B-102982, AUGUST 31, 1951, 31 COMP. GEN. 62

B-102982, AUGUST 31, 1951, 31 COMP. GEN. 62

COMPENSATION - INITIAL SALARY RATE - SIMULTANEOUS WITHIN-GRADE ADVANCEMENT AND GRADE REALLOCATION AN EMPLOYEE WHOSE POSITION IS REALLOCATED TO A HIGHER GRADE ON THE SAME DATE HE BECOMES ELIGIBLE FOR A WITHIN-GRADE ADVANCEMENT UNDER THE PROVISIONS OF SECTION 701 (A) OF THE CLASSIFICATION ACT OF 1949, AS AMENDED, IS ENTITLED TO HAVE SAID WITHIN-GRADE ADVANCEMENT INCLUDED IN HIS EXISTING RATE OF BASIC COMPENSATION IN FIXING UNDER SECTION 802 (B) HIS BASIC RATE OF COMPENSATION FOR THE HIGHER GRADE.

COMPTROLLER GENERAL WARREN TO THE SECRETARY OF THE TREASURY, AUGUST 31, 1951:

THERE HAS BEEN CONSIDERED BY THIS OFFICE THE CLAIM OF MR. JAMES J. BOYLE, A CUSTOMS LIQUIDATOR ON THE FORCE OF THE COLLECTOR OF CUSTOMS, NEW YORK, FOR AN AMOUNT BELIEVED DUE INCIDENT TO THE REALLOCATION OF HIS POSITION TO A HIGHER GRADE ON THE SAME DATE THAT HE BECAME ELIGIBLE FOR A WITHIN-GRADE PERIODIC PROMOTION.

THE RECORD SHOWS THAT AT MIDNIGHT, AUGUST 5, 1959, MR. BOYLE COMPLETED 52 WEEKS OF SERVICE IN THE SIXTH STEP OF GRADE GS-10 AT $5,625 PER ANNUM AND OTHERWISE WAS QUALIFIED FOR A PERIODIC WITHIN GRADE PROMOTION AT THE BEGINNING OF THE NEXT PAY PERIOD, WHICH IN HIS CASE FELL ON AUGUST 6, 1950. ALSO, EFFECTIVE AS OF AUGUST 6, 1950, HE BECAME ENTITLED TO A PROMOTION FROM GRADE GS-10 TO GRADE GS-11 ON ACCOUNT OF THE REALLOCATION OF HIS POSITION. HIS SALARY IN THE HIGHER GRADE WAS FIXED AT $5,800 PER ANNUM. THE INCREASE IN RATE OF BASIC COMPENSATION RESULTING FROM THE REALLOCATION ALONE WAS $75, AN AMOUNT IN EXCESS OF A STEP INCREASE IN THE GRADE FROM WHICH HIS POSITION WAS REALLOCATED.

IT IS THE VIEW OF THE EMPLOYEE THAT, IN POINT OF TIME, HIS ENTITLEMENT TO A PERIODIC WITHIN-GRADE PROMOTION VESTED PRIOR TO THE INCREASE RESULTING FROM THE REALLOCATION OF HIS POSITION AND ACCORDINGLY, THAT HIS BASIC COMPENSATION SHOULD HAVE BEEN $5,750 PER ANNUM AT THE EFFECTIVE MOMENT OF THE REALLOCATION; THAT UNDER SUCH CONCEPT THE RATE RESULTING FROM HIS CHANGE IN GRADE DID NOT EXCEED HIS EXISTING RATE OF COMPENSATION BY THE AMOUNT AUTHORIZED BY SECTION 802 (B) OF THE CLASSIFICATION ACT OF 1949, 63 STAT. 969, AND THAT HE WAS IN FACT ENTITLED THEREUNDER TO A RATE OF BASIC COMPENSATION OF $6,000 PER ANNUM.

IT IS EVIDENT FROM THE FOREGOING THAT MR. BOYLE, DID NOT RECEIVE AN EQUIVALENT INCREASE IN COMPENSATION DURING THE 52 WEEK PERIOD PRECEDING THE REALLOCATION OF HIS POSITION, AND SINCE INCREASES AUTHORIZED BY SECTION 701 (A) OF THE CLASSIFICATION ACT, 63 STAT. 967, SUPRA, AS AMENDED, ARE IN A SENSE REWARDS GRANTED BY THE CONGRESS FOR THE SATISFACTORY PERFORMANCE OF SERVICE FOR A SPECIFIED PERIOD OF TIME, THE GRANTING OF SUCH AN INCREASE IS NOT NECESSARILY PRECLUDED BY A SIMULTANEOUS REALLOCATION OF AN EMPLOYEE'S POSITION TO A HIGHER GRADE. THE INCIDENTAL ADJUSTMENT OF THE RESULTING RATE OF BASIC COMPENSATION UPWARD TO THE NEXT STEP IN THE GRADE AUTHORIZED BY SECTION 802 (B) OF THE CLASSIFICATION ACT WOULD FOLLOW AS A MATTER OF LAW. THE CIVIL SERVICE COMMISSION CONCURS IN THE VIEW OF THIS OFFICE THAT ITS DEFINITION OF THE LANGUAGE,"EXISTING RATE OF BASIC COMPENSATION," IN SECTION 802 (B) OF THE CLASSIFICATION ACT, SET FORTH IN SECTION 25.102 OF ITS RULES AND REGULATIONS, FEDERAL PERSONNEL MANUAL ZI-316.02, DID NOT CONTEMPLATE A SITUATION SUCH AS HERE EXISTS.

IN ACCORDANCE WITH THE FOREGOING, THE BUREAU OF CUSTOMS, SHOULD BE INFORMED THAT MR. BOYLE AND OTHER EMPLOYEES OF THE BUREAU OF CUSTOMS IN THE SAME SITUATION ARE ENTITLED TO BASIC COMPENSATION AT THE RATE OF $6,000 PER ANNUM, EFFECTIVE AUGUST 6, 1950, AND THAT APPROPRIATE ADMINISTRATIVE ACTION IS AUTHORIZED TO EFFECT SUCH ADJUSTMENT.