118 STAT. 2073 PUBLIC LAW 108–375—OCT. 28, 2004 rates of pay provided for comparable positions in the Depart ment of Defense and subject to the same limitations on max imum rates of pay established for employees of the Department of Defense by law or regulation’’; (2) by striking subsection (b); and (3) by redesignating subsection (c) as subsection (b). (b) PERFORMANCE APPRAISAL SYSTEM.—Section 1606 of such title is amended by adding at the end the following new subsection: ‘‘(d) PERFORMANCE APPRAISALS.—(1) The Defense Intelligence Senior Executive Service shall be subject to a performance appraisal system which, as designed and applied, is certified by the Secretary of Defense under section 5307 of title 5 as making meaningful distinctions based on relative performance. ‘‘(2) The performance appraisal system applicable to the Defense Intelligence Senior Executive Service under paragraph (1) may be the same performance appraisal system that is established and implemented within the Department of Defense for members of the Senior Executive Service.’’. SEC. 1104. PAY PARITY FOR SENIOR EXECUTIVES IN DEFENSE NON APPROPRIATED FUND INSTRUMENTALITIES. (a) AUTHORITY.—Chapter 81 of title 10, United States Code, is amended by inserting after section 1587 the following new section: ‘‘§ 1587a. Employees of nonappropriated fund instrumental ities: senior executive pay levels ‘‘(a) AUTHORITY.—To achieve the objective stated in subsection (b), the Secretary of Defense may regulate the amount of total compensation that is provided for senior executives of non appropriated fund instrumentalities who, for the fixing of pay by administrative action, are under the jurisdiction of the Secretary of Defense or the Secretary of a military department. ‘‘(b) PAY PARITY.—The objective of an action taken with respect to the compensation of senior executives under subsection (a) is to provide for parity between the total compensation provided for such senior executives and total compensation that is provided for Department of Defense employees in Senior Executive Service positions or other senior executive positions. ‘‘(c) STANDARDS OF COMPARABILITY.—Subject to subsection (d), the Secretary of Defense shall prescribe the standards of comparison that are to apply in the making of the determinations necessary to achieve the objective stated in subsection (b). ‘‘(d) ESTABLISHMENT OF PAY RATES.—The Secretary of Defense shall apply subsections (a) and (b) of section 5382 of title 5 in the regulation of compensation under this section. ‘‘(e) RELATIONSHIP TO PAY LIMITATION.—The Secretary of Defense may exercise the authority provided in subsection (a) with out regard to section 5373 of title 5. ‘‘(f) DEFINITIONS.—In this section: ‘‘(1) The term ‘compensation’ includes rate of basic pay. ‘‘(2) The term ‘Senior Executive Service position’ has the meaning given such term in section 3132 of title 5.’’.
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