Federal Pay Reform Act of 1987

Federal Pay Reform Act of 1987 - Title I: Alternative Compensation Programs - Establishes a Federal Compensation Board to design and implement Federal employee compensation programs utilizing the alternative systems set forth in this Act and to carry out oversight functions with respect to such programs. Describes the types of alternative systems as follows: (1) a system under which annual pay adjustments are made so that total pay and benefits are comparable to those of private enterprise for the same level of work; (2) a system under which annual pay adjustments are made so that rates of basic pay are consistent with those for the same level of work in private enterprise within the same geographic region; (3) a system under which conditions of employment shall be subject to collective bargaining; (4) a system which identifies separate career categories, adjusts pay based on specified factors, provides pay differentials, and authorizes special awards and performance recognition; and (5) any combination of the aforementioned.

Establishes a Commission on Federal Pay Management to evaluate each alternative system as implemented, and to make similar evaluations with respect to the current system. Requires a report to the President and the Congress at the end of the five-year period beginning on the date of enactment of this Act. Terminates the Commission after submission of the report.

Title II: Amendments Relating to Pay Comparability System - Requires the Bureau of Labor Statistics and the President's pay agent to use the 1985 methodology for the pay comparability adjustment for each year. Requires the enactment of a joint resolution of approval before any alternative pay plan becomes effective. Provides that if the resolution is not approved then the pay rates shall be adjusted in accordance with the recommendations of the pay agent.

Requires that any alternative plan be at least equal to the Employment Cost Index (private industry wages and salaries for white-collar workers, excluding sales) as determined by the Bureau of Labor Statistics for the quarter ending June 30 of each year.

Title III: Higher Minimum Rates of Pay, Miscellaneous Allowances and Other Matters - Grants to agency heads the authority to establish higher minimum rates of basic pay for certain occupations with recruitment problems. (Currently such authority is granted to the President.) Specifies the circumstances under which agency heads may exercise such authority to include: (1) pay rates for positions under a statutory pay system which are generally less than the rates payable for similar positions held by individuals outside the Federal Government; (2) the remoteness of the area or location involved; (3) undesirable working conditions, including exposure to toxic substances and other occupational hazards; and (4) any other circumstance identified by the agency head. Requires agency heads to notify the Office of Personnel Management before exercising such authority. Provides that any decision of the Office that such action is unwarranted shall be accompanied by a statement of the reasons for such decision.

States that employees holding a position for which the rate of basic pay is increased may not be paid at a rate lower than the rate which would otherwise be payable if this Act had not been enacted. Declares that the expiration of any authority under this Act shall not result in a decrease in the rate of pay for any individual whose pay rate was established under such Act. Makes such employees eligible for comparability increases. Declares that increases in basic pay are not equivalent to step increases. Preserves step increases for employees whose service is interrupted by military duty or other public service.

Provides, with respect to special pay employees, for bonus pay and advance pay.

Eliminates the GS-11 grade requirement for paying new employees above the minimum rate of the appropriate grade (thus allowing agencies to hire employees for positions below GS-11 at a step higher than step one of the appropriate grade).

Provides for agencies to determine the allowance paid to employees at remote worksites.

Authorizes appropriations to each agency annually as necessary to cover the cost of uniforms.

Declares that wage schedules and rates for prevailing rate employees may not be decreased as a result of any wage survey.

Authorizes an agency to pay the travel and transportation expenses of any individual who: (1) is leaving a place to which such individual was transferred in the interest of the Government; (2) is separating from Government service; and (3) satisfies age and service requirements for retirement purposes.