Previous message Next messagePrevious in topicNext in topicPrevious by same author Next by same authorPrevious page (November 2003) Back to main OGE-ETHICSINFO-L page Join or leave OGE-ETHICSINFO-L (or change settings) Reply Post a new message Search Proportional font Non-proportional font *Date:* Tue, 25 Nov 2003 14:08:11 -0500 *Reply-To:* ETHICS_MAILINGLIST ETHICS_MAILINGLIST *From:* ETHICS_MAILINGLIST ETHICS_MAILINGLIST *Subject:* ETHICS NEWS AND INFORMATION NOVEMBER 25, 2003 *Content-Type:* text/plain; charset=ISO-8859-1 ETHICS NEWS AND INFORMATION NOVEMBER 25, 2003 AMENDMENTS TO 18 U.S.C. § 207(c); NEW STANDARD FOR DETERMINING "SENIOR EMPLOYEE" On Monday, November 24, the President signed H.R. 1588, the "National Defense Authorization Act for Fiscal Year 2004." Section 1125 of the law establishes a pay-for-performance compensation system for the Senior Executive Service (SES) and, consequently, amends 18 U.S.C. § 207(c) to establish a new standard for determining the applicability of the restriction. In brief, section 1125 abolishes the existing SES compensation scheme. Specifically, the law eliminates both the discrete rates of basic pay (ES-1 through ES-6) and locality pay and establishes a pay-for-performance system consisting of a single pay band. Because of the elimination of the discrete levels and locality pay, the bill amends 18 U.S.C. § 207(c) to establish a new standard for determining the applicability of the restriction. Under the new standard, § 207(c) will apply to individuals whose rate of basic pay exceeds 86.5 percent of the rate for level II of the Executive Schedule (EL II). This pay-for-performance compensation system is effective January 11, 2004. Assuming a 2.2 percent increase, EL II on January 11 will be $158,000; 86.5 percent of that amount will be $136,756.50. Accordingly, most SES members who are not now subject to § 207(c) will meet the new standard. The law also provides that SES members who currently are subject to § 207(c) will continue to be considered senior employees for two years after the effective date. We realize that this brief summary of the new provision does not answer all of your questions. However, we wanted to notify you of the impending change as soon as possible, and we will provide more detailed guidance in the near future. ------------------------------------------------------------------------ Back to: Top of message <#TOP> | Previous page | Main OGE-ETHICSINFO-L page ------------------------------------------------------------------------ Back to the LISTSERV home page at LISTSERV.ACCESS.GPO.GOV.