5 U.S.C. chapter 43.
Chapter 43 of title 5, United States Code, provides for the performance appraisal of Federal employees. This subpart supplements and implements this portion of the law.
(a) Performance management is the systematic process by which an agency involves its employees, as individuals and members of a group, in improving organizational effectiveness in the accomplishment of agency mission and goals.
(b) Performance management integrates the processes an agency uses to—
(1) Communicate and clarify organizational goals to employees;
(2) Identify individual and, where applicable, team accountability for accomplishing organizational goals;
(3) Identify and address developmental needs for individuals and, where applicable, teams;
(4) Assess and improve individual, team, and organizational performance;
(5) Use appropriate measures of performance as the basis for recognizing and rewarding accomplishments; and
(6) Use the results of performance appraisal as a basis for appropriate personnel actions.
(a)
(b)
(c)
(2) Other performance evaluations given while an employee is not covered by the provisions of this subpart are considered ratings of record for reduction in force purposes when the performance evaluation—
(i) Was issued as an officially designated evaluation under the employing agency's performance evaluation system,
(ii) Was derived from the appraisal of performance against expectations that are established and communicated in advance and are work related, and
(iii) Identified whether the employee performed acceptably.
(3) When the performance evaluation does not include a summary level designator and pattern comparable to those established at § 430.208(d), the agency may identify a level and pattern based on information related to the appraisal process.
(a)
(2) Section 4301(2) of title 5, United States Code, defines employees covered by statute by this subpart. Besides General Schedule (GS/GM) and prevailing rate employees, coverage includes, but is not limited to, senior-level and scientific and professional employees paid under 5 U.S.C. 5376.
(b)
(c)
(d)
In this subpart, terms are defined as follows:
(a) Each agency as defined at section 4301(1) of title 5, United States Code, shall develop one or more performance appraisal systems for employees covered by this subpart.
(b) An agency appraisal system shall establish agencywide policies and parameters for the application and operation of performance appraisal within the agency for the employees covered by the system. At a minimum, a agency system shall—
(1) Provide for—
(i) Establishing employee performance plans, including, but not limited to, critical elements and performance standards;
(ii) Communicating performance plans to employees at the beginning of an appraisal period;
(iii) Evaluating each employee during the appraisal period on the employee's elements and standards;
(iv) Recognizing and rewarding employees whose performance so warrants;
(v) Assisting employees in improving unacceptable performance; and
(vi) Reassigning, reducing in grade, or removing employees who continue to have unacceptable performance, but only after an opportunity to demonstrate acceptable performance.
(2) Identify employees covered by the system;
(3) Specify the flexibilities an agency program established under the system has for setting—
(i) The length of the appraisal period (as specified in § 430.206(a));
(ii) The length of the minimum period (as specified in § 430.207(a));
(iii) The number(s) of performance levels at which critical and non-critical elements may be appraised (as specified in § 430.206(b)(7) (i)(A) and (ii)(A)); and
(iv) The pattern of summary levels that may be assigned in a rating of record (as specified in § 430.208(d));
(4) Include, where applicable, criteria and procedures for establishing separate appraisal programs under an appraisal system; and
(5) Require that an appraisal program shall conform to statute, the regulations of this chapter, and the requirements established by the appraisal system.
(c) Agencies are encouraged to involve employees in developing and implementing their system(s). When agencies involve employees, the method of involvement shall be in accordance with the law.
(a) Each agency shall establish at least one appraisal program of specific procedures and requirements to be implemented in accordance with the applicable agency appraisal system. At a minimum, each appraisal program shall specify the employees covered by the program and include the procedures and requirements for planning performance (as specified in § 430.206), monitoring performance (as specified in § 430.207), and rating performance (as specified in § 430.208).
(b) An agency program shall establish criteria and procedures to address employee performance for employees who are on detail, who are transferred, and for other special circumstances as established by the agency.
(c) An agency may permit the development of separate appraisal programs under an appraisal system.
(d) Agencies are encouraged to involve employees in developing and implementing their program(s). When agencies involve employees, the method of involvement shall be in accordance with law.
(a)
(2) Each program shall specify a single length of time as its appraisal period. The appraisal period generally shall be 12 months so that employees are provided a rating of record on an annual basis. A program's appraisal period may be longer when work assignments and responsibilities so warrant or performance management objectives can be achieved more effectively.
(b)
(2) Performance plans shall be provided to employees at the beginning of each appraisal period (normally within 30 days).
(3) An appraisal program shall require that each employee be covered by an appropriate written, or otherwise recorded, performance plan based on work assignments and responsibilities.
(4) Each performance plan shall include all elements which are used in deriving and assigning a summary level, including at least one critical element and any non-critical element(s).
(5) Each performance plan may include one or more additional performance elements, which—
(i) Are not used in deriving and assigning a summary level, and
(ii) Are used to support performance management processes as described at § 430.102(b).
(6) A performance plan established under an appraisal program that uses only two summary levels (pattern A as specified in § 430.208(d)(1)) shall not include non-critical elements.
(7) An appraisal program shall establish how many and which performance levels may be used to appraise critical and non-critical elements.
(8) Elements and standards shall be established as follows—
(i) For a critical element—
(A) At least two levels for appraisal shall be used with one level being “Fully Successful” or its equivalent and another level being “Unacceptable,” and
(B) A performance standard shall be established at the “Fully Successful” level and may be established at other levels.
(ii) For non-critical elements, when established,—
(A) At least two levels for appraisal shall be used, and
(B) A performance standard(s) shall be established at whatever level(s) is appropriate.
(iii) The absence of an established performance standard at a level specified in the program shall not preclude a determination that performance is at that level.
(a)
(b)
(c)
(d)
(1) Assisting employees in improving unacceptable performance at any time during the appraisal period that performance is determined to be unacceptable in one or more critical elements; and
(2) Taking action based on unacceptable performance.
(a) As soon as practicable after the end of the appraisal period, a written, or otherwise recorded, rating of record shall be given to each employee.
(b) Rating of record procedures for each appraisal program shall include a method for deriving and assigning a summary level as specified in paragraph (d) of this section based on appraisal of performance on critical elements and, as applicable, non-critical elements.
(1) A Level 1 summary (“Unacceptable”) shall be assigned if and only if performance on one or more critical elements is appraised as “Unacceptable.”
(2) Consideration of non-critical elements shall not result in assigning a Level 1 summary (“ Unacceptable”).
(c) The method for deriving and assigning a summary level may not limit or require the use of particular summary levels (i.e., establish a forced distribution of summary levels). However, methods used to make distinctions among employees or groups of employees such as comparing, categorizing, and ranking employees or groups on the basis of their performance may be used for purposes other than assigning a summary level including, but not limited to, award determinations and promotion decisions.
(d)
(2) Within any of the patterns shown in paragraph (d)(1) of this section, summary levels shall comply with the following requirements:
(i) Level 1 through Level 5 are ordered categories, with Level 1 as the lowest and Level 5 as the highest;
(ii) Level 1 is “Unacceptable”;
(iii) Level 3 is “Fully Successful” or equivalent; and
(iv) Level 5 is “Outstanding” or equivalent.
(3) The term “Outstanding” shall be used only to describe a Level 5 summary.
(4) The designation of a summary level and its pattern shall be used to provide consistency in describing ratings of record and as a reference point for applying other related regulations, including, but not limited to, assigning additional retention service credit under § 351.504 of this chapter.
(5) Under the provisions of § 351.504(e) of this chapter, the number of years of additional retention service credit established for a summary level of a rating of record shall be applied in a uniform and consistent manner within a competitive area in any given reduction in force, but the number of years may vary:
(i) In different reductions in force;
(ii) In different competitive areas; and
(iii) In different summary level patterns within the same competitive area.
(e) A rating of record of “Unacceptable” (Level 1) shall be reviewed and approved by a higher level management official.
(f) The rating of record or performance rating for a disabled veteran shall not be lowered because the veteran has been absent from work to seek medical treatment as provided in Executive Order 5396.
(g) When a rating of record cannot be prepared at the time specified, the appraisal period shall be extended. Once the conditions necessary to complete a rating of record have been met, a rating of record shall be prepared as soon as practicable.
(h) A performance rating may be prepared at such other times as an appraisal program may specify for special circumstances including, but not limited to, transfers and performance on details.
An agency shall—
(a) Submit to OPM for approval a description of its appraisal system(s) as specified in § 430.204(b) of this subpart, and any subsequent changes that modify any element of the agency's system(s) that is subject to a regulatory requirement in this part;
(b) Transfer the employee's most recent ratings of record, and any subsequent performance ratings, when an employee transfers to another agency or is assigned to another organization within the agency in compliance with part 293 of this chapter and instructions in the OPM Operating Manual, THE GUIDE TO PERSONNEL RECORDKEEPING, for sale by the U.S. Government Printing Office, Superintendent of Documents;
(c) Communicate with supervisors and employees (e.g., through formal training) about relevant parts of its performance appraisal system(s) and program(s);
(d) Evaluate the performance appraisal system(s) and performance appraisal program(s) in operation in the agency;
(e) Report ratings of record data to the Central Personnel Data File in compliance with instructions in the OPM Operating Manual, FEDERAL WORKFORCE REPORTING SYSTEMS, for sale by the U.S. Government Printing Office, Superintendent of Documents;
(f) Maintain and submit such records as OPM may require; and
(g) Take any action required by OPM to ensure conformance with applicable law, regulation, and OPM policy.
(a) OPM shall review and approve an agency's performance appraisal system(s).
(b) OPM may evaluate the operation and application of an agency's performance appraisal system(s) and program(s).
(c) If OPM determines that an appraisal system or program does not meet the requirements of applicable law, regulation, or OPM policy, it shall direct the agency to implement an appropriate system or program or to take other corrective action.
(a)
(b)
(1) Communicating and clarifying organizational goals and objectives;
(2) Identifying individual accountability for the accomplishment of agency goals and objectives;
(3) Evaluating and improving individual and organizational accomplishments; and
(4) Using the results of performance appraisal as a basis for adjusting base pay, training, rewarding, reassigning, retaining, and removing employees.
(a) All senior executives covered by subchapter II of chapter 31 of title 5, United States Code, are covered by this part.
(b) Section 3132(a)(1) of title 5, United States Code identifies agencies covered by this subpart.
In this subpart, terms are defined as follows:
(a) Each agency shall develop one or more performance appraisal systems for executives covered by this subpart.
(b) Under each SES appraisal system, critical elements must be included and non-critical elements may be included in individual performance plans. An executive must be appraised on each critical and non-critical element in the executive's performance plan, unless the executive has had insufficient opportunity to demonstrate performance on the element. A summary rating level, as specified in paragraph (g) of this section, must be assigned.
(c) Each SES appraisal system shall require establishing performance plans in consultation with the senior executive. Final authority for establishing such plans rests with the supervising officials.
(d) (1) Each SES appraisal system shall provide for establishing performance elements and standards based on the requirements of senior executives’
(2) Accomplishment of organizational objectives must be included in performance plans by incorporating objectives, goals, program plans, work plans, or by other similar means that account for program results.
(e) Each SES appraisal system shall provide for a minimum of three rating levels for each critical element. Performance standards must be written at the “Fully Successful” level for all critical and non-critical elements and may be written at other levels. The absence of a written standard at a given rating level shall not preclude the assignment of a rating at that level.
(f) Each SES appraisal system shall include a method for deriving a summary rating level from performance appraisals of critical elements and, at agency discretion, appraisals of non-critical elements. If appraisals of non-critical elements are considered in deriving summary rating levels, the derivation method must show that more weight will be given to critical elements than non-critical elements.
(g) Each SES appraisal system shall provide for at least three and not more than five summary rating levels. The rating levels must include an “Unsatisfactory” level, a “Minimally Satisfactory” level, and a “Fully Successful” level. Agencies may also establish up to two levels which are above “Fully Successful.” For purposes of this subpart, “Unsatisfactory” is referred to as level 1, “Minimally Satisfactory” is level 2, and “Fully Sucessful” is level 3. A level one level above “Fully Successful” is level 4, and a level two levels above “Fully Successful” is level 5.
(h) Each SES appraisal system shall provide for assisting employees in improving performance rated at a level below the “Fully Successful” level. Such assistance may include but is not limited to formal training, on-the-job training, counseling, and closer supervision.
(i) Subject to the provisions of part 359, subpart E of this chapter:
(1) Any executive receiving a level 1 (“Unsatisfactory”) rating of record shall be reassigned or transferred within the Senior Executive Service, or removed from the Senior Executive Service;
(2) Any executive who receives two level 1 (“Unsatisfactory”) ratings of record in any period of 5 consecutive years shall be removed from the Senior Executive Service; and
(3) Any executive who twice in any period of 3 consecutive years receives less than a level 3 “Fully Successful” rating of record shall be removed from the Senior Executive Service.
(a)
(2) Except as provided in paragraph (b) of this section, a performance appraisal period may be terminated in any case in which the agency making an appraisal determines that an adequate basis exists on which to appraise and rate the senior executive's performance.
(3) Notwithstanding paragraphs (a)(2) and (b) of this section, in the case of a career appointee, an appraisal and rating may not be made within 120 days after the beginning of a new Presidential administration.
(b)
(c)
(d)
(2) When senior executives are detailed outside of the agency, the employing agency must make a reasonable effort to obtain appraisal information from the outside organization, which shall be considered in deriving the executive's next rating of record.
(i) If an executive has served in the employing agency for the minimum appraisal period, the executive must be rated. The rating shall take into consideration appraisal information obtained from the borrowing organization.
(ii) If an executive has not served in the agency for the established minimum appraisal period, but has served for the minimum appraisal period outside the employing agency, the employing agency must make a reasonable effort to prepare a rating using appraisal information obtained from the borrowing organization.
(e)
(a)
(1) A written initial rating of the executive's performance made by the executive's supervising official, and provided to the senior executive;
(2) An opportunity for the senior executive to respond in writing to an initial rating;
(3) An opportunity for review of the rating by an employee in a higher executive level than that of the supervisor, unless there is no one at a higher level, before review by the PRB as provided in § 430.307 (e) and (g);
(4) Provision of the senior executive's response to both the official making the higher level review and to the PRB; and
(5) Provision of copies of the reviewer's comments and recommendations to the senior executive, the supervising official, and the PRB.
(b)
(2) A senior executive is entitled to only one higher level review unless the agency provides otherwise.
(c)
(d)
(e)
(f)
(g)
As required by 5 U.S.C. 4314(c), each agency is required to establish one or more PRBs to make recommendations to the appointing authority on the performance of senior executives in the agency.
(a) Each PRB in an agency shall have three or more members appointed by the head of the agency or by another official or group acting on behalf of the head of the agency.
(b) Notice of appointment to the PRB must be published in the
(c) The members of the PRB must be appointed in such a manner as to assure consistency, stability, and objectivity in performance appraisal.
(d) When appraising a career appointee, more than one-half of the membership of the PRB must be SES career appointees unless OPM determines that there exists an insufficient number of career appointees available to comply with the requirement.
(e) Each PRB will review and evaluate the initial rating, the senior executive's written response, if any, and the written comments, if any, on the initial rating by a higher level executive, and will conduct such further review as the PRB finds necessary.
(f) Individual PRB members must not take part in any PRB deliberations involving their own appraisals.
(g) The PRB must make a written recommendation concerning each senior executive's rating of record.
To assure that agency performance appraisal systems will be effectively implemented, agencies must provide appropriate training and information to supervisors and senior executives on the appraisal process, and must establish methods and procedures to evaluate periodically the effectiveness of the system(s) and to implement improvements as needed.
(a) OPM will review performance appraisal systems to determine if they conform to requirements of law, OPM regulations, and OPM performance management policy.
(b) If OPM determines that an appraisal system does not meet the requirements and intent of subchapter II of chapter 43 of title 5, United States Code, or of this subpart, it shall direct the agency to implement an appropriate system or to correct operations under the system. The agency shall take any action so required.
Agencies must submit proposed SES performance appraisal plans to OPM for approval as part of Performance Management Plans in accordance with provisions of this subpart.