
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 5USC9508]

 
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
 
                           PART III--EMPLOYEES
 
                        Subpart I--Miscellaneous
 
  CHAPTER 95--PERSONNEL FLEXIBILITIES RELATING TO THE INTERNAL REVENUE 
                                 SERVICE
 
Sec. 9508. General workforce performance management system

    (a) In lieu of a performance appraisal system established under 
section 4302, the Secretary of the Treasury shall, within 1 year after 
the date of enactment of this section, establish for the Internal 
Revenue Service a performance management system that--
        (1) maintains individual accountability by--
            (A) establishing one or more retention standards for each 
        employee related to the work of the employee and expressed in 
        terms of individual performance, and communicating such 
        retention standards to employees;
            (B) making periodic determinations of whether each employee 
        meets or does not meet the employee's established retention 
        standards; and
            (C) taking actions, in accordance with applicable laws and 
        regulations, with respect to any employee whose performance does 
        not meet established retention standards, including denying any 
        increases in basic pay, promotions, and credit for performance 
        under section 3502, and taking one or more of the following 
        actions:
                (i) Reassignment.
                (ii) An action under chapter 43 or chapter 75 of this 
            title.
                (iii) Any other appropriate action to resolve the 
            performance problem; and

        (2) except as provided under section 1204 of the Internal 
    Revenue Service Restructuring and Reform Act of 1998, strengthens 
    the system's effectiveness by--
            (A) establishing goals or objectives for individual, group, 
        or organizational performance (or any combination thereof), 
        consistent with the Internal Revenue Service's performance 
        planning procedures, including those established under the 
        Government Performance and Results Act of 1993, division E of 
        the Clinger-Cohen Act of 1996 (Public Law 104-106; 110 Stat. 
        679), Revenue Procedure 64-22 (as in effect on July 30, 1997), 
        and taxpayer service surveys, and communicating such goals or 
        objectives to employees;
            (B) using such goals and objectives to make performance 
        distinctions among employees or groups of employees; and
            (C) using performance assessments as a basis for granting 
        employee awards, adjusting an employee's rate of basic pay, and 
        other appropriate personnel actions, in accordance with 
        applicable laws and regulations.

    (b)(1) For purposes of subsection (a)(2), the term ``performance 
assessment'' means a determination of whether or not retention standards 
established under subsection (a)(1)(A) are met, and any additional 
performance determination made on the basis of performance goals and 
objectives established under subsection (a)(2)(A).
    (2) For purposes of this title, the term ``unacceptable 
performance'' with respect to an employee of the Internal Revenue 
Service covered by a performance management system established under 
this section means performance of the employee which fails to meet a 
retention standard established under this section.
    (c)(1) The Secretary of the Treasury may establish an awards program 
designed to provide incentives for and recognition of organizational, 
group, and individual achievements by providing for granting awards to 
employees who, as individuals or members of a group, contribute to 
meeting the performance goals and objectives established under this 
chapter by such means as a superior individual or group accomplishment, 
a documented productivity gain, or sustained superior performance.
    (2) A cash award under subchapter I of chapter 45 may be granted to 
an employee of the Internal Revenue Service without the need for any 
approval under section 4502(b).
    (d)(1) In applying sections 4303(b)(1)(A) and 7513(b)(1) to 
employees of the Internal Revenue Service, ``30 days'' may be deemed to 
be ``15 days''.
    (2) Notwithstanding the second sentence of section 5335(c), an 
employee of the Internal Revenue Service shall not have a right to 
appeal the denial of a periodic step increase under section 5335 to the 
Merit Systems Protection Board.

(Added Pub. L. 105-206, title I, Sec. 1201(a), July 22, 1998, 112 Stat. 
715.)

                       References in Text

    The date of enactment of this section, referred to in subsec. (a), 
is the date of enactment of Pub. L. 105-206, which was approved July 22, 
1998.
    Section 1204 of the Internal Revenue Service Restructuring and 
Reform Act of 1998, referred to in subsec. (a)(2), is section 1204 of 
Pub. L. 105-206, which is set out as a note under section 7804 of Title 
26, Internal Revenue Code.
    The Government Performance and Results Act of 1993, referred to in 
subsec. (a)(2)(A), is Pub. L. 103-62, Aug. 3, 1993, 107 Stat. 285, which 
enacted section 306 of this title, sections 1115 to 1119, 9703, and 9704 
of Title 31, Money and Finance, and sections 2801 to 2805 of Title 39, 
Postal Service, amended section 1105 of Title 31, and enacted provisions 
set out as notes under sections 1101 and 1115 of Title 31. For complete 
classification of this Act to the Code, see Short Title of 1993 
Amendment note set out under section 1101 of Title 31 and Tables.
    The Clinger-Cohen Act of 1996, referred to in subsec. (a)(2)(A), is 
div. D (Secs. 4001-4402) and div. E (Secs. 5001-5703) of Pub. L. 104-
106, Feb. 10, 1996, 110 Stat. 642, 679. Div. E of Pub. L. 104-106 is 
classified principally to chapter 25 (Sec. 1401 et seq.) of Title 40, 
Public Buildings, Property, and Works. For complete classification of 
this Act to the Code, see Short Title note set out under section 1401 of 
Title 40, Short Title of 1996 Amendment note set out under section 251 
of Title 41, Public Contracts, and Tables.

                  Section Referred to in Other Sections

    This section is referred to in sections 9501, 9507, 9510 of this 
title.
