B-5212, AUGUST 22, 1939, 19 COMP. GEN. 237

B-5212, AUGUST 22, 1939, 19 COMP. GEN. 237

COMPENSATION AND CLASSIFICATION CHANGES - TRANSFERRED REORGANIZATION PLAN PERSONNEL - FEDERAL SECURITY AGENCY ALL OFFICERS AND EMPLOYEES OF THE FEDERAL SECURITY AGENCY, INCLUDING THOSE OF THE CIVILIAN CONSERVATION CORPS AND THE SOCIAL SECURITY BOARD, WHO WERE IN THE SERVICE ON JUNE 30, 1939, IN ANY OF THE AGENCIES THE FUNCTIONS OF WHICH WERE CONSOLIDATED UNDER THE FEDERAL SECURITY AGENCY, MUST BE REGARDED AS TRANSFERRED UNDER THE REORGANIZATION ACT OF 1939, 53 STAT. 561, WITHIN THE PURVIEW OF SECTION 10 (B) OF THE SAID ACT PROHIBITING, EXCEPT AS MAY BE PROVIDED OTHERWISE, FOR ONE YEAR, OR UNTIL JULY 1, 1940, ANY CHANGE IN CLASSIFICATION OR COMPENSATION OF PERSONNEL SO TRANSFERRED, AND SECTION 211 OF REORGANIZATION PLAN NO. I, REGARDING THE DISPOSITION TO BE MADE OF EXCESS PERSONNEL. THE VARIOUS PAY STATUTES APPLICABLE TO COMMISSIONED OFFICERS OF THE PUBLIC HEALTH SERVICE WHICH WAS TRANSFERRED TO THE FEDERAL SECURITY AGENCY BY REORGANIZATION PLAN NO. I, AND THE ADMINISTRATIVE REGULATIONS ISSUED PURSUANT THERETO WHICH HAVE THE FORCE AND EFFECT OF LAW, WHICH PRESCRIBE RATES OF PAY AND ALLOWANCES BASED ON RANK, LENGTH OF SERVICE, ETC., CONTINUE TO OPERATE BECAUSE OF SECTION 8 (C) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563, WHICH PROVIDES THAT ALL LAWS RELATING TO ANY AGENCY OR FUNCTION TRANSFERRED TO, OR CONSOLIDATED WITH, ANY OTHER AGENCY UNDER SAID ACT, SHALL, INSOFAR AS SUCH LAWS ARE NOT INAPPLICABLE, REMAIN IN FULL FORCE AND EFFECT, AND THE PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE SAID ACT ARE FOR APPLICATION ONLY AS AFFECTED BY THE PROVISIONS OF THE SAID SECTION 8 (C). COMMISSIONED OFFICERS IN THE REGULAR CORPS OF THE PUBLIC HEALTH SERVICE WHOSE PROMOTIONS IN RANK ARE DUE DURING THE FISCAL YEAR 1940 MAY BE PROMOTED IN GRADE, AND PAID THE PAY AND ALLOWANCES OF THE HIGHER GRADE, NOTWITHSTANDING THE PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563, IF THE PROMOTIONS AND PAY INCREASES ARE THOSE AUTHORIZED UNDER THE LAWS AND REGULATIONS OF THE PUBLIC HEALTH SERVICE THE PROVISIONS OF WHICH ARE CONTINUED IN EFFECT BY SECTION 8 (C) OF THE SAID ACT. THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563, ARE NOT APPLICABLE TO AUTOMATIC INCREASES IN PAY FOR LENGTH OF SERVICE ACCRUING TO REGULAR AND RESERVE OFFICERS OF THE PUBLIC HEALTH SERVICE IF SAID INCREASES ARE THOSE AUTHORIZED UNDER THE LAWS AND REGULATIONS OF THE PUBLIC HEALTH SERVICE THE PROVISIONS OF WHICH ARE CONTINUED IN EFFECT BY SECTION 8 (C) OF THE SAID ACT. SINCE NEITHER THE APPLICABLE STATUTES NOR ADMINISTRATIVE REGULATIONS APPEAR TO PRESCRIBE RULES FOR TERMINATING COMMISSIONS IN A LOWER GRADE, AND RECOMMISSIONING IN A HIGHER RANK, RESERVE OFFICERS OF THE PUBLIC HEALTH SERVICE, THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION REORGANIZATION ACT OF 1939, 53 STAT. 563, ARE FOR APPLICATION IN SAID RESPECT TO SUCH OFFICERS. THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563, DO NOT OPERATE TO DENY A PUBLIC HEALTH SERVICE OFFICER, ASSIGNED TO LEPROSY DUTY, THE 50 PERCENT INCREASE IN PAY PROVIDED BY LAW FOR SUCH DUTY. THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 43 STAT. 563, DO NOT OPERATE TO DENY A PUBLIC HEALTH SERVICE OFFICER INCREASED ALLOWANCE--- SUCH AS RENTAL ALLOWANCE--- WHERE THERE IS A CHANGE IN THE OFFICER'S DEPENDENCY STATUS, OR A VACATING OF GOVERNMENT OWNED OR LEASED QUARTERS, DURING THE YEAR. A PUBLIC HEALTH SERVICE OFFICER PLACED ON "WAITING ORDERS" STATUS DURING THE PERIOD OF THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563, AND WHO DOES NOT HAVE HIS GRADE CHANGED, MAY RECEIVE "WAITING ORDERS PAY" AT THE RATE AND UNDER THE CONDITIONS STATED IN THE APPLICABLE REGULATIONS. THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563, DO NOT PROHIBIT THE REDUCTION IN GRADE AND COMPENSATION OF PUBLIC HEALTH SERVICE OFFICERS FOR DISCIPLINARY REASONS. AS SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563, IS A PROHIBITION ONLY AGAINST A CHANGE IN CLASSIFICATION OR COMPENSATION DURING THE FISCAL YEAR 1940 OF AN EMPLOYEE TRANSFERRED UNDER TITLE I OF THE ACT, A PERSON WHO HAS A TEMPORARY OR EXCEPTED STATUS IN AN AGENCY TRANSFERRED BY OPERATION OF THE ACT MAY BE PROBATIONALLY APPOINTED TO A VACANT POSITION, BUT THE APPOINTMENT MUST BE TO A POSITION IN THE SAME CLASSIFICATION GRADE AS THE POSITION HELD JUNE 30, 1939, AND AT THE SAME COMPENSATION RATE HE RECEIVED ON SAID DATE, EVEN THOUGH THE RATE IS MORE OR LESS THAN THE ENTRANCE SALARY OF THE GRADE TO WHICH PROBATIONALLY APPOINTED. THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563, PROHIBIT THE FILLING, AT AN INCREASE IN SALARY AND CLASSIFICATION GRADE, OF A POSITION BECOMING VACANT DURING THE YEAR BY THE SEPARATION ACT, BY THE PROMOTION OF A PERSON WHO LIKEWISE WAS WITH THE SAME AGENCY AT THE TIME OF SAID TRANSFER, BUT FOR RECORD PURPOSES THE EMPLOYEE MAY BE ASSIGNED TO THE POSITION, PERFORM THE DUTIES THEREOF, ETC., THE CHANGE IN GRADE AND INCREASE IN COMPENSATION TO BECOME EFFECTIVE JULY 1, 1940. THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563, REQUIRE THAT IF AN EMPLOYEE IS TRANSFERRED DURING THE YEAR FROM ONE AGENCY TO ANOTHER, BOTH OF WHICH WERE CONSOLIDATED IN THE FEDERAL SECURITY AGENCY, THE TRANSFER MUST BE AT THE GRADE AND SALARY RECEIVED ON THE EFFECTIVE DATE OF THE CONSOLIDATION. THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563, DO NOT PROHIBIT A TRANSFER FROM THE FEDERAL WORKS AGENCY TO THE FEDERAL SECURITY AGENCY TO FILL A VACANCY IN A HIGHER GRADE AND ADJUSTMENT OF THE SALARY TO CONFORM TO THE NEW DUTIES UNDER THE HIGHER CLASSIFICATION. THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563, WOULD PROHIBIT THE MAKING EFFECTIVE, BOTH AS TO GRADE AND SALARY, DURING THE FISCAL YEAR 1940, OF A REALLOCATION OF A POSITION IN THE FEDERAL SECURITY AGENCY OCCUPIED AT THE TIME OF THE AGENCY'S CREATION. THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 43 STAT. 563, DO NOT PROHIBIT THE PROMOTION OF AN EMPLOYEE FROM ONE GRADE TO A HIGHER GRADE TO FILL A NEWLY CREATED POSITION, BUT THE CHANGE IN GRADE AND COMPENSATION MAY NOT BECOME EFFECTIVE UNTIL JULY 1, 1940. THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563, DO NOT PROHIBIT A SUBSTITUTION OF THE COMMUTED VALUE OF ALLOWANCES IN KIND WHERE THE ALLOWANCES IN KIND WHICH ARE PART OF THE COMPENSATION ARE DISCONTINUED UNDER PROPER ADMINISTRATIVE REGULATIONS. THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563, DO NOT PROHIBIT THE REDUCTION IN GRADE AND COMPENSATION OF CIVILIAN EMPLOYEES FOR DISCIPLINARY PURPOSES. THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563, WOULD PROHIBIT APPOINTMENTS OF EMPLOYEES, INVOLVED IN THE TRANSFER TO THE FEDERAL SECURITY AGENCY AND ON CERTIFICATION FROM THE CIVIL SERVICE COMMISSION FOR POSITIONS IN SAID AGENCY ALLOCATED TO HIGHER GRADES AND PAYING HIGHER SALARIES, TO SUCH HIGHER GRADE AND HIGHER PAYING POSITIONS DURING THE FISCAL YEAR 1940. AS THE DATE OF NOTICE OF APPROVAL OF A REALLOCATION OF A POSITION BY THE CIVIL SERVICE COMMISSION, AND NOT THE DATE OF APPROVAL OF THE QUALIFICATIONS OF THE INCUMBENT OF THE POSITION, DETERMINES THE PAY PERIOD EFFECTIVE DATE OF THE CHANGE IN CLASSIFICATION GRADE AND COMPENSATION RATE OF THE POSITION, THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563, WOULD NOT PROHIBIT THE HIGHER GRADE AND COMPENSATION CHANGE IN A CASE WHERE THE APPROVAL OF THE REALLOCATION WAS RECEIVED PRIOR TO JULY 1, 1939, NOTWITHSTANDING THE APPROVAL OF THE INCUMBENT'S QUALIFICATIONS WAS RECEIVED THEREAFTER. WHEN IN CONNECTION WITH A NUMBER OF GRADE CHANGES, BOTH UPWARD AND DOWNWARD, OF FIELD POSITIONS AND DEPARTMENTAL VACANCIES, THE ADMINISTRATIVE OFFICE ACTUALLY ISSUED BONA FIDE APPOINTMENTS EFFECTIVE JUNE 30, 1939, AND THE APPOINTMENTS BECAME EFFECTIVE ON THAT DATE BY ACTUAL ENTRANCE ON DUTY IN THE NEW POSITIONS ON OR BEFORE JUNE 30, 1939, AND THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563, REGARDED AS INAPPLICABLE TO SUCH CHANGES. THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563, ARE NOT APPLICABLE TO AN EMPLOYEE INITIALLY APPOINTED IN THE FEDERAL SECURITY AGENCY ON OR AFTER JULY 1, 1939. IF, IN CONNECTION WITH PUBLIC HEALTH SERVICE COOPERATIVE PROJECTS, THE EMPLOYEES OCCUPY FEDERAL POSITIONS THE SALARY RATES OF WHICH HAVE BEEN FIXED PURSUANT TO FEDERAL STATUTE, THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563, WOULD BE APPLICABLE AND NO CHANGE IN CLASSIFICATION GRADE OR COMPENSATION RATE MAY BE DURING THE FISCAL YEAR, BUT THE SAID PROVISIONS WOULD NOT PROHIBIT AN ADJUSTMENT IN THE PROPORTION OF FEDERAL FUNDS AND NON-FEDERAL FUNDS CONTRIBUTED TOWARD PAYMENT OF THE TOTAL SALARIES OF THE POSITIONS. IF, IN CONNECTION WITH PUBLIC HEALTH SERVICE COOPERATIVE PROJECTS, THE EMPLOYEES OCCUPY STATE, COUNTY, OR OTHER NON-FEDERAL POSITIONS, THE SALARY RATES OF WHICH HAVE NOT BEEN FIXED UNDER FEDERAL STATUTE, THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563, HAVE NO APPLICATION. CHANGES IN AMOUNTS OF TRAVELING EXPENSES PAID AS SUCH TO EMPLOYEES OCCUPYING POSITIONS ON PUBLIC HEALTH SERVICE COOPERATIVE PROJECTS AND IN NOWISE HAVING ANY BEARING UPON THE RATE OF COMPENSATION PAID, ARE NOT AFFECTED BY THE FISCAL YEAR 1940 PROHIBITORY PERSONNEL COMPENSATION AND CLASSIFICATION CHANGE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT OF 1939, 53 STAT. 563.

COMPTROLLER GENERAL BROWN TO THE FEDERAL SECURITY ADMINISTRATOR, AUGUST 22, 1939:

I HAVE YOUR LETTER OF JULY 24, 1939, AS FOLLOWS:

IN PURSUANCE OF THE REORGANIZATION ACT OF 1939 ( PUBLIC, NO. 19, 76TH CONG.), THE PRESIDENT, IN PLAN NO. I, ESTABLISHED THE FEDERAL SECURITY AGENCY, TO BE COMPOSED OF THE FOLLOWING-NAMED ORGANIZATIONS:

UNITED STATES EMPLOYMENT SERVICE, TRANSFERRED FROM THE DEPARTMENT OF LABOR AND MERGED WITH THE BUREAU OF UNEMPLOYMENT COMPENSATION, SOCIAL SECURITY BOARD;

OFFICE OF EDUCATION, TRANSFERRED FROM THE DEPARTMENT OF THE INTERIOR;

PUBLIC HEALTH SERVICE, TRANSFERRED FROM THE DEPARTMENT OF THE TREASURY;

NATIONAL YOUTH ADMINISTRATION, TRANSFERRED FROM THE WORKS PROGRESS ADMINISTRATION;

SOCIAL SECURITY BOARD;

CIVILIAN CONSERVATION CORPS.

ALL THE ABOVE-NAMED ORGANIZATIONS ARE "CONSOLIDATED" UNDER THE FEDERAL SECURITY AGENCY.

REORGANIZATION PLAN NO. II TRANSFERS TO THE FEDERAL SECURITY AGENCY THE FUNCTIONS OF THE RADIO SERVICE AND THE UNITED STATES FILM SERVICE OF THE NATIONAL EMERGENCY COUNCIL AS WELL AS CERTAIN FUNCTIONS OF THE SECRETARY OF THE TREASURY WITH RESPECT TO THE ADMINISTRATION OF THE APPROPRIATIONS FOR THE AMERICAN PRINTING HOUSE FOR THE BLIND.

THE REORGANIZATION ACT, SUPRA, CONTAINS, IN SECTION 10 (B), THE FOLLOWING LANGUAGE WITH RESPECT TO THE ADJUSTMENT OF CLASSIFICATION OR COMPENSATION DURING THE PRESENT FISCAL YEAR:

"ANY TRANSFER OF PERSONNEL UNDER THIS TITLE SHALL BE WITHOUT CHANGE IN CLASSIFICATION OR COMPENSATION, EXCEPT THAT THIS REQUIREMENT SHALL NOT OPERATE AFTER THE END OF THE FISCAL YEAR DURING WHICH THE TRANSFER IS MADE TO PREVENT THE ADJUSTMENT OF CLASSIFICATION OR COMPENSATION TO CONFORM TO THE DUTIES TO WHICH SUCH TRANSFERRED PERSONNEL MAY BE ASSIGNED.'

UNDER THE TERMS OF PUBLIC RESOLUTION NO. 20, 76TH CONGRESS, APPROVED JUNE 7, 1939, THESE REORGANIZATION PLANS BECAME EFFECTIVE JULY 1, 1939.

A QUESTION HAS ARISEN WITHIN THIS AGENCY AS TO THE FULL MEANING OF THIS LANGUAGE AND AS TO ITS EFFECT ON PERSONNEL ADMINISTRATION. THE PRINCIPAL QUESTION IS WHETHER THE FEDERAL SECURITY ADMINISTRATOR IS PROHIBITED FROM EFFECTING PERSONNEL CHANGES IN ALL THE UNITS OF THE FEDERAL SECURITY AGENCY DURING THE PRESENT FISCAL YEAR. IN THIS CONNECTION, IT WILL BE NOTED THAT THE WORD "TRANSFERRED" IS NOT USED IN PLAN NO. 1 IN CONNECTION WITH THE CIVILIAN CONSERVATION CORPS AND THE SOCIAL SECURITY BOARD. THEY, HOWEVER, ARE "CONSOLIDATED UNDER ONE AGENCY TO BE KNOWN AS THE FEDERAL SECURITY AGENCY.'

WITH RESPECT TO COMMISSIONED OFFICER ( REGULAR AND RESERVE) OF THE PUBLIC HEALTH SERVICE WHO WERE WITH THE PUBLIC HEALTH SERVICE ON THE EFFECTIVE DATE OF CONSOLIDATION:

(A) WILL SECTION 10B PERMIT THE PROMOTION IN GRADE OF COMMISSIONED OFFICERS IN THE REGULAR CORPS WHOSE PROMOTIONS IN RANK ARE DUE DURING THE FISCAL YEAR 1940?

(B) IF THE ANSWER TO (A) IS AFFIRMATIVE, MAY THE OFFICERS AFFECTED BE PAID THE PAY AND ALLOWANCES OF THE HIGHER GRADE?

(C) WILL THE PROHIBITION APPLY TO AUTOMATIC INCREASES FOR LENGTH OF SERVICE ACCRUING TO OFFICERS BOTH REGULAR AND RESERVE DURING THE FISCAL YEAR 1940?

(D) IN THE CASE OF A RESERVE OFFICER WHOM THE PUBLIC HEALTH SERVICE WISHES TO ELEVATE TO A HIGHER GRADE DURING THE FISCAL YEAR 1940--- CAN THE COMMISSION IN THE LOWER GRADE BE TERMINATED AND THE INDIVIDUAL RECOMMISSIONED IN A HIGHER RANK AS HAS BEEN THE POLICY HERETOFORE?

(E) WHENEVER DURING THE FISCAL YEAR 1940 AN OFFICER IS ASSIGNED TO DUTY AT THE LEPROSARIUM AT CARVILLE, LOUISIANA, OR THE LEPROSY INVESTIGATION STATION AT HONOLULU, T.H., WILL BE DENIED THE 50 PERCENT INCREASE IN PAY PROVIDED BY LAW FOR SUCH DUTY.

(F) WILL THE PROHIBITION APPLY IN CASES WHERE AN OFFICER'S DEPENDENCY STATUS CHANGES DURING THE YEAR? FOR INSTANCE, WHEN A SINGLE OFFICER MARRIES OR HAS A DEPENDENT MOTHER CLAIM ALLOWED DURING THE YEAR, WILL HE BE DENIED INCREASED ALLOWANCE PAY?

(G) IF AN OFFICER OCCUPYING GOVERNMENT OWNED OR LEASED QUARTERS AT THE BEGINNING OF THE FISCAL YEARS REQUIRED FOR OFFICIAL REASONS TO VACATE QUARTERS, MAY HE BE PAID THE RENTAL ALLOWANCE?

(H) AN OFFICER PLACED ON WAITING ORDERS DURING THE FISCAL YEAR 1940 WILL NOT HAVE HIS GRADE CHANGED, BUT WILL HE BE ENTITLED TO RECEIVE THE ACTIVE DUTY PAY OF HIS GRADE?

(I) MAY AN OFFICER BE REDUCED IN GRADE AND COMPENSATION FOR DISCIPLINARY REASONS?

IN THIS PARAGRAPH ARE INCLUDED QUESTIONS WHICH ARE BELIEVED TO BE OF GENERAL APPLICATION TO CIVILIAN EMPLOYEES WHO WERE WITH THE VARIOUS AGENCIES ON THE EFFECTIVE DATE OF CONSOLIDATION:

(A) CAN A PERSON WHO HAS A TEMPORARY OR EXCEPTED STATUS BE PROBATIONALLY APPOINTED TO A VACANT POSITION?

(B) IF THE ANSWER TO (A) IS IN THE AFFIRMATIVE, MUST THE SALARY RATE RECEIVED WHILE IN TEMPORARY OR EXCEPTED STATUS BE CONTINUED THROUGHOUT THE FISCAL YEAR EVEN THOUGH IT IS MORE OR LESS THAN THE ENTRANCE SALARY OF THE GRADE TO WHICH PROBATIONALLY APPOINTED?

(C) IF A POSITION BECOMES VACANT DURING THE FISCAL YEAR BY THE SEPARATION OF A PERSON WHO WAS WITH ONE OF THE AGENCIES ON THE EFFECTIVE DATE OF CONSOLIDATION, CAN THE VACANCY BE FILLED BY PROMOTION OF A PERSON WHO LIKEWISE WAS WITH THE SAME AGENCY ON THE EFFECTIVE DATE OF CONSOLIDATION, BUT IN A LOWER GRADE?

(D) IF THE ANSWER TO (C) IS IN THE AFFIRMATIVE, WILL THE INDIVIDUAL PROMOTED RECEIVE THE SALARY OF THE GRADE TO WHICH PROMOTED IF IT IS GREATER THAN THE SALARY RECEIVED BEFORE THE ADVANCE IN GRADE?

(E) IF AN EMPLOYEE IS TRANSFERRED FROM ONE AGENCY TO ANOTHER, BOTH AGENCIES BEING CONSOLIDATED WITH THE FEDERAL SECURITY AGENCY, MUST THE TRANSFER BE AT THE GRADE AND SALARY RECEIVED ON THE EFFECTIVE DATE OF CONSOLIDATION?

(F) IF AN EMPLOYEE IS TRANSFERRED FROM THE FEDERAL WORKS AGENCY TO THE FEDERAL SECURITY AGENCY TO FILL A VACANCY IN A HIGHER GRADE, MAY HIS SALARY BE ADJUSTED TO CONFORM TO HIS NEW DUTIES UNDER THE HIGHER CLASSIFICATION?

(G) IF THE CIVIL SERVICE COMMISSION DETERMINES THAT A POSITION SHOULD BE ALLOCATED TO A HIGHER GRADE, CAN THE REALLOCATION BE MADE EFFECTIVE, BOTH AS TO GRADE AND SALARY, DURING THE FISCAL YEAR 1940 IF THE POSITION WAS OCCUPIED AT THE TIME OF CONSOLIDATION?

(H) CAN AN EMPLOYEE BE PROMOTED FROM ONE GRADE TO A HIGHER GRADE TO FILL A NEWLY CREATED POSITION?

(I) IF A PERSON WHO WAS WITH ONE OF THE AGENCIES ON THE EFFECTIVE DATE OF CONSOLIDATION IS SEPARATED, CAN HE BE REINSTATED OR REEMPLOYED IN THE SAME AGENCY AT ANY TIME DURING THE FISCAL YEAR AT A HIGHER RATE OF COMPENSATION OR TO A POSITION OF HIGHER GRADE?

(J) MAY THE INDIVIDUAL CONSIDERED IN (I) BE REINSTATED IN ANOTHER AGENCY CONSOLIDATED WITH THE FEDERAL SECURITY ADMINISTRATION TO A POSITION OF HIGHER GRADE AND COMPENSATION THAN RECEIVED IN THE AGENCY FROM WHICH SEPARATED?

(K) IF THE ANSWER TO EITHER (I) OR (J) IS IN THE NEGATIVE, CAN REINSTATEMENT IN EITHER CASE BE MADE TO A LOWER GRADE AND AT A RATE OF COMPENSATION LESS THAN RECEIVED ON THE EFFECTIVE DATE OF CONSOLIDATION?

(L) IF AN EMPLOYEE WAS RECEIVING ALLOWANCES IN KIND AS PART OF COMPENSATION ON THE EFFECTIVE DATE OF CONSOLIDATION AND FOR OFFICIAL REASONS HIS ALLOWANCE STATUS IS CHANGED DURING THE FISCAL YEAR AND HE THEREAFTER DOES NOT RECEIVE ONE OR MORE OF THE ALLOWANCES IN KIND, SHALL HE BE PAID THE COMMUTED VALUE THEREOF?

(M) CAN AN EMPLOYEE BE DEMOTED IN GRADE OR REDUCED IN COMPENSATION FOR ANY CAUSE DURING THE FISCAL YEAR?

(N) IN THE BUREAU OF UNEMPLOYMENT COMPENSATION OF THE SOCIAL SECURITY BOARD A NUMBER OF EMPLOYEES ARE ON CERTIFICATION FROM THE CIVIL SERVICE COMMISSION FOR POSITIONS ALLOCATED TO HIGHER GRADES AND PAYING HIGHER SALARIES. MAY SUCH APPOINTMENTS BE MADE AT THIS TIME?

(O) IF SALARIES AND CLASSIFICATION GRADES ARE NOT TO BE CHANGED DURING THE PRESENT FISCAL YEAR, THERE IS A CERTAIN CLASS OF EMPLOYEES WHO DESERVE SPECIAL CONSIDERATION. I REFER TO THOSE WHOSE JOB SHEETS FOR RECLASSIFICATIONS WERE SUBMITTED TO THE CIVIL SERVICE COMMISSION DURING THE PAST FISCAL YEAR AND IN WHOSE CASES SUCH RECLASSIFICATIONS WERE APPROVED BY THE COMMISSION AND NOTICES THEREOF RECEIVED IN THE ADMINISTRATIVE OFFICE BETWEEN JUNE 16 AND JUNE 30, BUT THE APPROVAL BY THE CIVIL SERVICE COMMISSION OF THE QUALIFICATIONS OF THE INDIVIDUALS FOR THE RESPECTIVE POSITIONS WAS NOT RECEIVED UNTIL AFTER JUNE 30. SUCH CASES INVOLVE TWO SEPARATE SUBMISSIONS TO THE CIVIL SERVICE COMMISSION, I.E., ONE BEING STATEMENTS OF DUTIES FOR ALLOCATION OF THE POSITIONS UNDER THE CLASSIFICATION ACT, AND THE OTHER, STATEMENTS OF THE QUALIFICATIONS OF THE INDIVIDUALS TO DETERMINE THEIR FITNESS FOR THE RESPECTIVE POSITIONS. ORDINARILY, THESE CHANGES ARE REQUIRED TO BE DATED BACK TO THE BEGINNING OF THE PAY PERIOD CURRENT DURING WHICH THE NOTICES OF APPROVAL OF THE REALLOCATIONS ARE RECEIVED IN THE ADMINISTRATIVE OFFICE, BUT THE ACTION NECESSARY TO EFFECT THE CHANGES IS NOT TAKEN UNTIL THE RECEIPT OF THE NOTICE OF THE APPROVAL OF THE INDIVIDUALS' QUALIFICATIONS. CAN THESE CHANGES BE MADE EFFECTIVE JUNE 16, 1939?

(P) THERE WERE A NUMBER OF GRADE CHANGES, BOTH UPWARD AND DOWNWARD, THAT WERE MADE TO BE EFFECTIVE JUNE 30, 1939, SUBJECT TO THE APPROVAL OF THE CIVIL SERVICE COMMISSION, BUT THE APPROVALS WERE NOT RECEIVED UNTIL AFTER JUNE 30. THIS IS NOT A MATTER OF CLASSIFICATION, BUT A MATTER OF THE APPROVAL OF THE INDIVIDUALS' QUALIFICATIONS FOR THE POSITIONS, AND THE QUESTION OF MAKING THEM EFFECTIVE AT THE BEGINNING OF THE PAY PERIOD CURRENT IS NOT INVOLVED BECAUSE SOME ARE FIELD POSITIONS AND OTHERS ARE DEPARTMENTAL VACANCIES. IT IS SIMPLY A QUESTION OF WHETHER THE APPROVAL OF THE CIVIL SERVICE COMMISSION, RECEIVED AFTER JUNE 30, MAY DATE BACK TO JUNE 30. IN THIS INSTANCE THERE ARE 93 REALLOCATIONS UPWARD AND 36 DOWNWARD, AND THE SOCIAL SECURITY BOARD APPROVALS GO BACK AS FAR AS JUNE 21. CAN THESE CHANGES BE ALLOWED TO BECOME EFFECTIVE?

(Q) IN THE EVENT THAT GRADE AND SALARY CHANGES CANNOT BE MADE IN THE CASES OF EMPLOYEES TRANSFERRED UNDER TITLE I OF THE REORGANIZATION ACT OF 1939, SUPRA, WHAT IS THE STATUS IN THIS RESPECT OF EMPLOYEES APPOINTED TO THE FEDERAL SECURITY AGENCY AFTER JUNE 30, 1939?

WILL SECTION 10B PROHIBIT THE ADJUSTMENT OF COMPENSATION PAID BY THE PUBLIC HEALTH SERVICE ON COOPERATIVE PROJECTS FINANCED IN PART BY A STATE, COUNTY, OR PRIVATE INSTITUTION. AN EXAMPLE OF SUCH CASES IS IN CONNECTION WITH THE DIVISION OF VENEREAL DISEASES OF THE PUBLIC HEALTH SERVICE, WHERE BECAUSE OF A CHANGE IN THE COOPERATIVE PLAN THE PUBLIC HEALTH SERVICE MAY AGREE TO PAY A GREATER SHARE OF THE COMPENSATION OF CONSULTANTS, TECHNICIANS, CLERKS, OR OTHER PERSONS THANIN THE PREVIOUS YEAR EVEN THOUGH NO INCREASES IN SALARIES OF THE INDIVIDUALS ARE INVOLVED.

IN THE PUBLIC HEALTH SERVICE THERE ARE A NUMBER OF PERSONS EMPLOYED IN CONNECTION WITH THE COMMUNITY SANITATION AND MALARIA CONTROL PROJECTS OF THE W.P.A., WHOSE SALARIES AND/OR TRAVEL EXPENSES ARE PAID FROM FUNDS APPROPRIATED TO THE PUBLIC HEALTH SERVICE BY SECTION 6 OF THE EMERGENCY RELIEF APPROPRIATION ACT OF 1939. IN THE PAST THE ADMINISTRATIVE EXPENSES AND TECHNICAL ASSISTANCE NECESSARY IN THE PROSECUTION OF THESE PROJECTS HAS BEEN A COOPERATIVE UNDERTAKING OF THE VARIOUS STATE HEALTH DEPARTMENTS AND THE PUBLIC HEALTH SERVICE BASED ON BUDGETS OR AGREEMENTS INDICATING THE SHARE OF THE EXPENSE TO BE BORNE BY THE STATES AND BY THE PUBLIC HEALTH SERVICE. IN THE DIVISION OF THE EXPENSE, THE PUBLIC HEALTH SERVICE HAS UNDERTAKEN TO PAY THE SALARIES OR TRAVEL EXPENSES OF CERTAIN PERSONS, OR BOTH SALARY AND TRAVEL. THE REVISED BUDGETS OR AGREEMENTS FOR THE FISCAL YEAR 1940 WHICH HAVE BEEN APPROVED BY THE SURGEON GENERAL SHOW IN MANY CASES INCREASES IN SALARIES AND DECREASES IN TRAVEL ALLOWANCES PAYABLE FROM PUBLIC HEALTH SERVICE FUNDS. WILL IT BE NECESSARY TO REVISE THESE AGREEMENTS SO THAT NO INCREASES IN SALARIES WILL BE PAID?

SECTION 201 OF REORGANIZATION PLAN NO. I, PROVIDES IN PART AS FOLLOWS:

FEDERAL SECURITY AGENCY.--- (A) THE UNITED STATES EMPLOYMENT SERVICE IN THE DEPARTMENT OF LABOR AND ITS FUNCTIONS AND PERSONNEL ARE TRANSFERRED FROM THE DEPARTMENT OF LABOR; THE OFFICE OF EDUCATION IN THE DEPARTMENT OF THE INTERIOR AND ITS FUNCTIONS AND PERSONNEL (INCLUDING THE COMMISSIONER OF EDUCATION) ARE TRANSFERRED FROM THE DEPARTMENT OF THE INTERIOR; THE PUBLIC HEALTH SERVICE IN THE DEPARTMENT OF THE TREASURY AND ITS FUNCTIONS AND PERSONNEL (INCLUDING THE SURGEON GENERAL OF THE PUBLIC HEALTH SERVICE) ARE TRANSFERRED FROM THE DEPARTMENT OF THE TREASURY; THE NATIONAL YOUTH ADMINISTRATION WITHIN THE WORKS PROGRESS ADMINISTRATION AND ITS FUNCTIONS AND PERSONNEL (INCLUDING ITS ADMINISTRATOR) ARE TRANSFERRED FROM THE WORKS PROGRESS ADMINISTRATION; AND THESE AGENCIES AND THEIR FUNCTIONS, TOGETHER WITH THE SOCIAL SECURITY BOARD AND ITS FUNCTIONS, AND THE CIVILIAN CONSERVATION CORPS AND ITS FUNCTIONS, ARE HEREBY CONSOLIDATED UNDER ONE AGENCY TO BE KNOWN AS THE FEDERAL SECURITY AGENCY, WITH A FEDERAL SECURITY ADMINISTRATOR AT THE HEAD THEREOF. THE FEDERAL SECURITY ADMINISTRATOR SHALL BE APPOINTED BY THE PRESIDENT, BY AND WITH THE ADVICE AND CONSENT OF THE SENATE, AND SHALL RECEIVE A SALARY AT THE RATE OF $12,000 PER ANNUM. HE SHALL HAVE GENERAL DIRECTION AND SUPERVISION OVER THE ADMINISTRATION OF THE SEVERAL AGENCIES CONSOLIDATED INTO THE FEDERAL SECURITY AGENCY BY THIS SECTION AND SHALL BE RESPONSIBLE FOR THE COORDINATION OF THEIR FUNCTIONS AND ACTIVITIES. * * * * * * *

(D) THE SEVERAL AGENCIES AND FUNCTIONS CONSOLIDATED BY THIS SECTION INTO THE FEDERAL SECURITY AGENCY SHALL CARRY WITH THEM THEIR PERSONNEL. WHILE THE WORD,"TRANSFERRED," IS NOT USED IN PLAN NO. I IN CONNECTION WITH THE CIVILIAN CONSERVATION CORPS AND THE SOCIAL SECURITY BOARD, IT WOULD SEEM TO BE CLEAR THAT SUBSECTION (D) HAS THE EFFECT OF TRANSFERRING THE PERSONNEL OF SAID AGENCIES TO THE FEDERAL SECURITY AGENCY, AND THAT THE PROVISIONS OF 10 (B) OF THE REORGANIZATION ACT OF APRIL 3, 1939, 53 STAT. 563, QUOTED IN YOUR LETTER, AS WELL AS THE PROVISIONS OF SECTION 211 OF REORGANIZATION PLAN NO. I, ARE APPLICABLE TO THE PERSONNEL OF SAID AGENCIES. THEREFORE, ALL OFFICERS AND EMPLOYEES OF THE FEDERAL SECURITY AGENCY WHO WERE IN THE SERVICE ON JUNE 30, 1939, IN ANY OF THE AGENCIES THE FUNCTIONS OF WHICH WERE CONSOLIDATED UNDER THE FEDERAL SECURITY AGENCY MUST BE REGARDED AS HAVING BEEN TRANSFERRED UNDER THE REORGANIZATION ACT OF 1939 WITHIN THE PURVIEW OF SECTION 10 (B) OF THE REORGANIZATION ACT, WHICH PROHIBITS FOR ONE YEAR, OR UNTIL JULY 1, 1940, ANY CHANGE IN CLASSIFICATION OR COMPENSATION OF PERSONNEL SO TRANSFERRED.

HOWEVER, IN THE APPLICATION OF SAID SECTION 10 (B) THERE MAY NOT BE OVERLOOKED THE PROVISIONS OF SECTION 8 (C) OF THE SAME ACT, 53 STAT. 563, AS FOLLOWS:

ALL LAWS RELATING TO ANY AGENCY OR FUNCTION TRANSFERRED TO, OR CONSOLIDATED WITH, ANY OTHER AGENCY OR FUNCTION UNDER THE PROVISIONS OF THIS TITLE, SHALL, INSOFAR AS SUCH LAWS ARE NOT INAPPLICABLE, REMAIN IN FULL FORCE AND EFFECT.

THE VARIOUS PAY STATUTES APPLICABLE TO COMMISSIONED OFFICERS OF THE PUBLIC HEALTH SERVICE, AND THE ADMINISTRATIVE REGULATIONS ISSUED PURSUANT THERETO WHICH HAVE THE FORCE AND EFFECT OF LAW (PAR. 118 TO 124 OF THE REGULATIONS, UNITED STATES PUBLIC HEALTH SERVICE, 1931) PRESCRIBE A SCHEDULE OF RATES OF PAY AND ALLOWANCES FOR THE COMMISSIONED PERSONNEL OF THE PUBLIC HEALTH SERVICE BASED ON RANK, LENGTH OF SERVICE, ETC., AND, UNDER THE PROVISIONS OF SECTION 8 (C) OF THE REORGANIZATION ACT, SUCH STATUTES AND REGULATIONS CONTINUE TO OPERATE WITH RESPECT TO SAID COMMISSIONED PERSONNEL AFFECTED BY THE REORGANIZATION ACT AND REORGANIZATION PLANS THEREUNDER.

IN THE LIGHT OF THE FOREGOING, THEREFORE, THE FIRST SERIES OF QUESTIONS, RELATING TO THE COMMISSIONED PERSONNEL OF THE PUBLIC HEALTH SERVICE, ARE ANSWERED AS FOLLOWS:

WITH THE UNDERSTANDING THAT THE PROMOTIONS AND PAY INCREASES REFERRED TO IN QUESTIONS (A), (B), AND (C) ARE THOSE AUTHORIZED UNDER THE LAWS AND REGULATIONS OF THE PUBLIC HEALTH SERVICE THE PROVISIONS OF WHICH ARE CONTINUED IN EFFECT BY SUBSECTION 8 (C) OF THE REORGANIZATION ACT, SUPRA, (A) AND (B) ARE ANSWERED IN THE AFFIRMATIVE AND (C) IN THE NEGATIVE.

WITH REFERENCE TO QUESTION (D) SINCE NEITHER THE ACT OF OCTOBER 27, 1918, 40 STAT. 1017, NOR THE ADMINISTRATIVE REGULATIONS APPEAR TO PRESCRIBE RULES FOR MAKING PROMOTIONS IN THE CASE OF RESERVE OFFICERS OF THE PUBLIC HEALTH SERVICE SUBSECTION 8 (C) IS NOT FOR APPLICATION, AND, ON THE PRESENT SHOWING THE QUESTION IS ANSWERED IN THE NEGATIVE.

QUESTION (E) IS ANSWERED IN THE NEGATIVE. (SEE PARAGRAPH 121 OF THE REGULATIONS).

QUESTION (F) IS ANSWERED IN THE NEGATIVE, AND QUESTION (G) IN THE AFFIRMATIVE.

ASSUMING THAT THE "ACTIVE DUTY PAY" REFERRED TO IN QUESTION (H) MEANS "WAITING ORDERS PAY" AT THE RATE AND UNDER THE CONDITIONS STATED IN PARAGRAPHS 67 AND 119 OF THE REGULATIONS, SAID QUESTION IS ANSWERED IN THE AFFIRMATIVE.

AS TO QUESTION (I), THERE APPEARS NOTHING IN THE REORGANIZATION PLAN NO. I, OR IN THE REORGANIZATION ACT, REQUIRING ANY CHANGES IN THE PRACTICE IN EFFECT PRIOR TO JULY 1, 1939, IN THE MATTER OF DISCIPLINARY MEASURES APPLICABLE TO THE COMMISSIONED PERSONNEL OF THE PUBLIC HEALTH SERVICE.

IN THE LIGHT OF THE APPLICABLE STATEMENTS HEREINBEFORE MADE THE SECOND SERIES OF QUESTIONS, RELATING TO THE CIVILIAN PERSONNEL WHO WERE WITH THE VARIOUS AGENCIES CONSOLIDATED UNDER THE FEDERAL SECURITY AGENCY, ARE ANSWERED IN THE ORDER STATED AS FOLLOWS:

(A) SECTION 10 (B) OF THE REORGANIZATION ACT IS A PROHIBITION ONLY AGAINST A CHANGE IN CLASSIFICATION OR COMPENSATION DURING THE FISCAL YEAR 1940 OF AN EMPLOYEE TRANSFERRED UNDER THE PROVISIONS OF TITLE I OF THE ACT. THEREFORE, A PERSON WHO HAS A TEMPORARY OR EXCEPTED STATUS IN THE AGENCY TRANSFERRED BY OPERATION OF THE ACT MAY BE PROBATIONALLY APPOINTED TO A VACANT POSITION ONLY IF SUCH POSITION BE IN THE SAME CLASSIFICATION GRADE AS THE POSITION HELD JUNE 30, 1939, AND AT THE SAME COMPENSATION RATE HE RECEIVED ON SAID DATE. THIS ANSWERS QUESTION (B), ALSO.

(C) IN LINE WITH THE ANSWER TO QUESTIONS (A) AND (B) THE POSITION COULD NOT BE FILLED AS PROPOSED WITH A VIEW TO MAKING THE CHANGE IN GRADE AND THE PAY INCREASE OF THE PERSON INVOLVED EFFECTIVE DURING THE FISCAL YEAR 1940. FOR RECORD PURPOSES, HOWEVER, THE EMPLOYEE REFERRED TO MAY BE ASSIGNED TO THE POSITION, PERFORM THE DUTIES THEREOF, ETC., THE CHANGE IN GRADE AND THE INCREASE OF COMPENSATION, IF ANY, TO BECOME EFFECTIVE JULY 1, 1940. THIS ANSWERS QUESTION (D), ALSO.

(E) THIS QUESTION IS ANSWERED IN THE AFFIRMATIVE. COMPARE DECISION B- 5103, DATED AUGUST 4, 1939, TO THE SECRETARY OF THE INTERIOR.

(F) THIS QUESTION IS ANSWERED IN THE AFFIRMATIVE. SEE DECISION B 5117, DATED AUGUST 3, 1939, TO THE SECRETARY OF THE INTERIOR.

(G) THIS WOULD INVOLVE A CHANGE IN THE CLASSIFICATION OF THE POSITION WHICH IS PROHIBITED BY SECTION 10 (B) OF THE REORGANIZATION ACT, AND THE QUESTION MUST BE ANSWERED IN THE NEGATIVE.

(H) THIS QUESTION IS ANSWERED IN THE AFFIRMATIVE, SUBJECT TO THE CONDITION THAT THE CHANGE IN GRADE AND COMPENSATION SHALL NOT BECOME EFFECTIVE UNTIL JULY 1, 1940.

(I), (J), AND (K) AS THESE QUESTIONS APPEAR TO BE BASED UPON SUPPOSED CONDITIONS WHICH MAY NOT ARISE DURING THE CURRENT FISCAL YEAR, THEY WILL NOT BE ANSWERED AT THIS TIME.

(L) SECTION 3 OF THE ACT OF MARCH 5. 1928, 45 STAT. 193, PROVIDES AS FOLLOWS:

THE HEAD OF AN EXECUTIVE DEPARTMENT OR INDEPENDENT ESTABLISHMENT, WHERE, IN HIS JUDGMENT, CONDITIONS OF EMPLOYMENT REQUIRE IT, MAY CONTINUE TO FURNISH CIVILIANS EMPLOYED IN THE FIELD SERVICE WITH QUARTERS, HEAT, LIGHT, HOUSEHOLD EQUIPMENT, SUBSISTENCE, AND LAUNDRY SERVICE; AND APPROPRIATIONS FOR THE FISCAL YEAR 1929 AND THEREAFTER OF THE CHARACTER HERETOFORE USED FOR SUCH PURPOSES ARE HEREBY MADE AVAILABLE THEREFOR: PROVIDED, THAT THE REASONABLE VALUE OF SUCH ALLOWANCES SHALL BE DETERMINED AND CONSIDERED AS PART OF THE COMPENSATION IN FIXING THE SALARY RATE OF SUCH CIVILIANS.

PAYMENT OF THE COMMUTED VALUE OF ALLOWANCES IN KIND WHICH ARE DISCONTINUED UNDER PROPER ADMINISTRATIVE REGULATIONS WOULD NOT CAUSE A CHANGE IN THE CLASSIFICATION OR COMPENSATION OF THE POSITION. THE QUESTION IS ANSWERED IN THE AFFIRMATIVE.

(M) A DEMOTION IN GRADE OR REDUCTION IN COMPENSATION WOULD NOT APPEAR TO BE PROHIBITED WHERE SUCH ACTION IS REQUIRED FOR DISCIPLINARY PURPOSES, ONLY.

(N) ASSUMING THAT THE EMPLOYEES INVOLVED WERE TRANSFERRED TO THE FEDERAL SECURITY AGENCY BY REASON OF REORGANIZATION PLAN NO. I AND THAT THE PROPOSED APPOINTMENTS ARE TO POSITIONS IN SAID AGENCY, THE QUESTION IS ANSWERED IN THE NEGATIVE.

(O) THE RULE OF LONG STANDING HAS BEEN THAT THE CHANGE IN CLASSIFICATION GRADE AND COMPENSATION RATE PURSUANT TO THE REALLOCATION OF A POSITION APPROVED BY THE CIVIL SERVICE COMMISSION IS EFFECTIVE FROM THE BEGINNING OF THE PAY PERIOD CURRENT WHEN THE NOTICE OF THE APPROVAL OF THE REALLOCATION BY THE CIVIL SERVICE COMMISSION IS RECEIVED IN THE ADMINISTRATIVE OFFICE. 4 COMP. GEN. 280; ID. 395; 5 ID. 202; 6 ID. 202; ID. 355; ID. 530; 8 ID. 40; 9 ID. 128; 10 ID. 284; 11 ID. 395; AND 18 ID. 794. IN NONE OF THESE DECISIONS WERE THERE FIXED AS A CONDITION PRECEDENT TO THE TAKING EFFECT OF NEW CLASSIFICATION GRADE AND COMPENSATION RATE THE APPROVAL OF THE CIVIL SERVICE COMMISSION OF THE QUALIFICATIONS OF THE INCUMBENT OF THE POSITION. SUCH APPROVAL MAY BE REGARDED AS RELATING BACK TO THE EFFECTIVE DATE OF THE CHANGE IN CLASSIFICATION GRADE AND COMPENSATION RATE IF THE EMPLOYEE THEN POSSESSED THE NECESSARY QUALIFICATIONS, WHICH IN THIS CASE IS UNDERSTOOD TO HAVE BEEN JUNE 16, 1939. THIS QUESTION IS ANSWERED IN THE AFFIRMATIVE.

(P) IF THE ADMINISTRATIVE OFFICE ACTUALLY ISSUED BONA FIDE APPOINTMENTS-- - AS DISTINGUISHED FROM CHANGES IN RECORDS FOR THE EXPRESS PURPOSES OF CIRCUMVENTING THE APPLICATION OF THE PROVISIONS OF SECTION 10 (B/--- EFFECTIVE JUNE 30, 1939, TO THE EMPLOYEES INVOLVING A CHANGE IN CLASSIFICATION AND/OR COMPENSATION AND THE APPOINTMENTS BECAME EFFECTIVE ON THAT DATE BY ACTUAL ENTRANCE ON DUTY IN THE NEW POSITIONS ON OR BEFORE JUNE 30, 1939, THE APPROVAL OF THE CIVIL SERVICE COMMISSION OF THE QUALIFICATIONS OF THE APPOINTEES MAY BE REGARDED AS RELATING BACK TO JUNE 30, 1939, AND SECTION 10 (B) OF THE REORGANIZATION ACT WOULD NOT PROHIBIT SUCH CHANGES.

(Q) SECTION 10 (B) OF THE REORGANIZATION ACT IS NOT APPLICABLE TO AN EMPLOYEE INITIALLY APPOINTED IN THE FEDERAL SECURITY AGENCY ON OR AFTER JULY 1, 1939.

REFERRING TO THE PENULTIMATE PARAGRAPH OF YOUR LETTER, IF THE EMPLOYEES OCCUPY FEDERAL POSITIONS THE SALARY RATES OF WHICH HAVE BEEN FIXED PURSUANT TO FEDERAL STATUTE, THE CLASSIFICATION GRADE AND/OR COMPENSATION RATE MAY NOT BE CHANGED, BUT SECTION 10 (B) OF THE REORGANIZATION ACT WOULD NOT PROHIBIT AN ADJUSTMENT IN THE PROPORTION OF FEDERAL FUNDS AND NON-FEDERAL FUNDS CONTRIBUTED TOWARD PAYMENT OF THE TOTAL SALARIES OF THE POSITIONS. IF THE EMPLOYEES OCCUPY STATE, COUNTY, OR OTHER NON-FEDERAL POSITIONS, THE SALARY RATES OF WHICH HAVE NOT BEEN FIXED UNDER FEDERAL STATUTE, SECTION 10 (B) OF THE REORGANIZATION ACT HAS NO APPLICATION. THIS ANSWER IS EQUALLY APPLICABLE TO THE QUESTION PRESENTED IN THE CONCLUDING PARAGRAPH OF YOUR LETTER. THAT IS TO SAY, IF THE CLASSIFICATION GRADES AND/OR COMPENSATION RATES OF FEDERAL POSITIONS HAVE BEEN OR WILL BE CHANGED EFFECTIVE ON OR AFTER JULY 1, 1939, BY THE TERMS OF THE AGREEMENTS, IT WILL BE NECESSARY TO REVISE THE AGREEMENTS SO THAT NO INCREASE IN SALARIES WILL BE PAID. CHANGES IN THE AMOUNT OF TRAVELING EXPENSES PAID AS SUCH DURING THE FISCAL YEAR 1940, AND IN NOWISE HAVING ANY BEARING UPON THE RATE OF COMPENSATION PAID, ARE NOT AFFECTED BY THE PROVISIONS OF SECTION 10 (B) OF THE REORGANIZATION ACT.