Although the dialogue can insert basic text, to do any formatting you need to work with the field code directly. Having inserted the conditions via the dialogue, you can then select the field code in the document and press Shift-F9 to expose its contents. You should see:

{ IF{ MERGEFIELD PAYGRADE } >= "PMI01-10" "¶
EXECUTIVE BENEFITS:→→Please see the Executive Benefits Overview.¶
Such benefits include a monthly car allowance, financial planning stipend, and health club allowance.¶
¶
" "" }¶
With the field code thus displayed, you can apply the desired formatting.

__________________
Cheers,
Paul Edstein
[Fmr MS MVP - Word]