B-106337, NOVEMBER 6, 1951, 31 COMP. GEN. 166

B-106337: Nov 6, 1951

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BETWEEN THE EFFECTIVE DATE OF SAID AMENDMENT AND THE DATE OF ITS APPROVAL ARE TO RECEIVE THEIR RETROACTIVE PAYMENTS FROM THE AGENCY OR DEPARTMENT AUTHORIZED TO OBLIGATE THE APPROPRIATIONS OR FUNDS WHICH WERE CHARGED WITH THE EMPLOYEE'S SALARIES DURING THE PERIOD INVOLVED. THE INCREASED COMPENSATION AMENDMENT TO THE CLASSIFICATION ACT OF 1949 PROVIDES THAT THE RETROACTIVE COMPENSATION AUTHORIZED THEREIN SHALL BE PAID TO INDIVIDUALS WHO ARE IN THE SERVICE OF THE UNITED STATES ON THE DATE OF ITS ENACTMENT. WHO WAS IN THE SERVICE OF THE UNITED STATES ON OCTOBER 24. IS ENTITLED TO RECEIVE A PAY ADJUSTMENT UNDER THE NEW ACT FOR ANY SERVICE AS A CLASSIFIED EMPLOYEE REGARDLESS OF WHETHER THE POSITION HELD ON OCTOBER 24.

B-106337, NOVEMBER 6, 1951, 31 COMP. GEN. 166

COMPENSATION - INCREASES UNDER THE CLASSIFICATION ACT OF 1949, AS AMENDED EMPLOYEES IN POSITIONS SUBJECT TO THE INCREASED COMPENSATION AMENDMENT TO THE CLASSIFICATION ACT OF 1949 WHO TRANSFERRED FROM ONE AGENCY TO ANOTHER, OR FROM ONE BUREAU TO ANOTHER WITHIN THE SAME DEPARTMENT OPERATING UNDER SEPARATE APPROPRIATIONS, BETWEEN THE EFFECTIVE DATE OF SAID AMENDMENT AND THE DATE OF ITS APPROVAL ARE TO RECEIVE THEIR RETROACTIVE PAYMENTS FROM THE AGENCY OR DEPARTMENT AUTHORIZED TO OBLIGATE THE APPROPRIATIONS OR FUNDS WHICH WERE CHARGED WITH THE EMPLOYEE'S SALARIES DURING THE PERIOD INVOLVED. THE INCREASED COMPENSATION AMENDMENT TO THE CLASSIFICATION ACT OF 1949 PROVIDES THAT THE RETROACTIVE COMPENSATION AUTHORIZED THEREIN SHALL BE PAID TO INDIVIDUALS WHO ARE IN THE SERVICE OF THE UNITED STATES ON THE DATE OF ITS ENACTMENT, SO THAT AN EMPLOYEE, WHO WAS IN THE SERVICE OF THE UNITED STATES ON OCTOBER 24, 1951, IS ENTITLED TO RECEIVE A PAY ADJUSTMENT UNDER THE NEW ACT FOR ANY SERVICE AS A CLASSIFIED EMPLOYEE REGARDLESS OF WHETHER THE POSITION HELD ON OCTOBER 24, 1951, WAS CLASSIFIED OR UNCLASSIFIED OR THAT A BREAK IN SERVICE OCCURRED BETWEEN THE EFFECTIVE DATE OF THE AMENDMENT AND ITS APPROVAL. AN EMPLOYEE WHO IS ATTACHED TO THE ROLLS OF AN AGENCY IN A CLASSIFIED OR UNCLASSIFIED POSITION BUT WHO IS IN A LEAVE WITHOUT PAY OR FURLOUGH STATUS IS STILL AN EMPLOYEE "IN THE SERVICE OF THE UNITED STATES" WITHIN THE MEANING OF THAT TERM AS USED IN THE INCREASED COMPENSATION AMENDMENT TO THE CLASSIFICATION ACT OF 1949. THE INCREASED COMPENSATION AMENDMENT TO THE CLASSIFICATION ACT OF 1949 REQUIRES THE ADJUSTMENT OF AN EMPLOYEE'S COMPENSATION FOR THE PERIOD BETWEEN ITS EFFECTIVE DATE AND ENACTMENT DATE TO REFLECT THE PAY STATUS HE WOULD HAVE ATTAINED HAD THE AMENDED PAY SCHEDULES BEEN OPERATIVE AND APPLIED CURRENTLY DURING THAT PERIOD, SO THAT THE PROMOTION OF AN EMPLOYEE DURING SAID PERIOD TO A HIGHER STEP INCREASE UNDER THE OLD SALARY SCALE THAN REQUIRED UNDER THE NEW SALARY SCALE MUST BE AMENDED RETROACTIVELY IN ACCORDANCE WITH THE NEW SALARY SCALE AND THE NECESSARY ADJUSTMENTS MADE IN THE EMPLOYEE'S SALARY. UNDER SECTION 701 (B) OF THE CLASSIFICATION ACT OF 1949, AS AMENDED, PROVIDING THAT INCREASES IN COMPENSATION GRANTED PURSUANT TO SAID ACT SHALL NOT BE CONSTRUED TO BE AN EQUIVALENT INCREASE IN COMPENSATION WITHIN THE MEANING OF SUBSECTION (A) OF THAT SECTION, AN EMPLOYEE WHO IS ENTITLED TO A WITHIN-GRADE PROMOTION ON THE EFFECTIVE DATE OF THE INCREASED COMPENSATION AMENDMENT TO THE ACT IS ALSO ENTITLED TO THE RETROACTIVE PAY INCREASE AUTHORIZED BY THE ACT. AN EMPLOYEE IN A POSITION SUBJECT TO THE INCREASED COMPENSATION AMENDMENT TO THE CLASSIFICATION ACT OF 1949 WHO RECEIVES A STEP INCREASE BETWEEN THE EFFECTIVE DATE OF SAID AMENDMENT AND THE DATE OF ITS ENACTMENT SHOULD HAVE HIS RETROACTIVE PAY INCREASE COMPUTED IN ACCORDANCE WITH THE INCREASED RATES FOR EACH GRADE, OR STEP WITHIN A GRADE, OCCUPIED BY THE EMPLOYEE DURING SUCH PERIOD. EMPLOYEES WHO ON THE ENACTMENT DATE OF THE INCREASED COMPENSATION AMENDMENT TO THE CLASSIFICATION ACT OF 1949 ARE RECEIVING A RATE OF PAY BETWEEN THE MAXIMUM SCHEDULED RATE AND THE FIRST LONGEVITY STEP FOR THE GRADE OF THEIR POSITIONS ARE TO HAVE THEIR SALARY ADVANCED, UNDER SECTION 1 (B) (2) (A) OF THE ACT, TO THE FIRST LONGEVITY RATE OF THEIR GRADE MUST COMPLETE THREE YEARS OF CONTINUOUS SERVICE AT THE RATE BEFORE BECOMING ELIGIBLE FOR ADVANCEMENT TO THE SECOND LONGEVITY RATE. UNDER SECTION 1 (B) (2) (B) OF THE INCREASED COMPENSATION AMENDMENT TO THE CLASSIFICATION ACT OF 1949 PROVIDING FOR AN INCREASE IN COMPENSATION ONLY IN THOSE GRADES WHICH HAVE LONGEVITY STEPS, AN EMPLOYEE WHO IS RECEIVING A RATE OF PAY ABOVE THE MAXIMUM SCHEDULED RATE OF A GRADE IN WHICH THERE ARE NO LONGEVITY STEPS IS NOT ENTITLED TO AN ADJUSTMENT IN HIS COMPENSATION. UNDER THE INCREASED COMPENSATION AMENDMENT TO THE CLASSIFICATION ACT OF 1949, EMPLOYEES WHO BETWEEN THE EFFECTIVE DATE OF THE AMENDMENT AND ITS APPROVAL RECEIVED OVERTIME COMPENSATION, NIGHT DIFFERENTIAL AND FOREIGN OR TERRITORIAL COST OF LIVING ALLOWANCES BASED ON A PERCENTAGE OF GROSS BASIC PAY MUST HAVE THEIR STATUS FOR PAY PURPOSES RECONSTRUCTED AND THE NECESSARY ADJUSTMENTS MADE TO REFLECT THE NET RESULTS HAD THE AMENDMENT BEEN APPLIED CURRENTLY AT THE TIME THE COMPENSATION WAS PAID. UNDER THE INCREASED COMPENSATION AMENDMENT TO THE CLASSIFICATION ACT OF 1949 AN EMPLOYEE WHOSE POSITION WAS DOWN-GRADED BUT WHOSE SALARY WAS SAVED IN ACCORDANCE WITH SECTION 25.103 (E) OF THE FEDERAL EMPLOYEES PAY REGULATIONS IS ENTITLED TO THE INCREASED RATE FOR HIS POSITION, SO THAT HIS SALARY RATE WOULD BE INCREASED BY OPERATION OF LAW TO THE CORRESPONDING SCHEDULED RATE SHOWN IN THE AMENDED PAY SCHEDULES. UNDER THE INCREASED COMPENSATION AMENDMENT TO THE CLASSIFICATION ACT OF 1949 EMPLOYEES IN THE SERVICE OF THE UNITED STATES ON THE DATE OF THE AMENDMENT ARE ENTITLED TO BE PAID AT THE RATE OF COMPENSATION PRESCRIBED THEREIN, SO THAT AN EMPLOYEE IN A CLASSIFICATION ACT POSITION WHO RESIGNS FROM THE SERVICE ON THE ENACTMENT DATE OF THE AMENDMENT IS ENTITLED TO PAY AT THE ADJUSTED RATES RETROACTIVE TO THE EFFECTIVE DATE OF THE LAW.

COMPTROLLER GENERAL WARREN TO THE CHAIRMAN, UNITED STATES CIVIL SERVICE COMMISSION, NOVEMBER 6, 1951:

REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 1, 1951, REQUESTING DECISION ON SEVERAL QUESTIONS WHICH HAVE ARISEN UNDER THE ACT OF OCTOBER 24, 1951, PUBLIC LAW 201. THE QUESTIONS, WHICH RELATE PRINCIPALLY TO THE RETROACTIVE FEATURES OF THE ACT, WILL BE STATED AND ANSWERED IN THE ORDER PRESENTED.

1. AN EMPLOYEE IN A POSITION SUBJECT TO THE CLASSIFICATION ACT OF 1949 "TRANSFERS" FROM AGENCY A TO AGENCY B ON SEPTEMBER 17. WHICH AGENCY MUST ADJUST HIS PAY UNDER THE NEW SCHEDULES OF PUBLIC LAW 201, 82D CONGRESS (A) FOR THE PERIOD SERVED IN AGENCY A FROM THE EFFECTIVE DATE OF THE ACT TO THE DATE OF HIS TRANSFER; AND (B) FOR THE PERIOD SERVED IN AGENCY B FROM THE DATE OF TRANSFER TO THE DATE OF ENACTMENT OF THE NEW ACT?

2. ON AUGUST 20, 1951, AN EMPLOYEE IN GRADE GS-3 TRANSFERRED FROM BUREAU A TO BUREAU B WITHIN THE SAME AGENCY. CONGRESS HAD APPROPRIATED FUNDS FOR EACH BUREAU SEPARATELY. SHOULD BUREAU B PAY THE INCREASED RATE FOR THE ENTIRE PERIOD RETROACTIVELY TO THE EFFECTIVE DATE OF THE ACT (A) WITHOUT ANY REIMBURSEMENT FROM BUREAU A; OR (B) SHOULD BUREAU A REIMBURSE BUREAU B FOR THE PERIOD EMPLOYEE WORKED IN BUREAU A; OR (C) SHOULD BUREAU B PAY ONLY FOR SERVICES AFTER THE EMPLOYEE TRANSFERRED TO ITS ROLLS AND BUREAU A MAKE SEPARATE PAYMENT TO THE EMPLOYEE?

THE SAID ACT OF OCTOBER 24, 65 STAT. 612, AMONG OTHER THINGS, AMENDS SECTIONS 603 (B) AND 603 (C) OF THE CLASSIFICATION ACT OF 1949, 63 STAT. 965, BY INCREASING THE RATES OF BASIC COMPENSATION PAYABLE TO OFFICERS, EMPLOYEES AND POSITIONS TO WHICH THE SAID CLASSIFICATION ACT APPLIES IN ACCORDANCE WITH THE NEW COMPENSATION SCHEDULES PRESCRIBED THEREIN. SECTION 6 OF THE ACT, 65 STAT. 615, PROVIDES AS FOLLOWS:

(A) THIS ACT SHALL BECOME EFFECTIVE AS OF THE FIRST DAY OF THE FIRST PAY PERIOD WHICH BEGAN AFTER JUNE 30, 1951.

(B) RETROACTIVE COMPENSATION OR SALARY SHALL BE PAID UNDER THIS ACT ONLY IN THE CASE OF AN INDIVIDUAL IN THE SERVICE OF THE UNITED STATES (INCLUDING SERVICE IN THE ARMED FORCES OF THE UNITED STATES) OR OF THE MUNICIPAL GOVERNMENT OF THE DISTRICT OF COLUMBIA ON THE DATE OF ENACTMENT OF THIS ACT, EXCEPT THAT SUCH RETROACTIVE COMPENSATION OR SALARY SHALL BE PAID A RETIRED OFFICER OR EMPLOYEE FOR SERVICES RENDERED DURING THE PERIOD BEGINNING WITH THE FIRST DAY OF THE FIRST PAY PERIOD WHICH BEGAN AFTER JUNE 30, 1951, AND ENDING WITH THE DATE OF HIS RETIREMENT.

THE EFFECT OF THE ABOVE QUOTED PROVISION OF THE ACT IS TO PLACE EMPLOYEES COVERED THEREBY IN THE SAME PAY STATUS ON THE FIRST DAY OF THE FIRST PAY PERIOD AFTER JUNE 30, 1951, IN WHICH THEY WOULD HAVE BEEN PLACED IF THE INCREASED RATES HAD BEEN ENACTED INTO LAW ON OR PRIOR TO THAT DATE. (CF. 29 COMP. GEN. 33). IN OTHER WORDS, EMPLOYEES WHO ARE SUBJECT TO THE SAID SECTION 6 NOW ARE ENTITLED TO RECEIVE ADDITIONAL COMPENSATION FOR SERVICES RENDERED BY THEM DURING THE PERIOD FROM THE EFFECTIVE DATE OF THE ACT TO OCTOBER 24, 1951, THE DATE OF ITS APPROVAL. THE AMOUNT OF SUCH ADDITIONAL PAY SHOULD EQUAL THE DIFFERENCE BETWEEN THE OLD COMPENSATION SCHEDULES AND THE AMENDED SCHEDULES AS APPLIED TO THE VARIOUS GRADES AND/OR RATES WITHIN GRADES OCCUPIED BY THE EMPLOYEES DURING THE SAID PERIOD. SINCE THE REQUIRED ADJUSTMENTS AND THE RESULTING SUPPLEMENTAL PAYMENTS ARE PROPER CHARGES AGAINST THE APPROPRIATIONS OR FUNDS WHICH WERE CHARGED WITH THE EMPLOYEES' SALARIES DURING THE PERIOD INVOLVED, IT FOLLOWS THAT THE RESPONSIBILITY FOR MAKING RETROACTIVE PAYMENTS UNDER THE ACT RESTS UPON THE AGENCY OR DEPARTMENT NOW AUTHORIZED TO OBLIGATE SUCH FUNDS. ACCORDINGLY, IN ANSWER TO QUESTION A AND B, AGENCY A IS REQUIRED TO MAKE THE ADJUSTMENT FROM THE EFFECTIVE DATE OF PUBLIC LAW 201, TO THE DATE THE EMPLOYEE TRANSFERRED, AND AGENCY B IS REQUIRED TO MAKE THE ADJUSTMENT FROM THE DATE OF TRANSFER TO THE DATE OF ENACTMENT OF THE SAID LAW.

THE SAME RULE APPLIES TO INTER-BUREAU TRANSFERS WITHIN THE SAME AGENCY WHERE SUCH BUREAUS OPERATE UNDER SEPARATE APPROPRIATIONS. THUS, IN THE EXAMPLE CITED IN QUESTION 2, THE ALTERNATIVE QUESTION (C) IS ANSWERED IN THE AFFIRMATIVE.

3. AN EMPLOYEE WORKED IN A POSITION SUBJECT TO THE CLASSIFICATION ACT OF 1949 DURING THE MONTH OF JULY 1951. HE RESIGNED JULY 31 AND WAS REEMPLOYED ON SEPTEMBER 3. IS HE ENTITLED TO PAY AT THE HIGHER RATE FOR THE SERVICE PRIOR TO THE BREAK IN EMPLOYMENT?

4. AN EMPLOYEE WAS IN A CLASSIFICATION ACT POSITION ON THE EFFECTIVE DATE OF THE ACT. DURING THE MONTH OF AUGUST 1951, HE TRANSFERRED TO A POSITION WHICH WAS NOT WITHIN THE PURVIEW OF THE CLASSIFICATION ACT OR THE NEW ACT. HOWEVER, ON THE DATE OF ENACTMENT OF PUBLIC LAW 201, HE WAS AGAIN IN A POSITION UNDER THE CLASSIFICATION ACT. HOW DOES THE NEW ACT APPLY?

5. AN EMPLOYEE, ON THE EFFECTIVE DATE OF THE ACT, WAS IN A CLASSIFICATION ACT POSITION. SUBSEQUENTLY, HE TRANSFERRED TO, AND ON OCTOBER 24, 1951, OCCUPIED A POSITION NOT UNDER THE CLASSIFICATION ACT OR WITHIN THE PURVIEW OF THE NEW ACT. DOES HE RECEIVE A PAY ADJUSTMENT UNDER THE NEW ACT FOR THE PERIOD HE SERVED IN THE CLASSIFICATION ACT POSITION?

SECTION 6B QUOTED ABOVE PROVIDES THAT RETROACTIVE COMPENSATION SHALL BE PAID UNDER THE ACT IN THE CASE OF AN INDIVIDUAL WHO IS IN THE SERVICE OF THE UNITED STATES ON THE DATE OF ITS ENACTMENT. THAT CONDITION WOULD APPEAR TO BE SATISFIED IF THE PERSON INVOLVED IS IN THE EMPLOY OF THE UNITED STATES ON SUCH DATE IN ANY CAPACITY--- CLASSIFIED OR UNCLASSIFIED AND HIS RIGHT TO THE RETROACTIVE INCREASE IN COMPENSATION WOULD NOT BE DEFEATED BY A BREAK IN SERVICE OCCURRING PRIOR TO SUCH ENACTMENT DATE ( OCTOBER 24, 1951). IN SUCH CASES THE EMPLOYEES ARE ENTITLED TO HAVE THE COMPENSATION RECEIVED BY THEM IN A CLASSIFICATION ACT POSITION DURING THE RETROACTIVE PERIOD ADJUSTED IN ACCORDANCE WITH THE ANSWERS TO QUESTIONS 1 AND 2 ABOVE. SEE 29 COMP. GEN. 33. QUESTION 3 IS ANSWERED IN THE AFFIRMATIVE.

FROM THE ANSWER TO QUESTION 3, IT LOGICALLY WOULD FOLLOW THAT THE EMPLOYEES ILLUSTRATED IN QUESTIONS 4 AND 5 ARE ENTITLED TO HAVE THEIR SALARIES ADJUSTED FOR THE PERIODS DURING WHICH THEY OCCUPIED CLASSIFICATION ACT POSITIONS.

6. IS AN EMPLOYEE ATTACHED TO THE ROLLS OF AN AGENCY IN A CLASSIFICATION ACT POSITION BUT WHO IS NOT RENDERING ACTIVE SERVICE (E.G., HE IS IN AN R.I.F. STATUS, ON CIVILIAN OR MILITARY LEAVE WITHOUT PAY OR FURLOUGH, SUSPENSION, ETC.) CONSIDERED AS BEING "IN THE SERVICE OF THE UNITED STATES" WITHIN THE MEANING OF SECTION 6 (B) OF THE ACT?

INASMUCH AS AN INDIVIDUAL IN A LEAVE WITHOUT PAY OR FURLOUGH STATUS IS STILL AN EMPLOYEE OF THE UNITED STATES, AND CARRIED ON THE ROLL OF THE AGENCY AS SUCH, IT MUST BE CONCLUDED THAT HE IS "IN THE SERVICE OF THE UNITED STATES" WITHIN THE MEANING OF THAT TERM AS USED IN SECTION 6 (B) SUPRA. ACCORDINGLY, QUESTION 6 IS ANSWERED IN THE AFFIRMATIVE.

7. IN AUGUST 1951, AN EMPLOYEE IN GRADE GS-5 RECEIVING $3350, THE THIRD STEP-RATE, WAS PROMOTED TO GS-6. TO MEET THE REQUIREMENT OF SECTION 802 (B) OF THE CLASSIFICATION ACT OF 1949, AS AMENDED, AND THE COMMISSION'S REGULATIONS (SECTION 25.104 (A) ( THAT HE MUST BE GIVEN AT LEAST A ONE- STEP INCREASE, HE WAS PAID $3575, THE SECOND STEP-RATE IN GRADE GS-6 UNDER THE OLD SCHEDULE. UNDER THE NEW SCALES, THE CORRESPONDING PAY STEPS ARE NOW $3600, GS-5, AND $3920, GS-6. THE REQUIREMENT IS MET UNDER THE NEW RATES IF THE EMPLOYEE IS PROMOTED FROM THE THIRD RATE IN GS-5, $3660 TO THE MINIMUM RATE OF GS-6, $3795, WITH AN INCREASE OF $135.00. IS THE AGENCY REQUIRED TO AMEND THE ACTION RETROACTIVELY TO GIVE THE EMPLOYEE THE FIRST RATE OF GS-6, OR DOES HE CONTINUE TO RECEIVE THE SECOND RATE OF GS- 6, AT THE NEW RATE?

THE RETROACTIVE PROVISION OF THE NEW ACT ( PUBLIC LAW 201) HAS THE EFFECT OF REQUIRING THE ADJUSTMENT OF AN EMPLOYEE'S COMPENSATION FOR THE PERIOD BETWEEN ITS EFFECTIVE DATE AND ENACTMENT DATE TO REFLECT THE PAY STATUS HE WOULD HAVE ATTAINED HAD THE AMENDED PAY SCHEDULES BEEN OPERATIVE AND APPLIED CURRENTLY DURING THE SAID PERIOD (SEE ANSWERS TO QUESTIONS 1 AND 2 SUPRA). IN THE CASE ILLUSTRATED IT IS CLEAR THAT, IF THE NEW SCHEDULES HAD BEEN APPLIED CURRENTLY, THE EMPLOYEE, ON BEING PROMOTED TO GRADE GS-6 FROM THE THIRD RATE OF GRADE GS-5, WOULD HAVE BEEN PLACED IN THE MINIMUM RATE OF THE NEW GRADE. ACCORDINGLY, AND SINCE THE ACT SPEAKS FROM THE FIRST DAY OF THE FIRST PAY PERIOD AFTER JUNE 30, 1951, IN THE INTEREST OF CONSISTENCY AND A UNIFORM APPLICATION OF ITS PROVISIONS, IT IS REQUIRED THAT ADJUSTMENTS BE MADE IN SUCH CASES TO REFLECT THE TRUE SALARY STATUS OF EACH EMPLOYEE UNDER THE AMENDED SCHEDULES. IN THE EXAMPLE GIVEN, THE ACTION TAKEN TO PROMOTE THE EMPLOYEE TO GRADE GS-6 SHOULD BE AMENDED RETROACTIVELY TO GIVE HIM THE MINIMUM RATE OF THE GRADE (GS-6). QUESTION NUMBER 7 IS ANSWERED ACCORDINGLY.

8. AN EMPLOYEE WAS ELIGIBLE FOR A STEP INCREASE FROM THE FIRST TO THE SECOND RATE OF HIS GRADE ON THE EFFECTIVE DATE OF THE NEW ACT. SHOULD THE RETROACTIVE PAY INCREASE BE BASED UPON THE SECOND STEP-RATE TO WHICH HE IS ELIGIBLE?

SECTION 701 (B) OF THE CLASSIFICATION ACT OF 1949, 63 STAT. 968, AS AMENDED BY THE SAID PUBLIC LAW 201, PROVIDES THAT INCREASES IN COMPENSATION GRANTED BY LAW AFTER JUNE 30, 1951, SHALL NOT BE CONSTRUED TO BE AN EQUIVALENT INCREASE IN COMPENSATION WITHIN THE MEANING OF SUBSECTION (A) OF THAT SECTION. HENCE, NO REASON IS APPARENT WHY THE EMPLOYEE MENTIONED IN QUESTION 8, IF OTHERWISE ELIGIBLE, WOULD NOT BE ENTITLED TO THE WITHIN-GRADE PROMOTION TO THE SECOND RATE OF HIS GRADE. THE FACT THAT THE EFFECTIVE DATE OF THE WITHIN-GRADE INCREASE COINCIDES WITH THE EFFECTIVE DATE OF THE RETROACTIVE PAY INCREASE PROVIDED BY THE SAID PUBLIC LAW 201 WOULD APPEAR TO BE IMMATERIAL IN MAKING THE INITIAL ADJUSTMENTS REQUIRED UNDER SECTION 1 (B) (1), OF THE NEW ACT, 65 STAT. 612. CF. DECISION OF AUGUST 31, 1951, B-102982, 31 COMP. GEN. 62. ACCORDINGLY, QUESTION 8 IS ANSWERED IN THE AFFIRMATIVE.

9. AN EMPLOYEE IN A POSITION SUBJECT TO THE CLASSIFICATION ACT OF 1949 RECEIVED A STEP INCREASE (PERIODIC, LONGEVITY, OR SUPERIOR ACCOMPLISHMENT) DURING THE PERIOD BETWEEN THE EFFECTIVE DATE OF THE ACT AND THE DATE OF ITS ENACTMENT ( OCTOBER 24, 1951). WILL HIS BASIC COMPENSATION BE ADJUSTED AT THE NEW RATES TO COVER THE TIME IN GRADE AT EACH OF THE TWO PAY STEPS? IF NOT, HOW WILL IT BE COMPUTED?

RETROACTIVE ADJUSTMENT OF THE EMPLOYEES SALARY STATUS FOR THE PERIOD BETWEEN THE EFFECTIVE DATE OF PUBLIC LAW 201, AND THE DATE OF ITS ENACTMENT IN ACCORDANCE WITH THE ANSWERS TO THE ABOVE-STATED QUESTIONS, NECESSARILY WOULD REQUIRE APPLICATION OF THE INCREASED RATES TO EACH GRADE OR STEP WITHIN A GRADE OCCUPIED BY THE EMPLOYEE DURING SUCH PERIOD. THEREFORE, QUESTION 9 IS ANSWERED IN THE AFFIRMATIVE.

10. AS THE RESULT OF A SAVINGS CLAUSE IN THE CLASSIFICATION ACT OF 1949 AN EMPLOYEE, FOR EXAMPLE, IN GS-5, IS RECEIVING A RATE WHICH FALLS BETWEEN THE MAXIMUM SCHEDULED RATE AND THE FIRST LONGEVITY STEP FOR THE GRADE OF HIS POSITION. UNDER SECTION 1 (B) (2) (A) OF THE NEW ACT, HE IS MOVED TO THE FIRST LONGEVITY PERIOD ON THAT DATE? ( THE LAW REQUIRES THAT EACH THREE-YEAR LONGEVITY PERIOD BE SERVED AT A LONGEVITY RATE FOR THAT GRADE.) FOR EXAMPLE, IF THIS EMPLOYEE HAD SERVED TWO YEARS TOWARD A LONGEVITY STEP INCREASE AT THE IN-BETWEEN RATE, UNDER FORMER LAW AND CURRENT REGULATIONS, IS HE STILL REQUIRED TO SERVE THREE YEARS FROM THE DATE HE WAS ADVANCED TO THE FIRST LONGEVITY RATE EVEN THOUGH HE DID NOT RECEIVE A FULL STEP INCREASE? ( SEE SEC. 25.52 (B) AND SEC. 25.54 OF THE FEDERAL EMPLOYEES PAY REGULATIONS.)

UNDER THE PROVISIONS OF SECTION 703 (A) OF THE CLASSIFICATION ACT OF 1949, 63 STAT. 968, ONE OF THE CONDITIONS TO ELIGIBILITY FOR LONGEVITY STEP INCREASES IS THAT THE EMPLOYEE MUST HAVE COMPLETED THREE YEARS OF CONTINUOUS SERVICE AT THE MAXIMUM SCHEDULE RATE OF HIS GRADE OR AT ONE OF THE PRESCRIBED LONGEVITY STEPS. SINCE BY INITIAL ADJUSTMENT REQUIRED BY THE PROVISIONS OF SECTION 1 (B) (2) (A) OF PUBLIC LAW 201, 65 STAT. 612, THE EMPLOYEE IN QUESTION MOVED TO THE FIRST LONGEVITY RATE AS OF THE EFFECTIVE DATE OF THE ACT, IT FOLLOWS THAT HE MUST COMPLETE THREE YEARS OF CONTINUOUS SERVICE AT SUCH RATE BEFORE HE IS ELIGIBLE FOR ADVANCEMENT TO THE SECOND LONGEVITY RATE. QUESTION 10 IS ANSWERED ACCORDINGLY.

11. SECTION 1 (B) (2) (B) OF THE NEW ACT APPEARS TO RELATE ONLY TO GRADES WHICH HAVE LONGEVITY STEPS, I. E., GRADES OF THE CPC SCHEDULE AND GRADES 1 TO 10 IN SENATE REPORT NO. 560, JULY 20, 1951, ON S. 622, THAT " THE BILL MAKES ADEQUATE PROVISION TO INSURE THAT EVERY EMPLOYEE (ITALICS SUPPLIED) PAID UNDER THE CLASSIFICATION ACT OF 1949, AS AMENDED, WILL RECEIVE AN INCREASE IN COMPENSATION THROUGH THE INITIAL ADJUSTMENT TO THE NEW SCHEDULES," AND OTHER STATEMENTS ON PAGE 7 OF THAT REPORT, IS A MORE LIBERAL CONSTRUCTION INTENDED? IN A SPECIFIC CASE, AS THE RESULT OF A SAVINGS CLAUSE IN THE CLASSIFICATION ACT OF 1949, AN EMPLOYEE OCCUPYING A POSITION IN GRADE GS-11 IS RECEIVING $7600 PER ANNUM (A RATE ABOVE THE MAXIMUM SCHEDULED RATE FOR THAT GRADE.) TO WHAT EXTENT, IF ANY, IS HIS COMPENSATION ADJUSTED? SECTION 1 (B) (2) (B) OF THE NEW ACT, 65 STAT. 613, PROVIDES THAT:

IF HIS (AN EMPLOYEE-S) RATE IMMEDIATELY PRIOR TO THE EFFECTIVE DATE OF THIS ACT WAS IN EXCESS OF THE MAXIMUM LONGEVITY RATE OF THE GRADE, HE SHALL BE PAID AT A RATE EQUAL TO THE RATE AT WHICH HE WAS PAID IMMEDIATELY PRIOR TO SUCH DATE, INCREASED BY AN AMOUNT EQUAL TO THE AMOUNT OF THE INCREASE MADE BY THIS ACT IN SUCH MAXIMUM LONGEVITY RATE.

AS POINTED OUT IN THE DISCUSSION INCLUDED IN QUESTION 11, THE QUOTED SUB- SECTION RELATES ONLY TO MAXIMUM LONGEVITY RATES AND CONSEQUENTLY CAN HAVE APPLICATION ONLY TO GRADES WHICH HAVE LONGEVITY STEPS. ACCORDINGLY, IN THE SPECIFIC CASE MENTIONED IN QUESTION 11 NO ADJUSTMENT IN COMPENSATION IS PROPER.

12. AN EMPLOYEE IN GRADES GS-14 RECEIVED BASIC COMPENSATION OF $9600, THE ADJUSTED RATE FOR WHICH IS $10,400. HE WORKED OVERTIME DURING THE PERIOD FROM JULY 1951 TO DATE. SINCE BY LAW, NO OVERTIME CAN BE PAID ON A SALARY OF $10,330 OR MORE, MUST THE AMOUNT OF OVERTIME PAY HE RECEIVED DURING THIS PERIOD BE SET OFF AGAINST HIS NEW INCREASE OR REFUNDED?

13. ARE THE EMPLOYEES WHO, FOR EXAMPLE, BETWEEN JULY 8, AND OCTOBER 24, 1951, RECEIVED ADDITIONAL COMPENSATION (SUCH AS OVERTIME PAY OR NIGHT DIFFERENTIAL) COMPUTED ON THE BASIS OF THE RATES OF BASE PAY THEN IN EFFECT NOW ENTITLED TO THE DIFFERENCE BETWEEN (A) THE AMOUNT OF SUCH ADDITIONAL COMPENSATION ALREADY RECEIVED AND (B) THE AMOUNT OF SUCH ADDITIONAL COMPENSATION COMPUTED ON THE BASIS OF THE NEW RATES OF BASIC COMPENSATION WHICH ARE NOW RETROACTIVELY EFFECTIVE DURING THE PERIOD? FOR EXAMPLE, AN EMPLOYEE WORKED DURING THIS PERIOD X HOURS OF NIGHT DUTY FOR WHICH HE WAS PAID ADDITIONAL COMPENSATION AT 10 PERCENT OF HIS RATE OF BASE PAY. WILL HE NOW BE PAID THE DIFFERENCE BETWEEN (A) THIS AMOUNT AND (B) 10 PERCENT OF HIS NEW RETROACTIVELY EFFECTIVE RATE OF BASE PAY, FOR X HOURS?

14. UNDER EXISTING REGULATIONS OF THE COMMISSION ( PART 350--- TERRITORIAL POST DIFFERENTIALS AND TERRITORIAL COST-OF-LIVING ALLOWANCES, FEDERAL PERSONNEL MANUAL) ISSUED PURSUANT TO PROVISIONS OF LAW AND EXECUTIVE ORDER, AGENCIES ARE REQUIRED TO PAY, TO EMPLOYEES WHOSE RATES OF BASIC COMPENSATION ARE FIXED BY STATUTE WHO ARE STATIONED IN DESIGNATED TERRITORIAL AREAS, AND WHO MEET CERTAIN CONDITIONS NOT MATERIAL TO THIS QUESTION, A TERRITORIAL POST DIFFERENTIAL OR A TERRITORIAL COST-OF-LIVING ALLOWANCE. THE RATE OF ANY SUCH DIFFERENTIAL OR ALLOWANCE IS EXPRESSED AS A PERCENTAGE OF RATE OF BASIC COMPENSATION. FOR EXAMPLE, THE COST-OF- LIVING ALLOWANCE FOR ALASKA IS 25 PERCENT OF RATE OF BASIC COMPENSATION. SOME EMPLOYEES WHOSE RATES OF BASIC COMPENSATION ARE INCREASED RETROACTIVELY UNDER PUBLIC LAW 201 HAVE RECEIVED PAYMENTS OF TERRITORIAL POST DIFFERENTIAL OR COST-OF-LIVING ALLOWANCE PAYMENTS BASED ON SERVICE BETWEEN THE EFFECTIVE DATE AND THE ENACTMENT DATE OF THAT ACT. (A) DOES THE RETROACTIVE INCREASE IN THEIR RATES OF BASIC COMPENSATION HAVE AN EQUALLY RETROACTIVE EFFECT ON THE AMOUNT OF DIFFERENTIAL OR ALLOWANCE TO WHICH SUCH EMPLOYEES ARE ENTITLED ON THE BASIS OF TERRITORIAL SERVICE DURING THIS PERIOD? (B) SIMILARLY, DOES THE RETROACTIVE INCREASE IN RATES OF BASIC COMPENSATION OF EMPLOYEES IN POSITIONS SUBJECT TO THE CLASSIFICATION ACT HAVE RETROACTIVE EFFECT ON PAYMENTS OF ADDITIONAL COMPENSATION AT FOREIGN POSTS WHICH ARE DEPENDENT ON AN EMPLOYEE'S RATE OF BASIC COMPENSATION, SUCH AS FOREIGN POST DIFFERENTIAL, LIVING QUARTERS ALLOWANCE, AND COST-OF-LIVING ALLOWANCE?

UNDER THE FOREGOING ANSWERS TO QUESTIONS INVOLVING RETROACTIVE APPLICATIONS OF THE AMENDED COMPENSATION SCHEDULES, THE STATUS OF THE EMPLOYEE FOR ALL PAY PURPOSES MUST BE RECONSTRUCTED AND NECESSARY ADJUSTMENTS MADE TO REFLECT THE NET RESULT WHICH WOULD HAVE OBTAINED IN HIS CASE IF THE ACT HAD BEEN APPLIED CURRENTLY. FOR EXAMPLE, THE PRESCRIBED INCREASE IN MOST CASES IN THE BASIC RATES OF COMPENSATION WILL REDUCE RETROACTIVELY THE AMOUNT OF OVERTIME PREVIOUSLY PAID ON THE LOWER BASIC RATE; IN OTHER WORDS, THE EFFECT WILL BE TO OFFSET THE OVERTIME PAY AGAINST THE INCREASE IN BASE PAY. CONVERSELY ITEMS SUCH AS NIGHT DIFFERENTIAL, FOREIGN AND/OR TERRITORIAL COST-OF-LIVING ALLOWANCES, WHICH ARE BASED UPON A PERCENTAGE OF GROSS BASIC PAY, WOULD BE INCREASED RETROACTIVELY ALONG WITH THE BASIC COMPENSATION. ACCORDINGLY, QUESTIONS NUMBER 12 AND 13 AS WELL AS SUBPARTS (A) AND (B) OF QUESTION 14 ARE ANSWERED IN THE AFFIRMATIVE.

15. THE POSITION OF AN EMPLOYEE IN GS-9, SALARY $5350, WAS DOWNGRADED TO GS-7 ON AUGUST 24, 1951. IN ACCORDANCE WITH SECTION 25.103 (E) OF THE FEDERAL EMPLOYEES PAY REGULATIONS, THE AGENCY ,SAVED" THE SALARY OF $5350 TO THE EMPLOYEE UNDER THE CONDITIONS CITED IN THE REGULATIONS. SHOULD THE SALARY OF $5350 BE ADJUSTED RETROACTIVELY TO $5810?

16. UNDER THE CIRCUMSTANCES CITED IN QUESTION 15 A POSITION IS DOWNGRADED FROM GS-9 TO GS-7. THE INCUMBENT'S SALARY OF $4600 WAS "SAVED" FROM REDUCTION. IN THE NEW SCHEDULES, THE COMPARABLE STEP RATE FOR $4600 IN GS -9 IS $5060. THIS IS NOT A STANDARD WITHIN-GRADE RATE OR LONGEVITY STEP- RATE FOR GS-7. ASSUMING THAT THE PREVIOUS $4600 RATE IS REQUIRED TO BE ADJUSTED RETROACTIVELY TO $5060, WHAT, IF ANY, ADDITIONAL ADJUSTMENT IS REQUIRED?

ON THE EFFECTIVE DATE OF PUBLIC LAW 201, THE EMPLOYEE ILLUSTRATED IN QUESTION 15 WAS RECEIVING COMPENSATION AT THE MAXIMUM RATE OF GRADE GS 9 IN A POSITION WHICH AT THAT TIME PRESUMABLY WAS ALLOCATED IN THE PROPER GRADE. THEREFORE, THE SALARY RATE RECEIVED BY HIM AT THAT TIME WAS INCREASED BY OPERATION OF LAW TO THE CORRESPONDING SCHEDULED RATE SHOWN IN THE AMENDED COMPENSATION SCHEDULES. THUS, IT FOLLOWS THAT SUCH INCREASED RATE WAS "SAVED" UNDER SECTION 25.103 (E) OF THE FEDERAL EMPLOYEES PAY REGULATIONS. QUESTION 15 IS ANSWERED IN THE AFFIRMATIVE.

WITH RESPECT TO QUESTION 16, ADDITIONAL ADJUSTMENT IN THE INCREASED "SAVED RATE" IS NEITHER REQUIRED NOR AUTHORIZED. IT IS IMMATERIAL THAT THE ADJUSTED RATE IS NOT A STANDARD WITHIN-GRADE OR A LONGEVITY RATE OF THE LOWER GRADE TO WHICH THE POSITION WAS ALLOCATED. THE EMPLOYEE HAS RECEIVED THE INCREASE GRANTED BY THE ACT BY INITIAL ADJUSTMENT UPON THE BASIS OF THE GRADE GS-9 RATE, AND SUCH IS SAVED TO HIM SO LONG AS HE REMAINS AN INCUMBENT OF THE POSITION. QUESTION 16 IS ANSWERED ACCORDINGLY.

17. AN EMPLOYEE IN A CLASSIFICATION ACT POSITION RESIGNED FROM THE SERVICE EFFECTIVE ON OCTOBER 24, 1951, THE DATE OF ENACTMENT OF PUBLIC LAW 201. IS HE ENTITLED TO PAY AT THE ADJUSTED RATE RETROACTIVELY TO THE DATE THAT LAW BECAME EFFECTIVE IN HIS AGENCY THROUGH OCTOBER 24, 1951?

UNDER SECTION 6 (B) OF THE NEW ACT, EMPLOYEES IN THE SERVICE OF THE UNITED STATES, INCLUDING THE ARMED FORCES OR THE MUNICIPAL GOVERNMENT OF THE DISTRICT OF COLUMBIA, ON THE DATE OF ENACTMENT OF THE SAID ACT ARE ENTITLED TO BE PAID AT THE RATES OF COMPENSATION PRESCRIBED THEREIN (SEE THE ANSWER TO QUESTION 3 SUPRA). ACCORDINGLY, QUESTION 17 IS ANSWERED IN THE AFFIRMATIVE.

NO ACTION WILL BE REQUIRED, IN MOST INSTANCES, BY THE EMPLOYEES OR FORMER EMPLOYEES IN ORDER FOR THE AGENCIES TO EFFECT PAYMENT OF THE RETROACTIVE COMPENSATION, AND IT IS NOT NECESSARY, GENERALLY, FOR THE EMPLOYEES TO FILE SPECIFIC CLAIM EITHER WITH THE GENERAL ACCOUNTING OFFICE OR THE EMPLOYING AGENCY OR FORMER EMPLOYING AGENCY. ORDINARILY THE AGENCY OBLIGATED TO MAKE PAYMENT MAY DO SO UPON A DETERMINATION OF ENTITLEMENT AND THE CURRENT ADDRESS OF THE INDIVIDUAL. IN CASES SUCH AS THAT ILLUSTRATED IN QUESTION 1, THE EMPLOYEE HAVING TRANSFERRED FROM AGENCY A TO AGENCY B, DURING THE RETROACTIVE PERIOD, AGENCY B SHOULD PAY FOR THE TIME THE EMPLOYEE WAS ON ITS ROLLS PRIOR TO OCTOBER 24, 1951, AND CERTIFY TO AGENCY A THAT THE EMPLOYEE WAS ON THE ROLLS OF AGENCY B ON THE APPROVAL DATE OF THE ACT, FURNISHING THE EMPLOYEE'S CURRENT ADDRESS. IN CASES WHERE THE EMPLOYEE HAS SEPARATED FROM THE SERVICE SUBSEQUENT TO OCTOBER 24, 1951, THE LAST EMPLOYING AGENCY SHOULD OBTAIN HIS CURRENT ADDRESS.

IN A CASE SUCH AS THAT ILLUSTRATED IN QUESTION 7 WHERE THE EMPLOYEE TRANSFERRED TO ANOTHER AGENCY SUBSEQUENT TO THE PROMOTION, THE FORMER AGENCY MUST NOTIFY THE AGENCY WHERE THE EMPLOYEE IS NOW EMPLOYED IN ORDER THAT THE EMPLOYEE'S PAY STATUS MAY BE PROPERLY ADJUSTED.