1. SES Performance-Based Pay System Three steps to USDA implementation and change: 1. Convert all senior executives to new pay for performance system 2. Develop a new USDA SES Performance Management System/Plan 3. Submit and obtain certification of new SES Performance Management Plan from the Office of Personnel Management (OPM) and Office of Management and Budget (OMB)

2. Step 1 - Conversion to New SES Pay Range  Conversion Date: January 11, 2004  Conversion Rate: Basic pay plus locality pay in effect immediately prior to January 11, 2004 converts to new SES basic pay rate.  Effecting Change: Each agency will prepare personnel actions to effect and document pay change.

3. Step 2 – Develop an SES Performance Management System The Secretary will appoint a team of senior executives to:  Prepare initial design  Work with OPM and OMB  Obtain feedback from internal review groups  Develop the final package for approval by the Secretary

4. Step 3 – Plan Submission  Submission of USDA’s SES Performance Management Plan for review and certification by Office of Personnel Management and Office of Management and Budget

5. Website Information SES Pay Reform and Performance Management System updates may be accessed at: http://www.usda.gov/da/ERSD.html