MAINTAINING RELATIVE POSITION IN SES RATE RANGE

When the minimum or maximum rate of basic pay of the Senior Executive Service (SES) rate range is increased, an agency may determine it is appropriate to increase the rate of basic pay of a senior executive who meets or exceeds his or her performance expectations by an amount that does not exceed the amount necessary to allow the employee to maintain his or her relative position in the SES rate range. (See 5 CFR 534.404(b)(4).) A pay increase to allow an employee to maintain his or her position in the SES rate range is not considered a pay adjustment for the purpose of applying the 12-month rule. (See 5 CFR 534.404(c).) This pay increase may be given separately from a pay increase that allows the employee to advance his or her relative position in the SES rate range. Pay increases that advance an employee's position in the SES rate range do not require the calculations shown in the examples, but they do restart the clock on the 12-month rule.

Limitations:

• A senior executive whose rate of basic pay is at or below the rate for level III of the Executive Schedule may receive a pay increase to maintain his or her relative position in the SES rate range up to an amount that results in a rate that does not exceed the new rate for level III. Only senior executives with an annual summary rating of outstanding may receive a pay increase that results in a rate above the rate for level III. A pay increase that results in a rate that exceeds level III must be approved by the agency head or designee.

• Except as explained below, a senior executive whose rate of basic pay is above level III of the Executive Schedule may not receive a pay increase to maintain his or her relative position in the rate range unless he or she has an annual summary rating of outstanding and is in a position that is covered by a certified performance appraisal system. A senior executive whose rate of basic pay is above level III and who is rated below outstanding, but above fully successful, and is in a position that is covered by a certified performance appraisal system may receive an increase to maintain his or her relative position in the rate range only in limited circumstances, e.g., for an exceptionally meritorious accomplishment. A pay increase that results in a rate that exceeds level III must be approved by the agency head or designee.

Effective Date:

A pay increase to allow an employee to maintain his or her position in the SES rate range is effective on the date the minimum and/or maximum rate range for the SES is adjusted (i.e., the first day of the first pay period beginning on or after January 1). Decisions to increase pay that are made during the first full pay period in January may be made effective on the first day of that pay period if the pay increase was officially approved no later than the end of the first full pay period. Decisions to adjust pay that are made during the remaining pay periods in the year must be made effective at the beginning of the next pay period.

Additional information on setting and adjusting SES rates of basic pay is available at this http://www.opm.gov/oca/compmemo/2004/2004-25.asp.

Hypothetical Example 1

Different percentage increases in the minimum (2.1 percent) and maximum (1.9 percent) rates of SES rate range. (Example assumes the agency's performance appraisal system for senior executives is certified.)

Calculations:

Hypothetical Example 2

Different percentage increases in the minimum (2.1 percent) and maximum (1.9 percent) rates of SES rate range. (Example assumes the agency's performance appraisal system for senior executives is certified.)

Calculations: