End of "GM" Designation
On September 30, 1993, Public Law 103-89, The Performance Management and Recognition System Termination Act of 1993, was enacted. This law terminated the Performance Management and Recognition System (PMRS) effective November 1, 1993.
An employee's coverage ends with a promotion, change to a lower grade, a break in service for more than 3 days, transfer to another agency, or reassignment to a non-supervisory or non-management position. The bureau/operating unit will adjust the employee's rate of basic pay to the designated GS step rate that meets or exceeds the current rate of pay, not to exceed step 10. The bureau/operating unit should include a remark on the SF-50 that the personnel action terminated the employee's coverage in P.L. 103-89 and the use of the GM pay plan code. Until one of those personnel actions occurs, GM rates of pay, including off step rates, are to be considered General Schedule rates of basic pay for purposes of pay setting.
Eligible "GM" employees will have a step increase added to their basic rate (including an off-step rate) upon completion of the appropriate waiting period, provided performance has been of an acceptable level of competence.
Pay Setting Examples
Example 1 (GM gets a within-grade)
Employee "A" is a GM-15 with an off step rate of basic pay of $67,700. His rate (between step 1 and step 2) puts him in a one year waiting period for a within grade increase. Per OPM, a waiting period began the day he got his last merit increase (October 3, 1993). He will, therefore, be eligible for step 2 sometime after October 1, 1994. In setting salary at that time, the step for his grade ($2,220) will be added to $67,700 bringing his rate to $69,920. It will still be off step after the within grade and will stay that way until the employee is promoted, transferred, etc.
The off step rate should be multiplied by locality pay as appropriate.
Example 2 (Reassignment to GS)
Employee "B", a GM-13 employee earning basic pay of $56,600, is reassigned out of a supervisory position. Note: $56,600 is an off step GM rate. In effecting any action to change an employee from GM to GS, use the employee's basic rate of pay as explained in the opening paragraph (this should correspond with the employee's unadjusted rate on an SF-50) - not the locality rate.
Since Kale is being reassigned to a non-supervisory position, he is losing GM status. He must be slotted in the step of GS-13, which most nearly accommodates his GM rate. On the GS-94 regular schedule, this puts Kane at GS-13/7 ($57,502). Kane should be paid the rate for GS-13/7 on the appropriate locality comparability pay schedule, etc.
As a GS-13/7 Kane is in a three-year waiting period for a within grade increase. Per OPM directive, the waiting period began with the last merit increase the employee received on October 3, 1993. He will be eligible for a within-grade increase sometime after October 3, 1996.
Example 3 (Promotion)
Noah is being promoted from GM-13 (basic pay at $53,400). Note: In promoting a GM (any promotion action terminates GM), compute the employee's promotion entitlement (two-step promotion rule) on the GM rate of basic pay, then - using the nationwide schedule - slot the result of the computation against the step of the higher grade which most nearly accommodates the employee's new rate. This will undoubtedly result in another slight increase.
Noah must receive an increase equal to at least two steps at the GS-13 rate or $3,194. This, added to his off step GM rate, would put his rate at $56,594. The step that most nearly accommodates the new rate in GS-14 is step 1 ($56,627). The payable rate is the 14/1 on the applicable locality schedule.
5 CFR 531.241 - 531.247
Revised and updated November 13, 2019