2nd lower does translate to a lower CEP at the start

starting pay will also be lower

the ministries/stat boards that take in 2nd lower are also of a "lower tier" and the job scope tend to be on the operations side rather than policy related work.

good points: operations, closer to industry, easier to network, more relevant experience
bad points: less opportunities to see and interact with the perm secs, ministers etc, which is vital if u want to climb civil service ladder.

on the point of CEP and performance appraisal, civil service have guidelines which ur superiors will use to in appraising you. it is very cumbersome for them to deviate from the guideline (writing their report and putting their names on the line for u). some other forumners indicated there's also a quota system so every yr only so many people can be graded an A performer, or increase their CEP.

if ur goal is to be a top civil servant (perm sec level), go into private sector first. get some years experience, a very good track record and come in mid-career with a higher CEP or even directly into the AO. civil service will always try to match last drawn pay.

if u like the job scope of that particular ministry/stat board, by all means pursue your passion. i'm a 2nd upper going into a ministry filled with overseas scholars and local 1:1s, i know i'll be a farmer there. but it's the nature of the work that appeals to me.

if u just want a stable job, 9 to 5. choose the ministry/stat board carefully. and that's the best place to be. stay as an asst director from 30-35, then promote to DD or D for last 5 years then retire. why not?

it all depends on what you want =) and all the best in job search!