B-59712, AUGUST 26, 1946, 26 COMP. GEN. 133

B-59712: Aug 26, 1946

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975 PER ANNUM IN EITHER GRADE P-8 OR CAF-15 IS PRECLUDED FROM RECEIVING THE COMPENSATION INCREMENTS OF $200 OR MORE ESTABLISHED BY SECTION 13 OF THE CLASSIFICATION ACT. 1946: I HAVE YOUR LETTER OF JULY 30. IS THE WAITING PERIOD 12 MONTHS OR 18 MONTHS? THERE IS AT PRESENT ONLY ONE SALARY STEP. THE ACT PROVIDES IN PART THAT EMPLOYEES "SHALL BE ADVANCED IN COMPENSATION SUCCESSIVELY TO THE NEXT HIGHER RATE WITHIN THE GRADE AT THE BEGINNING OF THE NEXT PAY PERIOD FOLLOWING THE COMPLETION OF (1) EACH TWELVE MONTHS OF SERVICE IF SUCH EMPLOYEES ARE IN GRADES IN WHICH THE COMPENSATION INCREMENTS ARE LESS THAN $200. OR (2) EACH EIGHTEEN MONTHS OF SERVICE IF SUCH EMPLOYEES ARE IN GRADES IN WHICH THE COMPENSATION INCREMENTS ARE $200 OR MORE * * *.'.

B-59712, AUGUST 26, 1946, 26 COMP. GEN. 133

COMPENSATION - WITHIN-GRADE PROMOTIONS - SERVICE REQUIREMENTS - EFFECT OF AGGREGATE COMPENSATION LIMITATION THE FACT THAT AN EMPLOYEE RECEIVING THE INITIAL SALARY RATE OF $9,975 PER ANNUM IN EITHER GRADE P-8 OR CAF-15 IS PRECLUDED FROM RECEIVING THE COMPENSATION INCREMENTS OF $200 OR MORE ESTABLISHED BY SECTION 13 OF THE CLASSIFICATION ACT, AS AMENDED, FOR SUCH GRADES, EXCEPT TO THE EXTENT OF $25, BECAUSE OF THE $10,000 PER ANNUM AGGREGATE COMPENSATION LIMITATION OF SECTION 7 OF THE FEDERAL EMPLOYEES PAY ACT OF 1946, DOES NOT ENTITLE THE EMPLOYEE TO A WITHIN-GRADE ADVANCEMENT UNDER SECTION 402 OF THE FEDERAL EMPLOYEES PAY ACT OF 1945, TO THE EXTENT OF SUCH LIMITATION, PRIOR TO THE COMPLETION OF 18 MONTHS OF SERVICE IN SUCH A GRADE AS REQUIRED BY SAID SECTION 402.

ACTING COMPTROLLER GENERAL YATES TO THE PRESIDENT, UNITED STATES CIVIL SERVICE COMMISSION, AUGUST 26, 1946:

I HAVE YOUR LETTER OF JULY 30, 1946, AS FOLLOWS:

THE COMMISSION DESIRES TO SUBMIT FOR YOUR DECISION THE FOLLOWING QUESTION RELATING TO THE APPLICATION OF SECTION 402 (B) OF THE FEDERAL EMPLOYEES PAY ACT OF 1945:

IN GRADES P-8 AND CAF-15, IS THE WAITING PERIOD 12 MONTHS OR 18 MONTHS? THERE IS AT PRESENT ONLY ONE SALARY STEP, WITHIN THE RANGE OF THOSE TWO GRADES, FROM $9,975 TO $10,000 PER ANNUM, AN INCREASE OF $25. THE ACT PROVIDES IN PART THAT EMPLOYEES "SHALL BE ADVANCED IN COMPENSATION SUCCESSIVELY TO THE NEXT HIGHER RATE WITHIN THE GRADE AT THE BEGINNING OF THE NEXT PAY PERIOD FOLLOWING THE COMPLETION OF (1) EACH TWELVE MONTHS OF SERVICE IF SUCH EMPLOYEES ARE IN GRADES IN WHICH THE COMPENSATION INCREMENTS ARE LESS THAN $200, OR (2) EACH EIGHTEEN MONTHS OF SERVICE IF SUCH EMPLOYEES ARE IN GRADES IN WHICH THE COMPENSATION INCREMENTS ARE $200 OR MORE * * *.'

SECTION 13 OF THE ORIGINAL CLASSIFICATION ACT OF MARCH 4, 1923, 42 STAT. 1492 AND 1496, AS AMENDED BY SECTION 1 OF THE ACT OF MAY 28, 1928, 45 STAT. 776, WAS FURTHER AMENDED BY SECTION 4 OF THE ACT OF AUGUST 1, 1941, 55 STAT. 614, AS FOLLOWS:

SEC. 4. SECTION 13 OF THE SAID ACT IS HEREBY FURTHER AMENDED SO AS TO PROVIDE THE FOLLOWING ANNUAL RATES OF COMPENSATION AND SALARY STEPS WITHIN GRADES 14 AND 15 OF THE CLERICAL, ADMINISTRATIVE, AND FISCAL SERVICE AND GRADES 7 AND 8 OF THE PROFESSIONAL AND SCIENTIFIC SERVICE:

"CLERICAL, ADMINISTRATIVE, AND FISCAL SERVICE:

"GRADE 14: $6,500, $6,750, $7,000, $7,250, $7,500.

"GRADE 15: $8,000, $8,250, $8,500, $8,750, $9,000.

"PROFESSIONAL AND SCIENTIFIC SERVICE:

"GRADE 7: $6,500, $6,750, $7,000, $7,250, $7,500.

"GRADE 8: $8,000, $8,250, $8,500, $8,750, $9,000.'

THE SALARY STEPS SO PRESCRIBED IN GRADES P-8 AND CAF-15 WERE INCREASED BY SECTION 401 OF THE FEDERAL EMPLOYEES PAY ACT OF 1945, 59 STAT. 298, TO $8,750, $9,012.50, $9,275, $9,537.50, AND $9.800, AND SECTION 402 OF THAT ACT, 59 STAT. 299, PROVIDES:

(B) ALL EMPLOYEES COMPENSATED ON A PER ANNUM BASIS, AND OCCUPYING PERMANENT POSITIONS WITHIN THE SCOPE OF THE COMPENSATION SCHEDULES FIXED BY THIS ACT, WHO HAVE NOT ATTAINED THE MAXIMUM RATE OF COMPENSATION FOR THE GRADE IN WHICH THEIR POSITIONS ARE RESPECTIVELY ALLOCATED, SHALL BE ADVANCED IN COMPENSATION SUCCESSIVELY TO THE NEXT HIGHER RATE WITHIN THE GRADE AT THE BEGINNING OF THE NEXT PAY PERIOD FOLLOWING THE COMPLETION OF (1) EACH TWELVE MONTHS OF SERVICE IF SUCH EMPLOYEES ARE IN GRADES IN WHICH THE COMPENSATION INCREMENTS ARE LESS THAN $200, OR (2) EACH EIGHTEEN MONTHS OF SERVICE IF SUCH EMPLOYEES ARE IN GRADES IN WHICH THE COMPENSATION INCREMENTS ARE $200 OR MORE * * *.

SECTIONS 2 (A) AND 7 OF THE FEDERAL EMPLOYEES PAY ACT OF 1946, PUBLIC LAW 390, 60 STAT. 216, 218, PROVIDE:

SEC. 2. (A) EACH OF THE EXISTING RATES OF BASIC COMPENSATION PROVIDED BY SECTION 13 OF THE CLASSIFICATION ACT OF 1923, AS AMENDED AND SUPPLEMENTED, EXCEPT THOSE AFFECTED BY SUBSECTION (B) OF THIS SECTION, IS HEREBY INCREASED BY 14 PERCENTUM OR $250 PER ANNUM WHICHEVER IS THE GREATER, EXCEPT THAT NO SUCH RATE SHALL BE INCREASED BY MORE THAN 25 PERCENTUM. SUCH AUGMENTED RATES SHALL BE CONSIDERED TO BE THE REGULAR RATES OF BASIC COMPENSATION PROVIDED BY SUCH SECTION.

SEC. 7 (A) SECTION 603 (B) OF THE FEDERAL EMPLOYEES PAY ACT OF 1945 IS AMENDED BY INSERTING AFTER THE WORDS "BY REASON OF THE ENACTMENT OF THIS ACT" THE WORDS "OR ANY AMENDMENT THERETO.'

(B) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT NO OFFICER OR EMPLOYEE SHALL, BY REASON OF THE ENACTMENT OF THIS ACT, BE PAID WITH RESPECT TO ANY PAY PERIOD, BASIC COMPENSATION, OR BASIC COMPENSATION PLUS ANY ADDITIONAL COMPENSATION PROVIDED BY THE FEDERAL EMPLOYEES PAY ACT OF 1945, AS AMENDED, AT A RATE IN EXCESS OF $10,000 PER ANNUM.

THE PERCENTAGE INCREASES PROVIDED BY SECTION 2 (A) OF THE FEDERAL EMPLOYEES PAY ACT OF 1946 WHEN APPLIED TO THE COMPENSATION RATES OR INCREMENTS PROVIDED FOR GRADES P-8 AND CAF-15 WOULD PRODUCE INCREMENTS IN EXCESS OF $200 IN EACH STEP. THE FACT THAT SUCH INCREMENTS MAY NOT BE PAID ON OR AFTER JULY 1, 1946, EXCEPT TO THE EXTENT OF $25, BETWEEN THE FIRST AND SECOND STEPS, BECAUSE OF THE MAXIMUM LIMITATION IMPOSED BY SECTION 7 OF THE FEDERAL EMPLOYEES PAY ACT OF 1946, DOES NOT CHANGE THE FACT THAT THE STATUTORY INCREMENTS IN THOSE GRADES ARE FIXED IN THE CLASSIFICATION ACT, AS AMENDED, AND EXCEED $200 PER STEP. THAT IS TO SAY, THE INCREMENTS IN SAID GRADES EXCEED $200, BUT THE RECEIPT THEREOF IS PRECLUDED BY OPERATION OF THE LIMITING PROVISIONS OF THE STATUTE. IT MUST BE CONCLUDED, THEREFORE, THAT AN EMPLOYEE RECEIVING THE INITIAL SALARY RATE OF $9,975 IN EITHER P-8 OR CAF-15 WILL BE REQUIRED TO WAIT 18 MONTHS FROM THE DATE APPOINTED IN THAT GRADE BEFORE RECEIVING AN AUTOMATIC WITHIN -GRADE ADVANCE TO $10,000.