CPM 2006-01

March 3, 2006

MEMORANDUM FOR HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES

The Office of Personnel Management (OPM) recently issued proposed regulations to provide agencies with the authority to increase the rates of basic pay of certain members of the Senior Executive Service (SES) whose pay was set before the agency's senior executive performance appraisal system was certified under 5 CFR part 430, subpart D, for the calendar year involved. (See Attachment.) The proposed regulations would allow an agency to review the rates of basic pay set for these SES members, which was capped at the rate for level III of the Executive Schedule, and provide an additional pay increase, if warranted, up to the rate for level II of the Executive Schedule upon certification of the agency's senior executive performance appraisal system for the current calendar year. OPM will accept comments for 30 days.

Under 5 U.S.C. 5307(d), an agency's senior executive performance appraisal system must be certified on a calendar year basis. Under 5 U.S.C. 5382(b), the maximum rate of the SES rate range may not exceed the rate for level III of the Executive Schedule unless the agency's senior executive performance appraisal system is certified under 5 U.S.C. 5307(d). Since many agencies' senior executive performance appraisal systems are not certified at the beginning of a calendar year, there is a gap from the time an agency may set SES pay above the rate for level III (in the previous calendar year) until the time an agency may again set SES pay above the rate for level III upon certification of its senior executive performance appraisal system (in the next calendar year). This "certification gap" limits agencies from setting or adjusting pay above the rate for level III of the Executive Schedule in situations where a higher rate may be warranted-e.g., to recruit individuals with superior leadership skills into the SES, to reassign current SES members into positions with substantially greater responsibility, or to retain an SES member who is critical to the mission of the agency. OPM's proposed regulations would allow an agency that obtains certification of its senior executive performance appraisal system(s) to review the rates of pay they set earlier in the calendar year and provide an additional pay increase, if warranted, up to the rate for level II of the Executive Schedule.

Additional Information

For additional information, agency Chief Human Capital Officers and/or Human Resources Directors should contact their assigned OPM Human Capital Officer. Employees should contact their agency human resources offices for assistance.

cc: Chief Human Capital Officers Human Resources Directors

Attachment: Proposed Regulations: SES Pay Regulations (29 KB)

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