Merit Pay Reform Act of 1983

Merit Pay Reform Act of 1983 - Revises the merit pay system. Renames the system the performance management and recognition system.

Provides that the managerial and supervisory positions included under such system shall be determined according to Office of Personnel Management classification standards. Allows the President to exclude any class of employees within any agency unit from such system under specified conditions. Excludes employees of the Office of the Architect of the Capitol or the Botanic Garden from such system..

Declares that the system shall provide for comparability pay increases, periodic step increases, and performance awards based on an employee's performance. Requires that an employee whose performance is rated: (1) below fully successful receive no comparability or step increase; or (2) fully successful or above receive the full comparability and step increases to which the employee would be entitled if his or her position were not under such system. Authorizes the payment of a performance award of up to 20 percent of basic pay to an employee who receives a performance rating above fully successful. Limits the funds available to an agency for performance awards to an amount equal to one and one-half percent of the aggregate amount of basic pay payable to agency employees under such system. Allows an employee under such system to be paid less than the minimum rate of basic pay for the grade of the employee's position as a result of a less than fully successful performance rating.

Limits any cash award for the invention, suggestion, superior accomplishment, or special act or service of an employee under such system to 20 percent of the employee's basic pay.

Directs the Office of Personnel Management (OPM) to report to the President and Congress annually on the effectiveness of such system.

Directs executive agencies to develop performance appraisal systems for employees under the performance management and recognition system that: (1) require supervisors to consult with employees before establishing performance standards; (2) use the results of performance appraisals to set the base pay and performance awards for an employee; (3) provide for two levels of performance ratings below fully successful, one fully successful level, and two levels above fully successful; (4) establish performance standards which permit accurate evaluation; and (5) provide for reassigning, reducing in grade, or removing an employee who continually performs below the fully successful level after providing the employee an opportunity to perform at such level. Lists factors to be considered in performance appraisals. Prohibits OPM from prescribing or requiring agencies to prescribe any preestablished distribution of levels of performance ratings or any specific performance standard.

Allows Congress, after five years, to terminate this Act by introducing and adopting, within a specified period, a concurrent resolution disapproving its continuation.