pay rates and systems

pay rates and systems Sec. 407. (a) Chapter 53 of title 5, United States Code, is amended by adding at the end thereof the following new subchapter: “SUBCHAPTER VIII— PAY FOR THE SENIOR EXECUTIVE SERVICE “§5381. Definitions “For the purpose of this subchapter, ‘agency’, ‘Senior Executive Service position’, and ‘senior executive’ have the meanings set forth in section 3132(a) of this title. “§5382. Establishment and adjustment of rates of pay for the Senior Executive Service “(a) There shall be 5 or more rates of basic pay for the Senior Executive Service, and each senior executive shall be paid at one of the rates. The rates of basic pay shall be initially established and thereafter adjusted by the President subject to subsection (b) of this section. “(b) In setting rates of basic pay, the lowest rate for the Senior Executive Service shall not be less than the minimum rate of basic pay payable for GS–16 of the General Schedule and the highest rate shall not exceed the rate for level IV of the Executive Schedule. The payment of the rates shall not be subject to the pay limitation of section 5308 or 5373 of this title. “(c) Subject to subsection (b) of this section, effective at the beginning of the first applicable pay period commencing on or after the first day of the month in which an adjustment takes effect under section 5305 of this title in the rates of pay under the General Schedule, each rate of basic pay for the Senior Executive Service shall be adjusted by an amount determined by the President to be appropriate. The adjusted rates of basic pay for the Senior Executive Service shall be included in the report transmitted to the Congress by the President under section 5305 (a)(3) or (c)(1) of this title. “(d) The rates of basic pay that are established and adjusted under this section shall be printed in the Federal Register and shall supersede any prior rates of basic pay for the Senior Executive Service. “§5383. Setting individual senior executive pay “(a) Each appointing authority shall determine, in accordance with criteria established by the Office of Personnel Management, which of the rates established under section 5382 of this title shall be paid to each senior executive under such appointing authority. 92 STAT. 1172 “(b) In no event may the aggregate amount paid to a senior executive during any fiscal year under sections 4507, 5382, and 5384 of this title exceed the annual rate payable for positions at level I of the Executive Schedule in effect at the end of such fiscal year. “(c) Except for any pay adjustment under section 5382 of this title, the rate of basic pay for any senior executive may not be adjusted more than once during any 12-month period. “(d) The rate of basic pay for any career appointee may be reduced from any rate of basic pay to any lower rate of basic pay only if the career appointee receives a written notice of the reduction at least 15 days in advance of the reduction. “§5384. Performance awards in the Senior Executive Service “(a) (1) To encourage excellence in performance by career appointees, performance awards shall be paid to career appointees in accordance with the provisions of this section. “(2) Such awards shall be paid in a lump sum and shall be in addition to the basic pay paid under section 5382 of this title or any award paid under section 4507 of this title. “(b) (1) No performance award under this section shall be paid to any career appointee whose performance was determined to be less than fully successful at the time of the appointee’s most recent performance appraisal and rating under subchapter II of chapter 43 of this title. “(2) The amount of a performance award under this section shall be determined by the agency head but may not exceed 20 percent of the career appointee’s rate of basic pay. “(3) The number of career appointees in any agency paid performance awards under this section during any fiscal year may not exceed 50 percent of the number of Senior Executive Service positions in such agency. This paragraph shall not apply in the case of any agency which has less than 4 Senior Executive Service positions. “(c) Performance awards paid by any agency under this section shall be based on recommendations by performance review boards established by such agency under section 4314 of this title. “(d) The Office of Personnel Management may issue guidance to agencies concerning the proportion of Senior Executive Service salary expenses that may be appropriately applied to payment of performance awards and the distribution of awards. “§5385. Regulations “The Office of Personnel Management shall prescribe regulations to carry out the purpose of this subchapter.”. (b) The analysis of chapter 53 of title 5, United States Code, is amended by adding at the end thereof the following new items: “SUBCHAPTER VIII— PAY FOR THE SENIOR EXECUTIVE SERVICE “Sec. “5381. Definitions. “5382. Establishment and adjustment of rates of pay for the Senior Executive Service. “5383. Setting individual senior executive pay. “5384. Performance awards in the Senior Executive Service. “5385. Regulations.”.