Message to the Congress Transmitting an Alternative Plan for Federal Pay Increases

To the Congress of the United States:

Under the Federal Pay Comparability Act of 1970, the President is required to make a decision each year on what, if any, pay adjustment should be provided for Federal employees under the General Schedule and the related statutory pay systems.

My pay advisors have reported to me that an increase in pay rates averaging 23.79 percent, to be effective in October 1986, would be required under existing procedures to raise Federal pay rates to comparability with private sector pay rates for the same levels of work. However, the law also empowers me to prepare and transmit to the Congress an alternative plan for the pay adjustment if I consider such an alternative plan appropriate because of "national emergency or economic conditions affecting the general welfare." Furthermore, section 15201(a) of the Consolidated Omnibus Budget Reconciliation Act of 1985, Public Law 99-272, requires that, in adjusting rates of pay under the Comparability Act, I achieve savings of at least $746 million in fiscal year 1987 compared to the "baseline" the Congress has used in its budget process. Section 15201(a) also requires that the effective date of the pay adjustment be delayed until January 1987.

Accordingly, after reviewing the reports of my Pay Agent and the Advisory Committee on Federal Pay, after considering the adverse effect that a 23.79 percent increase in Federal pay rates might have on our national economy, and in order to implement the requirements of the Reconciliation Act, I have determined that economic conditions affecting the general welfare require the following alternative plan for this pay adjustment:

In accordance with section 5305(c)(1) of title 5, United States Code, the pay rates of the General Schedule and the related statutory pay schedules shall be increased by an overall percentage of 2 percent for each schedule, with such increase to become effective on the first day of the first applicable pay period beginning on or after January 1, 1987.

Accompanying this report and made a part hereof are the pay schedules that will result from this alternative plan, including, as required by section 5382(c) of title 5, United States Code, the rates of basic pay for the Senior Executive Service.

RONALD REAGAN

The White House,

August 28, 1986.

Schedule 1—GENERAL SCHEDULE

To be effective the first pay period in January 1987

1 2 3 4 5

GS-1---------------------------------- $9,526 $9,843 $10,160 $10,476 $10,794

GS-2 --------------------------------- 10,711 10,965 11,319 11,621 11,752

GS-3---------------------------------- 11,687 12,077 12,467 12,857 13,247

GS-4---------------------------------- 13,119 13,556 13,993 14,430 14,867

GS-5---------------------------------- 14,678 15,167 15,656 16,145 16,634

GS-6---------------------------------- 16,360 16,905 17,450 17,995 18,540

GS-7---------------------------------- 18,180 18,786 19,392 19,998 20,604

GS-8---------------------------------- 20,135 20,806 21,477 22,148 22,819

GS-9---------------------------------- 22,240 22,981 23,722 24,463 25,204

GS-10-------------------------------- 24,492 25,308 26,124 26,940 27,756

GS-11-------------------------------- 26,909 27,806 28,703 29,600 30,497

GS-12-------------------------------- 32,251 33,326 34,401 35,476 36,551

GS-13-------------------------------- 38,351 39,629 40,907 42,185 43,463

GS-14-------------------------------- 45,319 46,830 48,341 49,852 51,363

GS-15-------------------------------- 53,308 55,085 56,862 58,639 60,416

GS-16-------------------------------- 62,522 64,606 66,690 68,774 * 70,858

GS-17-------------------------------- * 73,240 * 75,681 * 78,122 * 80,563 * 83,004

GS-18-------------------------------- * 85,840

6 7 8 9 10

GS-1---------------------------------- $10,979 $11,292 $11,608 $11,621 $11,919

GS-2---------------------------------- 12,098 12,444 12,790 13,136 13,482

GS-3---------------------------------- 13,637 14,027 14,417 14,807 15,197

GS-4---------------------------------- 15,304 15,741 16,178 16,615 17,052

GS-5---------------------------------- 17,123 17,612 18,101 18,590 19,079

GS-6---------------------------------- 19,085 19,630 20,175 20,720 21,265

GS-7---------------------------------- 21,210 21,816 22,422 23,028 23,634

GS-8---------------------------------- 23,490 24,161 24,832 25,503 26,174

GS-9---------------------------------- 25,945 26,686 27,427 28,168 28,909

GS-10-------------------------------- 28,572 29,388 30,204 31,020 31,836

GS-11-------------------------------- 31,394 32,291 33,188 34,085 34,982

GS-12-------------------------------- 37,626 38,701 39,776 40,851 41,926

GS-13-------------------------------- 44,741 46,019 47,297 48,575 49,853

GS-14-------------------------------- 52,874 54,385 55,896 57,407 58,918

GS-15-------------------------------- 62,193 63,970 65,747 67,524 69,301

GS-16-------------------------------- * 72,942 * 75,026 * 77,110 * 79,194

GS-17--------------------------------

GS-18--------------------------------

• The rate of basic pay payable to employees at these rates is limited to the rate payable for level V of the Executive Schedule, which would be $70,100.

Schedule 2—FOREIGN SERVICE SCHEDULE

To be effective the first pay period in January 1987

Step Class 1 Class 2 Class 3 Class 4

1-------------------------------------- $53,308 $43,195 $35,001 $28,361

2 ------------------------------------- 54,907 44,491 36,051 29,212

3 ------------------------------------- 56,554 45,826 37,133 30,088

4 ------------------------------------- 58,251 47,200 38,247 30,991

5 ------------------------------------- 59,999 48,616 39,394 31,921

6 ------------------------------------- 61,799 50,075 40,576 32,878

7 ------------------------------------- 63,653 51,577 41,793 33,865

8 ------------------------------------- 65,562 53,124 43,047 34,880

9 ------------------------------------- 67,529 54,718 44,338 35,927

10 ------------------------------------ 69,301 56,360 45,668 37,005

11 ------------------------------------ 69,301 58,050 47,038 38,115

12 ------------------------------------ 69,301 59,792 48,450 39,258

13 ------------------------------------ 69,301 61,586 49,903 40,436

14 ------------------------------------ 69,301 63,433 51,400 41,649

Class 5 Class 6 Class 7 Class 8 Class 9

1 ------------------------------------- $22,981 $20,544 $18,366 $16,419 $14,678

2 ------------------------------------- 23,670 21,160 18,917 16,912 15,118

3 ------------------------------------- 24,381 21,795 19,484 17,419 15,572

4 ------------------------------------- 25,112 22,449 20,069 17,941 16,039

5 ------------------------------------- 25,865 23,122 20,671 18,480 16,520

6 ------------------------------------- 26,641 23,816 21,291 19,034 17,016

7 ------------------------------------- 27,441 24,531 21,930 19,605 17,526

8 ------------------------------------- 28,264 25,267 22,588 20,193 18,052

9 ------------------------------------- 29,112 26,025 23,265 20,799 18,594

10 ------------------------------------ 29,985 26,805 23,963 21,423 19,151

11 ------------------------------------ 30,885 27,609 24,682 22,066 19,726

12 ------------------------------------ 31,811 28,438 25,423 22,728 20,318

13 ------------------------------------ 32,765 29,291 26,186 23,410 20,927

14 ------------------------------------ 33,748 30,170 26,971 24,112 21,555

Schedule S—DEPARTMENT OF MEDICINE AND SURGERY SCHEDULES, VETERANS'

ADMINISTRATION

To be effective the first pay period in January 1987

Minimum Maximum

Section 4103 schedule:

Chief Medical Director---------------------------------------- ^*** $96,262

Deputy Chief Medical Director -------------------------------- ^** 92,343

Associate Deputy Chief Medical Director --------------------- ^* 88,447

Assistant Chief Medical Director ------------------------------ ^* 85,840

Medical Director ---------------------------------------------- ^* $73,240 ^* 83,004

Director of Nursing Service ----------------------------------- ^* 73,240 ^* 83,004

Director of Podiatric Service ---------------------------------- 62,522 ^* 79,194

Director of Chaplain Service ---------------------------------- 62,522 ^* 79,194

Director of Pharmacy Service --------------------------------- 62,522 ^* 79,194

Director of Dietetic Service ----------------------------------- 62,522 ^* 79,194

Director of Optometric Service ------------------------------- 62,522 ^* 79,194

Physician and dentist schedule:

Director grade ------------------------------------------------ 62,522 ^* 79,194

Executive grade ----------------------------------------------- 57,731 ^* 75,047

Chief grade --------------------------------------------------- 53,308 69,301

Senior grade -------------------------------------------------- 45,319 58,918

Intermediate grade -------------------------------------------- 38,351 49,853

Full grade ----------------------------------------------------- 32,251 41,926

Associate grade ----------------------------------------------- 26,909 34,982

Clinical podiatrist and optometrist schedule:

Chief grade --------------------------------------------------- 53,308 69,301

Senior grade -------------------------------------------------- 45,319 58,918

Intermediate grade -------------------------------------------- 38,351 49,853

Full grade ----------------------------------------------------- 32,251 41,926

Associate grade ----------------------------------------------- 26,909 34,982

Nurse schedule:

Director grade ------------------------------------------------ 53,308 69,301

Assistant Director grade -------------------------------------- 45,319 58,918

Chief grade --------------------------------------------------- 38,351 49,853

Senior grade -------------------------------------------------- 32,251 41,926

Intermediate grade -------------------------------------------- 26,909 34,982

Full grade ----------------------------------------------------- 22,240 28,909

Associate grade ----------------------------------------------- 19,138 24,880

Junior grade -------------------------------------------------- 16,360 21,265

^*** The rate of basic pay is limited to the rate payable for level III of the Executive Schedule, which would be $75,100.

^** The rate of basic pay is limited to the rate payable for level IV of the Executive Schedule, which would be $73,700.

^* The rate of basic pay is limited to the rate payable for level V of the Executive Schedule, which would be $70,100.

Schedule 4—SENIOR EXECUTIVE Schedule 6—VICE PRESIDENT AND

Schedule 4—SENIOR EXECUTIVE SERVICE

To be effective the first pay period in January 1987

ES-1 $62,522

ES-2 65,048

ES-3 67,574

ES-4 70,100

ES-5 71,900

ES-6 73,700

Schedule 5—EXECUTIVE SCHEDULE

To be effective the first pay period in January 1987

Level I------------------------------------------------ $87,900

Level II------------------------------------------------ 76,600

Level III----------------------------------------------- 75,100

Level IV----------------------------------------------- 73,700

Level V----------------------------------------------- 70,100

Schedule 6—VICE PRESIDENT AND

MEMBERS OF CONGRESS

To be effective the first pay period in January

Vice President----------------------------------------- $99,900

Senators----------------------------------------------- 76,600

Members of the House of Representatives------------- 76,600

Schedule 6—VICE PRESIDENT AND

MEMBERS OF CONGRESS—Continued

To be effective the first pay period in January 1987

Delegates to the House of Representatives------------- 76,600

Resident Commissioner from Puerto Rico-------------- 76,600

President pro tempore of the Senate------------------- 86,700

Majority leader and minority leader of the Senate------ 86,700

Majority leader and minority leader of the

House of Representatives------------------------------ 86,700

Speaker of the House of Representatives-------------- 99,900

Schedule 7—JUDICIAL SALARIES

To be effective the first pay period in January

Chief Justice of the United States---------------------- ^* $108,400

Associate Justices of the Supreme Court--------------- ^* 104,100

Circuit Judges----------------------------------------- ^* 83,200

District Judges----------------------------------------- ^* 78,700

Judges of the Court of International Trade------------- ^* 78,700

Judges of the United States Claims Court-------------- 71,600

Bankruptcy Judges------------------------------------ 69,800

^* Under section 140 of Public Law 97-92, (95 Stat. 1200), salaries for Federal judges and Justices of the Supreme Court would not be increased.