[Congressional Record Volume 147, Number 92 (Thursday, June 28, 2001)]
[Senate]
[Pages S7095-S7096]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WARNER:
  S. 1129. A bill to increase the rate of pay for certain offices and 
positions within the executive and judicial branches of the Government, 
respectively, and for other purposes; to the Committee on Governmental 
Affairs.
  Mr. WARNER. Mr. President, I am pleased to introduce legislation 
today to provide relief from the pay compression affecting career 
Federal employees serving in the Senior Executive Service, SES. It is 
nearing a decade since Senior Executive Service members have seen a 
meaningful adjustment in pay.
  The salaries earned by these employees are, on average, well below 
those earned by their peers in private industry. Pay caps for the 
Senior Executive Service and certain other positions in the government 
are tied to the Executive Schedule which includes senior level 
officials as well as Members. Pay freezes for positions on the 
Executive Schedule in five of the past eight years has resulted in pay 
compression so severe that 60 percent of the entire executive corps 
earns essentially the same salary despite differences in obligation and 
executive level. Over the past eight years, pay increases for these 
executives would average 1 percent per year. There is not much of an 
incentive to accept a higher position with added responsibilities and 
increased work hours for little or no increase in pay.
  Many senior executives leave Federal service to begin second careers 
in the private sector because of the salary compression. Others find 
that retirement is a more sensible option, whereas Federal annuitants 
receive an average two and a half percent cost of living adjustment 
every year compared to the average one percent per year pay increase a 
senior executive may receive if she or he remained in Federal service.
  I have heard from many SES employees relating their own stories as to 
how the problem of pay compression has affected them. I would like to 
share a few of these personal accounts.
  From an ES-6 with the Department of Defense: ``My pay has been capped 
and I have not been receiving raises. This year I received a surprise. 
I turned 55 and I subsequently experienced a $115.16 decrease in pay in 
January because my life insurance increased considerably, along with 
the contribution to retirement increase. Age 55 is not old! I expect to 
work a few more years and I expect my pay to increase so that I can 
enjoy my retired years with a reasonable retirement income that has not 
been eroded by the pay cap.''
  A Senior Executive at the Department of Health and Human Services: 
``The highest career Deputy General Counsel position in my agency 
became vacant, and I was called by the General Counsel to seriously 
consider taking it. Aside from the many family issues involved in any 
move to Washington, an overriding aspect is the fact that I am already 
at the pay cap. Thus, a move into a position with more responsibility 
would provide no financial incentive. Although I'm obviously not in 
government serve for any huge financial rewards, I don't want to go 
backward financially. Thus, I have decided to forgo this very 
challenging opportunity that would be a fitting pinnacle to my career 
with the Federal Government.''
  Private Contractor, Department of Defense: ``I turned down a job at 
the US Nuclear Command and Control System Support Staff, where I'd been 
stationed on active duty as a Regular Air Force Officer. I retired from 
the NSS four years ago after over 23 years in the Air Force, and was 
honored to get offered a Civil Service position back at the office. 
Instead, I reluctantly turned

[[Page S7096]]

down the job. The reason was primarily monetary. In order to take the 
job, it would have been necessary to give up part of my Air Force 
retirement pay because I retired as a regular officer. To make matters 
worse, my pay would have been capped. The bottom line is I would have 
taken a pay cut with no prospect of a pay raise in the foreseeable 
future. My family and I were asked to sacrifice pay and time together 
which we willingly did for over 23 years. Instead, I'm supporting the 
government in the role of a private sector contractor, where I'm fairly 
compensated for my expertise.''
  These are just a few examples which illustrate how the freeze on 
executive pay and resulting pay compression have seriously eroded the 
government's ability to attract and retain the most highly-competent 
career executives. This is a very timely issue for the Federal 
Government, seventy percent of the SES corps is eligible to retire over 
the next four years and almost half are expected to retire upon 
eligibility. Agencies are being forced to make special requests to 
increase salaries for their managers and supervisors. They recognize 
that when someone leaves Federal service, their knowledge and 
experience goes with them.
  The legislation I am introducing increases base pay for Senior 
Executives from Executive Level IV to Executive Level III, extends 
locality pay to the Executive Schedule, increases the locality cap from 
Executive Level III to Executive Level III plus locality pay, and 
increases the overall limit on compensation that can be received in a 
single year by career executives from Executive Level I to the Vice-
Presidential level. The bill also includes certain positions in the 
Federal judiciary which have been impacted by the pay caps. The actual 
raises career executives would receive would continue to be determined 
at the President's discretion.
  The legislation does not, in and of itself, raise senior executive 
pay and does not increase the salaries of Members of Congress.
  It is also my intention to ensure that this issue remains a priority 
for the incoming Director at the Office of Personnel Management. During 
the confirmation hearing before the Senate Governmental Affairs 
Committee last week for Mrs. Kay Coles James, President Bush's nominee 
to head the Office of Personnel Management, Mrs. James indicated her 
willingness to work with Members to address the problem of pay 
compression.
  Pay compression within the Senior Executives Service is one of the 
more pressing issues facing the Federal employee workforce and must be 
addressed as the situation will only get worse. The only means to 
alleviate pay compression for the Senior Executives at this time is 
through legislation. Therefore, I encourage my Senate colleagues to 
support the bill.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1129

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

      SECTION 1. PROVISIONS RELATING TO CERTAIN OFFICES AND 
                   POSITIONS WITHIN THE EXECUTIVE BRANCH.

       (a) Executive Schedule Pay Rates.--
       (1) In general.--Section 5318 of title 5, United States 
     Code, is amended--
       (A) by redesignating subsection (a) as subsection (a)(1) 
     and subsection (b) as paragraph (2); and
       (B) by adding at the end the following:
       ``(b)(1)(A) Effective at the beginning of the first 
     applicable pay period commencing on or after the first day of 
     the month in which any comparability payment becomes payable 
     under section 5304 or 5304a with respect to General Schedule 
     employees within the District of Columbia during any year, 
     the annual rate of pay for positions at each level of the 
     Executive Schedule (exclusive of any previous adjustment 
     under this subsection) shall be adjusted by an amount, 
     rounded to the nearest multiple of $100 (or if midway between 
     multiples of $100, to the next highest multiple of $100) 
     equal to the percentage of such annual rate of pay which 
     corresponds to the percentage adjustment becoming so payable 
     with respect to General Schedule employees within the 
     District of Columbia under such section 5304 or 5304a (as 
     applicable).
       ``(B) If an adjustment under this subsection is scheduled 
     to take effect on the same date as an adjustment under 
     subsection (a), the adjustment under subsection (a) shall be 
     made first.
       ``(2) An annual rate of pay, as adjusted under paragraph 
     (1), shall for all purposes be treated as the annual rate of 
     pay for the positions involved, except as otherwise provided 
     in subsection (a), paragraph (1), or any other provision of 
     law.
       ``(3) Nothing in this subsection shall be considered to 
     permit or require the continuation of an adjustment under 
     paragraph (1) after the comparability payment (for General 
     Schedule employees within the District of Columbia) on which 
     it was based has been terminated or superseded.''.
       (2) Contract appeals board members.--Section 5372a of title 
     5, United States Code, is amended--
       (A) in subsection (b)(2) by striking ``97 percent of the 
     rate under paragraph (1)'' and inserting ``no less than 97 
     percent of the rate under paragraph (1)'';
       (B) in subsection (b)(3) by striking ``94 percent of the 
     rate under paragraph (1)'' and inserting ``no less than 94 
     percent of the rate under paragraph (1)''; and
       (C) by adding at the end the following:
       ``(d) Subject to subsection (b), 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 5303 in the rates of basic pay under the 
     General Schedule, each rate of basic pay for contract appeals 
     board members shall be adjusted by an amount determined by 
     the President to be appropriate.''.
       (3) Conforming amendments.--Section 5318 of title 5, United 
     States Code, is amended--
       (A) in the first sentence of subsection (a)(1) (as 
     redesignated)--
       (i) by striking ``Subject to subsection (b),'' and 
     inserting ``Subject to paragraph (2),''; and
       (ii) by inserting ``(exclusive of any previous adjustment 
     under subsection (b))'' after ``Executive Schedule''; and
       (B) in subsection (a)(2) (as redesignated), by striking 
     ``subsection (a)'' and inserting ``paragraph (1)''.
       (b) Amendments Relating to Certain Limitation and Other 
     Provisions.--
       (1) Provisions to be applied by excluding executive 
     schedule comparability adjustment.--Sections 5303(f), 
     5304(h)(1)(F), 5306(e), and 5373(a) of title 5, United States 
     Code, are each amended by inserting ``, exclusive of any 
     adjustment under section 5318(b)'' after ``Executive 
     Schedule''.
       (2) Limitation on certain payments.--Section 5307(a) of 
     title 5, United States Code, is amended by adding at the end 
     the following:
       ``(3) In the case of an employee who is receiving basic pay 
     under section 5372a, 5376, or 5383, paragraph (1) shall be 
     applied by substituting `the annual rate of salary of the 
     Vice President of the United States' for `the annual rate of 
     basic pay payable for level I of the Executive Schedule'. 
     Regulations under subsection (c) may extend the application 
     of the preceding sentence to other equivalent categories of 
     employees.''.
       (3) References to level iv of the executive schedule.--
     Sections 5372(b)(1)(C), 5372a(b)(1), 5376(b)(1)(B), and 
     5382(b) of title 5, United States Code, are each amended by 
     striking ``level IV'' each place it appears and inserting 
     ``level III''.

     SEC. 2. PROVISIONS RELATING TO CERTAIN OFFICES AND POSITIONS 
                   WITHIN THE JUDICIAL BRANCH.

       (a) Increase in Maximum Rates of Basic Pay Allowable.--
       (1) For positions covered by section 604(a)(5) of title 28, 
     united states code.--Section 604(a)(5) of title 28, United 
     States Code, is amended by striking ``by law'' and inserting 
     ``by law (except that the rate of basic pay fixed under this 
     paragraph for any such employee may not exceed the rate for 
     level IV of the Executive Schedule)''.
       (2) For circuit executives.--Section 332(f)(1) of title 28, 
     United States Code, is amended by striking ``level IV of the 
     Executive Schedule pay rates under section 5315'' and 
     inserting ``level III of the Executive Schedule pay rates 
     under section 5314''.
       (3) For personnel of the administrative office of the 
     united states courts.--
       (A) In general.--Section 3(a) of the Administrative Office 
     of the United States Courts Personnel Act of 1990 (28 U.S.C. 
     602 note) is amended--
       (i) in paragraph (1), by striking ``level V'' and inserting 
     ``level IV''; and
       (ii) in paragraph (10), by striking ``level IV'' and 
     inserting ``level III''.
       (B) Provisions relating to certain additional positions.--
     Section 603 of title 28, United States Code, is amended by 
     striking ``level IV of the Executive Schedule under section 
     5315'' and inserting ``level III of the Executive Schedule 
     under section 5314''.
       (b) Salary of the Director of the Administrative Office of 
     the United States Courts.--Section 603 of title 28, United 
     States Code, is amended by striking ``district'' and 
     inserting ``circuit''.

     SEC. 3. EFFECTIVE DATE.

       The amendments made by this Act shall be effective with 
     respect to pay periods beginning on or after the date of 
     enactment of this Act.
                                 ______