3802.1 The compensation provisions of Chapter 11 of these regulations are applicable to all positions in the Management Supervisory Service.

3801.2 As applicable, individuals appointed to the Management Supervisory Service shall be paid from either:

1. (a) The Management Supervisory Rate Schedule, the symbol for which is MW, which is the hourly rate schedule applicable to Management Supervisory Service employees who are paid under the Wage Service Rate System established in Chapter 11 of these regulations; or
2. (b) The Management Supervisory Service Pay Schedule (“MS Schedule”), the symbol for which is MS, which is the annual rate schedule applicable to Management Supervisory Service employees who are paid under the District Service Salary System established in Chapter 11 of these regulations.

3802.3 The MS Schedule is divided into grade levels 11 through 16 and consists of an open range with no steps, only a “minimum”, “midpoint,” and “maximum” as reference points of the range for each grade level.

3802.4 The MS Schedule provides a varying, pay-for-performance system for Management Supervisory Service employees paid from it. Some of the features of a merit-based pay plan such as the new MS Schedule are:

1. (a) Merit pay or pay-for-performance systems provide the flexibility to:
2. (1) Combine merit or performance-based increases with what is commonly known as a “cost-of-living adjustments” or “market adjustments;” or
3. (2) Base the total salary increase the employee receives solely on merit (performance).
4. (b) Base-pay increases vary in direct relationship to each employee’s performance level;
5. (c) The system differentiates between the various levels of performance and rewards employees accordingly through additional compensation;
6. (d) The success of the system depends on accurate and realistic performance evaluations by supervisors; and
7. (e) The system provides flexibility for varying budget constraints and revenues.

3802.5 Each personnel authority, in consultation with the Office of the Chief Financial Officer, shall:

1. (a) Determine the percentage of the performance-based or merit pay increase, if any, for agency Management Supervisory Service employees who are paid under the MS Schedule and have received a Performance Plan for the year, and whose level of competence and job performance is determined to be acceptable or better as

evidenced by a performance rating of “Meets Expectations” or higher;

(b) Determine the total percentage of the annual salary increases for these employees, if any; and

(c) Communicate the plan to agency heads every year.

3802.6 Any performance base or merit pay increase for Management Supervisory Service employees shall be approved by the Mayor (or designee) or independent personnel authority.

3802.7 An eligible Management Supervisory Service employee whose salary is at the top of the range for the grade level of the position he or she occupies and who meets the requirements in section 3802.5 (a) of this section, shall receive a one-time (1-time) lump sum payment for the calendar year in question, the amount of which shall not exceed the percentage afforded to other eligible agency employees with the same performance rating.

3802.8 The rates of pay on the Management Supervisory Service Pay Schedules shall not be used to set pay upon subsequent appointment to a position in the Career Service.