[Claim for Retroactive Adjustment Step Placement]

A reinstated career employee of the Department of Energy, formerly employed by the the Architect of the Capitol, appealed the Claims Group decision which denied his claim for a retroactive adjustment of his step placement within his grade and backpay on the basis that he was not entitled to have his salary calculated with reference to the two-step increase rule and that his salary was properly set in accordance with the highest previous rate rule. GAO stated that the two-step increase rule pertains only to transfers and promotions within the General Schedule system, and employees hired by the Architect of the Capitol under 2 U.S.C. 60-2a are not within the General Schedule. Thus, the employee's salary was correctly adjusted in accordance with the highest rate rule. Accordingly, the claim for retroactive adjustment in his step placement and backpay was denied.