Federal Manager's Daily Report

OPM has issued the following guidance on how the January 2009 pay raises will play out for employees in certain high-level pay systems in light of an executive order finalizing the increases, which in most cases take effect January 4, the start of the first pay period of the new year (tables are at www.opm.gov/oca/09tables/index.asp):

Executive Schedule–Under 5 U.S.C. 5318, Executive Schedule (EX) rates of pay will be increased by 2.8 percent (rounded to the nearest $100) and will become effective on the first day of the first applicable pay period beginning on or after January 1, 2009 (January 4, 2009).

 

Senior Executive Service–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 ($117,787 in 2009). The applicable maximum rate of basic pay for the SES will be $177,000 (EX-II) for SES members covered by a certified SES performance appraisal system and $162,900 (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 2.9 percent in January 2009, since an SES member may not receive less than the minimum rate of the SES rate range. 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 2009 (January 17, 2009) may be made effective as of the first day of that first pay period (January 4, 2009). Determinations to adjust SES pay that are approved after January 17, 2009, 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.

Senior-Level and Scientific or Professional Positions–The minimum rate of basic pay for the senior-level and scientific or professional (SL/ST) rate range will be increased by 2.9 percent ($117,787 in 2009), which is the amount of the across-the-board GS pay increase. The maximum rate of basic pay for the SL/ST rate range is the rate for EX-IV ($153,200 in 2009). Note that beginning April 12, 2009, employees in SL/ST positions will begin receiving pay under the provisions of a new pay system established under the Senior Professional Performance Act of 2008 (Public Law 110-372, October 8, 2008). OPM will issue additional information on the new SL/ST pay system before April 12, 2009.

Administrative Law Judges–The Executive order reflects a decision by the President to increase the rates of basic pay for administrative law judges (ALJs) by 2.9 percent, rounded to the nearest $100 (except for those at AL-1 who will receive a 2.8 percent increase). The rate of basic pay for AL-1 will be $153,200 (equivalent to the rate for EX-IV). The rate of basic pay for AL-2 will be $149,600. The rates of basic pay for AL-3/A through 3/F will range from $102,400 to $141,600. The ALJ salary table is available on OPM’s Website at www.opm.gov/oca/09tables/indexSES.asp.

Administrative Appeals Judges–Under 5 U.S.C. 5372b, the rates of basic pay for administrative appeals judge (AAJ) positions must be set at a rate not less than the minimum rate of basic pay for level AL-3 and not more than the maximum rate of basic pay for level AL-3 of the ALJ pay system established under 5 U.S.C. 5372. At 5 CFR 534.603, OPM’s regulations link the structure of the AAJ pay system directly to the structure for level AL-3 of the ALJ pay system. The AAJ pay system includes six rates of basic pay—AA-1, 2, 3, 4, 5, and 6. These rates correspond to the rates of basic pay for AL-3/A, B, C, D, E, and F of the ALJ pay system. The AAJ salary table is available on OPM’s Website at www.opm.gov/oca/09tables/indexSES.asp.

Post Employment Restrictions–Agencies are required to notify SES members 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 ($153,105 in 2009) that they are subject to certain post-employment restrictions in 18 U.S.C. 207(c). (See 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, to notify an SES member 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 salary threshold and effective date, as appropriate.) The sample notice is available at www.opm.gov/oca/compmemo/2004/2004-01_attach1.asp.