycompensatory time off.
scheduled administrative workweek of the(b) An employee who has any hours treated
employee, including regularly scheduledas hours of work or employment for
overtime hours; or (B) the travel (i) involvespurposes of calculating compensatory time
the performance of work while traveling, (ii)would not be entitled to payment for any
is incident to travel that involves thesuch hours that are unused as compensatory
ⁱ^{ki/CRS-RL31516}performance of work while traveling, (iii) istime.
^g/wcarried out under arduous conditions; or (iv)(c) OPM would prescribe implementing
^s^.orresults from an event which could not beregulations not later than 30 days after
^le^akscheduled or controlled administratively,enactment of the section.
including travel by an employee to such an
^://wikievent and the return of the employee from the
^h^ttpevent to his or her official-duty station.
Chapter 57 — Recruitment, Relocation, and Retention Bonuses
Section 5753. Recruitment and relocationSec. 101, Recruitment, Relocation, andSec. 101, Recruitment, Relocation, and
bonuses.Retention BonusesRetention Bonuses
Sec. 101(a) would amend 5 U.S.C. Sec. 101(a) would amend 5 U.S.C.
Chapter 57 by striking sections 5753 andChapter 57 by inserting after section 5754

5754 and inserting the following.the following.

See 5 U.S.C. §5753(a) below. 5 U.S.C. §5753, Recruitment and 5 U.S.C. §5754a, Recruitment and
Sec. 5753(e) provides that the President, atrelocation bonusesrelocation bonuses. (Provisions are the
the request of an executive agency head, may Sec. 5753(a)(1) would provide that thesame as House version except as noted.)
authorize application of the provisions to onesection could be applied to (A) General(A) Sec. 5754a(b)(2) Generally, a bonus

CRS-25
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
or more categories of employees within theSchedule employees; and (B) employees incould be paid only to a GS employee.
agency who would not otherwise be covered.a category approved by OPM at the request(B) Sec. 5754a(h)(1)
of an executive agency head.
Political appointees are eligible for (a)(2) A bonus could not be paid to an(a)(2) Sec. 5754a(h)(2)
recruitment and relocation bonuses.individual who is appointed to or who holds
(A) a position to which an individual is
ⁱ^{ki/CRS-RL31516}appointed by the President, by and with theadvice and consent of the Senate; (B) a
^g/wposition in the SES as a noncareer
^s^.or
^le^akappointee (as such term is defined under 5
U.S.C. §3132(a)); or (C) a position which
^://wikihas been excepted from the competitive
^h^ttpservice by reason of its confidential, policy-
determining, policy-making, or policy-
advocating character.
Sec. 5753(c)(1) defines “agency” and (a)(3) “employee” would have the same Sec. 5754a(a)

“employee” to mean the same as in 5 U.S.C.meaning as in 5 U.S.C. §2105, including
§5102.subsection (c) of that section. “Employee”
“Employee” means an individualwould mean (except as otherwise provided
employed in or under an agency.by 5 U.S.C. §2105 or when specifically
“Agency” means an executive agency, themodified): an officer and an individual who
Library of Congress, the Botanic Garden, theis (1) appointed in the civil service by the
Government Printing Office, the Office of thePresident; Member(s) of Congress, or the
Architect of the Capitol, and the governmentCongress, a member of a uniformed service,

CRS-26
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
of the District of Columbia. It does notan individual who is an employee under 5
include a government controlled corporation;U.S.C. §2105, the head of a government
the Tennessee Valley Authority; the Centralcontrolled corporation, or an adjutant
Intelligence Agency; the National Securitygeneral; (2) engaged in the performance of a
Agency; the General Accounting Office; thefederal function under authority of law or
Defense Intelligence Agency; the Nationalan executive act; and (3) subject to the
Imagery and Mapping Agency.supervision of an individual named under
ⁱ^{ki/CRS-RL31516}(1) above while engaged in the performance
^g/wof the duties of his or her position. Certain
^s^.orindividuals employed at the United States
^le^akNaval Academy also are covered by the
term (5 U.S.C. §2105).
^://wiki “Agency” would not be defined.
^h^ttp
Sec. 5753(a) provides that OPM may Sec. 5753(b) would amend 5 U.S.C. Sec. 5754a(b)(1) OPM could authorize
authorize an agency head to pay a bonus to an§5753(a) to provide that OPM couldan agency head to pay a bonus to an
employee who is newly appointed to aauthorize an agency head to pay a bonus toindividual appointed or moved to a
General Schedule (GS) position, or to anan individual only if (1) the position toposition that is likely to be difficult to fill
employee under the GS or any other paywhich the individual is appointed (asin the absence of such a bonus, if the
authority in the executive, legislative, ordescribed in (2)(A) below) or to which he orindividual (A)(i) is newly appointed as a
judicial branch who must relocate to accept ashe moves or must relocate (as described infederal employee; or (ii) is currently a
GS position, if OPM determines that the(2)(B) below) is likely to be difficult to fillfederal employee and moves to a new
agency would be likely, in the absence of thein the absence of such a bonus; and (2) theposition in the same geographic area under
bonus, to encounter difficulty in filling theindividual (A) is newly appointed as acircumstances described in OPM
position.federal employee; or (B)(i) is a currentregulations; or (B) is a current federal
federal employee; and (ii)(I) moves to aemployee and must relocate to accept a

CRS-27
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
new position in the same geographic areaposition stationed in a different geographic
under circumstances described in OPMarea.
regulations; or (II) must relocate to accept a
position in a different geographic area.
Sec. 5753(b)(2) provides that payment of a Sec. 5753(c)(1) would amend 5 U.S.C. Sec. 5754a(c)
bonus is contingent upon the employee§5753(b) to provide that payment of a
ⁱ^{ki/CRS-RL31516}entering into an agreement with the agency tocomplete a period of employment, with thebonus would be contingent upon theemployee entering into a written service
^g/wrequired period determined by OPMagreement to complete a period of
^s^.or
^le^akregulations. If the employee voluntarily failsemployment with the agency, not longer
to complete the service period or is separatedthan four years. OPM, by regulation, could
^://wikifrom service before completing the period forprescribe a minimum service period. (2)(A)
^h^ttpcause on misconduct or delinquency charges,The service agreement would include (i) the(i) the length of the required service period

the employee must repay the bonus on a procommencement and termination dates of the
rata basis.required service period (or provisions for
the determination thereof); (ii) the amount
of the bonus; (iii) the method of payment;
and (iv) other terms and conditions under
which the bonus is payable, subject to the
requirements of this section and OPM
regulations. (B) The terms and conditions
for paying a bonus, as specified in the
service agreement, would include (i) the
conditions under which the agreement could
be terminated before the agreed-upon

CRS-28
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
service period has been completed; and (ii)(3) The agreement would be made
the effect of the termination. (C) Theeffective upon employment with the
required service period would commenceagency or movement to a new position or
upon the commencement of service with thegeographic area, as applicable, except that
agency or movement to a new geographica service agreement for a recruitment
area, as applicable, unless the servicebonus could be made effective at a later
agreement provides for a laterdate under circumstances described in
ⁱ^{ki/CRS-RL31516}commencement date in circumstances andOPM regulations, such as when there is an
^g/wto the extent allowable under OPMinitial period of formal basic training.
^s^.orregulations, such as when there is an initial
^le^akperiod of formal basic training.
^://wiki Sec. 5753(b)(1)(A) provides that the Sec. 5753(d)(1) would amend 5 U.S.C. Sec. 5754a(d)(1) Except as provided in
^h^ttpamount of a bonus is determined by OPM§5753(b) to provide that, except as provided(e) below, a bonus would not exceed 25%
regulations, but cannot exceed 25% of thein (e) below, a bonus would not exceedof the employee’s annual basic pay rate at
annual basic pay rate for the position to which25% of the employee’s annual basic paythe beginning of the service period
the employee is being appointed or relocated.rate at the beginning of the service periodmultiplied by the number of years (or
multiplied by the number of yearsfractions thereof) in the service period, not
(including a fractional part of a year, asto exceed four years.
determined under OPM regulations) in the
required service period of the employee
involved.
(b)(3) provides that a bonus must be paid (d)(2) A bonus could be paid as an initial
as a lump sum and is not part of basic pay. lump sum, in installments, as a final lump
sum upon completion of the full service

CRS-29
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
period required by the agreement, or in a
combination of these.
(d)(3) A bonus is not part of basic pay.
Sec. 5753(b)(1)(B) provides that basic pay
does not include locality pay. The current 5 U.S.C. §5753(b)(1)(B)
provision would not be provided.
ⁱ^{ki/CRS-RL31516} Sec. 5753(b)(4) provides that a recruitment (d)(4) Under OPM regulations, a
^g/wbonus may be paid before a newly hiredrecruitment bonus could be paid to an
^s^.or
^le^akemployee enters on duty, under OPMeligible individual before he or she enters
regulations.on duty.
^://wiki
^h^ttpNo similar provision Sec. 5753(e) would add new text to Sec. 5754a(e)

provide that OPM, subject to regulations it
prescribes, could authorize an agency head
to waive the 25% limitation based on a
critical agency need. Under a waiver, the
maximum bonus allowable would (1) be
equal to the maximum that would be
determined if subsection (d)(1) were
applied by substituting 50% for 25%; but
(2) in no event exceed 100% of the
employee’s annual basic pay rate at the
beginning of the service period.

CRS-30
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
Nothing in this section would be consideredNo similar provision
to permit the waiver of any requirement
under (c).
No similar provision Sec. 5753(f) would add new text to Sec. 5754a(f)
provide that OPM, subject to regulations it
prescribes, would require that agencies
ⁱ^{ki/CRS-RL31516}establish plans for paying recruitment andrelocation bonuses before paying such
^g/w bonuses.
^s^.or
^le^ak Sec. 5753(d) authorizes OPM to prescribe Sec. 5753(g) would provide that OPM Sec. 5754a(g)
^://wikiregulations.could prescribe regulations to administer
^h^ttpthe section, including those related to
repayment of a recruitment or relocation
bonus in appropriate circumstances when
the agreed-upon service period has not been
completed.
No similar provisionSec. 101(c), Reports Sec. 5754a(i)(1) OPM would submit an
Sec. 101(c)(1), Recruitment andannual report on bonuses paid to the
relocation bonuses, (A) OPM wouldSenate Committee on Governmental
submit an annual report for each of the firstAffairs and the House Committee on
five years on recruitment and relocationGovernment Reform. (2) Each report
bonuses to the Senate Committee onwould include the use by each agency of
Governmental Affairs and the Houserecruitment and relocation bonuses,
Committee on Government Reform. including, with respect to each agency and

CRS-31
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
(B) Each report would include a descriptioneach type of bonus, the number and
of how the authority to pay recruitment andamount of bonuses by grade (including the
relocation bonuses was used by theGeneral Schedule, SES, and Executive
respective agencies, including, with respectSchedule positions).
to each such agency and each type of bonus
(i) the number and dollar amount of
bonuses paid (I) to individuals holding
ⁱ^{ki/CRS-RL31516}positions within each pay grade, pay level,
^g/wor other pay classification; and (II) if
^s^.orapplicable, to individuals who moved
^le^akbetween positions that were in different
agencies but the same geographic area
^://wiki(including the names of the agencies
^h^ttpinvolved); and (ii) a determination of the
extent to which such bonuses furthered the
purposes of 5 U.S.C. 5753.
No similar provisionNo similar provision Sec. 5754a(j)(1)(2) An individual could
not be paid a recruitment or relocation
bonus under the proposed Section 5754a
and a recruitment or relocation bonus
under 5 U.S.C. §5753.

CRS-32
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
Section 5754. Retention allowances.Sec. 101, Recruitment, Relocation, andSec. 101, Recruitment, Relocation, and
Retention BonusesRetention Bonuses
5 U.S.C. §5754, Retention bonuses5 U.S.C. §5754b, Retention bonuses
Sec. 5754(a)(1) would provide that the Would amend Title 5 to create a new
section could be applied tosection 5754b to be inserted after proposed
new section 5754a. (Provisions are the
same as House version except as noted.)
ⁱ^{ki/CRS-RL31516} Sec. 5754(a) authorizes allowances for GS(A) General Schedule employees; and (B)(A) Sec. 5754b(d) would provide that
^g/wemployees.employees in a category approved by OPMgenerally, a bonus could be paid only to a
^s^.or
^le^ak Sec. 5754(e): The President mayat the request of an executive agency head.GS employee.
authorize application of the Section to(B) Sec. 5754b(j)(1)
^://wikiemployees otherwise not covered.
^h^ttp
Political appointees are eligible for(2) A bonus could not be paid to an(2) Sec. 5754b(j)(2)

retention allowances.individual who is appointed to or who holds
(A) a position to which an individual is
appointed by the President, by and with the
advice and consent of the Senate; (B) a
position in the SES as a noncareer
appointee (as such term is defined under 5
U.S.C. §3132(a)); or (C) a position which
has been excepted from the competitive
service by reason of its confidential, policy-
determining, policy-making, or policy-
advocating character.

CRS-33
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
Sec. 5754(c)(1) defines “agency” and(3) “employee” would have the same Sec. 5754b(a)
“employee” to mean the same as in 5 U.S.C.meaning as in 5 U.S.C. §2105, including
§5102. (See 5 U.S.C. §5753(c)(1) above.)subsection (c) of that section. (See 5 U.S.C.
§5753(a)(3) above.)
“Agency” would not be defined.
ⁱ^{ki/CRS-RL31516} Sec. 5754(a) provides that OPM may Sec. 5754(b) would amend 5 U.S.C. Sec. 5754b(b)
^g/wauthorize an agency head to pay an allowance§5754(a) by renaming the allowances as
^s^.or
^le^akto a GS employee if (1) the employee’sbonuses and providing that OPM could
unusually high or unique qualifications or theauthorize an agency head to pay a retention
^://wikiagency’s special need for the employee’sbonus if (1) the employee’s unusually high
^h^ttpservices makes it essential to retain theor unique qualifications or the agency’s
employee; and (2) the agency determines thatspecial need for the employee’s services
the employee would be likely to leave in themakes it essential to retain the employee;
absence of a retention allowance.and (2) the agency determines that, in the
absence of a bonus, the employee would be
likely to leave (A) the federal service; or
(B) for a different federal government
position under conditions described in OPM
regulations.
No similar provision Sec. 5754(c) would add new text to Sec. 5754b(c)

provide that OPM could authorize an
agency head to pay retention bonuses to a

CRS-34
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
group of employees in one or more
categories of positions in one or more
geographic areas, subject to subsection
(b)(1) above and OPM regulations, if there
is a high risk that a significant portion of
employees in the group would be likely to
leave in the absence of bonuses.
ⁱ^{ki/CRS-RL31516}No similar provision Sec. 5754(d) would add new text to Sec. 5754b(e)

^g/wprovide that (1) payment of a retention
^s^.or
^le^akbonus would be contingent upon the
employee entering into a written service
^://wikiagreement to complete a period of
^h^ttpemployment with the agency. (2)(A)The
service agreement would include (i) the
length of the required service period; (ii) the
amount of the bonus; (iii) the method of
payment; and (iv) other terms and
conditions under which the bonus is
payable, subject to the requirements of this
section and OPM regulations. (B) The
terms and conditions for paying a bonus, as
specified in the service agreement, would
include (i) the conditions under which the
agreement could be terminated before the
agreed-upon service period has been

CRS-35
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
completed; and (ii) the effect of the
termination. (3)(A) Notwithstanding (1), a
written service agreement would not be
required if the retention bonus is paid in
biweekly installments with the payment set
at the full bonus percentage rate established
for the employee with no portion of the
ⁱ^{ki/CRS-RL31516}bonus deferred. (B) In this case, if the
^g/wagency makes a determination to terminate
^s^.orthe payments, the agency would provide
^le^akwritten notice to the employee of that
determination. Except as provided in OPM
^://wikiregulations, the employee would continue
^h^ttpto be paid the retention bonus through the
end of the pay period in which the notice is
provided. (4) A retention bonus could not
be based on any period of service which is
the basis for a recruitment or relocation
bonus.
Sec. 5754(b)(1) limits a retention Sec. 5754(e)(1) would provide that, Sec. 5754b(f)

allowance to 25% of basic pay (excludingexcept as provided in (f) below, a retention
locality pay).bonus would be stated as a percentage of
the employee’s basic pay for the service
period associated with the bonus, and could
not exceed (A) 25% of the employee’s basic

CRS-36
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
pay if paid to the employee individually or
(B) 10% of the employee’s basic pay if paid
to the employee as part of a group. (2)(A)
A bonus could be paid in installments after
completion of specified periods of service
or in a single lump sum at the end of the full
period of service required by the agreement.
ⁱ^{ki/CRS-RL31516}(B) An installment payment would be
^g/wderived by multiplying the amount of basic
^s^.orpay earned in the installment period by a
^le^akpercentage not to exceed the bonus
percentage rate established for the
^://wikiemployee. (C) If the installment payment
^h^ttppercentage established for the employee is
less than the bonus percentage rate
established for the employee, the accrued
but unpaid portion of the bonus is payable
as part of the final installment payment to
the employee after completion of the full
service period under the terms of the service
agreement. (D) The bonus percentage rate(D) No similar provision

established for an employee would mean
the bonus percentage rate established in
accordance with (e)(1) or (f) below, as the
case may be.

CRS-37
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
Sec. 5754(b)(2) provides that a retention (3) A retention bonus would not be part
allowance is not part of basic pay and itsof basic pay. Would delete current law
reduction or elimination is not appealable.provision on lack of appeal.
Sec. 5754(b)(3) provides that a retention
allowance is paid at the same time and in the
same manner as basic pay.
ⁱ^{ki/CRS-RL31516}
^g/wNo similar provision Sec. 101(a)(1) would add new text at 5 Sec. 5754b(g)
^s^.or
^le^akU.S.C. §5754(f) to provide that OPM, upon
request of an agency head, could waive the
^://wiki25% or 10% limitations and permit the
^h^ttpagency head to pay bonuses of up to 50% of
basic pay, based on a critical agency need,
to otherwise eligible employees or
categories of employees.
No similar provision Sec. 101(a)(1) would add new text at 5 Sec. 5754b(h)

U.S.C. §5754(g) to provide that OPM,
subject to regulations it prescribes, would
require that agencies establish a plan for
paying retention bonuses before paying
such bonuses.

CRS-38
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
Sec. 5754(d) authorizes OPM to prescribe Sec. 101(a)(1) would place text at 5 Sec. 5754b(i)
regulations.U.S.C. §5754(h) to provide that OPM could
prescribe regulations to administer the
section.
No similar provision Sec. 101(a)(3), Sense of Congress,No similar provision

would provide that it is the sense of
ⁱ^{ki/CRS-RL31516}Congress that the OPM Director (A) should,each time a bonus is paid to recruit or
^g/wrelocate a federal employee from one
^s^.or
^le^akgovernment agency to another within the
same geographic area or to retain a federal
^://wikiemployee who might otherwise leave one
^h^ttpgovernment agency for another within the
same geographic area, be notified of that
payment within 60 days after the date on
which the bonus is paid; and (B) should
monitor the payment of such bonuses (in
the circumstances described in paragraph
(A)) to ensure that they are an effective use
of the federal government’s funds and have
not adversely affected the ability of those
government agencies that lost employees to
other government agencies (in such
circumstances) to carry out their mission.

CRS-39
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
No similar provisionSec. 101(c), Reports Sec. 5754b(k)(1) OPM would submit an
Sec. 101(c)(2), Retention bonuses, (A)annual report on bonuses paid to the
OPM would submit an annual report forSenate Committee on Governmental
each of the first five years on retentionAffairs and the House Committee on
bonuses to the Senate Committee onGovernment Reform. (2) Each report
Governmental Affairs and the Housewould include the use by each agency of
Committee on Government Reform. (B)retention bonuses, including, with respect
ⁱ^{ki/CRS-RL31516}Each report would include a description ofto each agency, the number and amount of
^g/whow the authority to pay retention bonusesbonuses by grade (including the General
^s^.orwas used by the respective agencies,Schedule, SES, and Executive Schedule
^le^akincluding, with respect to each such agencypositions).

(i) the number and dollar amount of
^://wikibonuses paid (I) to individuals holding
^h^ttppositions within each pay grade, pay level,
or other pay classification; and (II) if
applicable, to prevent individuals from
moving between positions that were in
different agencies but the same geographic
area (including the names of the agencies
involved); and (ii) a determination of the
extent to which such bonuses furthered the
purposes of 5 U.S.C. 5754.

CRS-40
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
No similar provisionNo similar provision Sec. 5754b(l) An employee could not
be paid a retention bonus under the
proposed Section 5754b and a retention
allowance under 5 U.S.C. §5754.
No similar provision Sec. 101(d)(1), Effective date, would Sec. 101(b), Effective date and
provide that, except as stated immediatelyapplication, would provide that the
ⁱ^{ki/CRS-RL31516}below, Section 101 would take effect on thefirst day of the first applicable pay periodproposed Section 101 would be effectiveon the first day of the first applicable pay
^g/wbeginning on or after the 180^th day after theperiod beginning on or after 180 days after
^s^.or
^le^akact’s enactment.the act’s enactment.
^://wikiNo similar provision Sec. 101(d)(2), Application toNo similar provision
^h^ttpagreements, would provide that a
recruitment or relocation bonus service
agreement that was authorized under 5
U.S.C. §5753 before the effective date
stated immediately above, would continue,
until its expiration, to be subject to 5 U.S.C.
§5753 as in effect on the day before such
effective date.
No similar provision Sec. 101(d)(3), Application toNo similar provision

allowances, would provide that payment of
a retention allowance that was authorized
under 5 U.S.C. §5754 before the effective
date stated above, would continue to be

CRS-41
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
subject to 5 U.S.C. §5754 as in effect on the
day before such effective date, until the
retention allowance is reauthorized or
terminated (but no longer than one year
after such effective date).
Chapter 63 — Leave
ⁱ^{ki/CRS-RL31516}Section 6303. Annual leave; accrual.Sec. 202, Annual Leave EnhancementsSec. 202, Annual Leave Enhancements
^g/wNo similar provision Sec. 202(a), Creditability of prior Sec. 202(a), Accrual of leave for
^s^.ornongovernmental service for purposes ofnewly hired federal employees with
^le^akdetermining rate of leave accrual, wouldqualified experience, would amend 5
^://wikiamend 5 U.S.C. §6303 by (1) adding a newU.S.C. §6303 by (1) adding a new
^h^ttpparagraph (e) to provide that (1) Not laterparagraph (e)(1) to provide that “period of
than 180 days after this subsection’squalified non-federal career experience”
enactment, OPM would prescribewould mean any equal period of service
regulations under which, for purposes ofperformed by an individual that, (A)
determining years of service underexcept for this subsection, would not
subsection (a), credit would, in the case of aotherwise be service performed by an
newly appointed employee, be given foremployee for purposes of annual leave
any prior service of such employee thataccrual; and (B) was performed in a
would not otherwise be creditable for suchposition (i) the duties of which were
purposes if (A) such service (i) wasdirectly related to the duties of the position
performed in a position the duties of whichin an agency that the individual holds and
directly relate to the duties of the position to(ii) which meets such other conditions as
which such employee is so appointed; andOPM would prescribe by regulation.

CRS-42
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
(ii) meets such other requirements as OPM(e)(2) For purpose of annual leave accrual,
may prescribe; and (B) in the judgment ofan agency head could deem a period of
the head of the appointing agency, thequalified non-federal career experience
application of this subsection is necessaryperformed by an individual to be a period
in order to achieve an important agencyof service performed as an employee.
mission or performance goal.
(2) Service described in (1) above, (A)(2) This section would take effect 120 days
ⁱ^{ki/CRS-RL31516}would be creditable, for the purposesafter the act’s enactment and would apply
^g/wdescribed in (1), as of the effective date ofonly to an individual hired on or after the
^s^.orthe employee’s appointment; and (B) wouldeffective date.
^le^aknot thereafter cease to be so creditable
unless the employee fails to complete a full
^://wikiyear of continuous service with the agency.
^h^ttp(3) An employee would not be eligible for
the application of paragraph (1) on the basis
of any appointment if, within 90 days
before the effective date of the appointment,
he or she has held any position in the civil
service.
Section 6303. Annual leave; accrual. Sec. 202(a)(2) would amend the secondNo similar provision

provides for calculation of annual leavesentence of 5 U.S.C. §6303(a) by striking
accruedthe period and inserting “,and for all service
which is creditable by virtue of subsection
(e).”

CRS-43
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
Section 6303. Annual leave; accrual. Sec. 202(b), Other annual leave Sec. 202(b), Senior Executive Service
Only employees who have at least 15enhancements, would amend 5 U.S.C.annual leave enhancements, would
years of service accrue one day of annual§6303 by adding after (e) (as added by Sec.amend 5 U.S.C. §6303(a) by (1) adding a
leave for each full biweekly pay period.202(a)(1)) a new paragraph (f) which wouldparagraph (4) to provide the following.
provide that notwithstanding any otherEmployees in positions classified above
provision of this section, the rate of accrualGS-15 or in scientific or professional
of annual leave under subsection (a) wouldpositions established under 5 U.S.C.
ⁱ^{ki/CRS-RL31516}be 1 day for each full biweekly pay period§3104, members of the Senior Executive
^g/win the case of any employee who holdsService, and employees in an equivalent
^s^.orpositions classified above GS-15 or incategory for which the minimum rate of
^le^akscientific or professional positionsbasic pay is greater than GS-15, step 10,
established under 5 U.S.C. §3104, memberscould accrue one day of annual leave for
^://wikiof the Senior Executive Service, andeach full biweekly pay period. (2) OPM
^h^ttpemployees in an equivalent category, aswould prescribe implementing regulations
determined by OPM.not later than 120 days after the act’s
enactment. (3) The provision in paragraph
1 would take effect 120 days after the act’s
enactment.
Sec. 202(c), Applicability, wouldNo similar provision

provide that none of the amendments made
by Sec. 202(a) would apply in the case of
any employee holding a position pursuant
to an appointment made before the effective
date of the regulations implementing such
amendments.

CRS-44
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
Chapter 83 — Civil Service Retirement System; and Chapter 84 — Federal Employees’ Retirement System
Employees covered by CSRS who workSection 211, Civil Service RetirementSame provision at Sec. 103.
part-time can experience disproportionatelySystem Computation for Part-Time
large cuts in their retirement annuities as theService
result of a regulation adopted by OPM in Sec. 211 would amend 5 U.S.C. §8339
response to the Comprehensive Omnibusto clarify that CSRS retirement annuities
ⁱ^{ki/CRS-RL31516}Budget Reconciliation Act of 1986 (P.L.99-272). This law requires retirementbased in whole or in part on part-timeservice are to be prorated only for the
^g/wannuities for a federal worker whose careerperiod of service that was performed on a
^s^.or
^le^akincludes part-time employment to be based onpart-time basis.
the rate of pay that would be paid for
^://wikifull-time service, with the employee’s service
^h^ttptime prorated for the actual number of hours
worked. In its regulation, however, OPM
adopted an interpretation of this statute that
also applies a lower rate of pay than would be
applied if these individuals had worked full-
time for their entire careers.
Prior military service of a civilian federalSection 212, Retirement Service CreditSame provision at Sec. 104.

employee is creditable under CSRS or FERSfor Cadet or Midshipman Service
provided that a required deposit is made to Sec. 212 of the bill would amend 5
the Civil Service Retirement and DisabilityU.S.C. §8331(13) and 5 U.S.C. §8401(31)
Fund. (5 U.S.C. §8331(13) and 5 U.S.C.to include service as a cadet at the U.S.
§8401(31)).Military Academy, the U.S. Air Force
Academy, or the U.S. Coast Guard
Academy, or as a midshipman at the U.S.

CRS-45
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
Naval Academy in the definition of military
service that can be creditable under CSRS
or FERS.
Title 3 — The President
Chapter 2 — Office and Compensation of President
ⁱ^{ki/CRS-RL31516}Section 107. Domestic Policy Staff andNo similar provisionSec. 105, Senior Executive Service
^g/wOffice of Administration; personnel.Authority for White House Office of
^s^.or Subsection (b)(2) authorizes the President,Administration
^le^akor his designee, to employ individuals in the Subsection (1) would amend 3 U.S.C.
^://wikiOffice of Administration in accordance withthe general authority to employ (5 U.S.C.§107(b) by extending the President’sauthority to include the employment of
^h^ttp§3101) and related provisions. Anysenior executives. Employment of senior
individual so employed is subject to theexecutives would be carried out in
limitation specified in 3 U.S.C. §114.accordance with 5 U.S.C. §3132 and
related provisions. Any permanent Senior
Executive Service (SES) positions
established under this provision would be
career reserved positions.
Section 114. General pay limitation.No similar provisionSec. 105, Senior Executive Service
Notwithstanding any provision of law,Authority for White House Office of
other than the provisions of this chapter, noAdministration
employee of the Vice President appointed Subsection (2) would amend 3 U.S.C.
under 3 U.S.C. §106, the White House Office,§114, changing the limitation on basic pay
the Executive Residence at the White House,to the maximum rate of basic pay currently
the Domestic Policy Staff, or the Office ofpaid for GS-15 of the General Schedule

CRS-46
Current Law108^th Congress Proposals
U.S. Code Federal Workforce Flexibility Act of 2004:
(Title 5, unless otherwise noted)S. 129, as ordered to be reported to theFederal Workforce Flexibility Act of 2003:
House of RepresentativesS. 129, as passed by the Senate
Administration may be paid a rate of basicand stating that this limitation would not
pay that exceeds the minimum rate of basicapply to any senior executives appointed
pay for GS-16 of the General Schedule. by the President under the authority in 3
Under 5 U.S.C. §5376, a GS-16 is a senior-U.S.C. §107(b)(2).

level position for which basic pay may be set
at a rate no less than 120% of GS-15, step 1,
and not greater than level IV of the Executive
ⁱ^{ki/CRS-RL31516}Schedule.
^g/w
^s^.or
^le^ak
^://wiki
^h^ttp