Applicability of Senior Executive Service to Federal Reserve Board

The Office of Personnel Management (OPM) requested an opinion as to whether the employees of the Board of Governors of the Federal Reserve System are subject to the provisions of the Civil Service Reform Act of 1978, which establishes a Government-wide Senior Executive Service designed to insure the high quality of Government executives. It is the opinion of OPM that the employees of the Board of Governors of the Federal Reserve System are subject to the provisions of the Act, but the Board of Governors disagrees. GAO observed that there is nothing in the legislative history of the Civil Service Reform Act of 1978 to indicate any intent to alter the Board's independent status in the Government or to eliminate the Board's autonomy in matters of personnel management. The Federal Reserve Act, as amended, expressly excepts the appointment and compensation of all employees of the Board of Governors, Federal Reserve System, from the provisions of the civil service laws and regulations. Therefore, the Act must be given priority over a subsequently enacted statute generally applicable to Federal agencies.