B-138625, JUL. 19, 1960

B-138625, JUL. 19, 1960

TO CHAIRMAN, UNITED STATES CIVIL SERVICE COMMISSION:

THE EXAMPLE SET FORTH UNDER THE SPECIAL FORMULA APPEARING IN THE FEDERAL PERSONNEL MANUAL, F-1-67, CAUSES US SOME CONCERN. THE COMPUTATIONS IN THAT EXAMPLE INDICATE THAT EMPLOYEES RECEIVING RETAINED SALARY--- FOLLOWING DOWNGRADING ACTIONS OCCURRING PRIOR TO THE EFFECTIVE DATE OF THE FEDERAL EMPLOYEES SALARY INCREASE ACT OF 1958, PUBLIC LAW 85-462--- IN ACCORDANCE WITH PUBLIC LAW 85-737, ARE ENTITLED TO THE SALARY INCREASES PROVIDED UNDER THE FEDERAL EMPLOYEES SALARY INCREASE ACT OF 1958.

OUR CONCERN ARISES FROM THE FACT THAT THE SALARY WHICH IS SAVED BY PUBLIC LAW 85-737 IS THE RATE TO WHICH THE DOWNGRADED EMPLOYEE WAS ENTITLED "IMMEDIATELY PRIOR TO SUCH REDUCTION IN GRADE.' IT IS SIGNIFICANT THAT THERE WAS OMITTED FROM PUBLIC LAW 85-737 LANGUAGE SIMILAR TO THAT APPEARING IN THE EARLIER SALARY SAVING LAW, NAMELY, PUBLIC LAW 594, 84TH CONGRESS, 70 STAT. 291, WHICH PROVIDED FOR RETENTION OF THE RATE THE EMPLOYEE WAS RECEIVING IMMEDIATELY PRIOR TO THE DOWNWARD CLASSIFICATION OF THE POSITION "INCLUDING ANY INCREASES IN SUCH RATE OF BASIC COMPENSATION PROVIDED BY LAW. * * *"

IN EXPLAINING THE OMISSION OF THE UNDERSCORED LANGUAGE FROM THE BILL (H.R. 1168), ENACTED AS PUBLIC LAW 85-737, HOUSE REPORT NO. 2269, JULY 24, 1958, STATES, IN PERTINENT PART, AS FOLLOWS:

"* * * SECTION 507 (A), AS REVISED BY THIS BILL, ELIMINATES THE LANGUAGE WHICH HAD THE EFFECT OF PERMITTING OFFICERS AND EMPLOYEES RECEIVING SALARY PROTECTION TO OBTAIN, IN ADDITION, ALL INCREASES IN SALARY PROVIDED BY GENERAL PAY RAISE LEGISLATION. THEREFORE, UNDER THE REVISED SECTION 507 (A), THE OFFICER OR EMPLOYEE WITH A SAVED RATE OF BASIC COMPENSATION AS A RESULT OF SALARY PROTECTION PROVIDED BY SUCH SECTION WILL NOT RECEIVE ANY INCREASE IN SUCH SAVED RATE AS A RESULT OF GENERAL PAY RAISE LEGISLATION. IF, HOWEVER, THE RATE OF BASIC COMPENSATION WHICH HE WOULD BE RECEIVING IF HE WERE NOT RECEIVING SUCH SALARY PROTECTION, AS INCREASED BY THE APPROPRIATE AMOUNT PROVIDED BY THE GENERAL PAY RAISE LEGISLATION, IS MORE THAN SUCH SAVED RATE, IT IS INTENDED THAT HE RECEIVE THE BENEFITS OF SUCH GENERAL PAY RAISE LEGISLATION BASED UPON THE RATE OF BASIC COMPENSATION WHICH HE WOULD BE RECEIVING IF HE WERE NOT RECEIVING SUCH SALARY PROTECTION.'

IN VIEW OF THE PLAIN WORDING OF PUBLIC LAW 85-737 AND ITS LEGISLATIVE HISTORY, WE DO NOT UNDERSTAND THE BASIS FOR A CONSTRUCTION OF THAT LAW WHICH WOULD PERMIT AN EMPLOYEE WHO WAS DOWNGRADED PRIOR TO THE EFFECTIVE DATE OF THE FEDERAL EMPLOYEES SALARY INCREASE ACT OF 1958, TO RECEIVE THE SALARY INCREASES PROVIDED BY THE 1958 PAY ACT IN ADDITION TO HIS SAVED RATE OF COMPENSATION--- THE RATE TO WHICH HE WAS ENTITLED IMMEDIATELY PRIOR TO HIS DOWNGRADING. THE FACT THAT DURING THE SAME SESSION OF CONGRESS THE SAME COMMITTEES (POST OFFICE AND CIVIL SERVICE) CONSIDERED BOTH THE 1958 PAY LEGISLATION AND THE DOWNGRADING LEGISLATION PLUS THE FACT THAT THE DOWNGRADING ACT WAS ENACTED SUBSEQUENT TO THE PAY ACT APPEARS TO LEND STRONG SUPPORT TO THE VIEW THAT THE SAVED PAY (THE RATE TO WHICH THE DOWNGRADED EMPLOYEE WAS ENTITLED "IMMEDIATELY PRIOR TO SUCH REDUCTION IN GRADE") COULD NOT BE SUPPLEMENTED BY THE GENERAL INCREASE PROVIDED BY THE 1958 PAY ACT.