Increase" illustrates the difference in the longevity earnings at the beginning of the sixth, eleventh, sixteenth, and twenty-first years. Although a Senate employee will earn more longevity compensation under the proposed modification, it should be noted that an Executive Branch employee appointed as a GS-10-1 ($16,617) will have earned an additional $4,986 per annum as of the beginning of the nineteenth year of service while a Senate employee would not equal or surpass this additional annual amount until the beginning of the twenty-fourth year of service. This proposal enhances the longevity entitlement for newer and younger employees to a greater degree than for older employees but does not have a negative effect on older employees.

MERIT INCREASE PROGRAM

The utilization of a merit compensation program could serve to

minimize the numerous requests to the Committee on Appropriations by the

Secretary of the Senate and the Sergeant at Arms and Doorkeeper for

changes in position not-to-exceed rates which are necessitated or occasioned, in many instances, by circumstances surrounding the requirements or responsibilities of positions.

The program would apply to all statutory positions under the jurisdiction of the Secretary of the Senate and the Sergeant at Arms and Doorkeeper for employees rated as outstanding and exceptional.

To qualify for a merit increase, an employee must occupy his position for at least two (2) years and must be earning the maximum annual compensation of the position before being eligible to receive merit compensation.

An employee who has been authorized a merit increase may, at the discretion of the of the Secretary of the Senate or the Sergeant at Arms and Doorkeeper, continue to receive the merit compensation if transferred to another position if the employee is being compensated at the maximum annual rate of the new position. In other words, the two (2) year

requirement would not apply to the position to which the employee is transferred to.

Merit compensation would be limited to an amount which may not exceed ten (10) percent of the maximum annual salary of the position rounded to the next highest payroll multiple (currently $179) and when added to the employees' gross annual compensation (including longevity

compensation) may not exceed the maximum annual salary which may be paid to Senate employees generally (currently $49,941).

The Secretary of the Senate may not authorize the merit increase for more than eight (8) employees during any fiscal year. The Sergeant at Arms and Doorkeeper may not authorize the merit increase for more than eighteen (18) employees during any fiscal year.

The Secretary of the Senate and the Sergeant at Arms and Doorkeeper would be required, within thirty (30) days following the end of each fiscal year, to file a report with the Committee on Appropriations detailing the the use and implementation of the merit compensation authority including the names of all employees receiving merit compensation as of the end of the fiscal year, the position occupied by each such employee and the date when each employee began receiving the merit compensation.

The merit compensation would not affect or change the not-to-exceed rate for any position. Furthermore, if an employee who has been authorized the merit compensation terminates his service in the position, the salary rate for the position automatically reverts to the not-to-exceed salary established by law, and the successor employee must qualify for the merit compensation in his or her own right.

OFFICE OF CLASSIFIED NATIONAL SECURITY INFORMATION

Five new positions for the Secretary's Office are attributed to the creation of the new Office of Classified National Security Information. This office, created by Senate Resolution 252, is under the policy direction of the Majority Leader, the Minority Leader and the Chairman of the Committee on Rules and Administration. It is under the adminis

trative direction and supervision of the Secretary of the Senate. Under the Resolution, the office has the authority to:

1. Perform the administrative functions necessary to classify and declassify information relating to the national security considerations of nuclear technology in accordance with guidelines developed for restricted data by the responsible executive agencies.

2. To provide appropriate facilities for hearings of committees of the Senate at which restricted data or other classified information is to be presented.

3. To establish and operate a central repository in the United States Capitol for the safeguarding of restricted data and other classified information for which such office is responsible.

In

The office became fully operational on September 20, 1977. addition to providing facilities for the storage of highly classified documents, and having administrative supervision over the Senate's classified hearing room, this office has provided substantive support to the Leadership in connection with their participation in SALT hearings. The Resolution created five positions with the following salary

I am proposing today a redistribution of these funds shown in

Exhibit 2 which would enable the Director to have an Assistant who could