[Federal Register Volume 69, Number 93 (Thursday, May 13, 2004)]
[Notices]
[Page 26626]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-10868]


=======================================================================
-----------------------------------------------------------------------

OFFICE OF PERSONNEL MANAGEMENT


January 2004 Pay Adjustments

AGENCY: Office of Personnel Management.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The President adjusted the rates of basic pay and locality 
payments for certain categories of Federal employees effective in 
January 2004. This notice documents those pay adjustments for the 
public record.

FOR FURTHER INFORMATION CONTACT: Carey Johnson, Center for Pay and 
Performance Policy, Division for Strategic Human Resources Policy, 
Office of Personnel Management; (202) 606-2858; FAX (202) 606-0824; or 
e-mail to [email protected].

SUPPLEMENTARY INFORMATION: On December 30, 2003, the President signed 
Executive Order 13322 (69 FR 231, January 2, 2004), which implemented a 
2.0 percent overall average increase above the 2003 rates. Executive 
Order 13322 provided an across-the-board increase of 1.5 percent in the 
rates of basic pay for the statutory pay systems and an overall average 
increase in the General Schedule (GS) locality rates equal to 
approximately 0.5 percent of the GS payroll. On March 3, 2004, the 
President signed Executive Order 13332 (69 FR 10889, March 8, 2004), 
which amended Executive order 13322 to provide a retroactive pay 
increase averaging 4.1 percent above the 2003 rates (in lieu of the 2.0 
percent overall average increase originally implemented). The President 
made these adjustments consistent with the Consolidated Appropriations 
Act, 2004 (Public Law 108-199, January 23, 2004).
    Schedule 1 of Executive Order 13332 provides the rates for the 2004 
General Schedule and reflects a 2.7 percent across-the-board increase. 
Executive Order 13332 also includes the percentage amounts of the 2004 
locality payments. (See Section 5 and Schedule 9 of Executive Order 
13332.)
    The publication of this notice satisfies the requirement in section 
5(b) of Executive order 13332 that the Office of Personnel Management 
(OPM) publish appropriate notice of the 2004 locality payments in the 
Federal Register.
    GS employees receive locality payments under 5 U.S.C. 5304. 
Locality payments apply in the 48 contiguous States and the District of 
Columbia. In 2004, locality payments ranging from 10.90 percent to 
24.21 percent apply to GS employees in 32 locality pay areas. These 
2004 locality pay percentages, which replaced the locality pay 
percentages that were applicable in 2003, became effective on the first 
day of the first applicable pay period beginning on or after January 1, 
2004. An employee's locality-adjusted annual rate of pay is computed by 
increasing his or her scheduled annual rate of basic pay (as defined in 
5 U.S.C. 5302(8) and 5 CFR 531.602) by the applicable locality pay 
percentage. (See 5 CFR 531.604 and 531.605.)
    Executive Order 13332 establishes the new Executive Schedule, which 
incorporates the 2.2 percent increase (rounded to the nearest $100) 
required under 5 U.S.C. 5318. By law, Executive Schedule officials are 
not authorized to receive locality pay.
    Section 1125 of the National Defense Authorization Act for Fiscal 
year 2004 (Public Law 108-136, November 24, 2003) established a new 
performance-based pay system for the Senior Executive Service (SES). 
The new law replaces the former six-level SES pay system with a single 
open-range pay system with only the minimum and maximum rates of pay 
set by law. The minimum rate of basic pay may not be less than the 
minimum rate payable under 5 U.S.C. 5376 for senior-level positions 
($104,927 in 2004), and the maximum rate of basic pay may not exceed 
the rate for level III of the Executive Schedule ($145,600 in 2004). 
The maximum rate of the SES rate range will increase to level II of the 
Executive Schedule ($158,100 in 2004) in those agencies that are 
certified under 5 U.S.C. 5307(d) as having executive performance 
appraisal systems that make meaningful distinctions based on relative 
performance. Additional information on the SES pay system is available 
on the Internet at http://www.opm.gov/oca/compmemo/2004/2004-03.asp.
    The Executive order adjusted the rates of basic pay for 
administrative law judges (ALJs) by 2.2 percent (rounded to the nearest 
$100). The maximum rate of basic pay for ALJs is set by law at the rate 
for level IV of the Executive Schedule, which is now $136,900. (See 5 
U.S.C. 5372.)
    The rates of basic pay for Board of Contract Appeals (BCA) members 
are calculated as a percentage of the rate for level IV of the 
Executive Schedule. (See 5 U.S.C. 5372a.) Therefore, BCA rates of basic 
pay were increased by approximately 2.2 percent. Also, the maximum rate 
of basic pay for senior-level (SL) and scientific or professional (ST) 
positions was increased by approximately 2.2 percent (to $136,900) 
because it is tied to the rate for level IV of the Executive Schedule. 
The minimum rate of basic pay for SL/ST positions is equal to 120 
percent of the minimum rate of basic pay for GS-15 and thus was 
increased by 2.7 percent (to $104,927). (See 5 U.S.C. 5376.)
    On December 17, 2003, the President's Pay Agent extended the 2004 
locality-based comparability payments to certain categories of non-GS 
employees. The Governmentwide categories include employees in SL/ST 
positions, ALJs, and BCA members. The maximum locality rate of pay for 
these employees is the rate for level III of the Executive Schedule 
($145,600 in 2004).
    OPM published ``Salary Tables for 2004,'' (OPM Doc. 124-48-6) in 
May 2004. This publication provides complete salary tables 
incorporating the 2004 pay adjustments, information on general pay 
administration matters, locality pay area definitions, Internal Revenue 
Service withholding tables, and other related information. The rates of 
pay shown in this publication are the official rates of pay for 
affected employees and are hereby incorporated as part of this notice. 
You may purchase copies of ``Salary Tables for 2004'' from the 
Government Printing Office (GPO) by calling (202) 512-1800 (outside the 
DC area: 1-866-512-1800) or FAX (202) 512-2250. You may order copies 
directly from GPO on the Internet at http://bookstore.gpo.gov. In 
addition, you can find pay tables on OPM's Internet Web site at http://www.opm.gov/oca/payrates/index.asp.

Office of Personnel Management.
Kay Coles James,
Director.
[FR Doc. 04-10868 Filed 5-12-04; 8:45 am]
BILLING CODE 6325-39-M