# Presentation: 029002

## Strategic Compensation Conference 2000 Pay UpdateDonald J. WinsteadJerome D. MikowiczD. Bryce Baker

## Timeline for January 2001 Pay Increases

- 	**Dec 1999**	Report of the President’s Pay Agent (recommended 			average locality rate of 23.12 percent)
- 	**Feb 2000**	FY 2001 budget (President proposed 3.7 percent 			total increase)
- 	**Aug 31, 2000**	Last day for alternative plan for ECI-based increase
- 	**Nov 30, 2000**	Last day for alternative plan for locality payments
- 	**Dec 2000**	President’s Executive order
- 	**Jan 2001**	Increases become effective the first day of the first
- 		applicable pay period beginning on or after January 1

- Timeline for January 2001 Pay Increases

## Update on Locality Pay Areas

- Currently 32 locality pay areas (including “Rest of U.S.”)
- Proposed regulation in the* Federal Register* to add Rhode Island to the Boston area and Monterey County to the San Francisco area in 2001 as areas of application
- Sec. 639 of the Treasury-Postal appropriations bill would allow the President’s Pay Agent to use commercial salary surveys to set locality pay in limited circumstances

## Proposed Locality Pay Area Legislation

- Permits the President’s Pay Agent to use commercial salary survey data for locality pay.
- It must add Las Vegas, Nashville, Raleigh, Austin, and Louisville as separate locality pay areas in 2002 if data warrant.
- It may consider other local areas with 2,500 or more GS employees and a large number of non-farm workers in 2001-2005 reports.
- The Pay Agent must submit a report to Congress summarizing the use of commercial data by March 1, 2001.
- The Pay Agent must submit a report to Congress on the progress toward improving the Bureau of Labor Statistics surveys by May 1, 2001.

## Increase In President’s Salary

-   Effective at noon on January 20, 2001 -- $400,000.
-   First increase since January 20, 1969.
-   No formal link to Executive Schedule or other pay   	systems.

## Improving National Compensation Surveys

- Federal Salary Council and President’s Pay Agent had concerns about BLS National Compensation Surveys
- OPM/OMB/BLS working group formed
- Five areas for improvement
- (e.g., BLS to use a factor evaluation system with fewer than 9 factors to survey non-Federal jobs)
- OPM/OMB/BLS working group to brief FSC on progress

## Federal Wage System

**CAP ON FEDERAL WAGE SYSTEM PAY ADJUSTMENTS**
- Fiscal Year 2000
- 	Prevailing rate adjustments limited to 4.93 percent at               	each grade
- 	Pay cap, not a guaranteed increase
- Fiscal Year 2001
- 	President’s budget proposal would continue pay cap
-    Pay cap would be about 3.7 percent

## Federal Wage System

**REVIEW OF FEDERAL WAGE SYSTEM WAGE AREAS**
-   	Currently 131 appropriated fund wage areas and 125
-      	nonappropriated fund wage areas
-   	Since 1990, Federal Prevailing Rate Advisory 			Committee reviewed about one-third of FWS wage 		areas
-    Using 2000 census data, new reviews will start in about    	3 years
**OPERATING MANUALS**
-    FWS Appropriated Fund Manual available on
-      www.opm.gov/oca/wage
-    FWS Nonappropriated Fund Manual will be available 	  	later this year

## Slide 9

## Slide 10

## Slide 11

## Slide 12

## Slide 13

## Special Salary Rates

- 	Information technology (IT) employees--status of special rates study
- 	Special rates annual review
- 	Recently established special rate schedules
- 	Special rates lawsuit

## 3 Rs Payments

- 	Qs & As posted -- June 2000
- 	State Department retention allowance program
- 	OPM oversight study
- 	Future changes ?

**3 Rs Payments**

## Overtime Pay Issues

- 	Problems brought to OPM attention by Social Security managers, HHS (re Y2K), wildland firefighters, NTSB investigators, National Weather Service, and others
- 	Legislative proposals
- 	OPM’s goal:  a Governmentwide approach that is responsive to the needs of Federal agencies and that is consistent with non-Federal overtime pay practices

## Recent Regulations

- Dec. 10, 1999	Misc. compensation changes (final)
- Dec. 22, 1999	Group retention allowances (final)
- Mar. 24, 2000	Locality pay caps (proposed)
- May 25, 2000	Grade and pay retention (proposed)
- July 7, 2000	Evacuation pay (final)
- July 19, 2000	Pretax allotments (interim)
- Aug. 7, 2000	Holidays, back pay, PCAs (final)
- Aug. 16, 2000	Locality pay areas (proposed)

## Demonstration Projects

- 	IRS Restructuring & Reform Act
- 	--	broadbanding criteria
- 	--	3 Rs variations
- 	DOD Reinvention Labs
- 	DOD Acquisition Workforce Demo

## Other Stuff

- 	Premium pay fact sheets
- 	Feedback on OPM Back Pay Interest Program
- 	Official duty stations for telecommuters
- 	Other policy issues?