I 

114TH CONGRESS 

1ST SESSION H. R. 2243 

To suspend the current compensation packages for the senior executives 

of Fannie Mae and Freddie Mac and establish compensation for such 

positions in accordance with rates of pay for senior employees in the 

Executive Branch of the Federal Government, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 8, 2015 

Mr. ROYCE (for himself and Mr. POLIQUIN) introduced the following bill; 

which was referred to the Committee on Financial Services, and in addition to the Committee on Oversight and Government Reform, for a period 

to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

A BILL 

To suspend the current compensation packages for the senior 

executives of Fannie Mae and Freddie Mac and establish 

compensation for such positions in accordance with rates 

of pay for senior employees in the Executive Branch 

of the Federal Government, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Equity in Government 

5 Compensation Act of 2015’’. 


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1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) DIRECTOR.—The term ‘‘Director’’ means 

4 the Director of the Federal Housing Finance Agen5 cy. 

6 (2) EMPLOYEE.—The term ‘‘employee’’ means 

7 an employee of an enterprise, except that such term 

8 does not include any employee who would be defined 

9 as a prevailing rate employee (as defined in section 

10 5342(2) of title 5, United States Code) if such em11 ployee were employed by an agency (as defined in 

12 paragraph (1) of such section). 

13 (3) ENTERPRISE.—The term ‘‘enterprise’’ 

14 means— 

15 (A) the Federal National Mortgage Asso16 ciation and any affiliate thereof; and 

17 (B) the Federal Home Loan Mortgage 

18 Corporation and any affiliate thereof. 

19 (4) EXECUTIVE OFFICER.—The term ‘‘executive 

20 officer’’ has the same meaning as is given such term 

21 in section 1303(12) of the Federal Housing Enter22 prises Financial Safety and Soundness Act of 1992 

23 (12 U.S.C. 4502(12)). 

24 SEC. 3. REASONABLE PAY FOR EXECUTIVE OFFICERS. 

25 (a) SUSPENSION OF CURRENT COMPENSATION

26 PACKAGES.—The Director shall suspend the compensaVerDate Sep 11 2014 23:00 May 13, 2015 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2243.IH H2243

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1 tion packages approved for 2015 for the executive officers 

2 of an enterprise and, in lieu of such packages, subject to 

3 the limitation under subsection (c), establish a compensa4 tion system for the executive officers of such enterprise 

5 in accordance with the schedules of compensation and ben6 efits established and adjusted pursuant to section 1206 

7 of the Financial Institutions Reform, Recovery, and En8 forcement Act of 1989 (12 U.S.C. 1833b). 

9 (b) ADDITIONAL REQUIREMENT.—An executive offi10 cer of an enterprise shall be subject to section 111 of the 

11 Emergency Economic Stabilization Act of 2008 (12 

12 U.S.C. 5221), which relates to executive compensation and 

13 corporate governance. 

14 (c) LIMITATION ON COMPENSATION.—An executive 

15 officer of an enterprise whose compensation package is 

16 suspended under subsection (a) shall not be compensated 

17 more than the highest compensated employee of the Fed18 eral Housing Finance Agency. 

19 SEC. 4. COMPENSATION RATE OF EMPLOYEES OF FANNIE 

20 MAE AND FREDDIE MAC. 

21 (a) IN GENERAL.—During any period that an enter22 prise is federally chartered under the Federal National 

23 Mortgage Association Charter Act (12 U.S.C. 1716 et 

24 seq.) or the Federal Home Loan Mortgage Corporation 

25 Act (12 U.S.C. 1451 et seq.), the compensation of the poVerDate Sep 11 2014 23:00 May 13, 2015 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2243.IH H2243

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1 sitions held by employees shall be in accordance with this 

2 section. 

3 (b) CONVERSION OF COMPENSATION RATE FOR CUR4 RENT EMPLOYEES.— 

5 (1) IN GENERAL.—Except for as provided in 

6 section 3, effective for pay periods beginning after 

7 the date of the enactment of this Act, the Director 

8 shall fix the rate of basic compensation of positions 

9 held by employees performing services for an enter10 prise as of the date of the enactment of this Act in 

11 accordance with the General Schedule set forth in 

12 section 5332 of title 5, United States Code. In fixing 

13 such rate— 

14 (A) if the employee is receiving a rate of 

15 basic compensation that is less than the min16 imum rate of basic compensation of the appro17 priate grade of the General Schedule in which 

18 his or her position is placed, such employee’s 

19 rate of basic compensation shall be increased to 

20 such minimum rate; 

21 (B) if the employee is receiving a rate of 

22 basic compensation that is equal to a rate of 

23 basic compensation of the appropriate grade of 

24 the General Schedule in which his or her posi25 tion is placed, such employee’s rate of basic 


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1 compensation shall be equal to that rate of 

2 basic compensation of the appropriate grade of 

3 the General Schedule; 

4 (C) if the employee is receiving a rate of 

5 basic compensation that is between 2 rates of 

6 basic compensation of the appropriate grade of 

7 the General Schedule in which his or her posi8 tion is placed, such employee’s rate of basic 

9 compensation shall be at the higher of those 2 

10 rates under the General Schedule; and 

11 (D) if the employee is receiving a rate of 

12 basic compensation that is in excess of the max13 imum rate of basic compensation of the appro14 priate grade of the General Schedule in which 

15 his or her position is placed, such employee’s 

16 rate of basic compensation shall be reduced to 

17 such maximum rate. 

18 (2) NOT CONSIDERED TRANSFERS OR PRO19 MOTIONS.—The conversion of positions and employ20 ees to the appropriate grades of the General Sched21 ule and the initial adjustment of rates of basic com22 pensation of those positions and employees provided 

23 for by this subsection, shall not be considered to be 

24 transfers or promotions within the meaning of secVerDate Sep 11 2014 23:00 May 13, 2015 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2243.IH H2243

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1 tion 5334(b) of title 5, United States Code, and the 

2 regulations issued thereunder. 

3 (3) CREDIT FOR INCREASE IN COMPENSATION

4 BEFORE ADJUSTMENT.—Each employee performing 

5 services for an enterprise on the date of the enact6 ment of this Act whose position is converted under 

7 this subsection to the General Schedule and who 

8 prior to the initial adjustment of his or her rate of 

9 basic compensation under paragraph (1) has earned, 

10 but has not been credited with, an increase in that 

11 rate, shall be granted credit for such increase before 

12 his or her rate of basic compensation is initially ad13 justed under such paragraph. 

14 (4) SERVICE PERFORMED SINCE LAST COM15 PENSATION INCREASE.—Each employee performing 

16 services for an enterprise on the date of the enact17 ment of this Act whose position is converted under 

18 this subsection to the General Schedule shall be 

19 granted credit, for purposes of his or her first step 

20 increase under the General Schedule, for all satisfac21 tory service performed since his or her last increase 

22 in compensation prior to the initial adjustment of 

23 his or her rate of basic compensation under para24 graph (1). 


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1 (5) COMPENSATION INCREASE UNDER THIS

2 SECTION.—An increase in the rate of basic com3 pensation by reason of the enactment of paragraph 

4 (1) shall not be considered to be an equivalent in5 crease with respect to step increases for employees 

6 whose positions are converted to the General Sched7 ule under authority of this subsection. 

8 (c) NEW EMPLOYEES.—Except for as provided in 

9 section 3, the grade and rate of basic pay of any individual 

10 beginning employment with an enterprise after the date 

11 of enactment of this Act shall be fixed in accordance with 

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

13 United States Code. 

14 SEC. 5. FANNIE AND FREDDIE EMPLOYEES NOT FEDERAL 

15 EMPLOYEES. 

16 Any executive officer or employee affected by any pro17 vision under sections 3 and 4, respectively, shall not be 

18 considered a Federal employee. 

Æ 


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