SEC. 4. MERIT SYSTEMS PROTECTION BOARD ADMINISTRA-
TIVE JUDGES.
(a) MODIFIED PAY SYSTEM FOR ADMINISTRATIVE
JUDGES.—
(1) IN GENERAL.—Subchapter VII of chapter
53 of title 5, United States Code, is amended by in-
serting after section 5372b the following:
‘‘§ 5372c. Administrative judges of the Merit Systems
Protection Board
‘‘(a) DEFINITIONS.—For purposes of this section—
‘‘(1) the term ‘Board’ means the Merit Systems
Protection Board;
‘‘(2) the term ‘administrative judge’ means an
employee of the Board who is authorized by the
Board to hold a hearing or to decide a case without
a hearing, but does not include—
‘‘(A) an administrative law judge ap-
pointed under section 3105;
‘‘(B) a member of the Board under section
1201; or
‘‘(C) an individual appointed on other than
a permanent basis;
‘‘(3) the term ‘Chairman’ means the Chairman
of the Board (as described in section 1203(a)); and
‘‘(4) the terms ‘pay locality’ and ‘comparability
payment’ have the meanings given them by section
5302.
‘‘(b) 
PAY
SCHEDULE
FOR
ADMINISTRATIVE
JUDGES.—
‘‘(1) IN GENERAL.—There shall be 4 rates of
basic pay (designated as AJ–1, 2, 3, and 4, respec-
tively) for administrative judges, and each adminis-
trative judge shall be paid at 1 of those rates in ac-
cordance with the provisions of this section.
‘‘(2) RATES.—
‘‘(A) IN GENERAL.—The 4 rates of basic
pay referred to in paragraph (1) shall be as fol-
lows:
The rate is equal to the
‘‘For:
following percentage of the
rate described in subparagraph (B):
AJ–1 .....................................................................................
70.
AJ–2 .....................................................................................
80.
AJ–3 .....................................................................................
90.
AJ–4 .....................................................................................
92.
‘‘(B) RATE
DESCRIBED.—The rate de-
scribed in this subparagraph is the rate of basic
pay (including any comparability payment) pay-
able to a member of the Senior Executive Serv-
ice who—
‘‘(i) is being paid at the second high-
est rate of basic pay established under sec-
tion 5382; and
‘‘(ii) holds a position, in or under the
Board, within the pay locality of the ad-
ministrative judge involved.
‘‘(c) INITIAL APPOINTMENT AND ADVANCEMENT.—
‘‘(1) INITIAL APPOINTMENT.—A new appoint-
ment to an administrative judge position shall be
made at the AJ–1 rate. However, under regulations
prescribed by the Chairman which provide for such
considerations as the existing pay or unusually high
or unique qualifications of an individual, or a special
need of the Board for an individual’s services, the
Chairman may (instead of the rate that would other-
wise apply under the preceding sentence) fix that in-
dividual’s pay at such higher rate (under subsection
(b)) as the Chairman considers appropriate.
‘‘(2) ADVANCEMENT.—An administrative judge
who has not reached the highest rate under sub-
section (b) shall be advanced in pay successively to
the next higher rate following the completion of—
‘‘(A) 104 weeks of service at the AJ–1
rate,
‘‘(B) 104 weeks of service at the AJ–2
rate, and
‘‘(C) 52 weeks of service at the AJ–3 rate,
subject to the condition that the work of the judge
exceeds the fully successful level throughout the pe-
riod involved (as determined based on the judge’s
performance appraisals of record over such period).
‘‘(3) REVIEW BOARD.—If paragraph (2) cannot
be applied, due to the adoption of a pass-fail stand-
ard or any other modification in a performance ap-
praisal system, advancement to the next higher level
shall instead occur following—
‘‘(A) completion of the requisite number of
weeks under subparagraph (A), (B), or (C) of
paragraph (2) (as appropriate), subject to the
condition that the work of the judge is of an ac-
ceptable level of competence throughout the pe-
riod involved (as determined based on the
judge’s performance appraisals of record over
such period); and
‘‘(B) approval of such advancement by a
review board (appointed by the Chairman from
among senior employees of the Board), in ac-
cordance with such regulations as the Chairman
shall prescribe consistent with the purposes of
this paragraph.
‘‘(d) REGULATIONS.—Any regulations necessary to
carry out this section shall be prescribed by the Chair-
man.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 53 of title 5, United States Code,
is amended by inserting after the item relating to
section 5372b the following:
‘‘5372c. Administrative judges of the Merit Systems Protection Board.’’.
(3) EFFECTIVE DATE.—Except as provided in a
succeeding provision of this section, the amendments
made by this subsection shall apply only in the case
of an individual first appointed (as an administrative
judge) on or after the first day of the first pay pe-
riod of the first calendar year beginning at least 3
months after the date of the enactment of this Act.
(b) PROVISIONS
RELATING
TO
ADMINISTRATIVE
JUDGES FIRST APPOINTED BEFORE EFFECTIVE DATE.—
(1) IN GENERAL.—An administrative judge who
is serving on the effective date described in sub-
section (a)(3) (other than a judge described in sub-
section (a)(3)) shall remain subject to the pay provi-
sions that (but for this section) would otherwise
apply, unless and until converted to the pay system
established by section 5372c of title 5, United States
Code (as added by subsection (a)) in accordance
with the following: