The Office of Personnel Management has issued implementing
guidance to agencies on requesting that their performance
appraisal systems for their senior executive service members
be “certified” for purposes of allowing higher basic pay and
higher total compensation, including pay and benefits.
The guidance came in a memo following recent release of two
sets of rules, one to put in place the new SES pay system and
the other setting standards for when agencies can get
certification that their executive appraisal systems make
“meaningful distinctions based on relative performance.” If
OPM, with Office of Management and Budget concurrence,
ertifies an agency’s system, the maximum base pay there is
Executive Schedule Level II (currently $158,100), versus Level
III (currently $145,600) if it is not, and the total
compensation cap is the Vice President’s salary (currently
$203,000), versus Level I (currently $174,500) without
certification.
“These are important steps in reforming the federal pay and
performance systems. They will enhance your ability to
recruit and retain employees who can make vital
contributions to your agency’s mission and organizational
goals,” OPM told agencies.
OPM’s memo outlined documentation requirements for either
full or “provisional”–generally lasting up to one
year–certification. Among the documentation requirements
is a requirement to provide OPM with a sample of individual
senior employee performance plans. Agencies must provide
either a 10 percent sample of covered employee performance
plans or a total of 20 plans, whichever is greater. For
agencies with fewer than 20 covered employees, all employee
performance plans must be submitted. For agencies applying
for full certification, the documentation requirements
include ratings data for each senior employee for the last
two appraisal periods.
Agency heads or their designees may submit a single cover
letter requesting certification of several SES and/or senior
level and senior scientific and professional appraisal
systems (which also are eligible for the higher total
compensation cap with certification) or separate letters
requesting certification of each system.