Foreign Service and a New Worldwide Compensation System [Updated November 16, 2006] [open pdf - 74KB]
From the Summary: "The George W. Bush Administration seeks to change the federal personnel system, which it characterizes as a 'one-size fits all,' longevity-based personnel and pay system, to what it describes as a market sensitive, performance-based pay system. Removing federal employees at the Departments of Defense and of Homeland Security from the General Schedule (GS) to separate performance-based systems was the first major step taken and, if fully implemented, will cover more than half of all non-uniformed federal employees. The Administration also sent to the House and the Senate the Working for America Act (WFAA), as a model for legislation to create a new Federal Schedule for the remaining federal civil service employees. (To date, WFAA has not been introduced as legislation.) […] This report, which will be updated as events unfold, discusses (1) the background leading to a proposal to change the compensation system from both an Administration perspective and labor perspective, (2) the current Foreign Service (FS) System as established in the Foreign Service Act of 1980 (P.L. [Public Law] 96-465) and why the Foreign Service views its personnel system as already a performance-based system, (3) the outlines of a new system being proposed in both bills based upon the commonalities in the bills, (4) the major difference between the two legislative proposals, and (5) a cost estimate."
CRS Report for Congress, RL33721