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HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES

January 2008 Pay Adjustments

The President has signed an Executive order to implement the January 2008 pay adjustments. (See Attachment 1.) The Executive order authorizes a 2.5 percent across-the-board increase for the statutory pay systems under the provisions of 5 U.S.C. 5303 and locality pay increases costing approximately 1.0 percent of payroll under 5 U.S.C. 5304, reflecting the overall average pay increase of 3.5 percent required by section 740 of Division D of the Consolidated Appropriations Act, 2008.

2007 Annual Review of Special Rates

The U.S. Office of Personnel Management (OPM) has completed the 2007 annual review of existing special rates authorized under 5 U.S.C. 5305. As a result, 248 special rate schedules will be increased in tandem with the 2.5 percent across-the-board General Schedule base pay increase effective on the first day of the first applicable pay period beginning on or after January 1, 2008 (January 6, 2008). The 248 special rate schedules cover approximately 47,000 employees.

2006 Annual Review of Special Rates

The Office of Personnel Management (OPM) has completed the 2006 annual review of existing special rates authorized under 5 U.S.C. 5305. As a result, 258 special rate schedules will be increased in tandem with the 1.7 percent across-the-board General Schedule base pay increase effective on January 7, 2007. The 258 special rate schedules cover approximately 54,400 employees.

Draft January 2007 Salary Tables

The Office of Personnel Management (OPM) is posting draft 2007 salary tables on OPM's Web site at http://www.opm.gov/oca/07tables/index.asp. We anticipate the President will issue an Executive order later this month to implement the 2007 pay rates. We will issue a separate memorandum announcing the final 2007 salary tables after the President signs the Executive order.

Alternative Plan

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