B-124840, AUGUST 30, 1955, 35 COMP. GEN. 117

B-124840: Aug 30, 1955

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IS ENTITLED TO THE SIX PERCENT RETROACTIVE SALARY INCREASE PROVIDED THEREIN AND AS LONG AS HE CONTINUES IN THE FIELD SERVICE IS PRECLUDED BY SECTION 11 OF THE FEDERAL EMPLOYEES SALARY INCREASE ACT OF 1955 FROM RECEIVING THE PAY INCREASE PROVIDED IN THAT ACT. A POSTAL FIELD SERVICE EMPLOYEE WHO WAS TRANSFERRED TO THE DEPARTMENTAL SERVICE IN WASHINGTON ON JUNE 20. IS ENTITLED TO THE SIX PERCENT RETROACTIVE COMPENSATION INCREASE PROVIDED IN THE POSTAL FIELD SERVICE COMPENSATION ACT OF 1955. WAS FIXED AT A RATE WHICH DID NOT INCLUDE THE INCREASE PROVIDED BY SECTION 701 OF THE POSTAL FIELD SERVICE COMPENSATION ACT OF 1955 IS NOT PRECLUDED BY SECTION 11 OF THE FEDERAL EMPLOYEES SALARY INCREASE ACT OF 1955 FROM RECEIVING THE PAY INCREASE PROVIDED IN THAT ACT RETROACTIVE TO THE DATE OF TRANSFER.

B-124840, AUGUST 30, 1955, 35 COMP. GEN. 117

COMPENSATION - POSTAL SERVICE - INTRAOFFICE TRANSFERS - PAY INCREASE ACTS AN EMPLOYEE WHO TRANSFERRED FROM THE DEPARTMENTAL SERVICE IN WASHINGTON TO A POSTAL FIELD SERVICE ESTABLISHMENT ON JUNE 19, 1955, THE EFFECTIVE DATE OF SECTION 701 (A) OF THE POSTAL FIELD SERVICE COMPENSATION ACT OF 1955, IS ENTITLED TO THE SIX PERCENT RETROACTIVE SALARY INCREASE PROVIDED THEREIN AND AS LONG AS HE CONTINUES IN THE FIELD SERVICE IS PRECLUDED BY SECTION 11 OF THE FEDERAL EMPLOYEES SALARY INCREASE ACT OF 1955 FROM RECEIVING THE PAY INCREASE PROVIDED IN THAT ACT. A POSTAL FIELD SERVICE EMPLOYEE WHO WAS TRANSFERRED TO THE DEPARTMENTAL SERVICE IN WASHINGTON ON JUNE 20, 1955, IS ENTITLED TO THE SIX PERCENT RETROACTIVE COMPENSATION INCREASE PROVIDED IN THE POSTAL FIELD SERVICE COMPENSATION ACT OF 1955; HOWEVER, THE RIGHT TO THE PAY INCREASE PROVIDED IN THAT ACT TERMINATED ON DATE OF TRANSFER. A POSTAL SERVICE EMPLOYEE WHOSE SALARY, ON TRANSFER TO A POSITION IN THE POST OFFICE DEPARTMENT IN WASHINGTON ON JUNE 20, 1955, WAS FIXED AT A RATE WHICH DID NOT INCLUDE THE INCREASE PROVIDED BY SECTION 701 OF THE POSTAL FIELD SERVICE COMPENSATION ACT OF 1955 IS NOT PRECLUDED BY SECTION 11 OF THE FEDERAL EMPLOYEES SALARY INCREASE ACT OF 1955 FROM RECEIVING THE PAY INCREASE PROVIDED IN THAT ACT RETROACTIVE TO THE DATE OF TRANSFER.

TO LEROY P. AFDEM, POST OFFICE DEPARTMENT, AUGUST 30, 1955:

YOUR LETTER OF JULY 25, 1955, AEU:LPA, REQUESTS OUR DECISION CONCERNING THE PROPRIETY OF CERTIFYING FOR PAYMENT TWO SUPPLEMENTAL PAYROLL VOUCHERS THEREWITH SUBMITTED, ONE IN FAVOR OF MR. JAMES G. FLYNN AND THE OTHER IN FAVOR OF MISS EFFIE LOVE.

REGARDING MR. FLYNN'S CASE, YOUR LETTER STATES THAT:

MR. JAMES G. FLYNN WAS PROMOTED FROM GS-7, $4955, BUREAU OF FINANCE, DIVISION OF POSTAL SAVINGS, WASHINGTON, D.C., TO GS-9, $5560, REGIONAL CONTROLLER'S OFFICE, SAN FRANCISCO, CALIFORNIA,EFFECTIVE JUNE 19, 1955. HE WAS PAID RETROACTIVE SALARY UNDER PUBLIC LAW 68, AT 6 PERCENT FROM MARCH 1, 1955, TO JUNE 18, 1955, AND SALARY FOR THE PERIOD JUNE 19, 1955, TO JULY 2, 1955, AT THE RATE OF $5894 PER ANNUM.

MAY THE ATTACHED SUPPLEMENTAL PAYROLL FOR THE DIFFERENCE IN RETROACTIVE SALARY UNDER PUBLIC LAW 68 (6 PERCENT FROM 3/1-6/18/55 AND PUBLIC LAW 94 ( 7-1/2 PERCENT FROM 3/13-6/18/55 ( BE CERTIFIED? SINCE MR. FLYNN WAS ON THE ROLLS OF THE SAN FRANCISCO REGION ON THE FIRST DAY OF THE FIRST PAY PERIOD ( 6/19-7/2/55 ( WHICH BEGAN AFTER THE DATE OF ENACTMENT OF PUBLIC LAW 68 ( 6/10/55 ( IT APPEARS THAT HE WOULD BE ELIGIBLE FOR THE BENEFITS OF PUBLIC LAW 68 AND EXCLUDED FROM THE BENEFITS OF PUBLIC LAW 94.

IF MR. FLYNN IS ELIGIBLE FOR THE BENEFITS OF PUBLIC LAW 94 SHOULD HIS SALARY FOR THE PERIOD 6/19-7/2/55, AT GS-9 IN THE SAN FRANCISCO REGION BE COMPUTED AT $5894 ($5560 PLUS 6 PERCENT), $5980 ($5560 PLUS $420), OR AT THE NEXT HIGHER STEP IN GS-9, $6026 ($5980 RAISED TO THE NEXT STEP IN THE REGIONAL GRADES).

SECTION 810 OF THE POSTAL FIELD SERVICE COMPENSATION ACT OF 1955, APPROVED JUNE 10, 1955, 69 STAT. 130, 39 U.S.C. 951 NOTE, IS, IN PART, AS FOLLOWS:

(A) THIS SECTION SHALL TAKE EFFECT ON THE DATE OF ENACTMENT OF THIS ACT.

(B) THIS ACT, EXCEPT TITLE VII, SECTION 607 (D) AND THIS SECTION, SHALL TAKE EFFECT ON SUCH DATE AS MAY BE SPECIFIED BY THE POSTMASTER GENERAL, BUT NOT LATER THAN ONE HUNDRED AND EIGHTY DAYS AFTER THE DATE OF ITS ENACTMENT.

(C) TITLE VII AND SECTION 607 (D) SHALL TAKE EFFECT ON THE FIRST DAY OF THE FIRST PAY PERIOD WHICH BEGINS AFTER THE DATE OF ENACTMENT OF THIS ACT.

SECTION 701 (A) OF THAT ACT, 69 STAT. 128, 39 U.S.C. 1021, PROVIDES:

THE BASIC SALARY IN EFFECT IMMEDIATELY PRIOR TO THE EFFECTIVE DATE OF THIS SECTION, OF EACH EMPLOYEE PAID UNDER THE ACT OF JULY 6, 1945, AS AMENDED (39 U.S.C., SECS. 858, 859, 861A, 862, 863-866, 868, 869), OR UNDER THE CLASSIFICATION ACT OF 1949, AS AMENDED, SHALL BE INCREASED BY 6 PERCENTUM EFFECTIVE MARCH 1, 1955 (ROUNDED TO THE NEAREST DOLLAR IN THE CASE OF PER ANNUM RATES AND TO THE NEAREST ONE HALF CENT IN THE CASE OF HOURLY RATES, A HALF-DOLLAR OR ONE-QUARTER OF A CENT BEING ROUNDED TO THE NEXT HIGHEST DOLLAR OR ONE-HALF CENT, RESPECTIVELY). * * *

THE SIX PERCENT COMPENSATION INCREASE PROVIDED FOR UNDER SECTION 701 (A) APPLIES TO ALL PERSONS EMPLOYED IN THE POSTAL FIELD SERVICE ON THE EFFECTIVE DATE OF THAT SECTION--- THE FIRST DAY OF THE FIRST PAY PERIOD AFTER THE DATE OF ENACTMENT OF PUBLIC LAW 68--- REGARDLESS OF WHETHER THEY OCCUPY POSITIONS UNDER THE ACT OF JULY 6, 1945, 59 STAT. 435, AS AMENDED, OR THE CLASSIFICATION ACT OF 1949, 63 STAT. 954, AS AMENDED. FOR EMPLOYEES OCCUPYING CLASSIFIED POSITIONS IN POSTAL FIELD SERVICE ESTABLISHMENTS THE SECTION BECAME EFFECTIVE ON JUNE 19, 1955--- THE FIRST DAY OF THEIR FIRST PAY PERIOD FOLLOWING THE DATE OF ENACTMENT OF PUBLIC LAW 68. SINCE MR. FLYNN HELD A CLASSIFIED POSITION IN A POSTAL FIELD SERVICE ESTABLISHMENT ON JUNE 19, 1955, THE EFFECTIVE DATE OF SECTION 701 (A), HE IS ELIGIBLE FOR THE SIX PERCENT RETROACTIVE PAY INCREASE PROVIDED FOR IN THAT SECTION. MOREOVER, AS LONG AS HE CONTINUES IN SUCH POSITION HE WILL BE ENTITLED TO THE INCREASED PAY PROVIDED FOR IN SECTION 701 (A).

SECTION 11 OF THE FEDERAL EMPLOYEES SALARY INCREASE ACT OF 1955, APPROVED JUNE 28, 1955, 69 STAT. 179, SPECIFICALLY PRECLUDES THE PAYMENT OF THE SALARY INCREASES PROVIDED IN THAT ACT FOR ANY PERIOD THAT AN EMPLOYEE WHO IS SUBJECT TO THE CLASSIFICATION ACT OF 1949, AS AMENDED, IS ENTITLED TO AN INCREASE IN BASIC COMPENSATION UNDER SECTION 701 OF THE POSTAL FIELD SERVICE COMPENSATION ACT OF 1955. WE CONCLUDE, THEREFORE, THAT AS LONG AS MR. FLYNN'S EMPLOYMENT IN THE POSTAL FIELD SERVICE CONTINUES HE WILL NOT BE ELIGIBLE FOR A SALARY INCREASE UNDER THE FEDERAL EMPLOYEES SALARY INCREASE ACT OF 1955. ACCORDINGLY, THE VOUCHER IN FAVOR OF MR. FLYNN MAY NOT BE CERTIFIED FOR PAYMENT.

CONCERNING THE CASE OF MISS LOVE, YOU SAY THAT:

MISS EFFIE LOVE WAS TRANSFERRED AT GS-4, $3175, FROM THE OFFICE OF THE EXECUTIVE ASSISTANT TO THE DEPUTY POSTMASTER GENERAL, WASHINGTON, D.C., TO THE MEMPHIS REGIONAL OPERATIONS OFFICE ON MAY 4, 1955, AND TRANSFERRED AT GS-4, $3175 FROM THE MEMPHIS REGIONAL OFFICE TO THE OFFICE OF THE CHIEF POST OFFICE INSPECTOR AT WASHINGTON, D.C., ON JUNE 20, 1955. SHE WAS PAID RETROACTIVE SALARY FOR THE PERIOD MARCH 1 TO JUNE 18, 1955, AT THE RATE OF $3366 PER ANNUM ($3175 PLUS 6 PERCENT). SHE WAS PAID FOR THE PERIOD JUNE 20, 1955, TO JULY 2, 1955, AT THE RATE OF $3175 PER ANNUM.

SHOULD MISS LOVE'S SALARY FOR THE PERIOD JUNE 20 TO JULY 2, 1955, BE COMPUTED AT THE NEXT STEP TO $3366 ($3415), AND INCREASED UNDER PUBLIC LAW 94 TO $3670? THE ATTACHED ROLL IS FOR THE DIFFERENCE BETWEEN $3415 AND $3670 FOR THE PERIOD JUNE 20 TO JULY 2, 1955. SINCE THE EMPLOYEE TRANSFERRED BEFORE THE ENACTMENT OF PUBLIC LAW 94 IT APPEARS THAT HER SALARY SHOULD HAVE BEEN SET AT $3415 THE NEXT STEP TO $3366, HER SALARY AT MEMPHIS.

SINCE MISS LOVE WAS EMPLOYED IN A CLASSIFIED POSITION IN A POSTAL FIELD SERVICE ESTABLISHMENT ON JUNE 19, 1955, THE EFFECTIVE DATE OF SECTION 701 OF THE POSTAL FIELD SERVICE COMPENSATION ACT OF 1955, SHE IS ENTITLED TO THE SIX PERCENT RETROACTIVE COMPENSATION INCREASE PROVIDED UNDER THAT SECTION. HOWEVER, HER SUBSEQUENT TRANSFER ON JUNE 20 TO A POSITION IN THE POST OFFICE DEPARTMENT IN WASHINGTON TERMINATED HER STATUTORY ENTITLEMENT TO THE PAY INCREASE PROVIDED UNDER THAT ACT. WHILE IT MAY HAVE BEEN WITHIN THE ADMINISTRATIVE DISCRETION TO HAVE FIXED HER RATE OF COMPENSATION UPON TRANSFER AT $3,415 PER ANNUM (SEE FEDERAL PERSONNEL PAY REGULATIONS 25.103), SHE HAD NO ENFORCEABLE RIGHT TO THAT RATE UPON TRANSFER AND THE ADMINISTRATIVE ACTION IN TRANSFERRING HER AT THE LOWER RATE OF $3,175 PER ANNUM WAS PROPER. MOREOVER, IN VIEW OF THE RESTRICTION CONTAINED IN SECTION 11 OF THE FEDERAL EMPLOYEES SALARY INCREASE ACT OF 1955, THE PAYMENT OF INCREASES UNDER BOTH THAT ACT AND THE POSTAL FIELD SERVICE COMPENSATION ACT OF 1955 IS PRECLUDED. HENCE, IF SHE HAD BEEN TRANSFERRED AT THE $3,415 RATE, SHE WOULD NOT HAVE BEEN ENTITLED, IN ADDITION THERETO, TO THE INCREASE PROVIDED UNDER THE FEDERAL EMPLOYEES SALARY INCREASE ACT OF 1955. IT DOES APPEAR, HOWEVER, THAT AFTER ENACTMENT OF PUBLIC LAW 94, MISS LOVE BECAME ENTITLED TO THE PAY INCREASE PROVIDED UNDER THAT LAW AND THAT SUCH INCREASE--- COMPUTED UPON HER ANNUAL SALARY RATE OF $3,175--- WOULD BE PAYABLE RETROACTIVELY TO JUNE 20, 1955, THE DATE OF HER TRANSFER TO THE POST OFFICE DEPARTMENT IN WASHINGTON. ACTION UPON THE VOUCHER IN FAVOR OF MISS LOVE SHOULD BE TAKEN ACCORDINGLY.