Performance Management and Recognition System Reauthorization Act of 1989

Performance Management and Recognition System Reauthorization Act of 1989 - Extends the performance management and recognition system for Federal employees through 1995.

Revises provisions relating to merit increases under such system. Establishes a second reference rate (equal to the sum of the minimum basic pay rate for the grade of the position held by an employee and two-thirds of the difference between the maximum and minimum basic pay rates provided for such grade) for determining merit increases for FY 1990. Provides that if the employee's basic pay rate falls between the two reference rates and the employee's performance is rated at, or one level above, the fully successful level, the employee's basic pay rate shall be increased by an amount equal to one-half of a merit increase. Reverts to one reference rate for FY 1991 and provides that if the performance of such employee is rated: (1) above the fully successful level, the employee's basic pay rate shall be increased by an amount equivalent to a merit increase; or (2) at the fully successful level, the employee's basic pay rate shall be increased by an amount equivalent to one-half of a merit increase.

Revises provisions relating to performance appraisal systems beginning in FY 1991 to: (1) decrease the number of summary performance rating levels to one level of fully successful performance, one level above, and one level below; and (2) require such systems to provide for assisting any employee whose performance has been rated below the fully successful level to attain the level of performance required to avoid being reassigned, reduced in grade, or removed.

Directs Federal agencies to establish performance review boards to determine: (1) which employees within such agencies should receive performance awards; and (2) the amounts of such awards. Prohibits a board from considering an employee for a performance award unless the employee receives a performance rating of fully successful or higher and the employee's supervising official submits certain information to the appropriate review board.

Declares that the purpose of performance-improvement appraisals is to determine whether employees whose performances have been rated below fully successful have demonstrated sufficient improvement to avoid adverse personnel actions which might otherwise result from such deficient ratings. Provides that an employee's performance-improvement appraisal may not be taken into account when determining an employee's eligibility for, or the amount of, any pay increase, award, or other form of recognition except a general pay increase where the employee's performance-improvement appraisal is fully successful or higher.

Revises provisions relating to general pay increases to prohibit an increase in the basic pay of an employee whose performance is rated below the fully successful level, unless the employee's performance-improvement appraisal rating immediately following the deficient rating is fully successful or higher, in which case the full pay increase shall be awarded.

Revises provisions relating to performance awards to provide that: (1) the applicable minimum percentage of aggregate basic pay for an agency to be paid in such awards shall be 1.5 percent for FY 1990; and (2) after FY 1990, individual awards shall be equal to at least five percent of the employee's annual basic pay, the aggregate amount of such awards may not exceed such amount as the agency head determines to be appropriate for the fiscal year involved, and the aggregate minimum percentage for agencies which employed less than the equivalent of 20 full-time employees in the immediately preceding fiscal year shall be not less than 1.5 percent and not more than ten percent.