To amend title 5, United States Code, to alleviate the pay-compression problem affecting members of the Senior Executive Service and other senior-level Federal employees, and for other purposes.

Amends Federal employee provisions to increase from level IV to level II of the Executive Schedule the maximum pay rate for members of the Senior Executive Service (SES). Makes corresponding increases for other Federal senior-level positions, including contract appeals board members.

Prohibits the pay of such senior-level positions, after locality-based comparability payments, from exceeding the annual salary of the Vice President. Prohibits cash payments to the following Federal employees in a calendar year to the extent that, when added to basic pay, such amount would exceed the annual basic pay under level I of the Executive Schedule: (1) a member of the SES; (2) a member of the Federal Bureau of Investigation and Drug Enforcement Administration SES; (3) contract appeals board members; (4) certain senior-level positions; and (5) examiner-in-chief or designated examiner-in-chief in the Patent and Trademark Office, Department of Commerce.

Provides, with respect to such examiners and designated examiners: (1) an increase in the maximum pay rate to Level II of the Executive Schedule; and (2) authorized locality-based comparability payments.