Categories: Fedweek

New SEC Pay System Could Set Precedent

Despite several lingering issues, the Securities and Exchange Commission has put in place a new pay system that civil service leaders consider a possible model for reforms of the salary system in other agencies or possibly even government-wide. It features 20 grades, some of which have up to 31 steps, as compared to the standard 15 grade, 10 step general schedule system, plus an end to largely automatic within-grade raises, wheich are replaced by pay for performance. The agency is increasing the pay of most employees by 6 to 11 percent, in order to make their salaries comparable with those of other financial regulatory agencies that already have various special pay authorities. Congress last year authorized SEC to overhaul its pay system, although it remains uncertain whether the agency will get the money needed in the long run to keep the new system operative. Also, the National Treasury Employees Union, which represents many SEC employees, opposes the pay for performance arrangement, saying it leaves employees vulnerable to favoritism.

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