Federal Manager's Daily Report

OPM has issued guidance on the special considerations for pay raises for SES, senior level and senior scientific and technical employees, who unlike GS employees do not automatically get annual pay raises.

The GS raise–varying by locality between 1.63 and 2.88 percent–will take effect January 8 but those in the senior pay schedules are under pay for performance systems. Here’s how OPM explains the situation for the SES (it issued a parallel explanation for those in the other senior categories):

“Under 5 U.S.C. 5382, the minimum rate of basic pay for the Senior Executive Service (SES) rate range will be adjusted to be consistent with the increase in the minimum rate of basic pay for senior-level positions under 5 U.S.C. 5376 ($124,406 in 2017). The applicable maximum rate of basic pay for the SES will be $187,000 (EX-II) for SES members covered by a certified SES performance appraisal system and $172,100 (EX-III) for SES members covered by an SES performance appraisal system that has not been certified. An SES member at the minimum rate of the SES rate range must receive a pay increase of not less than 1 percent in January 2017, since an SES member may not receive less than the minimum rate of the SES rate range. Other SES pay adjustments must generally be made based on individual performance, contribution to the agency’s performance, or both, as determined under a rigorous performance management system, pursuant to 5 U.S.C. 5382. An agency’s determination to adjust the rate of basic pay for an SES member that is approved by the end of the first pay period in January 2017 (January 21, 2017) may be made effective as of the first day of that first pay period (January 8, 2017). Determinations to adjust SES pay that are approved after January 21, 2017, will become effective at the beginning of the next pay period following the approval. OPM’s regulations for setting and adjusting SES pay are available at 5 CFR part 534, subpart D.”

In addition, those whose pay exceeds a certain level are subject to certain additional post-employment restrictions. Here’s OPM’s explanation:

“Agencies are required to notify SES members, SL and ST employees, and other individuals who are paid at a rate of basic pay equal to or greater than 86.5 percent of the rate for EX-II ($187,000 x 86.5 percent = $161,755 in 2017) that they are subject to certain post-employment restrictions in 18 U.S.C. 207(c)(2)(A)(ii). OPM’s regulations requiring notification of post-employment restrictions are available at 5 CFR part 730. Agencies may continue to use the sample notice OPM provided in its memorandum of January 6, 2004 (CPM 2004-01), to notify an SES member, an SL or ST employee, or other individual that he or she is subject to the post-employment restrictions in 18 U.S.C. 207(c). (Agencies will need to update the pay system, salary threshold, and effective date, as appropriate.)”