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Performance Management and Quality Step Increases FAQs

A quality step increase is an additional step increase that may be granted in recognition of high quality performance above that ordinarily found in the type of position concerned. (A step increase is an increase in a Federal employee's rate of basic pay from one step or rate of the grade of his or her position to the next higher step of that grade or next higher rate within the grade.) Some frequently asked questions about quality step increases in regards to performance appraisal and awards regulations include:

List of Questions

Who can get a quality step increase?
Will a written justification be required to grant a quality step increase to an employee covered by an appraisal program that doesn't use a Level 5 summary?
Must the Office of Personnel Management approve the criteria an agency develops for granting quality step increases under appraisal programs that don't use a Level 5 summary?
Is peer nomination for quality step increases allowed?

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Who can get a quality step increase?
A quality step increase can only be granted to an employee whose most recent rating of record is Level 5, or, if covered by an appraisal program that does not use a Level 5 summary, the employee receives a rating of record at the highest summary level used by the program and demonstrates sustained performance of high quality significantly above the Fully Successful level.

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Will a written justification be required to grant a quality step increase to an employee covered by an appraisal program that doesn't use a Level 5 summary?
While employees must receive a rating of record at the highest summary level used by the program and meet the agency-specified criteria for qualifying for a quality step increase, a separate written justification is not required. However, the Office of Personnel Management strongly encourages agencies to require some form of recorded justification. Assuring compliance with agency-established criteria for quality step increase eligibility would be difficult without recorded justifications. The agency should be able to show that the proposed recipient has performed at a truly exceptional level to justify a permanent increase in his or her rate of basic pay.

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Must the Office of Personnel Management approve the criteria an agency develops for granting quality step increases under appraisal programs that don't use a Level 5 summary?
No, but the Office of Personnel Management's Performance Management and Incentive Awards Division can help agencies develop criteria best suited for their needs.

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Is peer nomination for quality step increases allowed?
Yes. Peer nomination for quality step increases is permissible. However, some process would need to be set up to ensure that nominated employees meet the eligibility criteria. Also, under section 531.501 of title 5, Code of Federal Regulations, final authority for granting quality step increases must remain with management.

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