B-51456, AUGUST 14, 1945, 25 COMP. GEN. 190

B-51456, AUGUST 14, 1945, 25 COMP. GEN. 190

MERITORIOUS WITHIN-GRADE SALARY ADVANCEMENTS UNDER ACT OF AUGUST 1, 1941, AS AFFECTED BY FEDERAL EMPLOYEES PAY ACT OF 1945 INASMUCH AS THE AUTHORITY UNDER THE ACT OF AUGUST 1, 1941, FOR THE MAKING OF ESPECIALLY MERITORIOUS WITHIN-GRADE SALARY ADVANCEMENTS CEASED TO BE EFFECTIVE AS OF JULY 1, 1945, THE EFFECTIVE DATE OF THE PROVISIONS OF SECTIONS 403 AND 404 OF THE FEDERAL EMPLOYEES PAY ACT OF 1945 RESPECTING REWARDS FOR SUPERIOR ACCOMPLISHMENT, MERITORIOUS ADVANCEMENT AWARDED UNDER THE FORMER ACT TO BE EFFECTIVE JULY 1, 1945, ARE TO BE REGARDED AS UNAUTHORIZED AND INEFFECTIVE UNLESS THE TERMS AND CONDITIONS OF THE LATTER ACT AND CONTEMPLATED REGULATIONS THEREUNDER ARE MET.

COMPTROLLER GENERAL WARREN TO THE CHAIRMAN, NATIONAL WAR LABOR BOARD, AUGUST 14, 1945:

I HAVE YOUR LETTER OF JULY 30, 1945, AS FOLLOWS:

REFERENCE IS MADE TO SEC. 403 OF THE FEDERAL EMPLOYEES PAY ACT OF 1945, DEALING WITH " REWARDS FOR SUPERIOR ACCOMPLISHMENT.' THIS SECTION AMENDS SECTION 7F OF THE CLASSIFICATION ACT OF 1923, AS AMENDED.

BEFORE THIS ACT WAS SIGNED BY THE PRESIDENT AND BEFORE IT BECAME EFFECTIVE, THE NATIONAL WAR LABOR BOARD APPROVED AND PROCESSED WITHIN GRADE PROMOTIONS IN RECOGNITION OF ESPECIALLY MERITORIOUS SERVICES ON BEHALF OF TWO EMPLOYEES OF THE AGENCY. ACTION IN EACH OF THESE TWO CASES WAS TAKEN DURING THE SECOND HALF OF JUNE, TO BE EFFECTIVE AT THE BEGINNING OF THE FOLLOWING PAYROLL PERIOD. IT IS THE POLICY IN THIS AGENCY THAT ANY PERSONNEL ACTION INVOLVING A CHANGE IN SALARY BECOMES EFFECTIVE ON THE FIRST DAY OF A PAYROLL PERIOD. BECAUSE OF THIS, THE PROMOTIONS WENT INTO EFFECT ON JULY 1, 1945, THE SAME DAY AS THE NEW LAW BECAME EFFECTIVE.

THE QUESTION IS RAISED AS TO WHETHER THERE WOULD BE ANY OBJECTION TO CONTINUING THESE TWO EMPLOYEES AT THE RATE OF PAY WHICH THEY EARNED BY THEIR MERITORIOUS SERVICES.

YOUR ATTENTION TO THIS MATTER WILL BE GREATLY APPRECIATED.

SECTIONS 403 AND 404 OF THE FEDERAL EMPLOYEES PAY ACT OF 1945, 59 STAT. 300, PROVIDE:

REWARDS FOR SUPERIOR ACCOMPLISHMENT; AUTHORIZATION AND

LIMITATIONS

SEC. 403. SUBSECTION (F) OF SECTION 7 OF THE CLASSIFICATION ACT OF 1923, AS AMENDED, IS AMENDED TO READ AS FOLLOWS:

"/F) WITHIN THE LIMIT OF AVAILABLE APPROPRIATIONS, AS A REWARD FOR SUPERIOR ACCOMPLISHMENT, UNDER STANDARDS TO BE PROMULGATED BY THE CIVIL SERVICE COMMISSION, AND SUBJECT TO PRIOR APPROVAL BY THE CIVIL SERVICE COMMISSION, OR DELEGATION OF AUTHORITY AS PROVIDED IN SUBSECTION (G), THE HEAD OF ANY DEPARTMENT OR AGENCY IS AUTHORIZED TO MAKE ADDITIONAL WITHIN- GRADE COMPENSATION ADVANCEMENTS, BUT ANY SUCH ADDITIONAL ADVANCEMENTS SHALL NOT EXCEED ONE STEP AND NO EMPLOYEE SHALL BE ELIGIBLE FOR MORE THAN ONE ADDITIONAL ADVANCEMENT HEREUNDER WITHIN EACH OF THE TIME PERIODS SPECIFIED IN SUBSECTION (B). ALL ACTIONS UNDER THIS SUBSECTION AND THE REASONS THEREFOR SHALL BE REPORTED TO THE CIVIL SERVICE COMMISSION. THE COMMISSION SHALL PRESENT AN ANNUAL CONSOLIDATED REPORT TO THE CONGRESS COVERING THE NUMBERS AND TYPES OF ACTIONS TAKEN UNDER THIS SUBSECTION.'

REWARDS FOR SUPERIOR ACCOMPLISHMENT; RESPONSIBILITY OF CIVIL

SERVICE COMMISSION

SEC. 404. SUBSECTION (G) OF SECTION 7 OF THE CLASSIFICATION ACT OF 1923, AS AMENDED, IS AMENDED TO READ AS FOLLOWS:

"/G) THE CIVIL SERVICE COMMISSION IS HEREBY AUTHORIZED TO ISSUE SUCH REGULATIONS AS MAY BE NECESSARY FOR THE ADMINISTRATION OF THIS SECTION. IN SUCH REGULATIONS AS THE COMMISSION IS HEREBY EMPOWERED, IN ITS DISCRETION, TO DELEGATE TO THE HEAD OF ANY DEPARTMENT OR AGENCY, OR HIS DESIGNATED REPRESENTATIVE, THE AUTHORITY TO APPROVE ADDITIONAL WITHIN- GRADE COMPENSATION ADVANCEMENTS PROVIDED FOR IN SUBSECTION (F), WITHOUT PRIOR APPROVAL IN INDIVIDUAL CASES BY THE COMMISSION. THE COMMISSION IS ALSO AUTHORIZED TO WITHDRAW OR SUSPEND SUCH AUTHORITY FROM TIME TO TIME, WHENEVER POST-AUDIT OF SUCH ACTIONS BY THE COMMISSION INDICATES THAT STANDARDS PROMULGATED BY THE COMMISSION HAVE NOT BEEN OBSERVED.'

THIS OFFICE HAS BEEN ADVISED INFORMALLY THAT THE REGULATIONS AUTHORIZED BY THE STATUTE HAVE NOT YET BEEN ISSUED BY THE CIVIL SERVICE COMMISSION BUT THAT THEY WILL BE ISSUED SOON. SECTION 610 OF THE NEW PAY STATUTE, 59 STAT. 306, PROVIDES THAT "THIS ACT SHALL TAKE EFFECT ON JULY 1, 1945, WHICH EFFECTIVE DATE, OF COURSE, APPLIES TO THE OPERATION OF SECTIONS 403 AND 404 OF THE STATUTE; HENCE, THE AUTHORITY UNDER SECTION 7 (F) OF THE CLASSIFICATION ACT OF 1923, AS AMENDED BY THE ACT OF AUGUST 1, 1941, STAT. 614, FOR THE MAKING OF ESPECIALLY MERITORIOUS WITHIN-GRADE COMPENSATION ADVANCEMENTS CEASED TO BE EFFECTIVE AS OF THE BEGINNING OF JULY 1, 1945, THE EFFECTIVE DATE OF SAID SECTIONS 403 AND 404.

ACCORDINGLY, UNLESS THE MERITORIOUS ADVANCEMENTS IN COMPENSATION REFERRED TO IN YOUR LETTER BE APPROVED BY THE CIVIL SERVICE COMMISSION AND OTHERWISE MEET THE TERMS AND CONDITIONS OF THE NEW STATUTE AND REGULATIONS WITH RESPECT TO REWARDS FOR SUPERIOR ACCOMPLISHMENT, THEY MUST BE REGARDED AS UNAUTHORIZED AND INEFFECTIVE.