B-144259, NOV. 28, 1961

B-144259, NOV. 28, 1961

TO MR. EARL F. GLENN:

YOUR LETTER OF NOVEMBER 6, 1961, ASKS WHETHER PUBLIC LAW 87-299, APPROVED SEPTEMBER 26, 1961, WOULD AFFECT OUR DECISION OF NOVEMBER 3, 1960, B- 144259, CONCERNING YOUR CLAIM FOR AN ADDITIONAL AMOUNT IN CONNECTION WITH YOUR SALARY RATE RETENTION AS AN EMPLOYEE OF THE INTERNAL REVENUE SERVICE, UNDER PUBLIC LAW 594, APPROVED JUNE 18, 1956.

PUBLIC LAW 87-299, APPROVED SEPTEMBER 26, 1961, CITED IN THE NEWS CLIPPING TRANSMITTED WITH YOUR LETTER, RELATES TO H.R. 6141, A BILL WHICH DOES NOT PERTAIN TO SALARY RETENTION. APPARENTLY THE CLIPPING SHOULD HAVE CITED H.R. 7043 WHICH BECAME PUBLIC LAW 87-270, APPROVED SEPTEMBER 21, 1961. THE LATTER STATUTE AMENDS THE CLASSIFICATION ACT OF 1949, AS IT WAS AMENDED BY PUBLIC LAW 85-737, 5 U.S.C. 1107. YOUR RIGHT TO SALARY RETENTION ACCRUED UNDER AN EARLIER STATUTE, NAMELY, PUBLIC LAW 594, 70 STAT. 291, APPROVED JUNE 18, 1956, AND SECTION 2 OF PUBLIC LAW 85-737 EXPRESSLY SAVES RIGHTS VESTED UNDER THE EARLIER LAW. IN PERTINENT PART SECTION 2 READS AS FOLLOWS:

"* * * SHALL BE GRANTED, EFFECTIVE AS OF THE FIRST DAY OF THE FIRST PAY PERIOD WHICH BEGINS AFTER THE DATE OF ENACTMENT OF THIS SECTION(IF HE CONTINUES TO HOLD SUCH POSITION ON SUCH FIRST DAY OF SUCH FIRST PAY PERIOD), THE RATE OF BASIC COMPENSATION TO WHICH HE WAS ENTITLED IMMEDIATELY PRIOR TO SUCH CLASSIFICATION OF HIS POSITION (OR, IN THE CASE OF MORE THAN ONE RECLASSIFICATION OF SUCH POSITION, THE DATE OF THE FIRST OF ANY SUCH RECLASSIFICATIONS), INCLUDING ANY INCREASES IN SUCH RATE OF BASIC COMPENSATION PROVIDED BY LAW AT ANY TIME WHILE SUCH OFFICER OR EMPLOYEE IS IN SUCH POSITION, UNTIL (I) HE LEAVES SUCH POSITION OR (II) HE IS ENTITLED TO RECEIVE BASIC COMPENSATION AT A HIGHER RATE BY REASON OF THE OPERATION OF THIS ACT; * * *.'

IT FOLLOWS THAT WE MUST LOOK TO PUBLIC LAW 594, TO ASCERTAIN YOUR RIGHT TO PAYMENT OF THE RETAINED SALARY RATE AFTER YOUR DEMOTION. EXAMINATION OF THAT STATUTE DISCLOSES THAT AFTER SETTING FORTH THE CONDITIONS UNDER WHICH ITS PROVISIONS APPLY, IT FURTHER PROVIDES, IN PERTINENT PART, AS FOLLOWS:

"SEC. 2. THE AMENDMENT MADE BY THE FIRST SECTION OF THIS ACT TO SECTION 507 OF THE CLASSIFICATION ACT OF 1949, AS AMENDED---

"/1) SHALL NOT BE CONSTRUED TO AFFECT (A) THE SAVED RATE OF BASIC COMPENSATION DETERMINED, AT ANY TIME PRIOR TO THE DATE OF ENACTMENT OF THIS ACT, FOR ANY OFFICER OR EMPLOYEE UNDER AND IN ACCORDANCE WITH SUCH SECTION 507, AS ENACTED BY THE ACT OF JUNE 18, 1956 (70 STAT. 291; PUBLIC LAW 594, EIGHTY-FOURTH CONGRESS), AND (B) THE RIGHT OF SUCH OFFICER OR EMPLOYEE TO RECEIVE FOR ANY PERIOD, UNDER AND IN ACCORDANCE WITH SUCH SECTION 507 AS SO ENACTED, THE PAYMENT OF SUCH BASIC COMPENSATION SO DETERMINED; AND

"/2) SHALL NOT BE CONSTRUED TO DEPRIVE ANY OFFICER OR EMPLOYEE OF ANY BENEFIT, UNDER AND IN ACCORDANCE WITH SUCH SECTION 507 AS SO ENACTED, TO WHICH HE WAS ENTITLED PRIOR TO THE DATE OF ENACTMENT OF THIS ACT, * * *"

IT IS OBVIOUS FROM THE QUOTED LANGUAGE THAT REGARDLESS OF THE EARLIER DATE OF YOUR DEMOTION, THE SALARY ADJUSTMENT AUTHORIZED MAY BE MADE EFFECTIVE NOT EARLIER THAN THE FIRST PAY PERIOD WHICH BEGAN AFTER THE DATE OF THE ACT WHICH WAS JUNE 18, 1956.

THE RECORDS SHOW THAT YOUR SALARY RATE WAS ADJUSTED EFFECTIVE JULY 1, 1956, WHICH DATE APPARENTLY WAS THE BEGINNING OF THE FIRST PAY PERIOD AFTER JUNE 18, 1956. THEREFORE, YOU HAVE BEEN PAID ALL SALARY TO WHICH YOU WERE ENTITLED AND AS YOUR RIGHTS WERE NEITHER DIMINISHED BY PUBLIC LAW 85-737 NOR ENLARGED BY PUBLIC LAW 87-270, OUR DECISION OF NOVEMBER 3, 1960, B-144259, TO YOU, IS CORRECT.