SECTION 1. SHORT TITLE; REFERENCES.

    (a) Short Title.--This Act may be cited as the ``Pay Compression 
Relief Act of 2004''.
    (b) References.--Except as otherwise expressly provided, whenever 
in this Act an amendment is expressed in terms of an amendment to a 
section or other provision, the reference shall be considered to be 
made to a section or other provision of title 5, United States Code.

SEC. 2. AMENDMENTS RELATING TO BASIC PAY.

    (a) Administrative Law Judges.--Section 5372(b)(1)(C) is amended by 
striking ``may not exceed the rate for level IV'' and inserting ``may 
not exceed the rate for level III''.
    (b) Contract Appeals Board Members.--Section 5372a is amended--
            (1) by striking subsection (b) and inserting the following:
    ``(b)(1) Rates of basic pay under this section--
            ``(A) shall consist of--
                    ``(i) the rate for the chairman of an appeals 
                board;
                    ``(ii) the rate for the vice chairman of an appeals 
                board; and
                    ``(iii) the rate for all other contract appeals 
                board members;
            ``(B) shall be initially adjusted by the Office of 
        Personnel Management and thereafter adjusted under paragraph 
        (2); and
            ``(C) shall not be greater than the rate of basic pay for 
        level III of the Executive Schedule nor less than 94 percent of 
        the rate of basic pay for level IV of the Executive Schedule.
    ``(2) Subject to paragraph (1)(C), 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.''; and
            (2) by adding after subsection (c) the following:
    ``(d) The Office of Personnel Management shall prescribe 
regulations necessary to administer this section.''.
    (c) Certain Senior-Level Positions.--Section 5376(b)(1)(B) is 
amended by striking ``level IV'' and inserting ``level III''.

SEC. 3. AMENDMENTS RELATING TO LOCALITY-BASED COMPARABILITY PAYMENTS.

    (a) Modified Maximums.--Paragraph (2) of section 5304(g), as 
amended by section 1125(a)(1)(A) of the National Defense Authorization 
Act for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1638), is 
amended to read as follows:
    ``(2) The applicable maximum under this subsection shall be--
            ``(A) level II of the Executive Schedule for positions 
        under subparagraphs (A)-(D) of subsection (h)(1); and
            ``(B) level III of the Executive Schedule for any positions 
        under subsection (h)(1)(E) which the President may 
        determine.''.
    (b) Administrative Appeals Judges.--Section 5304(h)(1), as amended 
by section 1125(a)(1)(B) of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1638), is amended--
            (1) in subparagraph (C), by striking ``and'' at the end;
            (2) by redesignating subparagraph (D) as subparagraph (E); 
        and
            (3) by inserting after subparagraph (C) the following:
            ``(D) a position to which section 5372b applies (relating 
        to administrative appeals judges); and''.

SEC. 4. TECHNICAL AND CONFORMING AMENDMENTS.

    Section 5304(h)(2)(B), as amended by section 1125(a)(1)(C) of the 
National Defense Authorization Act for Fiscal Year 2004 (Public Law 
108-136; 117 Stat. 1638), is amended--
            (1) in clause (i)--
                    (A) by striking ``(A) through (C)'' and inserting 
                ``(A) through (D)''; and
                    (B) by striking ``(vii)'' and inserting ``(vi)''; 
                and
            (2) in clause (ii), by striking ``(1)(D)'' and inserting 
        ``(1)(E)''.

SEC. 5. APPLICABILITY.

    (a) In General.--The amendments made by this Act shall--
            (1) for purposes of computing any rate of compensation for 
        service performed in any pay period beginning before the date 
        specified under subsection (b), be treated as if they had never 
        been enacted; and
            (2) for purposes of computing any rate of compensation for 
        service performed in any pay period beginning on or after the 
        date specified under subsection (b), take effect as if included 
        in the enactment of the National Defense Authorization Act for 
        Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1392).
    (b) Date Specified.--The date specified under this subsection shall 
be the earlier of--
            (1) the first day of the first pay period beginning at 
        least 90 days after the date of the enactment of this Act; or
            (2) such other date (not earlier than the date of the 
        enactment of this Act) as the Office of Personnel Management 
        may determine.

SEC. 6. REPORTING REQUIREMENT.

    (a) In General.--Not later than 6 months after the date of the 
enactment of this Act, the Office of Personnel Management shall submit 
to the Committee on Government Reform of the House of Representatives 
and the Committee on Governmental Affairs of the Senate a written 
report containing the following:
            (1) A list of all Executive Schedule positions, and the 
        rate of basic pay in effect for and the total number of 
        individuals occupying each such position.
            (2) A comparison of the rates of basic pay for 
        administrative law judges, administrative appeals judges, and 
        contract appeals board members (before and after taking 
        comparability pay into account) with--
                    (A) the rates of basic pay for Executive Schedule 
                positions; and
                    (B) the rates of basic pay for United States 
                magistrate judges, United States bankruptcy judges, 
                judges of a United States district court, and judges of 
                a United States court of appeals, respectively.
            (3) A determination of whether rates of basic pay for 
        administrative law judges, administrative appeals judges, and 
        contract appeals board members are incongruous with the rates 
        of basic pay for the positions referred to in paragraphs (2)(A) 
        and (2)(B), respectively.
            (4) A recommendation on the extent to which the rates of 
        basic pay for Executive Schedule positions should be adjusted 
        (if at all), based on any determination under paragraph (3).
            (5) Any other information or recommendation which the 
        Office of Personnel Management considers pertinent to the issue 
        of appropriate rates of basic pay for Executive Schedule 
        positions.
    (b) Data and Methodology.--The report of the Office of Personnel 
Management under this section shall include a statement identifying the 
data and methodology used in preparing such report.
    (c) Definitions.--For purposes of this section--
            (1) the term ``Executive Schedule positions'' means 
        positions under the Executive Schedule under subchapter II of 
        chapter 53 of title 5, United States Code, and all other 
        positions in the executive branch the annual rates of basic pay 
        for which are individually fixed, or expressly authorized to be 
        fixed, by statute, at the rate provided for a level of the 
        Executive Schedule or at a rate determined by reference to a 
        level of the Executive Schedule, but does not include 
        administrative law judges, contract appeals board members, or 
        administrative appeals judges;
            (2) the terms ``administrative law judge'', ``contract 
        appeals board member'', and ``administrative appeals judge'' 
        have the meanings given them by sections 5372, 5372a, and 5372b 
        of title 5, United States Code, respectively; and
            (3) the term ``comparability pay'' means comparability pay 
        under section 5304 of title 5, United States Code, or similar 
        provision of law.
            Amend the title so as to read: ``A bill to adjust the rates 
        of pay payable to administrative law judges, and for other 
        purposes.''.
Pay Compression Relief Act of 2004 - (Sec. 2) Increases the maximum rates of basic pay for administrative law judges (ALJs), contract appeals board (CAB) members, and certain senior-level positions by linking those rates to level III of the Executive Schedule (currently level IV).

Establishes a minimum rate of pay for CAB members of not less than 94 percent of the rate of basic pay for level IV of the Executive Schedule. Requires rates of basic pay for CAB members to be adjusted annually by an amount determined by the President after the initial adjustment required by this Act.

(Sec. 3) Increases the maximum rate of locality pay for ALJs and certain senior-level and Senior Executive Service positions to level II of the Executive Schedule (currently level III).

Increases the maximum rate of locality pay for CAB members to level III of the Executive Schedule (currently level IV).

Specifies that administrative appeals judges (AAJs) are eligible for locality pay.

(Sec. 5) Sets forth effective dates for purposes of computing increases in pay under this Act.

(Sec. 6) Requires the Office of Personnel Management to submit a report to the House Government Reform Committee and the Senate Governmental Affairs Committee within six months of enactment of this Act that contains: (1) a list of Executive Schedule positions and the rates of basic pay for and total number of individuals occupying those positions; (2) a comparison of the rates of basic pay for ALJs, AAJs, and CAB members with those applicable to Executive Schedule positions and specified Federal judges; (3) a determination of whether rates of basic pay for ALJs, AAJs, and CAB members are incongruous with the compared positions; (4) a recommendation on the extent to which rates of basic pay for Executive Schedule positions should be adjusted; and (5) any other information or recommendations pertinent to Executive Schedule positions.
To increase the minimum and maximum rates of basic pay payable to administrative law judges, and for other purposes.