Bill also provides for a 2.2 percent military pay raise, setting lower precedent for civilians.
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The Homeland Security Department will reenter talks with unions to plan a new system that fits within legal requirements.
In survey released last week, executives expressed dissatisfaction with pay-for-performance system.
Upper-level employees at the GS-11 through GS-15 levels granted more incentives, OPM reports.
The second in a two-part series on the Federal Employees’ Group Life Insurance program.
Federal employees and retirees will now be able to compare actual drug and medical procedure costs among some insurance plans.
Lengthy regulation development process, and delays caused by court case, may mean more time is needed, deputy secretary says.
OPM draws on reserve funds to keep costs down, in a move a union official says helps the government more than employees.
Half of respondents to a survey said their agencies are using quota systems to distribute ratings, despite a prohibition.
Decreases in operating budget are not coming at the expense of services, officials say.