[Federal Register: August 26, 2008 (Volume 73, Number 166)]
[
Rules and Regulations]               
[Page 50179-50183]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26au08-1]                         



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Rules and Regulations

                                                Federal Register

________________________________________________________________________



This section of the FEDERAL REGISTER contains regulatory documents 

having general applicability and legal effect, most of which are keyed 

to and codified in the Code of Federal Regulations, which is published 

under 50 titles pursuant to 44 U.S.C. 1510.



The Code of Federal Regulations is sold by the Superintendent of Documents. 

Prices of new books are listed in the first FEDERAL REGISTER issue of each 

week.



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[[Page 50179]]







OFFICE OF PERSONNEL MANAGEMENT



5 CFR Parts 531, 535, and 536



RIN 3206-AK87



 
Critical Position Pay Authority



AGENCY: U.S. Office of Personnel Management.



ACTION: Final rule.



-----------------------------------------------------------------------



SUMMARY: The U.S. Office of Personnel Management (OPM) is issuing final 

regulations to govern the use of a critical position pay authority that 

allows higher rates of pay for positions that require a very high level 

of expertise in a scientific, technical, professional, or 

administrative field and are critical to the agency's mission. By law, 

agency requests for critical position pay authority must be approved by 

OPM in consultation with the Office of Management and Budget.



DATES: The regulations are effective on September 25, 2008.



FOR FURTHER INFORMATION CONTACT: Joe Ratcliffe, (202) 606-2838; FAX: 

(202) 606-4264; or e-mail: pay-performance-policy@opm.gov.



SUPPLEMENTARY INFORMATION: On April 25, 2007, the U.S. Office of 

Personnel Management issued proposed regulations (72 FR 20440) to 

govern the use of a critical position pay authority that enables the 

head of a Federal agency to request higher rates of pay for positions 

that require a very high level of expertise in a scientific, technical, 

professional, or administrative field and are critical to an agency's 

mission. The 60-day comment period ended on June 25, 2007. OPM received 

comments from nine individuals, one employee association, and five 

agencies. The comments are addressed in this final rule.

    One commenter did not approve of the critical pay authority statute 

and recommended the authority not be used. OPM disagrees with that 

assessment and believes the Government must use all available human 

resources management tools at its disposal to ensure Federal agencies 

are able to recruit and retain qualified employees.

    Several commenters asked whether specific positions might qualify 

for a critical position pay rate or recommended the critical position 

pay authority be used for certain positions. Employing agencies will 

decide internally whether to request use of a critical position pay 

authority. While OPM encourages use of a critical position pay 

authority wherever it might be needed and will consider all agency 

requests for the authority, we cannot speculate in advance as to 

whether particular positions might qualify.

    An agency wrote a letter supporting the proposed regulations.

    Section 535.106(a) of the proposed regulations provided a critical 

position pay rate is not considered a rate of basic pay for application 

of any saved pay or pay retention provisions (e.g., 5 U.S.C. 5363). An 

employee association and an agency expressed concern about an 

employee's pay if a critical position pay authority is terminated. Both 

the employee association and the agency recommended revising the 

regulations to allow for pay retention in such cases. We disagree. 

Under 5 U.S.C. 5377(e), a critical position pay authority must be 

terminated if conditions no longer warrant payment of the critical pay 

rate. Providing an entitlement to a saved rate or retained rate based 

on a critical position pay rate would be inconsistent with the 

requirement to terminate the authority. To conform with Sec.  

535.106(a), these final regulations revise Sec.  536.102(b) to clarify 

that an agency may not provide grade or pay retention under 5 CFR part 

536 to an employee in a covered pay system who is reduced in pay upon 

termination of a critical position pay authority. However, upon 

termination of critical position pay authority the employee's pay will 

be set under Sec.  535.105(e) at the rate to which the employee would 

be entitled had he or she not received critical pay. We also note 5 

U.S.C. 5377(e)(2) provides that termination of a critical position pay 

authority may not take effect until the authority has been available 

for the position for at least 1 calendar year, so long as the 

conditions justifying the authority are still met.

    An employee association recommended that all efforts be made to 

utilize current employees and create opportunities within all career 

paths necessary to meet the needs of the agency prior to using the 

critical position pay authority. We agree, but no changes to the 

proposed regulations are needed. Section 535.104(a) provides that an 

agency may request a critical position pay authority only after 

determining that the position in question cannot be filled with an 

exceptionally well-qualified individual through the use of other 

available human resources flexibilities and pay authorities. Section 

535.104(d)(11) requires an agency applying for a critical position pay 

authority to document why it could not, through diligent and 

comprehensive recruitment efforts and without using a critical position 

pay authority, fill the position within a reasonable period with an 

individual who could perform the duties and responsibilities in a 

manner sufficient to fulfill the agency's mission.

    An employee association recommended amending Sec.  535.107 to 

provide for public access to reports to Congress on the use of the 

critical position pay authority. OPM provides for public access to 

reports to Congress through the OPM Web site. No revision to Sec.  

535.107 is necessary.

    An agency asked whether the critical position pay authority can be 

applied to a group or class of positions. Under 5 U.S.C. 5377(b)(1), 

each individual position must be analyzed to determine eligibility. 

However, relevant factors considered may be similar for a group of 

similar positions. In such cases, OPM would assess each position in the 

group against common factors. Once each individual position in a group 

has been certified as meeting the section 5377(b)(1) requirements, 

approval may apply to the group. Each individual employee approved for 

a critical position pay rate must be ``exceptionally well qualified for 

the position'' as required by 5 U.S.C. 5377(b)(2).

    An agency commented that the proposed regulations did not address 

whether positions with a critical position pay authority are affected 

by adjustments to levels I and II of the Executive Schedule. We 

disagree. Section 535.105(c) provides that the



[[Page 50180]]



head of an agency may make subsequent adjustments in the rate of pay 

for a position with a critical position pay authority each January at 

the same time general pay adjustments are authorized for Executive 

Schedule employees under 5 U.S.C. 5318. Also, such adjustments may not 

exceed the new rate for Executive Schedule level II or other applicable 

maximum rate established for the critical position. We added a sentence 

to Sec.  535.104(c) to clarify that the President may establish a 

maximum limitation on a critical rate of pay that is approved at a rate 

above level I of the Executive Schedule.

    An agency asked OPM to consider whether the proposed regulations 

could allow for more timely and meaningful use of a critical position 

pay authority and whether the proposed regulations might be revised so 

that agencies could use the authority more quickly to better compete 

with non-Federal employers. It is not feasible, given the level of 

review required under 5 U.S.C. 5377, for the regulations to provide for 

immediate application of a critical position pay authority. However, 

OPM will work with agencies to provide pre-hire approval under the 

critical position pay authority.

    Two agencies asked whether the documentation requirements might be 

substantially reduced for agencies applying for a critical position pay 

authority. Government programs involving increased spending are 

appropriately subject to considerable public scrutiny. OPM believes the 

documentation requirements in the proposed regulations are appropriate.

    An agency said the proposed regulations appeared not to preclude 

use of a critical position pay authority for excepted service 

positions, and asked whether this was correct. Agencies are not 

restricted from seeking use of a critical position pay authority for 

excepted service positions.

    An agency said that some of its staff believed the term 

administrative field in Sec.  535.103(b) should be defined in the 

regulations. OPM believes such a definition is unnecessary. In 

considering whether to apply for a critical position pay authority, an 

agency is free to decide internally whether it believes the position is 

one that requires a very high level of expertise in a scientific, 

technical, professional, or administrative field. OPM will consider all 

agency requests for a critical position pay authority.

    An agency asked whether a critical position pay authority could be 

approved for a particular geographic area or across the board for 

certain types of positions rather than for one position at a time. By 

statute, the authority is intended to be applied by position and not by 

geographic area. In addition, under 5 U.S.C. 5377 only 800 positions 

Governmentwide may be approved for a critical position pay authority at 

any given time. An agency asked whether the regulations could be 

revised so that heads of agencies could delegate the decision of 

whether to apply for a critical position pay authority to subordinate 

positions, such as heads of major components. The definition of head of 

an agency in Sec.  535.102 already provides for such delegated 

authority.

    An agency asked OPM to clarify how recruitment, relocation, and 

retention incentives are to be calculated in conjunction with a 

critical position pay authority, particularly in calculating the 

locality pay portion. Employees receiving critical position pay may not 

receive locality pay under 5 U.S.C. 5304 or similar authority. However, 

employees who are eligible for recruitment, relocation, or retention 

incentives under 5 CFR 575 subparts A, B, and C will remain eligible 

for the incentives while receiving critical position pay, subject to 

applicable pay limitations (e.g., the aggregate limitation on pay under 

5 U.S.C. 5307). An employee's rate of basic pay is used to compute the 

maximum amount of a recruitment or relocation incentive that may be 

paid to an employee. Retention incentive lump sum and installment 

payments are computed by multiplying the retention incentive percentage 

rate established for the employee by the total amount of the basic pay 

the employee earned during the service or installment period. A 

critical position pay rate would be the rate of basic pay used for 

these recruitment, relocation, or retention incentive calculations. 

There are examples of calculating incentives in the fact sheets 

``Recruitment and Relocation Incentive Payment and Termination 

Calculations'' and ``Retention Incentive Payment and Termination 

Calculations'' on OPM's Web site.

    An agency recommended revising Sec.  535.105 to clarify eligibility 

for premium pay. OPM believes that such revision of the regulations is 

unnecessary. However, we note in response to the comment that 

eligibility for premium pay under 5 U.S.C. chapter 55, subchapter V, 

depends on the employee's pay system (disregarding the use of the 

critical pay authority) and the coverage rules in 5 U.S.C. 5541(2) and 

5 CFR 550.101.

    An agency recommended revising Sec.  535.104(d) to specify 

procedures and circumstances for submitting urgent requests for a 

critical position pay authority, such as in cases where expedited 

processing of requests for a critical position pay authority is in the 

interest of national security or public health or safety. OPM believes 

that handling of cases where expedited processing might be warranted is 

an administrative matter that need not be addressed in the regulations. 

However, if an agency believes expedited processing of a request for a 

critical position pay authority is in the interest of national security 

or public health or safety or is otherwise warranted, the agency should 

indicate that in its request.

    An agency recommended revising Sec.  535.105(e) to address agency 

flexibility to apply highest previous rate rules in setting basic pay 

if a critical position pay authority is discontinued for a General 

Schedule (GS) position. We agree. Revised Sec.  535.105(e) provides if 

an agency discontinues critical position pay for a given GS position 

(on its own initiative or because OPM, in consultation with OMB, 

terminates the authority), the employee's rate of basic pay will be set 

at the rate to which the employee would be entitled had he or she not 

received critical pay, as determined by the head of the agency, unless 

the employee is eligible for a higher payable rate under the GS maximum 

payable rate rule in Sec.  531.221 and the agency chooses to apply that 

rule. The pay set under the maximum payable rate rule may not exceed 

step 10 of the GS grade. To conform with the revised Sec.  535.105(e), 

these final regulations revise Sec.  531.221(a) to provide that the GS 

maximum payable rate rule may be used upon ``termination of a critical 

position pay authority under 5 CFR part 535''. These final regulations 

also revise Sec.  531.221(a) to provide that when highest previous rate 

is based on a critical position pay rate, an agency must follow the 

rules in Sec.  531.221(d). Section 531.221(d) provides the rules for 

when highest previous rate is based on a rate under a non-GS pay 

system. It is appropriate to follow the rules in Sec.  531.221(d) even 

though GS employees who receive critical position pay will be covered 

by the GS pay plan code because a critical pay rate is not considered a 

GS rate.

    An agency recommended revising Sec.  535.105(e) to require agencies 

to provide documentation to employees under a critical position pay 

authority showing the rate of basic pay the employee would receive 

absent the critical position pay authorization, since the 

responsibility for subsequent pay rate determinations could rest with 

another agency should the employee transfer to another agency. The 

agency



[[Page 50181]]



said that such documentation might appear in the ``remarks'' section of 

the employee's SF-50. We think such a requirement is not necessary in 

the regulations.

    An agency recommended revising Sec.  535.106 to address daily and 

biweekly aggregate limitations to ensure internal pay equity. We are 

not making such a revision because the limitations on critical position 

pay in 5 U.S.C. 5377 are on annual rates, not daily or biweekly 

aggregate pay.

    An agency suggested that OPM issue guidance that discusses the 

process of reviewing requests for a critical position pay authority and 

provides greater detail concerning the review process and its standards 

and timelines. OPM believes the regulations provide sufficient detail 

for agencies that might consider requesting an authority. The broad 

language used in the regulations to describe the types of positions 

that might be considered for a critical position pay authority allows 

for flexibility, and it is not practical to publish detailed standards 

that could apply effectively in every situation. Timing in the review 

process is an administrative matter and may vary by request.

    An agency suggested OPM define what constitutes ``a very high level 

of expertise.'' OPM believes it is not possible to write a definition 

of that term that would cover all the different positions and contexts 

for which it might be appropriate to apply a critical position pay 

authority. This is a matter for agency judgment.

    In Sec.  535.107, we removed language regarding the use of 

estimated rates to make the regulation conform with the language in the 

statute at 5 U.S.C. 5377(h)(2). Also, we made certain other minor 

changes in the language of the proposed regulations to improve clarity.



Executive Order 12866, Regulatory Review



    The Office of Management and Budget has reviewed this rule in 

accordance with Executive Order 12866.



Regulatory Flexibility Act



    I certify that these regulations will not have a significant 

economic impact on a substantial number of small entities because they 

will affect only Federal agencies and employees.



List of Subjects in 5 CFR Parts 531, 535, and 536



    Administrative practice and procedure; Freedom of information; 

Government employees; Law enforcement officers; Reporting and 

recordkeeping requirements; Wages.



U.S. Office of Personnel Management.

Michael W. Hager,

Acting Director.



0

Accordingly, the U.S. Office of Personnel Management amends title 5, 

Code of Federal Regulations, by amending part 531, adding a new part 

535, and amending part 536 as follows:



PART 531--PAY UNDER THE GENERAL SCHEDULE



0

1. The authority citation for part 531 continues to read as follows:



    Authority: 5 U.S.C. 5115, 5307, and 5338; sec. 4 of Pub. L. 103-

89, 107 Stat. 981; and E.O. 12748, 56 FR 4521, 3 CFR, 1991 Comp., p. 

316; Subpart B also issued under 5 U.S.C. 5303(g), 5305, 5333, 

5334(a) and (b), and 7701(b)(2); Subpart D also issued under 5 

U.S.C. 5335(g) and 7701(b)(2); Subpart E also issued under 5 U.S.C. 

5336; Subpart F also issued under 5 U.S.C. 5304, 5305, and 5338; and 

E.O. 12883, 58 FR 63281, 3 CFR, 1993 Comp., p. 682 and E.O. 13106, 

63 FR 68151, 3 CFR, 1998 Comp., p. 224.



Subpart B--Determining Rate of Basic Pay



0

2. Amend Sec.  531.221 as follows:

0

a. Revise the first sentence of paragraph (a)(1) to read as follows; 

and

0

b. Add paragraph (a)(4) to read as follows:





Sec.  531.221  Maximum payable rate rule.



    (a) General. (1) An agency may apply the maximum payable rate rule 

as described in this section to determine an employee's payable rate of 

basic pay under the GS pay system at a rate higher than the otherwise 

applicable rate upon reemployment, transfer, reassignment, promotion, 

demotion, change in type of appointment, or termination of a critical 

position pay authority under 5 CFR part 535. * * *

* * * * *

    (4) In applying this section, an agency must follow the rules in 

paragraph (d) of this section when highest previous rate is based on a 

critical position pay rate under 5 CFR part 535.

* * * * *



0

3. Add part 535 to read as follows:



PART 535--CRITICAL POSITION PAY AUTHORITY



Sec.

535.101 Purpose.

535.102 Definitions.

535.103 Authority.

535.104 Requests for and granting critical position pay authority.

535.105 Setting and adjusting rates of basic pay.

535.106 Treatment as a rate of basic pay.

535.107 Annual reporting requirements.



    Authority: 5 U.S.C. 5377; E.O. 13415, 71 FR 70641.





Sec.  535.101  Purpose.



    The purpose of this part is to provide a regulatory framework for 

the critical position pay authority authorized by 5 U.S.C. 5377. The 

Office of Personnel Management (OPM), in consultation with the Office 

of Management and Budget (OMB), may grant authority to the head of an 

agency to fix the rate of basic pay for one or more positions under 

this part.





Sec.  535.102  Definitions.



    Agency has the meaning given that term in 5 U.S.C. 5102.

    Critical position means a position for which OPM has granted 

authority to the head of an agency to exercise the pay-setting 

authority provided in 5 U.S.C. 5377.

    Critical position pay authority means the authority that may be 

granted to the head of an agency by OPM under 5 U.S.C. 5377 to set the 

rate of basic pay for a given critical position under the provisions of 

that section.

    Critical position pay rate means the specific rate of pay 

established by the head of an agency for an employee in a critical 

position based upon the exercise of the critical position pay 

authority. A critical position pay rate is a rate of basic pay to the 

extent provided in Sec.  535.106.

    Employee means an employee (as defined in 5 U.S.C. 2105) in or 

under an agency.

    Head of an agency means the agency head or an official who has been 

delegated the authority to act for the agency head in the matter 

concerned.





Sec.  535.103  Authority.



    (a) Subject to a grant of authority from OPM in consultation with 

OMB and all other requirements in this part, the head of an agency may 

fix the rate of basic pay for a critical position at a rate not less 

than the rate of basic pay that would otherwise be payable for the 

position, but not greater than--

    (1) The rate payable for level II of the Executive Schedule (unless 

paragraph (a)(2) or (a)(3) of this section applies);

    (2) The rate payable for level I of the Executive Schedule in 

exceptional circumstances based on information and data that justify a 

rate higher than the rate payable for level II of the Executive 

Schedule; or

    (3) A rate in excess of the rate for level I of the Executive 

Schedule that is established in rare circumstances with the written 

approval of the President.

    (b) The head of an agency may exercise his or her critical position 

pay authority only--

    (1) When such a position requires expertise of an extremely high 

level in



[[Page 50182]]



a scientific, technical, professional, or administrative field and is 

critical to the agency's successful accomplishment of an important 

mission; and

    (2) To the extent necessary to recruit or retain an individual 

exceptionally well-qualified for the critical position.

    (c) If critical position pay authority is granted for a position, 

the head of an agency may determine whether it is appropriate to 

exercise the authority with respect to any proposed appointee or 

incumbent of the position.

    (d) An agency granted critical position pay authority may continue 

to use the authority for an authorized position as long as needed. OPM 

will monitor the use of critical position pay authorities annually, 

through the agency's required reports under Sec.  535.107, and will 

terminate the authority associated with a given position after 

notifying the agency if, in OPM's judgment in consultation with OMB, 

the authority is no longer needed.





Sec.  535.104  Requests for and granting critical position pay 

authority.



    (a) An agency may request critical position pay authority only 

after determining that the position in question cannot be filled with 

an exceptionally well-qualified individual through the use of other 

available human resources flexibilities and pay authorities. Agency 

requests must include the information in paragraph (d) of this section. 

OPM, in consultation with OMB, will review agency requests. OPM will 

advise the requesting agency as to whether the request is approved and 

when the agency's critical position pay authority becomes effective.

    (b) A request for critical position pay authority (or authorities) 

must be signed by the head of an agency and submitted to OPM. Requests 

covering multiple positions must include a list of the positions in 

priority order. The head of an agency may request coverage of positions 

of a type not listed in 5 U.S.C. 5377(a)(2), as authorized by 5 U.S.C. 

5377(i)(2) and Executive Order 13415.

    (c) Requests for critical position pay authority to set pay above 

the rate for level II of the Executive Schedule and up to the rate for 

level I of the Executive Schedule because of exceptional circumstances 

require information and data that justify the higher pay. Requests for 

critical position pay authority to set pay above the rate for level I 

of the Executive Schedule due to rare circumstances require approval by 

the President. The head of an agency must submit such requests to OPM 

with the information required in paragraph (d) of this section. If OPM, 

in consultation with OMB, concurs with a request to set pay above the 

rate for level I of the Executive Schedule, OPM will seek the 

President's approval. The President may establish a maximum limitation 

on the critical pay rate.

    (d) At a minimum, all requests for critical position pay authority 

must include:

    (1) Position title;

    (2) Position appointment authority (for Senior Executive Service 

positions, appointment authority for any incumbent);

    (3) Pay plan and grade/level;

    (4) Occupational series of the position;

    (5) Geographic location of the position;

    (6) Current salary of the position or incumbent;

    (7) Name of incumbent (or ``Vacant'');

    (8) Length of time the incumbent has been in the position or length 

of time the position has been vacant;

    (9) A written evaluation of the need to designate the position as 

critical. Such an evaluation must include--

    (i) The kinds of work required by the position and the context 

within which it operates;

    (ii) The range of positions and qualification requirements that 

characterize the occupational field, including those that require 

extremely high levels of expertise;

    (iii) The rates of pay reasonably and generally required in the 

public and private sectors for similar positions; and

    (iv) The availability of individuals who possess the qualifications 

to do the work required by the position;

    (10) Documentation, with appropriate supporting data, of the 

agency's experience and, as appropriate, the experience of other 

organizations, in efforts to recruit or retain exceptionally well-

qualified individuals for the position or for a position sufficiently 

similar with respect to the occupational field, required 

qualifications, and other pertinent factors, to provide a reliable 

comparison;

    (11) Assessment of why the agency could not, through diligent and 

comprehensive recruitment efforts and without using the critical 

position pay authority, fill the position within a reasonable period 

with an individual who could perform the duties and responsibilities in 

a manner sufficient to fulfill the agency's mission. This assessment 

must include a justification as to why the agency could not, as an 

effective alternative, use other human resources flexibilities and pay 

authorities, such as recruitment, relocation, and retention incentives 

under 5 CFR part 575;

    (12) An explanation regarding why the position should be designated 

a critical position and made eligible for a higher rate of pay under 

this part within its organizational context (i.e., relative to other 

positions in the organization) and, when applicable, how it compares 

with other critical positions in the agency. The agency must include an 

explanation of how it will deal with perceived inequities among agency 

employees (e.g., situations in which employees in positions designated 

as critical would receive higher rates of pay than their peers, 

supervisors, or other employees in positions with higher-level duties 

and responsibilities);

    (13) Documentation of the effect on the successful accomplishment 

of important agency missions if the position is not designated as a 

critical position, including an explanation and justification for OPM 

and OMB to expedite processing in cases where the agency believes that 

urgency warrants expedited processing;

    (14) Any additional information the agency may deem appropriate to 

demonstrate that higher pay is needed to recruit or retain an employee 

for a critical position;

    (15) Unless the position is an Executive Schedule position, a copy 

of the position description and qualification standard for the critical 

position; and

    (16) The desired rate of basic pay for requests to set pay above 

the rate for level II of the Executive Schedule and justification to 

show that such a rate is necessary to recruit and retain an individual 

exceptionally well-qualified for the critical position.





Sec.  535.105  Setting and adjusting rates of basic pay.



    (a) The rate of basic pay for a critical position may not be less 

than the rate of basic pay, including any locality-based comparability 

payments established under 5 U.S.C. 5304 or special rate supplement 

under 5 U.S.C. 5305 (or other similar payment or supplement under other 

legal authority) that would otherwise be payable for the position.

    (b) If critical position pay authority is granted for a position, 

the head of an agency may set pay initially at any amount up to the 

rate of pay for level II or level I of the Executive Schedule, as 

applicable, without further approval unless a higher maximum rate is 

approved by the President under Sec.  535.104(c).

    (c) The head of an agency may make subsequent adjustments in the 

rate of basic pay for a critical position each January at the same time 

general pay adjustments are authorized for Executive Schedule employees 

under section 5318 of title 5, United States



[[Page 50183]]



Code. Such adjusted rates may not exceed the new rate for Executive 

Schedule level II or other applicable maximum established for the 

critical position. However, the employee must have at least a rating of 

Fully Successful or equivalent, and subsequent adjustments must be 

based on labor market factors, recruitment and retention needs, and 

individual accomplishments and contributions to an agency's mission.

    (d) Employees receiving critical position pay are not entitled to 

locality-based comparability payments established under 5 U.S.C. 5304, 

special rate supplements under 5 U.S.C. 5305, or other similar payments 

or supplements under other legal authority.

    (e) If an agency discontinues critical position pay for a given 

position (on its own initiative or because OPM, in consultation with 

OMB, terminates the authority under Sec.  535.103(d)), the employee's 

rate of basic pay will be set at the rate to which the employee would 

be entitled had he or she not received critical pay, as determined by 

the head of the agency, unless the employee is eligible for a higher 

payable rate under the General Schedule maximum payable rate rule in 

Sec.  531.221 and the agency chooses to apply that rule.





Sec.  535.106  Treatment as rate of basic pay.



    A critical position pay rate is considered a rate of basic pay for 

all purposes, including any applicable premium pay, except--

    (a) Application of any saved pay or pay retention provisions (e.g., 

5 U.S.C. 5363); or

    (b) Application of any adverse action provisions (e.g., 5 U.S.C. 

7512).





Sec.  535.107  Annual reporting requirements.



    (a) OPM must submit an annual report to Congress on the use of the 

critical position pay authority. Agencies must submit the following 

information to OPM by January 31 of each year on their use of critical 

position pay authority for the previous calendar year:

    (1) The name, title, pay plan, and grade/level of each employee 

receiving a higher rate of basic pay under this subpart;

    (2) The annual rate or rates of basic pay paid in the preceding 

calendar year to each employee in a critical position;

    (3) The beginning and ending dates of such rate(s) of basic pay, as 

applicable;

    (4) The rate or rates of basic pay that would have been paid but 

for the grant of critical position pay. This includes what the rate or 

rates of basic pay were, or would have been, without critical position 

pay at the time critical position pay is initially exercised and any 

subsequent adjustments to basic pay that would have been made if 

critical position pay authority had not been exercised; and

    (5) Whether the authority is still needed for the critical 

position(s).



PART 536--GRADE AND PAY RETENTION



0

4. The authority citation for part 536 continues to read as follows:



    Authority: 5 U.S.C. 5361-5366; sec. 4 of the Performance 

Management and Recognition System Termination Act of 1993, Pub. L. 

103-89, 107 Stat. 981; Sec.  536.405 also issued under 5 U.S.C. 552, 

Freedom of Information Act, Pub. L. 92-502; Sec.  536.308 also 

issued under section 301(d)(2) of the Federal Workforce Flexibility 

Act of 2004, Pub. L. 108-411, 118 Stat. 2305.



Subpart A-General Provisions



0

5. Amend Sec.  536.102 as follows:

0

a. Remove ``or'' at the end of paragraph (b)(7);

0

b. Remove the period at the end of paragraph (b)(8) and add ``; or'' in 

its place; and

0

c. Add paragraph (b)(9) to read as follows:





Sec.  536.102  Coverage.



* * * * *

    (b) * * *

    (9) Is reduced in pay upon termination of a critical position pay 

authority under 5 CFR part 535.

* * * * *



[FR Doc. E8-19758 Filed 8-25-08; 8:45 am]

BILLING CODE 6325-39-P