[Claims for Within-Grade Salary Increases]

A decision was requested as to whether certain Department of Health and Human Services employees, who were appointed to positions associated with a settlement program for Cuban and Haitian refugees, were eligible for within-grade salary increases. Some of the employees were given appointments of more than 1 year, others were initially appointed for periods not-to-exceed 1 year and received a single extension of more than 1 year, while most of the employees were given initial appointments not-to-exceed 1 year or less. Some of the employees in this latter group had their appointments extended in additional increments for periods not-to-exceed 1 year or less which made their total appointment time exceed 1 year. Federal employees paid on an annual basis and occupying a permanent position receive periodic step increases. GAO found that the employees who were given appointments of more than 1 year were entitled to receive within-grade increases on the same basis as term employees. Employees who were given initial appointments of not-to-exceed 1 year, with a single extension of more than 1 year, were entitled to within-grade increases on the same basis. Further, the time spent under the initial appointment counted as creditable service. However, employees who were granted initial appointments of not-to-exceed 1 year or less and who received extensions in increments for periods not-to-exceed 1 year or less were not entitled to within-grade increases because the positions filled by the employees were not permanent positions. There is no regulatory authority that would permit adding the subsequent extensions to the initial appointment to make the total appointment period exceed 1 year. GAO noted that any overpayments which resulted from the granting of within-grade increases to employees in this category may be considered for waiver of repayment.