DESIGN ELEMENTS OF PAY-FOR-PERFORMANCE SYSTEMS IN DEMONSTRATION PROJECTS.

SEC. 1126. DESIGN ELEMENTS OF PAY-FOR-PERFORMANCE SYSTEMS IN DEMONSTRATION PROJECTS. A pay-for-performance system may not be initiated under chapter 47 of title 5, United States Code, after the date of the enactment of this Act, unless it incorporates the following elements:(1) Adherence to merit principles set forth in section 2301 of such title.(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 supervisors, managers, 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.(8) A means for ensuring that adequate agency resources are allocated for the design, implementation, and administration of the pay-for-performance system.