The Nation - News from Dec. 17, 1986
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The White House will propose in its fiscal 1988 budget to eliminate pay increases based on seniority for 1.2 million civilian federal workers and to replace these “within-grade” or “step” increases with “performance,” or merit, pay, Office of Management and Budget Director James C. Miller III said. About $700 million now earmarked for “within-grade” increases would provide a “pot of money to use as raises for good performance,” he said. A pay-for-performance system could not be implemented without congressional approval.
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