The Office of Personnel Management has issued changes to the
new Senior Executive Service performance-based pay system
effective Jan. 11, 2004, regarding post-employment conflict
of interest restrictions. The restrictions currently
covering ES-5 and ES-6, will be extended to cover individuals
with basic pay equal to or greater than 86.5 percent of the
level II ES rate, as well as to those who prior to Nov. 24,
2003 received basic pay exclusive of any applicable locality
based comparability payment, equal to or greater than the
ES-5 basic pay rate ($134,000), according to OPM.
The new law requires that those affected by the above changes
be notified in writing. OPM soon will issue guidance for doing
so, but asked that the heads of executive departments and
agencies be the ones who notify those SES members covered
by the changes. Here is a sample notice for doing so
http://www.opm.gov/oca/compmemo/2004/2004-01_attach1.asp
The new SES pay guidance says that “equal pay should be
provided for work of equal value . . . and appropriate
incentives and recognition should be provided for
excellence in performance,” according to OPM.
The new system replaces automatic SES locality pay
adjustments and automatic pay increases coinciding with
annual pay adjustments for general and executive schedule
employees, with SES pay increases directly linked to
individual and organizational performance, said the agency,
allowing for higher base pay limits, and establishing level
III ($142,500) as the base. (These changes do not apply to
senior-level and scientific or professional employees.)
The policy also calls for a new performance appraisal
system, an open pay range eliminating the six ES pay levels,
and a new compensation limit equal to the Vice President
($198,600), explained OPM.
For additional information, agency chief HR directors and
officers should contact the Center for Leadership and
Executive Resources Policy, at: (202) 606-1050.
