Senior Executive Service Pay, 10913-10914 [E6-3016]
Download as PDF
10913
Proposed Rules
Federal Register
Vol. 71, No. 42
Friday, March 3, 2006
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
OFFICE OF PERSONNEL
MANAGEMENT
5 CFR Part 534
RIN 3206–AL01
Senior Executive Service Pay
Office of Personnel
Management.
ACTION: Proposed rule.
wwhite on PROD1PC61 with PROPOSALS
AGENCY:
SUMMARY: The Office of Personnel
Management (OPM) is issuing 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 for the calendar year involved.
The proposed regulations would allow
an agency to review the rate of basic pay
of these SES members 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.
DATES: Comments must be received on
or before April 3, 2006.
ADDRESSES: Send or deliver comments
to Donald J. Winstead, Deputy Associate
Director for Pay and Performance
Policy, Office of Personnel Management,
Room 7H31, 1900 E Street, NW.,
Washington, DC 20415–8200; by FAX at
(202) 606–0824; or by e-mail at payperformance-policy@opm.gov.
FOR FURTHER INFORMATION CONTACT: Jo
Ann Perrini by telephone at (202) 606–
2858; by FAX at (202) 606–0824; or by
e-mail at pay-performancepolicy@opm.gov.
SUPPLEMENTARY INFORMATION: The Office
of Personnel Management (OPM) is
issuing 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
VerDate Aug<31>2005
16:45 Mar 02, 2006
Jkt 208001
430, subpart D, for the calendar year
involved. 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.
The National Defense Authorization
Act for Fiscal Year 2004 (Pub. L. 108–
136, November 24, 2003) authorized a
new performance-based pay system for
SES members. Under the new SES pay
system, an agency must set and adjust
the rate of basic pay for an SES member
on the basis of the employee’s
performance and/or contribution to the
agency’s performance, as determined by
the agency through the administration
of its performance management
system(s) for senior executives. On
December 6, 2004, OPM issued final
regulations on the administration of the
SES performance-based pay system and
prescribed the criteria for establishing
and adjusting SES rates of basic pay and
paying performance awards (69 FR
70355).
Agencies have had experience
administering pay under the new SES
performance-based system for 2 years.
During this period, we have identified a
recurring problem that occurs at the
beginning of each calendar year and that
prevents an agency from setting pay
above the rate for level III of the
Executive Schedule because its senior
executive performance appraisal system
has not yet been certified for that
calendar year.
Under 5 U.S.C. 5307(d), an agency’s
senior executive performance appraisal
system is certified on a calendar year
basis. (The regulations in 5 CFR part
430, subpart D, provide the
requirements for obtaining certification
of a performance appraisal system for
senior executives.) 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).
Therefore, an agency may not set pay for
an SES member at a rate above the rate
for level III until its senior executive
performance appraisal system is
PO 00000
Frm 00001
Fmt 4702
Sfmt 4702
certified for the calendar year involved.
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 level III
(in the previous calendar year) to the
time an agency may again set SES pay
above level III upon certification of its
senior executive performance appraisal
system (in the next calendar year).
In one limited circumstance, OPM
authorized the extension of provisional
certification into the following calendar
year—i.e., for the sole purpose of
adjusting pay on the basis of official
ratings determined during the calendar
year for which their appraisal system
was certified. (See 5 CFR 430.405(c)(2).)
However, this limited exception does
not help affected agencies in other
situations—e.g., recruiting individuals
with superior leadership skills into the
SES, reassigning current SES members
into positions with substantially greater
responsibility, or retaining an SES
member who is critical to the mission of
the agency—because non-certified
agencies may not set SES pay above the
rate for level III in these situations.
Moreover, the statutory prohibition
against adjusting SES pay more than
once during any 12-month period
(except in unusual situations as
described in OPM’s regulations) results
in these individuals receiving lower
rates of basic pay than individuals in
the same situations whose rates of basic
pay were or are set during a period
when the agency’s senior executive
appraisal system has been certified.
The requirement in 5 U.S.C. 5307(d)
that senior executive performance
appraisal systems be certified on a
calendar year basis may be changed
only by legislation. We are proposing
regulations to allow agencies that obtain
certification of their senior executive
performance appraisal system(s) to
review the rates of pay they set earlier
in the calendar year for certain SES
members and provide an additional pay
increase, if warranted, up to the rate for
level II of the Executive Schedule.
Under this proposal, the determination
to provide an additional pay increase
could not be made effective before the
date the agency’s senior executive
performance appraisal system is
certified under 5 CFR part 430, subpart
D, or after December 31st of the calendar
year for which the agency’s system is
E:\FR\FM\03MRP1.SGM
03MRP1
10914
Federal Register / Vol. 71, No. 42 / Friday, March 3, 2006 / Proposed Rules
certified. The additional pay increase
would not be considered a pay
adjustment for the purpose of applying
5 CFR 534.404(c) (the ‘‘12-month rule’’).
Waiver of 60-Day Comment Period for
Proposed Rulemaking
Pursuant to 5 U.S.C. 553(b)(3)(B), I
find that good cause exists to waive the
60-day comment period for general
notice of proposed rulemaking. Limiting
the comment period for the proposed
regulations to 30 days will enable OPM
to issue final regulations in 2006, which
will give practical effect to these
regulations at the earliest possible
moment. The final regulations will
permit agencies to review the rates of
basic pay set previously in early 2006
for SES members and provide an
additional pay increase, if warranted,
later in 2006 upon certification of the
agency’s senior executive performance
appraisal system.
Regulatory Flexibility Act
I certify that these regulations would
not have a significant economic impact
on a substantial number of small entities
because they would apply to only
Federal agencies and employees.
E.O. 12866, Regulatory Review
This rule has been reviewed by the
Office of Management and Budget in
accordance with E.O. 12866.
List of Subjects in Part 534
Government employees, Hospitals,
Students, and Wages.
Office of Personnel Management.
Linda M. Springer,
Director.
Accordingly, OPM proposes to amend
part 534 of title 5 of the Code of Federal
Regulations as follows:
PART 534—PAY UNDER OTHER
SYSTEMS
1. The authority citation for part 534
continues to read as follows:
wwhite on PROD1PC61 with PROPOSALS
Authority: 5 U.S.C. 1104, 3161(d), 5307,
5351, 5352, 5353, 5376, 5382, 5383, 5384,
5385, 5541, 5550a, and sec. 1125 of the
National Defense Authorization Act for FY
2004, Public Law 108–136, 117 Stat. 1638 (5
U.S.C. 5304, 5382, 5383, 7302; 18 U.S.C.
207).
Subpart D—Pay and Performance
Awards Under the Senior Executive
Service
2. In § 534.404, redesignate
paragraphs (c)(3)(v) and (vi) as (c)(3)(vi)
and (vii), respectively, add new
paragraph (c)(3)(v), and revise paragraph
(e) to read as follows:
VerDate Aug<31>2005
16:45 Mar 02, 2006
Jkt 208001
§ 534.404 Setting and adjusting pay for
senior executives.
*
*
*
*
*
(c) 12-month rule. * * *
(3) * * *
(v) A determination to provide an
additional pay increase under paragraph
(e)(2) of this section when an agency’s
senior executive performance appraisal
system is certified under 5 CFR part
430, subpart D, after the beginning of a
calendar year;
*
*
*
*
*
(e) Adjustments in pay after
certification of applicable performance
appraisal system.
(1) In the case of an agency that
obtains certification of a performance
appraisal system for senior executives
under 5 CFR part 430, subpart D, an
authorized agency official may increase
a covered senior executive’s rate of basic
pay up to the rate for level II of the
Executive Schedule, consistent with the
limitations in § 534.403(a)(3). The
authorized agency official may provide
an increase in pay if warranted under
the conditions prescribed in paragraph
(b) of this section and if the senior
executive is otherwise eligible for such
an increase (i.e., he or she did not
receive a pay adjustment under
§ 534.404(c) during the previous 12month period). An adjustment in pay
made under this paragraph is
considered a pay adjustment for the
purpose of applying § 534.404(c).
(2) In the case of an agency that was
prevented from establishing or adjusting
a rate of basic pay above the rate for
level III of the Executive Schedule for an
individual upon initial appointment to
the SES under § 534.404(a) or for a
current SES member using one of the
exceptions to the 12-month rule in
§ 534.404(c)(4)(i), (ii), or (iii) because the
agency had not yet obtained
certification of its performance appraisal
system for senior executives under 5
CFR 430, subpart D, in the current
calendar year, an authorized agency
official may increase such a senior
executive’s rate of basic pay up to the
rate for level II of the Executive
Schedule upon certification of the
agency’s senior executive performance
appraisal system, consistent with the
limitations in § 534.403(a)(3). The
authorized agency official may review
the previous determination to set or
adjust the pay of a senior executive to
determine whether, and to what extent,
an additional pay increase may be
warranted based on the same criteria
used for the previous determination.
The determination to provide an
additional pay increase may not be
made effective before the date the
PO 00000
Frm 00002
Fmt 4702
Sfmt 4702
agency’s senior executive performance
appraisal system is certified under 5
CFR 430, subpart D, or after December
31st of the calendar year for which the
agency’s system is certified. An
adjustment in pay made under this
paragraph is not considered a pay
adjustment for the purpose of applying
§ 534.404(c) and does not begin a new
12-month period for that purpose.
*
*
*
*
*
[FR Doc. E6–3016 Filed 3–2–06; 8:45 am]
BILLING CODE 6325–39–P
DEPARTMENT OF AGRICULTURE
Food and Nutrition Service
7 CFR Parts 210, 220, 225, 226, 246,
247 and 251
RIN 0584–AD43
Data Collection Related to Institutions
and Organizations
Food and Nutrition Service,
USDA.
ACTION: Proposed rule.
AGENCY:
SUMMARY: This proposed rule is part of
the Department’s effort to fulfill its
responsibilities under Executive Orders
13279 and 13280. Under this rule, State
agencies would collect and report
information related to faith-based and
community organizations currently
participating and applying to participate
in Food and Nutrition Service (FNS)
nutrition assistance programs. This
information would be added to existing
collections for the affected programs. It
would enable FNS to identify the faithbased and community organizations
participating in FNS programs,
determine the level of participation of
faith-based and community
organizations in its programs, ensure
that FNS’ programs are open to all
eligible organizations and evaluate the
effectiveness of its technical assistance
and outreach efforts. It will not
adversely impact the application or
participation of any organization or
institution currently participating in, or
seeking to participate in FNS nutrition
assistance programs.
DATES: Comments must be received on
or before June 1, 2006 to be assured of
consideration.
ADDRESSES: FNS invites interested
persons to submit comments on this
proposed rule. Comments may be
submitted by any of the following
methods:
• E-Mail: Send comments to
SNPPROPOSAL@FNS.USDA.GOV.
E:\FR\FM\03MRP1.SGM
03MRP1
Agencies
[Federal Register Volume 71, Number 42 (Friday, March 3, 2006)]
[Proposed Rules]
[Pages 10913-10914]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-3016]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 71, No. 42 / Friday, March 3, 2006 / Proposed
Rules
[[Page 10913]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 534
RIN 3206-AL01
Senior Executive Service Pay
AGENCY: Office of Personnel Management.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Office of Personnel Management (OPM) is issuing 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 for the calendar year
involved. The proposed regulations would allow an agency to review the
rate of basic pay of these SES members 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.
DATES: Comments must be received on or before April 3, 2006.
ADDRESSES: Send or deliver comments to Donald J. Winstead, Deputy
Associate Director for Pay and Performance Policy, Office of Personnel
Management, Room 7H31, 1900 E Street, NW., Washington, DC 20415-8200;
by FAX at (202) 606-0824; or by e-mail at pay-performance-
policy@opm.gov.
FOR FURTHER INFORMATION CONTACT: Jo Ann Perrini by telephone at (202)
606-2858; by FAX at (202) 606-0824; or by e-mail at pay-performance-
policy@opm.gov.
SUPPLEMENTARY INFORMATION: The Office of Personnel Management (OPM) is
issuing 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. 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.
The National Defense Authorization Act for Fiscal Year 2004 (Pub.
L. 108-136, November 24, 2003) authorized a new performance-based pay
system for SES members. Under the new SES pay system, an agency must
set and adjust the rate of basic pay for an SES member on the basis of
the employee's performance and/or contribution to the agency's
performance, as determined by the agency through the administration of
its performance management system(s) for senior executives. On December
6, 2004, OPM issued final regulations on the administration of the SES
performance-based pay system and prescribed the criteria for
establishing and adjusting SES rates of basic pay and paying
performance awards (69 FR 70355).
Agencies have had experience administering pay under the new SES
performance-based system for 2 years. During this period, we have
identified a recurring problem that occurs at the beginning of each
calendar year and that prevents an agency from setting pay above the
rate for level III of the Executive Schedule because its senior
executive performance appraisal system has not yet been certified for
that calendar year.
Under 5 U.S.C. 5307(d), an agency's senior executive performance
appraisal system is certified on a calendar year basis. (The
regulations in 5 CFR part 430, subpart D, provide the requirements for
obtaining certification of a performance appraisal system for senior
executives.) 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). Therefore, an agency may not set pay
for an SES member at a rate above the rate for level III until its
senior executive performance appraisal system is certified for the
calendar year involved. 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 level III (in the previous calendar year) to the time an agency
may again set SES pay above level III upon certification of its senior
executive performance appraisal system (in the next calendar year).
In one limited circumstance, OPM authorized the extension of
provisional certification into the following calendar year--i.e., for
the sole purpose of adjusting pay on the basis of official ratings
determined during the calendar year for which their appraisal system
was certified. (See 5 CFR 430.405(c)(2).) However, this limited
exception does not help affected agencies in other situations--e.g.,
recruiting individuals with superior leadership skills into the SES,
reassigning current SES members into positions with substantially
greater responsibility, or retaining an SES member who is critical to
the mission of the agency--because non-certified agencies may not set
SES pay above the rate for level III in these situations. Moreover, the
statutory prohibition against adjusting SES pay more than once during
any 12-month period (except in unusual situations as described in OPM's
regulations) results in these individuals receiving lower rates of
basic pay than individuals in the same situations whose rates of basic
pay were or are set during a period when the agency's senior executive
appraisal system has been certified.
The requirement in 5 U.S.C. 5307(d) that senior executive
performance appraisal systems be certified on a calendar year basis may
be changed only by legislation. We are proposing regulations to allow
agencies that obtain certification of their senior executive
performance appraisal system(s) to review the rates of pay they set
earlier in the calendar year for certain SES members and provide an
additional pay increase, if warranted, up to the rate for level II of
the Executive Schedule. Under this proposal, the determination to
provide an additional pay increase could not be made effective before
the date the agency's senior executive performance appraisal system is
certified under 5 CFR part 430, subpart D, or after December 31st of
the calendar year for which the agency's system is
[[Page 10914]]
certified. The additional pay increase would not be considered a pay
adjustment for the purpose of applying 5 CFR 534.404(c) (the ``12-month
rule'').
Waiver of 60-Day Comment Period for Proposed Rulemaking
Pursuant to 5 U.S.C. 553(b)(3)(B), I find that good cause exists to
waive the 60-day comment period for general notice of proposed
rulemaking. Limiting the comment period for the proposed regulations to
30 days will enable OPM to issue final regulations in 2006, which will
give practical effect to these regulations at the earliest possible
moment. The final regulations will permit agencies to review the rates
of basic pay set previously in early 2006 for SES members and provide
an additional pay increase, if warranted, later in 2006 upon
certification of the agency's senior executive performance appraisal
system.
Regulatory Flexibility Act
I certify that these regulations would not have a significant
economic impact on a substantial number of small entities because they
would apply to only Federal agencies and employees.
E.O. 12866, Regulatory Review
This rule has been reviewed by the Office of Management and Budget
in accordance with E.O. 12866.
List of Subjects in Part 534
Government employees, Hospitals, Students, and Wages.
Office of Personnel Management.
Linda M. Springer,
Director.
Accordingly, OPM proposes to amend part 534 of title 5 of the Code
of Federal Regulations as follows:
PART 534--PAY UNDER OTHER SYSTEMS
1. The authority citation for part 534 continues to read as
follows:
Authority: 5 U.S.C. 1104, 3161(d), 5307, 5351, 5352, 5353, 5376,
5382, 5383, 5384, 5385, 5541, 5550a, and sec. 1125 of the National
Defense Authorization Act for FY 2004, Public Law 108-136, 117 Stat.
1638 (5 U.S.C. 5304, 5382, 5383, 7302; 18 U.S.C. 207).
Subpart D--Pay and Performance Awards Under the Senior Executive
Service
2. In Sec. 534.404, redesignate paragraphs (c)(3)(v) and (vi) as
(c)(3)(vi) and (vii), respectively, add new paragraph (c)(3)(v), and
revise paragraph (e) to read as follows:
Sec. 534.404 Setting and adjusting pay for senior executives.
* * * * *
(c) 12-month rule. * * *
(3) * * *
(v) A determination to provide an additional pay increase under
paragraph (e)(2) of this section when an agency's senior executive
performance appraisal system is certified under 5 CFR part 430, subpart
D, after the beginning of a calendar year;
* * * * *
(e) Adjustments in pay after certification of applicable
performance appraisal system.
(1) In the case of an agency that obtains certification of a
performance appraisal system for senior executives under 5 CFR part
430, subpart D, an authorized agency official may increase a covered
senior executive's rate of basic pay up to the rate for level II of the
Executive Schedule, consistent with the limitations in Sec.
534.403(a)(3). The authorized agency official may provide an increase
in pay if warranted under the conditions prescribed in paragraph (b) of
this section and if the senior executive is otherwise eligible for such
an increase (i.e., he or she did not receive a pay adjustment under
Sec. 534.404(c) during the previous 12-month period). An adjustment in
pay made under this paragraph is considered a pay adjustment for the
purpose of applying Sec. 534.404(c).
(2) In the case of an agency that was prevented from establishing
or adjusting a rate of basic pay above the rate for level III of the
Executive Schedule for an individual upon initial appointment to the
SES under Sec. 534.404(a) or for a current SES member using one of the
exceptions to the 12-month rule in Sec. 534.404(c)(4)(i), (ii), or
(iii) because the agency had not yet obtained certification of its
performance appraisal system for senior executives under 5 CFR 430,
subpart D, in the current calendar year, an authorized agency official
may increase such a senior executive's rate of basic pay up to the rate
for level II of the Executive Schedule upon certification of the
agency's senior executive performance appraisal system, consistent with
the limitations in Sec. 534.403(a)(3). The authorized agency official
may review the previous determination to set or adjust the pay of a
senior executive to determine whether, and to what extent, an
additional pay increase may be warranted based on the same criteria
used for the previous determination. The determination to provide an
additional pay increase may not be made effective before the date the
agency's senior executive performance appraisal system is certified
under 5 CFR 430, subpart D, or after December 31st of the calendar year
for which the agency's system is certified. An adjustment in pay made
under this paragraph is not considered a pay adjustment for the purpose
of applying Sec. 534.404(c) and does not begin a new 12-month period
for that purpose.
* * * * *
[FR Doc. E6-3016 Filed 3-2-06; 8:45 am]
BILLING CODE 6325-39-P