[Code of Federal Regulations]
[Title 5, Volume 3]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR1330.401]

[Page 172]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
              CHAPTER III--OFFICE OF MANAGEMENT AND BUDGET
 
PART 1330_HUMAN RESOURCES MANAGEMENT--Table of Contents
 
     Subpart D_Performance Appraisal Certification for Pay Purposes
 
Sec.  1330.401  Purpose.

    Note to Subpart D: Regulations identical to this subpart appear at 5 
CFR part 430, subpart D.


    (a) This subpart implements 5 U.S.C. 5307(d), as added by section 
1322 of the Chief Human Capital Officers Act of 2002 (Title XIII of 
Public Law 107-296, the Homeland Security Act of 2002; November 25, 
2002), which provides a higher aggregate limitation on pay for certain 
members of the Senior Executive Service (SES) under 5 U.S.C. 5382 and 
5383 and employees in senior-level (SL) and scientific or professional 
(ST) positions paid under 5 U.S.C. 5376. In addition, this subpart is 
necessary to administer rates of basic pay for members of the SES under 
5 U.S.C. 5382, as amended by section 1125 of the National Defense 
Authorization Act for Fiscal Year 2004. The regulations in this subpart 
strengthen the application of pay-for-performance principles to senior 
executives and senior professionals. Specifically, the statutory 
provisions authorize an agency to apply a higher maximum rate of basic 
pay for senior executives (consistent with 5 CFR part 534, subpart D, 
when effective) and apply a higher aggregate limitation on pay 
(consistent with 5 CFR part 530, subpart B) to its senior employees, but 
only after OPM, with OMB concurrence, has certified that the design and 
application of the agency's appraisal systems for these employees make 
meaningful distinctions based on relative performance. This subpart 
establishes the certification criteria and procedures that OPM will 
apply in considering agency requests for such certification.
    (b) Senior executives generally may receive an annual rate of basic 
pay up to the rate for level III of the Executive Schedule under 5 
U.S.C. 5382 and 5 CFR part 534, subpart D, when effective. Senior 
employees generally may receive total compensation in a calendar year up 
to the rate for level I of the Executive Schedule under 5 U.S.C. 5307(a) 
and 5 CFR 530.203(a). Only employees covered by an appraisal system that 
OPM, with OMB concurrence, certifies under this subpart are eligible for 
a maximum annual rate of basic pay for senior executives up to the rate 
for level II of the Executive Schedule (consistent with 5 U.S.C. 5382 
and 5 CFR part 534, subpart D, when effective) and a higher aggregate 
pay limitation equivalent to the total annual compensation payable to 
the Vice President (consistent with 5 U.S.C. 5307(d) and 5 CFR 
530.203(b)).