MERIT Act of 2025

Streamlined Discipline: An agency can take action against an employee without first requiring a performance improvement plan (Section 3(d)).

Pay Protections during Reductions: For employees subject to a reduction in grade, pay is adjusted to the rate of the reduced grade immediately (Section 3(b)(1)).

Defined Factors for Decisions: Decisions regarding adverse actions will be based on specific factors such as the nature of the offense, job level, and past work record (Section 3(a)(2)).

Spousal Protections: In cases where an employee's annuity is reduced due to a felony, a spouse may still be eligible for benefits if they cooperated with authorities during the investigation (Section 8(d)).

Clearer Probationary Terms: Job announcements for positions with training or licensing requirements must clearly state the specific terms and conditions of the probationary period (Section 11(d)(1)).

Reduced Annuities: The annuity of a covered individual can be reduced if they are finally convicted of a felony involving acts or omissions related to their official duties (Section 8(a)(1)).

Bonus Recoupment: Agency heads may order employees to repay previously awarded bonuses if an adverse finding of misconduct is made (Section 9(c)(1)).

Bonus Ineligibility: An agency head may prohibit awarding a bonus to an employee for up to five years after an adverse finding of misconduct (Section 9(b)).

Extended Probationary Periods: The length of probationary periods is extended to two years for the Senior Executive Service and for employees in the competitive service (Section 10 and Section 11(a)).

Pay Restrictions during Appeals: Employees subject to a reduction in grade who are appealing the action may be prohibited from receiving pay and benefits unless they report for duty or use approved leave (Section 3(b)(2)).