Order Code RL31924
Report for Congress
Received through the CRS Web
Civil Service Reform: H.R. 1836,
Homeland Security Act, and Current Law
May 30, 2003
Barbara L. Schwemle
Analyst in American National Government
Government and Finance Division
Thomas J. Nicola
Legislative Attorney
American Law Division
Congressional Research Service ˜ The Library of Congress

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Civil Service Reform: H.R. 1836,
Homeland Security Act, and Current Law
Summary
On May 8, 2003, the House Government Reform Committee ordered a bill to
be reported that would significantly change the system for managing civilian
personnel within the Department of Defense (DOD) and the National Aeronautics
and Space Administration (NASA). If passed, H.R. 1836 would also change the
compensation system for Senior Executive Service members throughout the
government and make other general systemic changes with regard to human
resources management.
In April 2003, DOD General Counsel William Haynes sent Congress a
significant reform proposal packaged as the “Defense Transformation for the 21st
Century Act.” Among the changes proposed would be establishing a chapter within
Title 5 of the U.S. Code that would govern personnel management provisions unique
to DOD. H.R. 1836 incorporates most of these provisions. Some of the provisions
have been included in the House or Senate versions of FY2004 Defense
authorizations (H.R. 1588, S. 1050). In particular, H.R. 1588, as passed by the
House, incorporates Title I, most of Title II, and Title IV of H.R. 1836, as reported.
Representative Tom Davis, Chairman of the House Committee on Government
Reform, introduced H.R. 1836, known as the Civil Service and National Security
Personnel Improvement Act. By making changes in selected federal personnel
management statutory provisions, the bill is intended to improve the flexibility and
competitiveness of federal human resources management. Defense authorization
measures S. 297, as introduced, S. 1050, as reported, and H.R. 1588, as passed, echo
many of the government-wide provisions of Title II of H.R. 1836. Provisions similar
to those affecting NASA and the Securities and Exchange Commission (SEC) are
also in H.R. 1085, S. 610, and H.R. 658. Overall, these proposals would grant
agency heads more flexibility with respect to hiring, disciplining, and compensating
civilian personnel. Some would argue that the most significant of these changes
would relate to compensation. In each case, it is presumed that some form of pay
banding would result.
The Homeland Security Act of 2002 (P.L. 107-296, H.R. 5005) provides that
the Secretary of Homeland Security and the Director of the Office of Personnel
Management will work together to develop a system of personnel management
unique to the Department of Homeland Security (DHS). It also provides for some
government-wide changes in workforce management. The system is under
development.
The purpose of this report is to present, in tabular format, the alignment of H.R.
1836 with current statutory provisions and with those sections of the Homeland
Security Act of 2002 related to personnel management and unique to the Department
of Homeland Security. Since H.R. 1588 incorporates a significant portion of H.R.
1836, where appropriate, attention is called to the differences. If there are no notes,
the provisions of H.R. 1836 were passed by the House in H.R. 1588.

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Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
H.R. 1836, as Ordered to Be Reported, Compared to Current Law and
Homeland Security Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Title I — Department of Defense National Security Personnel System . . . . . . . . 4
New Title 5, Chapter 99 — Department of Defense
National Security Personnel System . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Title II - Department of Defense Civilian Personnel
(Includes Government-wide Provisions) . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Title III — Provisions Relating to the Securities and Exchange Commission
and the National Aeronautics and Space Administration . . . . . . . . . . . . . . 32
Subtitle A — Securities and Exchange Commission . . . . . . . . . . . . . . . . . . 32
Subtitle B - National Aeronautics and Space Administration . . . . . . . . . . . 34
New Title 5, Chapter 98 — National Aeronautics and
Space Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
New Subchapter I — Workforce Authorities . . . . . . . . . . . . . . . . . . . 34
New Subchapter II — Personnel Provisions . . . . . . . . . . . . . . . . . . . . 47
Title IV — Human Capital Performance Fund . . . . . . . . . . . . . . . . . . . . . . . . . . 58
New Title 5, Chapter 54 - Human Capital Performance Fund . . . . . . . . . . . 58
Title V — Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Personnel Provisions Unique to Proposed Defense Transformation for the
21st Century Act
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Contracting for Personal Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Contracting for Security Guards and Firefighting Services . . . . . . . . . . . . . 67
Administrative Transformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

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Civil Service Reform: H.R. 1836,
Homeland Security Act, and Current Law
Introduction
In April 2003, the Department of Defense (DOD) sent Congress a proposal
entitled the “Defense Transformation for the 21st Century Act.”1 The proposal is
principally directed to changes in the uniformed military personnel and acquisition
systems. However, it also would change the statutory bases for much of the civilian
personnel system. Policies related to general employment rules, compensation, and
post retirement re-employment would be affected. H.R. 1588 was reported from the
House Committee on Armed Services2 incorporating most of the transformation
proposal provisions.3 As passed by the House on May 22, 2003, H.R. 1588
incorporates, with few changes, Title I, most of Title II, and Title IV of H.R. 1836,
as ordered reported. DOD employs approximately 25% of the total federal civilian
workforce.4
The Homeland Security Act of 20025 provides that the Secretary of Homeland
Security and the Director of the Office of Personnel Management will jointly develop
a system of personnel management unique to the Department of Homeland Security
(DHS). It also provides for some government-wide changes in workforce
1 The text of the DOD proposal can be accessed at [http://www.defenselink.mil/dodgc/
lrs/docs/Transformation.pdf], visited May 6, 2003.
2 U.S. Congress, House, Committee on Armed Services, H.Rept. 108-106 (other publication
data unavailable). See also CRS Report RL31916, Defense Department Original
Transformation Proposal: Compared to Existing Law, by Robert L. Goldich, Gary J.
Pagliano, Barbara L. Schwemle, and Thomas J. Nicola.
3 For further discussion of the provisions of the FY2004 Defense authorization legislation
(H.R. 1588), see CRS Report RL31805, Authorization and Appropriations for FY2004:
Defense, by Amy Belasco and Stephen Daggett. Also, the personnel provisions as proposed
by the Department of Defense compared with current law are set out in CRS Report
RL31916, Defense Department Original Transformation Proposal: Compared to Existing
Law, by Robert L. Goldich, Gary J. Pagliano, Barbara L. Schwemle, and Thomas J. Nicola.
4 U.S. Office of Personnel Management, Federal Civilian Workforce Statistics —
Employment and Trends as of March 2002. Available at [http://www.opm.gov/feddata/
index.asp], visited May 19, 2003.
5 P.L. 107-296, H.R. 5005; Nov. 25, 2002; 116 Stat. 2135-2321.

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CRS-2
management. The system is under development.6 DHS employs approximately 6.3%
of the total federal civilian workforce.7
Representative Tom Davis, Chairman of the House Committee on Government
Reform, has introduced legislation (H.R. 1836) titled “Civil Service and National
Security Personnel Improvement Act.” The bill, by making changes in selected
federal personnel management statutory provisions, is intended to improve the
flexibility and competitiveness of federal human resources management. In addition
to the civilian personnel provisions from the DOD proposal, it would make
significant changes in the personnel management system at the National Aeronautics
and Space Administration (NASA), with limited amendments to the system at the
Securities and Exchange Commission (SEC). H.R. 1836 was ordered to be reported
by the House Government Reform Committee on May 8, 2003.
H.R. 1588, as passed, would incorporate Title I of H.R. 1836 with very few
differences. One difference is that at the proposed new 5 U.S.C. 9902(j) in H.R.
1588, Section 1121, would specify that the hiring flexibility authorities the secretary
could exercise would be those under 5 U.S.C. 4703(a)(1), (3), and (8). H.R. 1836,
as reported, identified the authorities as hiring flexibilities under Chapter 47 as a
whole. H.R. 1588, Title XI (Department of Defense Civilian Personnel), Subtitle A
(Department of Defense Civilian Personnel Generally), contains two sections that
were not part of H.R. 1836, as reported. Those sections related to military leave for
mobilized federal civilian employees (Sec. 1102) and common occupational and
health standards for differential payments as a consequence of exposure to asbestos
(Sec. 1103).
Two sections included in Title II of H.R. 1836, as reported, were not
incorporated. Those are H.R. 1836, Section 202, “Civil Service Retirement System
computation for part-time service” and H.R. 1836, Section 212, “Nonreduction in pay
while Federal employee is serving on active duty in a reserve component of the
uniformed services.”
Two proposals entitled “Federal Workforce Flexibility Act of 2003” have also
been introduced in the 108th Congress by Senator George Voinovich (S. 129) and
Representative JoAnn Davis (H.R. 1601). They contain several of the government-
wide provisions of the proposed Federal Workforce Improvement Act of 2002 (S.
2651, 107th Congress) that were not enacted as part of the Homeland Security Act of
2002. These bills would amend current law provisions on personnel management
demonstration projects; recruitment, relocation, and retention bonuses; critical pay;
civil service retirement system computation for part-time service; pay administration;
agency training; and annual leave. Although some provisions correspond to
6 For further narrative analysis of the Department of Homeland Security personnel
provisions, see CRS Report 31500, Homeland Security: Human Resources Management,
by Barbara L. Schwemle.
7 Employment and Trends, March 2002 does not provide DHS numbers. It is estimated that
DHS will be staffed by 170,000 federal civilian employees.

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CRS-3
provisions in the newer proposals, for example, part-time service computation for
retirement, there has been no effort to incorporate these provisions into this report.8
The purpose of this report is to present, in tabular format, the alignment of the
provisions of H.R. 1836 with current statutory provisions and with those sections of
the Homeland Security Act of 2002 related to personnel management and unique to
the Department of Homeland Security. If H.R. 1836 or similar personnel
management legislation were enacted, there would be four chapters in Title 5 of the
U.S. Code that established personnel provisions and flexibilities unique to specific
agencies (the Internal Revenue Service, DHS, NASA, and DOD). Contributors to
this report are L. Elaine Halchin, Jon Shimabukuro, Patrick Purcell, Jack Maskell,
Bob Lyke, and Sharon Gressle.
The report is keyed off H.R. 1836. The other columns are “Current Law,”
which is Title 5 of the U.S. Code, unless otherwise noted, and related personnel
provisions unique to DHS under P.L. 107-296. Because H.R. 1588, as passed by the
House on May 22, 2003, incorporates significant sections of H.R. 1836, the H.R.
1588 (as passed by the House) sections are denoted in bold where appropriate. The
provisions are similar, if not identical. Differences are noted. It is expected this
report will be revised in the near future to key off the personnel provisions of Title
XI of H.R. 1588. H.R. 1588 is, presumably, the vehicle against which the Senate will
work in making amendments.
Although there has been some discussion about incorporating into other bills the
provisions of Title III of H.R. 1836 as they relate to the personnel systems in the SEC
and NASA, no such bills have been reported to date.
Given the scope of the proposed legislation, the authors and other contributors
have, in this first look, set out the basic provisions, hoping to provide the readers
with a type of roadmap to the bill. The reader should understand that every effort has
been made to be comprehensive in identifying statutes currently in effect which
would relate to the proposed changes in policy. However, there may be related
statutory provisions that we have not identified.
8 For a comparison of the proposals in S. 129 and H.R. 1601, see CRS Report RL31516,
Civil Service Reform Proposals: A Side-by-Side Comparison of S. 129 and H.R. 1601 (108th
Congress) with Current Law, by Barbara L. Schwemle and L. Elaine Halchin.

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CRS-4
H.R. 1836, as Ordered to Be Reported, Compared to Current Law
and Homeland Security Act
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
Sec. 1. Short title: “Civil Service and National
Security Personnel Improvement Act.”
Title I — Department of Defense National Security Personnel System
Sec. 101. Short title: “National Security Personnel
System Act.”
Sec. 102 - Department of Defense (DOD) National
No similar provision
Sec. 841 of P.L. 107-296 - Establishment
Security Personnel System.
of Human Resources Management
[H.R. 1588, Sec. 1111]
System.
(a) In General. Would amend 5 U.S.C. Part III, Subpart
Amended 5 U.S.C. Part III, Subpart I by
I by adding New Title 5, Chapter 99 —
adding a new Chapter 97- Department of
Department of Defense National
Homeland Security
Security Personnel System
New 5 U.S.C. 9901 - Definitions.
No similar provision
No similar provision
The term “Director” means the Director of the Office
of Personnel Management; the term “Secretary” means
the Secretary of Defense.
New 5 U.S.C. 9902. Establishment of human
No similar provision
5 U.S.C. 9701 - Establishment of human
resources management system
resources management system.

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CRS-5
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
New 5 U.S.C. 9902(a) - In General.
No similar provision
5 U.S.C. 9701(a) - In General. The
(1) Notwithstanding any other provision of Title 5, the
DHS Secretary and OPM Director have
secretary could, in regulations prescribed jointly with
the same authority to establish and adjust
the director, establish, and from time to time adjust, a
a new system, as that proposed for DOD.
human resources management system for some or all of
the organizational or functional units of DOD.
If the secretary certifies that issuance or adjustment of
a regulation, or the inclusion, exclusion, or
modification of a particular provision therein, is
No similar provision
essential to the national security, the secretary could,
subject to the President’s direction, waive the
requirement in the preceding sentence that the
regulation or adjustment be issued jointly with the
director.
(2) Any regulations established pursuant to Chapter 99
5 U.S.C. 553 - Rule making exempts rules of Same, except that internal rules of
would be established as internal rules of departmental
agency or departmental procedure from
departmental procedure “shall not be
procedure not subject to review, consistent with 5
Federal Register notice and requirements.
subject to review” rather than “consistent
U.S.C. 553.
with 5 U.S.C. 553.”
New 5 U.S.C. 9902(b) - System Requirements. Any
5 U.S.C. 9701(b). System
system under (a) would (1) be flexible;
Requirements. Same, except as noted
(2) be contemporary;
(3) not waive, modify, or otherwise affect — (A) the
The provisions of Title 5 which could not be
public employment principles of merit and fitness set
waived, modified, or otherwise affected are
forth in 5 U.S.C. 2301, including the principles of
5 U.S.C. 2301 — Merit System Principles
hiring based on merit, fair treatment without regard to
5 U.S.C. 2302 — Prohibited Personnel
political affiliation or other non-merit considerations,
Practices
equal pay for equal work, and protection of employees
against reprisal for whistleblowing; (B) any provision

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CRS-6
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
of 5 U.S.C. 2302 relating to prohibited personnel
practices; (C)(i) any provision of law referred to in 5
U.S.C. 2302(b)(1), (8), and (9); or (ii) any provision of
law implementing any provision of law referred to in 5
U.S.C. 2302(b)(1), (8), and (9) by (I) providing for
equal employment opportunity through affirmative
action; or (II) providing any right or remedy available
to any employee or applicant for employment in the
public service; (D) any other provision of 5 U.S.C. Part
uses “civil service” instead of “public
III (as described in subsection (c)); or (E) any rule or
service”
regulation prescribed under any provision of law
referred to in this paragraph;
(4) ensure that employees could organize, bargain
collectively as provided for in Chapter 99, and
participate through labor organizations of their own
choosing in decisions which affect them, subject to the
does not include “subject to the provisions
provisions of Chapter 99 and any exclusion from
of Chapter 99”
coverage or limitation on negotiability established
pursuant to law;
(5) not be limited by any specific law or authority
(5) not included; (5) in the DHS Act
under Title 5 that is waivable under Chapter 99 or by
permits category rating system
any provision of Chapter 99 or any rule or regulation
prescribed under Title 5 that is waivable under Chapter
99, except as specifically provided for in this section;
and (6) include a performance management system that
incorporates the following elements: (A) adherence to
merit principles set forth in 5 U.S.C. 2301; (B) a fair,
credible, and transparent employee performance
appraisal system; (C) a link between the performance

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CRS-7
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
management system and the agency’s strategic plan;
(D) a means for ensuring employee involvement in the
design and implementation of the system; (E) adequate
training and retraining for supervisors, managers, and
employees in the implementation and operation of the
performance management system; (F) a process for
ensuring ongoing performance feedback and dialogue
between managers, supervisors, and employees
throughout the appraisal period, and setting timetables
for review; (G) effective safeguards to ensure that the
management of the system is fair and equitable and
based on employee performance; and (H) a means for
ensuring that adequate agency resources are allocated
for the design, implementation, and administration of
the performance management system.
New 5 U.S.C. 9902(c) Other Nonwaivable Provisions. Other protected Title 5 provisions would be: 5 U.S.C. 9701(c) - Other Nonwaivable
The other provisions of this part referred to in
(1) Part III — Employees (table of contents
Provisions. Same, except that Chapter 55
subsection (b)(3)(D) are (to the extent not otherwise
of Part III precedes 5 U.S.C. 2101)
Subchapter V - Premium Pay also is
specified in this title) — (1) Subparts A, B, E, G, and H
Subpart A — General Provisions
nonwaivable at DHS, as is Chapter 97 -
of 5 U.S.C. Part III; and Chapters 41, 45, 47, 55
Subpart B — Employment and Retention
Department of Homeland Security.
(except Subchapter V thereof), 57, 59, 72, 73, and 79,
Subpart E — Attendance and Leave
and this chapter [Chapter 99].
Subpart G — Insurance and Annuities
Subpart H - Access to Criminal History
Information
(2) 5 U.S.C. Chapters
41 — Training
45 — Awards for Superior Accomplishments

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CRS-8
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
47 — Personnel Research Programs and
Demonstration Projects
55 — Pay Administration (Subchapter V is
Premium Pay)
57 — Travel, Transportation, and
Subsistence
59 — Allowances
72 — Anti-discrimination; Right to Petition
Congress
73 — Employees’ Right to Petition Congress
79 — Services to Employees waiver
New 5 U.S.C. 9902(d) — Limitations Relating to Pay
Title 5, Chapter 53 (Pay Rates and Systems),
5 U.S.C. 9701(d) Limitations Relating to
(1) Nothing in this section would constitute authority to
Subchapter II (Executive Schedule Pay
Pay. Nothing in this section constitutes
modify the pay of any employee who serves in an
Rates)
authority (1) Same, except that it adds “or
Executive Schedule position under 5 U.S.C. Chapter
a position for which the rate of basic pay
53, Subchapter II.
is fixed in statute by reference to a section
or level under 5 U.S.C. Chapter 53,
Subchapter II;”
(2) Except as provided for in (1), the total amount in a
Same, except for “under title 10”; 5 U.S.C.
(2) to fix pay for any employee or position
calendar year of allowances, differentials, bonuses,
5307 - Limitation on certain payments caps
at an annual rate greater than the
awards, or other similar cash payments paid under Title
total pay, including all cash payments such
maximum amount of cash compensation
5 to any employee who is paid under 5 U.S.C. 5376 or
as allowances and awards to the annual rate
allowable under 5 U.S.C. 5307 -
5383 or under Title 10 or under other comparable pay
of basic pay for level I of the Executive
Limitations on certain payments in a year;
authority established for payment of Department of
Schedule ($171,900 in 2003); however, for
or
Defense senior executive or equivalent employees
those paid under 5 U.S.C. 5376 — Pay for
could not exceed the total annual compensation
certain senior level positions (including those (3) to exempt any employee from the
payable to the Vice President.
classified above GS-15, scientific and
application of 5 U.S.C. 5307.

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CRS-9
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
professional positions under 5 U.S.C. 3104,
The cap for positions under 5 U.S.C. 5376
and SES); or 5 U.S.C. 5383 — Setting
and 5383 was raised from level I of the
individual senior executive pay, the cap is
Executive Schedule to the total
the total compensation payable to the Vice
compensation of the Vice President by
President under 3 U.S.C. 104 - Salary of the
Sec. 1322 of P.L. 107-296.
Vice President ($198,600)
10 U.S.C. 1603 Basic pay (Defense
Intelligence Senior Executive Service and
Intelligence Senior Level positions)
New 5 U.S.C. 9902(e) — Provisions to Ensure
No similar provision concerning
5 U.S.C. 9701(e) Same as DOD proposal,
Collaboration with Employee Representatives
collaboration and development of a new
except that the DHS Secretary is not
human resources management system, but
granted authority to engage in
The secretary and OPM director would be required to
labor organizations having national
collaborative activities at a national
provide a written description of the proposed human
consultation rights in connection with any
organizational level above the level of
resources management system or adjustments to such
agency must be informed of any substantive
exclusive recognition. Moreover, DHS
system to employee representatives. The
change in conditions of employment
collaboration procedures must ensure —
representatives would be given at least 30 calendar
proposed by an agency, and must be
(1) in the case of individuals in a labor
days (unless extraordinary circumstances require earlier
permitted reasonable time to present their
organization that has been accorded
action) to review and make recommendations with
views and recommendations regarding
exclusive recognition, representation by
respect to the proposal. These recommendations would
changes. See 5 U.S.C. 7113 -National
individuals designated by or from such
have to be given full and fair consideration. The
consultation rights. organization; (2) in the case of individuals
secretary and director would notify Congress of those
not within a bargaining unit,
parts of the proposal for which recommendations were
representation by an organization which
made but not accepted. They also would be required to
represents a substantial number; (3) fair
meet and confer with employee representatives for not
and expeditious handling of the
less than 30 calendar days to attempt to reach
consultation and mediation process,
agreement on whether and how to proceed with those
including procedures by which, if the

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CRS-10
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
parts of the proposal for which recommendations were

number of employee representatives
not accepted. The secretary or a majority of the
exceeds 5, for representatives to select a
employees representatives participating in the
committee to meet and confer with the
consultation could use the services of the Federal
secretary and Director of OPM; and (4)
Mediation and Conciliation Service to assist with the
selection of representatives in a manner
discussions. After 30 calendar days following
consistent with the relative number of
notification and consultation, the secretary could
employees represented by organizations or
implement any or all of the disputed parts if it was
other representatives involved.
determined that further consultation and mediation
would be unlikely to produce agreement. The secretary
Title 5, chapter 71 - Labor-Management
and director would develop a method for employee
and Employee Relations is subject to
representatives to participate in any further planning or
waiver or adjustment in developing a new
development if a proposal was implemented. Any
human resources management system.
procedures necessary to facilitate collaboration would
be established as internal rules of department procedure
See also 5 U.S.C. 9701(g) - Establishment
not subject to review.
of Human Resources Management System
- Provisions Relating to Labor-
5 U.S.C. 553 - Rule making — waives
Management Relations, which provides
Federal Register notice and comment
that nothing in the new section shall be
procedures for internal agency rules of
construed as conferring authority on the
procedure.
Secretary to modify any provisions of
section 842 - Labor- Management
5 U.S.C. 7103(b) - Definitions; application
Relations of P.L. 107-296. Sec. 642 grants
authorizes the President to issue an order
some measure of protection to agencies,
excluding an agency or subdivision thereof if bargaining units, and individuals from
the President determines that either has as a
exclusion from coverage of Title 5
primary function intelligence, counter-
Chapter 71- Labor Management and
intelligence, or national security work and
Employee Relations unless missions
that Chapter 71 procedures cannot be applied change to intelligence,

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CRS-11
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
consistent with national security. The
counterintelligence, or investigating
President may issue an order with respect to
terrorism; and Sec. 1512 of P.L. 107-296 -
any agency, installation, or activity located
Savings Provisions, which states that
outside the 50 states and D.C. if the President completed administrative actions,
determines the suspension necessary in the
including contracts, of an agency affected
interest of national security.
by the DHS Act shall not be affected by
enactment of the Act, and, except as
otherwise provided in the Act, transfer of
personnel does not alter the terms and
conditions of employment, including
compensation, of any transferred
employee.
New 5 U.S.C. 9902(f) — Provisions Regarding
No similar provision with respect to national
No similar provision, but Title 5, Chapter
National Level Bargaining
level bargaining, but see 5 U.S.C. 7111 -
71 - Labor-Management and Employee
Any human resources management system
Exclusive recognition of labor organizations, Relations is subject to waiver or
implemented or modified under the new Ttitle 5,
and 5 U.S.C. 7114 - Representation rights
adjustment in developing a human
Chapter 99 could include DOD employees from any
and duties
resources management system.
bargaining unit with respect to which a labor
organization was accorded exclusive recognition. For
any such bargaining unit, the secretary could bargain at
a level above the level of exclusive recognition. Such
bargaining would be binding on all subordinate
bargaining units and DOD and its subcomponents; it
would supersede all other collective bargaining
agreements, except as otherwise determined by the
secretary; would not be subject to further negotiations
for any purpose, except as provided for by the
secretary; and would not be subject to review or

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CRS-12
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
statutory third-party dispute resolution procedures
outside DOD, except as otherwise provided in the new
Chapter 99.
5 U.S.C. 7105 - Powers and duties of the
[Federal Labor Relations] Authority
New 5 U.S.C. 9902(g) - Provisions Relating to
Title 5, Chapter 77 - “Appellate procedures”
Sec. 841(a) created 5 U.S.C. 9701(f)
Appellate Procedures. (1) Directs the secretary to (A)
grants right to appeal agency disciplinary
Provisions Relating to Appellate
establish an appeals process which provides that DOD
actions to the Merit Systems Protection
Procedures.
employees are entitled to fair treatment in any appeals
Board.
Same with the following differences:
that they bring in decisions relating to their
— Expression as sense of the Congress
employment; and (B) in prescribing regulations for any
rather than directive to the DHS Secretary
such appeals process the secretary would be required to
— authority to issue appellate procedure
(i) ensure that DOD employees are afforded the
regulations is granted jointly to the DHS
protections of due process; and (ii) toward that end,
Secretary and the OPM Director, not only
would have to consult with the Merit Systems
to the Secretary as in DOD
Protection Board before issuing any such regulations.
(2) Any regulations establishing the appeals process (1)
that relate to any matters within the purview of Chapter
— no requirement for independent review
77 - Appellate Procedures would have to (A) provide
panel
for an independent review panel, appointed by the
President, not including the secretary or assistant
secretary or their subordinates; (B) be issued only after
(i) notifying the appropriate congressional committees;
and consulting with the Merit Systems Protection
— no notification to appropriate
Board and the Equal Employment Opportunity
congressional committees
Commission; (C) ensure the availability of procedures
— consultation with Merit Systems
that (i) are consistent with the requirements of due
Protection Board only not MSPB and the
process; and (ii) provide, to the maximum extent
Equal Employment Opportunity

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CRS-13
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
practicable, for the expeditious handling of any matters
Commission
involving DOD; and (iii) modify Chapter 77
procedures only insofar as those modifications are
Title 5, Chapter 77 - “Appellate
designed to further the fair, efficient, and expeditious
procedures”
resolution of matters involving DOD employees.
is subject to waiver or adjustment in
developing a human resources
management system.
New 5 U.S.C. 9902(h) Provisions Related to
With the approval of the Office of Personnel
Sec. 472. Similar voluntary separation
Separation and Retirement Incentives
Management (OPM), a federal agency
incentives authorized for the Immigration
Authorizes the Secretary of Defense to offer (1) early
undergoing restructuring or downsizing can
and Naturalization Service and Border
retirement to employees who are age 50 or older with
offer voluntary early retirement to employees Patrol.
20 years of service or any age with 25 years of service
in specific occupational groups,
Sec. 1313(b) Made the changes that are
and (2) separation incentive pay of up to $25,000 to
organizational units, or geographic locations
now law.
DOD employees who retire or resign. Prohibits re-
who are age 50 or older and have at least 20
employment within DOD for 12 months after receipt of
years of service, or are any age and have at
separation pay unless prohibition is waived by the
least 25 years of service. Also with the
Secretary case-by-case. Requires anyone who is re-
approval of OPM, a federal agency may offer
employed by the federal government within 5 years of
voluntary separation incentive payments of
receiving separation pay to repay the full amount to the
up to $25,000 to employees who retire or
DOD. No OPM review is required.
resign. The full amount must be repaid if
individual is re-employed by the federal
government within five years.
5 U.S.C. 8336 - Immediate Retirement (Civil
Service Retirement System) and 5 U.S.C.
8414 - Early retirement (Federal Employees’
Retirement System)
Title 5, Chapter 35 -Retention Preference,
Voluntary Separation Incentive Payments,

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H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
Restoration, and Reemployment, Subchapter
II - Voluntary Separation Incentive Payments
(5 U.S.C. 3521-3525)
New 5 U.S.C. 9902(i) Provisions Relating to
Generally, a retired federal employee who is
No similar provision
Reemployment: Provides that if a retired federal
re-employed by the federal government may
employee who is receiving an annuity from the Civil
not receive a federal retirement annuity and a
Service Retirement and Disability Fund becomes
federal salary simultaneously. Sections 8344
employed by the Department of Defense, his or her
(CSRS) and 8468 (FERS) of Title 5, U.S.C.
annuity will continue. The employee will not accrue
provide that a retired federal employee who
additional credit under either CSRS or FERS during
is receiving an annuity from the Civil
this period of re-employment.
Service Retirement and Disability Fund who
is re-employed by a federal agency, will have
an amount equal to the annuity deducted
from his or her pay. If re-employment lasts
more than one year, the individual will be
eligible for a supplemental annuity for the
period of re-employment when he or she
retires.
New 5 U.S.C. 9902(j) Provisions relating to hiring —
5 U.S.C. 4703 - Authorizes OPM to conduct
No similar provision; law stated that 5
Notwithstanding section 9902(c), the secretary could
demonstration projects. Subject to 4703,
U.S.C. Chapter 47 could not be waived or
exercise hiring flexibilities that would otherwise be
demonstration projects are not limited by any modified.
available to the secretary under 5 U.S.C. 4703.
lack of specific Title 5 authority or by any
Title 5 provision or regulation which is
inconsistent with the action, including any
law or regulation relating to the methods of
establishing qualification requirements for,
recruitment for, and appointment to

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CRS-15
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
positions.
No sunset provision
No similar provision
5 U.S.C. 9701 - Sunset Provisions.
Provides that all authority of the Secretary
and OPM Director jointly to issue
regulations to establish and adjust the
DHS human resources management
system ceases to be available.
New 5 U.S.C. 9903. Attracting highly qualified
See counterpart for 9904(b) below.
No similar provision
experts.
New 5 U.S.C. 9903(a) In General. The secretary could
P.L. 105-261, Sec. 1101 (1998) (5 U.S.C.
No similar provision
carry out a program using the authority provided in (b)
3104(a) note) - Defense Advanced Research
in order to attract highly qualified experts in needed
Projects Agency Experimental Personnel
occupations, as determined by the secretary.
Management Program for Technical
Personnel granted the Secretary of Defense
for five years experimental special
management authority to facilitate
recruitment of eminent experts in science and
engineering for the Defense Advanced
Research Projects Agency.

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CRS-16
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
New 5 U.S.C. 9903(b) - Authority
5 U.S.C. 3104 - Employment of specially
No similar provision
Under the program, the secretary could —
qualified scientific and professional
(1) appoint personnel from outside the civil service and
personnel
uniformed services (as such terms are defined in 5
5 U.S.C. 3104 note. Similar, but special
U.S.C. 2101) to positions in DOD without regard to
appointment authority is limited to
any provision of this title governing the appointment of
“scientists and engineers” and “not more
employees to positions in DOD;
than 20 scientific and engineering positions
(2) prescribe the rates of basic pay for positions to
in the Defense Advanced Research Projects
which employees are appointed under (1) at rates not in
Agency.” Same authority to prescribe basic
excess of the maximum rate of basic pay authorized for
rate of pay, but no authority to increase basic
senior-level positions under 5 U.S.C. 5376, as
pay by locality-based comparability
increased by locality-based comparability payments,
payments.
notwithstanding any provision of this title governing
the rates of pay or classification of employees in the
5 U.S.C. 3324 - Appointments to positions
executive branch; and
classified above GS-15 (generally requires
(3) pay any employee appointed under (1) payments in
OPM approval)
addition to basic pay within the limit applicable to the
employee under (d)(1) below.
5 U.S.C. 3325 - Appointments to scientific
and professional positions (generally requires
OPM approval of qualifications)
5 U.S.C. 3326 - Appointments of retired
members of the armed services in the
Department of Defense (imposes certain
requirements on appointments of a retired
armed services member in the period within
180 days immediately following retirement
from the armed services) proposed for repeal,
see sec. 404)

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CRS-17
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
5 U.S.C. 5376 - “Pay for certain senior- level
positions” generally limits pay to not less
than 120 percent of the maximum basic pay
rate for GS-15 and not greater than basic pay
rate for level IV of the Executive Schedule.
5 U.S.C. 5377 - “Pay authority for critical
positions” generally limits the maximum
basic rate to level I of the Executive
Schedule.
See 5 U.S.C. 9502 - Pay authority for critical
positions and 5 U.S.C. 9503 Streamlined
critical pay authority [in the Internal
Revenue Service] which allows pay for up to
the salary of the Vice President.
New 5 U.S.C. 9903(c) - Limitation on Term of
5 U.S.C. 3104(c) note. Term of initial
No similar provision
Appointment
appointment limited to 4 years with up to a 2
(1) Except as provided in (2), the service of an
year extension
employee under an appointment made pursuant to this
section may not exceed 5 years.
(2) The secretary could, in the case of a particular
employee, extend the period to which service is limited
under (1) by up to one additional year if the secretary
determines that such action is necessary to promote
DOD’s national security missions.

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CRS-18
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
New 5 U.S.C. 9903(d) - Limitations on Additional
5 U.S.C. 3104 note. Similar, but additional
Sec. 841(a) (5 U.S.C. 9701(d))
Payments
payments may not exceed the least of (A)
Limitations Relating to Pay of P.L. 107-
(1) The total amount of the additional payments paid to
$25,000; (B) the amount equal to 25 percent
296 generally prohibits paying any
an employee under this section for any 12-month
of the employee’s annual rate of basic pay;
employee at a rate greater than the
period could not exceed the least of the following
(C) the amount of the limitation applicable
maximum amount allowable under 5
amounts: (A) $50,000 in FY 2004, which could be
for a calendar year under 5 U.S.C. 5307(a).
U.S.C. 5307 or exempting any employee
adjusted annually thereafter by the secretary, with a
Same with respect to ineligibility for any
from 5 U.S.C. 5307, which generally
percentage increase equal to one-half of one percentage
bonus, monetary award, or other monetary
limits total pay, including awards and
points less than the percentage by which the
incentive.
other cash payments, to level I of the
Employment Cost Index, published quarterly by the
Executive Schedule, except for some high
Bureau of Labor Statistics, for the base quarter of the
5 U.S.C. 5307 - Limitation on certain
level positions which are limited to the
year before the preceding calendar year exceeds the
payments limits the amount to cash
salary of the Vice President.
Employment Cost Index for the base quarter of the
payments such as allowances and awards
second year before the preceding calendar year. (B)
plus salary to level I of the Executive
The amount equal to 50 percent of the employee’s
Schedule ($171,900 in 2003), except for
annual rate of basic pay.
some high level positions which are limited
(2) An employee appointed under this section would
to the salary of the Vice President
not be eligible for any bonus, monetary award, or other
($198,600).
monetary incentive for service except for payments
authorized under this section.
Title 5, Chapter 45 - Incentive Awards
New 5 U.S.C. 9903(e) - Savings Provisions
In the event that the secretary terminates this program,
in the case of an employee who, on the day before the
termination of the program, is serving in a position
pursuant to an appointment under this section — (1)
the termination of the program does not terminate the
employee’s employment in that position before the
expiration of the lesser of — (A) the period for which

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CRS-19
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
the employee was appointed; or (B) the period to which
the employee’s service is limited under (c), including
any extension made under this section before the
termination of the program; and
(2) the rate of basic pay prescribed for the position
under this section could not be reduced as long as the
employee continues to serve in the position without a
5 U.S.C. 5363 - Pay retention
Sec. 841(b) of P.L. 107-296 -
break in service.
Nonseparation or Nonreduction in Grade
or Compensation of Full-Time and Part-
Time Personnel Holding Permanent
Positions generally prevents separation or
reduction in pay or grade for one year
following transfer to DHS
New 5 U.S.C. 9904. Employment of older Americans.
Generally, under 5 U.S.C. 8344 (CSRS) and
No similar provision
Would allow the Secretary of Defense to appoint
8468 (FERS) a retired federal employee who
American citizens age 55 or older to positions in the
is re-employed by the federal government
excepted service (i.e., not part of the competitive civil
may not receive a federal retirement annuity
service) for a period not to exceed two years (plus a
and a federal salary simultaneously. Under
possible additional two-year reappointment).The
section 203 of the Social Security Act (42
appointed individual could not displace another DOD
U.S.C. 403), an individual under age 65 who
employee or be in reduction-in-force status from an
receives Social Security benefits and who
equivalent job in DOD, and must be qualified for the
also is employed is subject to an “earnings
job, “as determined by the Secretary.” An individual
test.” In 2003, a Social Security recipient
appointed to such a position who was receiving an
under age 65 has his or her Social Security
annuity, pension, Social Security, retired pay or similar
benefit reduced by $1 for each $2 of earnings
payment could not have such payment reduced as a
in excess of $11,520.
result of the appointment.

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CRS-20
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
New 5 U.S.C. 9905. Special pay and benefits for
10 U.S.C. 1605 - Benefits for certain
No similar provision
certain employees outside the United States [No (a)
employees assigned outside the United
designation appears in the text.] The secretary could
States. (Provisions is similar, but authorizes
provide to certain civilian employees of DOD assigned
providing allowances and benefits from more
to activities outside the United States and designated
statutory sources and makes this authority
by the secretary for the purposes of this subsection —
effective only to the extent appropriations are
(1) allowances and benefits — (A) comparable to those
available for this purpose.
provided by the Secretary of State to members of the
Foreign Service under Chapter 9 of Title I of the
Foreign Service Act of 1980 or any other provision of
law; or (B) comparable to those provided by the
Director of Central Intelligence to personnel of the
Central Intelligence Agency (CIA); and (2) special
retirement accrual benefits and disability in the same
manner provided for by the CIA Retirement Act and in
50 U.S.C. 403r - Special annuity
Section 18 of the CIA Act of 1949. Authority to pay
computation rules for certain employees’
these benefits is not limited to extent appropriations
service abroad generally allows higher
have been provided.
annuity rates for overseas service.
Sec. 102(b) Impact on Department of Defense Civilian
No similar provision
Sec. 841(b)(3) of P.L. 107-296 -
Personnel
Coordination Rule is identical to the
(1) Any exercise of authority under the new Chapter 99
proposed 5 U.S.C. 9905(b)(1), but there is
of Title 5, including under any system established
no counterpart to 5 U.S.C. 9905(b)(2).
under such chapter, would have to be in conformance
with the requirements of this subsection. (2) No other
provision of the act, or any provision made by it,
should be construed or applied in a manner so as to
limit, supersede, or otherwise affect provisions of Sec.
9905, except to the extent that it does so by specific
reference to Sec. 9905.

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CRS-21
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
Title II - Department of Defense Civilian Personnel
(Includes Government-wide Provisions)
Sec. 201. Modification of the overtime pay cap
5 U.S.C. 5542 - Overtime rates; computation
No similar provision
[H.R. 1588, Sec. 1101]
(a)(2) For an employee whose basic pay is at
Would amend 5 U.S.C. 5542(a)(2) by (1) inserting “the
a rate which exceeds the minimum rate of
greater of” before “one and one-half”; and (2) by
basic pay for GS-10 (including any
inserting “or the hourly rate of basic pay of the
applicable locality-based comparability
employee” after “law)” the second place it appears.
payment under section 5304 or similar
provision of law and any applicable special
rate of pay under section 5305 or similar
provision of law), the overtime hourly rate of
pay is an amount equal to one and one-half
times the hourly rate of the minimum rate or
basic pay for GS-10 (including any
applicable locality-based comparability
payment under section 5304 or similar
provision of law and any applicable special
rate of pay under section 5305 or similar
provision of law), and all that amount is
premium pay.
Sec. 202. Civil Service Retirement System
5 U.S.C. 8339 - Computation of annuity.
No similar provision
computation for part-time service
Employees covered by CSRS who work
Would amend 5 U.S.C. 8339 to clarify that CSRS
part-time before retiring experience
retirement annuities based in whole or in part on part-
disproportionately large cuts in their
time service are to be prorated only for the period of
retirement annuities as the result of a

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CRS-22
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
service that was performed on a part-time basis.
regulation adopted in response to the
Comprehensive Omnibus Budget
Reconciliation Act of 1986 (P.L. 99-272).
Sec. 203. Military leave for mobilized federal civilian
5. U.S.C. 6323 - Military leave; Reserves
No similar provision
employees
and National Guardsmen
[H.R. 1588, Sec. 1102]
(a) In General. Would amend 5 U.S.C. 6323 by
redesignating subparagraphs; and by inserting the
following before the text beginning with “is entitled”:
(B) performs full-time military service as a result of a
call or order to active duty in support of a contingency
operation as defined in 10 U.S.C. 101(a)(13).
Effective Date. The amendments made by (a) would
apply to military service performed on or after the act’s
enactment.
Sec. 204. Common occupational and health standards
5 U.S.C. 5343 - Prevailing rate
No similar provision
for differential payments as a consequence of exposure
determinations; wage schedule; night
to asbestos
differentials
[H.R. 1588, Sec. 1103]
(c)(4) for proper differentials, as determined
(a) Prevailing Rate Systems. Would amend 5 U.S.C.
by OPM, for duty involving unusually severe
5343(c)(4) by inserting before the semicolon at the end: working conditions or unusually severe
“, and for any hardship or hazard related to asbestos,
hazards;
such differentials would be determined by applying
occupational safety and health standards consistent
with the permissible exposure limit promulgated by the
Secretary of Labor under the Occupational Safety and
Health Act of 1970.”

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CRS-23
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
(b) General Schedule Pay Rates. 5 U.S.C. 5545(d)
5 U.S.C. 5545(d) - Night, standby, irregular,
would be amended by inserting before the period at the
and hazardous duty differential
end of the first sentence: “and for any hardship or
(d) The Office shall establish a schedule or
hazard related to asbestos, such differentials would be
schedules of pay differentials for duty
determined by applying occupational safety and health
involving unusual physical hardship or
standards consistent with the permissible exposure
hazard.
limit promulgated by the Secretary of Labor under the
Occupational Safety and Health Act of 1970.”
(c) Applicability. Subject to any vested constitutional
property rights, any administrative or judicial
determination after the act’s enactment date concerning
backpay for a differential established under 5 U.S.C.
5343(c)(4) or 5545(d) would be based on occupational
safety and health standards described in the
amendments made by (a) and (b).
Sec. 205. Increase in annual student loan repayment
5 U.S.C. 5379 - Student loan repayments
No similar provision
authority
(b)(2)(A) repayments may not exceed $6,000
[H.R. 1588, Sec. 1104]
for any employee in any calendar year
Would amend 5 U.S.C. 5379(b)(2)(A) by striking
$6,000 and inserting $10,000.
Sec. 206. Authorization for cabinet secretaries of
5 U.S.C. 5504 - Biweekly pay periods;
No similar provision
military departments, and heads of executive agencies
computation of pay
to be paid on a biweekly basis
[H.R. 1588, Sec. 1105]
Would amend 5 U.S.C. 5504 by redesignating
subsections and by adding at the end: “(2) OPM would
provide guidelines by regulation for exemptions to be

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CRS-24
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
made by the heads of agencies under (c)(3). Such
guidelines would provide for such exemptions only
under exceptional circumstances.”
Sec. 207 - Additional classes of individuals eligible to
Eligibility is restricted for the most part to
No similar provision
participate in the federal long-term care insurance
federal employees and annuitants, members
program.
of the uniformed services (including those
[H.R. 1588, Sec. 551]
entitled to retirement or retainer pay), retired
Would amend 5 U.S.C. 9001 by extending eligibility to
military reservists at the time they qualify for
certain employees of the District of Columbia, to
an annuity, and the spouse, surviving spouse,
former federal employees who have met the service but
and (in some cases) family members.
not the minimum age requirement for title for an
5 U.S.C. 9001 - Definitions (Long-Term
annuity, and reservists transferred to the retired reserve
Care Insurance)
who are under age 60 and so do not yet qualify for an
annuity.
Sec. 208. Clarification to Hatch Act; Limitation on
5 U.S.C. Chapter 73 - Suitability, Security,
No similar provision
disclosure of certain records
and Conduct, Subchapter III - Political
[H.R. 1588, Sec. 1109, see below]
Activities
(a) Clarification to Hatch Act
No federal employee or individual who voluntarily
separates from the civil service (including by
transferring to an international organization in the
circumstances described in 5 U.S.C. 3582(a)) would be
subject to enforcement of the provisions of 5 U.S.C.
7326 (including any loss of rights under 5 U.S.C.
Chapter 35, Subchapter IV resulting from any
proceeding under 5 U.S.C. 7326), except that this
subsection would not apply in the event that such

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CRS-25
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
employee or individual subsequently becomes
reemployed in the civil service. The preceding
sentence would apply to any complaint which is filed
with or pending before the Merit Systems Protection
Board after the act’s enactment date.
(b) Limitation on disclosure of certain records
Notwithstanding any other provision of law, rule, or
regulation, nothing described in paragraph (2) or (3) of
use “q” of the proposed revisions published in the
Federal Register on July 12, 2001 would be considered
to constitute a routine use of records maintained by the
Office of Special Counsel.
(c) Definitions
(1) “Federal employee or individual” would mean any
employee or individual as referred to in 5 U.S.C. 7326;
(2) “civil service” would have the meaning given such
term by 5 U.S.C. 2101; (3) “international organization”
would have the meaning given such term under 5
U.S.C. 3581; (4) “routine use” and “record” would
have the meanings given under 5 U.S.C. 552a(a).
H.R. 1588, Sec. 1109 — Would substitute the
following language for that found in Sec. 208 as
described above:
No federal employee or individual who, before the
act’s enactment date, was employed in the office of the
Department of Defense Inspector General and
transferred to a Special Court sponsored by the United
Nations pursuant to the authority in 5 U.S.C. 3582(a),
would be subject to enforcement of the provisions of 5

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CRS-26
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
U.S.C. 7326, except that this section would not apply
in the event that such employee or individual
subsequently becomes reemployed in the civil service.
Sec. 209. Senior Executive Service and performance
5 U.S.C. 5304. Locality-based comparability
No similar language
[H.R. 1588, Sec. 1106]
payments
Sec. 209(a)Senior Executive Pay
(g)(2) - Level III of the Executive Schedule
(1) would amend 5 U.S.C. 5304(g)(2) and (h)(2)(B).
is the cap for locality pay for positions in the
Positions in the SES; positions in the FBI and DEA
Senior Executive Service (SES); positions in
SES; and positions in a system equivalent to the SES,
the Federal Bureau of Investigation (FBI)
as determined by the President’s pay agent, would not
and Drug Enforcement Administration
receive locality pay.
(DEA) SES; administrative law judges;
contract appeals board members; and
positions not included in the general
schedule whose basic rates of pay do not
exceed level IV of the Executive Schedule.
Sec. 209(a)(2) would replace 5 U.S.C. 5382.
5 U.S.C. 5382. Pay for the Senior Executive
(a) Would require the establishment of a range of rates
Service
of basic pay for the SES, subject to regulations
(a) Requires the establishment of five or
prescribed by the Office of Personnel Management
more rates of basic pay for the SES; each
(OPM). Each senior executive would be paid at one of
member of the SES shall be paid at one of
the rates within the range, based on individual
the rates.
performance, contribution to the agency’s performance,
(b) The cap on basic pay is level IV of the
or both. Determination would be made under a
Executive Schedule. No similar language
“rigorous performance management system.” The cap
on basic pay would be level III of the Executive
Schedule.
(b) For any agency whose performance appraisal

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CRS-27
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
system is certified as making meaningful distinctions
based on relative performance, the cap on basic pay
would be level II of the Executive Schedule.
(c) The pay of a senior executive who transfers from a
certified agency to a noncertified agency would not be
reduced.
Sec. 209(b) Post-employment restrictions
18 U.S.C. 207(c)(2)(A)(ii). Applies post-
No similar provisions
Would apply post-employment conflict of interest
employment conflict of interest provision
provision commonly known as the one-year “cooling
commonly known as the one-year “cooling
off” period (18 U.S.C. 207(c)(1)) to (in addition to
off” period (18 U.S.C. 207(c)(1)) to (in
those paid on the Executive Schedule) those not paid
addition to those paid on the Executive
on the Executive Schedule but who are compensated at
Schedule) those not paid on the Executive
a rate of pay equal to or greater than 96% of the rate of
Schedule but who are compensated at a base
basic pay for level II of the Executive Schedule
rate of pay equal to or greater than the basic
($148,512 in 2003), or, for two years after the
pay for a level 5
enactment of this Act, those persons who would have
on the Senior Executive Service. ($134,000
been covered by the restriction the day before the Act
for 2003)
was passed (those compensated at a base rate of pay
equal to or greater than a level 5 for the Senior
Executive Service, $134,000 for 2003). Would amend
18 U.S.C. 207(c)(2)(A)(ii).
H.R. 1588, Sec. 1106 — Substitutes the phrase, “the
National Defense Authorization Act for FY2004” for a
reference to “the Federal Employees Pay for
Performance Act of 2003.”
Sec. 210. Design elements of pay-for-performance
5 U.S.C. Chapter 47 - Personnel research
No similar provision
systems in demonstration projects
programs and demonstration projects

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CRS-28
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
[H.R. 1588, Sec. 1107]
A pay-for-performance system could not be initiated
under 5 U.S.C. Chapter 47 after this act’s enactment
date, unless it incorporates the following elements: (1)
adherence to merit principles set forth in 5 U.S.C.
2301; (2) a fair, credible, and transparent employee
performance appraisal system; (3) a link between
elements of the pay-for-performance system, the
employee performance appraisal system, and the
agency’s strategic plan; (4) a means for ensuring
employee involvement in the design and
implementation of the system; (5) adequate training
and retraining for supervisors, managers, and
employees in the implementation and operation of the
pay-for-performance system; (6) a process for ensuring
ongoing performance feedback and dialogue between
managers, supervisors, and employees throughout the
appraisal period, and setting timetables for review; (7)
effective safeguards to ensure that the management of
the system is fair and equitable and based on employee
performance; and (8) a means for ensuring that
adequate agency resources are allocated for the design,
implementation, and administration of the pay-for-
performance system.
Sec. 211. Federal flexible benefits plan administrative
There is no explicit authority for federal
No similar provision
costs
agencies to offer FSAs or for OPM to
[H.R. 1588, Sec. 1108]
administer them. However, agency heads
Would prohibit federal agencies offering a flexible
may make allotments from employee pay as

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CRS-29
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
spending account option from imposing fees on
they think appropriate (5 USC 5525) and
employees to defray administrative costs. Would
OPM has general authority to advise the
require agencies to forward to the Office of Personnel
President regarding the civil service (5 USC
Management (or an entity it designates) amounts to
1103(a)(7).
offset the costs.
Would require the Office of Personnel Management to
submit reports to congressional committees on the
administrative costs. Would require agencies to submit
reports to the Office of Management and Budget on the
employment tax savings from the option, net of
administrative fees paid.
Sec. 212. Nonreduction in pay while federal employee
5 U.S.C. Chapter 55 - Pay Administration;
No similar provision
is serving on active duty in a reserve component of the
Subchapter IV - Dual Pay and Dual
uniformed services
Employment
(a) In General. Would amend 5 U.S.C. Chapter 55,
Subchapter IV by adding:
Sec. 5538. Nonreduction in pay while serving on active
duty in a reserve component
(a) An employee who is also a member of a reserve
component and is absent from a position of
employment with the federal government under a call
or order to serve on active duty for a period of more
than 30 days would be entitled to receive, for each pay
period described in (b), an amount equal to the
difference (if any) between (1) the amount of civilian
basic pay that would otherwise have been payable to
the employee for such pay period if the employee’s
civilian employment with the government had not been

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CRS-30
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
interrupted by the service on active duty; and (2) the
amount of military compensation that is payable to the
employee for the service on active duty and is allocable
to such pay period.
(b) and (c) States the requirements for payment; (d)
Directs that OPM, in consultation with the DOD
secretary, prescribe regulations; (e) Directs that
procedures on applying the provisions be prescribed by
agency heads in consultation with OPM; (f) Defines
terms.
Application of amendment. Provisions would apply
with respect to pay periods beginning on or after the
act’s enactment date.

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CRS-31
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
Sec. 213. Employee surveys
No similar provision
No similar provision
[H.R. 1588, Sec. 1110]
(a) In General. Each agency would conduct an annual
survey of its employees (including survey questions
unique to the agency and questions prescribed under
(b) to assess — (1) leadership and management
practices that contribute to agency performance; and
(2) employee satisfaction with (A) leadership policies
and practices; (B) work environment; (C) rewards and
recognition for professional accomplishment and
personal contributions to achieving organizational
mission; (D) opportunity for professional development
and growth; and (E) opportunity to contribute to
achieving organizational mission.
(b) Regulations. OPM would issue regulations
prescribing survey questions that would appear on all
agency surveys in order to allow a comparison across
agencies.
(c) Availability of results. The results of the agency
surveys would be made available to the public and
posted on the Web site of the agency involved, unless
the agency head determines it will jeopardize or
negatively impact on national security.
(d) Agency defined. “Agency” would mean an
executive agency as defined by 5 U.S.C. 105.

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CRS-32
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
Title III — Provisions Relating to the Securities and Exchange Commission
and the National Aeronautics and Space Administration
Subtitle A — Securities and Exchange Commission
Sec. 301. Securities and Exchange Commission
5 U.S.C. Chapter 31 - Authority for
No similar provision
Would amend 5 U.S.C. Chapter 31, Subchapter I by
employment
adding a new Sec. 3114.
Sec. 3114, Appointment of Accountants, economists,
and examiners by the Securities and Exchange
Commission (SEC)
(a) Applicability. This section would apply to any
position of accountant, economist, and securities
compliance examiner at the SEC that is in the
competitive service.
(b) Appointment Authority. (1) In General. The SEC
could appoint candidates to any position described in
(a) — (A) in accordance with the statutes, rules, and
regulations governing appointments in the excepted
service; and (B) notwithstanding any statutes, rules,
and regulations governing appointments in the
competitive service. (2) Rule of Construction. The
appointment of a candidate to a position under this
subsection’s authority would not be considered to
cause such position to be converted from the
competitive service to the excepted service. (c)
Reports. No later than 90 days after the end of FY

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CRS-33
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
2003 (for FY 2003) and 90 days after the end of FY
2005 (for FY 2004 and 2005), the SEC would submit a
report with respect to its exercise of the authority
granted by (b) during such fiscal years to the House
Committees on Government Reform and Financial
Services and the Senate Committees on Governmental
Affairs and Banking, Housing, and Urban Affairs.
Such reports would describe the changes in the hiring
process authorized by such subsection, including
relevant information related to (1) the quality of
candidates; (2) the procedures used by the SEC to
select candidates through the streamlined hiring
process; (3) the numbers, types, and grades of
employees hired under the authority; (4) any benefits or
shortcomings associated with the use of the authority;
(5) the effect of the exercise of the authority on the
hiring of veterans and other demographic groups; and
(6) the way in which managers were trained in the
administration of the streamlined hiring system.
Commission Defined. “Commission” would mean the
Securities and Exchange Commission.

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CRS-34
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
Subtitle B - National Aeronautics and Space Administration
Sec. 311. Workforce authorities and personnel
No similar provision; related Title 5 sections
Law added a new Chapter 97 -
provisions
are identified in the specific sections below
Department of Homeland Security to Title
(a) In General. Would amend 5 U.S.C. Part III,
5
Subpart I: adding New Title 5, Chapter 98 —
National Aeronautics and Space
Administration
New Subchapter I — Workforce
42 U.S.C. 2472 - National Aeronautics and
No similar provision
Authorities.
Space Administration (defined)
New 5 U.S.C. 9801. Definitions
42 U.S.C. 2466b - Administrator (defined)
(1) “Administration” means the National Aeronautics
and Space Administration (NASA); (2)
“Administrator” means the Administrator of NASA;
(3) “Critical need” means a specific and important
requirement of the Administration’s mission that it is
unable to fulfill because it lacks the appropriate
employees because of the inability to fill positions or
because employees do not possess the requisite skills;
(4) “Employee” means an individual employed in or
under the Administration; and (5) “Workforce plan”
means the plan required under the proposed section
9802(a). (6) Defines “appropriate committees of
Congress” and “redesignation bonus.”
New 5 U.S.C. 9802. Planning, notification, and
5 U.S.C. Chapter 31 - Authority for
No similar provision; law stated that 5
reporting requirements
employment
U.S.C. Chapter 31 could not be waived or
(a) Not later than 90 days before exercising any of the
5 U.S.C. 3104 - Employment of specially
modified.

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CRS-35
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
workforce authorities under this subchapter, the
qualified scientific and professional
administrator would submit a written plan to the
personnel
appropriate committees of Congress. A plan could not
Authorizes OPM director to establish
be implemented without OPM’s approval.
scientific or professional positions which
(b) The plan would include a description of (1) each
require services of specially qualified
critical need of the administration and the criteria used
personnel and which may be established
in its identification; (2) the functions, approximate
outside the General Schedule.
number, and classes or other categories of positions or
employees that address critical needs and that would be
eligible for each authority proposed to be exercised
under the proposed Sec. 9803, and how the exercise of
those authorities with respect to the eligible positions
or employees involved would address each critical
need identified under (1); (3) any critical need
identified under (1) which would not be addressed by
the authorities made available under this subchapter,
and the reasons why those needs would not be so
addressed; (4) the specific criteria to be used in
determining which individuals may receive the benefits
described in the proposed Secs. 9804 and 9805
(including the criteria for granting bonuses in the
absence of a critical need, and 9810, and how the level
of those benefits will be determined; (5) the safeguards
or other measures that will be applied to ensure that
this subchapter is carried out in a manner consistent
with merit system principles; (6) the means by which
employees will be afforded the notification required
under subsections (c) and (d)(1)(B); (7) the methods
that will be used to determine if the authorities

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CRS-36
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
exercised under this subchapter have successfully
addressed each critical need identified under (1); and
(8) the recruitment methods used by NASA before the
enactment of this chapter to recruit highly qualified
individuals, including how it intends to use
nongovernmental recruitment or placement agencies;
and Internet technologies.
(c) Not later than 60 days before first exercising any of
the workforce authorities made available under this
subchapter, the administrator would provide to all
employees, the workforce plan and any additional
information which the administrator considers
appropriate.
(d)(1) The administrator could submit any
modifications to the workforce plan to OPM.
Modifications could not be implemented without
OPM’s approval. Not later than 60 days before
implementing any such modifications, the
administrator would provide an appropriately modified
plan to all NASA employees and to the appropriate
committees of Congress. Any reference in this
subchapter or any other provision of law to the
workforce plan would be considered to include any
modification made in accordance with this subsection.
(e) Provides for employee representatives to review
and make recommendations on the plan before the
administrator submits it to OPM.
(f) None of the workforce authorities made available
under this subchapter could be exercised in a manner

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CRS-37
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
inconsistent with the workforce plan.
(g) Whenever the administration submits its
performance plan under 31 U.S.C. 1115 to the Office
of Management and Budget for any year, the
administration would at the same time submit a copy of
the plan to the Senate Committees on Governmental
Affairs, Appropriations, and commerce, Science, and
Transportation and the House Committees on
Government Reform, Science and Appropriations.
(h) Provides for an evaluation of the plan not later than
six years after the enactment of Sec. 9802 and states
what the evaluation must include.
Note: Title I provisions would permit changes to
certain sections of 5 U.S.C. Chapter 31 for Defense
personnel.
New 5 U.S.C. 9803. Workforce authorities.
Relevant Title 5 sections are noted in the
Relevant sections of the law are noted in
(a) The workforce authorities under this subchapter are
specific sections below.
the specific sections below.
the authority (1) to pay recruitment, redesignation, and
relocation bonuses under the proposed section 9804;
(2) to pay retention bonuses under the proposed Sec.
9805; (3) to make term appointments and to take
related personnel actions under the proposed Sec. 9806;
(4) to fix rates of basic pay for critical positions under
the proposed Sec. 9807; (5) to extend
intergovernmental personnel act assignments under
Sec. 9808; (6) to apply 5 U.S.C. Chapter 35,
Subchapter II in accordance with Sec. 9810.
(b) No authority could be exercised with respect to any

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CRS-38
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
officer who is appointed by the President, by and with
the advice and consent of the Senate.
(c) Unless specifically stated otherwise, all authorities
provided under this subchapter are subject to 5 U.S.C.
5307 (limitation on certain payments).
New 5 U.S.C. 9804. Recruitment, redesignation, and
5 U.S.C. 5753 - Recruitment and relocation
No similar provision; law states that 5
relocation bonuses
bonuses
U.S.C. Chapter 57 provisions cannot be
(a) Notwithstanding 5 U.S.C. 5753, the administrator
Authorizes bonuses of up to 25% of basic
waived or modified.
could pay a bonus to an individual, in accordance with
pay and requires service agreement.
the workforce plan and subject to the limitations in this
5 U.S.C. 9504 - Recruitment, retention,
section, if the administrator determines that NASA
relocation incentives, and relocation
would be likely, in the absence of a bonus, to encounter
expenses (Internal Revenue Service)
difficulty in filling a position; and the individual is
Allows for IRS variations from the Title 5
newly appointed as a federal employee; currently
authority for a 10-year period.
employed by the federal government and newly
appointed to another position in the same geographic
area; or currently employed by the federal government
and required to relocate to a different geographic area
to accept a position with NASA.
(b) If the position is described as addressing a critical
need in the workforce plan, the bonus could not exceed
(1) 50% of the employee’s annual rate of basic pay
(including locality-based comparability payments) as
of the beginning of the service period multiplied by the
service period specified under (d)(1)(B)(i) below; or (2)
100% of the employee’s annual rate of basic pay
(including locality-based comparability payments) as
of the beginning of the service period.

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CRS-39
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
(c) If the position is not described as addressing a
critical need in the workforce plan, the bonus could not
exceed (1) 25% of the employee’s annual rate of basic
pay (including locality-based comparability payments)
as of the beginning of the service period multiplied by
the service period specified under (d)(1)(B)(i) below;
or (2) 100% of the employee’s annual rate of basic pay
(including locality-based comparability payments) as
of the beginning of the service period.
(d)(1)(A) Payment of a bonus would be contingent
upon the individual entering into a service agreement
with the administration. (B) The service agreement
would, at a minimum, include (i) the required service
period; (ii) the method of payment, including a
payment schedule, which could include a lump-sum
payment, installment payments, or a combination
thereof; (iii) the amount of the bonus and the basis for
calculating such amount; and (iv) the conditions under
which the agreement could be terminated before the
agreed-upon service period has been completed, and
the effect of the termination.
(d)(2) For purposes of determinations under (b)(1) and
(c)(1), the employee’s service period would be
expressed as the number equal to the full years and
twelfth parts thereof, rounding the fractional part of a
month to the nearest twelfth part of a year. The service
period could not be less than 6 months and could not
exceed 4 years.
(d)(3) A bonus under this section could not be

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CRS-40
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
considered to be part of an employee’s basic pay.
(e) Before paying a bonus, the administration would
establish a plan for paying recruitment, redesignation,
and relocation bonuses, subject to OPM approval.
(f) Requires the administrator to submit a summary of
all bonuses paid under (b) and (c) to the appropriate
committees of Congress not later than February 28 of
each of the next 10 years and states what the summary
must include.
Note: Title I would prohibit waiver or modification of
5 U.S.C. Chapter 57 for Defense personnel.
New 5 U.S.C. 9805. Retention bonuses
5 U.S.C. 5754 - Retention allowances
No similar provision; law stated that 5
(a) Notwithstanding 5 U.S.C. 5754, the administrator
Authorizes allowances of up to 25% of basic
U.S.C. Chapter 57 provisions could not be
could pay a bonus to an employee, in accordance with
pay.
waived or modified.
the workforce plan and subject to the limitations in this
5 U.S.C. 9504 - Recruitment, retention,
section, if the administrator determines that (1) the
relocation incentives, and relocation
employee’s unusually high or unique qualifications or a
expenses (Internal Revenue Service)
special need of the administration for the employee’s
Allows for IRS variations from the Title 5
services makes it essential to retain the employee; and
authority for a 10-year period.
(2) the employee would be likely to leave in the
absence of a retention bonus.
(b) If the position is described as addressing a critical
need in the workforce plan, the bonus could not exceed
50% of the employee’s annual rate of basic pay
(including locality-based comparability payments).
(c) If the position is not described as addressing a
critical need in the workforce plan, the bonus could not
exceed 25% of the employee’s annual rate of basic pay

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CRS-41
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
(including locality-based comparability payments).
(d)(1)(A) Payment of a bonus would be contingent
upon the employee entering into a service agreement
with NASA. (B) The service agreement would, at a
minimum, include (i) the required service period; (ii)
the method of payment, including a payment schedule;
which could include a lump-sum payment, installment
payments, or a combination thereof; (iii) the amount of
the bonus and the basis for calculating the amount; and
(iv) the conditions under which the agreement could be
terminated before the agreed-upon service period has
been completed, and the effect of the termination.
(d)(2) The employee’s service period would be
expressed as the number equal to the full years and
twelfth parts thereof, rounding the fractional part of a
month to the nearest twelfth part of a year. The service
period could not be less than 6 months and could not
exceed 4 years.
(d)(3) Notwithstanding (1), a service agreement is not
required if NASA pays a bonus in biweekly
installments and sets the installment payment at the full
bonus percentage rate established for the employee,
with no portion of the bonus deferred. In this case,
NASA would inform the employee in writing of any
decision to change the retention bonus payments. The
employee would continue to accrue entitlement to the
retention bonus through the end of the pay period in
which such written notice is provided.
(e) A bonus under this section could not be considered

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CRS-42
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
to be part of an employee’s basic pay.
(f) An employee would not be entitled to a retention
bonus under this section during a service period
previously established for that employee under 5
U.S.C. 5753, or the proposed Sec. 9804.
(g) Requires the administrator to submit a summary of
all bonuses paid under (b) and (c) to the appropriate
committees of Congress not later than February 28 of
each of the next 10 years and states what the summary
must include.
Note: Title I would prohibit waiver or modification of
5 U.S.C. Chapter 57 for Defense personnel.
New 5 U.S.C. 9806. Term Appointments
5 U.S.C. 3301 - Civil Service; generally
No similar provision; law stated that 5
(a) The administrator could authorize term
5 U.S.C. 3302 - Competitive service; rules
U.S.C. Chapter 33 could not be waived or
appointments within NASA under 5 U.S.C. Chapter
5 CFR Part 316 - Temporary and Term
modified.
33, Subchapter I, for a period of not less than one year
Employment
and not more than six years.
Authorizes term appointments for more than
(b) Notwithstanding 5 U.S.C. Chapter 33, or any other
one year, but not more than four years
provision of law relating to the examination,
(beyond four years could be authorized with
certification, and appointment of individuals in the
justification) where the need for an
competitive service, the administrator could convert an
employee’s services is not permanent.
employee serving under a term appointment to a
permanent appointment in the competitive service
within the administration without further competition.
These conditions would apply: (1) the individual was
appointed under open, competitive examination under
5 U.S.C. Chapter 33, Subchapter I; (2) the
announcement for the term appointment from which

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CRS-43
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
the conversion is made stated that there was potential
for subsequent conversion to a career-conditional or
career appointment; (3) the employee has completed at
least two years of current continuous service under a
term appointment in the competitive service; (4) the
employee’s performance under the term appointment
was at least fully successful or equivalent; and (5) the
position to which such employee is being converted
under this section is in the same occupational series,
the same geographic location, and provides no greater
promotion potential than the term position for which
the competitive examination was conducted.
(c) Notwithstanding 5 U.S.C. Chapter 33 or any other
provision of law relating to the examination,
certification, and appointment of individuals in the
competitive service, the administrator could convert an
employee serving under a term appointment to a
permanent appointment in the competitive service
within the administration through internal competitive
promotion procedures if the conditions under (b)(1)
through (4) are met.
(d) An employee converted under this section becomes
a career-conditional employee, unless the employee has
otherwise completed the service requirements for
career tenure.
(e) An employee converted to career or career-
conditional employment under this section acquires
competitive status upon conversion.
(f) Requires the administrator to submit to the

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CRS-44
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
appropriate committees of Congress, not later than
February 28 of each of the next 10 years, the total
number of term appointments and conversions.
Note: For Defense, see proposed new section 9904.
New 5 U.S.C. 9807. Pay authority for critical positions
5 U.S.C. 5377 - Pay authority for critical
No similar provision; law permits the new
(a) “Position” means (1) a position to which 5 U.S.C.
positions
personnel system to make changes to 5
Chapter 51 applies, including a Senior Executive
Authorizes OMB to establish critical pay
U.S.C. Chapter 53.
Service position; (2) an Executive Schedule position;
positions for positions at an extremely high
(3) a position established under 5 U.S.C. 3104; or (4) a
level and critical to agency missions; up to
senior-level position to which 5 U.S.C. 5376(a)(1)
800 may be established at any time.
applies.
Compensation cannot exceed Executive
(b) Authority under this section (1) could be exercised
Schedule level I without the President’s
only with respect to a position that is described as
approval.
addressing a critical need in the workforce plan, and
5 U.S.C. 9502 - Pay authority for critical
requires expertise of an extremely high level in a
positions (Internal Revenue Service)
scientific, technical, professional, or administrative
Authorizes critical pay positions.
field; (2) could be exercised only to the extent
Compensation cannot exceed the Vice
necessary to recruit or retain an individual
President’s salary.
exceptionally well qualified for the position; and (3)
5 U.S.C. 9503 - Streamlined critical pay
could be exercised only in retaining employees of the
authority (Internal Revenue Service)
administration or in appointing individuals who were
Secretary of the Treasury may establish
not employees of another federal agency as defined by
critical pay positions for positions at an
5 U.S.C. 5102(a)(1).
extremely high level and critical to the IRS
(c)(1) Notwithstanding 5 U.S.C. 5377, the
mission for a 10-year period. Appointments
administrator could fix the rate of basic pay for a
are limited to four years. Total
position in NASA in accordance with this section. The
compensation cannot exceed the Vice
administrator could not delegate this authority.
President’s salary.
(c)(2) The number of positions with pay fixed under

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CRS-45
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
this section could not exceed 10 at any time.
(d)(1) The rate of basic pay fixed under this section
could not be less than the rate of basic pay (including
locality-based comparability payments) which would
otherwise be payable for the position involved if this
section had never been enacted.
(d)(2) The annual rate of basic pay fixed under this
section could not exceed the per annum rate of salary
payable for the Vice President.
(d)(3) Notwithstanding any provision of 5 U.S.C. 5307,
in the case of an employee who, during any calendar
year, is receiving pay at a rate fixed under this section,
no allowance, differential, bonus, award, or similar
cash payment could be paid to such employee if, or to
the extent that, when added to basic pay paid or
payable to such employee (for service performed in
such calendar year as an employee in the executive
branch or as an employee outside the executive branch
to whom 5 U.S.C. Chapter 51 applies), such payment
would cause the total to exceed the Vice President’s
salary.
(e) Requires the administrator to submit to the
appropriate committees of Congress, not later than
February 28 of each of the next 10 years, the number of
positions for which the rate of basic pay was either
fixed or terminated under this section.
Note: Title I would permit the new personnel system to
make changes to 5 U.S.C. Chapter 53 for Defense
personnel.

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CRS-46
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
New 5 U.S.C. 9808. Assignments of
5 U.S.C. Chapter 33, Subchapter VI -
No similar provision; law stated that 5
intergovernmental personnel
Assignments to and from States (5 U.S.C.
U.S.C. Chapter 33 could not be waived or
For purposes of applying the third sentence of 5 U.S.C.
3371-3376)
modified.
3372(a) (relating to the authority of the head of a
5 U.S.C. 3372 - General provisions
federal agency to extend the period of an employee’s
assignment to or from a State or local government,
institution of higher education, or other organization),
the administrator could, with the concurrence of the
employee and the government or organization
concerned, take any action which would be allowable if
such sentence had been amended by striking “two” and
inserting “four.”
Note: Title I would permit the new personnel system to
make changes to 5 certain sections of 5 U.S.C. Chapter
33 for Defense personnel.
New 5 U.S.C. 9809. Enhanced demonstration project
5 U.S.C. Chapter 47 - Personnel research
No similar provision; law states that 5
authority
programs and demonstration projects
U.S.C. Chapter 47 cannot be waived or
When conducting a demonstration project at NASA, 5
5 U.S.C. 4703(d)(1)(A) limits size of
modified.
U.S.C. 4703(d)(1)(A), could be applied by substituting
demonstration projects to not more than
“such number of individuals as determined by the
5,000 individuals.
administrator” for “not more than 5,000 individuals.”
5 U.S.C. 9507 - Streamlined demonstration
Note: Title I would prohibit waiver or modification of
project authority (Internal Revenue Service)
5 U.S.C. Chapter 47 for Defense personnel.
5 U.S.C. 4703(d) does not apply to IRS
demonstration projects.
New 5 U.S.C. 9810. Voluntary separation incentive
With the approval of the Office of Personnel
No similar provisions
payments
Management, a federal agency may offer
Would allow the Administrator to offer voluntary
voluntary separation incentive payments of

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CRS-47
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
separation payments of up to 50% of annual basic pay
up to $25,000 to employees who retire or
to no more than 10 employees each year (unless
resign. The full amount must be repaid if
payments to a larger number are approved by the
individual is re-employed by the federal
Office of Management & Budget.)
government within five years.
New 5 U.S.C. 9811. Limitations relating to bonuses
No similar provision
No similar provision; law states that 5
(a) Of the total amount in bonuses awarded under the
5 U.S.C. 5753 - Recruitment and relocation
U.S.C. Chapter 57 provisions cannot be
proposed new sections 9804 and 9805, respectively, in
bonuses
waived or modified.
any year, not to exceed 15 percent of any such total
5 U.S.C. 5754 - Retention allowances
amount could be awarded to supervisors (within the
5 U.S.C. 9504 - Recruitment, retention,
meaning of 5 U.S.C. 7103(a)(10)).
relocation incentives, and relocation
(b) A separate appropriations account would be
expenses (Internal Revenue Service)
maintained for such bonuses.
New Subchapter II — Personnel
42 U.S.C. 2472 - National Aeronautics and
No similar provision
Provisions.
Space Administration (defined)
New 5 U.S.C. 9831. Definitions
42 U.S.C. 2466b - Administrator (defined)
(1) “Administration” means the National Aeronautics
and Space Administration (NASA);
(2) “Administrator” means the administrator of NASA.
New 5 U.S.C. 9832. Defines “detail” and states
P.L. 107-347, 12/17/02, 116 Stat. 2923, Sec.
No similar provision
employees eligible. Assignments would be for a period
209(c) - Federal information technology
of between six months and one year, and could be
workforce development
extended in three-month increments for up to one
Authorizes exchanges of employees from
additional year. A NASA employee generally would
private sector to government and from
have to agree to serve in NASA after completion of an
government to private sector in information
exchange for the same amount of time as the exchange.
technology management. Individuals
A NASA employee would be deemed to be on detail to
eligible to participate must be at pay grade

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CRS-48
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
a regular work assignment in NASA. Reimbursements
GS-11 (or equivalent) or above. Exchanges
by the private sector entity could be made to NASA.
may be for a period between three months
A private sector employee assigned to NASA is
and one year and may be extended in
deemed to be on detail to NASA. Laws and
increments of three months for one
regulations which cover the private sector employee
additional year.
while on detail are stated. Policies in the case of a
private sector employee’s disability or death while
5 U.S.C. Chapter 33, Subchapter VI -
assigned to NASA are detailed. Requires the
Assignments to and from States (5 U.S.C.
administrator, not later than February 28 of each year,
3371-3376)
to report to the appropriate committees of Congress on
the operation of the section.
New 5 U.S.C. 9833. Science and technology
No similar provision
No similar provision
scholarship program
Would authorize the NASA administrator to provide
scholarships to individuals at accredited institutions of
higher education who are pursuing academic programs
appropriate for careers in professions needed by
NASA.
New 5 U.S.C. 9834. Distinguished scholar
5 U.S.C. 3104 - Employment of specially
No similar provision; law states that 5
appointment authority
qualified scientific and professional
U.S.C. Chapter 31 cannot be waived or
(1) “Professional position” means a position that is
personnel
modified.
classified to an occupational series identified by OPM
Authorizes OPM director to establish
as a position that (A) requires education and training in
scientific or professional positions which
the principles, concepts, and theories of the occupation
require services of specially qualified
that typically can be gained only through completion of
personnel and which may be established
a specified curriculum at a recognized college or
outside the General Schedule.
university; and (B) is covered by the Group Coverage

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CRS-49
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
Qualification Standard for Professional and Scientific
Positions; and (2) “research position” means a position
in a professional series that primarily involves
scientific inquiry or investigation, or research-type
exploratory development of a creative or scientific
nature, where the knowledge required to perform the
work successfully is acquired typically and primarily
through graduate study. (b) NASA could appoint,
without regard to 5 U.S.C. 3304(b) and 3309 through
3318, candidates directly to General Schedule
professional positions in NASA for which public notice
has been given, if (1) with respect to a GS-7 position,
the individual (A) received, from an accredited
institution authorized to grant baccalaureate degrees
(BAs), a BA in a filed of study for which possession of
that degree in conjunction with academic achievements
meets the qualification standards as prescribed by OPM
for the position to which the individual is being
appointed; and (B) achieved a cumulative grade point
average (GPA) of 3.0 or higher on a 4.0 scale and a
GPA of 3.5 or higher for courses in the field of study
required to qualify for the position; (2)-(4) with respect
to a GS-9, GS-11, GS-12 position, the individual (A)
received, from an accredited institution authorized to
grant graduate degrees, a graduate degree in a field of
study for which possession of that degree meets the
qualification standards at this grade level as prescribed
by OPM for the position to which the individual is
being appointed; and (B) achieved a cumulative GPA

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CRS-50
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
of 3.5 or higher on a 4.0 scale in graduate coursework
in the field of study required for the position. Veterans
preference procedures would apply when selecting
candidates. Preference eligibles who meet the criteria
for distinguished scholar appointments would be
considered ahead of nonpreference eligibles. (d) An
appointment made under this authority would be a
career-conditional appointment in the competitive civil
service.
New 5 U.S.C. 9835. Travel and transportation
5 U.S.C. Chapter 57, Subchapter II - Travel
No similar provision; law stated that 5
expenses of certain new appointees
and transportation expenses; new appointees, U.S.C. Chapter 57 could not be waived or
(a) “Appointee” means (1) a person newly appointed or
student trainees, and transferred employees
modified.
reinstated to federal service to NASA to (A) a career or
career-conditional appointment; (B) a term
5 U.S.C. 5724 - Travel and transportation
appointment; (C) an excepted service appointment that
expenses of employees transferred;
provides for noncompetitive conversion to a career or
advancement of funds; reimbursement on
career-conditional appointment; (D) a career or limited
commuted basis; 5 U.S.C. 5724a -
term Senior Executive Service appointment; (E) an
Relocation expenses of employees
appointment made under section 203(c)(2)(A) of the
transferred or reemployed; 5 U.S.C. 5724b -
National Aeronautics and Space Act of 1958; (F) an
Taxes on reimbursements for travel,
appointment to a position established under 5 U.S.C.
transportation, and relocation expenses of
3104; or (G) an appointment to a position established
employees transferred; 5 U.S.C. 5724c -
under 5 U.S.C. 5108; or (2) a student trainee who, upon
Relocation services
completion of academic work, is converted to an
appointment in NASA that is identified in (1) in
accordance with an appropriate authority. (b) The
administrator could pay the travel, transportation, and
relocation expenses of a new appointee to the same

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CRS-51
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
extent, in the same manner, and subject to the same
conditions as the payment of such expenses under 5
U.S.C. 5724, 5724a, 5724b, and 5724c to an employee
transferred in the interests of the U.S. Government.
(c) Requires the administrator to submit to the
appropriate committees of Congress, not later than
February 28 of each of the next 10 years, the average
and highest payments made under this section.
Note: Title I would permit changes to certain sections
of 5 U.S.C. Chapter 31 for Defense civilian personnel.
New 5 U.S.C. 9836. Annual leave enhancements
5 U.S.C. 6303 - Annual leave accrual
No similar provision; law stated that 5
(a)(1) “Newly appointed employee” means an
5 U.S.C. 6304 - Annual leave accumulation
U.S.C. Chapter 63 could not be waived or
individual who is first appointed (i) regardless of
Only employees who have at least 15 years
modified.
tenure, as an employee of the federal government; or
of service accrue one day of annual leave for
(ii) as an employee of the federal government
each full biweekly pay period.
following a break in service of at least 90 days after
that individual’s last period of federal employment,
other than (I) employment under the Student
Educational Employment Program administered by
OPM; (II) employment as a law clerk trainee; (III)
employment under a short-term temporary appointing
authority while a student during periods of vacation
from the educational institution at which the student is
enrolled; (IV) employment under a provisional
appointment if the new appointment is permanent and
immediately follows the provisional appointment; or
(V) employment under a temporary appointment that is

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CRS-52
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
neither full-time nor the individual’s principal
employment. (B) “period of qualified non-federal
service” means any period of service performed by an
individual that (i) was performed in a position the
duties of which were directly related to the duties of the
position in NASA to which that individual will fill as a
newly appointed employee; and (ii) except for this
section would not otherwise be service performed by
an employee for purposes of 5 U.S.C. 6303; and (C)
“directly related to the duties of the position” means
duties and responsibilities in the same line of work
which require similar qualifications. (2)(A) For
purposes of 5 U.S.C. 6303, the administrator could
deem a period of qualified non-federal service
performed by a newly appointed employee to be a
period of service of equal length performed as an
employee. (B) A period deemed by the administrator
under (A) would continue to apply to the employee
during (i) the period of federal service in which the
deeming is made; and (ii) any subsequent period of
federal service. 3(A) Notwithstanding 5 U.S.C.
6303(a), the annual leave accrual rate for a NASA
employee in a position paid under 5 U.S.C. 5376 or
5383, or for an employee in an equivalent category
whose rate of basic pay is greater than the rate payable
at GS-15, step 10, would be one day for each full
biweekly pay period. (B) The accrual rate established
under this paragraph would continue to apply to the
employee during (i) the period of federal service in

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CRS-53
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
which such accrual rate first applies; and (ii) any
subsequent period of federal service.
Note: Title I would prohibit waiver or modification of
5 U.S.C. Chapter 63 for Defense civilian personnel.
New 5 U.S.C. 9837. Limited appointment to Senior
5 U.S.C. 3132.(a)(8). Only Senior Executive
No similar provision
Executive Service positions.
Service (SES) career appointees may fill
(a)(1)(A)-(B). A career reserved position may be filled
career reserved positions.
by a career appointee, a limited emergency appointee,
or a limited term appointee. Either type of limited
appointee would have to meet certain conditions and
the appointment would have to be approved in advance
by the Office of Personnel Management (OPM).
New 5 U.S.C. 9837(a)(3) A limited term appointee is
5 U.S.C. 3132(a)(5) A limited term
No similar provision
an individual appointed to an SES position to meet a
appointee is an individual appointed under a
bona fide temporary need, as determined by the
nonrenewable appointment to an SES
Administrator.
position the duties of which will expire at the
end of the term. The appointment may not
exceed three years.
New 5 U.S.C. 9837(a)(2) No change from current law.
5 U.S.C. 3132(a)(8) A limited emergency
No similar provision
appointee is an individual appointed under a
nonrenewable appointment to an SES
position established to meet a bona fide,
unanticipated, urgent need. The appointment
may not exceed 18 months.
New 5 U.S.C. 9837(b)
No comparable language because limited
No similar provision
The number of career reserved positions which are
appointees are prohibited from filling career

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CRS-54
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
filled by limited emergency appointees and limited
reserved positions.
term appointees may not exceed 10% of the total
number of SES positions allocated to NASA.
New 5 U.S.C. 9837(c) The administrator may appoint
Sec. 3394. Noncareer and limited
No similar provision
individuals as limited term appointees for four years or
appointments.
less to a position the duties of which will expire at the
(b) Agencies may appoint limited term
end of the term, or one year or less to a position that
appointees and limited emergency appointees
has continuing duties. The administrator may
only with prior approval of the exercise of
authorize extensions of up to two years (for positions
such authority by OPM.
whose duties will expire) and one year (for positions
whose duties are continuing).
New 5 U.S.C. 9837(d) Limited term appointees, who
5 U.S.C. 3594. Guaranteed placement in
No similar provision
previously were employed in career or career-
other personnel systems. This section, which
conditional appointments outside the SES, shall have
guarantees, under certain circumstances,
reemployment rights. OPM shall establish the
placement in other personnel systems applies
conditions and requirements for reemployment and
only to SES career appointees.
shall have the authority to direct placement in any
agency.
New 5 U.S.C. 9837(e)-(f)
5 U.S.C. 3395. Reassignment and transfer
No similar provision
A limited term appointee may be reassigned to another
within the Senior Executive Service
SES position in NASA, the duties of which will expire
(b)(2)-(c) A limited term appointee may be
at the end of a term of four years or less. A limited
reassigned to another SES position in the
term appointee may be reassigned to another
same agency the duties of which will expire
continuing SES position in NASA, but the appointee
at the end of a term of three years or less. An
may not serve in one or more positions in NASA under
appointee may not serve in one or more
such appointment in excess of one year. In rare
positions under this appointment for more

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CRS-55
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
circumstances, the Administrator may approve an
than three years. A limited term appointee
extension of no more than one year. A limited term
may not be appointed to, or continue to hold,
appointee may not serve more than seven years in any
a position under such an appointment if,
combination of limited appointments.
within the preceding 48 months, the
individual has served more than 36 months,
in the aggregate, under any combination of
such types of appointment.
New 5 U.S.C. 9837(g)
5 U.S.C. 5384. Performance awards in the
No similar provision
The administrator may authorize performance awards
senior executive service
to limited term appointees in the same amounts and in
A career appointee may receive performance
the same manner as career appointees.
awards. The amount shall not be less than
5% nor more than 20% of the career
appointee’s basic rate of pay. The agency
head shall determine the amount of
performance awards.
New 5 U.S.C. 9838, Superior qualifications pay
5 U.S.C. 5377 - Pay authority for critical
No similar provision; law permits the new
(a) “Employee” means an employee as defined under 5
positions
personnel system to make changes to 5
U.S.C. 2105 who is employed by NASA. (b)
Authorizes OMB to establish critical pay
U.S.C. Chapter 53.
Notwithstanding 5 U.S.C. 5334, the administrator
positions for positions at an extremely high
could set the pay of an employee paid under the
level and critical to agency missions; up to
General Schedule at any step within the pay range for
800 may be established at any time.
the grade of the position, based on the superior
Compensation cannot exceed Executive
qualifications of the employee, or the special need of
Schedule level I without the President’s
NASA. (c) If an exercise of the authority under this
approval.
section relates to a current employee selected for
5 U.S.C. 9502 - Pay authority for critical
another position within NASA, a determination would
positions (Internal Revenue Service)
be made that the employee’s contribution in the new
Authorizes critical pay positions.

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CRS-56
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
position will exceed that in the former position, before
Compensation cannot exceed the Vice
setting pay under this section. (d) Pay as set under this
President’s salary.
section is basic pay for such purposes as pay set under
5 U.S.C. 9503 - Streamlined critical pay
5 U.S.C. 5334. (e) If the employee serves for at least
authority (Internal Revenue Service)
one year in the position for which the pay
Secretary of the Treasury may establish
determination under this section was made, or a
critical pay positions for positions at an
successor position, the pay earned under such position
extremely high level and critical to the IRS
could be used in succeeding actions to set pay under 5
mission for a 10-year period. Appointments
U.S.C. Chapter 53. (f) The administrator could waive
are limited to four years. Total
the restrictions in (e), based on criteria established in
compensation cannot exceed the Vice
the plan required under (g). (g) Before setting any
President’s salary.
employee’s pay under this section, the administrator
would submit a plan to OPM, that includes (1) criteria
for approval of actions to set pay under this section; (2)
the level of approval required to set pay under this
section; (3) all types of actions and positions to be
covered; (4) the relationship between the exercise of
authority under this section and the use of other pay
incentives; and (5) a process to evaluate the
effectiveness of this section.
Note: Title I would permit changes to 5 U.S.C. Chapter
53 for Defense civilian personnel.
Sec. 311(b) Technical and Conforming Amendments
Sec. 311(b)(1) Notes new Title 5 Chapter 98.

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CRS-57
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
Sec. 311(b)(2) Compensation for certain excepted
42 U.S.C. 2473 - Functions of administration No similar provision
personnel
42 U.S.C. 2473(c)(2)(A) would be amended by striking
GS-18 and inserting Executive Schedule (EX) level III.
Sec. 311(b)(3) Compensation clarification
18 U.S.C. 209 - Salary of government
No similar provision
18 U.S.C. 209, as amended, would be amended by
officials and employees payable only by
adding at the end: (h) This section would not prohibit
United States
an employee of a private sector entity, while assigned
to NASA under the proposed Sec. 9832, from
continuing to receive pay and benefits from that entity
in accordance with Sec. 9832.
Sec. 311(b)(4) through (b)(7).
No similar provision
Continued TSP eligibility;
5 U.S.C. 8432 - Contributions (Thrift
Savings Plan)
Ethics provisions;
18 U.S.C. 207(c)(A)(v) and 18 U.S.C 1905
18 U.S.C. 207(l)
Contract advice; and
5 U.S.C. 3111(D), 7353(B)(4)
Title 5 conforming amendments.

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CRS-58
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
Title IV — Human Capital Performance Fund
H.R. 1588, Sec. 1111. Incorporated with no substantive changes
Sec. 401. Human Capital Performance Fund
5 U.S.C. Chapter 54 which had provided for
No similar provision; law stated that 5
(a) Would amend 5 U.S.C. Part III, Subpart D by
an earlier system of merit pay was repealed
U.S.C. Chapter 45 could not be waived or
adding a New Title 5, Chapter 54 - Human
by P.L. 103-89, Sec. 3(a)(1), Sept. 30, 1993
modified
Capital Performance Fund
(107 Stat. 981). Termination of the merit
Note: Title I would prohibit modifications or changes
pay system was effective Nov. 1, 1993.
to 5 U.S.C. Chapter 45 for Defense civilian personnel.
5 U.S.C. Chapter 45 - Incentive awards
(includes 5 U.S.C.4505a - Performance-
based cash awards)
New 5 U.S.C. 5401. Purpose
No similar provision
No similar provision
The purpose of the chapter would be to promote,
through the creation of a Human Capital Performance
Fund, greater performance in the federal government.
Monies from the Fund would be used to reward
agencies’ highest performing and most valuable
employees. This Fund would offer federal managers a
new tool to recognize employee performance that is
critical to the achievement of agency missions.
New 5 U.S.C. 5402. Definitions
No similar provision
No similar provision
(1) “Agency” would mean an executive agency under 5
U.S.C. 105, but does not include the General
Accounting Office; (2) “Employee” would include (A)
an individual paid under a statutory pay system defined
in 5 U.S.C. 5302(1); (B) a prevailing rate employee, as
defined in 5 U.S.C. 5342(a)(2); and (C) a category of

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CRS-59
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
employees included by the Office of Personnel
Management (OPM) following the review of an agency
plan under 5 U.S.C. 5403(b)(1). It would not include
(i) an individual paid at an annual rate of basic pay for
a level of the Executive Schedule, or at a rate provided
for one of those levels under another provision of law;
(ii) a member of the Senior Executive Service (SES);
(iii) an administrative law judge; (iv) a contract appeals
board member; (v) an administrative appeals judge;
and (vi) an individual in a position which is excepted
from the competitive service because of its
confidential, policy-determining, policy-making, or
policy-advocating character; and (3) “Office” would
mean the Office of Personnel Management.
New 5 U.S.C. 5403. Human Capital Performance
No similar provision
No similar provision
Fund
(a) There is hereby established the Human Capital
Performance Fund, to be administered by OPM.
(b)(1)(A) An agency would submit a plan as described
in Sec. 5406 to be eligible for consideration by OPM
for an allocation. An allocation would be made only
upon approval by OPM of an agency’s plan. (B)(i)
After the reduction for training required under Sec.
5408, 90 percent of the remaining amount appropriated
to the Fund could be allocated by OPM to the agencies.
Of the amount to be allocated, an agency’s pro rata
distribution could not exceed its pro rata share of
executive branch payroll. (ii) If OPM does not allocate

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CRS-60
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
an agency’s full pro rata share, the undistributed
amount remaining from that share would become
available for distribution to other agencies as provided
in (C). (C)(i) After the reduction for training under
Sec. 5408, 10 percent of the remaining amount
appropriated to the Fund, as well as the amount of the
pro rata share not distributed because of an agency’s
failure to submit a satisfactory plan, would be allocated
among agencies with exceptionally high-quality plans.
(ii) An agency with an exceptionally high-quality plan
would be eligible to receive an additional distribution
in addition to its full pro rata distribution. (2) Each
agency is required to provide to OPM such payroll
information as OPM specifies necessary to determine
the executive branch payroll.
New 5 U.S.C. 5404. Human capital performance
No similar provision
No similar provision
payments
(a)(1) Notwithstanding any other provision of law,
OPM could authorize an agency to provide human
capital performance payments to individual employees
based on exceptional performance contributing to the
achievement of the agency mission. (2) The number of
employees in an agency receiving payments from the
Fund, in any year, would not be more than the number
equal to 15 percent of the agency’s average total
civilian full- and part-time permanent employment for
the previous fiscal year. (b)(1) A human capital
performance payment provided to an individual

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CRS-61
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
employee from the Fund, in any year, would not
exceed 10 percent of the employee’s rate of basic pay.
(2) The aggregate of an employee’s rate of basic pay,
adjusted by any locality-based comparability payments,
and human capital performance pay, as defined by
regulation, could not exceed the rate of basic pay for
Executive Schedule level IV in any year. (3) Any
human capital performance payment provided to an
employee from the Fund is in addition to any annual
pay adjustment and any locality-based comparability
payment that may apply. (c) No monies from the
Human Capital Performance Fund could be used to pay
for a new position, for other performance-related
payments, or for recruitment or retention incentives
paid under 5 U.S.C. 5753 and 5754. (d)(1) An agency
could finance initial human capital performance
payments using monies from the Human Capital
Performance Fund, as available. (2) In subsequent
years, continuation of previously awarded human
capital performance payments would be financed from
other agency funds available for salaries and expenses
New 5 U.S.C. 5405. Regulations
No similar provision
No similar provision
OPM would issue such regulations as it determines to
be necessary to administer the chapter, including the
administration of the Fund. OPM’s regulations would
include criteria governing (1) an agency plan under 5
U.S.C. 5406; (2) the allocation of monies from the
Fund to agencies; (3) the nature, extent, duration, and

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CRS-62
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
adjustment of, and approval processes for, payments to
individual employees under this chapter; (4) the
relationship to this chapter of agency performance
management systems; (5) training of supervisors,
managers, and other individuals involved in the process
of making performance distinctions; and (6) the
circumstances under which funds could be allocated by
OPM to an agency in amounts below or in excess of
the agency’s pro rata share.
Sec. 5406. Agency plan
No similar provision
No similar provision
To be eligible for consideration by OPM for an
allocation under this section, an agency would be
required to develop a plan. States the requirements for
the plan.
(b) OPM, in consultation with the Chief Human
Capital Officers Council, would review and approve an
agency’s plan.
(c) Requires Chief Human Capital Officers Council
evaluation.
New 5 U.S.C. 5407. Nature of payment
No similar provision
No similar provision
Any payment to an employee under this section would
be part of the employee’s basic pay for the purposes of
Subchapter III of 5 U.S.C. Chapter 83 and 5 U.S.C.
Chapters 84 and 87, and for such other purposes (other
than Chapter 75) as OPM would determine by
regulation.

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CRS-63
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
New 5 U.S.C. 5408. Appropriations
No similar provision
No similar provision
There is authorized to be appropriated $500 million for
FY 2004, and, for each subsequent fiscal year, such
sums as may be necessary to carry out the provisions of
the proposed Chapter 54. In the first year of
implementation, up to 10 percent of the amount
appropriated to the Fund would be available to
participating agencies to train supervisors, managers,
and other individuals involved in the appraisal process
on using performance management systems to make
meaningful distinctions in employee performance and
on the use of the Fund.

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CRS-64
H.R. 1836, the Civil Service and National Security
Current Law
Homeland Security Act of 2002
Personnel Improvement Act
P.L. 107-296
Title V — Miscellaneous
Sec. 501. Prohibition of use of quotas
No similar language in permanent statute.
No similar language
(a) This provision would prohibit the Office of
Sec. 647 of P.L. 108-7, the Consolidated
Management and Budget (OMB) from establishing,
Appropriations Act, FY2003, states: “[N]one
applying, or enforcing any numerical goal, target, or
of the funds made available in this Act may
quota for competing or converting, under OMB
be used by an agency of the executive branch
Circular A-76, the work of federal employees, unless
to establish, apply, or enforce any numerical
the goal, target, or quota is based upon considered
goal, target, or quota for subjecting the
research and sound analysis.
employees of the executive agency to public-
(b) The prohibition shall not affect the implementation
private competitions or for converting such
of the Government Performance and Results Act
employees or the work performed by such
(GPRA) of 1993 or prevent any agency from
employees to private contractor performance
conducting public-private competitions or carrying out
under the Office of Management and Budget
direct conversions.
Circular A-76 or any other administrative
regulation, directive, or policy unless the
goal, target, or quota is based on considered
research and sound analysis of past activities
and is consistent with the stated mission of
the executive agency.”

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CRS-65
Personnel Provisions Unique to Proposed Defense
Transformation for the 21st Century Act
Although Title I of H.R. 1836, as introduced, contains most of the provisions
of Sec. 101 of the proposed Defense Transformation for the 21st Century, there are
some personnel-related provisions in the transformation proposal which were
included.9
Contracting for Personal Services
The transformation proposal would create a new section in Title 5, U.S. Code
(proposed 5 U.S.C. 9903) relating to contracting for personal services —
! New 5 U.S.C. 9903(a) — Outside the United States. Funds
available to the Department of Defense would be available to
contract with individuals for services to be performed outside the
United States as determined by the secretary to be necessary and
appropriate. These contractors would not be considered employees
of the United States government for purposes of any law
administered by OPM or under any human resources management
system established pursuant to the new Chapter 99 of Title 5. These
contracts could be negotiated, their terms prescribed, and the work
could be performed where necessary, without regard to statutory
provisions that relate to negotiating, making, and performing
contracts and performing work in the United States. Current law
— See, for example, U.S. Code Title 41, Chapter 6 — Service
Contract Labor Standards. Homeland — Sec. 835 of P.L. 107-296
is related in that it addresses the issue of prohibiting contracts with
corporate expatriates.
! New 5 U.S.C. 9903(b) - National Security Missions.
Notwithstanding any other provision of law, sums made available to
DOD by appropriation or otherwise could be expended as
determined by the secretary to be necessary to carry out the national
security mission of DOD for personal services contracts, including
personal service without regard to limitations on types of persons to
be employed. Current law — See, for example, 10 U.S.C. 2393 -
Prohibition against doing business with certain offerors or
contractors, 10 U.S.C. 2408 - Prohibition on persons convicted of
defense contract related felonies and related criminal penalty on
defense contractors, and 50 U.S.C. 403j - Central Intelligence
9 The reader is encouraged to check CRS Report RL31805, Authorization and
Appropriations for FY2004: Defense, by Amy Belasco and Stephen Daggett, for a more
complete discussion of H.R. 1588. Also, the personnel provisions as proposed by the
Department of Defense compared with current law are set out in CRS Report RL31916,
Defense Department Original Transformation Proposal: Compared to Existing Law, by
Robert L. Goldich, Gary J. Pagliano, Barbara L. Schwemle, and Thomas J. Nicola.

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CRS-66
Agency; appropriations; expenditures. See also 50 U.S.C. 403j -
Central Intelligence Agency; appropriations; expenditures, which
authorizes sums made available to the CIA by appropriation or
otherwise to be expended, among other things, for personal services,
including personal services without regard to limitations on types of
persons to be employed. Homeland — There are no similar
provisions.
! New 5 U.S.C. 9903(c) - Experts and Consultants. - Subject to
paragraphs (2) and (3) and notwithstanding provisions of 10 U.S.C.
129b, the secretary would be authorized to (A) procure by contract
the services of experts and consultants (or organizations of them),
who may provide such services with or without compensation as
determined by the secretary, and may perform such duties as the
secretary may prescribe without being deemed to be employees of
DOD except, at the discretion of the secretary, for the purposes of (i)
the Ethics in Government Act of 1978; (ii) Chapter 73 of Title 5
(Suitability, Security, and Conduct); and (iii) section 27 of the Office
of Federal Procurement Policy Act; and (B) pay travel expenses of
individuals, including transportation and per diem in lieu of
subsistence while such individuals travel from their homes or places
of business to official duty stations and return, as may be authorized
by law. (2) To procure the services of experts or consultants (or an
organization of them), the secretary would be required to determine
that (A) such procurement is advantageous to the United States; and
(B) these services cannot be provided adequately by DOD; (3)
[Note: The text on which this report is based did not have a
subsection (3) of 9903(c), only subsections (1) and (2).] Current
law — 5 U.S.C. 3109 - Employment of experts and consultants
generally limits temporary contract services to one year and pay for
temporary and intermittent contract services to the daily equivalent
rate of pay to the highest allowed in 5 U.S.C. 5332 (the General
Schedule).10 U.S.C. 129b - Experts and Consultants; authority to
procure such services generally provides that authority should be
exercised in accordance with 5 U.S.C. 3109. Homeland — Sec.
831(c) of P.L. 107-296 - Procurement of Temporary and Intermittent
Services (in research and development projects) authorizes
procurement of temporary and intermittent services of experts and
consultants in accordance with 5 U.S.C. 3109, without regard to pay
limitation in section 3109. Sec. 832 - Personal services. Authorizes
procurement of temporary or intermittent services of experts or
consultants in accordance with 5 U.S.C. 3109, but, when necessary
to meet an urgent homeland security needs, without regard to the
pay limitations in section 3109.
! New 5 U.S.C. 9903(d) - Implementation. Implementation of this
section would be at the secretary’s sole, exclusive, and unreviewable
discretion. There are no similar provisions in law.

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CRS-67
Contracting for Security Guards and Firefighting Services
Title II of the DOD transformation proposal would relate to acquisition policy.
Subtitle B would affect the contracting process. Specifically, Sec. 211, Contracting
of security guards and firefighting services, would repeal the provisions of 10 U.S.C.
2465. Currently, 10 U.S.C. 2465 places a prohibition on contracts for performance
of firefighting or security-guard functions and generally denies obligation or
expenditure of DOD appropriated funds for firefighting and security guard functions
at any military installation or facility. There were no similar provisions in the
Homeland Security Act of 2002.
Administrative Transformation
The DOD transformation proposal contains some provisions which are directed
to the issue of organization within the department and administrative management.
However, as the comparison below shows, the proposal could have significant effects
on personnel management policy.

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CRS-68
DOD Transformation
Current Law
Homeland Security Act
for the 21st Century Act
of 2002 — P.L. 107-296
Title IV — ADMINISTRATIVE TRANSFORMATION
Subtitle A — Transformation of DOD Organization
Sec. 401. Reorganization 10 U.S.C. 125 -
Sec. 872 -
Within the Department of Functions, powers, and
Reorganization of P.L.
Defense. Subsections (b) duties; transfer,
107- 296 authorizes the
and (c) of 10 U.S.C. 125
reassignment,
Secretary to allocate or
would redesignated as
consolidation, or
reallocate functions
subsections (c) and (d)
abolition restricts the
among officers and
and a new section (b)
power of the secretary,
establish, consolidate,
would be added,
except when determined
alter, or discontinue
providing that,
by the president to be
organizational units but
“Notwithstanding any
necessary because of
only pursuant to the
provision of this title,
hostilities or an
President’s
after the expiration of 60
imminent threat thereof,
reorganization plan in
days after providing
to transfer, reassign,
Sec. 1502(b) of P.L.
notice of such action to
consolidate, or abolish a
107-296 or after
Congress, the Secretary
function, power, or duty
expiration of 60 days
of Defense, subject to
vested in DOD by law.
after notifying
direction of the President,
appropriate
would be authorized
congressional
substantially to transfer,
committees. This
reassign, consolidate,
authority does not
reorganize, or abolish a
extend to abolishing any
function, power,
agency, entity,
organization, position, or
organizational unit,
duty vested in the Office
program, or function
of the Secretary of
established or required
Defense, or an officer,
to be maintained by the
official, or agency
P.L. 107-108 or other
thereof.”
statute.
Sec. 402. Reassignment
10 U.S.C. 143 - Office
No similar provision
of Personnel Serving in
of the Secretary of
the Office of the
Defense (OSD)
Secretary of Defense.
personnel establishes a
Section 143 of Title 10,
permanent limitation on
U.S.C., would be
OSD military and
repealed.
civilian personnel,
defines personnel, and
limits reassignment of
functions to evade the
personnel limitation

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CRS-69
DOD Transformation
Current Law
Homeland Security Act
for the 21st Century Act
of 2002 — P.L. 107-296
Sec. 403. Appointments
5 U.S.C. 3326 -
No similar provision
of Retired Members of
Appointments of retired
the Armed Forces to
members of the armed
Positions in the
forces to positions in the
Department of Defense.
Department of Defense.
Section 3326 of title 5,
A retired armed forces
U.S.C., would be
member may not be
repealed.
appointed to a civil
service position in DOD
within 180 days
immediately following
retirement unless the
secretary concerned
authorizes it, the
minimum rate of basic
pay for the position has
been increased under 5
U.S.C. 5305, or a state
of national emergency
exists.
Sec. 404 - Transfer of
No similar provision
Department of Defense
with respect to
Personnel Security
transferring security
Investigative Functions
investigative functions,
and Defense Personnel
but see below.
Performing Those
Functions grants the
Sec. 841(b) of P.L. 107-
secretary discretion to
296 - Effect on
transfer to OPM
Personnel, provides that
discretion to accept
(1) generally the transfer
personnel security
to the Department of
investigation functions
Homeland Security of
currently performed by
full-time and part-time
DOD’s Defense Security
employees holding
Service and, if OPM
permanent positions
accepts those functions, it
shall not cause them to
must accept the
5 U.S.C. 3503 - Transfer
be separated or reduced
employees performing
of function provides that
in pay for 1 year after
those functions and their
when a function is
transfer; (2) any person
supervisors and may
transferred from one
who, on the day
accept support staff and
agency to another or
preceding transfer to the
higher level supervisors.
when one agency is
Department, held an
Transferred personnel
replaced by another,
Executive Level position
would be protected from
each competing
and who, without a
separation or reduction in employee must be
break in service, is
grade of compensation
transferred before the
appointed to a DHS

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CRS-70
DOD Transformation
Current Law
Homeland Security Act
for the 21st Century Act
of 2002 — P.L. 107-296
for one year after transfer receiving agency may
position with
date. Any transfer for
make an appointment
comparable duties
this purpose would be
from another source.
continues to be
considered a transfer of
compensated in the new
function under 5 U.S.C.
position at not less than
3503.
the rate provided for
such position for the
duration of service in the
new position; and (3)
that any exercise of
authority under chapter
97 of title 5 must
conform with the
requirements of Sec.
841(b).
Sec. 405. Conversions of
No similar provision
Commercial Activities.
(a) Section 2461(b)(3)(A) 10 U.S.C. 2461 -
of Title 10, U.S.C.,
Commercial or
would be amended by (1) industrial type
striking “of the cost”; (2)
functions; required
striking “savings” and
studies and reports of
inserting “best value”; (3) savings to be achieved
redesignating clause (iii)
before converting to
as (iv); and (4) inserting
contractor performance
after (ii) the following
new clause (iii) “Benefits Section 2461(b)(3)(A)
in addition to price that
states that:
warrant performance of
(3) An analysis of
the function by a source
commercial or industrial
at a cost higher than that
type function for
of performance by
possible change to
Department of Defense
performance by the
civilian employees.”
private sector shall
include the following:
(A) An examination of
the cost of performance
of the function by
Department of Defense
civilian employees and
by one or more private
contractors to
demonstrate whether
change to performance
by the private sector will

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CRS-71
DOD Transformation
Current Law
Homeland Security Act
for the 21st Century Act
of 2002 — P.L. 107-296
result in savings to the
government over the life
of the contract,
including in the
examination the
following:
(i) The cost to the
government, estimated
by the Secretary of
Defense (based on
offers received), for
performance of the
function by the private
sector.
(ii) The estimated
cost to the government
of Department of
Defense civilian
employees performing
the function.
(iii) In addition to
the costs referred to in
clause (i), an estimate of
all other costs and
expenditures that would
incur because of the
award of such a
contract.
(b) Contracting if Best
10 U.S.C. 2462 -
No similar provision
Value. - Section 2462(a)
Contracting for certain
of Title 10, U.S.C.,
supplies and services
would be amended by
required when cost is
striking “such a source
lower
can provide such supply
or service to the
Section 2462(a) states
Department at a cost that
that:
is lower (after including
(a) In General. —
any cost differential
Except as otherwise
required by law,
provided by law, the
executive order, or
Secretary of Defense
regulation) than the cost
shall procure each
at which the Department
supply or service
can provide the same
necessary for or
supply or service” and
beneficial to the
inserting “performance
accomplishment of the
by that source represents
authorized functions of

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CRS-72
DOD Transformation
Current Law
Homeland Security Act
for the 21st Century Act
of 2002 — P.L. 107-296
the best value to the
the Department of
government, determined
Defense (other than
in accordance with the
functions which the
competition requirements Secretary of Defense
of OMB Circular A-76.” determines must be
performed by military or
government personnel)
from a source in the
private sector if such
source can provide such
supply or service to the
Department at a cost
that is lower (after
including any cost
differential required by
law, executive order, or
regulation) than the cost
at which the Department
can provide the same
supply or service.

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