In a calendar year, the aggregate pay actually received by an employee may not exceed the rate of pay for level I of the Executive Schedule which is $191,300 for the calendar year 2008.

  ¹A higher aggregate limitation on pay must apply -- up to the Vice President's salary ($221,100 in 2008) for SES members and SL/ST positions when the performance appraisal system for each group has been certified.

Virtually all Executive branch employees are subject to the aggregate limit.

Exception: Certain employees in "critical" positions may be paid a rate greater than level I of the Executive Schedule. There are currently no such employees in the Department.

The following types of pay are subject to the aggregate limit:

• basic pay,
• lump sum payment of deferred amounts from the previous calendar year (see "Payment of deferred pay"),
• locality pay, including special pay adjustments for law enforcement officers (LEOs),
• most premium pay,
• most awards,
• recruitment and relocation bonuses,
• physicians comparability, retention, and danger pay allowances,
• supervisory and post differentials,
• continuation of pay, and
• payments under title 5, United States Code, that are "similar" to any of the above.

The following types of pay are not subject to the aggregate limit:

• back pay,
• overtime pay under the Fair Labor Standards Act (FLSA),
• repayment of student loans,
• severance pay, and
• lump sum annual leave payments.

If estimated aggregate compensation for the calendar year exceeds the aggregate limit, any retention allowances must be discontinued.

If estimated aggregate compensation still exceeds the aggregate limit, pay must be deferred in the following order:

1. other discretionary payments,
2. nondiscretionary payments (except for basic pay), and
3. lump sum payment of deferred amounts from the previous calendar year (see "Payment of Deferred Pay," below).

Deferred amounts are paid in a lump sum at the beginning of the next calendar year.

Statute:    5 U.S.C. 5307

Regulation:    5 CFR Part 530, Subpart B