Estimation and story points are a planning tool. You use them as a way to plot out your road map and prioritize initiatives. The minute you tie them to employee performance, you've obviated them for that purpose. Now the only thing people will care about (including your TL's) is making sure they keep their "score" inflated. Like I said, perverse incentive structure.
Granted that metrics are dangerous, this seemed like a reasonable stab at solving some of the problems (assuming it was done carefully).
Of course, it's no substitute for hiring the right people and having a less anxious upper management chain.