39–006 

113TH CONGRESS REPT. 113–349 " ! HOUSE OF REPRESENTATIVES 2d Session Part 1 

CFPB PAY FAIRNESS ACT OF 2013 

FEBRUARY 10, 2014.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. HENSARLING, from the Committee on Financial Services, 

submitted the following 

R E P O R T 

together with 

MINORITY VIEWS 

[To accompany H.R. 2385] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Financial Services, to whom was referred the 

bill (H.R. 2385) to amend the Dodd-Frank Wall Street Reform and 

Consumer Protection Act to set the rate of pay for employees of the 

Bureau of Consumer Financial Protection in accordance with the 

General Schedule, having considered the same, report favorably 

thereon without amendment and recommend that the bill do pass. 

PURPOSE AND SUMMARY

H.R. 2385, the CFPB Pay Fairness Act of 2013, amends the 

Dodd-Frank Wall Street Reform and Consumer Protection Act (the 

‘‘Dodd-Frank Act’’) to require the Consumer Financial Protection 

Bureau (CFPB) to pay its employees according to the General 

Schedule set forth in section 5332 of title 5 of the United States 

Code. 

BACKGROUND AND NEED FOR LEGISLATION

Under current law, the rates of basic pay for CFPB employees 

are set and adjusted by the Director of the CFPB. Compensation 

(including benefits) for classes of employees must be comparable to 

the compensation and benefits being provided by the Board of Governors of the Federal Reserve System for corresponding classes of 

employees. 


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1Fiscal Year 2013 Financial Report of the Consumer Financial Protection Bureau (Dec. 11, 

2013) http://files.consumerfinance.gov/f/201312lcfpblreportlfinancial-report.pdf. 2 Richard Pollock, ‘‘Fat paychecks for CFPB officials, hundreds paid more than Fed Chairman, 

congressmen, Supreme Court justices,’’ Washington Examiner (July 18, 2013), available at 

http://washingtonexaminer.com/fat-paychecks-for-cfpb-officials-hundreds-paid-more-than-fedchairman-congressmen-supreme-court-justices/article/2533189. 

As of September 30, 2013, the CFPB had 1,335 employees and 

spent $190.2 million on employee salaries and benefits, according 

to the Fiscal Year 2013 Financial Report of the Consumer Financial Protection Bureau.1

Based on the foregoing numbers and report, the CFPB pays its 

employees an average of $142,000 per employee, or 3.3 times the 

mean per capita personal income in the United States ($43,000). 

According to a July 2013 article in the Washington Examiner: 

‘‘Six-figure salaries go to 741 employees . . . 

Fifty-six CFPB officers earn more than all presidential cabinet 

secretaries who earn $199,500. 

There are 173 agency staff who earn more than all elected Members of Congress and 209 employees who earn more than all 50 

U.S. governors. . . . 

Fourteen agency staffers are paid more than Vice President 

Biden who earns $227,000. 

Nineteen CPFB staffers earn more than Speaker of the House 

John Boehner, who is third in line for succession to the presidency 

and is paid $223,500. 

Thirty-seven CFPB employees get more than eight Supreme 

Court justices, who are paid $213,500. Nineteen CFPB staffers 

make more than Chief Justice John Roberts who gets $223,500. 

Top White House salaries are capped at $172,200, but 181 employees are paid more than the president’s chief of staff, senior 

counsel and press secretary.’’ 2

H.R. 2385 curbs these excessive salaries by requiring CFPB to 

follow the salary schedule used by most agencies in the Federal 

government. 

HEARINGS

The Committee on Financial Services’ Subcommittee on Financial Institutions and Consumer Credit held a hearing on H.R. 2385 

on October 29, 2013. The Subcommittee on Oversight and Investigations held a hearing on the CFPB’s budget generally on June 

18, 2013. 

COMMITTEE CONSIDERATION

The Committee on Financial Services met in open session on November 20, 2013, and ordered H.R. 2385 to be reported favorably 

to the House without amendment by a recorded vote of 31 yeas to 

23 nays (recorded vote no. FC–41), a quorum being present. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. 

1. A motion by Chairman Hensarling to report the bill (H.R. 

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ommendation was agreed to by a record vote of 31 yeas to 23 nays 

(recorded vote no. FC–41). 

RECORD VOTE NO. FC–41 

Representative Yea Nay Present Representative Yea Nay Present 

Mr. Hensarling ...................... X ........... ............. Ms. Waters ........................... ........... X .............

Mr. Bachus ........................... X ........... ............. Mrs. Maloney (NY) ................ ........... X .............

Mr. King (NY) ........................ X ........... ............. Ms. Vela ́zquez ....................... ........... X .............

Mr. Royce .............................. X ........... ............. Mr. Watt ............................... ........... X .............

Mr. Lucas .............................. X ........... ............. Mr. Sherman ......................... ........... X .............

Mr. Gary G. Miller (CA) ......... X ........... ............. Mr. Meeks ............................. ........... X .............

Mrs. Capito ........................... X ........... ............. Mr. Capuano ......................... ........... X .............

Mr. Garrett ............................ X ........... ............. Mr. Hinojosa ......................... ........... X .............

Mr. Neugebauer .................... X ........... ............. Mr. Clay ................................ ........... ........... .............

Mr. McHenry .......................... X ........... ............. Mrs. McCarthy (NY) .............. ........... ........... .............

Mr. Campbell ........................ ........... ........... ............. Mr. Lynch .............................. ........... X .............

Mrs. Bachmann .................... X ........... ............. Mr. David Scott (GA) ............ ........... X .............

Mr. McCarthy (CA) ................ X ........... ............. Mr. Al Green (TX) ................. ........... X .............

Mr. Pearce ............................ X ........... ............. Mr. Cleaver ........................... ........... X .............

Mr. Posey .............................. ........... ........... ............. Ms. Moore ............................. ........... X .............

Mr. Fitzpatrick ...................... X ........... ............. Mr. Ellison ............................ ........... X .............

Mr. Westmoreland ................. X ........... ............. Mr. Perlmutter ...................... ........... ........... .............

Mr. Luetkemeyer ................... X ........... ............. Mr. Himes ............................. ........... X .............

Mr. Huizenga (MI) ................. X ........... ............. Mr. Peters (MI) ..................... ........... X .............

Mr. Duffy ............................... X ........... ............. Mr. Carney ............................ ........... X .............

Mr. Hurt ................................ X ........... ............. Ms. Sewell (AL) .................... ........... X .............

Mr. Grimm ............................ X ........... ............. Mr. Foster ............................. ........... X .............

Mr. Stivers ............................ X ........... ............. Mr. Kildee ............................. ........... ........... .............

Mr. Fincher ........................... X ........... ............. Mr. Murphy (FL) .................... ........... X .............

Mr. Stutzman ........................ X ........... ............. Mr. Delaney .......................... ........... X .............

Mr. Mulvaney ........................ X ........... ............. Ms. Sinema .......................... ........... X .............

Mr. Hultgren ......................... X ........... ............. Mrs. Beatty ........................... ........... X .............

Mr. Ross ............................... X ........... ............. Mr. Heck (WA) ...................... ........... X .............

Mr. Pittenger ......................... X ........... .............

Mrs. Wagner ......................... X ........... .............

Mr. Barr ................................ X ........... .............

Mr. Cotton ............................. X ........... .............

Mr. Rothfus ........................... X ........... .............

COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee has held hearings and made 

findings that are reflected in this report. 

PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House 

of Representatives, the Committee states that H.R. 2385 requires 

the CFPB to pay its employees according to the General Schedule. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee adopts as its own the estimate of new budget authority, entitlement authority, or tax expenditures or revenues contained in the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 


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COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATES

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, February 7, 2014. 

Hon. JEB HENSARLING, 

Chairman, Committee on Financial Services, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 2385, the CFPB Pay Fairness Act of 2013. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Susan Willie. 

Sincerely, 

DOUGLAS W. ELMENDORF. 

Enclosure. 

H.R. 2385—CFPB Pay Fairness Act of 2013 

Summary: H.R. 2385 would set basic compensation rates for employees of the Bureau of Consumer Financial Protection (CFPB) according to the General Schedule (GS) for federal employees. Under 

current law, pay rates at the CFPB are comparable to rates paid 

to employees of the Federal Reserve System in corresponding job 

classes. 

CBO estimates that enacting H.R. 2385 would reduce direct 

spending by $280 million over the 2014–2024 period; therefore, 

pay-as-you-go procedures apply. CBO estimates that enacting H.R. 

2385 would not affect revenues, and implementing the bill would 

not affect spending subject to appropriation. 

H.R. 2385 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 2385 is shown in the following table. The costs 

of this legislation fall within budget function 370 (commerce and 

housing credit). 

By fiscal year, in millions of dollars— 

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014– 

2019 

2014– 

2024 

CHANGES IN DIRECT SPENDING 

Estimated Budget 

Authority ........... 0 ¥25 ¥26 ¥27 ¥27 ¥28 ¥29 ¥30 ¥30 ¥31 ¥32 ¥133 ¥285 

Estimated Outlays 0 ¥21 ¥26 ¥27 ¥27 ¥28 ¥29 ¥30 ¥30 ¥31 ¥32 ¥130 ¥280 

Note: Components may not sum to totals because of rounding. 


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Basis of estimate: For this estimate, CBO assumes that the bill 

will be enacted near the middle of fiscal year 2014, that its provisions will become effective at the start of fiscal year 2015, and that 

spending will follow historical patterns for the CFPB. The CFPB is 

permanently authorized to spend amounts transferred from the 

Federal Reserve; because that activity is not subject to appropriation, CFPB expenditures are recorded in the budget as direct 

spending. CBO estimates that enacting the provisions of H.R. 2385 

would reduce direct spending by installing a new salary schedule 

at the CFPB with lower rates at every pay grade. 

When the CFPB was established in 2010, employee compensation 

rates were set based on the salary structure then in place at the 

Federal Reserve System for corresponding classes of employees. 

The CFPB compensation system is made up of 17 pay bands that 

can be compared with the General Schedule. At the start of fiscal 

year 2014, the bureau employed about 1,375 individuals at salaries 

ranging from an average of about $31,000 in the lowest pay band 

to an average of almost $250,000 in the highest pay band; the average annual salary for all bureau employees was approximately 

$116,000. For 2014, average GS salaries range from about $25,000 

in the lowest pay band to about $143,000 per year in the highest 

pay band. 

For this estimate, CBO assumes that the bureau would make the 

necessary changes in the pay structure to ensure that each employee is paid at the appropriate GS rate for the work that employee performs. Without detailed information about the distribution of salaries within each pay band, we compared the average 

salary in each pay band of the bureau with the average salary for 

the comparable GS pay band to determine the average difference 

in annual salary at each level. That calculation shows that there 

is about a 13 percent difference between the salaries under the two 

compensation systems. 

Based on information provided in annual budget reports of the 

CFPB, CBO estimates that about 33 percent of the bureau’s total 

obligations represent employee compensation, or almost $200 million per year, on average, over the 2014–2024 period. 

CBO estimates that enacting H.R. 2385 would reduce direct 

spending by about $30 million per year, or $280 million over the 

2014–2024 period, reflecting lower salary rates under the General 

Schedule as well as lower costs for employee retirement benefits 

that are based on salary levels. Savings in future years would increase as total employee compensation costs for the bureau are expected to grow. 

Those savings could be lower depending on, for example, how employees respond to the pay rate differences, whether the agency 

changes the amount of work performed by employees and private 

contractors, or whether the agency increases other sources of compensation such as bonuses. CBO has no information indicating 

whether those or similar actions would be taken by the bureau, 

and therefore has no basis for determining the magnitude of such 

effects. We expect that implementing the new pay structure would 

take several months; therefore, savings would not start until 2015. 

Pay-As-You-Go Considerations: The Statutory Pay-As-You-Go Act 

of 2010 establishes budget-reporting and enforcement procedures 

for legislation affecting direct spending or revenues. The net 


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changes in outlays that are subject to those pay-as-you-go procedures are shown in the following table. 

CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 2385, AS ORDERED REPORTED BY THE 

HOUSE COMMITTEE ON FINANCIAL SERVICES ON NOVEMBER 21, 2013 

By fiscal year, in millions of dollars— 

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2014– 

2019 

2014– 

2024 

NET DECREASE IN THE DEFICIT 

Statutory Pay-AsYou-Go Impact 0 ¥21 ¥26 ¥27 ¥27 ¥28 ¥29 ¥30 ¥30 ¥31 ¥32 ¥130 ¥280 

Note: Components may not sum to totals because of rounding. 

Intergovernmental and private-sector impact: H.R. 2385 contains 

no intergovernmental or private-sector mandates as defined 

UMRA. 

Estimate prepared by: Federal costs: Susan Willie; Impact on 

state, local, and tribal governments: Melissa Merrell; Impact on the 

private sector: Paige Piper/Bach. 

Estimate approved by: Theresa Gullo, Deputy Assistant Director 

for Budget Analysis. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates reform Act. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of the section 102(b)(3) of the 

Congressional Accountability Act. 

EARMARK IDENTIFICATION

H.R. 2385 does not contain any congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9 of rule 

XXI. 

DUPLICATION OF FEDERAL PROGRAMS

Pursuant to section 3(j) of H. Res. 5, 113th Cong. (2013), the 

Committee states that no provision of H.R. 2385 establishes or reauthorizes a program of the Federal Government known to be duplicative of another Federal program, a program that was included 

in any report from the Government Accountability Office to Congress pursuant to section 21 of Public Law 111–139, or a program 

related to a program identified in the most recent Catalog of Federal Domestic Assistance. 


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DISCLOSURE OF DIRECTED RULEMAKING

Pursuant to section 3(k) of H. Res. 5, 113th Cong. (2013), the 

Committee states that H.R. 2385 does not direct any rulemaking. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

This section cites H.R. 2385 as the ‘‘CFPB Pay Fairness Act of 

2013.’’ 

Section 2. Rate of pay for employees of the Bureau of Consumer Financial Protection 

This section requires the CFPB to pay its employees according to 

the General Schedule set forth in section 5332 of title 5, United 

States Code. The section states that the pay rate change shall 

apply to service by an employee of the CFPB following the 90-day 

period after enactment. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

DODD-FRANK WALL STREET REFORM AND CONSUMER 

PROTECTION ACT 

* * * * * * * 

TITLE X—BUREAU OF CONSUMER 

FINANCIAL PROTECTION 

* * * * * * * 

Subtitle A—Bureau of Consumer Financial 

Protection 

* * * * * * * 

SEC. 1013. ADMINISTRATION. 

(a) PERSONNEL.— 

(1) * * * 

ø(2) COMPENSATION.—Notwithstanding any otherwise applicable provision of title 5, United States Code, concerning compensation, including the provisions of chapter 51 and chapter 

53, the following provisions shall apply with respect to employees of the Bureau: 

ø(A) The rates of basic pay for all employees of the Bureau may be set and adjusted by the Director. 

ø(B) The Director shall at all times provide compensation (including benefits) to each class of employees that, at 

a minimum, are comparable to the compensation and benVerDate Mar 15 2010 03:42 Feb 12, 2014 Jkt 039006 PO 00000 Frm 00007 Fmt 6659 Sfmt 6602 E:\HR\OC\HR349P1.XXX HR349P1

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efits then being provided by the Board of Governors for the 

corresponding class of employees. 

ø(C) All such employees shall be compensated (including 

benefits) on terms and conditions that are consistent with 

the terms and conditions set forth in section 11(l) of the 

Federal Reserve Act (12 U.S.C. 248(l)).¿ 

(2) COMPENSATION.—The rates of basic pay for all employees 

of the Bureau shall be set and adjusted by the Director in accordance with the General Schedule set forth in section 5332 of 

title 5, United States Code. 

* * * * * * * 


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WAIVER OF CONSIDERATION BY THE COMMITTEE ON OVERSIGHT AND

GOVERNMENT REFORM


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(11) 

MINORITY VIEWS 

By tying compensation for employees of the Consumer Financial 

Protection Bureau (CFPB or Bureau) to the General Schedule for 

federal employees and eliminating the requirement for the Bureau 

to provide employees with benefits and compensation that are comparable to the corresponding class of Federal Reserve employees, 

the bill undermines the Bureau’s ability to hire and retain qualified 

staff who may otherwise seek employment at another financial regulator or within the private sector. We note that all other financial 

regulators, including the Farm Credit Administration (FCA), Federal Housing Finance Agency (FHFA), Federal Deposit Insurance 

Corporation (FDIC), Federal Reserve (FRB), Commodity Futures 

Trading Commission (CFTC), Securities and Exchange Commission 

(SEC), National Credit Union Administration (NCUA) and the Office of the Comptroller of the Currency (OCC), are all able to offer 

more competitive compensation packages than those provided 

under the General Schedule. 

Consumer protection is a critical element of financial regulation, 

and we believe the CFPB should have the same flexibility to set 

employee compensation and benefits as other financial regulators. 

As a matter of fact, the CFPB is required under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) to offer 

compensation that is comparable to and consistent with other financial regulators, which would be impossible under the General 

Schedule. 

In addition to competing with other federal agencies, the Bureau 

must compete for staff with the financial services industry, which 

is willing to pay a premium for professionals with the expertise and 

skills necessary to perform complicated regulatory analysis. Reducing the Bureau’s ability to compensate staff appropriately would 

make it harder for the CFPB to attract and retain the qualified, 

experienced staff that is needed to ensure the use of CFPB’s supervisory, enforcement and rulemaking authority is balanced and appropriate. 

MAXINE WATERS. KEITH ELLISON. DAVID SCOTT. STEPHEN F. LYNCH. MICHAEL E. CAPUANO. KYRSTEN SINEMA. CAROLYN B. MALONEY. BILL FOSTER. JOYCE BEATTY. AL GREEN. 

DANIEL KILDEE. 

DENNY HECK. 

JAMES A. HIMES. 


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JOHN CARNEY. GREGORY W. MEEKS. GWEN MOORE. TERRI SEWELL. WM. LACY CLAY. PATRICK MURPHY. ED PERLMUTTER. RUBE ́ N HINOJOSA. BRAD SHERMAN. EMANUEL CLEAVER. 

Æ 


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