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February 2007

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This article is in the news archives --- for current news go to the Third Branch News.

 

Outside Earned Income Ceiling For FY 2007


Even though at the end of January federal judges were still waiting for a cost-of-living increase in 2007, the ceiling on outside earned income went up. That’s because the outside earned income ceiling is linked to a salary level in the executive branch. With the January 1, 2007, increase in basic pay for Executive Schedule employees, the ceiling on outside earned income for federal judges increased from $24,780 to $25,200. The ceiling applies only to outside earnings and not to investment income, royalties, pensions, and similar income sources that are specifically excluded by regulation.

The Ethics Reform Act prohibits high-ranking government officials from having outside earned income exceeding "15 percent of the annual rate of basic pay for Level II of the Executive Schedule." Effective January 1, 2007, the basic pay for Level II increased to $168,000.