SENIOR EXECUTIVE SERVICE AND PERFORMANCE.

SEC. 1125. SENIOR EXECUTIVE SERVICE AND PERFORMANCE.(a) Senior Executive Pay.—Chapter 53 of title 5, United States Code, is amended—(1) in section 5304—(A) in subsection (g)(2)—(i) in subparagraph (A) by striking “subparagraphs (A)–(E)” and inserting “subparagraphs (A)–(D)”; and(ii) in subparagraph (B) by striking “subsection (h)(1)(F)” and inserting “subsection (h)(1)(D)”;(B) in subsection (h)(1)—(i) by striking subparagraphs (B) and (C);(ii) by redesignating subparagraphs (D), (E), and (F) as subparagraphs (B), (C), and (D), respectively;(iii) in clause (ii) by striking “or” at the end;(iv) in clause (iii) by striking the period and inserting a semicolon; and(v) by adding at the end the following new clauses:“(iv) a Senior Executive Service position under section 3132;“(v) a position in the Federal Bureau of Investigation and Drug Enforcement Administration Senior Executive Service under section 3151; or“(vi) a position in a system equivalent to the system in clause (iv), as determined by the President’s Pay Agent designated under subsection (d).”; and(C) in subsection (h)(2)(B)—(i) in clause (i)—(I) by striking “subparagraphs (A) through (E)” and inserting “subparagraphs (A) through (C)”; and(II) by striking “clause (i) or (ii)” and inserting “clause (i), (ii), (iii), (iv), (v), or (vii)”; and(ii) in clause (ii)—(I) by striking “paragraph (1)(F)” and inserting “paragraph (1)(D)”; and(II) by striking “clause (i) or (ii)” and inserting “clause (i), (ii), (iii), (iv), (v), or (vi)”;(2) by amending section 5382 to read as follows:“§ 5382. Establishment of rates of pay for the Senior Executive Service“(a) Subject to regulations prescribed by the Office of Personnel Management, there shall be established a range of rates of basic pay for the Senior Executive Service, and each senior executive shall be paid at one of the rates within the range, based on individual performance, contribution to the agency’s performance, or both, as determined under a rigorous performance management system. The lowest rate of the range shall not be less than the minimum rate of basic pay payable under section 5376, and the 117 STAT. 1639 highest rate, for any position under this system or an equivalent system as determined by the President’s Pay Agent designated under section 5304(d), shall not exceed the rate for level III of the Executive Schedule. The payment of the rates shall not be subject to the pay limitation of section 5306(e) or 5373.“(b) Notwithstanding the provisions of subsection (a), the applicable maximum shall be level II of the Executive Schedule for any agency that is certified under section 5307 as having a performance appraisal system which, as designed and applied, makes meaningful distinctions based on relative performance.“(c) No employee may suffer a reduction in pay by reason of transfer from an agency with an applicable maximum rate of pay prescribed under subsection (b) to an agency with an applicable maximum rate of pay prescribed under subsection (a).” ; and(3) in section 5383—(A) in subsection (a) by striking “which of the rates established under section 5382 of this title” and inserting “which of the rates within a range established under section 5382”; and(B) in subsection (c) by striking “for any pay adjustment under section 5382 of this title” and inserting “as provided in regulations prescribed by the Office under section 5385”.(b) Post-Employment Restrictions.—(1) Clause (ii) of section 207(c)(2)(A) of title 18, United States Code, is amended to read as follows:“(ii) employed in a position which is not referred to in clause (i) and for which that person is paid at a rate of basic pay which is equal to or greater than 86.5 percent of the rate of basic pay for level II of the Executive Schedule, or, for a period of 2 years following the enactment of the National Defense Authorization Act for Fiscal Year 2004, a person who, on the day prior to the enactment of that Act, was employed in a position which is not referred to in clause (i) and for which the rate of basic pay, exclusive of any locality-based pay adjustment under section 5304 or section 5304a of title 5, was equal to or greater than the rate of basic pay payable for level 5 of the Senior Executive Service on the day prior to the enactment of that Act,”.(2) Subchapter I of chapter 73 of title 5, United States Code, is amended by inserting at the end the following new section:“§ 7302. Post-employment notification“(a) Not later than the effective date of the amendments made by section 1106 of the National Defense Authorization Act for Fiscal Year 2004, or 180 days after the date of the enactment of that Act, whichever is later, the Office of Personnel Management shall, in consultation with the Attorney General and the Office of Government Ethics, promulgate regulations requiring that each Executive branch agency notify any employee of that agency who is subject to the provisions of section 207(c)(1) of title 18, as a result of the amendment to section 207(c)(2)(A)(ii) of that title by that Act.“(b) The regulations shall require that notice be given before, or as part of, the action that affects the employee’s coverage under section 207(c)(1) of title 18, by virtue of the provisions of section 117 STAT. 1640 207(c)(2)(A)(ii) of that title, and again when employment or service in the covered position is terminated.” .(3) The table of sections for chapter 73 of title 5, United States Code, is amended by adding after the item relating to section 7301 the following: “7302. Post-employment notification.”. (c) Effective Date and Applicability.—(1) The amendments made by this section shall take effect on the first day of the first pay period beginning on or after the first January 1 following the date of the enactment of this section.(2) The amendments made by subsection (a) may not result in a reduction in the rate of basic pay for any senior executive during the first year after the effective date of those amendments.(3) For the purposes of paragraph (2), the rate of basic pay for a senior executive shall be deemed to be the rate of basic pay set for the senior executive under section 5383 of title 5, United States Code, plus applicable locality pay paid to that senior executive, as of the date of the enactment of this Act.(4) Until otherwise provided by law, or except as otherwise provided by this section, any reference in a provision of law to a rate of basic pay that is above the minimum payable and below the maximum payable to a member of the Senior Executive Service shall be considered a reference to the rate of basic pay payable for level IV of the Executive Schedule.