The president issued an executive order last week implementing the 2-year pay freeze enacted in the “Continuing Appropriations and Surface Transportation Act, 2011 (H.R. 3082).  The freeze applies to federal pay schedules set by statute.  The executive order implements the pay freeze for these pay schedules, but also expands the freeze to include systems for which pay is set by administrative policy, not by law.  This category covers such high-paying positions as certain medical professionals, lawyers, judges, and auditors.  In addition, the order freezes salaries for all senior executives and senior level employees during the 2-year period.  According to a memorandum accompanying the order, the President expanded the freeze “to ensure consistent treatment of executive branch employees and to promote the fiscal purposes” of his original freeze proposal.  A decision has not been announced as to whether the freeze will apply to employees whose pay is set by collective bargaining agreements.  Agencies will continue to pay within-grade increases and bonuses, but, according to the memorandum, bonus pools will be lower.