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 March 31, 1991.

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 from October 1, 1989, through March 31, 1991. 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.

Provides that the applicable minimum percentage of the aggregate basic pay for an agency to be paid in performance awards shall be 1.15 percent for FY 1990 and 1991. Limits the applicable maximum percentage for such years to 1.5 percent.

Requires each agency's performance appraisal system to include procedures under which an employee whose performance has been rated below fully successful shall be given: (1) a performance improvement plan describing improvements the employee must demonstrate to attain fully successful performance; and (2) reasonable time to attain fully successful performance.

Amends the Omnibus Budget Reconciliation Act of 1987 to extend to civil service annuities commencing before December 3, 1989, the partial deferred payment of lump-sum credit for certain individuals electing alternative forms of annuities.