U.S. Office of Personnel Management - Ensuring the Federal Government has an effective civilian workforce

UPDATE ON JANUARY 2005 PAY ADJUSTMENTS

General Schedule

• Under current law (5 U.S.C. 5303), the across-the-board portion of the General Schedule (GS) pay adjustment in January 2005 will be 2.5 percent unless Congress enacts legislation providing for a different amount.
• Under an alternative plan issued by President George W. Bush on November 29, 2004, locality pay percentages will remain at current levels in 2005 unless Congress enacts legislation providing for a different amount.
• Legislation is pending in Congress that would provide for a 3.5 percent overall GS pay increase in January 2005. If that legislation is enacted, the President will allocate the total increase between an across-the-board increase and locality pay increases by means of an Executive order that will be issued later this year to implement the January 2005 pay adjustments.
• The Office of Personnel Management (OPM) will post pay tables and accompanying guidance to Federal agencies as soon as possible after final decisions have been made regarding the January 2005 GS pay increase.

Special Salary Rates

• OPM is now conducting its annual review of existing special salary rates authorized under 5 U.S.C. 5305. Final decisions about increases in special rate schedules will be posted as soon as possible after the completion of the annual review and the issuance of the President's Executive order to implement the January 2005 GS pay increase.

Federal Wage System

• The issuance of appropriated fund and nonappropriated fund Federal Wage System (FWS) wage schedules effective in FY 2005 will be delayed until Congress completes action on pending legislation that would establish limits on FWS pay adjustments in FY 2005. FY 2005 wage schedules will be retroactive to their normal effective dates. The FY 2004 FWS wage schedules are available on the Department of Defense Web site at http://www.cpms.osd.mil/wage/wage.html.

Senior Executive Service

• Under current law, the maximum rates of basic pay for the Senior Executive Service (SES)-i.e., the rate for level II of the Executive Schedule for certified SES appraisal systems and the rate for level III of the Executive Schedule for noncertified SES appraisal systems-will be increased by 2.5 percent in January 2005, the same as the increase in the Executive Schedule. In addition, the minimum rate of the SES rate range will increase by 2.5 percent under current law, the same amount as the across-the-board GS pay increase authorized by current law.

Administrative Law Judges

• Within certain limits specified by law, the President is authorized to determine the annual across-the-board pay adjustment for administrative law judges (ALJs). The President's decision will be reflected in the Executive order to implement the January 2005 pay adjustments.

Senior-Level and Scientific or Professional Positions

• Under current law, the maximum rate of basic pay for employees in senior-level (SL) and scientific or professional (ST) positions will be increased by 2.5 percent, the same as the increase in the Executive Schedule, and the minimum rate will increase by 2.5 percent, the same amount as the across-the-board GS pay increase authorized by current law.

Extension of Locality Payments to Other Employees

• The President's Pay Agent (the Secretary of Labor and the Directors of the Office of Management and Budget and OPM) is authorized to determine whether the GS locality payments will be extended to ALJs, employees in SL/ST positions, and certain other non-GS categories of employees again in 2005. The Pay Agent's decision will be announced later this year.

Executive Schedule

• Under current law, the rates of pay for Executive Schedule officials, the Vice President, Members of Congress, and Judges and Justices will be increased by 2.5 percent in January 2005.

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