The National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136,
November 24, 2003) established a new performance-based pay system for members
of the Senior Executive Service effective on the first day of the first applicable
pay period beginning on or after January 1, 2004 (January 11, 2004, for most
employees).
The former six levels of SES pay established under 5 U.S.C. 5382 (i.e. ES-1
through ES-6) were abolished and replaced by an open pay range. In addition,
locality pay is no longer extended to SES members. Under the new pay system,
an SES member's rate of basic pay, upon conversion, is the base salary plus
the locality pay in effect on the day prior to conversion. The new SES pay
range has a minimum rate of basic pay equal to 120 percent of the rate for
GS-15, step 1, and the maximum rate of basic pay is equal to the rate for
level III of the Executive Schedule. However, for any agency certified under
5 U.S.C. 5307(d) as having a performance appraisal system which, as designed
and applied, makes meaningful distinctions based on relative performance,
the maximum rate of basic pay will be the rate for level II of the Executive
Schedule.
Rates of Basic Pay
for Members of the Senior Executive Service
Minimum
Maximum
Agencies with a
Certified SES Performance Appraisal System
104,927
158,100
Agencies without a
Certified SES Performance Appraisal System
104,927
145,600
The Office of Personnel Management (OPM) recently issued interim regulations
to set forth the requirements for converting SES members to the new pay system
and adjusting SES rates of basic pay. In addition, OPM is providing guidance
on the new salary-based threshold for determining the applicability of certain
post-employment restrictions to SES members.
MEMORANDUM FOR HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES, July 26, 2004,
Certification of Performance Appraisal Systems for Senior Employees
(http://www.opm.gov/oca/compmemo/2004/2004-13.asp)
