I've been in a similar position, so here are my two cents: 

Bringing up pay at the point of a performance review is about 3-6 months too late. Like others have mentioned, your direct report will have little they can do about this pre-approved package. There is no longer room for 'negotiation' unless you have a competing offer or something.

If you have a good relationship with your manager, and you know you are a high performer, you can certainly bring up your concerns. You could make them aware that you want to be 'fairly compensated.' But again, this approach is not really a negotiation, and more a long-term conversation imo. It requires your manager to go to bat on your behalf, really. 

At least, that's how internal comp adjustments have worked in my experience. Real negotiations require more leverage and the willingness to walk.