The Office of Personnel Management (OPM) is posting draft 2007 salary tables on OPM's Web site at http://www.opm.gov/oca/07tables/index.asp. We anticipate the President will issue an Executive order later this month to implement the 2007 pay rates. We will issue a separate memorandum announcing the final 2007 salary tables after the President signs the Executive order.
Alternative Plan
Under the authority of 5 U.S.C. 5304a, the President has transmitted to Congress an alternative plan for locality pay adjustments affecting General Schedule (GS) employees in January 2007. (See Attachment 1.) The President's alternative plan results in an overall pay adjustment of 2.2 percent. Of the 2.2 percent average increase, 1.7 percent is allocated as an across-the-board increase for the General Schedule under 5 U.S.C. 5303. The alternative plan provides the remaining 0.5 percent as locality-based adjustments, under 5 U.S.C. 5304a.
2007 Salary Tables and Effective Date
We have posted draft 2007 salary tables on OPM's web site at http://www.opm.gov/oca/07tables/index.asp. The 2007 pay rates will become effective on the first day of the first applicable pay period beginning on or after January 1, 2007 (January 7, 2007) if no further action is taken by Congress.
Executive Schedule
Based on 5 U.S.C. 5318, Executive Schedule (EX) rates of pay will be increased by 1.7 percent (rounded to the nearest $100) and will become effective on the first day of the first pay period beginning on or after January 1, 2007 (January 7, 2007). The draft EX salary table is on OPM's Web site at http://www.opm.gov/oca/07tables/indexSES.asp.
Senior Executive Service
Under 5 U.S.C. 5376, the minimum rate of basic pay for the Senior Executive Service (SES) rate range will be adjusted to be consistent with the increase in the minimum rate of basic pay for senior-level positions under 5 U.S.C. 5376 ($111,676 in 2007). The applicable maximum rate of basic pay for the SES will be $168,000 (EX-II) for SES members covered by a certified SES performance appraisal system and $154,600 (EX-III) for SES members covered by an SES performance appraisal system that has not been certified. An SES member at the minimum rate of the SES rate range must receive a pay increase of 1.7 percent in January 2007, since an SES member may not receive less than the minimum rate of the SES rate range. An agency's determination to adjust the rate of basic pay for an SES member that is approved by the end of the first pay period in January 2007 (January 20, 2007) may be made effective as of the first day of the first pay period (January 7, 2007). Determinations to adjust SES pay that are approved after January 20, 2007, will become effective at the beginning of the next pay period following the approval. OPM's regulations for setting and adjusting SES pay are available at 5 CFR part 534, subpart D.
Post Employment Restrictions
Agencies are required to notify SES members and other individuals who are paid at a rate of basic pay equal to or greater than 86.5 percent of the rate for level II of the Executive Schedule ($145,320 in 2007) that they are subject to certain post-employment restrictions in 18 U.S.C. 207(c). (See 18 U.S.C. 207(c)(2)(A)(ii).) OPM's regulations requiring notification of post-employment restrictions are available at 5 CFR part 730. Agencies may continue to use the sample notice OPM provided in its memorandum of January 6, 2004 (CPM 2004-01), to notify an SES member or other individual that he or she is subject to the post-employment restrictions in 18 U.S.C. 207(c). (Agencies will need to update the salary threshold, as appropriate.) The sample notice is available at http://www.opm.gov/oca/compmemo/2004/2004-01_attach1.asp.
Aggregate Limitation on Pay
The aggregate limitation on pay for calendar year 2007 will be $186,600 (equivalent to the rate for level I of the Executive Schedule). SES members and employees in senior-level and scientific or professional (SL/ST) positions who are covered by a certified performance appraisal system are subject to a higher aggregate limitation on pay—up to the Vice President's salary ($215,700 in 2007). (See 5 U.S.C. 5307 and 5 CFR part 530, subpart B.) Information on obtaining certification of performance appraisal systems is available at http://www.opm.gov/oca/compmemo/2004/2004-13.asp.
Locality Pay Extensions
On November 13, 2006, the Director of OPM issued a memorandum on behalf of the President's Pay Agent (the Secretary of Labor and the Directors of the Office of Management and Budget (OMB) and OPM) that extends the GS locality payments to Administrative Law Judges, employees in SL/ST positions, and certain other non-GS categories of employees again in 2007. By law, Executive Schedule officials and SES members and employees in certain other equivalent pay systems are not authorized to receive locality payments.
Locality Rates
Attachment 2 provides a table showing the 2007 locality pay percentage and net percentage increase in each area (reflecting the combined effect of the 1.7 percent across-the-board base pay increase and the applicable increase in the locality pay percentage).
Changes in Locality Pay Areas in 2007
The President's Pay Agent has approved the following changes in locality pay areas effective on the first day of the first pay period beginning on or after January 1, 2007 (January 7, 2007):
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Grayson County, TX, is added to the Dallas-Fort Worth, TX, locality pay area
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Berks County, PA, is added to the Philadelphia-Camden-Vineland, PA-NJ-DE-MD locality pay area
Locality pay area definitions are posted at http://www.opm.gov/oca/07tables/locdef.asp.
2006 Annual Review of Special Salary Rates
We will issue a separate memorandum announcing the results of the 2006 annual review of special rates.
Questions
For additional information, agency Chief Human Capital Officers and/or Human Resources Directors should contact their assigned OPM Human Capital Officers. Employees should contact their agency human resources offices for assistance.
Attachments
cc: Chief Human Capital Officers
Human Resources Directors