Glossary of Terms

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3Rs means recruitment bonuses, relocation bonuses, and retention allowances. (See separate definitions of these terms.)

360-degree assessment means the collection and use of information about an employee's performance from a variety of sources. These sources may include co-workers, customers, subordinates, employees themselves, and supervisors. The information may be applied for developmental purposes, as part of a performance appraisal program, and/or to make distinctions among levels of performance for making decisions about rewards and recognition.

9(b) employees means all Federal blue-collar employees who had bargained collectively for wages prior to 1972 and who are consequently exempted from the pay-setting provisions of the Federal Wage System under Section 9(b) of Public Law 92-392.

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A: Additional element - see Performance element.
: Adjustment factor means, for purposes of determining COLA rates in the nonforeign areas, an additional number of index points, specified in the COLA settlement, that are added to the price index for each allowance area to reflect differences in need, availability of and access to goods and services, and quality of life between Washington, DC, and the allowance area.

: Administrative leave - see Excused absence.
: Advance payment means an advance of up to 4 weeks of basic pay which an agency may pay as a recruitment incentive to a newly appointed Federal employee.
: Aggregate pay limitation means the statutory limitation on total pay that an employee may receive in a calendar year, which is set at Executive Schedule level I (currently $161,200). Amounts not paid because of the cap generally roll over and are paid in the next calendar year. Some types of pay and some types of employees are not subject to this cap.
: Allowance area means, for the nonforeign area COLA program, an area for which OPM has authorized a cost-of-living allowance. There are currently 11 allowance areas--4 in Alaska, 4 in Hawaii, 1 in Guam and the Commonwealth of the Northern Mariana Islands, 1 in Puerto Rico, and 1 in the U.S. Virgin Islands.
: Alternative work schedules (AWS) means various work schedule arrangements in which traditional fixed 8-hour workdays or 40-hour workweeks are replaced by work schedules that allow employees to vary their length of a workweek or workday. There are two types of alternative work schedules - flexible work schedules and compressed work schedules.
: Annual leave means a form of paid time off generally used for vacation time or other personal needs. Employees earn 13, 20, or 26 days of annual leave a year, depending on years of service. Annual leave accrues incrementally, i.e., 4, 6, or 8 hours every 2 weeks. SES members may carry over up to 90 days of annual leave to the next leave year; all other employees may carry over up to 30 days of annual leave. Employees generally receive a lump-sum payment for any unused annual leave upon separation from Federal service. (NOTE: Presidential appointees do not earn annual leave and cannot be charged leave for absences from work.)
: Appraisal period means the amount of time (usually 1 year) for which an employee's performance is reviewed.
: Appraising official -see Rating official.
: Area of application
(1) for the General Schedule, means a county or partial county that is included in a locality pay area if it meets the Federal Salary Council's criteria for inclusion. Locality pay areas consist of CMSAs and MSAs, as defined by OMB, except when areas of application are added.
(2) for the Federal Wage System, means a geographic area consisting of one or more counties, including and surrounding a survey area, where a Federal Wage System wage schedule applies uniformly to Federal blue-collar employees under the wage schedule determined for the wage area on the basis of local prevailing rates.
: Availability pay or law enforcement availability pay (LEAP) means a type of premium pay equal to 25 percent of basic pay which is paid to Federal law enforcement officers (LEOs) who are criminal investigators. Due to the nature of their work, criminal investigators are required to work, or be available to work, substantial amounts of "unscheduled duty."
: Award means something given (e.g., cash or a certificate) or an action taken (e.g., granting time off with pay or holding a ceremony) to provide an incentive or recognition for individual or group achievements that contribute to meeting organizational goals or improving the efficiency, effectiveness, or economy of the Government. Examples of specific types of awards include honorary awards, informal recognition, time off awards, performance awards, special act or service awards, on-the-spot awards, group incentives (e.g., gainsharing, goalsharing), suggestion awards, invention awards, referral bonuses, and travel savings incentives. (See separate definitions of these terms.)
: Awards program means the specific procedures and requirements established by an agency or a component of an agency for granting awards. This includes information on the forms and bases for awards. Within its overall awards program, an agency may establish a specific awards program, usually with a distinctive name, for a particular purpose or to grant a particular type of award. Awards programs are the Federal Government's principal means of providing variable pay to employees.

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Back pay means the payment of retroactive compensation based on a finding that there was an erroneous withdrawal or reduction of pay; the payment generally includes interest.

Balanced measures means, for employee performance management, performance measures that gauge different aspects of performance. Most commonly, these measures include accomplishment of organizational results, customer satisfaction, and employee perceptions of the workplace.

Banding - see Broadbanding.

Basic pay generally means an employee's regular and recurring base pay excluding irregular payments such as overtime pay. The term "basic pay" is defined differently for different purposes. When pay is used as the basis for computing another payment or benefit, it is considered basic pay for that purpose. Examples of benefits that are based on a definition of basic pay include retirement, life insurance, severance pay, recruitment bonuses, retention allowances, premium pay, certain performance awards, etc.

Benchmark means a grade level illustration in a position classification standard that provides a set of duties for a specific job and shows how the duties are evaluated to arrive at the particular grade level.

Broadbanding or pay banding means a system, under which positions are grouped for pay, job evaluation, and other purposes, that differs from the General Schedule pay and classification system as a result of combining the grades and related ranges of pay for one or more occupational series.

Bureau of the Budget - A federal agency name previously allocated to the agency now known as the Office of Management and Budget (OMB).

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Caraballo [i.e., Caraballo v. United States, No. 1997-0027 (D.V.I.)] - see COLA settlement.

Central Personnel Data File (CPDF) - The CPDF is an automated information system containing individual records for most Federal civilian employees. The system�s primary objective is to provide a readily accessible primary data source for meeting the workforce information needs of the Office of Personnel Management (OPM), other central management agencies, the White House, the Congress, and the public. It relieves participating agencies of providing separate input or reports to meet a variety of OPM reporting requirements. The information is covered by the Privacy Act of 1974.

The CPDF covers all Federal civilian employees of the Executive Branch, with the exception of those in the Central Intelligence Agency, Defense Intelligence Agency, Defense Imagery and Mapping Agency, Federal Reserve System (Board of Governors), National Security Agency, Office of the Vice President, Postal Rate Commission, Tennessee Valley Authority, U.S. Postal Service and White House Office. U.S. employees who are non-U.S. citizens working in foreign countries, most non-appropriated fund personnel, commissioned officers in the Department of Health and Human Services (HHS), Commerce and the Environmental Protection Agency (EPA), and all employees of the Judicial Branch are also excluded. Legislative Branch coverage is limited to the Government Printing Office, U.S. Tax Court and several small commissions.

Civil Service Commission (CSC) - While the Merit Systems Protection Board (MSPB) is officially the successor agency to the "old" Civil Service Commission (CSC), the agency now known as the United States Office of Personnel Management (OPM) is the federal agency that ultimately inherited the responsibilities directed to the Chairman of the Civil Service Commission by President Kennedy's 1961 memorandum pertaining to the oversight and coordination of Federal Executive Boards (FEBs) and Federal Executive Associations (FEAs).

The Office of Personnel Management was created as an independent establishment by Reorganization Plan Number 2 (5 U.S.C. appended) effective January 1, 1979, pursuant to Executive Order 12107 of December 28, 1978. Many of the functions of the former United States Civil Service Commission were transferred to this new agency. The duties and authority are specified in the Civil Service Reform Act of 1978 (5 U.S.C. 1101).

Classification standard (or position classification standard) means the criteria OPM issues as required by law and which agencies use to classify the duties and responsibilities of positions or jobs and determine their proper occupational series, position title, and grade level. The criteria permit the agencies to compare the duties and responsibilities with level descriptions for predefined factors. The law does not specify the format for classification standards, which include both occupational standards and functional guides. General Schedule occupational standards are issued in a two-factor narrative format or a nine-factor Factor Evaluation System (FES) format. Federal Wage System job grading criteria use a four-factor narrative format. Functional guides vary in format. See also Standard.

U.S.C. - The United States Code contains the text of current public laws enacted by Congress. The United States Code is the official, subject matter order, compilation of the Federal laws of a general and permanent nature that are currently in force. In accordance with section 285b of title 2 of the U.S. Code, the Code is compiled and published by the Office of the Law Revision Counsel of the United States House of Representatives. The Code is divided into 50 titles by subject matter. Each title is divided into sections. Sections within a title may be grouped together as subtitles, chapters, subchapters, parts, subparts, or divisions. Titles may also have appendices which may be divided into sections, rules and/or forms.

The U.S. Code does not include regulations issued by executive branch agencies, decisions of the federal courts, or treaties. Regulations issued by executive branch agencies are available in the Code of Federal Regulations. Proposed regulations and regulations adopted so recently that they are not yet in the Code of Federal Regulations, may be found in the Federal Register. Some of the decisions of the Federal courts (particularly recent decisions) are available through the Federal Court Decisions and Rules page of the U.S. House of Representatives Internet Law Library. A collection of treaties is available through the Treaties and International Law page of the House of Representatives Internet Law Library.

Laws enacted by state legislatures are not included in the U.S. Code. All of the states, however, do publish their statutes in collections similar to the U.S. Code.

CFR - The Code of Federal Regulations contains the text of public regulations issued by the agencies of the Federal government.
The Code of Federal Regulations is the official, subject matter order, compilation of the Federal regulations of a general applicability and legal effect, that are currently in force. In accordance with section 1510(d) of title 44 of the U.S. Code, the Code of Federal Regulations is compiled and published by the Office of the Federal Register of the National Archives and Records Administration. The Code is divided into 50 titles by subject matter. Each title is divided into sections. Sections within a title may be grouped together as subtitles, chapters, subchapters, parts, subparts, or divisions. Titles may also have appendices which may be divided into sections, rules and/or forms.

The Code of Federal Regulations does not include statutes enacted by Congress, decisions of the Federal courts, or treaties.

Compensation means all forms of financial returns, services, and benefits employees receive as part of an employment relationship. The term often is used narrowly to mean only pay.

Compensatory time off means time off with pay on an hour-for-hour basis in lieu of overtime pay for irregular or occasional overtime work.

Compressed work schedule means a fixed work schedule that enables a full-time employee to complete the basic 80-hour biweekly work requirement in less than 10 workdays.

Consolidated Metropolitan Statistical Area (CMSA) means two or more adjoining metropolitan areas that are combined if they pass criteria established by OMB. The metropolitan areas that comprise a CMSA are called Primary Metropolitan Statistical Areas (PMSAs). Nineteen of the 32 General Schedule locality pay areas are CMSAs.

Cost-of-living allowance (COLA) means an addition to base pay that is payable only in selected nonforeign areas (Alaska, Hawaii, Guam/Commonwealth of Northern Mariana Islands, Puerto Rico, U.S. Virgin Islands). COLA rates are based on living costs in the nonforeign area relative to living costs in the Washington, DC, area. COLAs plus post differentials cannot exceed 25 percent of the rate of basic pay. COLAs are not subject to Federal income tax and are not part of basic pay for retirement purposes.

COLA Defense Committee means a corporation established for the purpose of representing the class of plaintiffs in various nonforeign area COLA program litigation. There are 12 COLA Defense Committees--3 in Alaska, 5 in Hawaii, 1 in Guam and the Commonwealth of the Northern Mariana Islands, 1 in Puerto Rico, and 2 in the U.S. Virgin Islands.

COLA settlement refers to a landmark court case involving the nonforeign area COLA program which the Government settled in 2000. OPM is currently working to implement the settlement through additional changes in the COLA program that will require regulatory changes.

Court leave means paid time off without charge to leave for service as a juror or witness.

Credit hours means hours an employee elects to work, with supervisory approval, in excess of his or her basic work requirement under a flexible work schedule. An employee may use credit hours, with supervisory approval, to be absent from work during a subsequent day, week, or pay period.

Critical element - see Performance element.

Critical pay means a higher rate of basic pay that may be approved by OMB (in consultation with OPM) to recruit or retain an individual exceptionally well qualified for a critical position. The rate approved may not exceed the rate for level I of the Executive Schedule ($161,200), and not more than 800 critical positions may be authorized Governmentwide.

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Direct compensation means forms of compensation that involve direct and immediate payment to the individual; these include basic pay and variable pay.

Duty station or official duty station means the city/town, county, and State in which an employee works. The employing agency determines an employee's work site. Generally, an employee's work site is the location of the employee's desk or the place where the employee normally performs his or her duties. The official duty station determines an employee's entitlement to locality pay and other location-based pay entitlements, travel reimbursement, competitive levels for reduction-in-force purposes, etc.

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Emergency dismissal or closure procedures means the procedures OPM issues for agencies and employees in the Washington, DC, area each year to apply in adverse weather conditions and other kinds of emergency situations. These procedures include policies covering "unscheduled leave," "adjusted home departure," and "adjusted work dismissal."

Employment Cost Index (ECI) means a series of statistical measures published quarterly by the Bureau of Labor Statistics to measure changes in specified elements of non-Federal compensation. Separate ECIs are used to adjust the General Schedule and the Executive Schedule.

Evaluation statement means the written statement that provides the analysis of a classification determination of proper series, title, and grade for a position. The evaluation statement remains with the official position description.

Excused absence or administrative leave means an absence from work without loss of pay or charge to leave. Each department or agency has discretion to grant employees excused absence. OPM does not have authority to regulate the use of excused absence, but provides advice and criteria about its appropriate use.

Executive Schedule means the pay system for Cabinet secretaries and other top positions in the executive branch. Approximately 440 positions, most of which require appointment by the President and confirmation by the Senate, are covered by the Executive Schedule.

Exempt employee means an employee who is not covered by the minimum wage and overtime provisions of the Fair Labor Standards Act. In the Federal Government, most exempt employees are entitled to overtime pay under title 5, United States Code.

Expert and consultant authority means a special appointing authority that allows agencies to employ experts and consultants on a temporary or intermittent basis without using the normal competitive appointment process.

External equity means a measure of an organization's pay levels compared to rates prevailing in external labor markets for an occupation.

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Factor Evaluation System (FES) means the nine-factor job evaluation system used to classify positions in the General Schedule. The FES uses a traditional "point-factor" approach to job evaluation, although it retains the general label "position classification," which otherwise connotes a broader "whole job" approach to job evaluation. OPM issues its job family standards in FES format.

Fair Labor Standards Act (FLSA) means the Fair Labor Standards Act of 1938, as amended. OPM is required by law to administer the FLSA for Federal employees, while the Department of Labor administers the FLSA for private sector employers and for State and local governments. Agencies must designate all positions as either "exempt" (not covered by the FLSA) or "nonexempt" (covered by the FLSA).

Family and medical leave means a statutory entitlement to a total of up to 12 workweeks of unpaid leave during any 12 month period for (1) the birth of a child and care of the newborn; (2) the placement of a child with the employee for adoption or foster care; (3) the care of an employee's spouse, son or daughter, or parent with a serious health condition; or (4) an employee's own serious health condition that makes him/her unable to perform the duties of his or her position. An employee may substitute annual leave or sick leave, as appropriate, for unpaid leave under the Family and Medical Leave Act (FMLA).

Family-friendly leave or sick leave for family care means a limited amount of sick leave that an employee may use for general family care or bereavement purposes. In addition, employees may use a total of up to 12 weeks of sick leave each year to care for a family member with a serious health condition.

Federal Employees Pay Comparability Act of 1990 (FEPCA) means the pay reform legislation that made several changes in the way pay is set for the white-collar Federal workforce. FEPCA addressed a broad range of compensation issues, including locality pay, pay for administrative law judges and Contract Appeal Board members, aggregate limitation on pay, pay for critical positions, law enforcement officer special pay entitlements, recruitment/relocation/retention (3Rs) payments, reemployment of civilian and military retirees, senior-level pay, expanded special rates authority, supervisory differentials, time off as an incentive award, travel and transportation expenses for interviewees and new appointments, and uniform allowances.

Federal Prevailing Rate Advisory Committee (FPRAC) means the statutory national labor-management advisory committee responsible for advising the Director of OPM on matters affecting the determination of prevailing rates of pay for blue-collar Federal workers.

Federal Salary Council (FSC) means the statutory advisory committee comprising three experts in pay/labor relations and six representatives of Federal unions representing large numbers of General Schedule (GS) employees. The FSC makes recommendations to the President's Pay Agent on pay localities, the coverage of Bureau of Labor Statistics surveys, the process of comparing rates of pay, and the level of comparability payments for GS employees.
Federal Wage System (FWS) means the pay system for approximately 250,000 Federal employees in craft, trade, or laboring positions (sometimes referred to as "blue-collar" positions). By design, the FWS is a system based on local prevailing rates. For this reason, the system also is called a prevailing rate system.

Flexible work schedules means schedules that provide for other than fixed 8-hour workdays. These schedules consist of workdays with (1) core hours and (2) flexible hours. Core hours are the designated period of the day when all employees must be at work. Flexible hours are the part of the workday when employees may (within limits or "bands") choose their time of arrival and departure.

Flexitime means a kind of flexible work schedule under which an employee with a normal 8-hour daily tour of duty may vary his or her starting and stopping times within certain limits. The term is sometimes used colloquially to refer to all forms of flexible work schedules.

Foreign language award means a payment of up to 5 percent of basic pay which an agency may make to certain law enforcement officers who possess and make substantial use of one or more foreign languages in the performance of official duties. These awards generally are not considered part of the agency's awards program.

Full-scale survey means, for the Federal Wage System, a local wage survey conducted at least every 2 years by the Department of Defense to determine prevailing wage levels in a wage area through on-site visits to private industrial establishments by teams of Federal data collectors.

Functional guide means a kind of classification standard that provides grading criteria that may be applied to positions at all grade levels across different occupational series that perform the same general function, such as supervision or research.

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Gainsharing means an incentive program designed to share financial benefits, such as cost savings or cost avoidance, with the workforce. A gainsharing program is self-funding and requires reliable financial measures.

General pay adjustment means the annual adjustment to General Schedule rates of basic pay that results in automatic pay increases for most employees. Increases in General Schedule rates of basic pay typically become effective on the first day of the first full pay period in January of each year.

General Schedule (GS) means the classification and pay system for most white-collar Federal civilian employees. The pay structure for the General Schedule has 15 grade levels, with 10 salary steps at each grade. Positions are classified using Governmentwide standards to determine their proper occupational series, title, and grade within the General Schedule. The GS pay system covers approximately 1.3 million employees. In the 48 States and Washington, DC, GS employees generally receive locality pay.

Goalsharing means an incentive program that distributes a payout to employees when the group meets or exceeds pre-established goals. The goals, such as improved customer satisfaction or improved program effectiveness, support the organization's mission. Goalsharing usually is not self-funding.

Grade evaluation guide - see Functional guide.

Grade means a level of work or range of difficulty and responsibility. The grades for the General Schedule are defined in law. Federal Wage System grades are defined by OPM using key ranking jobs.

Group incentive means any award program that measures and rewards the collective performance of two or more people working together as a team or unit. Goalsharing and gainsharing are examples of group incentive programs.

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Highest previous rate means a policy to allow an employee who has previous civilian Federal service to receive up to the highest rate of basic pay previously received from the Federal Government (updated to reflect current rates under the GS) or the current rate for the highest GS grade and step previously held by the employee.

Holiday means a paid day off for Federal employees. Federal employees currently receive 10 paid holidays each year:
New Year's Day (January 1).
Birthday of Martin Luther King, Jr. (Third Monday in January).
Washington's Birthday (Third Monday in February).
Memorial Day (Last Monday in May).
Independence Day (July 4).
Labor Day (First Monday in September).
Columbus Day (Second Monday in October).
Veterans Day (November 11).
Thanksgiving Day (Fourth Thursday in November).
Christmas Day (December 25).
Also, Presidential Inauguration Day for Federal employees in the Washington, DC, area (January 20 following a Presidential election).

Honorary award means a nonmonetary form of recognition that represents a high level of respect and distinction. Honorary awards usually reward significant work accomplishments.

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Incentive means, in the context of employee awards programs, a program in which the organization identifies goal(s) at the start of a project or process, sets priorities and timelines, and establishes an expectation about providing contingent payouts. If the goals are accomplished consistent with the priorities and timelines, the organization distributes award payouts to its employees.

Indirect compensation means compensation beyond basic pay and variable pay and most commonly includes employee benefits, such as paid time off and medical benefits.

Individual equity means a fairness criterion that promotes adjusting pay or granting an award by individual according to individual variation in merit.

Informal recognition means awards given that are usually inexpensive items, such as certificates, mugs, etc. Agencies use informal recognition awards to recognize contributions that otherwise might not merit cash, time-off, or honorary awards, but are still worthy of recognition.

Internal equity means a fairness criterion that promotes paying rates that correspond to each job's relative value to the organization.

Invention award means recognition for an invention that contributes to an improvement in Government economy, efficiency, or operations.

IT special rates means the OPM-approved special salary rates for certain information technology (IT) workers. The IT special rates cover all GS-0334 (computer specialist), GS 0854 (computer engineer), and GS-1550 (computer scientist) positions at grades GS 5/7/9/11/12 Governmentwide. (NOTE: The GS-0334 occupational series will soon be redesignated as GS-2210 (IT Specialist) under a new classification standard developed in cooperation with the Chief Information Officers Council.)

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Job evaluation means the formal process by which management determines the relative value to be placed on various jobs within the organization. The end result of job evaluation consists of an assignment of jobs to a hierarchy of grades or some other ordered index of job value. Job evaluation is most closely associated with the criterion of internal equity. Federal jobs are evaluated using a position classification system (e.g., the Factor Evaluation System).

Job family means a broad grouping within an overall occupational group of occupational series and their component specialties that are related in one or more ways; e.g., similarity of functions performed, knowledge and skill requirements, and/or category of work.

Job family standard means a broad position classification standard that covers an entire area or family of related work rather than an individual occupational series or specialty. OPM is in the process of replacing numerous occupational standards for General Schedule series with more streamlined job family standards.

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Key ranking jobs means, for the Federal Wage System, descriptions of work commonly found in the Federal Government which serve as the pegpoints for determining the relative worth of different lines of work and levels within lines of work. The 39 key ranking jobs control the alignment of grade levels in all nonsupervisory blue-collar job-grading standards.

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Lead agency means, for the Federal Wage System, the Department of Defense, which is the agency responsible for conducting all local wage surveys to determine prevailing wage levels for blue-collar Federal employees and for issuing wage schedules under OPM guidelines which all Federal agencies must apply to blue-collar employees.

Leave sharing means the leave transfer or leave bank program administered by Federal agencies under which an employee may donate annual leave to another employee who has a personal or family medical emergency and who has exhausted his or her own available paid leave. Employees may not donate sick leave. All agencies must have a leave transfer program and may choose to establish a leave bank.

Local Wage Survey Committee means the labor-management committee formed in each Federal Wage System local wage area to oversee the conduct of each annual local wage survey. A Local Wage Survey Committee manages contacts with local private sector employers and forwards wage data collected at the local level to the Department of Defense for analysis.

Locality pay means supplemental locality-based payments in addition to the rate of basic pay that apply in the 48 contiguous States in areas where non-Federal pay exceeds Federal pay by more than 5 percent. Most Federal employees - including GS, SES, and senior-level employees, but excluding officials paid under the Executive Schedule are eligible for locality pay.

Locality pay area - see Pay area.

Lump-sum payment for annual leave means the payment for unused annual leave made to an employee who separates or retires from Federal service. The lump-sum payment equals the pay, excluding certain allowances, the employee would have received on a biweekly basis had he/she remained in Federal service on annual leave.

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Major duties means those specific duties that are series and grade determining in the classification of a position or job.

Merit Pay System means, in the context of Federal compensation, a pay-for-performance system for supervisors and management officials in grades GS-13 through 15 which was established by the Civil Service Reform Act in 1978. The Merit Pay System was replaced by the Performance Management and Recognition System (PMRS) in 1984. PMRS terminated in 1993. Under these systems, merit (basic pay) increases were paid based on employees' individual performance ratings. Lump-sum cash awards also were available under both systems.

Metropolitan Statistical Area (MSA) means a metropolitan area that OMB defines for purposes of collecting, tabulating, and publishing statistical data. MSAs are used for defining locality pay areas.

Mid-year review - see Progress review.

Military leave means paid time off for certain types of active or inactive duty in the National Guard or as a Reserve of the Armed Forces.

Minimum appraisal period means the minimum amount of time an employee must work under performance elements and standards before a performance rating can be given.

Minor duties means incidental job duties that generally do not affect the series or grade determination in classifying a position or job.

Monroney Amendment means legislation enacted in the mid-1960s to require that local wage schedules for blue-collar Federal employees be supplemented with wage data from outside a local wage area if there are large groups of Federal employees in specialized occupations in a wage area (e.g. aircraft mechanics), but few private sector employees in the local wage area doing similar work.

Monthly Report of Federal Civilian Employment - Standard Form 113-A, Monthly Report of Federal Civilian Employment, collects monthly summary data about Federal civilian employment, payroll and turn-over. Employment data is as of the last calendar day of the month or as of the end of the pay period closest and prior to the end of the month. Payroll and turnover data reflect the report month covered.

Included are Federal civilian officers and employees in or under the U.S. Government (including Government-owned or controlled corporations) who are paid salaries, wages, or fees for personal service they render. The Central Intelligence Agency, National Security Agency, National Imagery and Mapping Agency, and Defense Intelligence Agency are exempted by law. Most non-appropriated fund employees of the District of Columbia government are not included.

Multi-rater assessment - see 360-degree assessment.

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National Compensation Survey program means surveys of non-Federal pay conducted by the Bureau of Labor Statistics for the General Schedule locality pay program.

Night pay means a 10 percent differential paid to a General Schedule employee for regularly scheduled work performed at night.

Night shift differential, for the Federal Wage System, means a 7.5 percent differential paid to an employee for second shift work and a 10 percent differential paid to an employee for third shift work.

Nonappropriated fund (NAF) employees means Federal employees who are paid from funds that are not appropriated by Congress, but are obtained from recreational and other service establishments operated primarily by the Department of Defense for morale, welfare, and recreation purposes.

Non-critical element - see Performance element.

Nonexempt employee means an employee who is covered by the minimum wage and overtime pay provisions of the Fair Labor Standards Act.

Nonforeign areas means the U.S. States, territories, and possessions outside the 48 contiguous States.

Nonmonetary award means an award given in a form other than cash or time off-e.g., a plaque, memento, or item of merchandise symbolic of the employer-employee relationship or otherwise of nominal value.

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Occupational category means one of the six broad subdivisions of work in the Federal Government; i.e., (1) professional, (2) administrative, (3) technical, (4) clerical, and (5) "other" for white-collar work; and (6) all blue-collar work.

Occupational Compensation Survey Program means surveys of non-Federal pay conducted by the Bureau of Labor Statistics for setting pay under the General Schedule before the introduction of the National Compensation Survey program in the mid-1990s.

Occupational group means a major subdivision of the occupations in the General Schedule that includes similar or related jobs; e.g., the Human Resources Management Group, the Legal and Kindred Group.

Occupational series - see Series.

Occupational standard means a kind of classification standard that provides occupational information and grading criteria that may be applied to classifying positions at all grade levels within an occupational series.

One-grade interval work (or job) -see Promotion pattern.

On-the-spot award means recognition of an employee accomplishment that is supplied close in time to its occurrence.

Open range means a pay range within which the rate of pay for an individual can be set at any dollar level between the range minimum and maximum.

Overtime pay means additional pay received for performing overtime work in excess of 8 hours in a day or 40 hours in a week. Most Federal employees are covered by the overtime pay provisions of title 5, United States Code. Title 5 limits the amount of overtime pay an employee may earn. Employees who do not occupy executive, managerial, or administrative positions, and who are not stationed in foreign areas, also are covered by the overtime pay provisions of the Fair Labor Standards Act of 1938, as amended (FLSA).

Overtime pay limitation means a cap on the amount of hourly overtime pay that an employee may earn under the provisions of title 5, United States Code. Employees covered by this cap may not earn more than the overtime rate of pay for GS-10, step 1, even if that rate is lower than the employee's nonovertime rate of pay. This title 5 limitation does not apply to FLSA overtime pay and to some specially designated positions, such as wildland firefighters.

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Paid time off means time off from work with pay (and usually with any accruable benefits), in the form of holidays, annual leave, sick leave, jury duty, military duty, excused absence, and time-off awards. Also includes time off at reduced payments, such as short- and long-term disability (e.g., Office of Workers Compensation benefits for work injuries).

Parental leave means paid leave for employees in connection with the birth or adoption of a child (apart from any other paid leave). By September 30, 2001, OPM must provide Congress with a report with its recommendations and findings as to whether paid parental leave would assist the Federal Government in recruiting and retaining employees in the future.

Pass/fail means a term that is used commonly to describe a performance appraisal program that uses only two summary performance rating levels-fully successful and unacceptable-to summarize an employee's overall performance and assign a performance rating. The term has no precise, technical meaning, and agencies that use pass/fail appraisal programs vary considerably in their specific approaches and procedures. Agencies that use pass/fail appraisal programs can, should, and do use means other than formal performance ratings to identify top performers and recognize them. See also Performance level.

Pay (or salary) survey means a survey of the labor market to determine prevailing salary rates, award amounts, or other pay practices.

Pay area means a geographic area that serves as the basis for setting pay for General Schedule employees (in a locality pay area) or Federal Wage System employees (in a wage area). The boundaries of GS locality pay areas and FWS wage areas do not coincide.

Locality pay area means a geographic area established by the President's Pay Agent for General Schedule employees in the 48 contiguous States and Washington, DC. The Pay Agent has established 32 GS locality pay areas, including the Rest of U.S. locality pay area.

Wage area means a geographic area established by OPM for Federal Wage System employees in the U.S. and overseas. OPM has established 132 FWS wage areas for appropriated fund blue-collar employees and 125 FWS wage areas for nonappropriated fund blue-collar employees.

Pay banding - see Broadbanding.

Pay category determination means the analysis of a position or job to determine whether it belongs in the General Schedule or Federal Wage System.

Pay flexibilities means the pay options available to agencies to deal with staffing difficulties. Specific statutory and regulatory conditions govern the use of each of these flexibilities, including agency justification and documentation requirements. Examples of pay flexibilities include advance payments, superior qualifications appointments, highest previous rate, payment of travel and transportation expenses for pre-employment interviews, recruitment/relocation/retention (3Rs) payments, special rates, repayment of student loans, and pay for critical positions.

Pay plan means a pay structure or set of pay rates that is used to pay a defined group of employees. OPM approves two-character pay plan codes for most agencies. The pay plan is a convenient way to identify and group human resources data. "GS" is the pay plan covering most white-collar employees. Other common examples are "EX" (Executive Schedule), "ES" (Senior Executive Service), and "WG" (wage grade employees). There are more than 160 pay plans in the executive branch.

Pay progression means movement of an employee's salary within a pay range.

Pay range means a range of pay rates, from minimum to maximum.

Pay-for-performance means any compensation system that links pay and performance. The two most common general categories are merit pay plans and variable pay plans. In the Federal Government, both Merit Pay and PMRS were pay-for-performance systems. Currently, some of the demonstration projects use such pay models.

Peer input means information given by employees in a 360-degree assessment about their co-workers' performance.

Performance appraisal means the process of setting performance expectations and standards for employees and evaluating (and periodically summarizing) performance against those standards to determine whether performance is unacceptable, fully successful, etc.

Performance appraisal system means the overarching framework an agency establishes in accordance with Governmentwide regulations to set the parameters for its performance appraisal programs. OPM must approve agency appraisal systems for their conformance with regulation.

Performance appraisal program means the specific guidelines, procedures, and apparatus (e.g., forms) for appraising a set of employees established in conformance with the parameters of the agency's performance appraisal system. OPM does not approve performance appraisal programs.

Performance award means an award given to recognize good employee performance over the time period reflected in the performance rating of record. This term is used inter-changeably with performance bonus and rating-based award.

Performance bonus - see Performance award.

Performance elements mean work assignments or responsibilities that supervisors use to plan, monitor, and rate employee and group performance. The three types of performance elements are critical, non-critical, and additional.

Critical element means an individual work assignment or responsibility of such importance that failure on that element results in overall performance being considered unacceptable.

Non-critical element means an individual, team, or organizational work assignment or responsibility. Measurement of non-critical elements is used in summarizing overall employee performance in a summary rating of record.

Additional element means an individual, team, or group work assignment or responsibility. Assessments of additional elements cannot be used in determining a performance rating.

Performance level means one of the established levels at which supervisors may summarize an employee's overall performance and assign a performance rating. The levels are: 1 (unacceptable), 2 (minimally successful), 3 (fully successful), 4 (exceeds fully successful), and 5 (outstanding). Appraisal programs may use various patterns of these levels, but each program must use level 1 and level 3.

Performance Management and Recognition System (PMRS) means a pay-for-performance system for GS-13-15 managers that replaced Merit Pay in 1984. It sunset in November 1993 with the PMRS Termination Act. PMRS continued to use an open pay range, and merit (basic pay) increases took the form of whole or partial step increases, depending on the employee's performance rating of record and position within the pay range. The system also featured a requirement for lump-sum awards linked to ratings.

PMRS Termination Act means a statute that permitted the smooth transition of employees from PMRS back to the General Schedule when PMRS terminated in 1993. Its essential feature is that an employee covered by its provisions may be paid at a rate of pay that is different from the fixed step rates of the General Schedule so long as the employee stays in the same agency and grade.

Performance management means the process that aligns and promotes individual and organizational performance consistent with organizational objectives and establishes the standards for holding employees accountable for their performance. This process consists of planning, monitoring, developing, rating, and rewarding employee performance.

Performance measure means essentially the same as "performance standard" for purposes of employee performance management. In the context of managing group and organizational performance, performance measure also means the performance indicator(s) used to make distinctions among levels of performance and evaluate progress toward meeting performance goals and objectives. The performance of senior managers and executives is properly assessed using such organizational performance measures.

Performance plan means a document that communicates all of an employee's performance elements (critical and non-critical) and performance standards that will be used to rate his or her performance.

Performance rating means the appraisal of an employee's performance based on the performance elements and standards established in the employee's performance plan and generally includes assigning a summary performance level as the official rating of record for the appraisal period.

Performance standard means a description of a level of performance against which an employee's performance will be judged. Employee performance standards are most often expressed in terms of quality, quantity, or timeliness. Performance standards can connote a minimum level, or retention standard, that must be maintained. However, the term "standard" is sometimes used in connection with performance to connote a goal to be attained, as in "customer service standards." In the latter context, failure to achieve such a standard would not necessarily be considered unacceptable performance. See also Standard.

PILLAR Award means an annual award established by the OPM Director in 2000 to recognize agencies that have effective employee performance management practices. The OPM Director's PILLAR Award stands for Performance, Incentives, and Leadership Linked to Achieve Results and symbolizes how effective performance management supports organizational success.

Position (or job) classification means comparing a set of duties against a set of criteria to determine the appropriate position title, series, and grade of a position or job. Position classification is the Federal Government's basic job evaluation system.

Position (or job) description means a statement or set of duties and responsibilities that represents a job that must be performed to meet the agency's mission needs. A position or job description has an official series, title, and grade based on the results of a classification determination.

Position (or job) title means the official title of a position or job as authorized by OPM position classification standards; e.g., HR Specialist.

Position classification advisory means OPM's formal, documented analysis of a job carried out at the request of an agency, which compares the position against a set of classification criteria to determine the proper pay category, series, and grade level. It does not carry the weight of a classification appeal decision and is not binding on the agency.

Position classification standard - see Classification standard.

Position management means the logical and efficient arrangement of positions or jobs to accomplish the agency's mission. This is a management, rather than human resources office, responsibility; that is, it does not directly involve the application of any Governmentwide personnel requirements or procedures.

Position-in-range means the position of a pay rate relative to all pay rates in a range. Position-in range is normally expressed as a percentile, but may be expressed relative to control points or range zones.

Post differential means an addition to basic pay that is payable in selected nonforeign areas (i.e., in the post differential areas). A post differential is a recruitment incentive based on conditions of environment in the nonforeign area that differ significantly from conditions of environment in the U.S. as a whole. Post differentials plus cost-of-living allowances (COLAs) cannot exceed 25 percent of basic pay. Post differentials are subject to Federal income taxes and are not part of basic pay for retirement purposes.

Post differential area means, for the nonforeign area COLA program, an area for which OPM has authorized a post differential. There are currently five post differential areas - American Samoa, Guam and the Commonwealth of the Northern Mariana Islands, Johnston and Sand Islands, Midway Island, and Wake Island.

Premium pay means pay for overtime, night, holiday, or Sunday work that is in addition to an employee's rate of basic pay. It includes the dollar value of compensatory time off granted in lieu of overtime pay.

Premium pay limitation means either the hourly overtime pay limitation under title 5 or the prohibition on paying any premium pay that would cause an employee's aggregate compensation for a biweekly pay period to exceed the rate of basic pay for GS-15, step 10. The biweekly premium pay limitation does not apply to overtime pay under the FLSA.

President's Pay Agent means the Directors of OPM and OMB and the Secretary of Labor, as established by Executive order. The Pay Agent establishes and modifies locality pay areas for the General Schedule, determines salary survey coverage in coordination with BLS, calculates pay gaps, and recommends locality adjustments in its annual report to the President. By law, the Pay Agent must thoroughly consider the views of the Federal Salary Council in making these determinations.

Prevailing rate system - see Federal Wage System.

Price index means, for the nonforeign area COLA program, the ratio formed by dividing the price from one area or point in time by the price for another area or point and time and multiplying the result by 100. For example, a price index of 120.11 means that the comparison area or time price is 20.11 percent higher than the base area or time price.

Primary standard means the generic description of the nature of duties and responsibilities for each of the levels on each of the nine factors of the Factor Evaluation System for position classification. All occupational classification standards developed in an FES format are based on the Primary Standard.

Progress review means communicating with employees during the appraisal period, usually about mid-way, about their performance as compared to their performance elements and standards.

Promotion pattern means the sequence of grades through which an individual proceeds under the General Schedule. There are two basic patterns, for one-grade interval work and for two-grade interval work, and they reflect a basic distinction between the two general kinds of white-collar work covered by the General Schedule. One-grade interval work generally comprises jobs in the clerical and technical occupational categories, and promotions are granted in one-grade increments. Two-grade interval work generally comprises jobs in the professional and administrative occupational categories, and promotions are granted in two-grade increments from grades GS-5 through 11 and in one-grade increments at GS-12 and beyond.

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Quality step increase (QSI) means an additional step increase that moves an employee from his or her current pay step within a GS grade to the next higher step in that grade in recognition of sustained, high quality performance. A quality step increase is a permanent increase in basic pay. Most agencies consider granting QSIs as part of their awards program.

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Rating of record - see Performance rating.

Rating official means the person who has sufficient knowledge of the employee's work to effectively review that performance and provide a performance rating.

Rating-based award - see Performance award.

Recognition means rewarding employee achievement(s) after the accomplishment has been made. Recognition usually is at the discretion of the supervisor.

Recruitment and relocation bonuses means the lump-sum payment of up to 25 percent of basic pay to a newly-appointed Federal employee (i.e., a recruitment bonus) or to a current Federal employee who must relocate (i.e., a relocation bonus) to fill a position that would otherwise be difficult to fill. In return, the employee must sign an agreement to fulfill a period of service with the agency (6-month minimum for recruitment bonuses). Agencies may pay recruitment and relocation bonuses to employees under the General Schedule, Senior Executive Service, senior-level, Executive Schedule, and certain other pay systems.

Referral bonus means an award given as a "finder's fee" to an employee who refers a job applicant who is successfully employed by the agency.

Rental equivalence means, for the nonforeign area COLA program, an approach to measuring the cost of shelter that is based on the rental value of an owned home rather than the interest payments and cost of maintenance and improvements less the investment value of the home. OPM is adopting a rental equivalence approach pursuant to the COLA settlement. In the early 1980s, BLS adopted a rental equivalence approach for the Consumer Price Index.
Rest of U.S. (RUS) means the largest General Schedule locality pay area. It is the "catch-all" area of the 48 contiguous United States, i.e., the area not in one the of 31 separate metropolitan locality pay areas established by the President's Pay Agent.

Retained pay or retained rate means a saved rate of pay that is above the maximum rate for the employee's grade. By law, an employee is entitled to pay retention under certain circumstances when his or her pay otherwise would be reduced because of a management action (e.g., a reduction in grade because of a reorganization).

Retention allowances means continuing (i.e., biweekly) payments of up to 25 percent of basic pay to an employee with unusually high or unique qualifications or to an employee who is serving a special agency need that makes it essential to retain the employee if he/she would be likely to leave the Federal Government (for any reason, including retirement) in the absence of a retention allowance. Agencies may pay retention allowances to employees under the General Schedule, Senior Executive Service, senior-level, Executive Schedule, and certain other pay systems.

Retention standard means the performance standard that describes the level of employee performance necessary to be retained in a job (i.e., the standard written one level above the unacceptable level of performance). An employee who fails to improve performance to meet a retention standard on a critical element may be demoted or removed. See also Standard.

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Series or occupational series means a specific occupation or subgroup within an occupational group and generally includes all jobs in that particular kind of work at all grade levels. Each series is designated with a four-digit numerical code (e.g., GS-0201 is the code for the Human Resources Management Series).

Severance pay means a series of payments equal to an employee's normal salary following an involuntary separation that is not for misconduct or unacceptable performance. Presidential appointees, noncareer SES appointees, Schedule C employees, and other similar political appointees are not eligible for severance pay.

Sick leave means paid time off for medical, dental, or optical examination or treatment of an employee or family member, care of a sick family member, or bereavement. Employees earn 13 days of sick leave each year (which accumulates without limit in succeeding years). Sick leave accrues incrementally, i.e., 4 hours every 2 weeks. Employees also may use sick leave for adoption purposes. Unused sick leave is not cashed out upon separation. (NOTE: Presidential appointees do not earn sick leave and cannot be charged leave for absences from work.)

Special act or service award means an award granted to recognize specific accomplishments by individuals or groups of employees. This term is no longer officially used in OPM regulations or the Central Personnel Data File data reporting system, but many agencies continue to use it to describe awards that are not based on a performance rating.

Special rates means rates of basic pay that are higher than the normal GS rates. OPM may establish special rates for a group or category of GS positions in one or more geographic areas to address existing or likely significant handicaps in recruiting or retaining well-qualified employees. Special salary rates address staffing problems caused by pay disparities, undesirable working conditions, remoteness, or any other circumstance considered appropriate. The Department of Veterans Affairs has a separate special rate authority for medical-related jobs under title 38, United States Code, and there are statutory special rates for law enforcement officers at grades GS-3 through 10.

Standard has different meanings for different applications in human resources management. Generically, the term denotes an established criterion against which duties, performance, or skills and experience, etc. are compared for the purpose of making various determinations.

Classification standard means the criteria OPM issues as required by law and which agencies use to classify the duties and responsibilities of positions or jobs to determine their proper title, series, and grade.
Performance standard means a description of a level of performance against which an employee's performance will be judged. Employee performance standards are most often expressed in terms of quality, quantity, or timeliness.
Qualification standard means [use definition provided by ES].
Retention standard means the performance standard that describes the level of employee performance necessary to be retained in a job (i.e., the standard written one level above the unacceptable level of performance).

Strategic rewards means everything valued by employees that an organization provides for the purpose of recruiting, retaining, developing, and managing the agency's human resources in support of strategic organizational goals. Strategic rewards include compensation, benefits, development and learning, and the work environment. Strategic rewards mix traditional with non-traditional rewards and make the employment relationship more meaningful and satisfying to the employee.

Suggestion award means the recognition of an idea that benefits the Federal Government in some way, such as cost savings, cost avoidance, or improvement of some aspect of Government operations or service.

Summary rating - see Performance rating.

Sunday premium pay means a 25 percent premium for non-overtime work performed on a Sunday.

Superior qualifications appointment or above minimum hiring rate means the appointment of an individual to a General Schedule position at a step above the first step of the grade based on the employee's superior qualifications or a special need of the agency for the employee's services. Agencies may set pay at the higher step only upon initial appointment or upon reappointment after a 90-day break in service.

Supervisory differential means a premium an agency may pay to a supervisor in a General Schedule position who supervises one or more employees not under the General Schedule if the continuing pay of such employees is more than the continuing pay of the supervisor. A supervisory differential is not part of the supervisor's rate of basic pay and may not be paid to an employee who supervises employees with pay rates in excess of GS-15, step 10.
Survey area
(1) for the Federal Wage System, means a part of a geographic wage area defined in OPM regulations that is surveyed to determine local prevailing rates in the wage area. The survey area wages determine the wage schedule for the wage area, including the area of application.
(2) for the General Schedule, means the area in which data are collected for locality pay purposes, usually a CMSA or MSA.

Survey Implementation Committee (SIC) means a nine-member committee established pursuant to the COLA settlement. Seven members are employee representatives from the COLA Defense Committees; two members are OPM representatives.

Sustained superior performance award (SSP) means recognition of excellent performance over a period of time. Although SSP is a term still used in many agencies, the more current term "performance award" has superseded the term.

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Technical Advisory Committee (TAC) means a three-member committee of economists established pursuant to the COLA settlement which advises the COLA Survey Implementation Committee.

Time-off award (TOA) means time off from work that is granted to employees without loss of pay or charge to leave. Time-off awards recognize employee work accomplishments.

Travel savings incentive means a cash award granted by an agency with an established program to recognize savings in travel costs realized by an employee while on official travel.

Two-grade interval work (or job) - See Promotion pattern.

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Upward feedback means input given by employees in a multi-rater assessment regarding their supervisor's performance.

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Variable pay means a lump-sum payment that is contingent on results. Variable pay is usually dependent on employee or organizational performance, or both.

Volunteerism, or time off for volunteer activities, means allowing employees to make maximum use of existing flexibilities such as alternative work schedules, annual leave, leave without pay, credit hours under flexible work schedules, and compensatory time off, where appropriate, to perform community service.

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Wage area - see Pay area.

Wage change survey, under the Federal Wage System, means a local wage survey of private sector employers conducted by telephone every other year by a Local Wage Survey Committee to update information on prevailing rates of pay found in a previous year's full-scale wage survey.

Within-grade increase (WGI) means a periodic step increase. For the General Schedule, each grade has 10 steps. Employees progress to the next higher step after completing specified waiting periods, as long as they perform at an acceptable level of competence, which is defined in OPM regulations as a level 3 performance rating (fully successful). For the Federal Wage System, each grade has five steps. FWS employees receive step increases based on specified waiting periods and satisfactory or better performance. Agencies have the authority to determine when wage employees meet the requirements for satisfactory job performance.


Strategic Management of Human Capital	Employment and Benefits	Career Opportunities