B-147718, JAN. 11, 1962

B-147718: Jan 11, 1962

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AS A RESULT OF A GRADED SALARY AND WAGE SURVEY THE POSITION YOU OCCUPIED WAS DOWNGRADED FROM GRADE GS-10 TO GRADE GS-9. BECAUSE OF A PROCEDURAL ERROR YOU WERE REPROMOTED. THE POSITION YOU OCCUPIED WAS AGAIN CHANGED TO A LOWER GRADE GS-9. YOU BELIEVE THAT YOU ARE ENTITLED TO SALARY ADJUSTMENT FOR THE PERIOD MARCH 13. THE PRIMARY PURPOSE OF WHICH AMENDMENT WAS TO PROVIDE THAT EMPLOYEES WHO PREVIOUSLY HAD BEEN ENTITLED TO SAVED SALARIES UNDER PUBLIC LAW 85-737. BY THE SALARY INCREASE ACT OF 1958 WAS MERELY VALIDATED BY PUBLIC LAW 87-270. THE AUTHORITY FOR THE PRESERVATION OF THE RATE OF BASIC COMPENSATION IN YOUR CASE BECAUSE OF A DOWNGRADING IS CONTAINED IN SECTION 507 OF THE CLASSIFICATION ACT OF 1949.

B-147718, JAN. 11, 1962

TO MR. F. BARRY SHERWOOD:

THIS REFERS TO YOUR LETTER OF NOVEMBER 16, 1961, REQUESTING THAT WE RECONSIDER THE ACTION TAKEN IN OUR SETTLEMENT OF NOVEMBER 17, 1960, WHICH DISALLOWED THAT PART OF YOUR CLAIM FOR RETROACTIVE PAY FOR THE PERIOD MARCH 13, 1955, TO AUGUST 24, 1958, AS AN EMPLOYEE OF THE DEPARTMENT OF THE ARMY, DETROIT ARSENAL, ORDNANCE TANK AUTOMOTIVE COMMAND, DETROIT, MICHIGAN. YOU ALSO CLAIM RETROACTIVE PAY FOR THE PERIOD COVERING YOUR LUMP SUM PAYMENT.

THE RECORD SHOWS THAT EFFECTIVE MARCH 13, 1955, AS A RESULT OF A GRADED SALARY AND WAGE SURVEY THE POSITION YOU OCCUPIED WAS DOWNGRADED FROM GRADE GS-10 TO GRADE GS-9. BECAUSE OF A PROCEDURAL ERROR YOU WERE REPROMOTED, EFFECTIVE APRIL 10, 1955, TO YOUR FORMER GRADE GS-10. ON JUNE 20, 1955, THE POSITION YOU OCCUPIED WAS AGAIN CHANGED TO A LOWER GRADE GS-9. BY OUR SETTLEMENT OF NOVEMBER 17, 1960, YOU RECEIVED AN ADJUSTMENT IN SALARY FOR THE DIFFERENCE BETWEEN GRADE GS-10 AND GS-9 FOR THE PERIOD AUGUST 24, 1958, TO SEPTEMBER 25, 1959, THE DATE OF YOUR RETIREMENT AND FOR THE PERIOD OF YOUR ACCUMULATED LEAVE TO YOUR CREDIT AT THE TIME OF YOUR SEPARATION.

YOU BELIEVE THAT YOU ARE ENTITLED TO SALARY ADJUSTMENT FOR THE PERIOD MARCH 13, 1955, TO AUGUST 24, 1958, UNDER PUBLIC LAW 87-270, 75 STAT. 567. TITLE I OF PUBLIC LAW 87-270, 75 STAT. 567, APPROVED SEPTEMBER 21, 1960, PERTAINING TO CLASSIFIED EMPLOYEES, MERELY AMENDED A PRIOR ,DOWNGRADING" OR "SAVED SALARY" LAW NAMELY, PUBLIC LAW 85-737, APPROVED AUGUST 23, 1958, 5 U.S.C. 1107, THE PRIMARY PURPOSE OF WHICH AMENDMENT WAS TO PROVIDE THAT EMPLOYEES WHO PREVIOUSLY HAD BEEN ENTITLED TO SAVED SALARIES UNDER PUBLIC LAW 85-737, WOULD RECEIVE INCREASES ON THEIR SAVED SALARIES UNDER FEDERAL EMPLOYEES SALARY INCREASE ACTS. IN YOUR CASE THE USE OF THE RATE PRESCRIBED IN THE GENERAL SCHEDULE FOR GRADE GS-10, STEP D, BY THE SALARY INCREASE ACT OF 1958 WAS MERELY VALIDATED BY PUBLIC LAW 87-270, SECTION 102 (B) (2).

THE AUTHORITY FOR THE PRESERVATION OF THE RATE OF BASIC COMPENSATION IN YOUR CASE BECAUSE OF A DOWNGRADING IS CONTAINED IN SECTION 507 OF THE CLASSIFICATION ACT OF 1949, 5 U.S.C. 1107, AS AMENDED BY PUBLIC LAW 85- 737, 72 STAT. 830. SECTION 507 (B) OF THE CLASSIFICATION ACT OF 1949, AS AMENDED BY PUBLIC LAW 85-737, PROVIDES IN PART AS FOLLOWS:

"* * * EACH OFFICER OR EMPLOYEE SUBJECT TO THIS ACT * * * SHALL BE ENTITLED, AS OF THE FIRST DAY OF THE FIRST PAY PERIOD WHICH BEGINS AFTER THE DATE OF ENACTMENT OF THIS AMENDMENT, * * * TO RECEIVE THE RATE OF BASIC COMPENSATION TO WHICH HE WAS ENTITLED IMMEDIATELY PRIOR TO SUCH REDUCTION IN GRADE * * *.'

PUBLIC LAW 85-737 WAS APPROVED BY THE PRESIDENT ON AUGUST 23, 1958. THEREFORE, AUGUST 24, 1958, WAS THE CUT OFF DATE FOR RETROACTIVE PAYMENT IN YOUR CASE.

BY GENERAL ACCOUNTING OFFICE SETTLEMENT OF NOVEMBER 17, 1960, YOU WERE ALLOWED THE RETROACTIVE ADJUSTMENT IN SALARY AS INCREASED BY THE FEDERAL EMPLOYEES SALARY INCREASE ACT OF 1958 FOR THE PERIOD AUGUST 24, 1958, TO THE DATE OF YOUR RETIREMENT, INCLUDING A PAYMENT FOR YOUR ACCUMULATED ANNUAL LEAVE. THEREFORE, THE ACTION TAKEN IN OUR SETTLEMENT OF NOVEMBER 17, 1960, IS CORRECT AND MUST BE SUSTAINED.