B-70194, NOVEMBER 14, 1947, 27 COMP. GEN. 278

B-70194, NOVEMBER 14, 1947, 27 COMP. GEN. 278

COMPENSATION - PERIODIC WITHIN-GRADE ADVANCEMENTS - EFFECTIVE DATE WHERE, ON JULY 1, 1945, THE EFFECTIVE DATE OF THE WITHIN-GRADE SALARY ADVANCEMENT PROVISIONS OF THE FEDERAL EMPLOYEES PAY ACT OF 1945, THE REALLOCATION OF AN EMPLOYEE'S POSITION TO THE NEXT HIGHER GRADE BECAME EFFECTIVE WITHOUT RESULTING IN AN INCREASE IN COMPENSATION--- THE EMPLOYEE HAVING RECEIVED THE MAXIMUM SALARY FOR HIS FORMER GRADE--- THE SALARY ADVANCEMENT OF THE EMPLOYEE TO THE SECOND STEP OF THE HIGHER GRADE PROPERLY WAS MADE EFFECTIVE BEGINNING WITH THE PAY PERIOD COMMENCING JULY 1, 1945, PROVIDED ALL OTHER CONDITIONS OF THE STATUTE GOVERNING WITHIN- GRADE ADVANCEMENTS HAD BEEN MET. 22 COMP. GEN. 336, DISTINGUISHED.

COMPTROLLER GENERAL WARREN TO THE ADMINISTRATOR OF VETERANS' AFFAIRS, NOVEMBER 14, 1947:

REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 9, 1947, RELATIVE TO A TYPE OF CASE IN WHICH QUESTION HAS BEEN RAISED AS TO THE EFFECTIVE DATE OF WITHIN-GRADE PROMOTIONS UNDER THE FEDERAL EMPLOYEES PAY ACT OF 1945, 59 STAT. 295, 299.

THE EXAMPLE CITED IN YOUR LETTER COVERS THE CASE OF AN EMPLOYEE WHO SERVED AT THE MAXIMUM SALARY RATE IN GRADE P-1 ($2,600) FOR SEVERAL YEARS PRIOR TO JULY 1, 1945. AS THE RESULT OF A REALLOCATION OF HIS POSITION TO GRADE P-2 EFFECTIVE JULY 1, 1945, THE EMPLOYEE WAS ADVANCED TO THE MINIMUM SALARY RATE IN THAT GRADE ($2,980 PER ANNUM). SINCE THE MAXIMUM SALARY RATE OF GRADE P-1 AS INCREASED BY THE FEDERAL EMPLOYEES PAY ACT OF 1945, EFFECTIVE JULY 1, 1945, ALSO WAS $2,980 PER ANNUM, NO INCREASE IN COMPENSATION RESULTED FROM THE REALLOCATION. THEREFORE, THE SAID EMPLOYEE NOT HAVING RECEIVED AN EQUIVALENT INCREASE OF COMPENSATION FOR MORE THAN 12 MONTHS NEXT PRECEDING THE DATE HIS POSITION WAS REALLOCATED, AND ALL OTHER CONDITIONS OF THE STATUTE GOVERNING WITHIN-GRADE SALARY ADVANCEMENTS HAVING BEEN COMPLIED WITH, HIS SALARY WAS INCREASED ON JULY 1, 1945, TO THE SECOND STEP WITHIN THE SALARY RANGE OF GRADE P-2 ($3,090). YOU REQUEST A DECISION WHETHER THE WITHIN-GRADE PROMOTION IN THAT CASE PROPERLY WAS EFFECTIVE ON JULY 1, 1945, OR AT THE BEGINNING OF THE NEXT PAY PERIOD, JULY 15, 1945.

IN DECISION OF OCTOBER 10, 1942 (22 COMP. GEN. 336), ONE OF THE DECISIONS REFERRED TO IN YOUR LETTER, IT WAS HELD THAT AUTOMATIC PROMOTIONS UNDER THE ACT OF AUGUST 1, 1941 (55 STAT. 613), BECAME EFFECTIVE AT THE BEGINNING OF THE QUARTER FOLLOWING THE QUARTER DURING WHICH ALL THE CONDITIONS SPECIFIED BY THE STATUTE BECAME FIXED AND ACCRUED. APPLYING THAT RULE TO THE FACTS CONSIDERED IN SAID DECISION, AN EMPLOYEE WHO HAD SERVED AT THE MAXIMUM SALARY RATE OF HIS GRADE FOR MORE THAN 18 MONTHS AND WHO BECAME ELIGIBLE FOR WITHIN-GRADE PROMOTION ON THE FIRST DAY OF THE CURRENT QUARTER BY REASON OF HIS PROMOTION TO A NEW POSITION AT THE MINIMUM RATE OF THE NEXT HIGHER GRADE, NOT HAVING MET THE CONDITIONS OF THE ACT UNTIL AFTER THE BEGINNING OF THE CURRENT QUARTER, WITHIN-GRADE PROMOTION IN HIS CASE WAS NOT EFFECTIVE UNTIL THE BEGINNING OF THE FOLLOWING QUARTER.

IN THE INSTANT CASE, HOWEVER, THERE IS NOT INVOLVED A PROMOTION TO A NEW POSITION. ON THE CONTRARY, THE EMPLOYEE'S ADVANCEMENT TO A HIGHER GRADE RESULTED AUTOMATICALLY FROM AN UPWARD REALLOCATION OF HIS OLD POSITION. THEREFORE, AT THE VERY BEGINNING OF JULY 1, 1945, TWO FORCES OPERATED SIMULTANEOUSLY UPON HIS SALARY STATUS, NAMELY, THE REALLOCATION OF HIS POSITION ON ONE HAND, THE WITHIN-GRADE PROMOTION PROVISIONS OF THE FEDERAL EMPLOYEES PAY ACT OF 1945 ON THE OTHER. THUS, ASSUMING ALL OTHER CONDITIONS OF THE STATUTE SUCH AS EFFICIENCY RATING, CONDUCT, ETC., WERE MET, IT APPEARS THAT THE EMPLOYEE PROPERLY WAS ADVANCED TO THE SECOND SALARY STEP OF GRADE P-2 AT THE BEGINNING OF THE PAY PERIOD ON JULY 1, 1945.