[Code of Federal Regulations]
[Title 5, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR430.403]

[Page 330-331]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
                CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT
 
PART 430_PERFORMANCE MANAGEMENT--Table of Contents
 
     Subpart D_Performance Appraisal Certification for Pay Purposes
 
Sec. 430.403  System certification.

    (a) The performance appraisal system(s) covering senior employees 
must be certified by OPM, with OMB concurrence, as making meaningful 
distinctions based on relative performance before an agency may apply a 
maximum annual rate of basic pay for senior executives equal to the rate 
for level II of the Executive Schedule or apply an annual aggregate 
limitation on payments to senior employees equal to the salary of the 
Vice President under 5 U.S.C. 5307(d)). OPM, with OMB concurrence, will 
certify an agency's appraisal system(s) only when a review of that 
system's design, application, and administration reveals that the agency 
meets the certification criteria established in Sec. 430.404 and has 
followed the procedures for certifying agency appraisal systems in Sec. 
430.405.
    (b) Except as provided in paragraph (c) of this section, agencies 
subject to 5 U.S.C. chapter 43 and 5 CFR part 430 seeking certification 
of their appraisal systems must submit systems that have been approved 
by OPM under Sec. 430.312 or Sec. 430.210, as applicable. In some 
agencies, the performance appraisal system(s) covers employees in many 
organizations and/or components, and their ability to meet the 
certification criteria in Sec. 430.404 may vary significantly. In such 
cases, an agency may establish and/or submit separate performance 
appraisal systems for each of these distinct organizations and/or 
components to ensure timely certification of those performance appraisal 
system(s) that meet the criteria. New appraisal systems established 
under 5 CFR part 430, subpart B or C, as applicable based on the 
employees covered, must be approved by OPM.

[[Page 331]]

    (c) When an agency establishes a new appraisal system for the 
purpose of seeking certification under this subpart, the agency may 
submit that system for certification even if it has not yet been 
approved by OPM under Sec. 430.312 or Sec. 430.210, as applicable. OPM 
will certify, with OMB concurrence, only those systems that OPM 
determines meet the approval requirements of 5 CFR part 430, subpart B 
or C, as applicable.
    (d) An agency must establish an appraisal system(s), as defined in 
Sec. 430.402, for its senior professionals that meets the requirements 
of 5 CFR part 430, subpart B, and is separate from the system(s) 
established to cover its SES members under 5 CFR part 430, subpart C. 
For the purpose of certification under this subpart, such senior 
professional appraisal system(s) must meet the certification criteria 
set forth in Sec. 430.404. At its discretion, an agency may include 
system features in its senior professional appraisal system(s) that are 
the same as, or similar to, the features of its SES appraisal system(s), 
as appropriate, including procedures that correspond to the higher level 
review procedures under Sec. 430.308(b) and PRB reviews of summary 
ratings under Sec. 430.308(c).
    (e) For agencies subject to 5 U.S.C. chapter 43 and 5 CFR part 430, 
OPM approval of the agency performance appraisal system(s) is a 
prerequisite to certification. Agencies not subject to the appraisal 
provisions of 5 U.S.C. chapter 43 and 5 CFR part 430 and which are 
seeking certification of their appraisal system(s) under this subpart 
must submit appropriate documentation to demonstrate that each system 
complies with the appropriate legal authority that governs the 
establishment, application, and administration of that system.