Claim for Grade and Pay Retention

A former employee of the Internal Revenue Service (IRS) appealed the denial of his claim for grade and pay retention incident to his voluntary transfer to a lower grade position with another agency. The employee was advised that his position was to be abolished and that its functions would be performed by his supervisor. IRS issued redeployment guidelines indicating that the problems involved in abolishing the position might necessitate the use of reduction in force (RIF) procedures to determine placement for affected individuals. Rather than remain in his IRS position until it was abolished, the employee accepted a lower grade position with another agency. At the time of his transfer, legislation provided that an employee who is reduced in grade as the result of a RIF is entitled to retain his grade for 2 years and to retain his pay indefinitely thereafter, unless his entitlement ceases under prescribed conditions which include no longer remaining in the same agency. Thus, an employee's transfer to a lower grade position to avoid possible RIF procedures does not come under the purview of the statutory entitlement. Such action is deemed to be a transfer at the employee's request for his benefit, convenience, or personal advantage, and grade and pay retention is precluded. Accordingly, the employee was not entitled to grade and pay retention, and the disallowance of his claim was sustained.