5. Establish reporting requirements that apply to both the modified standard system and any broadbanding system. In conjunction with the law changes proposed above, the director of OPM should submit proposed legislation to Congress by fall 1994 that would expressly authorize OPM to collect compensation data from agencies and require advance public notice of significant classification and pay actions. OPM will develop specific reporting requirements, including the following: --- Agencies will be required to issue a 60-day advance public notice regarding their intention to upgrade or downgrade any group of positions with 100 or more incumbents, or to authorize special salary rates or a mission-critical differential. --- Agencies will be required to provide OPM with data on compensation practices. To the maximum extent possible, the data will be collected through OPM's Central Personnel Data File system, which will be enhanced as necessary. OPM will issue an annual public report providing selected compensation data (e.g., number and percentage employees in full performance level grades or bands by job category and agency, average and median salaries by job category and agency, total payroll costs by job category and agency, etc.), with historical data also provided for comparison purposes. The overall fiscal impact of the proposed changes to the classification system (i.e., broadbanding and decentralization) can be monitored and controlled within agency budget constraints. Agency decisions could produce additional costs in some areas while providing offsetting savings in other areas. As the classification system is simplified and automated and as line managers assume responsibility for classifying positions, the amount of staff years devoted to classification by personnelists (and associated administrative costs) should be significantly reduced in the long term. No cost estimate can be assigned to the special pay flexibilities being proposed since they are discretionary. It is presumed that agencies will have to absorb within their budgets any increased costs associated with use of these discretionary authorities. It should be noted that elimination of the fixed steps in the GS pay system would prevent $80 million in conversion costs (not anticipated in the President's budget) that would otherwise result from slotting PMRS- covered managers back into a fixed-step schedule.
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