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Co-Authored-By: Claude Opus 4.8 <noreply@anthropic.com>
2026-07-06 09:52:37 -04:00

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LegalText 5 U.S.C. § 5406 Agency plan us united_states_code code_section 5 GOVERNMENT ORGANIZATION AND EMPLOYEES 54 HUMAN CAPITAL PERFORMANCE FUND 5406 5 U.S.C. § 5406 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc05@119-100.zip /us/usc/t5/s5406 data/legal/raw/us/code/title-05/usc05.xml a1b3294cbc59e90c4fcf76aff1c53866b243494a4b90cdb9c34623ce22d64a64 719fdb18e7085aede50e1e97c1c129fa6058e2c5c12b3d77a9b9044b1769e540 e3c53cb6e90ebd123de570e22595588bab73dbdd3792996238910ebbd81d7520 2026-07-04 official
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5 U.S.C. § 5406 - Agency plan

Text

(a) To be eligible for consideration by the Office for an allocation under this section, an agency shall—

(1) develop a plan that incorporates the following elements:

(A) adherence to merit principles set forth in section 2301;

(B) a fair, credible, and transparent employee performance appraisal system;

(C) a link between the pay-for-performance system, the employee performance appraisal system, and the agencys 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 pay-for-performance system;

(F) a process for ensuring ongoing performance feedback and dialogue between supervisors, managers, 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 pay-for-performance system;

(2) upon approval, receive an allocation of funding from the Office;

(3) make payments to individual employees in accordance with the agencys approved plan; and

(4) provide such information to the Office regarding payments made and use of funds received under this section as the Office may specify.

(b) The Office, in consultation with the Chief Human Capital Officers Council, shall review and approve an agencys plan before the agency is eligible to receive an allocation of funding from the Office.

(c) The Chief Human Capital Officers Council shall include in its annual report to Congress under section 1303(d) of the Homeland Security Act of 2002 an evaluation of the formulation and implementation of agency performance management systems.

(Added Pub. L. 108136, div. A, title XI, § 1129(a), Nov. 24, 2003, 117 Stat. 1644.)

Notes

Editorial Notes

References in TextSection 1303(d) of the Homeland Security Act of 2002, referred to in subsec. (c), is section 1303(d) of Pub. L. 107296, which is set out as a note under section 1401 of this title.

Prior ProvisionsA prior section 5406, added Pub. L. 98615, title II, § 201(a), Nov. 8, 1984, 98 Stat. 3211; amended Pub. L. 101103, § 4, Sept. 30, 1989, 103 Stat. 671; Pub. L. 10222, § 2(b), Mar. 28, 1991, 105 Stat. 71, related to performance awards, prior to repeal by Pub. L. 10389, § 3(a)(1), (c), Sept. 30, 1993, 107 Stat. 981, 983, eff. Nov. 1, 1993.