B-128701, MAY 2, 1957, 36 COMP. GEN. 747

B-128701, MAY 2, 1957, 36 COMP. GEN. 747

POSTAL EMPLOYEES - CORRECTION OF ERRONEOUS CONVERSION ACTIONS - SAVED PAY - SALARY ADJUSTMENTS THE ENTRANCE SALARY STEP RESTRICTION FOR TEMPORARY EMPLOYEES IN SECTION THE ENTRANCE SALARY STEP RESTRICTION FOR TEMPORARY POSTAL EMPLOYEES IN SECTION 503 OF THE POSTAL FIELD SERVICE COMPENSATION ACT OF 1955 IS APPLICABLE TO TEMPORARY EMPLOYEES WHO WERE ON THE ROLLS ON DECEMBER 2, 1955--- THE DAY PRIOR TO THE EFFECTIVE DATE OF THE ACT--- HOWEVER, THIS RESTRICTION SHOULD NOT BE CONSTRUED TO DEFEAT THE EMPLOYEE'S ENTITLEMENT TO THE SALARY SAVINGS PROVISION OF SECTION 504 AND THE CONVERSION REQUIREMENTS OF SECTION 304 (B) OF THE ACT. 36 COMP. GEN. 232, MODIFIED. POSTAL EMPLOYEES WHO WERE ON THE ROLLS ON DECEMBER 3, 1955--- EFFECTIVE DATE OF THE POSTAL FIELD SERVICE COMPENSATION ACT OF 1955--- AND WHO HAVE APPEALED INCORRECT POSITION CONVERSION AND SALARY ADJUSTMENT ACTIONS PRIOR TO FEBRUARY 1, 1956--- THE TERMINAL DATE FIXED BY REGULATION FOR APPEALS-- - ARE ENTITLED TO HAVE THE INCORRECT ACTION CHANGED RETROACTIVELY; HOWEVER, IF THE EMPLOYEE'S APPEAL IS INITIATED AFTER FEBRUARY 1, 1956, THE CORRECTIVE ACTION MAY ONLY BE EFFECTIVE PROSPECTIVELY. 36 COMP. GEN. 232, MODIFIED. AN ACTING SECOND-CLASS POSTMASTER WHO, AS RESULT OF AN APPEAL OF AN ERRONEOUS CONVERSION ACTION AFTER FEBRUARY 1, 1956, IS DETERMINED TO BE ENTITLED TO A HIGHER RANK MAY RECEIVE THE COMPENSATION OF THE HIGHER RANK FROM THE EFFECTIVE DATE OF THE CORRECTIVE ACTION AT THE STEP HE WOULD HAVE RECEIVED HAD HE ORIGINALLY BEEN PROPERLY RANKED, EVEN THOUGH HE CONSTRUCTIVELY IS ASSIGNED TO A LOWER STEP. AN ACTING SECOND-CLASS POSTMASTER WHO WAS ORIGINALLY PLACED IN LEVEL 8 BUT WHO, ON APPEAL AFTER FEBRUARY 1, 1956, WAS REDUCED IN RANK TO LEVEL 7, SHOULD BE ASSIGNED CONSTRUCTIVELY TO STEP 1 OF LEVEL 7 AND RECEIVE PROSPECTIVELY THE HIGHER OF THE TWO RATES BETWEEN WHICH HIS "SAVED RATE" OF COMPENSATION FALLS. AN ACTING SECOND-CLASS POSTMASTER WHO WAS PROPERLY CONVERTED CONSTRUCTIVELY TO STEP 1 OF LEVEL 7 AND PAID AT ADJUSTED STEP RATE OF $5,150 AND WHO IS ASSIGNED TO A POST OFFICE WHICH, AS RESULT OF CHANGES IN POSTAL RECEIPTS, IS RAISED TO LEVEL 8 SHOULD BE PROMOTED EFFECTIVE JULY 1, 1956--- BEGINNING OF FISCAL YEAR--- TO LEVEL 8 AT THE BASIC SALARY RATE OF $5,570, THE LOWEST STEP WHICH WOULD EXCEED THE LEVEL 7 ADJUSTED RATE BY AN AMOUNT NOT LESS THAN $360 A YEAR. IN CASE ACTING SECOND-CLASS POSTMASTERS ARE CHANGED TO LOWER LEVELS BY REASON OF A RE-EVALUATION OF POSTAL RECEIPTS, THE TEMPORARY POSTMASTER SHOULD BE CONSTRUCTIVELY ASSIGNED TO STEP 1 OF THE LOWER LEVEL IN ACCORDANCE WITH SECTION 503 OF THE POSTAL FIELD SERVICE COMPENSATION ACT OF 1955, AND THE SALARY RATE FIXED IN ACCORDANCE WITH SECTION A.4.A OF THE COMPENSATION REGULATIONS ISSUED BY THE POST OFFICE DEPARTMENT. A TEMPORARY POSTAL EMPLOYEE WHO IS ACTING DURING A VACANCY OF THE POSTMASTER IN A FOURTH-CLASS POST OFFICE WHICH IS ADVANCED TO THE CATEGORY $1,300--- $1,499.99 BY REASON OF INCREASED RECEIPTS SHOULD BE CONSTRUCTIVELY ASSIGNED TO THE ENTRANCE STEP OF THE HIGHER CATEGORY ON JULY 1, 1956 AND PAID AT THE LOWEST STEP RATE WHICH IS HIGHER THAN HIS BASIC SALARY AT THE END OF THE PRECEDING FISCAL YEAR. THE SALARY SAVINGS PROVISION IN SECTION 504 OF THE POSTAL FIELD SERVICE COMPENSATION ACT OF 1955 IS INAPPLICABLE TO BASIC SALARY CHANGES REQUIRED ON JULY 1, 1956, AS RESULT OF THE REDUCTION OF A POST OFFICE BECAUSE OF DECREASED RECEIPTS. POSTAL TRANSPORTATION SERVICE EMPLOYEES WHO HAD ATTAINED SALARY RATES IN EXCESS OF STEP 4 OF LEVEL 5 ON OR BEFORE DECEMBER 3, 1955--- THE EFFECTIVE DATE OF THE POSTAL FIELD SERVICE COMPENSATION ACT OF 1955 -- ARE ENTITLED TO THE SALARY SAVINGS PROVISIONS IN SECTION 504 AND THE COMPENSATION ADJUSTMENT PROVISIONS OF SECTION 304 OF THE ACT. POSTAL CONVERSION CORRECTION ACTIONS WHICH ARE MADE AFTER FEBRUARY 1, 1956, AND WHICH INVOLVE EITHER THE REALLOCATION OF THE POSITION TO A HIGHER SALARY LEVEL OR THE ADJUSTMENT OF THE POSTAL EMPLOYEE INCUMBENT'S BASIC SALARY TO A HIGHER STEP ARE NOT TO BE REGARDED AS PROMOTIONS WITHIN THE MEANING OF SECTION 502 (A) OF THE POSTAL FIELD SERVICE COMPENSATION ACT OF 1955. A POSTAL EMPLOYEE WHO IS QUALIFIED BY REASON OF HIGHER LEVEL SERVICE DURING A 45-DAY ABSENCE OF HIS SUPERVISOR ON SICK LEAVE AND WHO AGAIN RELIEVES THE SUPERVISOR FOR AN ADDITIONAL FIVE DAYS WHILE THE SUPERVISOR IS ABSENT ON COMPENSATORY TIME IS NOT ENTITLED TO INCREASED PAY REGARDLESS OF THE NUMBER OF DAYS SERVICED DURING THE COMPENSATORY PERIOD.

TO THE POSTMASTER GENERAL, MAY 2, 1957:

ON MARCH 22, 1957, YOUR REFERENCE FILE 800, THE DEPUTY POSTMASTER GENERAL REQUESTED THAT WE RECONSIDER OUR DECISION OF SEPTEMBER 25, 1956, B-128701, 36 COMP. GEN. 232, CONCERNING SOME SITUATIONS WHICH HAVE ARISEN UNDER THE POSTAL FIELD COMPENSATION ACT, PUBLIC LAW 68, 69 STAT. 88, 39 U.S.C. 951. THE PRINCIPAL POINTS REQUESTED TO BE REVIEWED ARE (1) WHETHER SECTION 503 OF THE ACT, 39 U.S.C. 993, IS APPLICABLE ONLY TO TEMPORARY APPOINTMENTS MADE ON OR AFTER DECEMBER 3, 1955, AND (2) WHETHER THE CONVERSIONS UNDER SECTION 304, 39 U.S.C. 974, AT LEAST OF EMPLOYEES ON THE ROLLS DECEMBER 2, 1955, COULD BE MADE ONLY ON DECEMBER 3, 1955. IF WE ADHERE TO OUR DECISION OF SEPTEMBER 25 ON POINTS (1) AND (2), THE DEPUTY POSTMASTER GENERAL FURTHER ASKED WHETHER THE DECISION IS EQUALLY APPLICABLE TO ALL TEMPORARY EMPLOYEES ON THE ROLLS DECEMBER 2, 1955.

OUR DECISION OF SEPTEMBER 25 LARGELY CONCERNED YOUR DEPARTMENT'S PAY REGULATIONS CONTAINED IN REGIONAL CIRCULAR NO. 145 OF MARCH 28, 1956, IMPLEMENTING THE ACT'S CONVERSION RULES AND THE EFFECTIVE DATE THEREOF, PARTICULARLY IN THE CASE OF ACTING POSTMASTERS OF FIRST, SECOND, AND THIRD CLASS POST OFFICES.

SECTION 810 OF THE ACT, 39 U.S.C. 951 NOTE, AUTHORIZED YOU TO PRESCRIBE THE DATES ON WHICH THE PROVISIONS THEREOF SHALL TAKE EFFECT-- EXCEPTING CERTAIN PROVISIONS NOT INVOLVED HERE. THE ACT SO HAVING BEEN PLACED INTO EFFECT DECEMBER 3, 1955, OUR DECISION OF SEPTEMBER 25 CONSTRUED SECTION 503 LITERALLY AS APPLYING ONLY TO EACH TEMPORARY EMPLOYEE WHO "IS HIRED" ON OR AFTER DECEMBER 3, 1955. WE RECOGNIZE, HOWEVER, THAT ONE OF THE MAIN PURPOSES OF THE ACT IS TO CORRECT INEQUITIES IN THE PRIOR COMPENSATION RATES AND THE CLASSIFICATION OF POSTMASTERS' AND POSTAL EMPLOYEES' POSITIONS. HENCE, SECTION 503 NEED NOT BE SO CONSTRUED AS TO DEFEAT OTHER EXPRESS PROVISIONS OF THE CORRECTIVE LEGISLATION. IN THAT RESPECT, AS THE DEPUTY POSTMASTER GENERAL SUGGESTS, WE PROPERLY SHOULD CONSIDER THE INTENT OF THE LEGISLATION AS EXPLAINED ON PAGE 29 OF HOUSE REPORT NO. 728, REGARDING SECTION 402 OF THE BILL (S. 2061) WHICH BECAME PUBLIC LAW 68.

UNDER SECTION 402, 39 U.S.C. 982, AS UNDER THE PRIOR LAWS RELATING TO THE POSTAL SERVICE, AN EMPLOYEE'S TEMPORARY SERVICE IN A POSITION MAY NOT EARN HIM STEP INCREASE ADVANCEMENTS UNLESS SUCH SERVICE IS CONTINUOUS TO THE DATE HE IS APPOINTED TO A POSITION OF UNLIMITED DURATION. ALSO, AS SIMILARLY PROVIDED IN PRIOR STATUTES, SECTION 503 OF PUBLIC LAW 68 PROVIDES THAT TEMPORARY EMPLOYEE WHO IS HIRED FOR CONTINUOUS SERVICE OF ONE YEAR OR LESS SHALL BE PAID THE ENTRANCE STEP RATE IN THE SALARY LEVEL OF THE POSITION TO WHICH HE IS TEMPORARILY APPOINTED. HOWEVER, ACTION UNDER SUCH RESTRICTIONS NEVERTHELESS IS SUBJECT ALSO CONCURRENTLY TO SECTION 504 PROHIBITING REDUCTION OF THE SALARY RATES OF EMPLOYEES ON THE ROLLS DECEMBER 2, 1955, AS WELL AS TO THE CONVERSION REQUIREMENTS OF SECTION 304 (B) WHICH PROVIDES THAT, UPON CONVERSION OF A TEMPORARY INCUMBENT'S POSITION TO THE PFS SCHEDULE, THE INCUMBENT'S SALARY RATE OF DECEMBER 2, 1955, SHALL BE ADJUSTED TO AN APPROPRIATE BASIC STEP OF HIS ASSIGNED SALARY LEVEL UNDER THE PFS SCHEDULE IN ACCORDANCE WITH WHICHEVER SUBSECTION, 304 (B) (1), (2), (3), OR (4), 39 U.S.C. 974 (B) (1), (2), (3), (4), PERTAINS THERETO, EFFECTIVE DECEMBER 3, 1955. SECTION 201 (D) OF THE ACT IMPLIES THAT THE CONVERSIONS AND PAY ADJUSTMENTS TENTATIVELY EFFECTED AS OF DECEMBER 3, 1955, BE CORRECT ON THEIR FACE AND THAT THE COMPENSATION PAID THEREUNDER BE NOT DISTURBED. IF UPON AN APPEAL, HOWEVER, PRIOR TO FEBRUARY 1, 1956, IT DEVELOPS THAT THE CONVERSION AND ADJUSTMENTS WERE IN FACT INCORRECT, THEY MAY BE CORRECTED RETROACTIVELY. B-126780, MARCH 12, 1956. ON THE OTHER HAND BY VIRTUE OF SECTION 201 (D), 39 U.S.C. 961 (D), AND YOUR REGULATIONS UNDER THE ACT, IF AN EMPLOYEE'S APPEAL BE INITIATED AFTER FEBRUARY 1, 1956, CORRECTIVE ACTION WOULD BE FOR PROSPECTIVE APPLICATION. THE FOREGOING CONCLUSIONS ACCORDINGLY MODIFY OUR DECISION OF SEPTEMBER 25, 1956, TO THE EXTENT INDICATED HEREIN.

WE NOW PROCEED TO THE SPECIFIC CASES AND FURTHER QUESTIONS FOR DECISION, WHICH WILL BE CONSIDERED IN THE ORDER AS PRESENTED BY THE DEPUTY POSTMASTER GENERAL. THE FIRST CASE IS THAT OF AN ACTING SECOND CLASS POSTMASTER "A" WHO WAS SERVING AT THE RATE OF $5,056 PER ANNUM ON DECEMBER 2, 1955. HIS POSITION RANKING DECEMBER 3, 1955, AT LEVEL 7 (ENTRANCE STEP OF WHICH IS $4,530 PER ANNUM) WAS FAULTY AND UPON APPEAL AFTER FEBRUARY 1, 1956, WAS CORRECTLY RANKED AT LEVEL 8 (ENTRANCE STEP, $4,890 PER ANNUM). IN LIGHT OF THE CONCLUSIONS HEREINABOVE SUCH ACTING POSTMASTER MAY RETAIN THE COMPENSATION HE RECEIVED UNDER THE INITIAL RANKING BUT UPON THE EFFECTIVE DATE OF THE CORRECTED RANKING HE BECOMES ENTITLED TO THE STEP 2 RATE ($5,060 PER ANNUM) OF LEVEL 8. SEE SECTION 304 (B) (3). SUCH CONVERSION ADJUSTMENTS FOR PAY PURPOSES ARE PROPER EVEN THOUGH HE CONSTRUCTIVELY IS ASSIGNED TO A LOWER STEP. THIS CONSTITUTES AN AFFIRMATIVE ANSWER TO THE SPECIFIC QUESTION A (1) AND RENDERS IT UNNECESSARY TO ANSWER SUBPARTS A (2) AND (3).

AS TO ACTING SECOND CLASS POSTMASTER "B" SERVING AT $5,056 PER ANNUM ON DECEMBER 2, 1955, THE LETTER STATES HE ORIGINALLY WAS PLACED IN LEVEL 8 BUT, UPON APPEAL AFTER FEBRUARY 1, 1956, WAS REDUCED IN RANKING FROM LEVEL 8 TO LEVEL 7. IN ACCORDANCE WITH SECTIONS 503 AND 402 HE SHOULD BE ASSIGNED CONSTRUCTIVELY TO STEP 1 OF LEVEL 7, BUT BE PAID PROSPECTIVELY AT THE HIGHER OF THE TWO SCHEDULED PFS RATES BETWEEN WHICH HIS "SAVED RATE" OF $5,056 FALLS. SECTION 304 (B) (3). THEREFORE QUESTION B (1) IS ANSWERED IN THE AFFIRMATIVE.

QUESTION C CONCERNS ACTING SECOND CLASS POSTMASTERS (LEVEL 7,"SAVED" RATE OF $5,056) WHOSE ASSIGNED SALARY LEVELS ARE CHANGED AFTER DECEMBER 3, 1955, BECAUSE OF CHANGE IN GROSS POSTAL RECEIPTS AND OTHER SERVICE FACTORS NOT INVOLVING ERRONEOUS CONVERSION ACTIONS ON DECEMBER 3, 1955. THE DEPARTMENTAL VIEW IS THAT, UPON THE RE-EVALUATION OF SUCH SECOND CLASS OFFICE UPWARD FROM LEVEL 7 TO LEVEL 8, THE ACTING POSTMASTER SHOULD BE ASSIGNED STEP 1 OF LEVEL 8 (DISREGARDING HIS TEMPORARY SERVICE CREDITS) AND, IF HE RECEIVES A REGULAR APPOINTMENT THEREAFTER, HE WOULD BE CONVERTED TO STEP 2 OF LEVEL 8 UNDER ITEM A.6.A OF REGIONAL CIRCULAR NO. 145.

UNDER THE ACT (SECTION 801), 39 U.S.C. 1031, POST OFFICES ARE TO BE DIVIDED INTO APPROPRIATE CLASSES AT THE BEGINNING OF EACH FISCAL YEAR BASED UPON THEIR GROSS ANNUAL RECEIPTS DURING THE PRECEDING CALENDAR YEAR. FOR PURPOSES OF THE PRESENTED QUESTION WE WILL ASSUME THE ACTING POSTMASTER'S POSITION WAS PROPERLY CONVERTED DECEMBER 3, 1955, CONSTRUCTIVELY TO STEP 1 OF LEVEL 7 UNDER SECTION 503 AND THAT HIS "SAVED" RATE OF $5,056 WAS PROPERLY ADJUSTED UNDER SECTION 304 (B) ON THAT DATE TO THE BASIC STEP RATE OF $5,150 IN LEVEL 7. IF THOSE ASSUMPTIONS BE CORRECT SECTIONS 801 AND 502 (A) WOULD REQUIRE THAT THE ACTING POSTMASTER BE PROMOTED EFFECTIVE JULY 1, 1956, TO LEVEL 8 AT THE BASIC SALARY RATE OF $5,570 PER ANNUM, THE LOWEST STEP OF LEVEL 8 WHICH WOULD EXCEED HIS LEVEL 7 ADJUSTED RATE BY AN AMOUNT NOT LESS THAN $360 PER ANNUM, THE DIFFERENCE BETWEEN THE ENTRANCE STEPS OF LEVELS 7 AND 8. QUESTION C (1) IS ANSWERED ACCORDINGLY.

QUESTION C (2) CONCERNS THOSE ACTING SECOND CLASS POSTMASTERS WHOSE RE- EVALUATED OFFICES ARE REDUCED FROM LEVEL 7 TO LEVEL 6, SOLELY AS A RESULT OF A DECREASE IN GROSS RECEIPTS. THUS, SINCE THE "SAVED" RATE RULE OF SECTION 504 GENERALLY IS NOT INVOLVED IN PERSONNEL CHANGES OR POST OFFICE REORGANIZATIONS AFTER DECEMBER 3, 1955, IT MAY BE THAT BOTH SECTION 503 OF THE ACT AND ITEM A.4.A OF REGIONAL CIRCULAR NO. 145 SHOULD BE CONSIDERED WHEN AN ACTING POSTMASTER IS CHANGED TO A LOWER LEVEL BECAUSE OF A RE- EVALUATION OF HIS OFFICE'S RECEIPTS. SECTION 503 WOULD REQUIRE THAT THE TEMPORARY POSTMASTER BE CONSTRUCTIVELY ASSIGNED TO STEP 1 OF THE LOWER LEVEL; HOWEVER HIS SALARY RATE WOULD BE FIXED UNDER ITEM A.4.A--- THE RESULT BEING THAT STEP 7 OF LEVEL 6 ($5,030 PER ANNUM, THE HIGHEST BASIC STEP RATE THEREUNDER) WOULD APPLY IN SUCH CASE.

AS TO ACTING POSTMASTERS DURING VACANCIES AT FOURTH-CLASS OFFICES, THE LETTER STATES THEY ARE TREATED AS THOUGH THEY ARE TEMPORARY EMPLOYEES THE SAME AS OTHER ACTING POSTMASTERS AND PAID AT THE STEP 1 RATE OF THE APPLICABLE CATEGORY UNDER THE FOS SCHEDULE. IT IS STATED, HOWEVER, THE EMPLOYEES INVOLVED ARE NOT THOSE WHO PERFORM FOURTH-CLASS OFFICE DUTIES PURSUANT TO SECTION 303 (D) OF PUBLIC LAW 68. THE SPECIFIC CASES AND QUESTIONS NUMBERED 2 CONCERN ACTING FOURTH-CLASS POSTMASTER "C" WHOSE POST OFFICE ON DECEMBER 2, 1955, WAS IN THE $1,100 $1,299.99 CATEGORY THEN IN EFFECT AND HE WAS BEING PAID A SALARY OF $2,644 PER ANNUM. ON DECEMBER 3, 1955, THE POST OFFICE RANK WAS ASSIGNED TO THE $900-$1,299.99 CATEGORY UNDER SECTION 303 (A) OF PUBLIC LAW 68. THE EMPLOYEE'S "SAVED" SALARY RATE IS $2,644. OUR CONCLUSIONS HEREINABOVE CONCERNING THE CONCURRENT APPLICATION TO THE PFS POSITIONS OF BOTH SECTIONS 503 AND 304 ARE EQUALLY APPLICABLE TO ACTING POSTMASTERS OF THE FOURTH-CLASS. APPLYING THAT CONCLUSION HERE WOULD INDICATE THE STEP RATE OF $2,689 SHOULD HAVE BEEN THE ADJUSTED RATE OF SUCH ACTING POSTMASTER "C" EFFECTIVE AS OF DECEMBER 3, 1955, UNTIL CHANGED UNDER OTHER PROVISIONS OF LAW. THEREFORE WHEN, AS THE LETTER SAYS, A FOURTH-CLASS OFFICE IS ADVANCED ON JULY 1, 1956--- BASED ON THE PREVIOUS YEAR'S RECEIPTS--- TO THE PRESENT $1,300-$1,499.99 CATEGORY THE "SAVED" RATE OF $2,644 ON DECEMBER 3, 1955, NO LONGER APPLIES. SUCH TEMPORARY INCUMBENT ON JULY 1, 1956, SHOULD HAVE BEEN ASSIGNED CONSTRUCTIVELY TO THE ENTRANCE STEP OF THE HIGHER CATEGORY AND SHALL BE PAID AT STEP 4 OF THE HIGHER CATEGORY ($2,766 PER ANNUM), THE LOWEST STEP RATE WHICH IS HIGHER THAN HIS BASIC SALARY AT THE END OF THE PRECEDING FISCAL YEAR, AS PROVIDED IN SECTION 303 (B), 39 U.S.C. 973 (B). QUESTIONS 2A AND 2B.1 ARE ANSWERED ACCORDINGLY.

QUESTION 2B.2 RELATES TO A FOURTH-CLASS OFFICE WHICH IS REDUCED TO THE $600-$899.99 CATEGORY BECAUSE OF DECREASED RECEIPTS. THE "SAVED" RATE RULE OF SECTION 504 DOES NOT APPLY TO THE BASIC SALARY CHANGES REQUIRED ON JULY 1, 1956. HOWEVER, THE FOURTH-CLASS ACTING POSTMASTER WOULD BE ASSIGNED CONSTRUCTIVELY TO STEP 1 OF THE LOWER CATEGORY BUT SHALL NOT BE PAID ABOVE THE MAXIMUM STEP THEREOF AS PROVIDED IN ITEM A.4.A OF THE CITED REGULATIONS.

THE THIRD CASE AND QUESTION CONCERNS SUBSTITUTES IN THE POSTAL TRANSPORTATION SERVICE WHOSE SALARY RATES WERE PLACED UNDER THE PFS SCHEDULE EFFECTIVE DECEMBER 3, 1955. THE EXCEPTIONS IN SECTION 401 (A) AND (C) PROHIBITING AUTOMATIC STEP-INCREASE ADVANCEMENTS BEYOND STEP 4 OF THE PFS-5 LEVEL APPLY ON AND AFTER DECEMBER 3, 1955, ONLY TO THOSE POSTAL TRANSPORTATION SERVICE SUBSTITUTE EMPLOYEES WHO OTHERWISE MIGHT THEREAFTER HAVE EARNED THE FIFTH STEP INCREASE IN A PFS-5 POSITION ,AS A DISTRIBUTION CLERK IN A RAILWAY OR HIGHWAY POST OFFICE.'

THE QUESTION NUMBERED 3 PRESUPPOSES A NEGATIVE ANSWER TO THE FOREGOING "POINT (1).' HOWEVER, WE CONCLUDED THERE THAT SECTION 503 DOES APPLY TO TEMPORARY EMPLOYEES WHOSE POSITIONS WERE CONVERTED TO THE PFS SCHEDULE ON DECEMBER 3, 1955. WHILE SECTION 401 (C) PRECLUDES CERTAIN STEP-INCREASE ADVANCEMENTS BEYOND STEP 4 OF LEVEL 5 WHICH OTHERWISE MIGHT HAVE ACCRUED AFTER DECEMBER 3, 1955, IT DOES NOT EXPRESSLY OR IMPLIEDLY RULE OUT THE APPLICATION OF THE PROVISIONS OF SECTIONS 504 (A) AND 304 (B). ACCORDINGLY, THOSE PTS EMPLOYEES--- INCLUDING SUBSTITUTE PFS-5 DISTRIBUTION CLERKS--- WHO HAD ATTAINED SALARY RATES IN EXCESS OF STEP 4 OF LEVEL 5 ON OR BEFORE DECEMBER 3, 1955, ARE ENTITLED TO THE BENEFITS OF SECTIONS 504 AND 304.

IN THE LIGHT OF THE DETERMINATION THAT DECEMBER 3, 1955, IS THE ONLY CONVERSION DATE UNDER SECTION 304 APPLICABLE TO EMPLOYEES (TEMPORARY OR NOT) ON THE ROLLS DECEMBER 2, 1955, THE DEPUTY POSTMASTER GENERAL'S QUESTION 4 IS WHETHER SECTION 502 (A) APPLIES IN THE CASES OF RE EVALUATIONS UPWARD, EITHER BECAUSE OF APPEALS FILED AFTER FEBRUARY 1, 1956, OR BECAUSE OF SUBSEQUENT MANAGEMENT DETERMINATIONS THAT THE ORIGINAL EVALUATION ( DECEMBER 3, 1955) WAS IN ERROR. IN THAT CONNECTION THE LETTER STATES THE DEPARTMENT THUS FAR HAS NOT MADE ADJUSTMENTS RETROACTIVELY IN THE COMPENSATION OF TEMPORARY EMPLOYEES ON THE ROLLS DECEMBER 2, 1955, EXCEPT THAT A FIELD OFFICE DID CONVERT SOME TEMPORARY EMPLOYEES AS OF DECEMBER 3, 1955. AS INDICATED HEREINABOVE, OUR VIEW IS THAT DECEMBER 3, 1955, IS THE ONLY "CONVERSION" DATE APPLICABLE TO ALL EMPLOYEES (INCLUDING TEMPORARY) ON THE ROLLS DECEMBER 2, 1955. ALTHOUGH SECTION 503 PRECLUDES THE ACTUAL PAYMENT OF STEP INCREASES OF SALARY TO A TEMPORARY EMPLOYEE PRIOR TO THE DATE HE RECEIVES AN APPOINTMENT OF UNLIMITED DURATION, SECTION 503 DOES NOT PRECLUDE THE PAYMENT OF HIS "SAVED" RATE (SECTION 504 (A) ( ADJUSTED TO THE APPROPRIATE STEP WITHIN THE SALARY LEVEL OF THE APPLICABLE SCHEDULE TO WHICH HIS POSITION OF DECEMBER 2, 1955, IS REQUIRED TO BE CONVERTED BY VIRTUE OF SECTION 304. HOWEVER, EVEN THOUGH A CORRECTION AFTER FEBRUARY 1, 1956, OF A CONVERSION MADE ON DECEMBER 3, 1955, INVOLVES EITHER THE REALLOCATION OF THE POSITION TO A HIGHER SALARY LEVEL OR THE ADJUSTMENT OF THE INCUMBENT'S BASIC SALARY TO A HIGHER STEP RATE, WE WOULD NOT REGARD SUCH ADMINISTRATIVE ACTIONS AS A "PROMOTION" WITHIN THE MEANING OF SECTION 502 (A). THE DEPUTY POSTMASTER GENERAL ALSO REQUESTS OUR DECISION CONCERNING THE APPLICATION OF SECTION 204 (B) IN THE CASE OF AN EMPLOYEE (LEVEL 4, STEP 1) WHO, DURING THE CALENDAR YEAR, RELIEVES HIS SUPERVISOR (LEVEL 7) WHILE ON SICK LEAVE FOR 45 DAYS, 15 DAYS OF WHICH ARE COMPENSABLE AT THE HIGHER LEVEL RATE. SUBSEQUENT TO THE SUPERVISOR'S RETURN FROM THE SICK LEAVE, THE EMPLOYEE AGAIN RELIEVES THE SUPERVISOR AN ADDITIONAL FIVE DAYS WHILE HE IS ABSENT ON COMPENSATORY TIME UNDER SECTION 603, 10 U.S.C. 1003. EXPLAINED IN HOUSE REPORT NO. 728, PAGE 19, UNDER THE EXCEPTION IN SECTION 204 (B), 39 U.S.C. 964 (B), WHEN AN EMPLOYEE SERVES IN RELIEF DURING THE COMPENSATORY TIME OF A SUPERVISOR "THERE WILL BE NO INCREASE IN PAY REGARDLESS OF THE NUMBER OF DAYS THE EMPLOYEE SAVES IN THAT CAPACITY.'

THE SPECIFIC SENTENCE OF OUR DECISION OF SEPTEMBER 25, TO WHICH THE DEPUTY POSTMASTER GENERAL REFERS, IS NOT TO BE CONSTRUED AS AUTHORIZING PAYMENT OF THE HIGHER LEVEL RATE. THE QUESTION IS ANSWERED ACCORDINGLY.

THE FOREGOING APPEARS TO SUPPLY THE ANSWERS NEEDED ON THE GENERAL QUESTIONS AND ON THE QUESTIONS IN THE PRESENTED EXAMPLES.