B-138469, APRIL 2, 1959, 38 COMP. GEN. 660

B-138469: Apr 2, 1959

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

IN THE GRADE TO WHICH DEMOTED IS ENTITLED TO CREDIT FOR SERVICE EARNED AT THE MAXIMUM STEP IN A HIGHER GRADE TOWARDS SUCCEEDING LONGEVITY STEP-INCREASES UNDER THE ACT OF SEPTEMBER 1. THE CLAIM WAS REFERRED HERE FOR US TO DETERMINE WHETHER IT SHOULD BE SETTLED UNDER OUR DECISION B-127900. EMPLOYMENT DATA FURNISHED IN MISS CUMMINGS' CASE IS AS FOLLOWS: 4-14-34 ENTRANCE ON DUTY IN FEDERAL SERVICE. * * * * * * * * 10-16-41 CAF-4. (THIS WAS NOT A PERSONNEL ACTION.) 4-16-43 FURLOUGH FOR MILITARY SERVICE. (THIS WAS THE PERSONNEL ACTION TAKEN AT THE EXPIRATION OF ANNUAL LEAVE.) 6-30-45 TERMINATION (LIQUIDATION OF AGENCY). (THIS WAS A PERSONNEL ACTION TAKEN AT THE TIME THE AGENCY WAS LIQUIDATED.) 12-3 45 RELEASE FROM MILITARY SERVICE.

B-138469, APRIL 2, 1959, 38 COMP. GEN. 660

CIVILIAN EMPLOYEES - COMPENSATION - LONGEVITY INCREASES - HIGHER GRADE SERVICE AT MAXIMUM RATE PRIOR TO DEMOTION AN EMPLOYEE WHO RECEIVED A LONGEVITY STEP-INCREASE PRIOR TO SEPTEMBER 1, 1954, IN THE GRADE TO WHICH DEMOTED IS ENTITLED TO CREDIT FOR SERVICE EARNED AT THE MAXIMUM STEP IN A HIGHER GRADE TOWARDS SUCCEEDING LONGEVITY STEP-INCREASES UNDER THE ACT OF SEPTEMBER 1, 1954, WHICH AMENDED SECTION 703 OF THE CLASSIFICATION ACT OF 1949, 5 U.S.C. 1123 (A), TO PERMIT RETENTION FOR LONGEVITY PURPOSES OF SERVICE CREDITS EARNED AT THE MAXIMUM OR AT A LONGEVITY STEP IN A HIGHER GRADE PRIOR TO DEMOTION; HOWEVER, THE PAY RECOMPUTATION BASED ON ADDITIONAL LONGEVITY PERIOD COMPLETED PRIOR TO SEPTEMBER 1, 1954, MAY NOT BE GIVEN RETROACTIVE EFFECT FOR ANY PERIOD PRIOR TO SEPTEMBER 12, 1954, THE EFFECTIVE DATE OF THE AMENDATORY ACT OF SEPTEMBER 1, 1954. B-127900, JUNE 9, 1956, UNPUBLISHED DECISION, OVERRULED.

TO THE ADMINISTRATOR, VETERANS ADMINISTRATION, APRIL 2, 1959:

ON OCTOBER 29, 1958, THE DIRECTOR OF THE AUDIT AND ACCOUNTING SERVICE OF YOUR ADMINISTRATION REFERRED THE CLAIM OF MISS KATHLEEN CUMMINGS FOR ADDITIONAL SALARY FOR ADJUSTED LONGEVITY STEP-INCREASES TO OUR CLAIMS DIVISION FOR SETTLEMENT. THE CLAIM WAS REFERRED HERE FOR US TO DETERMINE WHETHER IT SHOULD BE SETTLED UNDER OUR DECISION B-127900, JUNE 5, 1956, OR OUR DECISION B-122859, JUNE 20, 1955, 34 COMP. GEN. 687.

EMPLOYMENT DATA FURNISHED IN MISS CUMMINGS' CASE IS AS FOLLOWS:

4-14-34 ENTRANCE ON DUTY IN FEDERAL SERVICE.

* * * * * * * * 10-16-41 CAF-4, $1,800 PER ANNUM. 2-1-42 CAF-5, $2,000 PER ANNUM. (REALLOCATION SUBSTANTIATED BY

DOCUMENTS.) 4-16-42 PROMOTION TO CAF-7, $2,600 PER ANNUM. 10-1-42 PROMOTION TO CAF-9, $3,200 PER ANNUM. 2-9-43 ENTRANCE INTO MILITARY SERVICE. (THIS WAS NOT A PERSONNEL

ACTION.) 4-16-43 FURLOUGH FOR MILITARY SERVICE. (THIS WAS THE PERSONNEL ACTION

TAKEN AT THE EXPIRATION OF ANNUAL LEAVE.) 6-30-45 TERMINATION (LIQUIDATION OF AGENCY). (THIS WAS A PERSONNEL

ACTION TAKEN AT THE TIME THE AGENCY WAS LIQUIDATED.) 12-3 45 RELEASE FROM MILITARY SERVICE. (TERMINAL LEAVE THROUGH

JANUARY 16, 1946.) 1-2-46 REAPPOINTMENT AS CAF-7, $3,640 ( MAXIMUM). 13-48 CHANGE TO LOWER GRADE, CAF-5, $3,397.20 ( MAXIMUM). 4-17-49 PROMOTION, CAF-6, $4,103.40 ( MAXIMUM). 5-13-51 CHANGE TO LOWER GRADE, CAF-5, $3,850 ( MAXIMUM). 12-11-51 SEPARATION- - MILITARY SERVICE. 2-15- 54 RESTORATION AFTER MILITARY SERVICE, CAF 5, $4,160 ( MAXIMUM). 5-23-54

FIRST LONGEVITY FROM $4,160 TO $4,285. 6-2-57 SECOND LONGEVITY FROM $4,615 TO $4,750. 7-14-57 PROMOTION TO GS-7, $4,930.

THE EMPLOYEE WAS PROPERLY GRANTED HER FIRST LONGEVITY STEP-INCREASE ON MAY 23, 1954 (UNDER THE LAW IN EFFECT AT THAT TIME), AFTER COMPLETING THREE YEARS OF SERVICE AT THE MAXIMUM RATE OF GRADE CAF-5 WITHOUT A CHANGE IN GRADE OR RATE OF BASIC COMPENSATION.

EFFECTIVE SEPTEMBER 12, 1954, SUBSECTION (A) OF SECTION 703 OF THE CLASSIFICATION ACT OF 1949, AS AMENDED, 5 U.S.C. 1123A, WAS FURTHER AMENDED BY STRIKING OUT THE WORDS "CHANGE OF GRADE OR RATE OF BASIC COMPENSATION EXCEPT SUCH CHANGE AS MAY BE PRESCRIBED BY ANY PROVISION OF LAW OF GENERAL APPLICATION" AND INSERTING IN LIEU THEREOF THE WORDS "INCREASE IN GRADE OR RATE OF BASIC COMPENSATION EXCEPT SUCH INCREASE MAY BE PRESCRIBED BY ANY PROVISION OF LAW OF GENERAL PLICATION.'THE ABOVE EMPLOYMENT DATA SHOWS THAT MISS CUMMINGS COMPLETED THREE 3-YEAR PERIODS OF SERVICE FOR LONGEVITY STEP-INCREASE CREDIT PURPOSES IN GRADE CAF-5 AS FOLLOWS: JANUARY 2, 1946, THROUGH JANUARY 1, 1949 (SEE 33 COMP. GEN. 271). APRIL 17, 1949, THROUGH APRIL 16, 1952. * (SERVICE FROM JANUARY 2, 1949 TO APRIL 17, 1949, BS NOT CREDITABLE BECAUSE OF THE PROMOTION TO CAF- 6 (SEE 35 COMP. GEN. 121).) APRIL 17, 1952, THROUGH APRIL 16, 1955.

IN 34 COMP. GEN. 687 WE SAID SINCE THE AMENDATORY LANGUAGE HAD AS ITS PURPOSE THE RETENTION OF SERVICE CREDITS EARNED AT A MAXIMUM OR LONGEVITY STEP IN A HIGHER GRADE UPON DEMOTION, SERVICE RENDERED AT THE MAXIMUM STEP OR A LONGEVITY STEP IN A HIGHER GRADE PRIOR TO THE DEMOTION TO THE LOWER GRADE IS CREDITABLE TOWARDS AN EMPLOYEE'S NEXT LONGEVITY STEP-INCREASE IN THE GRADE TO WHICH DEMOTED BUT RECOMPUTATION FOR PAY PURPOSES WILL NOT BE EFFECTIVE PRIOR TO SEPTEMBER 12, 1954. UPON THE BASIS OF THAT DECISION THE SERVICE AT THE MAXIMUM STEP OF CAF 6 PRIOR TO MISS CUMMINGS' DEMOTION TO CAF-5 IS CREDITABLE TOWARD HER SECOND LONGEVITY INCREASE IN CAF-5. HOWEVER, WHILE THE SECOND LONGEVITY PERIOD WAS COMPLETED ON APRIL 16, 1952, THE PAY RECOMPUTATION FOR THE SECOND LONGEVITY STEP RATE MAY NOT BE GIVEN RETROACTIVE EFFECT PRIOR TO SEPTEMBER 12, 1954, THE EFFECTIVE DATE OF THE ABOVE AMENDATORY LANGUAGE TO THE CLASSIFICATION ACT. THE THIRD LONGEVITY STEP-INCREASE IN CAF-5 SHOULD BE MADE EFFECTIVE ON APRIL 24, 1955. THE ABOVE LONGEVITY CREDITS CONFORM WITH OUR DECISION 34 COMP. GEN. 687 AND ANY LANGUAGE IN OUR DECISION OF JUNE 5, 1956, B-127900, WHICH INDICATES A DIFFERENT CONCLUSION SHOULD NO LONGER BE FOLLOWED.

AS MISS CUMMINGS IS STILL EMPLOYED BY YOUR ADMINISTRATION, WE ARE RETURNING THE VOUCHER FOR COMPUTATION AND PAYMENT UPON THE BASIS OF OUR DECISION 34 COMP. GEN. 687, AS AFFIRMED ABOVE.