That being said, the performance review is basically a formality. We have 5 steps in each pay grade, and I have never seen someone miss a step after each year. Someone could be sitting at their desk reading their Kindle all day and still get their 5% jump every year. In addition to that, nearly 100% of promotions are based on tenure. You will probably go from a level 1 --> 2 --> 3 --> Senior every year, and supervisory/management positions are only opened upon the incumbent's retirement (to be filled typically by the most tenured person to apply, regardless of fit).
It is not a good system. Lots of people stick around who should receive the boot, and the wrong people are placed in supervisory/management positions simply because they have been there for a while.