oEPA
United States Administration And October 1991
Environmental Protection Resources Management
Agency (PM-224)
Pay Flexibilities Guide
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Acknowledgement
Our thanks and appreciation go to
the people who have contributed to imple-
menting the Federal Employees Pay Com-
parability Act of 1990. In the spirit of Total
Quality Management, several Agency-wide
work groups assisted us in developing an
integrated, EPA-wide approach to using
these new pay flexibilities. These work
groups included representatives from the
following organizations:
Office of the Administrator;
Office of General Counsel;
Office of Inspector General;
Office of the Comptroller;
Office of Research and Development;
Office of Policy, Planning and Evaluation;
Office of Solid Waste and Emergency
Response;
Office of Water;
Office of Administration and Resources
Management;
Human Resources Officers and staff.
Hector Suarez, Di(ector, Policy and
search Division
te-
Kenneth F. Dawsey, Dip^ctor, Office of
Human Resources Management
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HUMAN RESOURCES MANAGEMENT
PRODUCTS/SERVICES QUALITY ASSESSMENT
The Office of Human Resources Management, through publications such as this Pay Flexibilhties
Guide, is working to meet your needs. We would like to know whether our pay reform efforts and
tools such as this guide are “bitting the mark” to make your human resources management job
easier. We also would like your views on other products or services we could develop or improve.
Please respond to each item in regard to your personnel management functions as a supervisor.
Section I. Comments on the Pay Flexibilities Guide
This section includes statements about the Pay Flexibilities Guide. Please indicate the extent to
which you agree with each statement.
Strongly Agree Disagree Strongly
Agree Disagree
(1) The information in the guide is useful to me LI LI LI LI
(2) The information is presented at the right level of detail LI LI LI LI
(3) The information is presented in a clear, understandable manner . . . Li LI LI LI
(4) Other comments or suggestions
Section II. Assessment of Key Programs
This section lists a number of initiatives for improving Human Resources Management in EPA.
Please help us prioritize these projects. The response options range from “Very Important” to “Not
Needed.”
Recruitment
(5) Develop new recruiting tools including general Very Somewhat Little Not
brochures, occupation-specific brochures such as Important Important Importance Needed
“Careers In Chemistry”, and a new recruitment display. . . LI LI LI LI
(6) Provide recruitment training workshops LI U
(7) Develop a college relations program focusing on
institutions with sizeahie numbers of minority students. . . LI LI LI U
(8) Implement a national advertising campaign to attract
minorities, women, and the disabled U U U
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Merit Promotion
Very Somewhat Little Not I
Important Important Importance Needed 1
(9) Minimize paperwork U U U U I
(10) Reduce the number of interviews required U U U U
(11) Establish a streamlined referral process as an alternative I
to merit prOmotion U U U I
(12) Support the development of tailored Merit Promotion
Plans for each AAship and Region 0 U 0 0
Performance Management
Very Somewhat Little Not I
Important Important Importance Neededi
(j3)1 Eliminate numerical ratings 0 0 0 I
(14) Provide generic standards for managerial effectiveness in
perfrwmance agreements for supervisors, managers, and
SESmembers 0 0 0 0
(15) Eliminate the 2% minimum performance award for
outstanding ratings U 0 0 0
(16) Provide performance management training programs for
all supervisors and managers U U
Seewon III. Future Initiatives
We have listed a number of potential new programs and projects. These are only a sampling of I
innovations in Human Resources Management that could be introduced. Please indicate the
importance of each to your organization.
(17) Performance Management Demonstration Projects (Test Very Somewhat Little Not I
radically different performance appraisal and recognition Important Important Importance Needed
processes that wil suit EPA’s organizational culture.) . . . U 0 0 0 I
(1 8) Pay Band Demonstration Projects (Combine current pay
grades into fewer, broader pay hands; give managers
more discretion in setting their employees’ pay levels.) . . 0 0 0 0
(19) Clerical Workforce Quality Improvement (Undertake
initiatives to improve performance of the clerical support
staff, such as intensified training.) 0 U
(20) Manage to Payroll” Demonstration Projects (Give
managers classification authority commensurate with
their bt dget authority.) 0 U 0 0 I
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(21) Self-managed Work Teams Demonstration Projects Very Somewhat Little Not
(Give teams of professional/technical employees most Important Important Importance Needed
functions now performed by first-level supervisors.) . . . . D D U U
(22) Phased Retirement Program (Establish options such as
part-time employment for employees nearing retirement
to encourage them to stay at EPA for a longer period.) . . U U U U
(23) EPA Pay Manual and Managers’ Pay Handbook
(Prepare two publications, one updating all pay
directives for technical people handling pay, the other a
user-friendly, quick-and-dirty handbook so managers
will know what to consider.) U U U
(24) Hiring Handbook (Prepare a user-friendly guide for
managers about the hiring process, complete with
explanations of the the various options for filling jobs,
sample completed forms, and a section explaining what
is required to qualify for each occupation.) U U U U
(25) Other Initiatives (Please suggest other innovative projects or programs that might help you to recruit and
retain key employees or make your human resources management job easier.)
Section IV. Communications
This section concerns materials that have been disserninate d regarding strategic planning and
management development. Please indicate the degree to which you are familiar with each program.
Have not Received Studied
received document document
(26) EPA’s Strategic Directions Brochure (with the theme of “EPA... document
Preserving Our Future Today”) U U U
(27) EPA’s Strategic Plan (also with the theme of “EPA.. Preserving Our
Future Today”) U U
(28) EPA’s Management Development Policy U U U
Section V. Respondent Data
This section will help us to compare input from persons at different levels, specialties, and
organizations. Please select the one most appropriate response for each item below.
(29) I am a supervisor at the UFirst-level U Second-level UThird or Higher-ieve
(30) Specialty . . . . Uscientist/eng Uadmin!resources mgmt Dinfo mgmt Uhuman resources Ulegat Dother
(31) Location UHeadguarters DRegional Office U Laboratory UOther
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Thank you for taking the time to complete this survey. The
information 1 you provide will help us to develop more
responsive products and services. Our focus is on supporting
you in carrying out your human resources management
responsibilities. I
To make your job as a manager or supervisor easier, we plan I
to cOnsult with you periodically to call attention to needed
improvements in our products and services, and to identify
areas that could benefit from innovative approaches.
To return this s,lrvey, please fold and staple this document so I
tjiat the pre-printed return address is outside.
I )
,r)
H:
(D
Office of Human Resources Management
Policy and Research Division
Research and Innovations Branch (PM-224)
ATTN: QAS
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FOREWORD
This Pay Flexibilities Guide includes summaries of
all major components of the Federal Employees Pay
Comparability Act of 1990 (FEPCA). The Office of
Personnel Management (OPM) has issued interim
regulations implementing most provisions of the Act,
EPA organizations have been authorized to use all the
new pay flexibilities.
This Guide is intended as a quick reference for
managers and human resources staff. It provides an
overview of new forms of compensation that managers
may wish to use to help meet their recr iitment and
retention objectives.
Final EPA policies, and procedures will be
developed and issued after OPM issues its final
implementing regulations.
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Table of Contents
Title Page
Recruitment Incentives . . . . . . . . . . . . . . . . . . . . . . 1
Recruitment and Relocation Bonuses 3
Superior Qualifications Appointments 4
Advances in Pay 5
Travel and Relocation Expenses 6
Reemployment of Retirees 7
Staffing Differentials 8
Retention Incentives . . . . . . . . . . . . . . . . . . . . . . . . . 9
Retention Allowances 11
Interim Geographic Adjustments 12
Annual Pay Adjustments 13
Local Comparability Adjustments 14
Special Salary Rates 15
Ne’ v Pay Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Critical Pay 19
Senior-Level Pay System 20
Pay System for Administrative Law Judges 21
Law Enforcement Pay System 22
Special Occupational Pay Systems 23
New Performance Management Provisions...... 2s
Time Off Incentive Awards 27
Pay for Performance System 28
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Title Page
Miscellaneous Pay Provisions..... .. .......... 29
Lifting the Biweeldy Limitation on Earnings 31
Overtime Pay under FLSA 32
Law Enforcement Overtime Pay (Criminal Investigators) 33
Other Overtime Provisions 34
Hazardous Duty Pay 35
Supervisory Differentials 36
Uniform Allowances 37
Aggregate Limitation on Pay 38
Pay Fixed by Administrative Action 39
C harts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Comparison of Major New Recruitment Incentives
Comparison of Major New Retention Incentives
New Pay Authorities --Table of Approval Levels
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Luitn nCefltiVeS
1
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2
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Recruitment and Relocation Bonuses
Highlights Status
EPA can pay a lump-sum recruitment bonus of up to 25
percent of basic pay to an employee being newly appointed to the
Federal government. The position to which the candidate is being
appointed must be hard-to-fill, and the applicant must have out-
standing qualifications. In exchange for the bonus, the new em-
ployee must agree to remain with EPA for a specific period of time
(minimum of one year).
EPA may also offer a relocation bonus to a high-quality Fed-
eral employee accepting a hard-to-fill job in a different commuting
area. The candidate must be currently employed by EPA or by
another employer in the executive, legislative, or judicial branches
of the Federal government. Like a recruitment bonus, a relocation
bonus may be any amount up to 25 percent of basic pay, and is paid
in a lump sum. The employee will complete a service agreement
specifying that the period of service must be at the new duty station
(minimum of one year).
A broad range of positions qualify for these bonuses: Executive
Schedule, SES, Senior Level, Scientific or Professional (STs),
Presidential appointees, PMRS (merit pay) and GS positions.
Approval Levels
Action
Approve Bonuses tor:
Deputy Administrator
Assistant Administrators
Regional Administrators
Additional
Executive Schedule Deputy Administrator
Presidential appointees Information
Senior Level Assistant Administrator EPA Interim Recruitment and
Scientific or Professional (ST) (OARM) Relocation Bonus Plan (6/91)
SES
OPM interim regulations
GS/GM-15& below Assistant Administrators (5 CFR 575)
Law Enforcement Officers Associate Administrators
Regional Administrators 5 USC 5753, as amended by
(May be redelegated.) FEPCA
Requirements and proce-
dures for paying these bOnUSeS
arc contained in EPA’s Interim
Recruitment and Relocation
Bonus Plan (6/91).
EPA organizations were
authorized to begin approving
bonuses in a memorandum
from the Director, Office of
Human Resources Management
(7/2/91). This memorandum
also transmitted copies of the
Interim Recruitment and Relo-
cation Bonus Plan.
The Interim Plan will be in
effect until the final plan is
issued. Development of the
final plan must await publica-
tion by OPM of final regula-
tions.
Approved By
Administrator
3
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Superior Qualifications Appointments
Status
EPA organizations were
authorized to begin making
these appointments in the Pay
Reform Guide (3/1/91).
A memorandum from the
Director, Office of Human
Resources Management (1 1/91)
transmitted copies of the In-
terim Policy on Appointments
above the Minimum.
The Interim Policy will he in
effect until EPA’s final policy
document is issued. Develop-
ment of the final policy must
await publication by OPM of
final regulations.
Additional
Information
EPA’s Interim Policy on
Appointments above the
Minimum Rate (10/91)
5 Usc 5333(a), as amended by
FEPCA
OPM interim regulations
(5 CFR 511)
HigI i1ights
Appointments above the first step of a grade, up to step 10, may
be authori ed for new employees. This includes employees receiv-
ing their first appointment to the Federal government and former
Federal employees following a break in service of at least 90 days
To be eligible for this type of appointment, a candidate must have
supenor qualifications, or EPA must have a special need for the
employee’s services This authority may be used when filling
posItions at any grade level, including Merit Pay positions, up
through G /GM-15. (Formerly, these appointments could be made
only at grade 11 and above)
If an appointing official wishes to set the candidate’s startmg
pay at a level above 20 percent over the level of pay from his/her
current employer, prior approval of OPM is required.
Approval Levels
Action Approved By
Appointments at rates not Human Resources Officers
more than 20 percent above
candidate’s current pay or
bona tide offer
Appointments over 20 per- OPM
cent above candidate’s current
pay
4
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Advances in Pay
Status
Requirements and proeedurcs
for making advances in pay arc
contained in the EPA Interim
Policy on Advances in Pay
(10/91).
EPA organizations were
authorized to begin approving
advances in pay in a memoran-
dum from the Director, Office of
Human Resources Management
(11/91). This memorandum also
transmitted advance copies of
the Interim Policy on Advances
in Pay.
The Interim Policy will he in
effect until EPA ’s final policy
document is issued. Develop-
ment of the final policy must
await publication by OPM of
final regulations.
Additional
Information
EPA lntcrim Policy on
Advances in Pay (10/91)
5 Usc 5524a, as amended by
FEPCA
OPM interim regulations
(5CFR 550)
Highlights
New Federal appointees with special financial needs ma be
given advances in pay These advances may be any amount up to
70 percent of their biweekly basic pay for two pay periods The
advance is to be paid back within 13 pay penods, through payroll
deduction
Advances will be approved according to certain criteria change
in residence change m duty station, prior unemployment, or other
instances of financial hardship
Approval Levels
Action Approved By
Advance pay Human Resources Officers or
their designees
5
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Travel and Relocation Expenses for Interviewees and New Appointees
Status
EPA offices were authorized
to begin making these payments
when Office of the Comptroller
Policy Announcement No. 9 1-10
was issued (8/13/91).
Payments may be approved
retroactive to 2/14/91.
Additional
Information
Office of the Comptroller Policy
Announcement No. 91-10
General Services Administration
(GSA) Federal Travel
Regulation (41 CFR 301-304)
OPM interim regulations
(5 CFR 572)
5 USC 5706a
Highlights
EPA may pay certain travel expenses for job applicants to attend
pre-employment interviews. The Agency may now also pay some
relocation expenses for employees newly appointed to the Federal
government. Formerly, payment of these expenses was limited to
certain shortage categories.
These payments are not employee entitlements. Payments may
be authoriz d based upon the availability of funds and the desirabil-
ity of conducting interviews for a particular job or offering a
recruiting incentive to a particular candidate.
Payments will be approved according to the requirements,
criteria, and procedures contained in Office of the Comptroller
Policy Announcement No. 9 1-10.
Approval Levels
Action Approved By
Approve payment of travel 1l avel Authorizing Official
expenses for pre-employment (See ‘fravel Delegation 1-17-A)
interviews
Approve relocation expenses ‘ifavel Authorizing Official
for new appointees (See Travel Delegation 1-17-A)
6
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Reemployment of Retirees
Highlights
Status
In special circumstances, EPA may request approval from OPM
to hire Federal civilian or military retirees/annuitants without
reducing their pay or annuities. Normally, the salary or pension of
a reemployed annuitant is reduced. EPA may request such appoint-
ments when there has been exceptional difficulty in hiring or
retaining highly-qualified employees, or when there is a rare need
to retain a particular employee with critically-needed skills. EPA
may also seek to make such appointments to temporary positions to
cope with emergencies threatening life or property.
All requests to make such appointments will be sent to the
Assistant Administrator, Office of Administration and Resources
Management (OARM) for review and transmittal to OPM.
Requests will be prepared according to the requirements and
procedures in the EPA Interim Policy on Reemployment of Retir-
ees or Annuitants without Reduction in Annuity or Pay (7/9 1).
Approval Levels
EPA organizations were
authorized to begin requesting ap-
provals of these appointments in
the Pay Reform Guide (3/1/91).
A memorandum from the
Director, OHRM (11/91) transmit-
ted the Interim Policy on Reem-
ployment of Retirees or Annui-
tants without Reduction in Annu-
ity or Pay.
The Interim Policy will be in
effect until EPA’s final policy
document is issued. Development
of the final policy must await
publication by OPM of final
regulations.
Additional
Information
EPA Interim Policy on Reemploy-
ment of Retirees or Annuitants
without Reduction in Annuity or
Pay (10/91)
5 Usc 5532, 8344, 8468, as
amended by FEPCA
OPM interim regulations
(5 CFR 550,553)
Action Approved By
Review requests to appoint AA (OARM)
retirees/annuitants
Approve_appointments OPM
7
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Staffing Differentials
HIghlights
The President may grant differentials of 5 percent of basic pay
to employees in two categories of positions: those in grades 5 or 7,
or those in two-grade-interval series. If such diffcrcntials are estab-
lished, OPM may reduce or eliminate them as other provisions of
pay reform take effect, such as local comparability adjustments.
Because OPM has not yet published any implementing regula-
tions for staffing differentials, we have no additional information.
Approval Levels
Action Approved By
Designate groups to the President
receive differentials
Status
No differentials have yet
been established. OPM is
proposing a technical amend-
ment to FEPCA to make a third
category of positions eligible:
any combination of the first
two categories now eligible.
5 Usc has not yet been
amended to include a provision
for staffing differentials.
Additional
Information
FEPCA, section 209
8
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Retention Incentives
9
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10
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Retention Allowances
Hit!hlil!hts
Status
EPA can pay an allowance of up to 25 percent of basic pay in
order to retain an employee likely to leave the Federal government
for employment in the non-Federal sector
The allowance may be approved in order to keep a highly-quali-
fied employee in a hard-to-fill position that is critical to program
accomplishment A broad range of positions qualify for the allow-
ance Executive Schedule, SES, Senior Level, Scientific or Profes-
sional (STs), Presidential appointees, PMRS (merit pay) and GS
positions The allowance is not paid in a lump sum, but as a per-
centage of basic pay added to each biweekly pay check The
allowance must be reviewed and reauthorized annually.
Requirements and procedures for paying these allowances are
contained in EPA’s Interim Retention Allowance Plan (6/9 1).
Approval Levels
EPA organizations were
authorized to begin requesting
allowances in a memorandum
from the Director, Office of
Human Resources Management
on 7/2/91. This memorandum
also transmitted copies of the
Interim Retention Allowance
Plan.
The Interim Plan will he in
effect until the final plan is
issued. Development of the
final plan must await publica-
tion by OPM of final regula-
tions.
Additional
Information
EPA Interim Retention Allow-
ance Plan (6/91)
OPM interim regulations
(5 CFR 575)
5 USC 5754, as amended by
FEPCA
Action
Approved By
Approve retention allowances for:
Deputy Administrator
Administrator
Associate Administrators
Regional Administrators
Deputy Administrator
AA (OARM)
Executive Schedule
Presidential appointees
Senior Level
Scientific or Professional (Si)
SES
GS/GM
Law Enforcement Officers
11
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Interim Geographic Adjustments
Hi h1ights Status
The President may authorize geographic adjustments of up to 8
percent in areas where there are significant pay disparities, wide-
spread recruitment and retention problems, and at least 5,000
Federal employees. This is an immediate relief measure which will
be phased out as local comparability adjustments are phased in,
beginning in 1994.
Interim geographic adjustments are to be used as part of base
pay when computing other forms of compensation, such as retire-
ment anr uities, life insurance benefits, overtime pay and hazard
pay.
Employees already receiving local special pay rates, such as
many clerical workers, are not provided the full adjustment since
their special pay rate already reflects the local cost of living. They
receive the difference between the level of the special pay rate and
the amount of the adjustment. Employees on national special pay
rates receive the full adjustment, as their special pay rate is not
based on the local cost of living.
Approval Levels
Additional
Information
Three geographic areas have
been designated to receive the
adjustment. Employees in the
New York, San Francisco, and
Los Angeles metropolitan areas
have been receiving an adjust-
ment of 8 percent since 1/91.
Several bills have been
introduced in Congress to
authorize interim geographic
adjustments in several other
high-cost areas.
Action Approved By
Pay interim geographic the President
adjustment
FPM Letter 53 1-62 (990-2)
(1/28/91)
FPM Bulletin 531-143 (990-2)
(1/30/91)
12
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Annual Pay Adjustments
Highlights Status
Beginning with the 1/92 pay adjustment, annual pay adjustments Annual adjustments based on the
will be tied to changes in the Employment Cost Index (ECI), which new ECI formula begin 1/92.
measures the cost of wages and salaries in the private sector. For
1992 and 1993, the annual adjustment will equal the percentage
change in the ECI. Beginning in 1994, the annual adjustment will
equal the ECI, minus .5 percent. This is because the overall goal of
FEPCA is to bring Federal pay to within 5 percent of pay in the
non-Federal sector. Also in 1994, local comparability increases
begin.
Because of the long lead time required by the Federal budget
planning cycle, the index used is that for the quarter ending in Sep-
tember two years before the annual increase. For example, the
index for the quarter ending 9/90 showed an increase of 4.2 percent
over the preceding year. The 1/92 adjustment will therefore in-
crease Federal employees’ pay by 4.2 percent.
The President has discretion to change the amount of the annual
adjustment. From 1992 to 1994, this discretion is limited. If the
ECI increase is below 5 percent, the President may reduce the
adjustment only in the event of war or severe economic conditions,
defined as two consecutive quarters of negative GNP growth.
If the ECI increase is above 5 percent, the President may reduce
the annual adjustment to 5 percent or more, citing a national emer-
gency or serious economic condition affecting the general welfare.
It may be reduced to a level below 5 percent in cases of war or
severe economic conditions (two consecutive quarters of negative
GNP).
Approval Levels
Additional
Action Approval Level Information
Alter amount of annual the President 5 USC 53, as amended by
adjustment, as determined FEPCA
by ECI formula
13
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Local comparability Adjustments
Highlights
Locality pay adjustments will begin in January 1994 The goal
of these pay increases is to reduce the disparity between Federal
and non-Federal pay to no more than 5 percent The pay gap is to
be gradually narrowed in successive annual locality adjustments
over a period of 9 years, from 1994 through 2003 Localities to
receive these adjustments will be selected based on surveys by the
Bureau of Labor Statistics (BLS) Areas where the pay gap is 5
percent or less will not receive an adjustment
The 1 cahty adjustments of 1994 are to reduce the pay gap in
each area by 20 percent. Thereafter, the annual locality adjust-
ments are to reduce it by 10 percent.
For 1994 comparability increases, there is a funding cap of $1.8
billion already in place. To reduce total locality pay below this
amount, the President must cite war or severe economic conditions
(two successive quarters of negative GNP).
Additional
Information
5 Usc 5304, as amended by
FEPCA
Status
The BLS has begun studies
to identify geographic areas
eligible for locality comparabil-
ity adjustments.
Approval Levels
Action Approved By
Determine amount of locality the President, based on recommen-
comparability adjustments dations of the Pay Agent
14
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Special Salary Rates
Highlights Status
Two new measures affect special salary rates: These provisions became
effective on 2/3/9!.
As in current law, special pay rates may be authorized by OPM
for occupations for which the Government has had difficulty in re-
cruitment and retention. FEPCA has added another category--
occupations for which the Government’s recruitment and retention
efforts “are likely to become” difficult. Conditions that may sup-
port special pay rates have been expanded to include: a significant
pay gap between the Federal and non-Federal sectors within an
area, location, or occupational group; the remoteness of the work
site; the undesirability of working conditions (including exposure
to toxic substances or other occupational hazards); or other appro-
priate circumstances.
FEPCA increases the amount OPM can authorize for special
pay rates by 30 percent. Before this legislation, special rates could
be no higher than the regular rate for step 10 of a grade. Now, they
can he up to 30 percent more than step 10 of a grade. In effect, this
means that special pay for step 1 of a grade could be 60 percent
higher than the regular rate for step 1 of a grade.
Regional Administrators, Assistant Administrators, and Associ-
ate Administrators may submit requests for special pay rates to the
Assistant Administrator, OARM, for transmittal to OPM.
Approval Levels
Action
Approved By
•
Determine which groups
OPM
will receive special
salary rates
Determine amount of
OPM
special salary rates
Additional
Information
OPM interim regulations
(5 CFR 530.303)
5 USC 5305,
as amended by FEPCA
15
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16
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Retention Incentives
New Pay Systems
17
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18
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Critical Pay
Hit hlights Status
The Office of Management and Budget (0MB), in consultation
with OPM, will allocate 800 positions Government-wide as Critical
Pay positions. These positions require an extremely high level of
expertise in a scientific, technical, professional, or administrative
field. They must be essential to an agency’s mission, and additional
compensation must be necessary for recruitment and retention. Pay
for Critical Pay positions in EPA may be set by the Administrator
at any level up to the rate for Executive Level I, or even higher
with written Presidential approval.
Approval Levels
Additional
Information
The Executive Resourccs
and Special Programs Division,
OHRM, has asked 0MB to
allocate a number of positions
to EPA.
Action
Approved By
Request Critical Pay
OHRM, Executive Resources
designation for EPA positions
and Special Programs Division
Allocate Critical Pay
0MB, with OPM consultation
positions to agencies
0MB Bulletin No. 9 1-09,
Critical Position Pay
Authority (3/7/91)
5 USC 5377, as amended by
FEPCA
19
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Senior - Level Pay System
Status
The Executive Resources
and Special Programs Division,
OHRM, is developing an
interim policy on EPA’s new
pay system for Senior-Level
and Scientific and Technical
(SD positions.
Additional
Information
5 Usc 5376, as amended by
FEPCA
OPM interim regulations
(5 CFR 319)
FPM Letter 534-9 (5/2/9 1)
Highlights
A new pay system for Senior-Level and Scientific and Technical
(SD positions replaces the GS-16 through GS-18 grade structure.
EPA may set pay rates for these positions in a range from 120 per-
cent of the minimum pay for GS-15 to the rate for Executive Level
IV. EPA is required o develop written procedures, methods, and
criteria for setting pay for these employees.
Approval Levels
Action Approved By
Set and adjust pay Assistant Administrator (OARM);
rates for Senior-Level has been redelegated to the Deputy
positions Assistant Administrator (OARM)
20
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Pay System for Administrative Law Judges
Highlights Status
Three levels of basic pay are established for administrative law The new pay system was
judges. These pay levels are based on various percentages of the implemented in EPA 2/91.
pay rate for Executive Level IV. The pay cap for these positions
has been raised from Executive Level V to Executive Level IV.
Approval Levels
Action Approved By
Establish basic pay levels OPM
Additional
Information
5 Usc 5372, as amended by
FEPCA
OPM interim regulations
(5 CFR 930, Subpart B)
21
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Law Enforcement Pay System
(Criminal Investigators)
High1i hts
OPM, in consultation with law enforcement agencies and
employee groups, is developing a proposal for a new, separate pay
system for law enforcement officers. This must be submitted for
Congessional consideration by 1/1/93. Until that new system is in
place, law enforcement officers’ pay will be affected by a number
of new provisions:
Q Pay for grades 3 through 10 is increased through special pay rates. For
‘grades 3 through , the increases will be phased in during a two-year period,
franz 1991 through 1992. For grades 8 through 10, the total increase will occur
in 1992.
U Locality adjustments of between 4 and 16 percent (depending on the
location) will be paid in 8 metropolitan areas: Los Angeles, New York, San
Francisco, Boston, San Diego, Washington, Chicago, and Philadelphia.
U EPA may pay up to $15,000 or 25 percent of base pay as a relocation
bonus for moving to a high-cost area.
U EPA may pay bonuses of up 105 percent of base pay for foreign language
proficiency.
U Scheduled overtime will be paid at the rate of time and one-half of OS-lO,
step 1, or the straight hourly rate of the employee, whichever is higher.
C Employees may not receive biweekly compensation exceeding 150
percent Of GS-15, step 1, or Level V of the Executive Schedule, whichever is
less. The annual pay limitation is the rate of Executive Level I.
O The mandatory retirement age is changed from 55 to 57.
Additional
Information
5 Usc 5305, Chapter 45,
subchapter Ill, 8335b, 8425(b),
5542(a), 5547, and 5541, as
amended by FEPCA
Status
These provisions were all
effective by 3/28/91.
Approval Levels
Action Approved By
Pay relocation bonuses Assistant Administrators
Pay foreign language Associate Administrators
proficiency bonus Regional Administators
(May be redelegated.)
22
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Special Occupational Pay Systems
Status
Two studies preliminary to
establishing special occupa-
tional pay systems have been
initiated by OPM. These cover
law enforcement occupations
and health care occupations.
Additional
Information
5 USC, Chapter 53,
subchapter IX.
Highlights
Special occupational pay systems may be established for groups
with exceptional needs. These will be developed and approved
only in rare situations by the President’s Pay Agent. Currently, the
Pay Agent consists of the Secretary of Labor, the Director of
0MB, and the Director of OPM.
Approval Levels
Action Approved By
Establish special occupational Pay Agent
pay systems
23
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24
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[ i tionincentiveT
LNew_Performance Management Provisions
25
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26
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Time Off Incentive Awards
Status
The Employee Participation
and Communication Division
issued a new directive on time
off incentive awards (10/91). It
will be incorporated in the EPA
Awards Manual as Chapter 9.
Use of these awards is now
authorized.
Additional
Information
All employees pamphlet, Time-
off Awards (10/91)
EPA Awards Manual, Chptr. 9
Chapter 5 USC 4502, as
amended by FEPCA
Interim OPM regulations
(5 CFR 451, Subpart C)
Highlights
Employees may be given time off as an incentive award, with no
loss of pay or charge to leave. A time off incentive award may he
given for superior accomplishments or other personal contributions
to the quality, efficiency or economy of Government operations. A
maximum of 40 hours off may be given for any single contribution,
and an employee may be given no more than 80 hours off in one
year. Time off must be used within 120 days of the award.
Approval Levels
Action
Approved By
Approve time-off award up to
Branch Chiefs and
above
one day
Approve time-off award more
Branch Chiefs and
above
than one day
27
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Pay -for-Performance System
Highlights
FEPCA establishes the policy of extending pay for performance
to the GS workforce. A pay-for-performance system for GS
employees is to be developed by 10/92, with the goal of linking an
employee’s pay to his/her level of performance. OPM, in conjunc-
tion with a Pay-for-Performance Labor-Management Committee, is
to develop legislative proposals for the new system. If successfully
enacted, the new system could be implemented by 10/93.
The Pay-for-Performance
Committee met for the first time
on 4/10/91, and is conducting
research preparatory to develop-
ing its proposals.
Status
Approval Levels
4 çtion Approved By
Establish new pay-for Congress, based upon
performance system recommendations
of Pay-for Performance
Committee
Additional
Information
FEPCA, section 111.
28
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Miscellaneous Pay Provisions
29
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30
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Lifting the Biweekly Limitation on Earnings
Highlights Status
The biweekly earnings limitation on premium pay, which is the
rate for GS-15, step 10, may be lifted for work directly related to
resolving emergencies threatening life or property. EPA has
authority to lift the biweekly limitation for employees working on
natural disaster emergencies. OPM may approve lifting the bi-
weekly cap in other types of emergencies. Even when the bi-
weekly limitation is waived, however, the annual cap of GS-15,
step 10 remains in effect.
Approval Levels
Additional
Information
The current EPA require-
ments and procedures for lifting
the biweekly earnings limitation
were effective with the issuancc
of EPA ’s Interim Policy on
Limitations on Pay on 10/91.
Action Approved By
Lift biweekly earnings limitation
in natural disasters in Headquarters
Administrator
Assistant Administrators
Associate Administrators
or their designees
Lift biweekly earnings limitation Regional Administrators
in natural disasters in field locations or their designees
Lift biweekly earnings limitation OPM
in non-natural disaster emergencies
EPA Interim Policy on Limita-
tions on Pay (10/9 1)
5 Usc 5547, as amended by
FEPCA
OPM interim regulations
(5 CFR 550.105 - 550.107)
31
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Overtime Pay under FLSA
Highlights Status
The requirement to compute overtime pay for employees covered New FLSA overtime corn-
by the Fair Labor Standards Act (FLSA) under both Title 5 and putation rules were effective on
FLSA provisions has been eliminated. Now, overtime pay for 5/4/91.
employees covered by the FLSA is computed only under the FLSA.
Also, for the purpose of calculating overtime pay under the FLSA,
hours in a paid nonwork status (such as annual leave) are now con-
sidered to be hours of work.
Approval Levels
Not applicable
Additional
Information
5 Usc 5542, 5543, 5544,
as amended by FEPCA
OPM interim regulations
(5 CFR 532, 550, and 551)
32
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Overtime Pay for Law Enforcement Officers
(Criminal Investigators)
Status
New overtime pay rate and
increased biweekly pay cap for
law enforcement officers were
effective on 11/5/90.
Additional Information
on increased overtime
pay for law enforcement
officers:
5 Usc 5542, as amended by
FEPCA
OPM interim regulations
(5 CFR 550.113(h))
Additional Information
on the law enforcement
officers’ biweekly
limitation:
EPA Interim Policy on Limita-
tions on Pay (10/91)
s usc 5547, as amended b
FEPCA
OPM interim regulations
(5 CFR 550.107)
Highlights
There is a new rule for computing overtime pay for law enforce-
ment officers (Criminal Investigators). If the employee’s rate of
basic pay exceeds the rate for GS-10, step 1, his/her overtime pay
is the greater of:
EJ one and one-half times the rate of basic pay for GS-10, step l
(including any interim geographic adjustment or locality-
based comparability payment and any special salary rate), or
13 the employee’s rate of basic pay (including any interim geo-
graphic adjustment or locality-based comparability payment
and any special salary rate)
Law enforcement officers’ premium pay is now subject to a
higher biweekly limit than that for other GS employees. These law
enforcement personnel may receive biweekly aggregate compensa-
tion equal to 150 percent of the rate for GS-15, step 1 (including
any locality-based comparability payment or special pay rate that
may be in effect), or Level V of the Executive Schedule, whichever
is less.
Approval Levels
Action
Authority to authorize
or approve overtime
Approved By
Associate Administrators
Assistant Administrators
Office Directors
Regional Administrators
Directors of Headquarters Staff
Offices
(May be redelegated.)
33
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Other Overtime Provisions
Highlights
The law has revised the method of computing overtime pay and
computing annual premium pay for regularly-scheduled standby
duty. The maximum overtime rate that may be paid (equivalent to
the rate for GS-10, step 1) now includes any applicable locality-
based comparability payment for GS-1O, step 1 and any applicable
special pay rate for the GS-10, step 1, level. The method of com-
puting compensatory time off has also been changed to include any
applicable locality payment or special pay rate for the GS-1O, step
10, level. In order to be included in computing either overtime pay
or compensatory time off, a special pay rate for GS-10 (step 1 or
10, as applicable) must appear in a published special pay rate
schedule.
Increased overtime pay/
compensatory time for employ-
ees receiving locality pay and
some employees on special pay
rates was effective on 2/14/91.
OPM is considering issuing
new special pay rate schedules
that will include a special rate
for GS-1O, step 1, to be used
for the purpose of computing
overtime. Until such new
schedules are issued, overtime
for employees on special pay
rate schedules that do not in-
clude a rate for GS-10, step 1,
will be computed using the
regular rate for GS-10, step 1.
Additional
Information
5 USC 5542(a), 5543,
5545(c)(1), as amended by
FEPCA
OPM interim regulations
(5 CFR 550.111, 550.113,
550.114, 550.141, and 550.144)
Status
Approval Levels
Not applicable
34
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Hazardous Duty Pay
Highlights Status
New regulations have eliminated the requirement that hazardous New hazardous duty pay
duty pay can only be provided for irregular or intermittent hazard- regulations were effective on
ous work. We can now pay hazardous duty pay to occupations 5/4/9 1.
performing hazardous work on a recurring basis. Generally, hazard
pay still can not be paid when the hazardous duty has been taken
into account in the classification of the position. There are now
provisions in place, however, for OPM to waive this restriction.
Regional Administrators, Assistant Adrnin istrators, and Associ-
ate Administrators may submit requests for waivers to the Assistant
Administrator, OARM, for transmittal to OPM.
Approval Levels
Action Approved By
Authorize payment of OPM
hazard pay for special
categories of positions
Additional
Information
5 Usc 5545, as amended by
FEPCA
OPM interim rc ulatw ns
(5 CFR 550)
35
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Supervisory Differentials
Status
EPA organizations were
authorized to begin approving
the differentials in a memoran-
dum from the Director, Office
of Human Resources Manage-
ment (11/91). This memoran-
dum also transmitted advance
copies of the Interim Policy on
Supervisory Differentials.
The Interim Policy will be in
effect until EPA’s final policy
document is issued. Develop-
ment of the final policy must
await publication of final
regulations by OPM.
Additional
Information
EPA Interim Policy on Supervi-
sory Differentials (10/91)
OPM interim OPM regulations
(5 CFR 531, 575)
S USC, chapter 57
Highlights
A differential may be paid to a GS employee who supervises
one or more civilian employees who are not covered by the GS pay
system, such as wage grade employees. Commissioned Corps offi-
cers of the Public Health Service are excluded, as they are not
civilian employees. the differential may be paid when, without it,
the supervisor would be paid less than one or more of the non-GS
subordinates. The differential may be up to 3 percent above the
pay of the highest paid, non -GS-civilian subordinate. Payment of
the differential is discretionary; it is not an entitlement.
4 pproval Levels
Action Approved By
Pay differential Assistant Administrators
Associate Administrators
Regional Administrators
(May be redelegated to
Division Directors level.)
16
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Uniform Allowances
Highlights Status
The maximum annual allowance for uniforms has been raised to EPA organizations were
$400. Formerly, the limit was $125. Uniformed Services person- authorized to raise the aflow-
net, or staff who are issued uniforms, are not eligible for the allow- ance in the Pay Reform Guide
ance. (3/1/91).
Approval Levels
Action Approved By
Approve raise in uniform Assistant Administrators
allowance Associate Administrators
Regional Administrators
(May be redelegated.)
Additional
Information
5 USC 5901, 5902, and 5903,
as amended by FEPCA
37
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Aggregate Limitation on Pay
Highl’ights Status
All EPA employees are subject to an aggregate limitation on
pay. This restriction primarily affects employees in positions above
thc GS-15 level, such as SES and Executive Schedule. During a
calendar year, an employee’s aggregate compensation cannot
exceed the rate for Executive Level IV. (For 1991, that limit is
$138,900). The new aggregate limitation supersedes the fiscal year
maximum that formerly limited pay for SES employees; SES
employees are now covered by the new calendar year limitation.
Both discreti nary (optional) and non-discretionary (payments to
which an employee is entitled) forms of compensation are included
in the aggregate limitation. A few types of payments are excluded
when computing aggregate compensation. Currently, these include
premium pay, overtime pay, and severance pay.
Non-discretionary compensation that was not paid during a
calendar year because of the aggregate limitation must be paid in a
lump sum at the beginning of the next calendar year. In rare cases,
discretionary payments withheld because of the limitation may also
be deferred and paid in a lump sum. Currently, non-OS employees
may not receive such deferred compensation if it is the result of a
performance-based cash award, a recruitment or relocation bonus,
or a retention allowance.
Additional
Information
Instructions for administer-
ing the aggregate limitation
were issued in the interim
Policy on Limitations on Pay
(10/91).
The Interim Policy will be in
effect until EPA’s final policy
document is issued. Develop-
ment of the final policy must
await publication of final
regulations by OPM.
Approval Levels
Not applicable.
EPA Interim Policy on Limits-
tions on Pay (10/91)
5 USC 5305, 5307, as amended
by FEPCA
OPM interim regulations
(5 CFR 530, 550)
38
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Pay Fixed by Administrative Action
Highlights Status
Some employee& pay is fixed by administrative action; that is, it This change was effective
may be set by the Administrator or his/her designee rather than by 2/14/91.
established pay schedules and pay rates. For these employees, the
maximum pay has been changed from the top rate for GS-18 to the
rate for Level IV of the Executive Schedule. For 1991, this change
raises the maximum from $97,317 to $108,300. Currently, all EPA
employees whose pay is fixed by administrative action are at the
GS-15 level and below; this provision will have no impact on them.
Approval Levels
Not applicable
Additional
Information
5 USC 5373, as amended by
FEPCA
39
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40
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[ Charts
41
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42
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Comparison of Major New Recruitment Incentives
1) Recruitment
Bonuses
2) Relocation
Bonuses (up to
25% of basic
pay)
3) Above-
Minimum Entry
Rates (superior
qualifications
appointments)
to enable EPA to fill a
position with a high
quality candidate
from outside the
Federal Government
to enable EPA to
recruit an individual
with high or unique
qualifications or for
whom the Government
has a special need
Administrator,
Deputy Admin-
istrator,
AA(OARM),
RAs, AAs,
Associate Ad-
ministrators (de-
pending on level
and location of
position). May
be redelegated.
Human Re-
source Officers
(or OPM, if the
rate sought
exceeds current
pay by more
than 20%)
GSIGM,
senior-level
scientific or
professional
(ST),SES,
law enforce-
ment officers,
Executive
Schedule,
Presidential
appointees;
others with
OPM ap-
proval
same as
cannot
exceed
maximum
rate of grade
special rates, above-
minimum entry rates,
waiver of dual com-
pensation limitations
for retireees, critical
pay authority, travel
expenses, advances in
pay
special rates, retention
allowances, waiver of
dual compensation
limits for retirees,
critical pay authority
special rates, recruit-
ment bonuses, waiver
of dual compensation
limitations for retirees
I
Type of
Approval
Limits on
May be Used in
Authority
Purpose
Authority
Coverage
Applies
Pay
Combination with -
subject to
EX-! aggre-
gate pay
limitation
subject to
EX-I aggre-
gate pay
limitation
case-by-case
case-by-case
case-by-case
to enable EPA to fill a same as above
position with a high-
quality current Federal
employee who must
relocate to accept the
position
GS/GM
-------
i1
5) Travel Ex-
penses for Pre-
employment
Interviews and
Relocation Ex-
penses for New
Appointees
6) Retirees - -
Reemployment
of Retirees
without Reduc-
tion in Annuity
or Pay
to enable EPA to pay
pre-employment inter-
view expenses and
some relocation ex-
penses in certain cases,
thereby increasing the
pool of active candi-
dates for first appoint-
ments
to enable EPA to
recruit or retain a
uniformed services or
civilian retiree when
there is exceptional
difficulty in recruiting
or retaining a qualified
Human Re-
source Officers
Travel Authoriz-
ing Officials
OPM (may be
delegated to
agencies in rare
situations)
All new
appointees to
the Federal
government
All new
appointees to
the Federal
government
subject to
EX-I aggre-
gate pay
limitation
(relocation
expenses)
subject to
EX-I aggrc-
gate pay
recruitment bonuses,
relocation expenses,
above-minimum entry
rates, special rates,
critical pay authority
recruitment bonuses,
above minimum entry
rates, advances in pay,
special rates, critical
pay authority
recruitment bonuses,
above-minimum entry
rates, special rates,
critical pay authority
‘I
4) Advances in
Pay
Type of
Approval
Limits on
May be Used in
Authority
Purpose
Authority
Coverage
Applies
Pay
Combination with
to enable EPA to ad-
vance pay to new ap-
pointees experiencing
financial hardship
subject to
EX-1 aggre-
gate pay
limitation
case-by-case
case-by-case
none
any pay
system or
position
-------
Comparison of Major New Retentioi.. hicenfives
Type of
Approval
Limits on
May be
Used in
- Authority Purpose
Authority
Coverage Applies
Pay
Combination with -
(hart 2
1
1) Retention
Allowances
to enable retention of
high-quality employ-
ecs or those for whom
EPA has special need
and who probably
Administrator
Deputy Admini-
strator
AA(OARM)
same as
above
I
case hy-case
subject to
EX-I aggre-
gate pay
limitation
special rates, critical
pay authority
would otherwise
leave the Federal
(depending on
level of the
government
position)
2)
Special Rates
to provide higher pay OPM any pay
rates to address re— system
cruitment or retention established
problems across an by l edera 1
occupation resulting statute
from higher non
Federal rates, rerno c-
ness of location,
undesirable working
conditions, or other
aP pos tJOns oas c pay recruiiii ent bonuSeS,
covered in uicluding rek caIion bonuses,
grades, occu— pecia! rate) retention allowance s,
pationa cannot above-minimum entry
series, and exceed EX ’V rates, waiver of dual
ocations compensation limita-
dons
-------
[ ç 1 i : _1
New Pay Authorities - Table of Approval Levels
Official
Approves
Approves and Forwards
Requests
Administrator
Recruitment and relocation bonuses for Deputy
Administrator
Retention allowances for Deputy
Administrator, Assistant Administrators,
Associate Administrators, and Regional
Administrators
Designates natural disaster emergencies
affecting more than one region or Headquarters
organization
Deputy Administrator
Recruitment and relocation bonuses for
Executive Schedule and Presidential
Appointees
Retention allowances for Executive Schedule
and Presidential Appointees
Assistant
Administrator for
Administration and
Resources
Management (OARM)
Recruitment and relocation bonuses for Senior
Level Scientific and Professional (S i’), and
SES
Retention allowances for Senior Level,
Scientific and Professional (ST), SES,
GS/GM-15 and below, and Law Enlorcement
Officers (Cnminal In estigators)
Sets and adjusts pay rates for Senior Level and
Scientific and Professional (SI) positions, has
been redelegated to the Deputy AA (OARM)
To OPM for approval to appoint
Federal retirees without
reduction in annuity or pay
To OPM to request special
salary rates
To OPM for new hazard pay
coverage (i.e , Criminal
Investigators)
To OPM for supenor
qualifications appointments
(when rate is 20 percent above
the candidates current salar))
-------
Official
Approves
Approves and Forwards Requests
Assistant
Administrators
and issociate
Administrators
Recruitment and relocation bonuses
for GSJGM—1 5 and below and Law
Enforcement Officers (Criminal
Investigators) -- may be redelegated
Designate natural disaster emergencies
(affecting only their Headquarters
organizations)
To Director (OIiRM) for transmittal to
OPM to lift the biweekly limitation on
earnings in non-natural disaster
emergencies
Supervisory differentials (may be
redelegated to Division Director level)
To AA (OARM) for transmittal to OPM to
request special salary rates
To AA (OARM) for approval of bonuses
for ST. SES, ES, Presidentially appointed
and other categories (other than GS/GM
and Criminal Investigators)
To AA (OARM) for transmittal to OPM to
request approval to hire Federal retirees
without reduction in annuity or pay
To AA (OARM) for transmittal to OPM
requesting new hazard pay coverage (i.e.,
Criminal Investigators)
Regional
Administrators
Recruitment and relocation bonuses
for GS/GM-15 and below and law
enforcement officers (may be
redelegated)
Designate natural disaster emergencies
(affecting only their regions)
To AA (OARM) for transmittal to the
Administrator for designation of natural
disaster emergencies affecting more than
one region or Headquarters organization
Supervisory differentials (may be
redelegated to Division Director level)
To AA (OARM) for transmittal to OPM to
request special salary rates
To AA (OARM) for transmittal to OPM
requesting new hazard pay coverage (i.e.,
Criminal Investigators)
Dir ctor, Office
of Human
Resources
(OHR 4)
Lifis the biweekly limitation on
earnings in natural disaster
emergencies designated by the
Assistant Administrator
To OPM to lift the biweekly limitation on
earnings in non-natural disaster
emergencies
Chart 3
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Chart 3
Official
Approves
Approves and
Forwards
Requests
Human Superior qualifications appointments (when rate is 20
Resource percent or above the candidate’s current salary)
Officers
To AA (OARM) for
transmittal to OPM
when rate is more
than 20 percent above
the candidate’s
current salary
Advances in pay
Lift the biweekly limitation on e&nings for natural
disaster emergencies designated by Regional
Administrators, Assistant Administrators, or
Associate Administrators
Travel
Authorizing
Officials
Approves payment of pre-employment interviews and
expenses to the first post of duty
OPM Special pay rates
—— --- ----
Hazaidous duty pay for Criminal Investigators
Appointments of Federal retirees without reduction in
annuity or pay
Superior qualifications appointments (when rate is
more than 20 percent above the candidate’s current
salary)
Lifts the biweekly limitation on earnings in
non-natural disaster emergencies
0MB
Critical pay positions
Pay Agent
Special occupational pay systems
President
Interim geographic adjustments
Changes in annual pay adjustments
Changes in local comparability adjustments
Staffing Differentials
Congress
Pay-for-performance system for GS employees
U .S. Governhlent Printing Office 1991 - 618—184/08111
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