Recommendations of the Commission on Executive, Legislative, and Judicial Salaries

One of the more serious problems facing Government today is the inadequate salary levels for top Federal officials and the depressing effect this has on the pay rates for the entire Federal management structure. Top Federal officials, including members of Congress, have been making financial sacrifices for many years. The Commission on Executive, Legislative, and Judicial Salaries has made salary recommendations to improve the pay situation including: (1) permitting an automatic pay adjustment; (2) enacting legislation to permit reimbursement for relocation costs; (3) granting a special expense allowance to members of Congress to cover the actual costs related both to the need to maintain dual residences and to cover the expenses of representing their constituents; (4) establishing a commission to resolve the problems inherent in the complex total compensation system for Federal employees; and (5) providing for a biennial review of executive, legislative, and judicial salaries. Pay raises provided to members of Congress, Federal judges, and top Federal executives have routinely been reduced or denied. These officials have suffered large losses in purchasing power, which has resulted in severe retention problems. Little incentive exists for Federal executives to seek positions of greater authority and responsibility. Low salaries cause recruitment problems. Many Federal executives have chosen to retire rather than to continue working at frozen pay levels. This incentive to retire is intensified by the regular cost-of-living adjustments that retirees receive. The compensation system of the newly created Senior Executive Service (SES) is severely limited. Virtually all SES members are paid the same rate despite major differences in their responsibilities. SES bonuses have been reduced. A major factor causing pay compression is the informal link between congressional, executive, and judicial salaries. Executive and judicial pay is adversely affected when Congress has been unwilling to increase its own pay. GAO believes that regular adjustments to pay are more acceptable to the public than large jumps every 4 years and, therefore, have recommended that Congress allow annual adjustments to take effect as the law provides.