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Under section 147(c) of the Act, an agency may grant a basic pay increase to an SES member upon voluntary or involuntary reassignment only if the change of position results in a substantial increase in responsibility and consistent with any other applicable statutory and regulatory requirements. For example, such a pay increase would be subject to the 12-month restriction at 5 CFR 534.404(c). Therefore, when such an increase is granted within 12 months of the senior executive's most recent pay increase, it would require an exception under 5 CFR 534.404(c)(4)(ii) in addition to the exception under section 147(c) of the Act. Once granted, the pay adjustment would initiate a new 12-month restriction. If more than 12 months have passed since the senior executive's last basic pay adjustment, the agency may determine whether a pay increase is justified under section 147(c) under such procedures as the agency head may establish. The procedures should include, as appropriate, review by an official at a higher level than the agency official otherwise authorized to take the pay action and must ensure verification and objective comparison of the positions' relative responsibilities.
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