B-155398, NOVEMBER 4, 1964, 44 COMP. GEN. 264

B-155398: Nov 4, 1964

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CONCERNING THE ENTITLEMENT OF AN EMPLOYEE TO AN INCREASE IN COMPENSATION AUTHORIZED UNDER SECTION 702 OF THE CLASSIFICATION ACT OF 1949 AFTER HIS TRANSFER FROM THE DEPARTMENT BY WHICH SUCH INCREASE WAS AUTHORIZED. THE SALARY INCREASE IN QUESTION IS THAT PROVIDED BY SECTION 603 OF THE CLASSIFICATION ACT AMENDMENTS OF 1962. THE HEAD OF EACH DEPARTMENT IS AUTHORIZED TO GRANT ADDITIONAL STEP-INCREASES IN RECOGNITION OF HIGH QUALITY PERFORMANCE ABOVE THAT ORDINARILY FOUND IN THE TYPE OF POSITION CONCERNED. THE PARTICULAR CIRCUMSTANCES GIVING RISE TO YOUR REQUEST FOR A DECISION AND THE SPECIFIC QUESTIONS YOU ASK ARE AS FOLLOWS: AN EMPLOYEE TRANSFERRED FROM ONE DEPARTMENT TO ANOTHER ON MAY 10. THE RECEIVING ESTABLISHMENT SET HIS COMPENSATION AT THE SAME GRADE AND RATE THE RECORDS SHOWED HIM TO HAVE LAST HELD WITH THE FIRST DEPARTMENT.

B-155398, NOVEMBER 4, 1964, 44 COMP. GEN. 264

COMPENSATION - INCREASES - QUALITY INCREASES A HIGH QUALITY PERFORMANCE STEP INCREASE AUTHORIZED PURSUANT TO THE CLASSIFICATION ACT AMENDMENTS OF 1962 (5 U.S.C. 1122), WHICH HAD BEEN APPROVED BUT NOT GIVEN EFFECT PRIOR TO THE TRANSFER OF AN EMPLOYEE MAY NOT BE GIVEN EFFECT BY THE DEPARTMENT TO WHICH THE EMPLOYEE HAD TRANSFERRED, THE RULE THAT AN INCREASE IN COMPENSATION RESULTING FROM DISCRETIONARY ADMINISTRATIVE ACTION BECOMES EFFECTIVE ON THE DATE THE ADMINISTRATIVE OFFICER VESTED WITH PROPER AUTHORITY APPROVES THE INCREASE, OR ON SUCH LATER DATE AS HE MAY SPECIFY, APPLYING TO THE QUALITY INCREASES AUTHORIZED UNDER 5 U.S.C. 1122, AND THE EMPLOYEE TRANSFERRING FROM THE DEPARTMENT WHICH HAD AUTHORIZED THE QUALITY INCREASE BEFORE THE EFFECTIVE DATE OF THE INCREASE MAY NOT BE GIVEN THE BENEFIT OF THE INCREASE IN THE DEPARTMENT TO WHICH TRANSFERRED.

TO THE CHAIRMAN, UNITED STATES CIVIL SERVICE COMMISSION, NOVEMBER 4, 1964:

WE REFER TO YOUR LETTER OF OCTOBER 14, 1964, CONCERNING THE ENTITLEMENT OF AN EMPLOYEE TO AN INCREASE IN COMPENSATION AUTHORIZED UNDER SECTION 702 OF THE CLASSIFICATION ACT OF 1949 AFTER HIS TRANSFER FROM THE DEPARTMENT BY WHICH SUCH INCREASE WAS AUTHORIZED.

THE SALARY INCREASE IN QUESTION IS THAT PROVIDED BY SECTION 603 OF THE CLASSIFICATION ACT AMENDMENTS OF 1962, APPROVED OCTOBER 11, 1962, PUBLIC LAW 87-793 (TITLE II), 76 STAT. 847, AMENDING SECTION 702 OF THE CLASSIFICATION ACT OF 1949, 5 U.S.C. 1122, IN PERTINENT PART AS FOLLOWS:

SEC. 702. (A) WITHIN THE LIMIT OF AVAILABLE APPROPRIATIONS AND IN ACCORDANCE WITH REGULATIONS PRESCRIBED BY THE COMMISSION, THE HEAD OF EACH DEPARTMENT IS AUTHORIZED TO GRANT ADDITIONAL STEP-INCREASES IN RECOGNITION OF HIGH QUALITY PERFORMANCE ABOVE THAT ORDINARILY FOUND IN THE TYPE OF POSITION CONCERNED. STEP-INCREASES UNDER THIS SECTION SHALL BE IN ADDITION TO THOSE UNDER SECTION 701 AND SHALL NOT BE CONSTRUED TO BE AN EQUIVALENT INCREASE IN COMPENSATION WITHIN THE MEANING OF SUBSECTION (A) OF SECTION 701.

THE PARTICULAR CIRCUMSTANCES GIVING RISE TO YOUR REQUEST FOR A DECISION AND THE SPECIFIC QUESTIONS YOU ASK ARE AS FOLLOWS:

AN EMPLOYEE TRANSFERRED FROM ONE DEPARTMENT TO ANOTHER ON MAY 10, 1964. THE RECEIVING ESTABLISHMENT SET HIS COMPENSATION AT THE SAME GRADE AND RATE THE RECORDS SHOWED HIM TO HAVE LAST HELD WITH THE FIRST DEPARTMENT. UPON RECEIPT OF HIS PERSONNEL FOLDER, IT FOUND THAT THE FIRST DEPARTMENT HEAD APPROVED A QUALITY INCREASE FOR HIM ON MAY 5, 1964, BUT BECAUSE OF THE INTERVENING TRANSFER IT HAD NOT GONE INTO EFFECT.

WE WOULD APPRECIATE YOUR DECISION ON THE QUESTIONS (1) WHETHER A QUALITY INCREASE WHICH WAS OFFICIALLY APPROVED BEFORE A TRANSFER, TO BE EFFECTIVE THE BEGINNING OF THE NEXT PAY PERIOD, MAY BE GIVEN EFFECT BY AN AGENCY TO WHICH THE EMPLOYEE TRANSFERS ON OR BEFORE THE DUE DATE; AND (2) IF SO, WHETHER THE RECEIVING AGENCY MAY RETROACTIVELY GIVE EFFECT TO SUCH AN INCREASE IF IT DETERMINES THAT IT WOULD HAVE DONE SO UPON TRANSFER IF IT HAD KNOWN OF ITS PENDENCY IN THE FORMER AGENCY.

WE WERE INFORMALLY ADVISED THAT THE QUESTION BEFORE YOU INVOLVES AN EMPLOYEE WHO DID TRANSFER SOME DAYS BEFORE THE DATE ON WHICH A QUALITY INCREASE WAS TO BECOME EFFECTIVE. WE WILL LIMIT OUR CONSIDERATION OF THE QUESTIONS PRESENTED TO THAT FACTUAL SITUATION.

AN INCREASE IN COMPENSATION WHICH RESULTS FROM DISCRETIONARY ADMINISTRATIVE ACTION BECOMES EFFECTIVE ON THE DATE THE ADMINISTRATIVE OFFICER VESTED WITH PROPER AUTHORITY APPROVES SUCH INCREASE OR ON SUCH LATER DATE AS HE MAY SPECIFY, 21 COMP. GEN. 95; 40 ID. 184. WE ARE AWARE OF NO REASON WHY THAT RULE SHOULD NOT BE APPLIED TO QUALITY INCREASES AUTHORIZED UNDER SECTION 702 OF THE CLASSIFICATION ACT OF 1949. THEREFORE, IF THE EMPLOYEE INVOLVED WAS TRANSFERRED FROM EMPLOYMENT IN THE DEPARTMENT WHICH AUTHORIZED THE QUALITY INCREASE BEFORE THE EFFECTIVE DATE THEREOF HE MAY NOT BE GIVEN THE BENEFIT OF SUCH INCREASE IN THE DEPARTMENT TO WHICH HE TRANSFERRED. YOUR FIRST QUESTION IS ANSWERED IN THE NEGATIVE.

IN VIEW OF THE ANSWER TO YOUR FIRST QUESTION NO ANSWER TO YOUR SECOND QUESTION IS REQUIRED.