Execs may get bigger bonuses, no pay raise

Top federal executives may not get a raise next year, but they could wind up with bigger bonuses, under provisions Congress is considering.

The Senate and House versions of the 1999 Treasury-Postal appropriations bill block a pay raise for members of Congress. That decision would prevent top senior executives from getting pay increases next year.

Senior Executive Service pay, including base pay and locality adjustments, is capped at Level III on the Executive Schedule--currently $125,900. SES base pay is capped at Level IV of the schedule, which is $118,400. Members of Congress are paid at Level II of the schedule, $136,700. If Congress denies itself a raise, the executive schedule pay rates will not change. When President Clinton announces pay increases for federal workers at the end of the year, top SESers would be stuck at their current salaries.

This year was the first year top SESers received a raise since 1993, when members of Congress began denying themselves automatic cost-of-living increases to avoid the political repercussions of voting themselves raises.

A pay increase for Congress--and therefore, senior executives--squeaked through as part of the 1998 Treasury-Postal appropriations bill. But the prospect of congressional elections in November have turned members skittish about allowing another raise to go through.

Meanwhile, the House version of the bill would increase the amount agencies could award executives in annual bonuses. Current law restricts the pot of money available for executive bonuses to the greater of either 3 percent of an agency's total SES basic pay budget or 15 percent of the average SES basic salary in an agency. The House proposal would raise the limits to 10 percent of the agency's total SES basic pay budget or 20 percent of the average SES salary.

In addition, the bill would increase the presidential rank awards, the annual honors SES members receive for outstanding service. Under current rules, meritorious award winners receive $10,000, while distinguished winners receive $20,000. The House bill would make meritorious awards worth 20 percent of base salary and distinguished awards worth 35 percent of base salary. That means a top ranked SESer who wins a distinguished presidential rank award would take home a $44,000 award.

The Senate version of the bill does not include the SES provision.