OPM Eases Rules for Top-Dollar Critical Position Pay
Published Date: 8/26/2026
Rule
Summary
The Office of Personnel Management (OPM) is amending its regulations governing the critical position pay (CPP) authority to establish level I of the Executive Schedule as the default maximum critical pay rate, with higher rates subject to written approval by the Director of OPM. The final rule eliminates non-statutory caps and approval criteria; addresses the use of service agreements; clarifies that reductions or terminations of CPP are not adverse actions or subject to grievance or appeal rights; and clarifies the treatment of critical pay rates as basic pay. This final rule simplifies and better aligns OPM's regulations with governing law and delegated authority.
Analyzed Economic Effects
5 provisions identified: 1 benefits, 1 costs, 3 mixed.
Default Pay Cap: Exec Schedule Level I
The Office of Personnel Management sets level I of the Executive Schedule as the default maximum critical pay rate. Any critical pay rate higher than Executive Schedule Level I now requires written approval by the Director of OPM.
Elimination of Non‑Statutory Caps
The final rule removes non‑statutory caps and non‑statutory approval criteria from OPM's critical position pay regulations. This change eliminates those previously applied internal limits and criteria.
No Grievance/Appeal for CPP Cuts
The rule clarifies that reductions or terminations of critical position pay are not adverse actions and are not subject to grievance or appeal rights. If your critical pay is reduced or ended, that change is not appealable under grievance processes.
Critical Pay Counted As Basic Pay
OPM clarifies that critical pay rates are treated as basic pay. The rule makes explicit how critical pay is classified for pay purposes.
Rules Address Use of Service Agreements
The final rule addresses the use of service agreements in connection with critical position pay. The regulation updates how service agreements are handled under the critical pay authority.
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