5573
905R86109
PERFORMANCE MANAGEMENT SYSTEM (PMS)
FOR PERFORMANCE MANAGEMENT AND
RECOGNITION SYSTEM EMPLOYEES
1986 EDITION
U.S. Envlronm^f^ Protection Agency
Region V,
230 South D*a/$om Street
Chicago,
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J.S
. Environmental Protection Agency
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PMS MANUAL FOR PMRS EMPLOYEES 3151
PMS MANUAL FOR PERFORMANCE MANAGEMENT AND
RECOGNITION SYSTEM (PMRS) EMPLOYEES
CONTENTS OF CHAPTERS
CHAPTER
CHAPTER TITLES NUMBERS
INTRODUCTION TO THE EPA PERFORMANCE MANAGEMENT
SYSTEM PLAN FOR EMPLOYEES IN THE PERFORMANCE
MANAGEMENT AND RECOGNITION SYSTEM (PMRS) 1
PERFORMANCE MANAGEMENT AND RECOGNITION SYSTEM 2
PERFORMANCE MANAGEMENT AND RECOGNITION SYSTEM
COMPENSATION 3
POSITION IDENTIFICATION, AND PERSONNEL MATTERS 4
APPENDIX A - EPA Performance Agreement
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PMS MANUAL FOR PMRS EMPLOYEES 3151
CHAPTER I - INTRODUCTION TO THE EPA PERFORMANCE
MANAGEMENT SYSTEM PLAN FOR EMPLOYEES IN THE PERFORMANCE
MANAGEMENT AND RECOGNITION SYSTEM (PMRS)
•
Table of Contents
PARAGRAPH PARAGRAPH
TITLES . NUMBERS
Background 1
Definition of Performance Management 2
Purpose of the Performance Management System 3
General Policy 4
Evaluation Strategy 5
Coverage 6
Definitions 7
Timetable 8
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PMS MANUAL FOR PMRS EMPLOYEES 3151
CHAPTER I - INTRODUCTION TO THE EPA PERFORMANCE MANAGEMENT
SYSTEM PLAN FOR EMPLOYEES IN THE PERFORMANCE
MANAGEMENT AND RECOGNITION SYSTEM-(PMRS)
1. BACKGROUND
a. Title II of the Civil Service Retirement Spouse Equity
Act of 1984, Public Law 98-615, mandates that Agencies replace
the Merit Pay System for Federal supervisors and managers with
the Performance Management and Recognition System (PMRS). The
new System bases supervisors' and managers' pay and awards on
their performance, and provides for a more extensive performance
award system than in the past.
b. This Act requires that Agencies develop a Performance
Management Plan which meets the requirements of the Performance
Management and Recognition System under 5 U.S.C. 4302a and 5401-
5410, 5 CFR Parts 430 and 540, and Office of Personnel Management
guidance. Specific citations include:
5 U.S.C. 4302a - Performance Appraisal System
5 CFR 540.106 - General Pay Increases
5 CFR 540.107 - Merit Increases
5 CFR 540.108 - Special Provisions for Pay Administration
5 CFR 540.109 - Performance Awards
5 CFR 540.110 - Cash Award Program
5 CFR Part 451 - Special Awards
c. To meet these requirements and to strengthen its
overall management of human resources, the Environmental Protection
Agency has incorporated into its system-the belief that people
are most likely to perform effectively when:
(1) they clearly understand what is expected of them;
(2) they participate in setting their own performance
objectives; and
(3) they know how their objectives relate to unit
project plans and Agency goals and objectives.
d. The benefits of this system include:
(1) increased communication between supervisor and
employee;
(2) greater individual effectiveness;
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PMS MANUAL FOR PMRS EMPLOYEES 3151
(3) greater organizational effectiveness;
(4) establishes a basis for making personnel
decisions and rewarding effective performance.
2. DEFINITION OF PERFORMANCE MANAGEMENT
Performance management is a systematic process by which
managers at all levels of an organization blend together basic
management functions, such as program planning or management
by objectives systems, with performance, pay, and awards systems
for the purpose of improving individual and organizational
effectiveness in the accomplishment of the agency's mission or
goals.
3. PURPOSE OF THE PERFORMANCE MANAGEMENT SYSTEM
a. EPA's Performance Management System consists of three
interlocked stages:
(1) performance planning;
(2) performance evaluation; and
(3) performance reinforcement
EPA's Performance Management System is designed to evaluate
performance in relation to performance standards which are
created by first-level supervisors with input from PMRS
employees; and to provide a basis for making pay and other
personnel decisions.
b. The purpose of the Performance Management and Recognition
System (PMRS) is to provide management with a continuous, integrated
system for managing performance which includes:
(1) communicating and clarifying performance expections
through effective performance planning;
(2) identifying individual accountability for the
accomplishment of organizational goals and objectives;
(3) integrating performance planning with other processes
of the Agency;
(4) evaluating and improving individual and organizational
accomplishments;
(5) providing support for performance improvement and
greater tangible rewards for outstanding performance; and
(6) building individual development and performance
improvement objectives back into the performance planning cycle.
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c. This plan will enable the Agency to use the results of
performance appraisal as a basis for adjusting base pay and
determining performance awards, training, rewarding, reassigning,
promoting, reducing in grade, retaining and removing employees.
Clear linkages between performance appraisal results and indivi-
dual personnel actions are discussed in detail in Chapter IV.
4. GENERAL POLICY
I ———————
a. It is the policy of the Environmental Protection Agency
to establish a comprehensive pay-for-performance program
(as provided for in the Performance Management and Recognition
System), which will provide for performance pay and performance
awards determinations based on performance appraisal results.
b. All Agency managers, supervisors, and PMRS employees
will receive intensive training and updated information on the
Performance Management and Recognition System as it is implemented,
Thereafter, they will be kept informed of the operation of the
system by way of general orientation sessions for new employees,
incorporation of PMRS information into the formal training
course for new supervisors and managers, and by periodic news-
letters and other Agency periodicals.
5. EVALUATION STRATEGY
1. A comprehensive evaluation plan will be developed and
administered periodically, but at least annually, to assess the
effectiveness of the Performance Management and Recognition
System. Specifically, three types of evaluation review will be
completed (one of each type annually) on a three year cycle.
The purpose of the PMRS portion of each review will be to
assess the effectiveness of the Performance Management and
Recognition System and to obtain evaluative data which will be
used to determine the need for refinement, modification or
other improvements in the system.
2. The type, purpose, and reporting requirement for each
review are as follows:
Type
Purpose
Reporting Requirement
PME On-Site
Review
On-site review of PMRS actions
and processes to include pay-
fixing actions, review of
performance agreements,
performance appraisals,
performance-based actions.
Summary of findings with
recommendations for
improvements transmitted
from Director of Personnel
to Servicing Personnel
Officer (SPO). SPO
reviews summary and responds
to Director of Personnel
with follow-up action plan.
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Personnel
Program
Self-
Evaluation
Review
SPO leads team of subject
matter experts to review the
effectiveness of PMRS program
based on evaluation guide to
be provided by Agency
Personnel Management
Evaluation Staff.
Report of findings
developed by Evaluation
Officer and submitted to
Director of Personnel for
appropriate follow-up action.
Personnel
Office
Effective-
ness Self-
Assessment
Review
SPO completes self-assessment
review to determine effective-
ness of PMRS processes and
activities based on standards
established by Agency
Personnel Management
Evaluation Staff.
SPO reports findings with
recommendations for
improvements to Director of
Personnel. Objectives for
improvement to serve as SPO
performance objectives for
current and future years.
6. COVERAGE
a. This plan covers all employees, grades 13 through 15,
whose positions are determined to be supervisory or managerial
in nature. The definitions of a supervisor and a management
official are found in Title 5, Chapter 71, Section 7103,
paragraphs (10) and (11), respectively (refer to Chapter IV,
paragraph l(a), pg. 4-1).
b. Part 540 of Title 5, Code of Federal Regulations
contains the regulations.
c. Federal Personnel Manaual Chapter 540 covers Office of
Personnel Management regulations on the Performance Management
and Recognition System.
d. The Agency Pay Administration Manual contains additional
policies and procedures pertaining to actions that may affect
PMRS employees, such as premium pay, grade retention and pay
retention.
e. The provisions of this plan for establishing Performance
Agreements and for receiving performance appraisals and resulting
personnel/pay decisions will not apply to employees who serve
with the Agency for less than 120 days in a consecutive twelve
month period, or to positions filled by Noncareer Executive
Assignments. Other exceptions and related authorities not
included in the plan are:
(1) adverse actions taken under Chapter 752 of the
Federal Personnel Manual;
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PMS MANUAL FOR PMRS EMPLOYEES 3151
(2) alcohol and drug abuse related actions taken
under Chapter 792 of the Federal Personnel
Manual and
(3) pay administration regulations.
7. DEFINITIONS
APPRAISAL is the act or process of reviewing and evaluating
the performance of an employee against the described performance
standard(s).
APPRAISAL PERIOD means the period of time established by
this appraisal system for which an employee's performance will
be reviewed.
APPROVING OFFICIAL is the individual with delegated authority
for approving the final Performance Agreement, performance
appraisal and rating of record, appropriate rewards
(including compensation) and other personnel decisions.
The PMRS Pool Manager is normally the Approving Official.
Assistant Administrators and Regional Administrators are the
Approving Official for Performance Awards.
ASSUMPTION is a known factor over which a PMRS employee
has little, if any, control, but which might exert a significant
impact on the PMRS employee's performance or ability to achieve
an objective. Factors which might legitimately and significantly
influence the employee's ability to perform are listed under
the Assumption heading on the performance standards form.
CRITICAL JOB ELEMENT (CJE) is a component of a job consisting
of one or more duties and responsibilities which contribute
toward accomplishing organizational goals and objectives and
which is of such importance that "Unsatisfactory" performance on
the element would result in "Unsatisfactory" performance in the
position.
CURRENT YEAR OBJECTIVE is a specific result expected of
PMRS employees in their performance of a unique, one-time
responsibility or special initiative planned for the current
appraisal period.
EFFECTIVELY INFLUENCING POLICY; A situation in which an
employee is actively participating in the ultimate determination
as to what, in fact, policy will be. The employee's role must
be more than that of an "expert" or "resource" person rendering
information based solely on expertise and independent judgment.
Recommendations must be frequently accepted and must result in
setting policy rather than implementing or following prescribed
policy.
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EFFECTIVELY RECOMMENDS; A situation in which an employee
makes suggestions on behalf of management that are based on
independent judgment and result in a decision by management.
Such suggestions may be considered separately or in conjunction
with other recommendations, and may be reviewed at successively
higher levels.
GENERAL PAY INCREASE means that portion of the pay adjustment
under 5 U.S.C. 5305 (or for special salary rate employees, any
adjustment under 5 U.S.C. 5303) granted to PMRS employees based
on performance.
i i
INDEPENDENT JUDGMENT; A situation in which an employee's
opinions are not dictated by established procedures or directed
by higher authority and are evident in recommendations and
decisions.
MANAGEMENT OFFICIAL (5 U.S.C. 7103(a)(11)): "...'management
official1 means an individual employed by an agency in a position
the duties and responsibilities of which require or authorize
the individual to formulate/ determine, or influence the policies
of the organization."
MEASURE is an expression, in terms of quantity, quality,
timeliness, and/or manner in which a stated performance objective
is to be achieved at each level of performance.
MERIT INCREASE means the increase in basic pay for a PMRS
employee granted under 5 U.S.C. 5404 on the basis of the employee's
rating of record and position in the pay range. A full merit
increase is equivalent to one-ninth of the difference between
the maximum rate of the grade or special rate range and the
minimum rate of the grade or special rate range.
ONGOING OBJECTIVE is a specific result expected of PMRS
employees in the routine performance of their job responsibilities
during every performance cycle.
OVERALL PERFORMANCE APPRAISAL CERTIFICATION (OPAC) is
the final page of the Performance Agreement. It serves as the
rating of record and officially records scores on individual
Critical Job Elements, the summary rating, compensation and
personnel action decisions. At the conclusion of the
performance appraisal and compensation process, the completed
and approved OPAC is officially maintained in the Official
Personnel Folder for a period of three years.
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PAY ADJUSTMENT PERIOD means the period beginning on the
first day of the first pay period applicable to the employee
starting on or after the first day of the month in which an
adjustment would take effect under 5 U.S.C. 5303 or 5 U.S.C.
5305 and ending at the close of the day preceding the beginning
of the following pay adjustment period.
PERFORMANCE for the purposes of this plan, means an employee's
accomplishment of assigned work as specified in the Critical
Job Elements of an employee's position.
PERFORMANCE AGREEMENT is the aggregation of all of an
employee's written Critical Job Elements and performance
standards. At the end of the appraisal period it also serves
as the document for recording the formal appraisal of the
employee's performance against those Critical Job Elements and
performance standards and compensation and/or other personnel
decisions. A PERFORMANCE AGREEMENT includes the Performance
Guide, the Overall Performance Appraisal Certification, and
performance standard forms.
PERFORMANCE AWARD is a performance-based cash payment to a
PMRS employee based on performance-related accomplishments.
A performance award does not increase base pay.
PERFORMANCE AWARD BUDGET means the amount of money allocated
by an agency for distribution as performance awards to covered
employees.
PERFORMANCE GUIDE is the official document that records the
Critical Job Elements of a PMRS position, as developed by the
immediate supervisor with input from the employee. The second-
level supervisor reviews the Performance Guide before it
becomes final and makes changes, when appropriate.
PERFORMANCE MANAGEMENT PLAN is the description of the agency's
methods to integrate performance, pay and awards with its basic
management functions for the purpose of improving individual
and organizational effectiveness in the accomplishment of agency
mission and goals.
PERFORMANCE OBJECTIVE is a specific result expected of PMRS
employees in the routine performance of their job responsibilities.
PERFORMANCE PAY DECISION means the determination of the total
amount of the general pay increase, merit increase, and
performance award to be granted to an employee made by the
officials also responsible for making the performance appraisal
decisions, in accordance with 0PM instructions.
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PERFORMANCE STANDARD means a statement of the expectations or
requirements established by management for a Critical Job
Element at a particular rating level. A performance standard
may include, but is not limited to, factors such as quality,
quantity, timeliness, and manner of performance.
POOL MANAGER is a member of the Senior Executive Service (SES)
who is charged with the responsibility for approving Performance
Agreements, appraisals, and PMRS compensation decisions. The
Pool Manager is normally a Regional Administrator or an Office
Director.
PROGRESS REVIEW means a review of the employee's progress
toward achieving the performance standards and is not in itself
a rating.
RATING OFFICIAL is the immediate supervisor who prepares
the Performance Agreement and initially recommends the proposed
appraisal and summary rating. A Rating Official may make
recommendations about pay, performance awards, and other personnel
actions, but Rating Officials below the SES level will not
make compensation decisions.
RATING OF RECORD means the summary rating, under 5 U.S.C.
4302a, required at the time specified in the performance
management plan or at such other times as the plan specifies
for special circumstances, including the written notice at any
time that an employee's performance is "Unsatisfactory" on one
or more Critical Job Elements. It is the only document upon
which a performance pay decision can be based.
REVIEWING OFFICIAL is normally the second-level supervisor
who reviews and approves the Performance Agreement, the immediate
supervisor's proposed appraisal, summary rating and initial
pay award, and/or other personnel action recommendations (if
any) and transmits concurrence/non-concurrence and recommendations
to the Approving Official.
SUMMARY RATING means the written record of the appraisal of
each Critical Job Element and the assignment of a summary
rating level.
SUPERVISOR (5 U.S.C. 7103(a)(10): "...'supervisor' means an
individual employed by an agency who has the authority in the
interest of the agency to hire, direct, assign, promote, reward,
transfer, furlough, layoff, recall, suspend, discipline, or
remove employees, to adjust their grievances, or to effectively
recommend such actions, if the exercise of the authority is
not merely routine or clerical in nature but requires the
consistent exercise of independent judgment ..."
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UNSATISFACTORY PERFORMANCE is the term in EPA's System
that equates to "Unacceptable" performance as provided in
5 U.S.C. 4301(3) When an employee's performance is rated "Unsatis-
factory" on one or more Critical Job Elements/ the rating of
record must be "Unsatisfactory" regardless of scores on other
elements or total numerical rating.
WEIGHT is a number of points assigned to each ongoing and
current year objective that reflects its relative importance to
the whole. When added together, the weights for all ongoing
and current year objectives must equal 100 points.
8. TIMING OF EVENTS IN PERFORMANCE MANAGEMENT CYCLE
The Agency appraisal period begins October 1 and ends September 30;
EVENT TIMEFRAME
PERFORMANCE AGREEMENT
0 Drafted by employee/supervisor
0 Approved by second level supervisor
MID- YEAR PROGRESS REVIEW
0 Supervisor/employee discussion of
employee's performance and review/
update of employee's Performance
Agreement
PERFORMANCE APPRAISAL
"Official appraisal of employee's
performance against Performance
Agreement and assignment of summary
rating^
MERIT INCREASE/PERFORMANCE AWARD
DECISIONS BASED ON PERFORMANCE RATING
RECEIPT OF PMRS MERIT INCREASE IN PAY
CHECK
By October 1
By April 30
By October 31
Finalized before end of
last pay period in November
On or before last pay day
in December (retroactive to
first day of first pay period
beginning on or after
October 1) •'
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CHAPTER II - PERFORMANCE MANAGEMENT AND RECOGNITION SYSTEM
Table of Contents
PARAGRAPH PARAGRAPH
TITLES NUMBERS
Performance Planning 1
Performance Evaluation 2
Performance Reinforcement 3
Performance Standard Review Boards 4
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PMS MANUAL FOR PMRS EMPLOYEES 3151
CHAPTER II - THE PERFORMANCE MANAGEMENT AND RECOGNITION SYSTEM
EPA's Performance Management and Recognition System consists of
three interlocked stages:
(1) performance planning;
(2) performance evaluation; and
(3) performance reinforcement.
1. PERFORMANCE PLANNING The performance planning phase occurs
at the beginning of the annual performance period and normally
coincides with the beginning of a fiscal year. During this
time, all PMRS employees and their immediate supervisors mutually
complete the Performance Guide and then the entire official
Performance Agreement. Step-by-step guidance for completing
this process is outlined in "Developing Your Critical Job
Elements and Performance Standards; An Employee Workbook".
This workbook is available from the Servicing Personnel Office.
Performance planning includes the following basic steps:
a. The supervisor communicates organizational goals and
objectives to PMRS employees. These organizational goals and
objectives will establish and shape the scope, direction, and
emphasis for the subsequent performance period.
b. The PMRS employee should use the supervisor's Performance
Agreement and stated organizational goals and objectives, the
employee's own position description, the organization's
functional statements, and other relevant sources to draft
the Critical Job Elements, which relate to what the PMRS employee
personally commits to, together with what the employee's organi-
zation is committed to accomplish. Supervisors have the final
determination on all Critical Job Elements.
c. When inconsistencies between proposed Critical Job
Elements and the duties and responsibilities of the employee's
position description are identified, the supervisor requests
assistance from the Servicing Personnel Office to resolve those
inconsistencies.
d. The PMRS employee uses the approved Performance Guide,
other appropriate planning documents (e.g., affirmative action
plans, budget documents, organization planning documents), and
a knowledge of the employee's own development needs to draft a
preliminary Performance Agreement. PMRS employees should begin
by drafting three basic types of performance objectives for their
Critical Job Elements: (a) on-going objectives; (b) current year
objectives; and (c) personal growth objectives, as appropriate.
Generally, PMRS employees should focus on developing approximately
6-10 performance objectives, which relate both to what they per-
sonally commit to, and also to what their whole organization is
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PMS MANUAL FOR PMRS EMPLOYEES 3151
committed to accomplish. This guideline should serve to
emphasize the major results expected during the coming perfor-
mance period and avoid excessive fragmentation of results.
Applying the factors of quantity, quality, timeliness and
manner of performance against each objective, the PMRS employee
then drafts measures at three performance levels: (a) that
measure of achievement against which performance would be
judged to be Fully Successful; (b) that measure of achievement
against which performance would be judged to be Outstanding;
and (c) that measure of achievement against which performance
would be judged to be Unsatisfactory. The PMRS employee then
assigns relative weights, or priorities, to each on-going and
current year performance objective. Personal growth objectives
are not weighted. The weights must total 100.
e. The PMRS employee and the supervisor meet to discuss
the performance standards, (i.e., performance objectives,
measures and weights pertaining to the Critical Job Elements)
and to develop a final Performance Agreement. The performance
standards must be specific, measurable, attainable, controllable,
and must be thoroughly understood by both parties. Supervisors
will have the final determination on all performance standards
and weights.
f. If inconsistencies are identified between proposed
performance standards and the general level of duties and
responsibilities of the employee's position description, the
supervisor requests assistance from the Servicing Personnel
Office to resolve these inconsistencies while proceeding with
the performance planning process.
g. The PMRS employee's second-level supervisor, at the
minimum, reviews the final Performance Agreement for fairness,
equity and consistency across the overall organization and
approves it, when appropriate. Both the immediate supervisor
and the PMRS employee maintain a copy of the approved Performance
Agreement.
h. The review of the Performance Agreement continues through
management channels until it reaches the first SES level. This
official reviews the Performance Agreement for fairness, equity,
and consistency, and is normally the Approving Official. The
PMRS Pool Manager may elect to be the Approving Official for
Performance Agreements.
i. Requirements for Establishing Performance Agreements.
As a general rule, all employees, regardless of type of appoint-
ment, must have approved Performance Agreements within 30
calendar days of appointment or other position change. Generally,
employees are responsible for drafting their Performance
Agreements. Performance Agreements must be approved by
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management. In cases where an official position change does
not occur, or does occur but for a period of less than 120
calendar days, (i.e., details or temporary promotions of less
than 120 calendar days), employees and their supervisors should
not develop new Performance Agreements but should modify present
Performance Agreements to include temporary work assignments.
2. PERFORMANCE EVALUATION The performance evaluation phase
consists of two major parts: performance tracking and
performance appraisal.
a. Performance tracking is the on-going, informal
observation and assessment of performance during the performance
period. The assessment begins the day the objectives are set
and continues throughout the year. Tracking is done by both
the PMRS employee and the supervisor against the ongoing,
current-year, and personal growth objectives and provides an
opportunity to: discuss progress toward standards; provide for
supervisory feedback; and add, delete or modify standards as
required. It provides time for discussion of performance
achievement, or lack of it, and suggestions for improvement.
During this phase the following aspects must be considered.
(1) Since on-going, current-year, and personal growth
objectives are totally results-oriented, in-progress tracking
during the course of the year is extremely difficult unless an
on-going vehicle is available to assist the supervisor and the
employee in predicting achievement of the objective, adjusting
to or planning for unfavorable situations, and identifying the
need for supervisory guidance and assistance in overcoming
barriers to success. One such vehicle already available to the
supervisor and employee is the organization's existing work
planning process. The concept is the same whether the process
calls for work plans, action plans, or progress review plans.
By adapting these plans to provide for identification of
individual employee assignments where necessary, the employee
can identify those action steps needed to achieve the end
objective and the guideline completion dates, or checkpoints,
related to those individual action steps. Using this process,
the employee receives built-in motivation and feedback from the
action plan itself, as action steps are completed on time,
early, or late. Furthermore, the supervisor can quickly and
regularly assess the employee's degree of progress toward
objectives and can easily record observations or significant
circumstances in the "performance highlights" section of the
performance standards forms. These notations may be used at
the end of the performance year as justification for the rating
assigned to the performance objective. Lastly, the action plan
process will quickly assist both the supervisor and the employee
in determining when and how to change the Performance Agreement.
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(2) Continuous face-to-face communication between the
supervisor and the employee is an essential part of supervising
and almost always occurs in some fashion during the daily work
routine. Performance tracking, however, demands a more struc-
tured approach to periodic progress reviews which focus on the
employee's Performance Agreement and action plans, rather than
on daily task assignments and recent crisis situations. For this
reason, employee progress reviews should be incorporated in other
organizational program review processes. Although quarterly
progress reviews are preferred because they are the most bene-
ficial and timely, supervisors not capable of conducting quarterly
reviews must, at the minimum, under normal circumstances, conduct
a mid-year progress review with each PMRS employee. The purpose
of the mid-year progress review is to notate performance
highlights to date, to determine the need for adjusting action
plans and/or the Performance Agreement itself, and to develop a
plan of action for improving performance levels where appropriate.
Since mid-year progress reviews are required to be conducted
with each PMRS employee, supervisors and employees must sign
and date the space designated "mid-year review" located in
Section D of the Performance Agreement Form (EPA Form 3115-24).
The signatures serve to indicate only that each performance
standard has been reviewed and discussed by both the employee
and supervisor.
(3) The Performance Agreement is meant to be a "living
document," subject to change in order to remain meaningful; but
at the same time, it must represent a firm commitment to
achieving results. Therefore, changes should be made in cases
of: organizational and/or job changes affecting Critical Job
Elements; major changes in operating plans, reprogramming,
legislative and/or court mandates; or unforeseen, uncontrollable
events preventing successful performance. These changes may
require: adding, deleting, or revising Critical Job Elements,
performance objectives, and measures; revising weights to
reflect changes in priorities; or decreasing or extending
measures of quantity, quality, timeliness and manner of perfor-
mance. If the change is lengthy, it is attached to the original
Agreement; and if not, it is simply recorded with pen and ink
on the document. In any case, the change must be signed and
dated by the employee, the immediate supervisor and the Reviewing
Official at the minimum. In this way, the Performance Agreement
is kept a living document with ongoing relevance, ready to be
used for the evaluation of performance at the end of the
performance period.
b. Appraisal is the act or process of reviewing and
evaluating the performance of an employee against the described
performance standards, which results in the assignment of a rating
of record. The Agency's minimum appraisal period is 90 calendar
days.
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(1) Performance Period
(a) The official performance appraisal normally
occurs annually in October for all PMRS employees, except for
PHS Officers and employees occupying Administratively-Determined
(AD) positions who are not included in the PMRS program. The
official rating of record given in October serves as the basis
for the PMRS pay decisions which are finalized before the end
of the last pay period in November.
_! However, those who have not served in a
PMRS position for at least 90 calendar days will be evaluated
at the end of their 90-day period, at which time a rating of
record will be prepared.
_2 Other evaluations occurring during the
course of the performance period (e.g., completion of details,
or temporary assignments of 90 days or more) will result in
summary ratings. Summary ratings do not supersede the previous
year's rating of record given in October, however they are
factored into the preparation of the rating of record in the
coming year. For performance periods of less than 90 days, the
supervisor should prepare input on the employee's performance
for the supervisor of record to use in preparing the rating of
record in the coming year.
(b) Employees who have served in a PMRS position,
but not in the same job or under the same supervisor, are
appraised annually, and provisions for "split appraisals" should
be made by the Rating Official. The supervisor of record at
the time of the annual appraisal is ultimately responsible for
evaluating the employee's performance during the entire perfor-
mance period. Therefore, the supervisor is responsible for
using any appropriate means to obtain the performance data
required to accurately assess the employee's performance.
Supervisors should consider the following recommendations for
obtaining performance data:
_!_ Modify the Performance Agreement to
incorporate the goals of both the previous and the present
positions, making the necessary related changes on weights. If
this approach is used, changes should be made 90 days or more
before the appraisal is to occur.
2_ In positions involving multiple supervisors,
e.g., matrix management, part-time special projects, etc., the
official supervisor of record is responsible for preparing the
final rating of record, and should be responsible for obtaining
ratings of individual standards from those supervisors having
responsibility for those standards.
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PMS MANUAL FOR PMRS EMPLOYEES 3151
3_ Wherever possible, outgoing supervisors
should prepare summary ratings for their subordinate PMRS
employees before they leave their position. The outgoing
supervisor should evaluate the employee's work for the period
of performance and provide a copy of the performance information
to both the employee and the new supervisor. For periods of
performance which are less than 90 days, the outgoing supervisor
should provide input on the employee's performance. For periods
of performance which are 90 days or longer, the outgoing super-
visor should provide a summary rating. At the conclusion of
the performance period, the new supervisor then evaluates the
employee against the new position's Performance Agreement and
normally calculates a summary rating based on summary ratings
and input on performance in all positions held during the
performance period. The resulting summary rating should reflect
the relative percentage of time spent in each position. Since
preparation of summary ratings for input is not always possible
when a supervisor leaves, higher-level management should provide
for contingencies by assuring that all supervisors maintain
adequate supervisory notes of performance data to allow
compilation by a new supervisor into a final summary rating.
_4 The supervisor may gather performance data
from the employee and from other appropriate sources such as
operating plans, tracking systems, etc. This data serves as
supporting information to the supervisor's official assessment
of performance.
(c) Progress reviews of an employee's performance
against the goals and measures stated in the Performance
Agreement can and should occur throughout the performance
period.
(2) Requirements for Appraising "Special Circumstance"
Employees
(a) Details and Temporary Promotions of 120 Days
or More - When a PMRS employee is detailed or temporarily
promoted within the Agency for a period which is expected to
last 120 calendar days or longer, Critical Job Elements and
performance standards covering the temporary work assignment
must be developed and included in the Performance Agreement.
The detail or temporary promotion supervisor is required to
have Critical Job Elements and performance standards covering
the temporary work assignment in place as soon as possible, but
no later than thirty calendar days after the beginning of the
assignment. The detail or temporary promotion supervisor is
responsible for (1) evaluating the employee's performance
against the Critical Job Elements and performance standards
which have been developed to cover the temporary work assignment;
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PMS MANUAL FOR PMRS EMPLOYEES 3151
and (2) for providing a copy of the overall performance score
and resulting summary rating to the employee's supervisor of
record. At the conclusion of the performance period, the super-
visor of record then evaluates the employee's performance
against the Performance Agreement which covers the employee's
position of record and normally calculates a summary rating
based on summary ratings and input on performance in all
positions held during the performance period. The resulting
summary rating should reflect the relative percentage of time
spent in each position.
(b) Position Changes Within the Agency When a
PMRS employee changes positions within the Agency, and has
been in the position for the 90 day minimum appraisal period,
a summary rating must be prepared by the losing supervisor.
The losing supervisor must provide a copy of the overall perfor-
mance score and resulting summary rating to both the employee
and the new supervisor. At the conclusion of the performance
period, the new supervisor then evaluates the employee against
the new position's Performance Agreement and normally calculates
a summary rating based on summary ratings and input on performance
in all positions held during the performance period. The
resulting summary rating should reflect the relative percentage
of time spent in each position. When the new supervisor cannot
give the employee a rating of record as required by this Plan
(i.e., the employee has not served the 90 day minimum appraisal
period in the new position), the new supervisor will normally
calculate a summary rating based on input and summary ratings
on performance in all positions up to the time of the employee's
position change. This summary rating serves as the rating of
record used to make performance pay decisions. When the employee
has completed the 90 day minimum appraisal period in the new
position, the new supervisor then evaluates the employee against
the new position's Performance Agreement and calculates a
summary rating based on the summary rating prepared for pay
purposes together with the summary rating for the new position.
The resulting summary rating should reflect the relative per-
centage of time spent in each position and becomes the employee's
rating of record for other than pay purposes.
(c) Transfers to a New Agency - When a PMRS employee
moves to a new agency after having served the 90 day minimum
appraisal period in the EPA position of record, the losing
supervisor must evaluate the employee's performance against the
Performance Agreement, prepare a summary rating, and forward it
to the Servicing Personnel Office. Among other requirements,
the Servicing Personnel Office then files the summary rating in
the employee's Official Personnel Folder (OPF) before transferring
the OPF to the new agency (refer to Chapter IV, para. 4,d.(3)).
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PMS MANUAL FOR PMRS EMPLOYEES 3151
(d) Transfers into EPA - When an employee transfers
into an EPA PMRS position from a PMRS position in another agency,
and the employee has served in the other agency for the 90 day
minimum appraisal period, that agency normally prepares and
transfers a summary rating. When the summary rating is present,
the EPA supervisor will consider it in the employee's final
rating of record. When the EPA supervisor cannot give the
employee a rating of record as required by this plan (i.e., the
employee has not served the 90 day minimum appraisal period in
the EPA position), the transferred summary rating will be used
only for the purpose of making performance pay decisions.
After the employee has completed the 90 day minimum appraisal
period in the new position, the EPA supervisor then evaluates
the employee against the new position's Performance Agreement
and calculates a summary rating based on the transferred summary
rating together with the summary rating for the new position.
The resulting summary rating should reflect the relative per-
centage of time spent in each position and becomes the employee's
rating of record for other than pay purposes. If the summary
rating is not transferred with the employee's OPF to the EPA
Servicing Personnel Office, the EPA Servicing Personnel Office
shall contact the losing organization in an attempt to obtain
it.
(e) Details Outside of EPA - In cases where PMRS
employees are detailed outside EPA to other PMRS covered
positions, EPA must make a reasonable effort to obtain appraisal
information from the outside organization. This information
shall be considered in deriving the employee's next rating of
record.
_! If the employee has served in EPA for
the 90 day minimum appraisal period, the employee must be
rated. The rating of record shall also take into consideration
performance appraisal information obtained from the borrowing
organization.
2. If tne employee has not served in the
Agency for the 90 day minimum appraisal period, but has served
for the 90 day minimum appraisal period outside of EPA, EPA
must make a reasonable effort to prepare a rating of record
based on performance information obtained from the borrowing
organization.
(f) EPA Employees on IPA Assignment - EPA employees
on Intergovernmental Personnel Assignment (IPA) must have a
Performance Agreement covering their work at EPA if tney work
at the Agency 90 calendar days or longer during the appraisal
period. In this case, the employee's rating of record will be
based on the supervisor of record's appraisal of the employee's
performance during the 90 day minimum appraisal period. If,
due to the length of the IPA assignment, the PMRS employee has
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PMS MANUAL FOR PMRS EMPLOYEES 3151
not been with EPA for the 90 day minimum appraisal period, the
employee will be designated as unrateable.
(3) The Appraisal Process
(a) The performance appraisal is a process where
the employee and the supervisor independently review the
employee's accomplishments against those planned in the Perfor-
mance Agreement. The employee will prepare a self-assessment
and submit it to the supervisor. The format of the employee's
self-assessment is at the discretion of the supervisor.
(b) The following five element rating levels are
used in evaluating each individual performance standard and for
determining the element rating for each Critical Job Element:
1^ "Outstanding" (measures for which were
previously established during the performance planning phase)
represents that performance in which everything that should
have been done was done, and was done in the manner stated. At
the "Outstanding" level, it would be difficult to think of ways
in which performance could have been better. Objectives
accomplished at the "Outstanding" level are assigned five (5)
points.
_2 "Exceeds Expectations" signifies that the
results achieved are clearly beyond those that could reasonably
be expected, even though it may be possible to think of areas
in which performance could have been even better. Objectives
accomplished at the "Exceeds Expectations" level are assigned
four (4) points.
_3 "Fully Successful" (measures for which were
established during the performance planning phase) represents
that performance which can be reasonably expected of any employee
on the job in order to fully and adequately achieve the assigned
responsibility. "Fully Successful" is the level at which most
employees perform. Objectives accomplished at the "Fully
Successful" level are assigned three (3) points.
£ "Minimally Satisfactory" indicates that
performance is less than "Fully Successful" and improvement is
expected. Objectives accomplished at the "Minimally Satisfactory"
level are assigned two (2) points.
5^ "Unsatisfactory" (measures for which were
previously established during rhe performance planning phase)
is the term in EPA's System that equates to "Unacceptable" per-
formance as defined by law. When the employee's performance is
rated "Unsatisfactory" on one or more Critical Job Elements,
the rating of record must be "Unsatisfactory" regardless of
scores on other elements or total numerical rating. Objectives
rated at the "Unsatisfactory" level are assigned one (1) point.
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PMS MANUAL FOR PMRS EMPLOYEES 3151
(c) Where more than one performance standard exists
for a Critical Job Element, the following procedure is used to
derive the summary rating for that Critical Job Element:
_! Add the weights assigned to the performance
standards pertaining to the Critical Job Element.
2. Add the point values (weight times the
numerical rating assigned to each standard pertaining to that
element).
J> Divide the values by the weights to arrive
at an average numerical rating of 1 through 5.
_4 Numerical ratings for Critical Job Elements
must be converted to a summary rating according to the following
scale:
Equal to or greater than:
4.5 up to and including 5.0 = "Outstanding"
4.0 but less than 4.5 = "Exceeds Expectations"
3.0 but less than 4.0 = "Fully Successful"
2.0 but less than 3.0 = "Minimally Satisfactory"
1.0 but less than 2.0 = "Unsatisfactory"
J5 For example, an employee has two standards
under a particular Critical Job Element. On the first standard,
the employee receives a "Fully Successful" rating which is
assigned a numerical rating of 3. That standard has a weight
of 15 points, which results in a value of 45 points. On the
second standard, which has a weight of 10, the employee is
rated "Outstanding" and receives a numerical rating of 5, which
results in a value of 50. The total weights for the two standards
under this Critical Job Element equal 25; the total point value
assigned is 95. Next, 95 is divided by 25 to arrive at the
average numerical rating of 3.8. Using the scale outlined
above, this converts to an average rating of "Fully Successful"
for that particular Critical Job Element.
j> The addition of the individual values for
each performance standard determines the overall performance
value.
(d) During the appraisal process, the following
procedures will apply:
_!_ The PMRS employee completes the self-
assessment of performance against the Performance Agreement, as
described in paragraph 2b(3)(a) on page 2-8 and presents it to
the supervisor for consideration in the final ratings.
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PMS MANUAL FOR PMRS EMPLOYEES 3151
2_ The supervisor considers the PMRS employee's
own assessment of performance in arriving at a final proposed
performance rating for each performance standard.
^ Using the Overall Performance Appraisal
Certification, the supervisor then computes the total performance
values and records the summary ratings for each Critical Job
Element, as discussed above, and totals all performance values
to arrive at an overall performance score. Finally, the super-
visor uses the following conversion table to convert the overall
performance score to one of the following summary rating levels:
EVALUATION SCORING SYSTEM
Equal to or greater than;
450 up to and including 500 = "Outstanding"
400 but less than 450 = "Exceeds Expectations"
300 but less than 400 = "Fully Successful"
200 but less than 300 = "Minimally Satisfactory"
100 but less than 200 = "Unsatisfactory"
a_ "Outstanding" represents performance
that not only exceeds requirements, but is exceptional and
requires formal recognition.
t> "Exceeds Expectations" represents
performance that substantially surpasses normal requirements.
£ "Fully Successful" represents performance
that meets all requirements, in order to fully and adequately
achieve the assigned performance.
d_ "Minimally Satisfactory" represents
performance that is less than "Fully Successful" and improvement
is expected.
e_ "Unsatisfactory" represents performance
that in EPA's System equates to "Unacceptable" performance as
provided in 5 U.S.C. 4301(3). When an employee's performance
is rated "Unsatisfactory" on one or more Critical Job Elements,
the rating of record must be "Unsatisfactory" regardless of
scores on other elements or total numerical rating.
j4 Once supervisors have noted their initial
appraisal recommendations and completed the appraisal portion
of the Overall Performance Appraisal Certification, the entire
package for each employee being rated is submitted to the
Reviewing Official for review, discussion (if necessary) and
tentative approval of the appraisal recommendations, pending
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PMS MANUAL FOR PMRS EMPLOYEES 3151
conduct of the employee appraisal interview. During the employee
appraisal interview, the supervisor should consider new or
overlooked information provided by the employee. The interview
could.alter the tentative rating if relevant additional
information is presented.
J5 Once the supervisor receives the approved
tentative rating, the supervisor schedules the performance
appraisal interview with the employee. Following the conduct
of the appraisal interview, the supervisor should review any
new information provided in the session, consider whether or
not it should influence the employee ratings previously assigned,
and discuss and obtain approval on any significant proposed
changes from higher level management.
61 The supervisor and the PMRS employee meet
to discuss the rating, and to mutually develop the employee's
Performance Improvement Plan (PIP), if necessary.
1_ The supervisor and the PMRS employee sign
and date the Performance Agreement on the back of the OPAC form
to signify that the performance appraisal interview has taken
place. Employees' signatures on OPACs indicate that they have
conferred with their supervisors about their performance against
the established performance standards. Signatures do not
indicate concurrence with ratings of record nor do they preclude
employees from using the Agency's Administrative Grievance
System to submit objections to ratings of record.
J3 The supervisor transmits the signed Overall
Performance Appraisal Certification to the Reviewing Official
with the PMRS employee's comments, if any, along with any
Performance Improvement Plan, if such a plan is necessary.
9_ The review process continues through the
organizational hierarchy until the reviewing level reaches the
first SES-level manager, who becomes the Recommending Official
for rating, pay, and other personnel decisions. The Administrator,
Deputy Administrator, the Inspector General, the General Counsel,
Associate Administrators, Assistant Administrators, Regional
Administrators, and Staff Office Directors shall be the Rating,
Reviewing and Approving Officials for employees reporting
directly to them.
IQ_ The Pool Manager, the Approving Official,
renders the final decision on the rating of record as well as
any compensation/reinforcement recommendations, based on consi-
deration of the materials provided by the Recommending Official,
the immediate supervisor, the PMRS employee's comments, if any,
and all intervening review levels.
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PMS MANUAL FOR PMRS EMPLOYEES 3151
11 After making final decisions, the Pool
Manager notifies employees in writing of their final rating of
record, and any related compensation decisions. The original,
signed OPAC form is submitted to the Servicing Personnel Office
for inclusion in the Employee Performance File. Copies of the
Performance Agreement, employee/supervisory notes, and any
other supporting documentation are retained by the employee
and/or supervisor in accordance with the procedures in Chapter
4, paragraph 4,d. (1) and (2), pages 4-6 through 4-9.
3. PERFORMANCE REINFORCEMENT
a. Performance reinforcement begins with the employee's
own assessment of performance and continues to be emphasized
throughout the evaluation process. It includes four aspects:
(1) The supervisor's appraisal of the employee's
performance, resulting from the supervisor's consideration of
both the PMRS employee's own assessment and the supervisor's
assessment of the PMRS employee's performance achievements.
(2) Pay and other personnel decisions, which are based
directly on the results of the overall performance score and the
conversion of that score to one of the five established summary
rating levels.
(3) A Performance Improvement Plan (PIP) if required,
which is based on an evaluation of the PMRS employee's performance
deficiencies.
(4) The performance appraisal interview between the
supervisor and the PMRS employee which communicates the rating
of record together with the propos-ed pay and other personnel
decisions, and any required Performance Improvement Plan.
b. Employee Assistance. EPA's PMRS System provides for
assisting employees in improving performance rated at a level
below the "Fully Successful" level. Such assistance may include,
but is not limited to: formal training, on-the-job training,
counseling, and closer supervision. In certain cases, supervisors
must implement Performance Improvement Plans.
c. Performance Improvement Plan (PIP). A PIP is a document
or a collection of documents intended to identify an employee's
performance deficiencies, the actions that must be taken by the
employee to improve performance, and provisions for counseling,
training, or reassignment.
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PMS MANUAL FOR PMRS EMPLOYEES 3151
(1) When a PIP Must be Prepared. A supervisor must
prepare a PIP for an employee whose preformance on one or more
CJE's is "Unsatisfactory". This should be done during the
appraisal period. However, if this is not done prior to the
official appraisal, it must be done as part of the official
appraisal.
(2) Documentation Requirements
(a) The first and second-level supervisor must sign
the PIP. The supervisor must request that the employee sign and
date the PIP. The purpose of the employee's signature is to show
that the employee received a copy, not to indicate the employee's
concurrence. If the employee refuses to sign, the supervisor
should note the fact and the date.
(b) The employee must be provided a copy of the PIP.
(c) The Servicing Personnel Office must receive a
copy of the PIP. This will be filed in the Employee Performance
File located in the employee's Official Personnel Folder. The
PIP will be destroyed if the employee improves performance to an
acceptable level.
(3) Format and Content of a PIP
(a) Format of a PIP. A PIP should be in the form
of a memorandum from the Rating Official to the employee. A
specified beginning and ending date should be designated
(generally a 60 calendar day period).
(b) Content of a PIP. Each PIP should be geared to
the needs and circumstances of the s-ituation. The tone of the
PIP should be factual and constructive. The following information
should be included:
_1 The employee's name, position title, position
number, series, grade, and organizational location.
_2 Each CJE in the employee's Performance Agreement.
A restatement or clarification of the "Fully Successful" performance
level for each CJE should be included. Clarifications should include
any numerical criteria or benchmarks being used by the supervisor
to interpret the performance standard.
_3 That the employee may be demoted or removed,
if the employee is rated "Unsatisfactory" during the Performance
Improvement Period.
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PMS MANUAL FOR PMRS EMPLOYEES 3151
£ What assistance will be available to
employees to improve their performance.
(4) Withdrawing or Extending a PIP. A PIP may be
withdrawn or extended in situations such as those described
below. In each case, the action should be documented by a
memorandum which becomes part of the PIP.
(a) A PIP should be withdrawn if the employee is
changed to a different position at the same or different grade.
The PIP is not continued in effect in the new position.
(b) A PIP may be extended at any time.
(5) Expiration of a PIP. If a PIP is not extended or
withdrawn by the designated expiration date, the supervisor
must conduct a second appraisal and the following steps should
be followed:
(a) If the employee's performance has improved to
an acceptable level, a new OPAC is prepared, signed, and approved.
The new OPAC is sent to the Servicing Personnel Office. The
supervisor and the employee each keep a copy. The Servicing
Personnel Office substitutes the new OPAC for the first OPAC in
the employee's Employee Performance File located in the Official
Personnel Folder.
(b) Employees whose performance has improved to
the "Minimally Satisfactory" level, but not to the "Fully
Successful" level, if not reassigned, should be given an
additional opportunity to demonstrate performance at the "Fully
Successful" level or higher.
(c) Employee's whose performance is rated
"Unsatisfactory" must be removed from their position. The
Servicing Personnel Office must be consulted before taking such
steps.
(d) An employee will be reduced in grade or removed
based on "Unsatisfactory" performance in accordance with the
procedures contained in EPA Order 3110.16, Reduction in Grade
and Removal Based on Unacceptable Performance, 5 C.F.R. Part
432 and 5 U.S.C. 4303.
4. PERFORMANCE STANDARDS REVIEW BOARDS (PSRB). The Agency will
establish one Performance Standards Review Board for the Office
of the Administrator, the Associate Administrator's office, and
staff offices reporting directly to the Office of the Adminis-
trator, one for each Assistant Administrator, one for the
Office of General Counsel, one for the Inspector General, and
one for each EPA Region.
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PMS MANUAL FOR PMRS EMPLOYEES 3151
a. Composition
(1) Each PSRB will have at least six members with at
least one-half of each PSRB being composed of PMRS employees in
the competitive service.
(2) The chair of each board will be designated by the
Deputy Administrator, or the appropriate Assistant Administra-
tor, Regional Administrator, the General Counsel, or Inspector
General.
b. Nominations for PSRB membership will come from the
program offices within the organization covered by the board.
Appointments will be approved by the Deputy Administrator, or
the appropriate Assistant Administrator, Regional Administrator,
the General Counsel or Inspector General.
c. Functions and Responsibilities
(1) Each PSRB will be responsible for conducting a
random sample review of all established performance standards
in the organization. The sample must include standards from
each division within the organization. The following procedures
will be used by the PSRB in reviewing performance standards:
(a) The performance standards will be reviewed
for realistic and measurable factors and for consistency between
similar positions.
(b) Constructive feedback on improving performance
standards will be given to the appropriate program managers.
(2) The PSRB will review ratings of record for equitable
application and proper documentation.
(3) An annual report of findings will be made to the
appropriate official e.g., the Deputy Administrator, Assistant
Administrator, Regional Administrator, General Counsel, or
Inspector General within 30 days of the conclusion of each
review.
(4) The PSRB will consider the feasibility of
appropriate organizational awards and will provide technical
assistance on any demonstration projects on performance appraisal.
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PMS MANUAL FOR PMRS EMPLOYEES 3151
CHAPTER III - PERFORMANCE MANAGEMENT AND RECOGNITION SYSTEM
COMPENSATION
Table of Contents
PARAGRAPH PARAGRAPH
TITLES NUMBERS
Managing PMRS Compensation ...1
Making Merit Increase Decisions 2
Making General Increase Decisions 3
Basic Pay 4
Performance Awards 5
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PMS MANUAL FOR PMRS EMPLOYEES 3151
1. MANAGING PMRS COMPENSATION - Funding. Funds for general
increases, merit increases, and performance awards will be provided
from the Agency's budget for Personnel Compensation and Benefits
(PC&B).
2. MAKING MERIT INCREASE DECISIONS. This plan ensures that
"Outstanding" performers receive the highest merit increases. At
the same time, it guarantees employees rated "Fully Successful"
and above, one-third to a whole within-grade increase each year,
depending on position in the salary range.
a. Timing of and Eligibility for Merit Increases.
(1) Merit Increases are to be effective on the first day
of the first applicable pay period commencing on or after October 1
of each year. Merit increases may be paid retroactively but must
be received by the employee no later than December 31 of the
applicable year.
(2) An employee must be in a PMRS position on the effective
date of the merit increase to be eligible for a merit increase.
(3) An employee newly appointed to the Government within
90 days of the effective date (including the effective date) of
the merit increase shall not be eligible for a merit increase.
For the purposes of this paragraph:
(a) A reinstated employee is considered to be a
newly appointed employee;
(b) An employee reemployed under Part 351, Subpart
J (RIF), is not considered to be a newly appointed employee;
(c) An employee receiving a new appointment without
a break in service of one or more work days is not considered to
be a newly appointed employee.
(4) If an employee moves into the PMRS on or before the
effective date of the merit increase and has received an increase
to base pay (promotion, within-grade increase, Quality Step
Increase) within 90 days of such effective date, the employee will
not receive a merit increase for that fiscal year. An increase
occurring on the effective date of the merit increase is considered
to be within this 90 day period. Actions covered by this rule
include:
(a) Conversion to PMRS;
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PMS MANUAL FOR PMRS EMPLOYEES 3151
(b) Reassignment to the PMRS from another Federal
pay system;
(c) Promotion to the PMRS;
(d) Temporary promotion to the PMRS.
(5) When an employee's performance cannot be appraised
for EPA's minimum 90 day appraisal periodf merit increases will
be granted in accordance with EPA provisions for unrateable
employees. (See b(3)(a)).
b. Guidance for Salary Adjustments.
(1) The ranges of possible salary adjustments are based
on two important factors:
(a) The employee's position in the salary range.
An employee's salary range is divided into terciles as follows:
_! First Tercile. An employee who is in the
lower third of the~~salary range (below the rate for step 4 of the
General Schedule for the employee's grade) is in the first tercile.
2 Upper Terciles. An employee whose pay equals
or exceeds the rate for step 4 of the General Schedule f.or the grade
is in the upper terciles.
(b) The employee's performance rating. Performance
will be evaluated and a score assigned, in accordance with EPA's
Performance Management and Recognition System. Once position in
the range (tercile) and performance rating are determined/ the
chart on the next page will be used to determine the employee's
merit increase.
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PMS MANUAL FOR PMRS EMPLOYEES
3151
COMPENSATION
PERFORMANCE
RATING
"Outstanding"
"Exceeds
Expecta-
tions"
"Fully
Successful"
"Minimally
Satisfact-
ory"
"Unsat-
isfactory"
MERIT INCREASE
1ST. TERCILE UPPER TERCILES
FULL WIGI* FULL WIGI
FULL WIGI 1/2 WIGI
FULL WIGI 1/3 WIGI
ZERO ZERO
ZERO ZERO
*WIGI • WITHIN-GRADE INCREASE EQUIVALENT
(2) The following merit increases are mandated for PMRS
employees based on their performance rating and tercile (limited
by the maximum rate of pay within each grade):
(a) An employee in the first tercile, who receives
a "Fully Successful" rating or above, shall receive the full
dollar equivalent of a WIGI.
(b) An employee in the upper terciles, who receives
a rating of "Fully Successful", shall receive one-third of the
dollar equivalent of a WIGI, rounded to the next higher dollar.
(c) An employee in the upper terciles, who receives
a rating of "Exceeds Expectations", shall receive one-half of the
dollar equivalent of a WIGI, rounded to the next higher dollar.
(d) An employee in the upper terciles, who receives
a rating of "Outstanding", shall receive the full dollar equivalent
of a WIGI.
(e) An employee who receives a rating of "Minimally
"Satisfactory" or "Unsatisfactory", shall receive a zero merit
increase.
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PMS MANUAL FOR PMRS EMPLOYEES 3151
(3) Granting of Merit Increases to Unrateable Employees.
(a) In general/ an unrateable employee is a PMRS
employee who has not been under elements and standards for the
minimum appraisal period, 90 days. This should be extremely
rare. The following are situations in which an employee would
be designated as unrateable:
_1 The employee was converted, promoted, or
temporarily promoted into a PMRS position for less than 90 days.
j! The employee was on long-term training or
IPA assignment.
^3 The employee had elements and standards,
but cannot be rated because the supervisor left the agency
before the end of the rating period and no other supervisor
or manager has sufficient knowledge of the employee's perfor-
mance to rate the employee.
(b) Under these circumstances, a merit increase shall
be granted using one of the following rules in the order specified:
^ The previous rating of record is extended,
if the rating was done no earlier than the previous agency rating
period. However, this rating must be a PMRS rating. If an employee
moves to a new agency or new organization at any time during the
appraisal period, a summary rating must be prepared which must be
taken into consideration by the gaining organization when deriving
the next rating of record. This summary rating, while not being
considered the employee's rating of record for the current appraisal
period, is used for the purpose of making performance pay decisions
for unratable employees. Or, if this cannot be done:
2_ The employee receives an increase equivalent
to that granted an employee receiving a "Fully Successful" rating.
(c) Except for certain employees listed below (d and
e), when an employee who cannot be rated returns to a pay status
after an approved absence that would be creditable service (e.g.
sick leave, annual leave, etc.), which included one or more pay
adjustments, the employee's rate of basic pay shall be set at a
sum of:
^ The employee's rate of basic pay immediately
before the interruption of the employment with the agency; and as
appropriate;
£ The general pay increases that would have been
required for a "FuTly Successful" rating if the employee's service
had not been interrupted; and
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3^ The merit increase received by an employee
rated as "Fully Successful".
(d) LWOP. When an employee is on LWOP for a period
of time such that the employee is not in a pay status for at least
the agency's minimum appraisal period and the employee returns to
pay status for (1) a period that is less than 90 days/ or (2)
after the end of the agency's appraisal period and the effective
date of the merit increase, the employee's pay shall be set at
the sum of:
^ The employee's rate of basic pay immediately
before the effective date of the LWOP; and as appropriate,
^ The general increases that would be required
for a "Fully Successful" rating, if the employee had not been
on LWOP.
^. Under these circumstances, no merit increase
will be granted. "~
(e) Other Circumstances. An employee's rate of basic
pay may need to be set for an unrateable period of service. Examples
would be:
JL Service in the armed forces or certain non-
Government serviceT
£ Return to pay status after an IPA assignment;
3^ Other service for which an employee's advance-
ment through the pay range is preserved by statute; or
± A period of time for which an employee received
credit for back pay.
Under these circumstances, the employee's pay
shall be set at a sum of:
a_ The employee's rate of basic pay
immediately prior to the interruption of duty status, and as
appropriate;
l> The general increases that would be re-
quired for a "Fully Successful" rating if the employee's service
had not been interrupted; and
£ Merit increases, which will be granted as
follows:
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3151
1^ For the first merit increase during the
period of such service, the employee's rating of record or summary
rating is extended and the appropriate increase is granted, if
the rating was given no earlier than the previous rating period.
£ If there is no rating of record that can be
extended, the employee receives an increase equivalent to a
"Fully Successful" rating.
^ For all subsequent merit increases, the
employee will receive the increase equivalent to that received
for a "Fully Successful" rating.
3. MAKING GENERAL INCREASE DECISIONS. The granting of a general
increase, or a portion thereof, is determined by the employee's
rating of record regardless of tercile. The chart below will be
used to determine the employee's general increase.-
PERF RATING
"Outstanding"
"Exceeds
Expectations"
"Fully
Successful"
"Minimally
Satisfactory"
"Unsatisfactory"
GENERAL INCREASE
FULL
FULL
FULL
1/2
NONE
a. Except for adjustments of salaries at the minimum or
maximum of the range, EPA will determine the general increase
for employees at "Fully Successful" or above as follows:
(1) Subtract the minimum rate of the rate range of the
employee's position in effect on the day immediately preceding
the pay adjustment period from the employee's rate of basic pay;
(2) Subtract the minimum rate of the rate range in
effect immediately preceding the pay adjustment period from the
maximum of that rate range;
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(3) Divide the result of paragraph (1) by the result of
paragraph (2);
(4) Subtract the minimum rate of the new rate range for
the grade from the maximum rate of that range;
(5) Multiply the result of paragraph (3) by the result
of paragraph (4); and
(6) Add the result of paragraph (5) to the new rate
range and round to the next higher dollar amount.
The salary of an employee which is at the minimum or maximum
of the rate range in effect on the day immediately preceding the
pay adjustment period will be adjusted to the minimum or maximum
of the new rate range respectively.
b. Except for an employee receiving retained pay, the salary
of an employee whose performance is rated at "Minimally Satis-
factory", including an employee whose rate of basic pay is less
than the minimum rate of the rate range for the employee's
position, will be adjusted by multiplying the employee's rate
of basic pay on the day immediately preceding the pay adjustment
period by one-half of the amount of the general increase applicable
to the rate range for the grade of the employee's position for
such pay adjustment period.
The salary of an employee whose rate of basic pay is less
than the minimum rate of the pay range of the employee's position,
and whose performance is rated "Fully Successful" or above, will
be adjusted by multiplying the employee's rate of basic pay on the
day immediately preceding the pay adjustment period by the full
amount of the general increase applicable to the rate range of
the grade of the employee's position for such pay adjustment
period.
c. An employee who receives a rating of "Unsatisfactory"
shall receive no general increase.
d. An employee whose performance is rated "Unsatisfactory"
or "Minimally Satisfactory" and, therefore, receives less than
the full general increase may be paid less than the minimum rate
of the range for the employee's position.
e. An employee who is receiving retained pay will receive one
one-half of the general increase, regardless of summary rating
level.
f. An employee who cannot be rated shall receive the full
general increase.
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4. BASIC PAY
The following actions will be processed in accordance with 5
CFR 531:
a. Appointments (New Hires)
b. Reassignments
c. Promotions
d. Temporary Service in PMRS Positions
e. Details to PMRS Positions
f. Change to Lower Grade (Voluntary)
g. Change to Lower Grade (Involuntary)
h. Transfers
i. Interrupted Service
j. Reinstatement
k. Premium Pay
5. PERFORMANCE AWARDS.
a. Definition
A PMRS performance award is an award based on the evaluation
of a PMRS employee's performance against performance standards in
the employee's Performance Agreement. While these awards are not
added to the base salary, they are considered to be a part of the
total compensation decision.
b. Eligibility
An employee, who is in a PMRS position on the last day of
the appraisal period for which awards are being paid, is eligible
to be considered for a PMRS performance award. Temporary employees,
employees on temporary promotion, PMRS employees detailed to
other positions within or out of PMRS, and PMRS employees who
"cannot be rated" are eligible if they meet the above criterion.
However, General Schedule employees detailed to PMRS positions
are not eligible for PMRS performance awards.
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c. Timing
Awards decisions will be completed between October 31 and
November 30. Performance awards will be paid as close to the
completion of the awards decisions as is practical.
d. Authority to Grant
Assistant Administrators and Regional Administrators
retain final responsibility for the following:
(1) approving PMRS performance award decisions;
(2) insuring that approved awards do not exceed 0PM
spending limitations; and
(3) insuring that funding is available to pay all awards.
e. Procedures For Determining The Performance Awards Budget
(1) Source of Funds. Funds for performance awards must
be provided from within the Agency's budget for Personnel,
Compensation and Benefits.
(2) Agency Spending Limitations. 0PM will provide
guidance on the minimum percentage of estimated annual PMRS
employee salaries that must be paid in performance awards in a
given fiscal year. Minimum funding levels required by law begin
at .75% in FY'85 and are increased incrementally each fiscal year
to a minimum funding level of 1.15% in FY'89. The maximum
permissible Agency expenditure for PMRS performance awards in any
fiscal year through FY'89 is 1.5 percent of estimated PMRS salaries.
(3) Calculation of the Awards Pool. The Awards Pool is
calculated on a per capita basis using an estimate of the aggregate
PMRS salaries for the coming fiscal year. The sum of the salaries
of the PMRS employees on board as of the start of business on the
first day of the first full pay period on or after October 1
serves as the base for determining the aggregate salaries estimate.
Added to this value will be the estimated general increase for
the year and the estimated merit increase for the year. The
estimated general increase will be calculated by multiplying the
sum of the PMRS employee salaries as of the start of business on
the first day of the first full pay period on or after October 1
times the percent of the general increase times the fraction of
the year that the general increase will be in effect. The estimated
merit increase will be calculated by multiplying the per capita
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merit increase for the Agency from the preceding fiscal year times
the number of PMRS employees on board as of the start of business
on the first day of the first full pay period on or after October 1.
The aggregate salaries estimate (i.e. the sum of the salary,
general increase and merit increase factors) will be multiplied
by the minimum percentage 0PM requires Agencies to spend in a given
fiscal year. The result is the minimum allowable expenditure for
performance awards in that fiscal year. The maximum expenditure
is calculated by multiplying the aggregate salaries estimate by
1.5 percent, i.e., the maximum percentage established by law.
The Administrator, Assistant Administrators, the General Counsel,
the Inspector General and Regional Administrators are authorized
to spend an amount equal to or greater than the minimum allowable
expenditure for performance awards but no more than the maximum
allowable expenditure as calculated for their respective pools.
(4) Management of the Agency's Performance Award Pool.
(a) EPA's PMRS Awards Pool will be officially
delegated to and managed by Assistant Administrators, the General
Counsel, the Inspector General and Regional Administrators.
(b) Assistant Administrators, the General Counsel,
the Inspector General and Regional Administrators may allocate
the pool dollars for their employees to subordinate managers for
recommending purposes as long as the "sub-pool" allocations are
not made to organizational heads below the SES level. When
Assistant Administrators, the General Counsel, the Inspector
General or Regional Administrators prorate "sub-pools" to
subordinate managers, the subordinate organization becomes the
"official pool level" for purposes of applying the consistency
rules governing relationships of ratings and award amounts.
For Assistant Administrators of large organizations, a two
level delegation is possible. They may delegate recommending
authority to Office Directors, who may delegate recommending
authority to division level. When this two level delegation is
made, Office Directors retain responsibility for reviewing
decisions emanating from division subpools. However, Assistant
Administrators, the General Counsel, the Inspector General and
Regional Administrators retain responsibility for approving all
award decisions whether or not they delegate recommending
authority.
(5) Holdback. Senior managers at various levels may
withhold part of the 1.5% spending limit of subordinate pools to
provide additional rewards for strong individual performances
beyond the limitation of specific subordinate pools.
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(a) The EPA Administrator will withhold an equal
percentage of awards spending limit from the Awards Pool of each
Assistant/Regional Administrator, the General Counsel, and the
Inspector General to insure that "Unusually Outstanding" performance
awards do not cause the Agency to exceed its awards spending limit.
(b) Assistant Administrators, the General Counsel,
the Inspector General and Regional Administrators may withhold
equal percentages of the awards spending limit from each subordi-
nate organization. They may use this holdback to provide additional
recognition to employees of these organizations beyond the limits
of the subpool or to maintain consistency of pay decisions across
subordinate organization lines. When the Assistant Administrator
delegates management of the awards pool to the Office Director
level, both the Assistant Administrator and the Office Director
may hold back spending limit. Office Director holdback will also
be created by withholding an equal percentage of awards spending
limit from subordinate organizations.
(c) When holdback spending limit from any
level is applied to an individual's performance award, the
sum of the individual's total performance award must comply
with the consistency rules.
(d) Holdback spending limit will not be used
to raise the total of an individual's performance award for a
single performance year to an amount greater than 10% of the
awardee's salary on the last day of the performance appraisal
period for which awards are being paid (or greater than 20%
of salary for Unusually Outstanding Award recipients.)
(e) Unused holdback spending limit from any level
may or may not be returned to subordinate organizations for
further allocation. However, when it is returned, it will be
returned on a pro-rated basis so that organizations receive
spending limit in proportion to their initial contribution to
the holdback.
(f) All actual funds for awards will be paid
using Personnel Compensation and Benefits funds of the
recommending organization.
f. Ratings of Record and Performance Awards.
(1) Performance Awards for Employees Rated "Outstanding".
(a) Compensation.
l_ An employee whose performance for
the appraisal period is rated as "Outstanding" must receive a
performance award of at least 2 percent of the employee's
rate of basic pay on the last day of the performance appraisal
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period for which the award is being given, but not more than
10 percent of basic pay for a given appraisal period.
2^ The major pool manager, i.e., the AA, GC,
IG, or RA, may grant all employees rated "Outstanding" at the
same grade level in the same pool, equal dollar amounts or
different dollar amounts in performance awards. The decision
to grant awards of different dollar amounts should be based on
the following criteria:
a_ relative contribution of the performance
b degree of difficulty of the performance, or
£ employee's position in the pay range.
(b) Compensation Consistency.
1^ Employees rated "Outstanding" in a given
awards pool must receive performance awards of greater dollar
amounts than employees of the same pool and the same grade
level rated "Exceeds Expectations" who are granted performance
awards in that pool.
2^ The major pool manager may choose not to
follow the above consistency rule in granting performance
awards to persons promoted within the last year. However,
any promotee rated "Outstanding" must receive at least 2
percent of the September 30 salary in a performance award.
(2) Performance Awards for Employees Rated "Exceeds
Expectations."
(a) Compensation.
1^ An employee whose performance for the
appraisal period is rated as "Exceeds Expectations" should
receive a performance award. This award must not exceed 10
percent of the employee's rate of basic pay on the last day
of the performance appraisal period for which the award is
being paid.
^ The major pool manager may grant those
employees chosen to receive performance awards who are rated
"Exceeds Expectations", at the same grade level in the same
pool, equal dollar amounts or different dollar amounts in
performance awards. The decision to grant awards of different
dollar amounts should be based on the following criteria:
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a_ relative contribution of the performance/
b_ degree of difficulty of the performance, or
£ employee's position in the pay range.
(b) Compensation Consistency.
^ Employees rated "Exceeds Expectations"
in a given awards pool who are granted performance awards must
receive performance awards of lesser dollar amounts than
employees of the same grade level rated "Outstanding" in the
same pool. They must also receive performance awards of
larger dollar amounts than employees at the same grade level
rated "Fully Successful" who are granted performance awards.
£ The major pool manager may choose not to
follow the consistency rule in granting performance awards to
persons promoted within the last year. For example, the major
pool manager may grant a performance award to a promotee rated
"Exceeds Expectations" of a lesser dollar amount than performance
awards granted to employees rated "Fully Successful" at the same
grade level in the same pool.
(3) Performance Awards for Employees Rated "Fully
Successful."
(a) Compensation.
^ An employee whose performance for the
appraisal period is rated as "Fully Successful" may receive a
performance award. This award must not exceed 10 percent of
the employee's rate of basic pay on the last day of the perfor-
mance appraisal period for which the award is being paid.
JJ The major pool manager may grant those
employees chosen to receive performance awards who are rated
"Fully Successful" at the same grade level in the same pool,
equal dollar amounts or different dollar amounts in performance
awards. The decision to grant awards of different dollar amounts
should be based on the following criteria:
a^ relative contribution of the performance,
b_ degree of difficulty of the performance, or
£ employee's position in the pay range.
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(b) Compensation Consistency. Employees rated
"Fully Successful" in a given awards pool who are granted
performance awards must receive awards of lesser dollar
amounts than employees at the same grade level in the same
pool who are rated "Exceeds Expectations" and granted
performance awards.
g. "Unusually Outstanding" ("UP") Performance Awards
(1) Description
When the Administrator of EPA judges a PMRS
employee's performance to be "Unusually Outstanding", the
Administrator may grant the employee performance awards
totaling more than 10% but not more than 20% of the employee's
base salary as of the last day of the performance appraisal
period for which the award is being paid.
(2) Criteria
(a) The employee must be rated "Outstanding".
(b) The employee must have been granted the
largest performance award for the employee's grade level in
the Assistant Administrator, General Counsel, Inspector General,
Office Director or Regional Administrator pool. Other employees
at the same grade in the major pool may have been awarded
performance awards of equal dollar amounts but none may have
been granted a larger award.
(c) The employee should have accomplishments
in one or more of the following categories:
_! managerial excellence in developing
and appraising subordinate employees;
j2 accomplishments in support of the Agency's
mission;
^ accomplishments resulting in actual and
significant savings to the government; or
j[ outstanding record for taking professional
risks in order to advance the state-of-the-art in scientific,
technological or managerial areas.
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(3) Nomination Process. The Assistant Administrator
(AA), the General Counsel (GC), the Inspector General (IG) or
Regional Administrator (RA) will nominate employees for "UO"
awards based on employees' accomplishments in one or more of
the four categories outlined in the criteria. Each AA/GC/IG/RA
may nominate 1% of their PMRS workforce or one employee,
whichever is greater. In carefully documented, highly unusual
circumstances, more nominations may be made.
(4) Timing. Nominations will be accepted immediately
after award decisions are completed by the Assistant Administrators,
the General Counsel, the Inspector General or the Regional
Administrators.
(5) Review and Approval Process. Nominations will
be reviewed by EPA's Awards Board, which will recommend approxi-
mately five (5) nominees to the Administrator for consideration.
(6) Funding.
(a) Spending limit for the initial prenomination
performance award must come from the nominating organization's
PMRS awards pool. Additional spending limit will be provided
from a centralized Agency-level pool to insure that each "UO"
awardee receives a total performance award of more than 10% of
the employee's basic pay as of the last day of the appraisal
period on which the award is based and that the Agency does
not exceed its 1.5% performance award spending limit. This
centralized pool will be created by assessing each PMRS Awards
Pool an equal percentage of awards spending limit.
(b) While each awardee must receive more than
10% of "basic pay" in performance awards, no awardee may
receive more than a total of 20% of "basic pay" in performance
awards for a given appraisal period. For example, a. Regional
employee with a salary of $50,000 on September 30 might receive
a ?3,000 performance award for the appraisal period from the
Regional pool. If this employee were to be selected as a "UO"
awardee, the.employee must receive at least an additional $2,001
to insure that the total performance award exceeds 10% of the
employees' basic salary. In this case, the maximum amount the
employee could receive in addition to the initial award would
be $7,000, making the total award $10,000 or 20% of the employee's
basic salary.
(c) Special Act and Suggestion Awards authorized
by U.S.C. 5407 are not performance awards and are not counted
against the 20% of salary which is the maximum allowable pay-
ment for a performance award.
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h. Awards for "Unrateable" Employees
(1) Definition
An employee is "unrateable" for the purposes of granting
performance awards/ when the employee cannot be provided a current
rating of record including a description of performance under
elements and standards for at least a 90 day minimum appraisal
period in the Agency.
(2) Eligibility. "Unrateable" employees are eligible
for performance awards.
(3) Determining the Basis for Paying the Performance
Award
When no current rating of record is available, a
two step process is used to establish a financial level at which
the unrateable employee can be paid a performance award. 1) When
a PMRS rating of record is available which was given no earlier
than the previous appraisal period, this rating is extended and
used as the basis for establishing the level of the performance
award. A PMRS rating of record that has been transferred with
an employee from another agency may also be extended if it was
given no earlier than the previous appraisal period. 2) When
no rating of record can be extended, an unrateable employee who
is granted a performance award will receive payment equivalent
to that received by employees rated at the "Fully Successful"
level.
The result of the two step process for determining
equivalent levels of payment will be used like current ratings
of record to guide the decision on whether an award is required
or optional and to guide the decision on the amount of the award.
Consistency rules will be followed and the basis for granting
awards of different dollar amounts to employees of the same
grade in the same pool will be: significance of the employee's
contribution to the organization or difficulty of the performance.
i. Responsibility for Payment
(1) Employees Who Leave Government
When an employee receives an "Outstanding" rating
of record and leaves the Government, retires or dies before
awards are paid out, the Agency must pay the appropriate
performance award to the employee or to the employee's estate.
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Granting performance awards to employees rated
"Exceeds Expectations" or "Fully Successful" is optional. How-
ever once the major pool manager has approved performance awards
for employees with either of these ratings, the Agency is required
to pay the performance awards even if the employees leave the
Government, retire or die before receiving payment for the award.
(2) Interaqency Transfers
When an employee receives an "Outstanding" rating of
record but transfers to another government agency before perfor-
mance awards are paid, the agency which gave the employee the
rating of record is responsible for paying the performance award.
Granting performance awards to employees rated
"Exceeds Expectations" or "Fully Successful" is optional. How-
ever once the major pool manager has approved performance awards
for employees with either of these ratings, the Agency is required
to pay the performance awards, even if the employees transfer to
other agencies before receiving payment for the award.
Whether an employee who transfers to EPA after
receiving a rating of "Exceeds Expectations" or "Fully Successful"
at their previous agency, but prior to the payment of performance
awards in that agency, is entitled to a performance award, depends
on the PMRS Plan of the rating agency. If the plan of the rating
agency entitles the employee to a performance award, the rating
agency is responsible for paying the award.
(3) Unrateable Employees
The decision to pay a. performance award to an unrateable
employee is at the discretion of the employing agency, therefore
the employing agency is responsible for paying any performance
awards granted to unrateable employees.
6. CASH AWARD PROGRAM
a. Description
Title 5, U.S. Code, section 5407 authorizes a cash award
program for:
(1) suggestions, inventions, or other unique individual
efforts which contribute to the efficiency, economy or other
improvement to Government operations or achieve a significant
reduction in paperwork; or
(2) special acts or services in the public interest, in
connection with or related to the employee's Federal employment.
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The Agency's Awards Manual contains additional information on the
awards program.
b. Eligibility
PMRS employees are eligible for awards under this program.
However the basis for granting the award must be a non-recurring
employee or group contribution which is highly exceptional and
beyond normal job responsibilities and performance standards.
Assistant Administrators, the General Counsel, the Inspector General,
and Regional Administrators are responsible for assuring that PMRS
employees granted cash awards under this program are not also
rewarded with a PMRS performance award for the same accomplishment.
c. Documentation
Supervisors may nominate a PMRS employee or group of
employees for these awards at any time during the year using EPA
Form 3130-1, Recommendation for Monetary Award. The narrative
justification must describe the contribution in simple factual
terms, state the tangible and/or intangible benefits and explain
the basis for determining them.
d. Amount of Award
The minimum award which may be granted is $25.00 based.on
tangible benefits estimated to be $250.00 or intangible benefits
of comparable value. Nominating officials will determine the amount
of the award based on the attached tables.
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CHAPTER IV - POSITION IDENTIFICATION, AND PERSONNEL MATTERS
Table of Contents
PARAGRAPH PARAGRAPH
TITLES NUMBERS
Position Identification 1
Identification Process 2
Linkages Between Performance Management
and Other Personnel Actions 3
Other Related Personnel Matters 4
Privacy Protections
Employee Appeal and Grievance Rights
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PMS MANUAL FOR PMRS EMPLOYEES 3151
CHAPTER IV - POSITION IDENTIFICATION, AND PERSONNEL MATTERS
1. IDENTIFICATION OF POSITIONS
a. A "supervisor" means an individual employed by an agency
having authority in the interest of the agency to hire, direct,
assign, promote, reward, transfer, furlough, layoff, recall,
suspend, discipline, or remove employees, to adjust their
grievances, or to effectively recommend such action, with
respect to at least one subordinate employee, if the exercise
of the authority is not merely routine or clerical in nature
but requires the consistent exercise of independent judgment,
and includes only those individuals who devote a preponderance
of their employment time to exercising such authority.
b. A "management official" is an individual employed by an
agency in a position the duties and responsibilities of which
require or authorize the individual to formulate, determine, or
influence the policies of the organization. A "management
official" may or may not exercise supervisory responsibility,
and typically has, as one or more primary duties and responsi-
bilities, the performance of any of the following, or similar,
functions:
(1) create, establish or prescribe general principles,
plans or courses of action for an organization;
(2) decide upon or settle upon general principles,
plans or courses of action for an organization; or
(3) bring about or obtain a result as to the adoption
of general principles, plans or courses of action for an
organization.
Incumbents of this type of management official position must
actively participate in the ultimate determination as to what
the policy will be. This means more than just interpreting
laws and regulations, rendering resource information or
recommendations, or serving as an expert or professional whose
actions assist in implementing, as opposed to shaping, an
activity's policies.
2. IDENTIFICATION PROCESS
a. Identification Process: The following will be used to
identify positions and employees to be included:
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PMS MANUAL FOR PMRS EMPLOYEES 3151
(1) The Servicing Personnel Office will make an initial
determination based on a review of the position description and
knowledge of the position.
(2) The Servicing Personnel Office will review the
initial determination with the first-level supervisor for the
resolution of any disagreements. Impasses will be sent to the
second-level supervisor or office head or designee.
(3) The first and second-level supervisor will
recommend inclusion on the documentation form, the Servicing
Personnel Office will approve.
(4) The Servicing Personnel Office will notify
employees of either inclusion or exclusion of their position.
(5) If the actions outlined in (1) through (4) above
do not result in resolution of the identification, the following
steps are taken:
(a) The Servicing Personnel Office will seek
resolution if possible.
(b) The Servicing Personnel Office will make final
determination based on a review of the position description
and a knowledge of the position. The position description will
be corrected, if necessary, to reflect the basis for inclusion
or exclusion.
(c) If efforts fail to resolve employee
disagreement over the determination, the employee may request
formal review through the Agency grievance procedure.
b. Documentation Process: The PMRS Documentation Form
must be used to document all current and future grades 13, 14
and 15 positions for inclusion/exclusion in the PMRS. It must
be signed by .the first-level supervisor, concurred in by the
reviewing official (normally, this is the next higher level
supervisor) and approved by a representative of the Servicing
Personnel Office for retention with the employee's position
description.
c. Position Descriptions: Position descriptions must
reflect PMRS determinations. The use of the Position Descrip-
tion Amendment Form {EPA Form 3150-5) is encouraged in those
cases where position descriptions must be amended to reflect
PMRS determinations.
3. LINKAGES BETWEEN PMRS AND OTHER PERSONNEL DECISIONS
a. Training and Career Development. Any Individual
Development Plans (parts of the Performance Agreement), and
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any Performance Improvement Plans that may be generated, should
be considered in determining employee training needs and
opportunities.
b. Rewards. The overall performance score and the
resulting rating of record, coupled with the employee's position
in the pay range, will be the only determinants in granting
merit increases. The rating of record will be the significant
determinant in granting performance awards. The rating of
record will not be used for Special Act or Service awards since
these awards are granted for achievements not reflected in the
rating against the Performance Agreement.
c. Reassignment. The operational needs of the Agency are
the reasons for any reassignment. Supervisors must consider the
rating of record and the results of any Performance Improvement
Plans in making reassignment decisions.
d* Promotion. Where a PMRS employee occupies a position
having promotion potential, the employee's overall performance
score and the resulting rating of record, will play major roles
in the promotion decision. Operational needs of the Agency must
also be taken into account. Employees must have a rating of
record of "Fully Successful" or better, and be rated as "Fully
Successful" or better on each Critical Job Element to be
recommended for promotion. Ratings of record will be one
determinant in competitive promotions processed through the
Agency's Merit Promotion Plan.
e. Reduction in Grade. An "Unsatisfactory" performance
rating, as defined in this plan, may be a basis for reduction
in grade. More detailed information is available from the
Servicing Personnel Office. See EPA Order 3110.16, Reduction
in Grade and Removal Based on Unacceptable Performance.
f. Reduction in Force (RIF). Linkages between RIF actions
and other personnel decisions will be done in accordance with 5
CFR, Part 351 and EPA Order 3110.10, Reduction in Force Procedure,
g. Retention during Supervisory or Managerial Probationary
Period. Supervisors must consider the overall performance score,
the resulting rating of record and the Performance Improvement
Period (if used) in deciding whether to retain the employee in
the position. Such consideration is not necessary in cases
involving questions of employee conduct.
h. Retention during Probationary Period. Supervisors must
consider the overall performance score, the resulting rating of
record, and the Performance Improvement Period (if used) in
deciding whether to retain the employee in EPA. Such consider-
ation is not necessary in cases involving questions of employee
conduct.
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i. Removal. An "Unsatisfactory" rating of record as
defined in this plan, may be a basis for removal. More detailed
information is available from the Servicing Personnel Office.
j. Vacancies filled through the Merit Promotion Program.
Selective factors are identified through job analysis, and are
used as screen-out factors in the competitive merit promotion
process. Once selection for the vacancy has been made, and the
position is filled, any selective factor(s) used in the competi-
tive merit promotion process must be made a part of the employee's
Critical Job Elements and performance standards. See EPA Merit
Promotion Manual.
4. OTHER CONDITIONS
a. Privacy Protections
(1) An employee's salary, both past and present, is
public information and, therefore, subject to full disclosure.
Since performance and cash awards are compensation in addition
to an employee's base salary, the amount of these awards are
also subject to disclosure under the Freedom of Information Act
(FOIA).
(2) As a general rule, Critical Job Elements and
performance standards contained in the Performance Agreement
are very similar in nature to position descriptions. Although
not expressly provided for in the FOIA regulations, position
descriptions have been viewed as public information and subject
to disclosure. Therefore, it is likely that a court would
require disclosure of Performance Agreements. It should be
noted, however, that under certain circumstances disclosure of
performance standards may expose the Agency's strategy for
detecting violations of law and may result in the use of the
disclosed information to circumvent the law. In these
circumstances performance standards should be withheld.
(3) As a general rule, written appraisals, including
ratings of record and supervisor's notes of prior counselling
sessions, if kept, are personal information of the type which,
if disclosed, may result in a "clearly unwarranted invasion of
privacy". This information should be protected. In special
circumstances, a request for disclosure could claim an identifi-
able public interest, e.g., disclosure is necessary in order
for taxpayers to ensure that merit increases/performance awards
are not given to poor performers. See Privacy Act Manual.
(4) Offices with questions on the application of these
rules should contact the EPA Office of General Counsel or the
Privacy Act Officer, Office of Information Resources Management.
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PMS MANUAL FOR PMRS EMPLOYEES 3151
b. Employee Appeal and Grievance Rights
(1) PMRS employees may not appeal their Critical Job
Elements, their performance standards, their rating of record,
or the granting or withholding of a merit increase. An employee
may file an allegation with the Special Counsel of the Merit
Systems Protection Board if the employee believes a decision or
other action taken under this system was the result of a
prohibited personnel practice defined in 5 U.S.C. 2302.
(2) The Agency's merit increase-setting process,
individual merit increase decisions and the final determination
of Critical Job Elements and performance standards are specifically
excluded from coverage by the Agency administrative grievance
system. See EPA Order 3110.8, EPA Administrative Grievance
System.
(3) A decision to grant or not to grant a general
increase, merit increase, or performance award under the PMRS
system, or a decision on the granting of or failure to grant cash
awards or honorary recognition under 5 U.S.C. Chapter 54 are
excluded from coverage by the Agency administrative grievance
system.
(4) Final performance appraisals and ratings of record
are grievable under the Agency's administrative grievance system.
See EPA Order 3110.8, EPA Administrative Grievance System.
c. Documentation
(1) Chapter II describes the process for completing the
performance appraisal and the Overall Performance Appraisal
Certification (OPAC). Chapter III describes the process for
arriving at the PMRS compensation decision. This section describes
the process for documenting these decisions.
(2) Final documentation records consist of: the
Performance Agreement, annotated to reflect the ratings assigned
to individual performance standards and any performance highlights
added to support the ratings; the completed Overall Performance
Appraisal Certification (OPAC); any Performance Improvement Plans
prepared as a result of an employee receiving a rating of record
of "Unsatisfactory", and the Pool Manager's official notification
to the employee of the employee's rating of record and resulting
compensation decisions.
(3) The official Pool Manager (Office Director/Regional
Administrator is responsible for providing formal notification of
the rating of record and pay decisions no later than 60 calendar
days after the effective date of the merit increase. The merit
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increase is retroactive to the first day of the first full pay
period in October. At the minimum, the official Pool Manager
will post the rating of record, the dollar amount of the merit
increase, if any, and the amount of any performance award being
granted, to the "Compensation Recommendations" section of the
OPAC and will note any Performance Improvement Plan or other
personnel actions needed in the "Other Personnel Action Re-
commendations" section of the OPAC. Official Pool Managers who
have allocated sub-pools to subordinate levels of the organization
may have the sub-pool managers post this information to the
OPAC and resubmit the completed OPAC for the official Pool
Manager's signature. Regardless of the approach, the official
Pool Manager is also responsible for signing the completed OPAC
and for providing a copy to the employee. An OPAC must be
completed for each PMRS employee. Pool Managers may wish to
provide this formal notification in the form of a transmittal
memo from the Pool Manager, through subordinate managers to
individual employees, attaching a copy of the formal Overall
Performance Appraisal Certification with all information posted
and signed. The signed, original OPAC is submitted to the
Servicing Personnel Office for inclusion in the Employee's
Performance File (EPF), which is located in the left side of
the Official Personnel Folder (OPF).
(4) The Servicing Personnel Office is responsible for
generating an SF-50, Notification of Personnel Action, and for
documenting the PMRS compensation decision once the decision
has been input into the payroll system. No SF-52, Request for
Personnel Action, will be required either to convert an employee
from GS to GM, or to effect pay decisions once the PMRS compen-
sation decisions have been made. The ADP Support System for
PMRS compensation will provide initial authority to the Servicing
Personnel Offices to execute changes and the original copy of
each employee's OPAC (sent to the Servicing Personnel Office
for retention) will serve as the final authority for Servicing
Personnel Offices.
(5) Pool Managers do not need to develop any
documentation other than the annotated Performance Agreement to
support their decisions. In the case of performance awards,
the already documented evaluation of performance against the
Performance Agreement is the only documentation needed unless
the award is for a special act or service not reflected in the
Performance Agreement. For this type award, the Pool Manager
must follow the procedures in the Agency Incentives Awards
Manual. Otherwise, the Pool Manager only needs to provide a
copy of those annotated standards on which the Assistant
Administrator, the General Counsel, the Inspector General or
the Regional Administrator based approval of the award to the
Servicing Personnel Office for concurrence and submission to
the Financial Management Division.
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PMS MANUAL FOR PMRS EMPLOYEES 3151
d. Records
(1) Performance and PMRS records generated during and
at the end of the performance year will be maintained in files
as defined below.
(a) An Employee Performance File (EPF), will be-
established in the Servicing Personnel Office. This file is an
envelope maintained on the left (temporary) side of the Official
Personnel File (OPF), but withdrawn whenever the remaining
contents of the OPF are disclosed. The information maintained
in the EPF is covered by 0PM's Government-wide Privacy Act
system of records.
(b) An Employee Working File will be established
by supervisors or managers to maintain performance-related
information on each employee under their supervision. This
file is considered part of the Employee Performance File System,
but may be physically located outside the Servicing Personnel
Office. The information maintained in this file is also covered
by 0PM's Government-wide Privacy Act system of records. This
file may contain any performance-related material/ such as:
l_ Forms or documents which record the
performance appraisal, forms or documents used by Rating Officials
to recommend personnel actions affecting an employee, when the
basis of that action is performance-related;
_2 Recommendations for training that are
performance-related;
J3 Any documentation furnished to support
recommended action's and the Agencyrs final decision on the
matters;
4^ Any document used by the Rating Official
during the appraisal period (such as workplans, production
records, or other tracking plans);
J5 Appraisals of performance and employee
potential used for merit promotion procedures;
6 Copies of Performance Improvement Plans
(PIP); and "
2. Copies of licenses, certificates of
proficiency, or similar documents required for the position,
and any general information about the employee (identification
data, experience and training).
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PMS MANUAL FOR PMRS EMPLOYEES 3151
The PMRS system does not require that all of the above
information be maintained by the supervisor. However, it does
require that, if maintained, it be maintained solely in the
Employee Working File.
(2) Responsibilities for Record-Ke'eping
(a) Supervisors officially maintain in the Employee
Working File for a period of one year:
j^ the original copy of the signed Performance
Agreement, annotated to reflect the rating assigned to individual
performance standards, any performance highlights, and any other
related documentation to support the rating;
"i_ A copy of the employee's Official Performance
Appraisal Certification (OPAC) to complete the Performance
Agreement;
3^ Any PIP prepared as a result of
"Unsatisfactory" performance;
£ A copy of the Pool Manager's official
notification to the employee of the summary rating and compen-
sation decision; and
J5 Copies of other performance-related data,
as described in the Employee Working File above, which are
necessary in the official performance of supervisory duties.
(b) Personnel Officers officially maintain:
_!_ The original of the signed and completed
Official Performance Appraisal Certification (OPAC). This is
maintained in the EPF for a period of three years.
2^ A copy of the most recent Performance
Agreement. This c"opy is officially maintained in the Employee
Performance File for a period of three years.
(c) Performance-related information may be retained
for longer than one year when needed for purposes such as
responding to grievances, Merit Systems Protection Board (MSPB)
appeals, or other processes.
(d) When an employee is promoted to an SES position
within the Agency, the Employee Performance File and performance-
related information contained in the Employee Working File will
be destroyed by both the supervisor and the Servicing Personnel
Office one year after the date of the appointment to the SES.
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PMS MANUAL FOR PMRS EMPLOYEES 3151
(3) Transfer of Records
(a) Performance-related records maintained in the
Employee Performance File and Employee Working File are not
considered permanent in nature and the Employee Performance File
is thus filed with other temporary material on the left
(temporary) side of the-OPF. However, the OPAC's and performance
plans contained in the Employee Performance File are crucial in
determinations about length of service for reductions in force,
and PMRS general and merit increases.
(b) When an employee moves to a new agency at any
time during the appraisal period, an interim summary rating
must be prepared and forwarded to the Servicing Personnel
Office for inclusion in the EPF. This interim rating covers
the period of performance since the last most recent rating of
record up to the time of the employee's transfer.
(c) When an employee moves to a new organization
in EPA, the Employee Working File which is maintained by the
supervisor, and the Employee Performance File which is maintained
by the Servicing Personnel Office are transferred to the gaining
EPA Servicing Personnel Office.
(d) When an OPF of a PMRS employee is sent to
another Servicing Personnel Office, to another agency, or to
the National Personnel Records Center, the EPA Servicing Personnel
Office shall include in the OPF all ratings of record that are
three years old or less, together with the employee's interim
summary rating which covers the period of performance since the
last most recent rating of record up to the time of the employee's
position change. The Performance Agreement upon which the last
most recent rating is based must also be transferred. EPA will
purge from the OPF all ratings of record more than three years
old and any Performance Agreement more than one year old.
(e) When the EPA Servicing Personnel Office
receives the OPF of a PMRS employee who has transferred to EPA
from another agency, the Servicing Personnel Office should
assure that the last three performance ratings of record are
present together with the employee's interim summary rating
covering the period of performance since the last most recent
rating of record up to the time of the employee's transfer.
The Performance Agreement upon which the last most recent
rating is based must also be present. If they are not, the
Servicing Personnel Office shall contact the losing organization
in an attempt to obtain them.
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U.S. Environmental Protection Agency
Region V, Library
230 South Dearborn Street
Chicago, Illinois 60604
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PMS MANUAL FOR PMRS EMPLOYEES 3151
(4) Destruction of Records
Performance-related records, as contained in the
Employee Working File and the Employee Performance File, must
be destroyed in accordance with the schedule provided under (3)
above. Records required to be destroyed must be destroyed by
shredding or burning. See Records Manual-Records Retention
Schedules.
(5) Management Access to the Employee Performance File
System
(a) The records maintained in the Employee
Performance File system are part of the Government-wide Privacy
Act system of records and shall be maintained in accordance
with the Privacy Act requirements of the Agency and the Office
of Personnel Management. As part of the system, access shall
be provided to the employee and the employee's designated re-
presentative. Records may also be disclosed to Agency officials
who have a need for information in these files in the official
performance of their duties. See the Privacy Act Manual and
the Records Management Manual.
(b) All other requests for access to performance-
related information will be handled in accordance with the
procedures of the Freedom of Information Act.
(7) Authority
In accordance with 0PM regulations, the Director of
Personnel retains the authority to"ensure the proper maintenance
of the Employee Performance File system. This authority is re-
delegated to Servicing Personnel Officers. Servicing Personnel
Officers are responsible for ensuring the maintenance of Employee
Performance Files in accordance with the requirements described
in this manual.
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