The New SES Pay/Performance System

USDA-United States Department of Agriculture

The American Flag-The Senior Executive Service, Working for America, The New SES Pay/Performance System , United States Office of Personnel Management (OPM logo)

President Proposed in FY 2004 Budget

Passed as part of DoD FY 2004 Authorization
Coupled with Homeland Security Act of 2002
Complements Human Capital Performance Fund

Premise: Higher Performance = Higher Pay

Greater Pay Range (Base, Aggregate)
Higher Individual Base Pay Levels
Locality, Across-the-Board Adjustments Eliminated

The Foundation for a “Modern” SES Compensation System

Single “Payband” of Minimum/Maximum Rates-Chart showing that for a certified SES performance system, the minimum base rate will be $103,700, with a maximum of $157,000, and total maximum compensation, including any bonus, of $201,600. For a non-certified system the minimum will also be $103,700, but with a maximum rate of $144,600, and total maximum compensation, including any bonus, of $174,500.

The above chart shows that for a certified SES performance system, the minimum base rate will be $103,700, with a maximum of $157,000, and total maximum compensation, including any bonus, of $201,600.

For a non-certified system the minimum will also be $103,700, but with a maximum rate of $144,600, and total maximum compensation, including any bonus, of $174,500.

The Foundation for a “Modern” SES Compensation System

Conversion to the New SES Pay Range

Conversion Date: First day of first applicable pay period beginning on or after January 1, 2004 (January 11 for most employees).
Conversion Rate: Basic pay plus locality pay in effect immediately prior to January 11 converts to a new SES basic pay rate.
For the 12-month period following January 11, agencies may not reduce an SES member’s basic rate plus locality pay in effect on November 24, 2003.

SES Pay Adjustments After Conversion

Agencies may adjust an SES member’s basic pay after conversion on January 11 (or any date thereafter) by any amount up to EX-III when—

The SES member’s performance or contributions so warrant, and
The SES member is otherwise eligible.

Limited to one pay adjustment every 12 months, with certain exceptions.

Post-Employment Restrictions

New salary-based “trigger” effective January 11 (for most employees).
Any SES member whose basic rate after conversion equals or exceeds 86.5 percent of EX-II ($135,805 in 2004) will be subject to post employment restrictions.
Exceptions

Other Issues

Equivalent Systems
Extension of Locality Pay
Impact on SL/ST pay systems
Certification

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