Establish Reports For Standard and Broadband Systems

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.