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B-156502, MAY 14, 1965

B-156502 May 14, 1965
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CIRCUMSTANCES UNDER WHICH A WAGE RATE IS RETAINED. "AN EMPLOYEE IN AN UNGRADED POSITION WHO RECEIVES A DEMOTION IS ENTITLED TO RETAIN HIS WAGE RATE ONLY UNDER THE FOLLOWING CIRCUMSTANCES: "A. "IF RERATING OF AN EMPLOYEE'S POSITION RESULTS IN A DEMOTION AND THERE WAS NO CHANGE IN THE DUTIES. HE WILL RETAIN HIS PRESENT RATE OF PAY UNTIL A NEW SCHEDULE OF WAGES ESTABLISHES A HIGHER RATE OF PAY FOR THE RATING OR AS PROVIDED IN NCPI 552.9-2. FOR THIS PURPOSE AN UNGRADED POSITION WILL BE CONSIDERED TO HAVE BEEN "RERATED WITHOUT CHANGE IN DUTIES" WHEN THE RERATING TAKES PLACE AS THE RESULT OF NEW RATING STANDARDS WHICH SAY THAT WORK FORMERLY PROPERLY PERFORMED AS PART OF RATING "X" IS NOW APPROPRIATE TO RATING "Y.

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B-156502, MAY 14, 1965

TO MR. HERBERT H. MACKNICK:

WE REFER TO OUR LETTER OF APRIL 28, 1965, TO YOU, IN WHICH WE INFORMED YOU THAT WE WOULD FURTHER ADVISE YOU CONCERNING YOUR CLAIM FOR SALARY RETENTION UNDER SECTION 552.9 OF THE NAVY CIVILIAN PERSONNEL INSTRUCTIONS.

THAT SECTION PROVIDES IN PART AS FOLLOWS:

"9-1. CIRCUMSTANCES UNDER WHICH A WAGE RATE IS RETAINED.

"AN EMPLOYEE IN AN UNGRADED POSITION WHO RECEIVES A DEMOTION IS ENTITLED TO RETAIN HIS WAGE RATE ONLY UNDER THE FOLLOWING CIRCUMSTANCES:

"A. RERATING WITHOUT CHANGE IN DUTIES.

"IF RERATING OF AN EMPLOYEE'S POSITION RESULTS IN A DEMOTION AND THERE WAS NO CHANGE IN THE DUTIES, HE WILL RETAIN HIS PRESENT RATE OF PAY UNTIL A NEW SCHEDULE OF WAGES ESTABLISHES A HIGHER RATE OF PAY FOR THE RATING OR AS PROVIDED IN NCPI 552.9-2. FOR THIS PURPOSE AN UNGRADED POSITION WILL BE CONSIDERED TO HAVE BEEN "RERATED WITHOUT CHANGE IN DUTIES" WHEN THE RERATING TAKES PLACE AS THE RESULT OF NEW RATING STANDARDS WHICH SAY THAT WORK FORMERLY PROPERLY PERFORMED AS PART OF RATING "X" IS NOW APPROPRIATE TO RATING "Y," OR WHEN THE RERATING IS REQUIRED TO CORRECT A PREVIOUS RATING ERROR. IT WILL BE NOTED THAT THIS DEFINITION PARALLELS THAT OF "RECLASSIFICATION" AS IT APPLIES TO GRADED POSITIONS. * * *"

THE QUOTED REGULATIONS WERE SUPERSEDED BY SECNAV NOTICE 12552, DATED MARCH 22, 1965, EFFECTIVE APRIL 1, 1965. HOWEVER, THE OFFICE OF INDUSTRIAL RELATIONS, DEPARTMENT OF THE NAVY, REPORTS THAT YOU WERE DEMOTED FROM CHIEF QUARTERMAN MAINTENANCE TO QUARTERMAN MAINTENANCE, EFFECTIVE DECEMBER 6, 1964, IN A REDUCTION IN FORCE CAUSED BY A REORGANIZATION.

THE BROADER REGULATIONS APPLICABLE TO UNGRADED EMPLOYEES PROMULGATED BY SECNAV NOTICE, EFFECTIVE APRIL 1, 1965, LAWFULLY COULD BE PROSPECTIVELY EFFECTIVE ONLY, AND, THEREFORE, COULD NOT APPLY TO YOUR DEMOTION ON DECEMBER 6, 1964. OUR DECISION OF FEBRUARY 15, 1965, B 155939, TO WHICH YOU REFER, RECOGNIZED A BASIS EXISTS UNDER PRESENT LAW FOR THE MILITARY DEPARTMENTS TO PROVIDE FOR SALARY RETENTION BUT DID NOT AND COULD NOT PROPERLY AUTHORIZE RETROACTIVELY EFFECTIVE AMENDMENTS TO EXISTING REGULATIONS. SECTION 552.9 COULD HAVE COVERED YOUR CASE HAD IT OTHERWISE FALLEN WITHIN THE PURVIEW OF THAT SECTION. HOWEVER, THE DEPARTMENT OF THE NAVY HAS DETERMINED THAT YOU WERE NOT ENTITLED TO SALARY RETENTION BECAUSE YOUR DEMOTION DID NOT RESULT FROM ERROR OR A RERATING OF YOUR FORMER POSITION, BUT RATHER BECAUSE OF A REDUCTION IN FORCE CAUSED BY A REORGANIZATION.

UNDER THE CIRCUMSTANCES, WE MUST CONCLUDE THAT YOU ARE NOT ENTITLED TO SALARY RETENTION UNDER THE APPLICABLE REGULATIONS.

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