Sec. 1107. Pilot program on enhanced pay authority for certain high-level management positions in the Department of Defense
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The Secretary of Defense may carry out a pilot program to assess the feasibility and advisability of using the pay authority specified in subsection
(d)to fix the rate of basic pay for positions described in subsection
(c)in order to assist the Department of Defense in attracting and retaining personnel with significant experience in high-level management of complex organizations and enterprise functions in order to lead implementation by the Department of the National Defense Strategy. The pilot program may be carried out only with approval as follows: Approval of the Deputy Secretary of Defense, in the case of a position not under the authority, direction, and control of an Under Secretary of Defense and not under the authority, direction, and control of the Under Secretary of a military department. Approval of the applicable Under Secretary of Defense, in the case of a position under the authority, direction, and control of an Under Secretary of Defense. Approval of the Under Secretary or an Assistant Secretary of the military department concerned, in the case of a position in a military department. The positions described in this subsection are positions that require expertise of an extremely high level in innovative leadership and management of enterprise-wide business operations, including financial management, health care, supply chain and logistics, information technology, real property stewardship, and human resources, across a large and complex organization. The pay authority specified in this subsection is authority as follows: Authority to fix the rate of basic pay for a position at a rate not to exceed 150 percent of the rate of basic pay payable for level I of the Executive Schedule, upon the approval of the applicable official under subsection (b). Authority to fix the rate of basic pay for a position at a rate in excess of 150 percent of the rate of basic pay payable for level I of the Executive Schedule, upon the approval of the Secretary of Defense. The authority in subsection
(a)may be used only to the extent necessary to competitively recruit or retain individuals exceptionally well qualified for positions described in subsection (c). The authority in subsection
(a)may not be used with respect to— more than 10 positions in the Office of the Secretary of Defense and components of the Department of Defense other than the military departments at any one time; and more than five positions in each military department at any one time. The authority in subsection
(a)may be used only for positions having terms less than five years. An individual may not be appointed to a position pursuant to the authority provided by subsection
(a)if the individual separated or retired from Federal civil service or service as a commissioned officer of an Armed Force on a date that is less than five years before the date of such appointment of the individual. The authority to fix rates of basic pay for a position under this section shall terminate on October 1, 2025. Nothing in paragraph
(1)shall be construed to prohibit the payment after October 1, 2025, of basic pay at rates fixed under this section before that date for positions whose terms continue after that date.