Federal Pay Reform Act of 1990

Federal Pay Reform Act of 1990 - Creates two new pay systems to replace the General Schedule. Establishes the Federal National Pay System (the NS Pay System) which shall have 11 grades designated NS-10 through NS-20 each with a range of rates of basic pay for positions currently classified at grades GS-5 through GS-15 for those classes of positions for which the Government recruits nationally, whose incumbents are usually college graduates, and which are generally professional or administrative in nature. Establishes the Federal Locality Pay System (the LS Pay System) which shall have 15 grades designated LS-1 through LS-15 each with a range of rates of basic pay in each pay area for positions currently classified at grades GS-1 through GS-15 for those classes of positions for which the Government recruits locally, whose incumbents are not usually college graduates, and which are generally clerical or technical in nature. States that it is the policy of the Government that pay for the NS and LS Pay Systems shall be based on the principles that: (1) NS and LS pay rates shall be competitive with the pay of employees in the non-Federal sector for the same levels of work; (2) pay for individual employees shall be tied to performance; (3) there shall be equal pay for substantially equal work under the NS Pay System and in each pay area under the LS Pay System as is currently required under the General Schedule; and (4) pay distinctions shall be maintained in keeping with work distinctions. Authorizes the President to establish minimum and maximum NS pay rates and to keep the overall percentage adjustments in LS pay rates below authorized levels when necessary because of a national emergency or serious economic conditions affecting the general welfare. Prohibits the maximum rate of basic pay from exceeding the minimum rate by more than 40 percent of the minimum rate payable for each range of rates of basic pay for each grade under such Systems. Prohibits the rates of basic pay for such Systems from exceeding the rate paid for level V of the Executive Schedule. Requires the Office of Personnel Management (OPM) to determine under which such System each class of positions shall be placed to best meet the personnel management needs of the Government. Requires the position classification standards to specify under which System the positions were placed.

Provides for the classification of positions exceeding NS-20 in difficulty and responsibility into one senior NS category. Authorizes OPM to: (1) require executive agencies to obtain its approval to classify a position above NS-20; or (2) impose numerical limitations on the number of positions exceeding NS-20 in each agency. Sets the minimum rate for the senior NS category at 120 percent of the minimum rate for NS-20 and the maximum rate at level V of the Executive Schedule. Makes the employees in this category eligible for the differentials, allowances and bonuses provided by this Act. Prohibits application of provisions regarding pay adjustment, pay rate setting, and merit increases to such employees. Excludes positions in the Senior Executive Service and the Federal Bureau of Investigation and the Drug Enforcement Administration Senior Executive Service from such category.

Directs the President to designate an executive branch official as the President's Pay Agent. Provides for annual adjustments by the President to the minimum and maximum rates of basic pay for each grade of the NS Pay System each January based on the recommendations of the President's Pay Agent determined from Bureau of Labor Statistics (BLS) surveys of non-Federal rates of pay for comparable work to insure the competitiveness of NS pay rates. Directs the President to report to the Congress: (1) when a national emergency or serious economic conditions affecting the general welfare require that pay be held below the comparability range (the range encompassing amounts ten percent above and below the non-Federal rates of pay reported by BLS surveys); and (2) his or her assessment of the impact of such decision on the Government's ability to recruit and retain well-qualified employees. Requires the Pay Agent to: (1) establish a National Employees Pay Council to consist of representatives of Federal employee unions granted consultation rights by OPM; (2) give thorough consideration to the views of the Council in making pay adjustment recommendations and to convene public hearings to obtain the views of interested parties on such recommendations; and (3) determine what rates within such comparability range would be appropriate to allow agencies to recruit and retain well-qualified employees based on certain factors including turnover and unemployment rates.

Directs OPM to: (1) establish pay areas for employees under the LS Pay System based on such factors as local labor market patterns, communicating patterns, and practices of other employers; (2) request BLS surveys of non-Federal rates of pay in each pay area for work comparable to the work performed by such employees; (3) recommend to the Pay Agent the minimum and maximum rates of basic pay for each grade of the LS Pay System in each pay area; and (4) set pay for overseas LS employees. Provides for annual adjustments by the President under the same guidelines established for the NS Pay System. Establishes the Federal Labor-Management Committee to advise OPM in establishing pay areas, requesting surveys, and making recommendations to the Pay Agent.

Directs OPM to put the new LS pay rates into effect each January.

Provides for setting individual rates of basic pay under the NS and LS Pay Systems as is currently done for employees under the General Schedule except that new appointments above the minimum rate for certain individuals are permitted at all grades (currently they are restricted to GS-11 and above) with the approval of OPM only for appointments in an executive agency (currently all appointments except with respect to those by the Librarian of Congress must be approved by OPM). Sets forth guidelines for setting individual rates of basic pay for: (1) employees promoted or transferred to a position in a higher grade; (2) employees repromoted or transferred to a grade in which they formerly served; (3) certain legislative branch employees; (4) Defense Department overseas teachers; and (5) employees of county committees under provisions providing financial assistance to agricultural producers for carrying out conservation and environmental enhancement measures.

Provides that any employee under the NS and LS Pay Systems whose most recent performance rating was at the fully successful level or higher shall, at the time of any annual adjustment by the President, receive a merit increase equal to the increase in the minimum rate of basic pay for the employee's grade under such adjustment. Prohibits such an increase in the rate of basic pay for any employee whose most recent performance rating was below the fully successful level. Grants authority to agency heads to provide an additional pay increase to employees rated at or above the fully successful level in an amount to be determined by the agency heads. Provides for additional pay increases under the LS Pay System to employees whose most recent performance rating was at the fully successful level or higher by an amount of not less than three percent of their rate of basic pay upon completion of: (1) each year of service in their current grade if their rate of basic pay immediately before such increase is in the bottom third of the range of rates of basic pay for the grade in the pay area; and (2) each two years of service in their current grade if their rate of basic pay immediately before such increase is above the bottom third of the range of basic pay for the grade in the pay area but less than the dollar amount that is midway between the minimum and maximum rates of basic pay for the grade in the pay area. Prohibits increases for such employees that increase their rate of basic pay above the dollar amount that is midway between the minimum and maximum rates of basic pay for their grade in the pay area. Permits any employee to request reconsideration of a denial of an additional pay increase or the amount of such an increase. Permits such reconsideration only by an employee in a higher position in the agency than the employee who made the initial decision. Prohibits further appeal of the failure to receive an additional pay increase or the amount of such an increase.

Authorizes the President's Pay Agent to allow payment of geographical differentials of up to 25 percent of basic pay for employees under the NS Pay System in areas or localities where the Government would otherwise encounter difficulty in recruiting or retaining employees. Requires a geographic differential to be payable to each employee in the area or locality for which the differential is established.

Authorizes the President to establish staffing differentials of up to 60 percent of basic pay for employees under the NS and LS Pay Systems in one or more locations or areas where the Government would otherwise encounter difficulty in recruiting or retaining employees.

Authorizes OPM to pay supervisory differentials to supervisors under the NS and LS Pay Systems who are responsible for supervising employees not under their respective pay system if: (1) the midpoint of the range of rates of basic pay for subordinate employees is higher than the midpoint of the range of rates of basic pay for supervisors; and (2) one or more of such subordinate employees would, in the absence of such a differential, be paid more than a supervisor. Prohibits a supervisory differential from causing a supervisor's pay to exceed the pay of the highest paid subordinate employee by more than three percent.

Authorizes OPM to permit agency heads to pay lump-sum bonuses of up to 25 percent of basic pay to newly appointed employees under the NS and LS Pay Systems or to an employee who must relocate to accept an NS or LS position if the agency would otherwise encounter difficulty in filling the position. Requires the employee to enter into an agreement to complete a specified period of service with the agency to receive such bonus. Requires the employee to repay the bonus on a pro rata basis upon failure to complete the specified period of such service.

Authorizes OPM to permit agency heads to pay retention allowances of up to 25 percent of basic pay to employees under the NS and LS Pay Systems who would otherwise be likely to leave the agency and who have unusually high or unique qualifications or if a special need of the agency for the employee's services makes it essential to retain the employee.

Authorizes the payment of performance-based cash awards of up to ten percent of basic pay, or in exceptional cases, up to 20 percent of basic pay, to employees under the NS and LS Pay Systems whose most recent performance rating was at the fully successful level or higher.

Limits to level I of the Executive Schedule the aggregate amount of basic pay, differentials, bonuses, allowances, and performance-based cash awards employees under the NS and LS Pay Systems may receive in any calendar year.

Revises provisions regarding prevailing rate determinations to: (1) require OPM to schedule full-scale wage surveys every three years and to schedule interim surveys to be conducted each year between consecutive full-scale wage surveys; and (2) lower by four percent of the percentage of the prevailing rate payable for each of the five steps for each grade of a regular wage schedule for nonsupervisory prevailing rate employees.

Delays the effective date of wage increases for employees under the NS and LS Pay Systems to the 150th day following the date the wage survey is ordered to be made.

Authorizes the President to direct OPM to limit the maximum adjustment to wage rates in any wage area during a calendar year if the President determines that equity with NS and LS employees so requires.

Makes grade and pay retention provisions applicable to employees under the NS and LS Pay Systems in the same way they are applied to the General Schedule.

Authorizes OPM to extend to NS and LS employees in positions involving health care responsibilities any provision regarding employees in the Veterans Health Services and Research Administration (HSRA) of the Department of Veterans Affairs.

Establishes a new pay system for administrative law judges and judges of boards of contract appeals consisting of three or more rates of basic pay set by the President which may not be less than the minimum rate for NS-20 or more than the maximum rate for level IV of the Executive Schedule. Directs OPM to determine the rate of basic pay for each judge based on certain considerations.

Changes the current limitation on pay fixed by administrative action by an executive agency head or military department head from the maximum rate for GS-18 to level V of the Executive Schedule.

Authorizes the Office of Management and Budget (OMB) to permit agency heads to set the rate of basic pay for no more than 400 positions critical to the agency's mission requiring high level scientific or professional expertise, up to 30 of which can be Executive Schedule positions, at a rate of basic pay that does not exceed level I of the Executive Schedule unless the President approves a higher rate. Requires OMB to allocate such positions among agencies. Authorizes OMB to: (1) change such allocations at any time; and (2) require agencies to obtain its approval before paying an employee in such a critical position.

Authorizes the President to pay geographic, staffing and supervisory differentials, recruitment and relocation bonuses, and retention allowances to employees under other pay systems upon request by an executive agency head. Limits such payment to level I of the Executive Schedule.

Bars judicial review of certain determinations entrusted to the President, the Pay Agent, OMB, and OPM under this Act.

Increases the minimum rate for the Senior Executive Service (SES) from the minimum rate for GS-16 to no less than 120 percent of the minimum rate for NS-20. Provides for adjustments to the SES schedule by the President when either the NS Schedule or Executive Schedule is adjusted.

Replaces the Performance Management and Recognition System with a new authority for the Pay Agent to establish special occupation pay systems for occupations or groups of occupations that the Pay Agent determines should not be under the NS or LS Pay Systems.

Prohibits such System from providing for the waiver of any law that could not be waived as part of a demonstration project conducted by OPM. Limits basic pay under such a system to level V of the Executive Schedule, and total pay that includes any differentials, bonuses, and allowances to level I of the Executive Schedule.

Authorizes OPM to permit agencies to grant employees time off duty without loss of pay or leave as an incentive award for superior accomplishment.

Authorizes agencies to pay new employees up to two pay periods basic pay if they relocate to accept an appointment with the Government.

Eliminates computation of overtime rates and wage-board overtime and Sunday rates under premium pay provisions for employees subject to the overtime pay provisions of the Fair Standards Act of 1938 but deems as overtime hours their hours of work in excess of eight hours in a day for purposes of that Act. Deems as hours of work their hours in a paid non-work status.

Provides that hazardous duty differentials may apply to employees in positions inherently involving physical hardship or hazard only if OPM approves of such application.

Allows certain employees of the Federal Aviation Administration and the Department of Defense performing emergency work to receive premium pay without regard to the limitation on such pay. Subjects such employees to an annual aggregate pay limitation equal to the maximum rate for NS-20.

Authorizes the Director of OPM to waive on a case-by-case basis the application of provisions imposing financial penalties on reemployed civilian retirees under either the Civil Service or Federal Employees' Retirement System or military retirees in scientific, technical, professional, or administrative positions for which there is exceptional difficulty in recruiting or retaining qualified employees.

Authorizes agencies to pay: (1) travel and transportation expenses to candidates for Federal employment for job interviews; and (2) travel expenses to new appointees and student trainees, regardless of the nature of their appointment.

Increases the maximum uniform allowance from $125 per year to $400 per year and permits OPM to adjust the maximum amount by regulation.

Requires OPM to determine the appropriate successor reference in the case of any references to the General Schedule or a grade or rate thereof in any provision of law whether or not amended by this Act.

Amends the Foreign Service Act of 1980 to require the President to adjust the rates of basic pay for the Foreign Service Schedule by amounts consistent with adjustments for the NS Pay System.

Requires the President to adjust the rates of basic pay for HSRA employees consistent with adjustments for the NS Pay System.

Requires the President to determine adjustments in the rates of basic pay and allowances for members of the uniformed services. Limits such pay to level V of the Executive Schedule.

Prohibits the reduction of any employee's rate of basic pay as a result of the enactment of this Act.

Authorizes the President to establish geographic differentials of up to eight percent of basic pay for payment in January 1991 to employees in the consolidated metropolitan statistical areas of: (1) New York-Northern New Jersey-Long Island; (2) San Francisco-Oakland-San Jose; and (3) Los Angeles-Anaheim-Riverside.

Authorizes the President to establish staffing differentials equal to five percent of basic pay for payment in January of 1991 to employees whose positions are in grades GS-5 or GS-7 and in a class that is determined by OPM as likely to be under the NS Pay System.

Requires this Act to become effective not later than January 1, 1995.

Extends the physicians' comparability allowance program from September 30, 1990, to September 30, 1995. Prohibits any service under such program from extending beyond September 30, 1997.

Provides that the rates of basic pay of the NS and LS Pay Systems shall take effect in January 1994. Requires the rates of basic pay for the NS Pay Schedule to be set under the pay adjustment process for the General Schedule for the last time in FY 1994 without corresponding adjustments for employees of the Foreign Service and HSRA. Requires the rates of basic pay for the LS Pay Schedule to be set under the new pay procedures in this Act. Requires the rates of basic pay for the Federal Wage System to be determined under the new prevailing rate provisions.