Vol. 36, Number 2—February 2004

Outside Earned Income Ceiling Increases

With the January 1, 2004, increase in the basic pay for Executive Schedule employees, the ceiling on outside earned income for federal judges also increases, from $23,205 in 2003 to $23,550 in 2004. 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, 2004, the basic pay for Level II increased to $157,000.