Whether referred to as "pay-for-performance" (PFP) or "merit pay," attempting to tie educators' compensation to their performance in the classroom and students' performance on high-stakes tests has been a key component of many educator compensation reform efforts in the last five years. This issue looks at PFP systems broadly and includes not only systems that provide rewards for increased student achievement, but also for other tasks such as engaging in professional development and taking on added roles and responsibilities. Since the last time that "The Progress of Education Reform" addressed merit pay (June 2010), several rigorous evaluations of prominent PFP programs have been completed, and the U.S. Department of Education has intensified its efforts to promote PFP in public schools though Race to the Top and increased appropriations for the Teacher Incentive Fund (TIF). TIF, which provides funds for states, school districts and charter schools to implement merit pay systems, has received $893 million in appropriations since FY 2006. These developments warrant another look into PFP. This issue of "The Progress of Education Reform" describes PFP models and presents recent research findings and their implications for policy. (Contains 2 tables and 8 endnotes.)