38 U.S.C. § 7431 — Pay
submitted 22 years ago by Pub. L. 108-445 to r/title-38-VETERANS-BENEFITS · 2,413 words · no verdicts yet
Pay for VA physicians, podiatrists, optometrists, and dentists has base, market, and performance parts. The Secretary sets and reviews these amounts, reports detailed market-pay data to Congress, and applies the section’s total-pay limits and waiver rules.
(a) Elements of pay: Pay for Veterans Health Administration physicians, podiatrists, optometrists, and dentists consists of base pay under subsection (b), market pay under subsection (c), and performance pay under subsection (d).
(b) Base pay: Each covered professional receives base pay under the 15-step Physician, Podiatrist, and Dentist Base and Longevity Pay Schedule. The step is based on total VHA service: 2 years or less is step 1; more than 2 through 4 is step 2; each following two-year range advances one step through more than 28 years, which is step 15. When basic-pay rates rise under section 5303 of title 5, the Secretary* must raise these rates by the same percentage. The non-foreign cost-of-living allowance under section 5941 of title 5 is calculated as a percentage of base pay only.
(c) Market pay: Every covered professional is eligible. Market pay reflects recruitment and retention needs for the Secretary-defined specialty or assignment at a VA facility. The Secretary sets it annually case by case, considering experience, facility need, the relevant health-care labor market, board certifications, prior VHA experience, and other appropriate considerations. The Secretary reviews it at least every 24 months and gives written notice stating whether it will increase, decrease, or stay unchanged. It cannot be reduced while the person remains in the same position or assignment unless board certification changes or privileges are reduced. Each year the Secretary must tell each covered VHA professional about the paragraph (4)(F) criteria, evaluate the person under them, and compensate the person according to applicable assignment and pay levels, pay limits, and the extent to which the criteria are met.
(8) Within 120 days after each fiscal year, the Secretary must report to the Senate and House Veterans' Affairs Committees. The report must list every facility and specialty that evaluated pay. For each evaluation it must list the occupations evaluated, disaggregated by medical specialty and by the number of authorized full-time employees and onsite full-time employees as of the evaluation date; give the completion date; state* whether a market-pay adjustment was made for each occupation and specialty; state whether applicable employees and local labor partners were notified; and, if pay was adjusted, give separate dates for when the adjustment was implemented and became effective, plus the percentage of employees in each affected occupation and specialty. It must also list facilities that did not conduct a paragraph (5) market-pay evaluation during the preceding 18 months.
(d) Performance pay: Performance pay is based on goals and objectives set by the Secretary. The Secretary must tell each covered professional what will be measured. The amount may vary annually with achievement, but cannot exceed the lower of $15,000 or 7.5 percent of base pay plus market pay for that year. Failure to meet the goals cannot alone support an adverse personnel action.
(e) Total pay: At least every two years the Secretary sets Department*-wide minimum and maximum annual pay for physicians and for podiatrists and dentists, with possible specialty or assignment tiers, and publishes them in the Federal Register at least 60 days before they take effect. Subject to the stated exceptions, base plus market pay must stay within those limits, although specified base-pay adjustments may exceed the maximum. Total compensation* is also subject to the title 3 limit, with the listed exceptions. The Secretary may authorize the Under Secretary for Health to pay the listed awards, bonuses, allowances, incentives, and fee-basis earnings. The Secretary may waive pay limits to recruit or retain critical personnel providing direct patient care, with priority for costly positions, locations, and agreements; the specified VA offices must review each waiver, no more than 300 may be issued during the authority, and the Secretary may set waiver requirements. The Secretary must submit the required annual waiver reports, and the authority ends on the stated fiscal-year date.
(f) Treatment of pay: Pay under subsections (b) and (c) counts as pay for all purposes, including title 5 retirement benefits and other benefits.
(g) Effects of decreases: A market-pay decrease from a subsection (c) adjustment is not an adverse action. A pay reduction caused by involuntary reassignment connected with discipline makes the reassignment appealable under subchapter V.
(h) Delegation: The Secretary may delegate responsibilities under subsections (c), (d), and (e) to an appropriate Department officer or employee, except the subsection (e)(1) responsibilities.
Pay of physicians, podiatrists, optometrists, and dentists in the Veterans Health Administration shall consist of three elements as follows:
Base pay as provided for under subsection (b).
Market pay as provided for under subsection (c).
Performance pay as provided under subsection (d).
One element of pay for physicians, podiatrists, optometrists, and dentists shall be base pay. Base pay shall meet the following requirements:
Each physician, podiatrist, optometrist and dentist is entitled to base pay determined under the Physician, Podiatrist, and Dentist Base and Longevity Pay Schedule.
The Physician, Podiatrist, and Dentist Base and Longevity Pay Schedule is composed of 15 rates of base pay designated, from the lowest rate of pay to the highest rate of pay, as base pay steps 1 through 15.
The rate of base pay payable to a physician, podiatrist, optometrist or dentist is based on the total number of the years of the service of the physician, podiatrist, optometrist or dentist in the Veterans Health Administration as follows:
For a physician, podiatrist, optometrist or dentist with total service of: | The rate of base pay is the rate payable for: |
|---|---|
two years or less | step 1 |
more than 2 years and not more than 4 years | step 2 |
more than 4 years and not more than 6 years | step 3 |
more than 6 years and not more than 8 years | step 4 |
more than 8 years and not more than 10 years | step 5 |
more than 10 years and not more than 12 years | step 6 |
more than 12 years and not more than 14 years | step 7 |
more than 14 years and not more than 16 years | step 8 |
more than 16 years and not more than 18 years | step 9 |
more than 18 years and not more than 20 years | step 10 |
more than 20 years and not more than 22 years | step 11 |
more than 22 years and not more than 24 years | step 12 |
more than 24 years and not more than 26 years | step 13 |
more than 26 years and not more than 28 years | step 14 |
more than 28 years | step 15. |
At the same time as rates of basic pay are increased for a year under section 5303 of title 5, the Secretary* shall increase the amount of base pay payable under this subsection for that year by a percentage equal to the percentage by which rates of basic pay are increased under such section for that year.
The non-foreign cost of living adjustment allowance authorized under section 5941 of title 5 for physicians, podiatrists, optometrists, and dentists whose pay is set under this section shall be determined as a percentage of base pay only.
One element of pay for physicians, podiatrists, optometrists, and dentists shall be market pay. Market pay shall meet the following requirements:
Each physician, podiatrist, optometrist and dentist is eligible for market pay.
Market pay shall consist of pay intended to reflect the recruitment and retention needs for the specialty or assignment (as defined by the Secretary) of a particular physician, podiatrist, optometrist or dentist in a facility of the Department* of Veterans Affairs.
The annual amount of the market pay payable to a physician, podiatrist, optometrist or dentist shall be determined by the Secretary on a case-by-case basis.
The determination of the amount of market pay of a physician, podiatrist, optometrist or dentist shall take into account—
the level of experience of the physician, podiatrist, optometrist or dentist in the specialty or assignment of the physician, podiatrist, optometrist or dentist;
the need for the specialty or assignment of the physician, podiatrist, optometrist or dentist at the medical facility of the Department concerned;
the health care labor market for the specialty or assignment of the physician, podiatrist, optometrist or dentist, which may cover any geographic area the Secretary considers appropriate for the specialty or assignment;
the board certifications, if any, of the physician, podiatrist, optometrist or dentist;
the prior experience, if any, of the physician, podiatrist, optometrist or dentist as an employee of the Veterans Health Administration; and
such other considerations as the Secretary considers appropriate.
The amount of market pay of a physician, podiatrist, optometrist or dentist shall be evaluated by the Secretary not less often than once every 24 months. The amount of market pay may be adjusted as the result of an evaluation under this paragraph. A physician, podiatrist, optometrist or dentist whose market pay is evaluated under this paragraph shall receive written notice of the results of such evaluation in accordance with procedures prescribed under section 7433 of this title. Such a notice shall include a statement of whether the market pay will increase, decrease, or remain unchanged following such evaluation.
No adjustment of the amount of market pay of a physician, podiatrist, optometrist or dentist under paragraph (5) may result in a reduction of the amount of market pay of the physician, podiatrist, optometrist or dentist while in the same position or assignment at the medical facility of the Department concerned, unless there is a change in board certification or reduction of privileges.
The Secretary shall ensure that each physician, podiatrist, optometrist, and dentist in the Veterans Health Administration is—
advised, on an annual basis, of the criteria described in subparagraph (F) of paragraph (4);
evaluated in accordance with such criteria; and
compensated in accordance with—
applicable assignment and pay levels, subject to relevant pay limitations; and
the extent to which such criteria are met.
Not later than 120 days after the end of each fiscal year, the Secretary shall submit to the Committees on Veterans’ Affairs of the Senate and the House of Representatives a report that includes the following:
A list of each facility and specialty that conducted an evaluation of pay during the period covered by the report.
For each evaluation described in subparagraph (A)—
a list of occupations for which pay was evaluated, disaggregated by medical specialty, number of authorized full-time employees, and onsite full-time employees as of the date of the evaluation;
the date such evaluation was completed;
whether a market pay adjustment was made following the evaluation per each occupation and specialty evaluated;
whether applicable employees were notified of such evaluation;
whether local labor partners were notified of such evaluation; and
in the case of an evaluation that resulted in an adjustment of pay—
the date such adjustment—
was implemented; and
became effective; and
the percentage of employees of each occupation and specialty for which pay was adjusted pursuant to such evaluation.
A list of facilities of the Department that have not conducted an evaluation of market pay, pursuant to paragraph (5), during the 18-month-period that precedes the date of the submission of such report.
One element of pay for physicians, podiatrists, optometrists, and dentists shall be performance pay.
Performance pay shall be paid to a physician, podiatrist, optometrist or dentist on the basis of the physician’s or dentist’s achievement of specific goals and performance objectives prescribed by the Secretary.
The Secretary shall ensure that each physician, podiatrist, optometrist and dentist of the Department is advised of the specific goals or objectives that are to be measured by the Secretary in determining the eligibility of that physician, podiatrist, optometrist or dentist for performance pay.
The amount of the performance pay payable to a physician, podiatrist, optometrist or dentist may vary annually on the basis of individual achievement or attainment of the goals or objectives applicable to the physician, podiatrist, optometrist or dentist under paragraph (2).
The amount of performance pay payable to a physician, podiatrist, optometrist or dentist in a fiscal year shall be determined in accordance with regulations prescribed by the Secretary, but may not exceed the lower of—
$15,000; or
the amount equal to 7.5 percent of the sum of the base pay and the market pay payable to such physician, podiatrist, optometrist or dentist in that fiscal year.
A failure to meet goals or objectives applicable to a physician, podiatrist, optometrist or dentist under paragraph (2) may not be the sole basis for an adverse personnel action against that physician, podiatrist, optometrist or dentist.
Not less often than once every two years, the Secretary shall prescribe for Department-wide applicability the minimum and maximum amounts of annual pay that may be paid under this section to physicians and the minimum and maximum amounts of annual pay that may be paid under this section to podiatrists and dentists.
The Secretary may prescribe for Department-wide applicability under this paragraph separate minimum and maximum amounts of pay for a specialty or assignment. If the Secretary prescribes separate minimum and maximum amounts for a specialty or assignment, the Secretary may establish up to four tiers of minimum and maximum amounts for such specialty or assignment and prescribe for each tier a minimum amount and a maximum amount that the Secretary determines appropriate for the professional responsibilities, professional achievements, and administrative duties of the physicians, podiatrists, optometrists, or dentists (as the case may be) whose pay is set within that tier.
Amounts prescribed under this paragraph shall be published in the Federal Register, and shall not take effect until at least 60 days after the date of publication.
Except as provided in paragraph (3) and subject to paragraph (4), the sum of the total amount of the annual rate of base pay payable to a physician, podiatrist, optometrist or dentist under subsection (b) and the market pay determined for the physician, podiatrist, optometrist or dentist under subsection (c) may not be less than the minimum amount, nor more than the maximum amount, applicable to specialty or assignment of the physician, podiatrist, optometrist or dentist under paragraph (1).
The sum of the total amount of the annual rate of base pay payable to a physician, podiatrist, optometrist or dentist under subsection (b) and the market pay determined for the physician, podiatrist, optometrist or dentist under subsection (c) may exceed the maximum amount applicable to the specialty or assignment of the physician, podiatrist, optometrist or dentist under paragraph (1) as a result of an adjustment under paragraph (3) or (4) of subsection (b).
Except as provided in sections 7404A(c) and 7410(a)(2) of this title, in no case may the total amount of compensation* paid to a physician, podiatrist, optometrist or dentist under this title in any year exceed the amount of annual compensation (excluding expenses) specified in section 102 of title 3.
Notwithstanding any compensation or pay limitations under this title or title 5, the Secretary may authorize the Under Secretary for Health to pay physicians, podiatrists, optometrists, and dentists—
awards authorized under this title;
advance payments, recruitment or relocation bonuses, and retention allowances authorized under section 7410(a) of this title or as otherwise provided by law;
incentives or bonuses under section 706 of this title or as otherwise provided by law; and
earnings from fee-basis appointments under section 7405(a)(2) of this title.
The Secretary may waive any pay limitation described in this section (including tier limitations) that the Secretary determines necessary for the recruitment or retention of critical health care personnel whom the Secretary determines would provide direct patient care.
Priority for such waivers shall be given for positions, locations, and care provided through agreements that are costly to the Department.
The Chief Human Capital Officer of the Department, the Chief Financial Officer of the Department, and the Office of the General Counsel of the Department shall review any waiver issued under subparagraph (A).
During the period the authority under subparagraph (A) is effective, the Secretary may not issue more than 300 waivers under such subparagraph.
The Secretary may prescribe requirements, limitations, and other considerations for waivers under such subparagraph.
Not later than 180 days after the date of the enactment of the Senator Elizabeth Dole 21st Century Veterans Healthcare and Benefits Improvement Act, and annually thereafter, the Secretary shall submit to the Committees on Veterans’ Affairs of the Senate and the House of Representatives a report that includes—
any updates to the requirements, limitations, and considerations prescribed under subparagraph (B) during the period covered by the report;
a description of the findings of each review, if any, conducted pursuant to subparagraph (C);
a description of each waiver under subparagraph (A) in effect as of the date of the submission of the report, including the—
duty location, position, specialty, market and performance considerations for the waiver; and
impact, if any, of the waiver on care furnished by the Department pursuant to an agreement regarding the geographic area; and
a list of any separation actions during the period covered by the report with respect to a position for which a waiver under subparagraph (A) is in effect.
The authority of the Secretary under subparagraph (A) shall terminate on the last day of the third full fiscal year following the date of the enactment of the Senator Elizabeth Dole 21st Century Veterans Healthcare and Benefits Improvement Act.
Pay under subsections (b) and (c) of this section shall be considered pay for all purposes, including retirement benefits under chapters 83 and 84 of title 5 and other benefits.
A decrease in pay of a physician, podiatrist, optometrist or dentist resulting from an adjustment in the amount of market pay of the physician, podiatrist, optometrist or dentist under subsection (c) shall not be treated as an adverse action.
If the pay of a physician, podiatrist, optometrist or dentist is reduced under this subchapter as a result of an involuntary reassignment in connection with a disciplinary action taken against the physician, podiatrist, optometrist or dentist, the involuntary reassignment shall be subject to appeal under subchapter V of this chapter.
The Secretary may delegate to an appropriate officer or employee of the Department any responsibility of the Secretary under subsection (c), (d), or (e) except for the responsibilities of the Secretary under subsection (e)(1).
Source credit: (Added Pub. L. 108–445, § 3(b), Dec. 3, 2004, 118 Stat. 2636; amended Pub. L. 111–163, title VI, § 601(f), May 5, 2010, 124 Stat. 1170; Pub. L. 114–315, title VI, § 615, Dec. 16, 2016, 130 Stat. 1577; Pub. L. 116–12, § 1(b)(1), Apr. 8, 2019, 133 Stat. 845; Pub. L. 117–168, title IX, § 906(e), Aug. 10, 2022, 136 Stat. 1813; Pub. L. 118–210, title I, § 142(a)(1), Jan. 2, 2025, 138 Stat. 2744.)
- 2004Enacted · Pub. L. 108-445 · 118 Stat. 2636
- 2010Amended · Pub. L. 111-163 · 124 Stat. 1170
- 2016Amended · Pub. L. 114-315 · 130 Stat. 1577
- 2019Amended · Pub. L. 116-12 · 133 Stat. 845
- 2022Amended · Pub. L. 117-168 · 136 Stat. 1813
- 2025Amended · Pub. L. 118-210 · 138 Stat. 2744
A history note hasn’t been published yet. The record shows enactment by Pub. L. 108-445 on 2004-12-03.
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