Salaries and Allowances: The Executive Branch

SALARIES AN2 ALLOWANCES: THE EXECUTIVE BRANCH MINI BRIEF NUMBER MB81263 AUTHOR: S h a r o n S. G r e s s l e Government Division THE LIBRARY 9F CONGRESS CONGRESSIONAL RESEARCH SERVICE MAJOR ISSUES SYSTEM D A T E ORIGINATED 12/14/81 D A T E UPDATED 10/20/82 FOR ADDITIONAL INFORMATION CALL 287-5700 1020 CRS- 1 ISSUE D E F I N I T I O H This mini b r i e f provides basic information on s a l a r i e s and allowances a v a i l a b l e t o o f f i c e r s and employees of t h e e x e c u t i v e branch. ( S e e MB80206 f o r c o n g r e s s i o n a l s a l a r i e s a n d a l l o w a n c e s a n d MB61264 f o r judicial salaries and allowances.) BACKGROUND T h e P r e s i d e n t o f t h e U.S. Salary: $ 2 0 0 , 0 0 0 p e r annum. (Taxable income) -. Expense Allowance: T r a v e l Allowance: $ 5 0 , 0 0 0 p e r annum. $ 4 0 , 0 0 0 p e r annum. (Taxable income) (Not t a x a b l e as d i r e c t income) Other: There a r e appropriations a v a i l a b l e f o r . t h e maintenance of the White House. However, e x p e n d i t u r e s t h a t must be p a i d o u t o f pocket by t h e P r e s i d e n t i n c l u d e f a m i l y meals, p e r s o n a l f u r n i s L i n g s , p e r s o n a l g r o o m i n g , e t o . T h e r e c e n t r e n o v a t i o n s a t t h e W h i t e H o u s e a n d p u r c h a s e o f s u c h i t e m s a s new cfficial china were a l l covered by p r i v a t e contributions. Health Benefits: A P r e s i d e n t may e n r o l l i n any one of several health p l a n s under t h e F e d e r a l Employees Health B e n e f i t s Program. H i s participation i s o p t i o n a l a n d h e w o u l d be r e q u i r e d t o c o n t r i b u t e t o t h e p r e m i u m s . Pension: A former President receives a pension equal t o the s a l a r y of Level I of head of a c a b i n e t department. C u r r e n t l y t h o s e p o s i t i o n s a t Executive Schedule are being p a i d a t t h e r a t e of $69,630 p e r annum. f u r t h e r i n f o r m a t i o n on t h e b e n e f i t s a v a i l a b l e t o a former P r e s i d e n t a n d of the United States," h i s f a m i l y see " B e n e f i t s t o Former P r e s i d e n t s R e p o r t 8 0 - 2 1 1 GOV, O c t . 2 9 , 1 9 8 0 . the the For to CRS Vice President of t h e United S t a t e s Salary: $ 7 9 , 1 2 5 p e r a n n u m (NOTE: T h e r e a d e r may s e e t h a t , i n t h e m i n i b r i e f o n c o n g r e s s i o n a l s a l a r i e s a n d a l l o w a n c e s , t h e same s a l a r y i s l i s t e d f o r t h e Vice P r e s i d e n t a s P r e s i d e n t o f t h e S e n a t e . He r e c e i v e s o n l y o n e s a l a r y in his dual role.) Expense Allowance: $10,000 p e r annum, d e d u c t i o n u n d e r t h e I n t e r n a l R e v e . x e Code. non-taxable nor allowable as a CRS- 2 ME81263 UPDATE-~O/~O Other: See M B E 0 2 0 6 for more detail on clerk hire and allowances available to the President of the Senate. Health Benefits: The Vice President may enroll in and contribute health plan under the Federal Employee Health Benefits Plan. to a Retirement: T h e Vice President may elect to contribute to the Civil Service Retirement Program. Must have a t least five years of service before being eligible f o r benefits. Executive Schedule T h e Executive Schedule i s comprised of f i v e officials: Level I Level I 1 --- Level I 1 1 -- Level I V -- Level V -- Salaries: of Executive Branch Cabinet officials Deputy secretaries of major departments, Secretaries of military departments, a n d heads o f major a g e n c i e s Deputy secretaries of minor departments, heads of middle level agencies Assistant secretaries a n d general counsels of d e p a r t m e n t s , heads of minor a g e n c i e s , members of certain boards and commissions Administrators, commissioners, d i r e c t o r s , and members of boards, commissions, o r units of agencies. Level I ~e Level Level Level levels v e l1 1 I11 IV V -- $ 6 9 , 6 3 0 per annum -- $60,662.50 per annum 559,500 5 8 500 57,500 Allowances: Generally, specific allowances available to officials o n the Executive Schedule. However, t h e heads o f t h e major departments d o have access to such special privileges as chauffered cars, kitchen staff a n d other facilities a t their disposal. However, these perquisites a r e not uniform throughout the departments a n d t h e use to which they a r e made varies in accordance with t h e policy o f t h e individual office holder. Health Benefits and Retirement: The type of appointment determines the office holder's eligibility to contribute to a n d participate i n the F e d e r a l Employees Health Benefits Program and the C i v i l Service Retirement Program. Generally, if a person i s appointed by the President t o one o f these o f f i c e s from a Federal position under which that person is already a n enrollee, the serves a t the enrollment continues. However, a person i n such a position pleasure of the incumbent President. Consequently, the official may decide t h a t , in the short term, enrollment in the Federal programs may not be worth the expense. H e may decide to continue whatever private coverage he maintained before his appointment. Senior Executive Service CRS- 3 MB81263 UPDATE-10/20/82 The Civil S e r v i c e seform Act provided for the establishment of a Senior Executive Service (SES). T h e bulk of the positions within the S E S were drawn from the G e n e r a l Schedule positions at G S - 1 6 . t h r o u g h GS-18. Some a l s o were drawn from L e v e l s I V and V of the Executive Schedule. T h e recommended salary rates for the S E S are listed below. H o w e v e r , the a c t u a l salaries for those which had been positions a t L e v e l V or below are frozen at the Level V salary r a c e ($57,500) and chose which had been a t L e v e l I V a r e frozen a t that rate ($58,500) . The rates effective Jan. 1 , 1 9 8 2 are: T h e members of the Senior Executive S e r v i c e are eligible for a system of bonuses. Further information on the bonus system and on other matters related to t h e Senior Executive S e r v i c e can be found in "Civil S e r v i c e Reform (IB79094) Act: Implementation." General S c h e d u l e Employees The General Schedule, covering most w h i t e collar Federal employees, consists of 1 8 . g r a d e s 1 most of which have 10 steps. Advancement from o n e s t e p t o a n o t h e r i s . d e p e n d e n t o n timz-in-service factors and results o f a n n u a l performance evaluations. If a person w e r e to be i n the same g r a d e and receive t h e necessary positive performance evaluations, i t would take 1 8 years to progress from s t e p 1 t o step 10. T h e Civil S e r v i c e Reform Act established a merit pay system f o r managers and supervisors i n grades 1 3 a n d above. Each agency is to devise a specific performance a p p r a i s a l system f o r these personnel. An employee within this system is guaranteed only 5 0 % of the a n n u a l comparability increase and i s restricted i n advancement t h r o u g h the s t e p s of t h e grade. F o r further information o n the implementation o f this s y s t e m , s e e MB81258, "Merit Pay f o r Federal Employees." Under the provisions of s e c t i o n 5 3 0 8 of title 5 of the U.S. Code, no General S c h e d u l e employee may receive a r a t e of pay greater t h a n that L e v e l V is set a t $ 5 7 , 5 0 0 received by Executive S c h e d u l e L e v e l V positions. (as of 01/01/82). Therefore, while the higher grades of the General S c h e d u l e salaries a c t u a l l y a r e f r o z e n a t have designated rates (shown with a n * I , $57,500 per annum. The salaries shown for t h e General Schedule went i n t o effect a s o f Oct. 1 , 1982. F o r information on t h e policies a n d procedures governing the annual comparability adjustment f o r these salaries see IB80039, "Federal P a y Comparability Reform" (Archived). GS-1 GS-2 Range: Range: Step 1 Step 1 --- $8,676; $9,756; Step 1 0 Step 1 0 --- $10,857. $12,278. CRS- 4 Range: Step Step Range: Step Range: Step Range: Step Range: Step Range: Step Range: Range: Step Step Range: Step Range: Step Range: Step Range: Step Range: Step Range: Step Range: $78,184. * 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 ------ ---- --- ----- -- KB81263 UPDATE-10/2C/82 Step Step Step step Step step Step step Step Step Step Step Step Step Step Health Benefits: Most r a n k a n d f i l e F e d e r a l employees a r e e l i g i b l e t o e n r o l l i n t h e c o n t r i b u t o r y F e d e r a l Employees H e a l t h B e n e f i t s Program. The Program c o n s i s t s of s e v e r a l commercial h e a l t h insurance carrier plans. Enployees u s u a l l y have a n "open season" each y e a r i n which they can join, change, o r expand coverage. The F e d e r a l Government p a y s 60% o f t h e premiums the premiums for and t h e employees 40%. I t i s e s t i m a t e d t h a t t h e c o s t of 1983 w i l l i n c r e a s e a t a n a v e r a g e r a t e of 24%. 30 Retirement: I n g e n e r a l , t h e law p r o v i d e s t h a t a F e d e r a l e m p l o y e e w i t h There a r e y e a r s o f s e r v i c e a n d who i s 5 5 y e a r s o f a g e may d r a w a n a n n u i t y . complex e x c e p t i o n s t o t h a t r u l e . I t i s a c o n t r i b u t o r y program t o which the F o r a m o r e t h o r o u g h d i s c u s s i o n of the Federal employee pay 7% of s a l a r y . Provisions, r e t i r e m e n t s y s t e m , see " C i v i l S e r v i c e R e t i r e m e n t S y s t e m - - H i s t o r y , a n d F i n a n c i n g , " C o m m i t t e e P r i n t No. 9 7 - 3 ; p r . e p a r e d f o r t h e H o u s e C o m m i t t e e o n P o s t O f f i c e a n d C i v i l S e r v i c e b y CRS s t a f f . A l l Federal employees accrue s i c k l e a v e at a r a t e of 4 hours Leave: e a r n e d f o r e v e r y 80 h o u r s worked. An e m p l o y e e w o r k i n g a f u l l y e a r w o u l d T h i s leave can be t a k e n o n l y when a c c r u e 1 3 d a y s o f s i c k l e a v e each y e a r . t h e e m p l o y e e i s ill. The o n l y e x c e p t i o n t o t h i s would b e i n t e n s e e x p o s u r e t o An c e r t a i n h i g h l y c o n t a g i o u s a n d t r a n s m i t t a b l e d i s e a s e s , s u c h as d i p t h e r i a . e m p l o y e e may a c c r u e a n u n l i m i t e d n u m b e r o f h o u r s o f s i c k l e a v e a n d c a r r y t h e m from one y e a r t o a n o t h e r . t h e number Annual l e a v e , o r v a c a t i o n t i m e , i s accrued i n accordance with of years of Federal service. For e v e r y 80 h o u r s worked a n empioyee w i t h l e s s 3 t h a n 3 y e a r s s e r v i c e e a r n s 4 hours annual l e a v e , an employee w i t h between 15 and 1 5 years of service earns 6 hours annual leave and an employee w i t h y e a r s o f s e r v i c e o r more e a r n s 8 h o u r s o f a n n u a l l e a v e . T h i s works o u t t o 1 3 , 20, a n d 26 d a y s o f a n n u a l l e a v e e a c h work y e a r . A maximum o f 2 4 0 hours may be c a r r i e d from one y e a r t o another. F e d e r a l Wage S y s t e m force. T h e F e d e r a l Wage S y s t e m i s t h e p a y s y s t e m f o r t h e b l u e c o l l a r w o r k wage The salaries under t h i s system a r e s e t through a complex system of T h e F e d e r a l wages s u r v e y s i n 1 3 7 wage a r e a s t h r o u g h o u t t h e U n i t e d S t a t e s . w i t h i n e a c h of t h e s e a r e a s a r e l i n k e d t o wages f o r similar o c c u p a t i o n s in CRS- 5 KB81263 UPDATE-10/20/82 However, the that area. The wage a d j u s t m e n t s a r e p u t i n t o e f f e c t a n n u a l l y . a r e a s a r e on s c h e d u l e s t h a t p e r m i t g e o g r a p h i c a l s t a g g e r i n g i n s t e a d of one s e t calendar date nationwide. Wage R a t e s : A l t h o u g h t h e wage r a t e s r a n g e b r o a d l y a c c o r d i n g t o l o c a l i t y a n d o c c u p a t i o n , t h e maximum r a t e of increase during Fiscal Year 1982 i s limited t o 4%, which was t h e a v e r a g e r a t e of a d j u s t m e n t o n which t h e O c t . 1, 1 3 8 2 General S c h e d u l e r a i s e s were based. Other: T h e s e e m p l o y e e s a r e u n d e r t h e same h e a l t h , programs a s t h o s e u n d e r t h e G e n e r a l S c h e d u l e . retirement and leave