[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 687 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 687
To amend title 5, United States Code, to provide for an alternative
removal for performance or misconduct for Federal employees.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 23, 2025
Mr. Loudermilk (for himself, Mr. Carter of Georgia, Mrs. Houchin, Mr.
Crawford, Mr. Owens, Mr. Collins, Mrs. Luna, Mr. Webster of Florida,
Mr. Mann, Mr. Scott Franklin of Florida, Mr. Meuser, Mr. Babin, Ms.
Tenney, Mr. Baird, Mr. Steube, and Mr. Burchett) introduced the
following bill; which was referred to the Committee on Oversight and
Government Reform
_______________________________________________________________________
A BILL
To amend title 5, United States Code, to provide for an alternative
removal for performance or misconduct for Federal employees.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Modern Employment
Reform, Improvement, and Transformation Act of 2025'' or the ``MERIT
Act of 2025''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Termination of authority for chapter 43 performance-based
actions.
Sec. 3. Adverse actions based on performance or conduct.
Sec. 4. Prohibition on grieving adverse actions and reductions in
force.
Sec. 5. Actions against senior executives for performance or conduct.
Sec. 6. Actions against supervisors for performance or conduct.
Sec. 7. Modification of procedures for furlough.
Sec. 8. Reduction of annuity of employee convicted of a felony for
which an adverse action is or would have
been taken.
Sec. 9. Authority to recoup bonuses or awards paid to employees.
Sec. 10. Extension of probationary period for positions within the
Senior Executive Service.
Sec. 11. Extension of probationary period for employees in the
competitive service.
Sec. 12. Application.
SEC. 2. TERMINATION OF AUTHORITY FOR CHAPTER 43 PERFORMANCE-BASED
ACTIONS.
(a) Repeal.--Section 4303 of title 5, United States Code, is
repealed.
(b) Application.--Subsection (a) shall not apply to any
performance-based action under section 4303 of title 5, United States
Code, commenced before the effective date provided in section 12.
(c) Conforming Amendments.--
(1) Title 5.--Title 5, United States Code, is amended--
(A) in section 2302(e)(1)(A), by striking ``3504,
and 4303(e)'' and inserting ``and 3504'';
(B) in section 4302(c)(6), by striking ``but only
after an opportunity to demonstrate acceptable
performance'';
(C) in section 7512, by striking subparagraph (D)
and redesignating subparagraphs (E) and (F) as
subparagraphs (D) and (E), respectively;
(D) in section 7701(c)(1), by striking ``decision''
and all that follows through ``preponderance of the
evidence'' and inserting ``decision is supported by a
preponderance of the evidence'';
(E) in section 9508(d), by striking ``(1) In
applying'' and all that follows through ``(2)''; and
(F) in section 9902(a)(2), by striking ``sections
4302 and 4303(e)'' and inserting ``section 4302''.
(2) Title 31.--Section 732(d)(3) of title 31, United States
Code, is amended by striking ``consistent with section 4303 of
title 5''.
(d) Clerical Amendment.--The table of sections for chapter 43 of
title 5, United States Code, is amended by striking the item relating
to section 4303.
SEC. 3. ADVERSE ACTIONS BASED ON PERFORMANCE OR CONDUCT.
(a) In General.--Section 7513 of title 5, United States Code, is
amended to read as follows:
``Sec. 7513. Cause and procedure
``(a) In General.--
``(1) Under regulations prescribed by the Office of
Personnel Management, an agency may take an action described in
paragraphs (1) through (4) of section 7512 against an employee
if the agency determines by a preponderance of the evidence the
performance or misconduct of the employee warrants such action.
``(2)(A) When making an initial decision on an action
described in paragraphs (1) through (4) of section 7512, the
deciding employee of the agency shall exclusively apply the
following factors:
``(i) The nature and seriousness of the offense,
and its relation to the employee's duties, position,
and responsibilities, including whether the offense was
intentional or technical or inadvertent, or was
committed maliciously or for gain, or was frequently
repeated.
``(ii) The employee's job level and type of
employment, including supervisory or fiduciary role,
and prominence of the position.
``(iii) The employee's past disciplinary records.
``(iv) The employee's past work record, including
length of service, performance on the job, ability to
get along with fellow workers, and dependability.
``(v) Mitigating circumstances surrounding the
offense such as unusual job tensions personality
problems, mental impairment, harassment, or bad faith,
malice or provocation on the part of others involved in
the matter.
``(B) The agency shall review the initial decision and
uphold such decision if it is supported by substantial
evidence.
``(b) Pay of Certain Employees Subject to a Reduction in Grade.--
``(1) Notwithstanding any other provision of law, an
employee subject to a reduction in grade shall, beginning on
the date of such reduction, receive the annual rate of pay
applicable to such grade.
``(2) An employee subject to a reduction in grade may not
be placed on administrative leave during the period during
which an appeal (if any) under this section is ongoing, and may
only receive pay if the employee reports for duty or is
approved to use accrued unused annual, sick, family medical,
military, or court leave.
``(3) If an employee subject to a reduction in grade does
not report for duty or receive approval to use accrued unused
leave, such employee shall not receive pay or other benefits.
``(c) Procedure.--
``(1)(A) The aggregate period for written notice, response,
and final decision of actions described in paragraphs (1)
through (4) of section 7512 may not exceed 15 business days
unless there are reasonable causes to believe the employee has
committed a crime for which a sentence of imprisonment may be
imposed.
``(B) The period for which an employee may respond to a
notice of actions described in paragraphs (1) through (4) of
section 7512 in writing and to furnish affidavits and other
documentary evidence in support of the response shall be 7
business days.
``(2) The agency shall issue a final decision with respect
to actions described in paragraphs (1) through (4) of section
7512 not later than 15 business days after the agency provides
notice, including a file containing all the evidence in support
of the proposed action, to the employee. The decision shall be
in writing and shall include the specific reasons therefor.
``(d) PIP.--The agency may carry out such actions described in
paragraphs (1) through (4) of section 7512 without first placing an
employee on a performance improvement plan.
``(e) Employee Rights.--An employee against whom actions described
in paragraphs (1) through (4) of section 7512 is proposed is entitled
to--
``(1) a written notice stating the specific reasons for the
proposed action;
``(2) be represented by an attorney or other
representative; and
``(3) a written decision and the specific reasons therefor
at the earliest practicable date.
``(f) Hearing.--An agency may provide, by regulation, for a hearing
which may be in lieu of or in addition to the opportunity to answer
provided under subsection (c)(1)(b) of this section.
``(g) Appeal.--An employee against whom an action described in
paragraphs (1) through (4) of section 7512 is taken is entitled to
appeal to the Merit Systems Protection Board under section 7701 of this
title not later than 10 business days after the effective date of the
action.
``(h) Procedure.--Copies of the notice of proposed action, the
answer of the employee when written, a summary thereof when made
orally, the notice of decision and reasons therefor, and any order
effecting an action described in paragraphs (1) through (4) of section
7512, together with any supporting material, shall be maintained by the
agency and shall be furnished to the Board upon its request. Upon the
affected employee's request, copies of the documents described in the
preceding sentence shall be furnished to the employee, to the extent
those documents were not provided under subsection (c).''.
(b) Discipline of Supervisors Based on Retaliation Against
Whistleblowers.--Section 7515(b)(2)(B) of title 5, United States Code,
is amended--
(1) in clause (i), by striking ``not later than 14 days''
and inserting ``not more than 7 business days''; and
(2) in clause (ii), by striking ``14-day period'' and
inserting ``7-business-day period''.
(c) Application.--The amendments made by subsections (a) and (b)
shall not apply to any action under section 7513 or 7515 of title 5,
United States Code, as amended by those subsections, respectively,
commenced before the effective date provided in section 12.
SEC. 4. PROHIBITION ON GRIEVING ADVERSE ACTIONS AND REDUCTIONS IN
FORCE.
Section 7121 of title 5, United States Code, is amended--
(1) in subsection (a)(1), by striking ``the settlement
of'';
(2) in subsection (c)--
(A) by redesignating paragraphs (1) through (5) as
paragraphs (5) through (9), respectively; and
(B) by inserting before paragraph (5), as so
redesignated, the following:
``(1) an adverse action under subchapter II of chapter 75;
``(2) a furlough of more than 30 days by a reduction in
force action under subchapter I of chapter 35;
``(3) a separation by a reduction in force action under
subchapter I of chapter 35;
``(4) a demotion by a reduction in force action under
subchapter I of chapter 35;'';
(3) in subsection (e)--
(A) in paragraph (1)--
(i) by striking ``(1) Matters'' and all
that follows through ``but not both.''; and
(ii) in the second sentence, by striking
``Similar matters'' and inserting ``Matters
similar to those covered under subchapter II of
chapter 75''; and
(B) by striking paragraph (2); and
(4) in subsection (f)--
(A) by striking the first sentence; and
(B) in the second sentence, by striking ``In
matters similar to those covered under sections 4303
and 7512 of this title'' and inserting ``In matters
similar to those covered under subchapter II of chapter
75''.
SEC. 5. ACTIONS AGAINST SENIOR EXECUTIVES FOR PERFORMANCE OR CONDUCT.
(a) Repeal of Pay Retention for Career Appointees Removed From the
Senior Executive Service.--Section 3594(c)(1)(B) of title 5, United
States Code, is amended to read as follows:
``(B)(i) any career appointee placed under subsection (a)
or (b)(2) of this section shall be entitled to receive basic
pay at the highest of--
``(I) the rate of basic pay in effect for the
position in which placed;
``(II) the rate of basic pay in effect at the time
of the placement for the position the career appointee
held in the civil service immediately before being
appointed to the Senior Executive Service; or
``(III) the rate of basic pay in effect for the
career appointee immediately before being placed under
subsection (a) or (b) of this section; and
``(ii) any career appointee placed under subsection (b)(1)
of this section shall be entitled to receive basic pay at the
rate of basic pay in effect for the position in which placed;
and''.
(b) Appraisal System Requirements.--Section 4314(b) of title 5,
United States Code, is amended--
(1) in paragraph (3), by inserting before the semicolon the
following: ``or, as warranted, from the civil service''; and
(2) in paragraph (4), by inserting before the period at the
end the following: ``or, as warranted, from the civil
service''.
(c) Suspension for 14 Days or Less.--Paragraph (1) of section 7501
of title 5, United States Code, is amended to read as follows:
``(1) `employee' means--
``(A) an individual in the competitive service who
is not serving a probationary period or trial period
under an initial appointment or who has completed 1
year of current continuous employment in the same or
similar positions under other than a temporary
appointment limited to 1 year or less; or
``(B) a career appointee in the Senior Executive
Service who--
``(i) has completed the probationary period
prescribed under section 3393(d); or
``(ii) was covered by the provisions of
subchapter II of this chapter immediately
before appointment to the Senior Executive
Service; and''.
(d) Modification of Cause and Procedure for Suspension and
Termination.--Section 7543 of title 5, United States Code, is amended
to read as follows:
``Sec. 7543. Cause and procedure
``(a) Under regulations prescribed by the Office of Personnel
Management, an agency may take an action covered by this subchapter
against an employee if the agency determines by a preponderance of the
evidence the performance or misconduct of the employee warrants such
action.
``(b) When making an initial decision on an action covered by this
subchapter, the deciding employee of the agency shall exclusively apply
the following factors--
``(1) the nature and seriousness of the offense, and its
relation to the employee's duties, position, and
responsibilities, including whether the offense was intentional
or technical or inadvertent, or was committed maliciously or
for gain, or was frequently repeated; and
``(2) the employee's job level and type of employment,
including supervisory or fiduciary role, and prominence of the
position.
``(c) The agency shall review the initial decision and uphold such
decision if it is supported by substantial evidence.
``(d)(1)(A) The aggregate period for written notice, response, and
final decision of actions covered by this subchapter may not exceed 15
business days unless there are reasonable causes to believe the
employee has committed a crime for which a sentence of imprisonment may
be imposed.
``(B) The period for which an employee may respond to a notice of
actions covered by this subchapter in writing and to furnish affidavits
and other documentary evidence in support of the response shall be 7
business days. (2) The agency shall issue a final decision with respect
to a covered actions not later than 15 business days after the agency
provides notice, including a file containing all the evidence in
support of the proposed action, to the employee. The decision shall be
in writing and shall include the specific reasons therefor.
``(e) An employee against whom an action covered by this subchapter
is proposed is entitled to--
``(1) a written notice stating the specific reasons for the
proposed action;
``(2) be represented by an attorney or other
representative; and
``(3) a written decision and the specific reasons therefor
at the earliest practicable date.
``(f) An agency may provide, by regulation, for a hearing which may
be in lieu of or in addition to the opportunity to answer provided
under subsection (d)(1)(B) of this section.
``(g) An employee against whom an action is taken under this
section is entitled to appeal to the Merit Systems Protection Board
under section 7701 of this title not later than 10 business days after
the effective date of the action.
``(h) Copies of the notice of proposed action, the answer of the
employee when written, a summary thereof when made orally, the notice
of decision and reasons therefor, and any order effecting an action
covered by this subchapter, together with any supporting material,
shall be maintained by the agency and shall be furnished to the Board
upon its request. Upon the affected employee's request, copies of the
documents described in the preceding sentence shall be furnished to the
employee, to the extent those documents were not provided under
subsection (c).
``(i) In this section, the term `misconduct' includes neglect of
duty, malfeasance, or failure to accept a directed reassignment or to
accompany a position in a transfer of function.''.
(e) Relation to Other Provisions of Law.--Section 3592(b)(1) of
title 5, United States Code, deso not apply to an action under section
7543(a), as amended in subsection (d).
(f) Conforming Amendments.--Title 5, United States Code, is
amended--
(1) in section 3592(b)(2)(B), by striking ``any
disciplinary action'' and inserting ``any action under section
7543'';
(2) in section 3593(a)(2), by striking ``misconduct,
neglect of duty, malfeasance,'' and inserting ``a removal under
section 7543'';
(3) in section 3594, by adding at the end the following:
``(d) This section shall not apply to any career appointee who is
subject to a personnel action under subchapter V of chapter 75.''; and
(4) in section 7542, by striking ``or to a removal under
section 3592 or 3595'' and inserting the following: ``to a
removal from the Senior Executive Service under section 3592 of
this title, to a reduction in force as defined in section
3595(d) of this title, or to a transfer of function as
described in section 3595(e)''.
(g) Application.--The amendments made by this section shall not
apply to any personnel action under subchapter V of chapter 75 of title
5, United States Code, commenced before the effective date of this Act.
SEC. 6. ACTIONS AGAINST SUPERVISORS FOR PERFORMANCE OR CONDUCT.
Subchapter II of title 5, United States Code, is amended--
(1) by redesignating sections 7514 and 7515 as sections
7516 and 7517, respectively; and
(2) by inserting after section 7513 the following:
``Sec. 7514. Supervisors
``(a) In General.--
``(1) The agency may take an action covered by this
subchapter against a supervisor, as defined in section
7103(a)(10), if the agency determines by a preponderance of the
evidence that the performance or misconduct of the supervisor
warrants such action.
``(2) When making an initial decision on an action covered
by this subchapter, the deciding employee of the agency shall
exclusively apply the following factors:
``(A) The nature and seriousness of the offense,
and its relation to the supervisor's duties, position,
and responsibilities, including whether the offense was
intentional or technical or inadvertent, or was
committed maliciously or for gain, or was frequently
repeated.
``(B) The supervisor's job level and type of
employment, including supervisory or fiduciary role,
and prominence of the position.
``(3) The agency shall review the initial decision and
uphold such decision if it is supported by substantial
evidence.
``(4) A supervisor against whom an action covered by this
subchapter is proposed is entitled to--
``(A) a written notice stating the specific reasons
for the proposed action;
``(B) be represented by an attorney or other
representative; and
``(C) a written decision and the specific reasons
therefor at the earliest practicable date.
``(5) The agency may carry out such action covered by this
subchapter without first placing a supervisor on a performance
improvement plan.
``(6) The procedures under chapter 43 shall not apply to an
action covered by this subchapter.
``(b) Procedure.--(1)(A) The aggregate period for written notice,
response, and final decision of actions covered by this subchapter may
not exceed 15 business days unless there are reasonable causes to
believe the employee has committed a crime for which a sentence of
imprisonment may be imposed.
``(B) The period for which an employee may respond to a notice of
actions covered by this subchapter in writing and to furnish affidavits
and other documentary evidence in support of the response shall be 7
business days.
``(2) The agency shall issue a final decision with respect to a
covered action not later than 15 business days after the agency
provides notice, including a file containing all the evidence in
support of the proposed action, to the employee. The decision shall be
in writing and shall include the specific reasons therefor.
``(c) Reduction in Grade.--
``(1) A reduction in grade under subsection (a) shall be
carried out as a reduction in grade for which the covered
individual is qualified, that the agency determines is
appropriate, and that reduces the annual rate of pay of the
supervisor.
``(2) Notwithstanding any other provision of law, any
supervisor subject to a reduction in grade--
``(A) shall, beginning on the date of such
demotion, receive the annual rate of pay applicable to
such grade;
``(B) may not be placed on administrative leave
during the period during which an appeal (if any) under
this section is ongoing, and may only receive pay if
the supervisor reports for duty or is approved to use
accrued unused annual, sick, family medical, military,
or court leave; and
``(C) who does not report for duty or receive
approval to use accrued unused leave shall not receive
pay or other benefits.
``(d) Definition.--In this section, the term `supervisor' has the
meaning given that term under section 7103(a).''.
SEC. 7. MODIFICATION OF PROCEDURES FOR FURLOUGH.
(a) Furlough of 14 Days or Less; Emergency Furlough.--Subchapter I
of chapter 75 of title 5, United States Code, is amended--
(1) in section 7501, as amended by section 5(c),--
(A) in paragraph (1) by striking ``and'' at the
end;
(B) by redesignating paragraph (2) as paragraph
(4); and
(C) by inserting the following after paragraph (1)
the following:
``(2) `furlough' has the meaning given that term in section
7511(a)(5);
``(3) `emergency furlough' means a furlough due to a lapse
in appropriations;'';
(2) in section 7502, by striking ``This subchapter'' and
all that follows through ``this title.'' and inserting the
following: ``This subchapter applies to--
``(1) a suspension for 14 days or less, but not a
suspension under section 7521 or 7532 or any action initiated
under section 1215;
``(2) a furlough for 14 days or less; and
``(3) an emergency furlough of any duration.'';
(3) by redesignating section 7504 as section 7505; and
(4) by inserting after section 7503, the following:
``Sec. 7504. Furlough and emergency furlough cause and procedure
``(a) General Furlough.--
``(1) In general.--An employee may be subject to a furlough
for such cause as will promote the efficiency of the service.
Any employee furloughed under this section is entitled to the
procedures established under the regulations promulgated under
paragraph (2).
``(2) Procedures.--Not later than 180 days after the date
of enactment of this section, the Office of Personnel
Management shall promulgate regulations providing for--
``(A) the circumstances under which an employee may
be furloughed under this section;
``(B) the procedures to be afforded furloughed
employees, including, to the extent appropriate and
practicable under the circumstances of the furlough
action--
``(i) a written notice stating the specific
reasons for the proposed action;
``(ii) be represented by an attorney or
other representative; and
``(iii) a written decision and the specific
reasons therefor at the earliest practicable
date; and
``(C) the materials that shall be furnished to a
furloughed employee and the Merit Systems Protection
Board upon request of the employee or the Board.
``(b) Emergency Furlough.--
``(1) In general.--An employee may be subject to an
emergency furlough.
``(2) Procedures.--
``(A) Notice.--Under regulations prescribed by the
Office of Personnel Management, any employee subject to
an emergency furlough shall be afforded notice
explaining the reasons for the emergency furlough. If
the notice cannot be provided in advance of the
emergency furlough, notice shall be provided as soon as
reasonably practicable.
``(B) Other procedures.--No other procedures,
including those provided under subsection (a) or any
other provision of this title, shall be available to
any employee subject to an emergency furlough under
this subsection.
``(3) Definition.--For the purposes of this section, the
term `employee' means any employee described under section
7501(1).''.
(b) Furlough of More Than 14 Days.--Subchapter II of chapter 75 of
title 5, United States Code, is amended--
(1) in section 7511(a)(5) by inserting before the period
the following: ``, but does not include an emergency furlough
as defined in section 7501 of title 5''.
(2) in section 7512, as amended by section 2(c)--
(A) in paragraph (5) by striking ``a furlough of 30
days or less'' and inserting ``a furlough of more than
14 days but less than 31 days'';
(B) in subparagraph (D), as redesignated by section
2(c), by striking ``or'' at the end;
(C) in subparagraph (E), as redesignated by section
2(c), by striking the period at the end and inserting
``; or''; and
(D) by adding at the end the following:
``(F) an emergency furlough action under section
7504.'';
(3) by inserting after section 7514, as added by section 6,
the following:
``Sec. 7515. Furlough cause and procedure
``(a) In General.--An employee may be subject to a furlough for
such cause as will promote the efficiency of the service. Any employee
furloughed under this section is entitled to the procedures established
under the regulations promulgated under subsection (b).
``(b) Procedures.--Not later than 180 days after the date of
enactment of this section, the Office of Personnel Management shall
promulgate regulations providing for--
``(1) the circumstances under which an employee may be
furloughed under this section;
``(2) the procedures provided under section 7513 to the
extent appropriate and practicable under the circumstances of
the furlough action; and
``(3) the materials that shall be furnished to a furloughed
employee and the Merit Systems Protection Board upon request of
the employee or the Board.
``(c) Appeal.--An employee against whom a furlough action is taken
under this section is entitled to appeal to the Merit Systems
Protection Board under section 7701 not later than 10 business days
after the effective date of the action.''.
(d) Administrative Law Judges.--Section 7521(b) of title 5, United
States Code, is amended--
(1) in subparagraph (B) by striking ``or'' at the end;
(2) in subparagraph (C) by striking the period at the end
and inserting ``or''; and
(3) by adding at the end the following:
``(D) an emergency furlough action under section
7504.''.
(e) Technical Amendments.--
(1) Section 7503.--The heading of section 7503 of title 5,
United States Code, is amended by striking ``Cause and
procedure'' and inserting ``Suspension cause and procedure'',.
(2) Section 7513.--Section 7513 of title 5, United States
Code, is amended by striking ``Cause and procedure'' and
inserting ``Cause and procedure for actions other than
furlough''.
(f) Clerical Amendments.--
(1) Subchapter i of chapter 75 of title 5.--The table of
sections for subchapter I of chapter 75 of title 5, United
States Code, is amended by striking the items relating to
sections 7503 and 7504 and inserting the following:
``7503. Suspension cause and procedure.
``7504. Furlough and emergency furlough cause and procedure.
``7505. Regulations.''.
(2) Subchapter ii of chapter 75 of title 5.--The table of
sections for subchapter II of chapter 75 of title 5, United
States Code, is amended by striking the items relating to
sections 7513 through 7515 and inserting the following:
``7513. Cause and procedure for actions other than furlough.
``7514. Supervisors.
``7515. Furlough cause and procedure.
``7516. Regulations.
``7517. Discipline of supervisors based on retaliation against
whistleblowers.''.
(g) Application.--Notwithstanding section 12, the amendments made
by this section shall take effect on the earlier of--
(1) the date that is 180 days after the date of enactment
of this Act; or
(2) the date on which the Office of Personnel Management
promulgates regulations provided under sections 7504 and 7515
of title 5, United States Code, as added by this section.
SEC. 8. REDUCTION OF ANNUITY OF EMPLOYEE CONVICTED OF A FELONY FOR
WHICH AN ADVERSE ACTION IS OR WOULD HAVE BEEN TAKEN.
(a) Reduction of Annuity of Employee Convicted of a Felony for
Which an Adverse Action Is Taken.--
(1) In general.--Subchapter II of chapter 83 of title 5,
United States Code, is amended by adding at the end the
following:
``Sec. 8323. Reduction of benefits of employees convicted of certain
crimes
``(a) Reduction of Annuity.--
``(1) In general.--The felonious service of a covered
individual shall not be taken into account for purposes of
calculating an annuity with respect to the individual under
subchapter III of this chapter or chapter 84 if--
``(A) the covered individual is finally convicted
of a felony; and
``(B) the head of the agency at which the
individual was employed determines that the conviction
was based on the acts or omissions of the covered
individual that--
``(i) were taken or not taken in the
performance of the covered individual's
official duties at the agency; and
``(ii) are sufficient to support a removal
action under section 7513, 7543, or any other
provision of law against the covered
individual.
``(2) Procedures.--A covered individual against whom a
determination is made under paragraph (1) shall be afforded--
``(A) notice of the determination not later than 15
business days in advance of a final order under
paragraph (3); and
``(B) an opportunity to respond to the
determination by not later than 10 business days after
receipt of the notice.
``(3) Final order.--The head of the agency shall issue a
final order to carry out paragraph (1) not later than--
``(A) in the case of a covered individual who
responds under paragraph (2)(B), 5 business days after
receiving the response from the covered individual, to
the maximum extent practicable; or
``(B) in the case of a covered individual who does
not so respond, 15 business days after the date on
which the head of the agency provided notice to the
individual under paragraph (2)(A), to the maximum
extent practicable.
``(4) Appeal.--A covered individual with respect to whom an
annuity is to be reduced under this subsection may appeal the
final order under paragraph (3) to the Merit Systems Protection
Board in accordance with any regulations that the Board may
prescribe for purposes of this subsection. An appeal may not be
made under this paragraph later than that date that is 10
business days after the date on which an order is issued under
paragraph (3).
``(b) Administrative Requirements.--
``(1) In general.--Not later than 30 business days after
the date on which the head of an agency issues a final order
under subsection (a) or a final decision of the Merit Systems
Protection Board is rendered (as the case may be) with respect
to an individual, the applicable employing agency shall amend
the covered individual's retirement records to reflect the
period of service that is no longer creditable by operation of
this section and transmit the amended records to the Director
of the Office of Personnel Management.
``(2) Annuitants.--With respect to any covered individual
who is an annuitant on the date on which a final order is so
issued, the Director of the Office of Personnel Management
shall, not later than 30 business days after the receipt of
amended retirement records from an agency under paragraph (1),
recalculate the annuity of the annuitant.
``(c) Lump-Sum Annuity Credit.--A covered individual with respect
to whom an annuity is reduced under subsection (a) shall be entitled to
be paid so much of the individual's lump-sum credit as is attributable
to the period of felonious service.
``(d) Spouse Exception.--The spouse of any covered individual
referred to in subsection (a) shall be eligible for spousal annuity
benefits that, but for subsection (a), would otherwise have been
payable if the Attorney General of the United States or the attorney
general of a State, a territory, or the District of Columbia determines
that the spouse fully cooperated with authorities in the conduct of a
criminal investigation and subsequent prosecution of the individual
that resulted in the benefit reduction.
``(e) Application.--Nothing in this section shall be construed to
affect or otherwise mitigate the application of any other section of
this subchapter.
``(f) Definitions.--In this section--
``(1) the term `covered individual' means--
``(A) an individual who is removed from a position
as an employee (as defined in section 2105) in the
civil service for performance or misconduct under
section 7513, 7543, or any other provision of law; or
``(B) an individual who--
``(i) is an employee (as defined in section
2105) subject to a removal action for
performance or misconduct under section 7513,
7543, or any other provision of law; and
``(ii) voluntarily separates from service
with the employing agency prior to the issuance
of a final decision with respect to the removal
action;
``(2) the term `felonious service' means, with respect to a
covered individual, the period of service--
``(A) beginning on the date on which the head of
the employing agency determines that the individual
commenced engaging in the acts or omissions that gave
rise to the removal action or proposed removal action
described in paragraph (1); and
``(B) ending on the date that is the earlier of--
``(i) the date on which the individual is
removed from or voluntarily separates from a
position at the agency; or
``(ii) the date on which the individual
ceases engaging in the acts or omissions that
gave rise to the removal action or proposed
removal action described in paragraph (1);
``(3) the term `finally convicted' or `final conviction'
refers to a conviction of a felony--
``(A) that has not been appealed and is no longer
appealable because the time for taking an appeal has
expired; or
``(B) that has been appealed and the appeals
process for which is completed;
``(4) the term `lump-sum credit' has the meaning given that
term in section 8331(8) or 8401(19) (as the case may be); and
``(5) the term `service' has the meaning given that term in
section 8331(12) or 8401(26) (as the case may be).''.
(2) Clerical amendment.--The table of sections for
subchapter II of chapter 83 of title 5, United States Code, is
amended by adding at the end the following:
``8323. Reduction of benefits of employees convicted of certain
crimes.''.
(b) Application.--Section 8323 of title 5, United States Code, as
added by subsection (a), shall apply to acts or omissions described in
subsection (a)(1)(B) of that section occurring after the date of
enactment of this Act.
(c) Regulations.--The Office of Personnel Management may prescribe
regulations to carry out this section and the amendments made by this
section.
SEC. 9. AUTHORITY TO RECOUP BONUSES OR AWARDS PAID TO EMPLOYEES.
(a) Adverse Findings and Employees Under Investigation.--Chapter 45
of title 5, United States Code, is amended by adding at the end the
following:
``Subchapter IV--Limitations on Bonus Authority
``Sec. 4531. Certain forms of misconduct
``(a) Definitions.--In this section:
``(1) Adverse finding.--
``(A) In general.--The term `adverse finding' means
a determination by the head of the agency employing an
employee that the conduct of the employee--
``(i) violated a policy of the agency for
which the employee may be removed or suspended
for a period of not less than 14 days; or
``(ii) violated a law for which the
employee may be imprisoned for more than 1
year.
``(B) Basis.--A determination described in
subparagraph (A) may be based on an investigation by, a
determination of, or information provided by the
Inspector General or another senior ethics official of
an agency or the Comptroller General of the United
States, as part of carrying out an activity, authority,
or function of the Inspector General, senior ethics
official, or Comptroller General, respectively, under a
provision of law other than this section.
``(2) Agency.--The term `agency' has the meaning given the
term in section 551.
``(3) Bonus.--The term `bonus' means any performance award
or cash award under--
``(A) section 4505a;
``(B) section 5384; or
``(C) section 5754.
``(4) Employee.--The term `employee' means an employee of
an agency.
``(b) Prohibition.--The head of an agency may not award a bonus to
an employee of the agency until the date that is 5 years after the end
of the fiscal year during which the head of an agency makes an adverse
finding relating to the employee.
``(c) After Bonus Awarded.--
``(1) In general.--For a bonus awarded to an employee after
the date of enactment of this section, if the head of the
agency employing the employee makes an adverse finding relating
to the employee during the fiscal year in which the bonus is
awarded, the head of the agency, after notice and an
opportunity for a hearing, shall issue an order directing the
employee to repay the amount of the bonus.
``(2) Repayment plan.--An agency shall allow an employee
who is required to repay a bonus under paragraph (1) to repay
that bonus using a repayment plan.
``(3) Hearings.--A hearing under this subsection shall be
conducted in accordance with regulations relating to hearings
promulgated by the head of the agency under chapter 75.
``(d) Condition of Receipt.--As a condition of receiving a bonus
awarded after the date of enactment of this section, an employee shall
sign a certification stating that the employee shall repay the bonus in
accordance with a final order issued under subsection (c).
``(e) Appeal.--An employee determined to be ineligible for a bonus
under subsection (b) or against whom an order is issued under
subsection (c) may submit an appeal to the Merit Systems Protection
Board under section 7701.''.
(b) Rulemaking.--The head of each agency, as defined in section 551
of title 5, United States Code, may promulgate rules to carry out
section 4531 of title 5, United States Code, as added by subsection
(a).
(c) Technical and Conforming Amendment.--The table of sections for
chapter 45 of title 5, United States Code, is amended by adding at the
end the following:
``subchapter iv--limitations on bonus authority
``4531. Certain forms of misconduct.
SEC. 10. EXTENSION OF PROBATIONARY PERIOD FOR POSITIONS WITHIN THE
SENIOR EXECUTIVE SERVICE.
(a) In General.--Section 3393(d) of title 5, United States Code, is
amended by striking ``1-year'' and inserting ``2-year''.
(b) Conforming Amendment.--Section 3592(a)(1) of title 5, United
States Code, is amended by striking ``1-year'' and inserting ``2-
year''.
(c) Application.--The amendments made by this section shall apply
in the case of any individual initially appointed as a career appointee
under section 3393 of title 5, United States Code, on or after the
effective date provided in section 12 of this Act.
SEC. 11. EXTENSION OF PROBATIONARY PERIOD FOR EMPLOYEES IN THE
COMPETITIVE SERVICE.
(a) Extension of Probationary Period.--
(1) In general.--Section 3321 of title 5, United States
Code, is amended--
(A) in subsection (a), by striking ``The
President'' and inserting ``Subject to subsections (c)
and (d), the President'';
(B) by redesignating subsection (c) as subsection
(e); and
(C) by inserting after subsection (b) the
following:
``(c)(1) The length of a probationary period established under
paragraph (1) or (2) of subsection (a) shall--
``(A) with respect to any position that requires formal
training, begin on the date of the appointment to the position
and end on the date that is 2 years after the date on which the
formal training is completed;
``(B) with respect to any position that requires a license,
begin on the date of the appointment to the position and end on
the date that is 2 years after the date of the appointment or
the date on which the license is granted, whichever is later;
and
``(C) with respect to any position not covered by
subparagraph (A) or (B), be a period of 2 years beginning on
the date of the appointment to the position.
``(2) For purposes of paragraph (1)--
``(A) the term `formal training' means, with respect to any
position, a training program required by law, rule, or
regulation, or otherwise required by the employing agency, to
be completed by the employee before the employee is able to
successfully execute the duties of the applicable position; and
``(B) the term `license' means a license, certification, or
other grant of permission to engage in a particular activity.
``(d) The head of each agency shall, in the administration of this
section, take appropriate measures to ensure that--
``(1) any announcement of a vacant position and any offer
of appointment made to an individual with respect to a vacant
position clearly states the terms and conditions of any
applicable probationary period, including any formal training
period and any license requirement;
``(2) any individual who is required to complete a
probationary period under this section receives timely notice
of any requirements, including performance requirements, that
must be met in order to satisfactorily complete that period;
``(3) any supervisor or manager of an individual who is
required to complete a probationary period under this section
receives periodic notifications of the end date of that period
not later than 1 year, 6 months, 3 months, and 30 days before
the end date; and
``(4) if the agency head decides to retain an individual
after the completion of a probationary period under this
section, the agency head submits a certification to that effect
to the President, supported by a brief statement of the basis
for the certification, in such form and manner as the President
may by regulation prescribe.''.
(2) Technical amendment.--Section 3321(e) of title 5,
United States Code (as so redesignated by paragraph (1)), is
amended by striking ``Subsections (a) and (b)'' and inserting
``Subsections (a) through (d)''.
(3) Application.--This subsection and the amendments made
by this subsection shall apply in the case of any appointment
(as referred to in section 3321(a)(1) of title 5, United States
Code) and any initial appointment (as referred to in section
3321(a)(2) of that title) taking effect on or after the
effective date provided in section 12 of this Act.
(b) Adverse Actions.--
(1) Subchapter i of chapter 75 of title 5.--Section 7501(1)
of title 5, United States Code, as amended by sections 5(c) and
7(a)(1), is further amended--
(A) by striking ``or, except'' and inserting ``and,
except''; and
(B) by striking ``1 year of current'' and inserting
``2 years of current''.
(2) Subchapter ii of chapter 75 of title 5.--Section
7511(a)(1) of title 5, United States Code, is amended--
(A) in subparagraph (A)--
(i) in clause (i), by striking ``; or'' and
inserting ``; and''; and
(ii) in clause (ii), by striking ``1 year''
the first place it appears and inserting ``2
years'';
(B) in subparagraph (B), by striking ``1 year'' and
inserting ``2 years''; and
(C) in subparagraph (C)(i), by striking ``; or''
and inserting ``; and''.
(3) Application.--The amendments made by paragraphs (1) and
(2) shall apply in the case of any individual whose period of
continuous service commences on or after the effective date
provided in section 12.
(c) Regulations.--The Office of Personnel Management may prescribe
regulations to carry out this section and the amendments made by this
section.
SEC. 12. APPLICATION.
(a) Effective Date.--Unless otherwise specifically provided for in
this Act, the amendments made by this Act shall take effect on the date
that is 1 year after the date of enactment of this Act.
(b) Collective Bargaining Agreements.--Notwithstanding any other
provision of law, the procedures established or amended by this Act
shall supersede any collective bargaining agreement to the extent that
the agreement is inconsistent with those procedures.
(c) Definition of Business Day.--For purposes of carrying out this
Act and the amendments made by this Act, the term ``business day''
means any day other than a Saturday, Sunday, or legal public holiday
under section 6103(a) of title 5, United States Code.
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