Excepted Service, Career and Career-Conditional Employment; and Pathways Programs, 47495-47515 [2011-19623]

Agencies

• Office of Personnel Management
• Personnel Management Office

[Federal Register Volume 76, Number 151 (Friday, August 5, 2011)]
[Proposed Rules]
[Pages 47495-47515]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-19623]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 76, No. 151 / Friday, August 5, 2011 / 
Proposed Rules

[[Page 47495]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Parts 213, 302, 315, 330, 334, 362, 531, 536, 550, 575, and 
890

RIN 3206-AM34


Excepted Service, Career and Career-Conditional Employment; and 
Pathways Programs

AGENCY: U.S. Office of Personnel Management.

ACTION: Proposed rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: The Office of Personnel Management (OPM) is proposing 
regulations to implement the Pathways Programs established by E.O. 
13562, signed December 27, 2010, to provide clear paths to Federal 
internships and potential careers in Government for students and recent 
graduates. As directed by the President, the Pathways Programs consist 
of the Internship Program, the Recent Graduates Program and the 
Presidential Management Fellows Program. The President determined that 
these programs should be excepted from the competitive service and 
placed in the newly created Schedule D of the excepted service.
    OPM's proposed implementing regulations would provide for more 
transparency in Federal internship opportunities, limit the programs so 
they are used as a supplement to competitive examining and not a 
substitute for it, apply veterans' preference, and provide for OPM 
oversight. Agencies would only be permitted to use the Pathways 
Programs as part of an overall workforce planning strategy and pursuant 
to an agreement with OPM. The regulations would require agencies to 
make an investment in the program participants' development through 
training, mentorship, and other means. The regulations would further 
require agencies to conduct meaningful assessments of participant 
performance as part of an agency's determination as to whether the 
program participants should be converted to permanent positions in the 
competitive service.

DATES: Comments must be received on or before October 4, 2011.

ADDRESSES: You may submit comments, which are identified by RIN 3206-
AM34, by any of the following methods:
     Federal eRuling Portal: https://www.regulations.gov. Follow 
the instructions for submitting comments.
     E-mail: employ@opm.gov. Include ``RIN 3206-AM34'', 
Excepted Service, Career and Career-Conditional Employment; and 
Pathways Programs'' in the subject line of the message.
     Fax: (202) 606-4430.
     Mail: Angela Bailey, Associate Director for Employee 
Services, U.S. Office of Personnel Management, Room 6566, 1900 E 
Street, NW., Washington, DC 20415-9700.

FOR FURTHER INFORMATION CONTACT: Gale Perryman, 202-606-1143, Fax: 202-
606-4430, by TTY: 202-418-2532, or e-mail: gale.perryman@opm.gov.

SUPPLEMENTARY INFORMATION: The President is authorized by statute to 
provide for ``necessary exceptions of positions from the competitive 
service'' whenever warranted by ``conditions of good administration.'' 
5 U.S.C. 3302. The President has also delegated to OPM the authority to 
except positions from the competitive service. 5 CFR 6.1(a). It has 
been a long-standing practice under these authorities for the 
President, and for OPM exercising its delegated authority, to permit 
positions that would otherwise be in the competitive service to be 
filled through excepted service appointments where conditions of good 
administration warrant exceptions from competitive examining procedures 
(e.g., people with disabilities and students). One of the purposes for 
which exceptions have been made in the past is to fulfill the merit 
system principles, which provide, in part, that ``[r]ecruitment should 
be from qualified individuals from appropriate sources in an endeavor 
to achieve a work force from all segments of society * * *.'' In 
keeping with that objective, President Obama issued Executive Order 
13562, which established the concept of the Pathways Programs, 
``find[ing] that conditions of good administration (specifically, the 
need to promote employment opportunities for students and recent 
graduates in the Federal workforce) make necessary an exception to the 
competitive hiring rules for certain positions in the Federal civil 
service.'' Exec. Order No. 13562, 75 FR 82,585 (Dec. 27. 2010). The 
Pathways Programs consist of three discrete excepted service internship 
programs for students and recent graduates: the Internship Program; the 
Recent Graduates Program; and the Presidential Management Fellows 
Program.
    The Internship Program is for current students. It will consolidate 
provisions of the Student Educational Employment Program (SEEP) into a 
new student internship program designed to provide high school, 
vocational and technical, undergraduate, and graduate students 
opportunities to be exposed to the work of Government through Federal 
internships. This program is designed to attract the interest of 
students enrolled in a wide variety of educational institutions, with 
paid opportunities to work in agencies and explore Federal careers 
while still in school. Agencies may convert Interns who successfully 
complete program and academic requirements to any competitive service 
position for which the Intern is qualified, but they are not required 
to do so. It is expected that, even if an agency does not convert an 
Intern, service in the Internship Program will increase the likelihood 
that the Intern will consider applying for a Federal position at some 
point in the future, based upon the exposure to employment in the 
Pathways Program.
    The Recent Graduates Program is a new program that will provide 
opportunities for individuals who have recently graduated (or obtained 
certificates) from qualifying educational institutions or programs. To 
be eligible, applicants must apply within 2 years of educational 
program completion (except that veterans who are precluded from 
applying within 2 years due to a military service obligation will have 
up to 6 years from the date they completed their educational program to 
participate in the Recent Graduates Program (i.e., A veteran's 2-year 
eligibility is postponed until completion of military service 
obligation. Thus, a veteran will have up to a 6-year period to exercise 
his or her 2-year eligibility). Successful applicants will be placed in 
a 2-year career development program. Agencies may convert Recent 
Graduates Program participants who successfully complete the program to 
competitive service jobs,

[[Page 47496]]

but they are not required to do so. Once again, it is expected that, 
even if an agency does not convert an employee participating in the 
Recent Graduates Program to a position in the competitive service at 
the expiration of the Recent Graduates Program, service in the Pathways 
Program will make it more likely that the Recent Graduate will want to 
pursue Federal service later in his or her career.
    For more than three decades the Presidential Management Fellows 
(PMF) Program has been the Federal Government's premier leadership 
development program for advanced degree candidates. Executive Order 
13562 expands the eligibility window for applicants, making it more 
``student friendly'' by aligning it with academic calendars and 
including those who have received a qualifying advanced degree within 
the preceding 2 years. Like Recent Graduates, PMFs work in a 2-year 
developmental program and, upon successful completion of the program, 
may be converted to competitive service jobs. Indeed, the Recent Grads 
program, in some respects, is patterned after the PMF Program.
    Each of these programs share 5 core principles that advance merit 
system principles and the policies established by the President in the 
Executive order:
    1. Transparency. The Pathways Programs provide for more 
transparency in Federal internship or other developmental 
opportunities. Members of the public interested in these opportunities 
with the Federal Government will now be able to learn about them 
through USAJOBS.gov. That Web site is the portal to all Federal jobs in 
the competitive service, and it will now also be used to provide 
information to the public about agency internship needs and the process 
for applying for agency internships as these opportunities become 
available.
    2. Limited Scope. The Pathways Programs are limited in nature, 
intended to provide agencies a supplemental authority to use as part of 
an overall workforce planning strategy. Accordingly, agencies must 
report the positions for which they intend to use the Pathways Programs 
to OPM on an annual basis. OPM will review the information provided by 
the agencies and, if appropriate, establish a cap on the number of 
individuals who may be converted from the Pathways Programs to 
positions in the competitive service. This safeguard will permit OPM to 
ensure that agencies use these programs in a limited way as part of an 
overall strategic plan rather than using them to avoid competitive 
examining altogether.
    3. Fairness to Veterans. The Pathways Programs will be fair to 
veterans because they will honor veterans' preference and provide 
additional flexibility to veterans in recognition of their military 
service. Thus, when agencies are making selections for internship 
positions in any of the three Pathways programs, they must apply 
veterans' preference in accordance with Part 302 when selecting from 
among qualified applicants. Moreover, the eligibility rule for the 
Recent Graduates Program is more flexible for veterans than it is for 
non-veterans. Whereas the general rule is that, to be eligible for the 
Recent Graduates Program, an individual must have completed his or her 
educational program within the preceding 2 years, veterans who were 
precluded from applying within that period due to a military service 
obligation have up to 6 years from the date they completed their 
educational program to participate in the Recent Graduates Program.
    4. OPM Oversight. The Pathways Programs will also be subject to OPM 
oversight. Agencies will be required to enter a memorandum of 
understanding (MOU) with OPM before using any of the Pathways Programs. 
The MOU will set forth the agency's obligations to the President and 
the Executive Branch in using the programs, and OPM will use the MOUs 
as an oversight tool. In addition, as mentioned above, agencies will be 
required to report to OPM annually on their usage of the Pathways 
Programs and will be subject to a cap on conversions of Pathways 
participants to non-Pathways positions in the competitive service if 
necessary.
    5. Agency Investment. Agencies that use the Pathways Programs will 
have to be committed to investing in the participants. The Pathways 
Programs are intended to be more than simple excepted service hiring 
authorities; they are intended to fulfill a need for developmental 
programs that will inspire interest in more permanent Federal service. 
The purpose of the programs is to foster a positive experience for 
participants that will help prepare them for successful careers in 
Government--either immediately or at some future date. Agencies are 
encouraged to create cohorts of Pathways participants, and provide them 
with common training and developmental experiences. In order to 
continue participating in the programs, they will be required as well 
to conduct meaningful assessments of the participants for purposes of 
determining whether they should be converted to the competitive 
service.
    By crafting the Pathways Programs around these core principles, we 
respond to the President's direction to address the special challenges 
the Federal Government faces in competing with private industry for the 
best candidates for Federal service, while safeguarding veterans' 
preference and ensuring that the normal competitive examining process 
is preserved to the greatest extent practicable.

Background

1. Steps OPM Took To Assess Student and Recent Graduate Hiring

    OPM has conducted a thorough review of the Federal Government's 
ability to recruit and hire students and recent graduates. This review 
began in August of 2009, when OPM convened an interagency team 
consisting of Federal employees from six organizations--State, 
Education, Housing and Urban Development (HUD), Internal Revenue 
Service (IRS), OPM, and the Central Intelligence Agency (CIA). These 
employees worked for 90 days to examine the current Federal recruiting 
and hiring process as it relates to students and recent graduates.
    On October 7, 2009, OPM hosted a ``Roundtable Discussion on Federal 
Recruitment and Hiring at Colleges and Universities'' (hereafter ``OPM 
Roundtable''). The OPM Roundtable was attended by representatives from 
nine different academic and good government organizations. It explored 
whether there are barriers to hiring students and recent graduates into 
Federal jobs.
    On June 25, 2010, OPM convened a public hearing to consider issues 
connected to hiring students and recent graduates. OPM issued a Federal 
Register notice inviting the public to submit comments on three issues: 
(1) Whether normal, competitive hiring is an effective avenue for 
bringing recent college graduates into the Federal workforce and, if 
so, why that is the case; (2) if not, whether this presents a problem 
for the Federal Government that is sufficiently significant to warrant 
action or changes to policy; and (3) if action or changes in policy are 
warranted, what changes should be effected and who should effect them. 
Members of the public who submitted written comments were also offered 
an opportunity to speak at the hearing. During the hearing, OPM heard 
testimony from three panels of experts: agency Chief Human Capital 
Officers, representatives from Federal employee unions and veterans' 
service organizations, and representatives from

[[Page 47497]]

good government and academic groups. Following the public hearing, OPM 
posted the hearing transcript and issued a Federal Register notice 
inviting the public to make any additional comments.
    OPM also gathered and reviewed relevant literature on topics such 
as entry-level hiring, recruiting and hiring students and recent 
graduates, and the Federal Career Intern Program (FCIP).
    Finally, OPM's qualifications and assessment experts provided 
information regarding the process for overhauling the currently 
predominant training- and experience-based approach to qualifications 
and assessments. The ubiquity of that approach has been identified as 
one of the barriers to recruiting and hiring students and recent 
graduates, because it places a premium on prior work experience rather 
than potential for success on the job.
    This review informed the President's decision to issue E.O. 13562 
and has also informed OPM in drafting these implementing regulations. 
The materials that OPM considered as part of its review are available 
for public review and comment at https://www.opm.gov/open.

2. Conclusions From OPM's Review

    OPM has concluded that there are barriers to hiring students and 
recent graduates that can best be addressed through the implementation 
of effective excepted service internship programs. Even though studies 
``show strong match between what the Federal Government offers and what 
[students] seek in an employer, * * * relatively few students * * * 
report considering the government as a potential employer * * *.'' Id. 
at 53 (testimony of Marilyn Mackes, National Association of Colleges 
and Employers (NACE)). This observation is borne out by empirical data 
and expert testimony. The MSPB reported in 2005 that only 10% of new 
hires in GS-5, 7, and 9 jobs in the competitive service (typical entry-
level grades) had less than one year of full-time work experience, 
which was less than half the number with that experience level hired 
into the excepted service. MSPB, Attracting the Next Generation, at 19. 
Conversely, 37% of the new hires in these entry-level grades had 11 or 
more years of experience, including 20% with over 20 years of 
experience. Id. Many of the participants in our public hearing 
acknowledged this reality. See Tr. at 4 (testimony of Marilee 
Fitzgerald, Chief Human Capital Officer, Department of Defense); id. at 
26 (testimony of William Dougan, President, National Federation of 
Federal Employees) (``it is difficult for many recent graduates or 
expected graduates to compete for government jobs through the 
competitive hiring system [because they] * * * do not have the 
experience necessary to compete * * *''); id. at 34 (testimony of Brian 
Hawthorne, Student Veterans of America) (``Recent college graduates are 
at a fundamental disadvantage in this economy * * *. [P]eople with more 
experience are seeking jobs which they are overqualified for, which 
fundamentally puts us out of the running.''); id. at 50 (testimony of 
Laurel McFarland, Executive Director, NASPAA) (``[m]any undergrads and 
grads lack work experience * * * [p]articularly the professional work 
experience that documents the skills and abilities required in the 
current competitive system. If you want to skip the next generation of 
Federal workers and leaders, keep doing what you are doing and hire 
only those with significant work experience.'').
    Internship programs are essential to addressing these issues. By 
exposing students and recent graduates to jobs in the Federal civil 
service at the beginning of their careers, we will engage them at the 
outset of their work lives, before their career paths are fully 
established, inform them about the wide variety of interesting 
opportunities available in the Federal Government, and break through 
commonly held stereotypes about ``government work.'' We will also be 
better equipped to recruit and appoint more expeditiously, thus 
negating what is otherwise a significant disadvantage in competing with 
the private sector for high-potential candidates emerging from 
educational institutions. Through participating in effective internship 
programs, talented individuals who may not otherwise have considered a 
career in the Federal civil service will become more open to the idea 
of pursuing Federal service, whether early in their careers, when 
considering a mid-career change, or when they become experts in their 
fields. In addition, current and former interns who enjoy their 
internship experiences will become our best recruiting sources. Having 
a larger supply of talented people who are interested in working for 
the Federal Government is a benefit to the country and the taxpayers, 
especially when ``competition for high-quality talent among American 
employment sectors is heating up.'' Merit Systems Protection Board, 
Attracting the Next Generation: A Look at Federal Entry-Level New Hires 
(Jan. 2008), at 2. Exposing students and recent graduates to Federal 
jobs through internships and similar programs is an effective way to 
accomplish this goal.
    Internships also have the benefit of affording agencies ``a low-
risk means to assess potential employees on the job.'' Partnership for 
Public Service, Leaving Talent on the Table: The Need To Capitalize on 
High Performing Student Interns (April 2009), at 4. Indeed, under the 
Pathways Programs, interns will be given an extended ``on-the-job 
tryout,'' which is a relatively high indicator of future success on the 
job, significantly higher than considering experience or educational 
level alone. See Merit Systems Protection Board, Reforming Federal 
Hiring: Beyond Faster and Cheaper (Sept. 1, 2006) at 19. Moreover, 
creating internship programs in the excepted service, as the President 
has done, allows for greater flexibility in evaluating inexperienced 
workers, as their internships last for 2 years, rather than the 1-year 
period applicable to the competitive service. To a large extent, recent 
graduates are hired based on their potential, rather than on their 
accomplishments. Without a proven record of success in a job related to 
their field, the period of evaluation takes on added significance. 
Similarly, we need to make allowance for the fact that new workers will 
require additional training and developmental opportunities. It may 
take them longer to become high performers. Accordingly, providing for 
a 2-year program serves multiple interests. It allows managers more 
time for more meaningful evaluation of inexperienced workers, while 
giving inexperienced workers a longer opportunity to grow into their 
jobs, develop their skills, and prove what they have to offer.

3. The President's Findings

    OPM detailed a summary of this review process in a report to the 
President. Subsequently, the President concluded that conditions of 
good administration make necessary an exception to the competitive 
hiring rules for certain internship positions in the Federal civil 
service. In reaching this conclusion, the President made the following 
findings:

    The Federal Government benefits from a diverse workforce that 
includes students and recent graduates, who infuse the workplace 
with their enthusiasm, talents, and unique perspectives. The 
existing competitive hiring process for the Federal civil service, 
however, is structured in a manner that, even at the entry level, 
favors job applicants who have significant previous work experience. 
This structure, along with the complexity of the rules governing 
admission to the career civil service, creates a barrier to 
recruiting and hiring students and recent graduates. It places the 
Federal Government at a

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competitive disadvantage compared to private-sector employers when 
it comes to hiring qualified applicants for entry-level positions.
    To compete effectively for students and recent graduates, the 
Federal Government must improve its recruiting efforts; offer clear 
paths to Federal internships for students from high school through 
post-graduate school; offer clear paths to civil service careers for 
recent graduates; and provide meaningful training, mentoring, and 
career-development opportunities. Further, exposing students and 
recent graduates to Federal jobs through internships and similar 
programs attracts them to careers in the Federal Government and 
enables agency employers to evaluate them on the job to determine 
whether they are likely to have successful careers in Government.

Exec. Order No. 13562, 75 FR 82,585 (Dec. 27. 2010), Sec. 1.
    These regulations implement the President's decision to create 
three distinct internship programs--the Pathways Programs--in Schedule 
D of the excepted service.
Summary of Changes
    As directed by the President, positions filled under these programs 
would be in the excepted service under Schedule D in 5 CFR part 213, a 
new schedule created by Section 7 of Executive Order 13562. Schedule D 
would contain those positions for which competitive service 
requirements make it impracticable for agencies to recruit students 
attending qualifying academic institutions or individuals who have 
recently completed qualifying educational programs. Section 7(a)(i) of 
Executive Order 13562 also delegated additional authority to OPM to 
except certain positions from the competitive service.
    Pursuant to the Executive order, OPM is also proposing to add a new 
regulation at the beginning of 5 CFR part 213, subpart A. The new 
section 213.102 would provide further guidance on excepting positions 
from the competitive service pursuant to applicable Executive orders. 
It would also clarify that positions may be excepted from the 
competitive service pursuant to 5 U.S.C. 3302 and 5 CFR 6.1 on either 
an indefinite or a temporary basis. Indefinite exceptions are 
appropriate when the nature of the position itself precludes it from 
being in the competitive service (such as attorney positions, for which 
examining is prohibited). Temporary exceptions are appropriate to allow 
for valid targeted recruiting and hiring of a particular class of 
persons, with the opportunity for the persons selected for those 
positions to convert to the competitive service at a later date.
    This clarification reflects the President's (and several of his 
predecessors') interpretation of 5 U.S.C. 3302(1) and will permit OPM, 
exercising discretion delegated to it by the President, to continue its 
practice of allowing agencies to fill positions that would normally be 
in the competitive service through excepted service appointments in 
order to allow them to recruit and hire from among classes of 
individuals that are disadvantaged by competitive examining. For 
example, people with disabilities are hired into positions that are 
normally in the competitive service but are temporarily placed in the 
excepted service to allow for agencies to use targeted recruitment and 
hiring strategies in order to hire qualified people with disabilities. 
Individuals hired under this process convert into the competitive 
service after 2 years. For over 30 years, student interns and 
Presidential Management Fellows (formerly Presidential Management 
Interns) have been hired this same way--using excepted service 
appointments for jobs that were simultaneously being filled through 
competitive appointments by non-student interns and Fellows. The 
proposed new regulation would make more explicit that long-standing 
interpretation.
    Next, OPM is proposing to remove the provisions in 5 CFR 
213.3202(a) and (b), the Student Educational Employment Program (SEEP). 
We are proposing to remove these paragraphs because many of the 
provisions of the SEEP would be incorporated, with modifications, into 
the new Internship Program regulations in 5 CFR part 362. Section 8(b) 
of E.O. 13562 supersedes and revokes E.O. 12015, which authorized the 
establishment of career work-study programs, effective the date on 
which OPM issues final regulations for the Pathways Programs.
    OPM is also proposing to remove paragraph (o) of 5 CFR 213.3202, 
the Federal Career Intern Program (FCIP). Section 8(a) of E.O. 13562 
superseded and revoked E.O. 13162, which established the FCIP, 
effective March 1, 2011.
    The proposed rule would redesignate part 362 as Pathways Programs. 
Part 362 currently contains provisions relating to the Presidential 
Management Fellows Program, but we are proposing to replace it with 
provisions governing all three of the Pathways Programs. Part 362 would 
now consist of four subparts: subpart A, General Provisions, which 
would contain rules pertaining to all three Pathways Programs; subpart 
B, Internship Program; subpart C, Recent Graduates Program; and subpart 
D, the Presidential Management Fellows Program. Though we are 
addressing each program within part 362, the programs are distinct, 
targeting different classes of people and governed by different rules 
and procedures. Accordingly, each should be considered independently of 
the others.
    The proposed rule would also make conforming changes to the 
appropriate sections relating to noncompetitive conversions, creditable 
service for career tenure, pay, and benefits administration in 5 CFR 
parts 213, 302, 315, 330, 334, 531, 536, 537, 550, 575, and 890.

General Provisions Common to all Pathways Programs

Program Administration

    Subpart A of part 362, General Provisions, contains the overarching 
requirements applicable to all Pathways Programs. In some instances, we 
have consolidated and incorporated provisions of the current Student 
Educational Employment and Presidential Management Fellows Programs 
(SEEP, and PMFP, respectively) into the proposed Pathways Programs 
regulations. This subpart also contains new provisions necessary to 
implement E.O. 13562. The new subpart clarifies certain definitions and 
provisions relating to agencies' authority, requirements agencies must 
meet, how positions are filled, conversion to the competitive service, 
and program accountability and oversight. A description of these 
provisions follows.

General Provisions

    Section 362.101 of the proposed regulations establishes the basic 
framework and purpose of the Pathways Programs. This section also 
directs agencies to provide for equal employment opportunities in the 
Pathways Programs.

Definitions

    Section 362.102 contains the definitions necessary for the 
administration of this part. OPM is revising the definition of 
``qualifying educational institution'' to expressly include home-school 
curricula that are recognized by the State or local government in which 
the curricula are administered (in the case of secondary home-school 
programs), or by a body recognized by the United States Department of 
Education (in the case of post-secondary, or vocational or technical 
home-school programs). This change makes clear that students using 
certain home-school curricula may

[[Page 47499]]

apply for consideration under the Pathways Programs.

Authority

    Section 362.103 of the proposed regulations authorizes agencies to 
make time-limited appointments to positions placed, temporarily, in the 
excepted service, pursuant to the Pathways Programs, subject to certain 
prerequisites. The section establishes a requirement for the agency 
head or his or her designee to enter into a Pathways Memorandum of 
Understanding (Pathways MOU) with OPM prior to making appointments 
under any Pathways authority. This section also requires agencies to 
execute a Pathways agreement with each individual appointed under the 
Pathways Programs.

Agency Requirements

    Section 362.104 of the proposed regulations establishes the 
requirements and criteria that must be addressed in the MOU with OPM, 
including that it should identify a Pathways Program officer for the 
agency and describe the process for accepting and assessing 
applications. Requirements for the MOU are essentially the same for all 
three Pathways Programs. An agency will have to describe in writing how 
it intends to use each Pathways Program and the requirements the agency 
will establish for each Pathways Program.
    We propose removing the existing three-way agreement between the 
school, student and agency under the Student Career Experience Program 
(SCEP) because we believe the requirement to include the educational 
institution is an unnecessary burden on both the student and the 
agency. In its place, we propose to establish a requirement that a 
given agency sign a Pathways Agreement with each participant in its 
Pathways Programs. These written agreements must identify requirements 
such as work assignments, evaluation procedures, and any procedures for 
noncompetitive conversion upon successful completion of the program. 
OPM believes these agreements will make the Programs more effective for 
the Government by assisting both management and the Program participant 
in identifying and attaining program goals, as well as providing 
Program participants with a better understanding of expectations and 
requirements for successful completion of each Pathways Program. 
Agencies are not, however, precluded from entering into 3-way 
agreements with educational institutions that sponsor programs for 
formal student work/academic relationships.
    In an effort to help students and recent graduates understand and 
compare available Federal career opportunities, E.O. 13562 requires the 
use of standard naming conventions for Pathways Programs across all 
agencies. Therefore, OPM proposes that an agency can adopt its own 
Pathways Program name provided the agency name includes the Pathways 
Program name identified in these regulations; for example, OPM Recent 
Graduates Program. Any agency-specific name for a Pathways Program must 
be identified in the agency policy.

Filling Positions

    Section 362.105 of the proposed regulations requires agencies' 
workforce planning to address the need to have an adequate number of 
positions available to which successful Pathways Program participants 
can be converted. It also provides that agencies must fill Pathways 
Programs positions under Schedule D of the excepted service (5 CFR part 
213). In addition, this section explains the general eligibility 
criteria individuals must meet in order to be appointed to a Pathways 
Program. These criteria include, but are not limited to, requirements 
relating to all Federal appointments such as qualifications and 
suitability.
    This section further explains that Pathways appointments are for 2 
years and may be extended by the agency for up to 120 days. The new 
Executive Order does not provide OPM the flexibility to extend Pathways 
Programs appointments for an additional year.

Conversion to the Competitive Service

    Section 362.106 of the proposed regulations permits agencies to 
noncompetitively convert Pathways Program participants to term, or 
permanent appointments in the competitive service. It also makes clear 
that an agency that initially converts a Pathways Program participant 
to a term appointment may subsequently convert the individual 
noncompetitively to a permanent competitive service appointment.
    This section also provides that an agency may convert a Pathways 
Program participant to a position in the same agency or to a position 
in another Federal agency. It clarifies that the provisions of the 
career transition assistance programs in subparts B, F and G of 5 CFR 
part 330 do not apply to conversions. Proposed section 362.106 would 
clarify that any time spent by a Pathways Program participant counts 
towards career tenure if the individual is converted to a permanent 
position in the competitive service. However, participation in a 
Pathways Program does not provide any right to further employment.

Program Accountability and Oversight

    The Executive Order authorizes the Director of OPM to ``establish, 
if appropriate, a Government-wide cap on the number of noncompetitive 
conversions to the competitive service of Interns, Recent Graduates, or 
PMFs (or a Government-wide combined conversion cap applicable to all 
three categories together).'' [See Sec. 7(b)(iii).] The proposed 
section 362.107 would establish that OPM would determine whether to 
establish any caps based on information it receives from the agencies 
about their use of the Pathways Programs. In the event the Director 
determined that a cap would be appropriate, OPM would publish it in the 
Federal Register, including how it would affect individual agencies 
participating in the Pathways Programs.
    Proposed section 362.107 also specifies certain information 
agencies must include in their Human Capital Management planning 
documents relating to hiring in their Pathways Programs. OPM is 
requiring this information in order to gauge the effectiveness and 
usage of the Pathways Programs, and to determine whether to impose 
limitations on the number of appointments and/or conversions agencies 
may make each year.
    OPM proposes, in section 362.108, adding a provision that would 
allow the Director to approve written requests for waivers of the 
regulatory requirements of the Pathways Programs under limited 
circumstances. This mirrors the provision currently appearing at 5 CFR 
362.205.
    OPM acknowledges, in proposed section 362.109, our requirements to 
issue written guidance for the orderly transition of current SEEP and 
PMF employees.

Internship Program

    The Executive order establishing the Pathways Program framework 
provides for it to include an Internship Program, which replaces the 
existing Student Career Experience Program (SCEP). E.O. 13562 also 
supersedes and revokes E.O. 12015 (which authorized noncompetitive 
conversion to the competitive service for SCEPs), effective on the date 
the Pathways regulations become final. The Student Educational 
Employment Program (SEEP) at 5 CFR 213.3202 provides the existing 
framework for the SCEP.

[[Page 47500]]

Background on the SEEP

    On December 16, 1994, OPM issued final regulations implementing the 
Student Educational Employment Program (SEEP). The SEEP consolidated 13 
different student employment programs into one program with a 
standardized set of rules. The SEEP had two components, the Student 
Temporary Employment Program (STEP) and the Student Career Experience 
Program (SCEP). The SEEP was designed so that agencies could develop 
innovative work-study or temporary programs to attract students.
    The SCEP component was designed to provide career-related work 
experience directly related to the student's educational program or 
curriculum. Agencies appoint students under SCEP to a job related to 
the student's academic field of study. After successful completion of 
academic and SEEP/SCEP program requirements, agencies can appoint 
SCEPs, without competition, to term, career, or career-conditional 
positions related to their academic field of study. The SCEP gives 
students valuable work experience in a field related to their academic 
course of study and allows them to experience firsthand the rewards of 
public service; at the same time, it gives agencies the opportunity to 
observe students' job performance in the work environment and evaluate 
them as potential employees.
    The STEP component was created to provide jobs to students, on a 
temporary basis, which may or may not be related to their career goals 
or academic field of study. STEP was intended to provide agencies and 
students with maximum flexibility in meeting both their needs on a 
short-term basis. Though STEPs can convert into the SCEP, there is no 
provision that allows agencies to noncompetitively convert STEPs to 
term, career, or career-conditional appointments.
    While OPM has refined the SEEP over the years, the original intent 
has remained constant: to provide students with an integrated program 
of academic study and related work experience while building a 
candidate pool of promising, high-potential graduates for entry-level 
positions in the Federal civil service. The most recent changes to the 
program were published in April 2006. These changes provided agencies 
with additional flexibility in crediting certain non-Federal work 
towards program requirements.

Abolishment of the SEEP

    Executive Order 13562 provides a new framework for Government 
internship programs and authorizes the noncompetitive conversion of 
interns to term or permanent competitive service appointments. The new 
Internship Program under Pathways eliminates the need for the existing 
SEEP. Therefore, OPM is implementing E.O. 13562 by ending SCEP and has 
determined to eliminate STEP as well, as it would now be largely 
redundant of elements of the new program. For the most part, OPM 
proposes to incorporate many of the current provisions of the SEEP into 
the new Internship Program.

Program Summary

    Whereas the SEEP had two components, STEP and the SCEP, the 
Internship Program will exist as one program or appointing authority. 
Students hired into this program will be known as ``Interns.''
Nature of Work Assigned to Interns
    Interns are intended to provide agencies a ready pipeline of talent 
from which to fill positions, as part of a balanced workforce strategy. 
Accordingly, agencies are generally required to provide Interns with 
meaningful developmental work. This benefits the Government both from a 
succession planning perspective and in recruiting for future job 
opportunities. Experience shows that Interns who have favorable 
impressions of their time working for an agency are the agency's most 
successful recruiters among their peers.
    The Internship Program is flexible enough, however, to accommodate 
the need of some agencies to hire Interns to complete temporary 
projects, to perform labor intensive tasks not requiring subject-matter 
expertise, or to work in traditional ``summer jobs, '' (e.g., routine 
clerical work). Accordingly, agencies are excused from the requirement 
that they provide meaningful developmental work for the Interns they 
hire to perform these types of tasks. Agencies are urged, however, to 
use this exception judiciously, as the clear intent of the Pathways 
E.O. is for agencies to use the Internship Program as a means for 
developing a pipeline of talent. Moreover, agencies should still follow 
best practices to make the experience of all Interns a favorable one 
that will leave them with a positive impression of Federal service.
Agency Authority
    Proposed section 362.201 describes the intent and purpose of the 
Internship Program.
Definitions
    Section 362.202 contains a modified definition of student, which 
eliminates redundant references to academic institutions and degrees 
and certifications that will be addressed in the definition of 
qualifying educational institution in proposed section 362.102. OPM 
proposes to retain the requirement that an individual must be accepted 
for enrollment or enrolled in a degree program on at least a half-time 
basis.
Announcement
    Section 362.203(a) of the proposed regulations would require that 
agencies provide information to OPM about their Internship 
opportunities. This information would include the title, series, grade 
and location, as well as a link to the agency's Web site where 
individuals can find information about how to apply for specific 
Internship opportunities. OPM would note that it will make available to 
the public a summary of these Internship opportunities in a manner the 
Director will determine, including how to find agency-specific 
Internship opportunities. At this time, OPM intends to make this 
information available to the public through advertisements on 
USAJOBS.gov as these opportunities arise. It would be within each 
agency's discretion to determine the process for soliciting and 
accepting applications for specific Internship opportunities, 
consistent with applicable legal and policy requirements, including the 
President's hiring reform initiative (see May 11, 2010, Presidential 
Memorandum, at https://www.whitehouse.gov/the-press-office/presidential-memorandum-improving-federal-recruitment-and-hiring-process) and the 
requirement to collect applicant flow data.
Qualifications and Appointment
    Agencies could continue to evaluate Interns using either agency-
developed qualification standards or the OPM qualifications for the 
position and grade level of the position to which the Intern is 
appointed as specified in section 362.203(c).
    Proposed section 362.203(d) would require agencies to make 
Internship appointments under Schedule D of the excepted service and 
maintain the provisions that agencies may appoint eligible individuals 
to any position for which the individual is qualified.
    Under the terms of the proposed regulation, the duties of the 
position for which the individual is hired do not have to be directly 
related to the Intern's academic career goals or particular field

[[Page 47501]]

of study. We are proposing this change to provide both students and 
agencies with greater flexibility in terms of the type of Federal 
employment that may be offered to eligible students.
    OPM is proposing to remove the provision in the current SCEP rules, 
which states that any OPM test requirements are waived when an agency 
is using OPM Governmentwide qualification requirements. OPM is removing 
this language because the Governmentwide qualification requirements no 
longer require tests. Therefore, no waiver mechanism is required.
    OPM is proposing to allow agencies to appoint Interns on a 
temporary basis for up to 1 year or for an initial period expected to 
last more than 1 year, similar to appointments made under the STEP and 
SCEP programs, respectively. A temporary appointment may be extended by 
the agency.
Promotions
    Section 362.203(e) authorizes agencies to promote Interns in a 
manner similar to how they promoted students serving on STEP and SCEP 
appointments. An agency should document the promotion of an Intern 
serving on a temporary appointment as a conversion to another Schedule 
D excepted service appointment, but using the original not-to-exceed 
date.
Classification
    OPM proposes to retain, in section 362.203(f), the requirement that 
Interns be classified to the -99 series for occupational groups 
appropriate for the General Schedule or appropriate pay plan and to the 
-01 series for occupational groups appropriate for the Federal Wage 
System.
Schedules
    OPM is proposing to retain, in section 362.205(g), the same 
criteria for student schedules as currently exist under the SEEP.
Breaks in Program
    OPM is proposing to retain, in section 362.205(h), the same 
criteria for breaks in program that currently exist under the SEEP. We 
seek comments on the proposed changes from all interested parties, but 
especially from agencies, on whether breaks in program criteria are 
still needed in light of the modification of the definition of 
``student.''
Conversions to the Competitive Service
    OPM proposes to retain, in section 362.204, most of the 
requirements for noncompetitive conversion as they currently exist 
under SCEP. Under the proposed rules agencies will continue to have 120 
days to noncompetitively convert Interns to term or permanent positions 
in the competitive service. Agencies may subsequently convert Interns 
from term appointments to permanent competitive service appointments.
    In order to be eligible for conversion, an intern must meet the OPM 
qualification standard for the position to which he or she will be 
converted, complete a course of academic study from a qualifying 
educational institution, complete a minimum of 640 hours of work 
experience while in the Internship Program, and receive a favorable 
recommendation by an official of the agency.
    Interns may be converted to positions within the agency in which 
they have been serving as Interns, or to positions in other Federal 
agencies.
    Agencies may credit time spent under one or more previous Federal 
appointments towards the 640 hours of required work experience.
    OPM proposes to allow agencies to credit towards the 640-hour 
requirement work experience that is not in a field or functional area 
related to the Intern's target position or career field. This is a 
departure from the SCEP rules, which require that work creditable 
towards the 640 hours required for conversion be related to the 
student's academic goals and target position. OPM is proposing this 
change to allow both students and agencies more flexibility to convert 
Interns who successfully complete the program to positions that are not 
directly related to their field or functional area of study.
    Otherwise, OPM proposes to retain the SCEP provisions pertaining to 
creditable service (for purposes of the 640-hour requirement). 
Creditable service for these purposes includes:
     Work performed by individuals who are not Federal 
employees, pursuant to a formal work-study program comparable to the 
Pathways Internship agreements;
     Work performed by individuals who are not Federal 
employees, pursuant to a written contract between the agency and the 
organization officially established to provide internship experiences 
to students;
     Volunteer service under 5 CFR part 308; and
     Active duty military service.

A credit of 320 hours means the Intern still must work a minimum of 640 
hours to be eligible for noncompetitive conversion, but that 320 hours 
of certain non-Federal work experience may be applied towards the 640-
hour requirement.
    OPM also proposes to allow agencies to waive up to 320 hours of the 
640-hour minimum service requirement for any Intern who performs work 
directly related to his or her academic field of study or career goals, 
and who demonstrates outstanding academic achievement and exceptional 
job performance. Agencies may apply this waiver in the same manner as 
they applied it under the SCEP. For clarity, in this context (as 
opposed to the credit context discussed above) a waiver means the 
Intern only needs to work a minimum of 320 hours to be eligible for 
noncompetitive conversion (provided that other program requirements are 
met).
    Section 362.205 clarifies an Intern's coverage under part 351 of 
this chapter for the purposes of RIF. In addition, it identifies the 
appropriate tenure group for Interns based on the appointment type.

Recent Graduates Program

    Executive Order 13562 recognizes the benefits of a diverse Federal 
workforce that includes recent graduates from academic institutions and 
technical programs. The E.O. also acknowledges that the normal rules 
for competitive hiring impose significant burdens and put the 
Government at a disadvantage, vis-a-vis the private sector, in 
competing for the best candidates emerging from educational 
institutions. In addition, agencies' current competitive hiring 
practices, at the entry levels, tend to favor job applicants who have 
significant previous work experience. This puts recent graduates at a 
competitive disadvantage--no matter the degree or technical training 
they possess--when applying to, and competing for, Federal job 
opportunities. In recognition of this disadvantage and of the value to 
the Government in being competitive with other sectors in recruiting 
and hiring recent graduates, the E.O. established a Recent Graduates 
Program under the Pathways Programs framework. To implement the 
Executive order, OPM proposes adding a new subpart C to 5 CFR part 362.
    This new program will target individuals who have recently 
graduated from a qualifying educational institution or program. 
Qualifying educational institutions and programs include community 
colleges, colleges and universities, trade schools, and career and 
technical education programs. Advanced degree holders also are eligible 
to participate in the Recent Graduates Program. Though people holding 
advanced degrees tend to be highly educated in specialized fields,

[[Page 47502]]

that education often does not translate well under the training and 
experience based approach to evaluating applicants for competitive 
service jobs that most agencies now use. Accordingly, people with 
advanced degrees and little experience fare poorly under these 
assessment approaches, as do their colleagues with 2-year and 4-year 
degrees.
    To be eligible for an appointment to the Recent Graduates Program, 
an applicant must apply within 2 years of the date on which he or she 
completed the academic degree or technical program requirements. The 
proposed regulations extend the eligibility period for veterans who 
were precluded from applying within the 2-year window because of a 
military service obligation. This extended eligibility period cannot 
end more than 6 years after the date on which the individual completed 
his or her academic degree or technical program requirements. In other 
words, a veteran's 2-year eligibility is postponed until completion of 
military service obligation. Thus, a veteran will have up to a 6-year 
period to exercise his or her 2-year eligibility veterans will have up 
to a 6 year window to exercise their 2-year eligibility.
    Individuals selected for the Recent Graduates Program will 
generally be appointed to positions up to the General Schedule (GS)-9 
level (or equivalent) and placed in a 2-year career development 
program. OPM is proposing, however, to allow agencies to hire 
individuals for science, technology, engineering, or mathematics 
occupations at the GS-11 level (or equivalent) if they possess a Ph.D. 
or equivalent doctoral degree directly related to the science, 
technology, engineering, or mathematics position the agency is seeking 
to fill. In addition, OPM is proposing to allow agencies to fill 
certain scientific and professional research positions at the GS-11 or 
12 level (or equivalent), if the individuals possess the requisite 
qualifying education. After successfully completing the program, 
participants may be considered for noncompetitive conversion to a 
career job in the competitive service. A description of proposed new 
subpart C follows.

Program Summary

Program Administration
    Proposed section 362.301 makes clear the purpose of the Recent 
Graduates Program, which is to provide developmental experiences to 
eligible recent graduates, with the potential to lead to careers in the 
Federal Government. Individuals appointed under this authority will be 
referred to as Recent Graduates. This section introduces agency 
requirements particular to the Recent Graduates Program. These 
requirements address providing orientation, assignment of a mentor 
within 90 days of appointment, IDP development within 45 days of 
appointment, and providing Recent Graduates with a minimum of 40 hours 
of formal, interactive training per year. This will provide greater 
flexibility in meeting the training requirements, which we believe will 
prove beneficial to the Government as a whole, as well as the Recent 
Graduate and the agency. This change will allow conference attendance, 
on-line training and other non-conventional training formats to be 
credited toward meeting required training. It is important to note that 
on-line training and other non-conventional training methods would not 
include recurring training requirements such as yearly security 
training.
Eligibility
    Proposed section 362.302 establishes eligibility for 2 years from 
the date on which the individual completed the academic degree or 
program requirements. The proposed regulations postpones the 2-year 
time limit for certain veterans.
Filling Positions
    Section 362.303 of the proposed regulations covers announcements, 
appointments, qualifications, and promotions within the Recent 
Graduates Program.
    Paragraph (a) of that section makes clear that an agency must 
provide information to OPM about opportunities available under the 
Recent Graduates Program. This information must list the types of 
positions the agency may fill under this program and the location of 
the position. OPM will make this information available to the public in 
a manner to be determined by the Director. As with the Internship 
Program, OPM is currently planning to make this information available 
to the public through advertisements available through USAJOBS.gov as 
these opportunities arise. It will be within each agency's discretion 
to determine the process for soliciting and accepting applications for 
specific Recent Graduates opportunities, consistent with applicable 
legal and policy requirements, including the President's hiring reform 
initiative (see May 11,2010, Presidential Memorandum, at https://www.whitehouse.gov/the-press-office/presidential-memorandum-improving-federal-recruitment-and-hiring-process) and the requirement to collect 
applicant flow data.
    Paragraph (b) of section 362.303 establishes that, subject to the 
requirements of subpart C of part 362 an agency may appoint a Recent 
Graduate to any position up to and including the General Schedule (GS)-
09 level (or equivalent under other pay and classification systems such 
as the Federal Wage System). It also provides that an agency must 
appoint Recent Graduates to positions with progressively more 
responsible duties that provide career advancement opportunities. OPM 
has generally capped initial appointments under this authority at the 
GS-09 level because the Recent Graduates Program is intended to be a 
program for people seeking entry-level jobs who lack experience to 
compete with more experienced job seekers under the competitive 
examining process. However, OPM proposes to allow agencies to hire 
individuals at the GS-11 level for science, technology, engineering, or 
mathematics occupations if the individual possesses a Ph.D. or 
equivalent doctoral degree directly related to the science, technology, 
engineering, or mathematics position the agency is seeking to fill. In 
addition, OPM is proposing to allow agencies to fill certain scientific 
and professional research positions at the GS-11 or 12 level (or 
equivalent), if the individuals possess the requisite qualifying 
education.
    Paragraph (c) of proposed section 362.303 provides that an agency 
may extend the 2-year program period for up to an additional 120 days 
when necessary due to rare or unusual circumstances or situations. This 
paragraph also requires an agency to identify the criteria for 
approving extensions in their Pathways Programs plans, and to record 
any extensions in writing and provide them to OPM.
    Paragraph (d) of section 362.303 specifies that an agency must 
evaluate Recent Graduate candidates using OPM qualification standards 
for the occupation and grade level of the position being filled.
    Paragraph (e) provides that an agency may promote any Recent 
Graduate who meets OPM qualification requirements in accordance with 
the agency's Pathways MOU. This section also makes clear that 
promotions are made at the agency's discretion and these provisions do 
not confer an entitlement to a promotion.
    Paragraph (f) makes it clear that the first 2 years of a Recent 
Graduate's appointment is a trial period and

[[Page 47503]]

creditable in the same manner as prescribed in 5 CFR 315.802.
Movement Between Agencies
    Section 362.304 provides that an individual may accept a new Recent 
Graduates appointment with another agency. This section explains the 
criteria under which a Graduate may move from one agency to another 
under this authority and remain in the program.
    Proposed paragraph (c) explains that the new employing agency must 
appoint the Graduate without a break in service.
    Paragraph (d) of this section provides that the time served by a 
Graduate under the previous Program with the first agency is creditable 
towards the 2-year requirement for noncompetitive conversion 
eligibility to the competitive service. It also provides that the 
Graduate does not begin a new 2-year period in the Program when he or 
she meets the conditions of subpart C of part 362. Finally, this 
section, in paragraph (e), requires the new or gaining agency to 
identify requirements for program completion and eligibility for 
noncompetitive conversion in the agency's Pathways Programs plan.
Reduction in Force and Termination
    The proposed section 362.305, in paragraph (a), makes clear that 
Graduates are in excepted service Tenure Group II for reduction in 
force (RIF) purposes. It also provides that the expiration of a Recent 
Graduate appointment is not subject to RIF procedures under 5 CFR part 
351.
    Paragraph (b) of that section makes clear that a Recent Graduate's 
appointment expires at the end of the 2-year program period, plus any 
approved agency extension, unless the agency has selected the 
participant for noncompetitive conversion to the competitive service.
Conversion to the Competitive Service
    Paragraph (a) of section 362.306 provides that an agency may 
noncompetitively convert a Recent Graduate to a term or permanent 
competitive service appointment in the agency in which the Graduate had 
been working or to another Federal agency. Though conversion to term 
appointments is discouraged, OPM proposes providing for conversion to a 
term appointment for Recent Graduates in order to maximize employment 
opportunities for Recent Graduates who successfully complete the 
Program when an agency cannot otherwise convert them to permanent 
competitive service appointments.
    Section 362.306(b) specifies the conditions a Recent Graduate must 
meet to be eligible for noncompetitive conversion to the competitive 
service. These include citizenship requirements, all other applicable 
Recent Graduates Program requirements, qualification requirements for 
the position to which the Graduate will be converted, and maintenance 
of acceptable performance under the agency's approved performance 
appraisal system.
    Section 362.306(c) specifies how to set the effective date of the 
conversion of a Recent Graduate to the competitive service.

Presidential Management Fellows (PMF) Program

    The Presidential Management Intern (PMI) Program was established by 
Executive order in 1977 to attract highly-qualified persons with 
graduate degrees from a variety of academic disciplines who 
demonstrated an interest in, and commitment to, leadership in the 
Federal service. PMI candidates were nominated by their graduate 
schools, and, after a rigorous assessment process conducted by OPM, the 
best qualified finalists were identified as eligible for excepted 
appointments by Federal agencies. Following successful completion of a 
2-year internship that included formal training and rotational 
assignments, PMIs could be appointed without further competition to 
positions in the competitive service.
    In 2005 OPM revised the PMI Program to implement the provisions of 
Executive Order 13318, which included renaming the program as the 
Presidential Management Fellows Program to better reflect its high 
standards, rigor, and prestige. In addition, the PMF Program had two 
components: Presidential Management Fellows and Senior Presidential 
Management Fellows. Executive Order 13318 charged the Director of OPM 
with developing, managing, and evaluating the Program.
    On December 27, 2010, the President signed Executive Order 13562, 
which, as noted earlier in this Supplementary Information, contains 
additional changes to the PMF Program. The E.O. places the PMF Program 
under the Pathways Programs framework to clarify its relationship to 
the other Pathways Programs. To implement the Executive order, OPM is 
placing the provisions relating to the PMF Program in a new subpart D 
of 5 CFR part 362. For the most part, the PMF Program will remain the 
same, with minor changes that are necessary to implement the Executive 
order.

Program Summary

Senior Fellows
    OPM proposes to eliminate the Senior Fellows component of the PMF 
Program. E.O. 13562 does not provide for a Senior Fellows Program under 
the Pathways Programs framework, an aspect of the 2005 Executive order 
that was never actually implemented.
Definitions
    In section 362.401, OPM proposes to modify the definition of 
Presidential Management Fellow to accommodate new requirements 
identified under the E.O., such as the new Schedule D appointing 
authority and the elimination of the school nomination process.
    The definition of qualifying college or university has been 
replaced with a definition of qualifying educational institution. 
However, to provide a consistent treatment of educational institutions 
and consistent requirements across the three Pathways Programs, we are 
proposing to place the definition in section 362.102.
    Proposed section 362.401 no longer includes a definition of Senior 
Presidential Management Fellow because E.O. 13562 did not include the 
Senior Fellows Program under the Pathways Programs framework.
Program Administration
    Section 362.402 of the proposed regulations includes provisions 
currently in 5 CFR 362.201.
    This section provides the Director with the discretion to determine 
the number of Fellows agencies may appoint during any given year. 
Current PMF rules require the OPM Director to make this determination 
on or about October 1. OPM is proposing to change this rule because 
E.O. 13562 no longer requires the OPM Director to make the 
determination by this specific date. The Director will also establish 
the qualifications requirements for evaluating individuals for entrance 
into the PMF Program. Agencies will continue to appoint Fellow 
finalists selected by OPM.
    OPM also proposes new requirements in section 362.402(d) for 
agencies that hire PMFs for locations in the field.
Announcement, Eligibility, and Selection
    OPM pro