Recommendations This Commission believes, as its predecessor did, that the existing compression between Levels in the Executive Schedule is both unreasonable and demotivating. Only 5 or 6 percentage points, for example, separate the salaries of Levels II, III, IV,and V. By any normal standard, the responsibility differential between Levels in the Executive Schedule is substantially greater than these percentages indicate. Furthermore, there are changes within the Executive Schedule itself that should be made. The value of many jobs has been altered by changing national priorities and leadership needs, hence their value relationships should be readjusted. However, the Commission does not believe this is an appropriate time to make the substantial salary increases needed to effect these adjustments. While relatively few in number, such pay boosts would be coming during a period of sharply rising living costs, and would be difficult for the public to understand. Furthermore, as leaders of the Federal Government, officials of the Executive, Legislative and Judicial branches should set an unmistakable example for all of us. These are powerful arguments, in our view, for recommending both moderation and uniformity in salary change at this time. Executives in industry, state and local governments have had their compensation increased approximately 30 percent in the 5-year period under review. And, as has been noted, compounding the Phase II 5.5 percent "Guideline" for the period equals 30.7 percent. Because of our decision to keep salary changes within the Phase II "Guideline", 30 percent marks the upper limit of a general pay increase considered by the Commission this year. Indeed, a majority of the Commissioners would have voted for a 30 percent increase had it not been for our expectation that a biennial Commission (Recommendation No. 3) would be established this year. Such action by the Congress would sharply reduce the risk of compression, and permit another review of the Executive Schedule within 2 years. 1. Increase salaries in the Executive Schedule to equal the 5-year cost of living advance. In view of the obvious need for moderation implicit in the present economic environment, however, the Commission decided to limit its salary increase recommendation to the rise in the cost of living. It appeared to us that simple equity required the restoration of the lost purchasing power of these public servants. Anything less than this amount would mean continued compression among career employees almost from the day the increase became effective. For example, a 20-percent increase would raise Level V to $43,200 on January 1, 1974, at which time Grade 18 would be $44,025 on the basis of Commission forecasts shown in the Table on page 17. We regard a 20-percent pay increase as too small to be realistic. . The Commission recommends a 25 percent salary increase to restore the purchasing power of Executive Levels II, III, IV and V and equivalent positions in the Legislative and Judicial branches. We recommend a smaller percentage increase for Cabinet Secretaries, the Chief Justice of the Supreme Court and Associate Justices, but a dollar increase that approximately maintains the present dollar relationship of these positions with the rest of the Executive Schedule. The reason for the smaller percentage increase recommended for Secretaries and Justices is to restore what this Commission and its predecessor considered a more reasonable value relationship between these positions and the rest of the Executive Schedule. The previous Commission, for example, recommended a salary of $60,000 for Level I and $50,000 for Level II. The recommended 71-percent increase for Level I was left unchanged but the President reduced the recommendation for Level II to $42,500-a 42-percent increase. This Commission believes a $10,000 increase for the Secretaries and Justices is equitable in view of the unusually large pay raise they received 4 years ago. The Commission is sincerely concerned about the current level of compensation paid Federal judges. They are career employees with little opportunity to supplement their judicial salaries. During the past 4 years increases in the cost of living without compensating salary increases have intensified the economic pressures and financial sacrifices required for judicial service. Judges are recruited from a well-paid profession and the difficulty of attracting outstanding lawyers to the Federal bench and retaining them is increasing as judicial compensation falls further behind that of practicing lawyers. Accordingly, should either the President or the Congress decide to modify or reject the salary rate we recommend for Members of Congress, we earnestly urge that our recommendations for the salaries of Federal judges (and of officials of the Executive branch as well) be approved. The 1970 law creating the United States Postal Service added members of its Board of Governors to the list of positions for which this Commission is to make salary recommendations. At that time, their compensation was set at $10,000 plus $300 for each Board meeting attended, not to exceed 30 meetings a year. The Postal Service is still in a developmental stage as a separate corporation. The Commission believes the current compensation of the Board is reasonable under the present circumstances. The new Executive Schedule would compare as follows with the present Schedule: On this basis, the cost of the recoinmended adjustment for the three branches would be $25 million annually. The specific salaries we recommend for officials included in the Executive, Legislative and Judicial branches of the Federal Government appear below and continue on next page. Executive Salary Recommendations Executive Branch Heads of Departments, Level I, $70,000 Under Secretaries and other Level III positions $50,000 Senators, Representatives, and the Resident Commissioner from The Comptroller General $53,000 The Assistant Comptroller General $50,000 The Public Printer, Librarian of Congress, Architect of the Capitol, and General Counsel of the General Accounting Office $47,000 The Deputy Public Printer, Deputy Librarian of Congress, and Assistant Architect of the Capitol $45,000 Judicial Branch The Chief Justice of the United States $72,500 Judges, Circuit Courts, Court of Claims, Court of Customs and Judges, District Courts, Customs Court, Tax Court of the Commissioners, Court of Claims $45,000 Deputy Director, Administrative Office of the United States Referees in Bankruptcy-full time-a maximum of $45,000 United States Postal Service Members of the Board of Governors-$10,000 (no increase) 2. Add Top Legislative Officers to the Commission's Jurisdiction. The Commission is not now responsible for recommending salaries paid the Vice President, the President Pro Tempore, the Speaker, the Majority and Minority Leaders. However, since these positions are, in fact, at the top of the official structure of the Federal Government, real inequity would result if they were not moved up in consonance with our recommendations. Since the Commission must take these positions into account in its deliberations in any event, we recommend that they be included in the Commission's responsibility in the future. 3. Establish a Biennial Commission. We recognize the proposed 25-percent salary increase will mean a renewal of compression at the GS-18 level very soon after the change becomes effective. Furthermore, the Commission believes renewed compression would have the effect of further undermining the credibility of the principles of "equal pay for equal work" and annual ulary adjustments established by the Congress. In view of the need for highly qualified talent in the "Supergrades" to offset the effect. • Public Law 92-428 (September 21, 1972) provides that the pay of part-time magistrates be not less than $100 a year, and not more than that of part-time referees or $15,000 whichever is less. |