B-157659, SEP. 29, 1965

B-157659, SEP. 29, 1965

TO GREGORIO P. CHUA, M.D.:

THIS REFERS TO YOUR UNDATED LETTER RECEIVED IN THIS OFFICE ON SEPTEMBER 8, 1965, REQUESTING RECONSIDERATION OF OUR OFFICE SETTLEMENT OF JUNE 3, 1965, WHICH DISALLOWED YOUR CLAIM FOR ADDITIONAL COMPENSATION ALLEGED TO BE DUE YOU AS A MEDICAL OFFICER EMPLOYED BY THE VETERANS ADMINISTRATION.

YOU POSED THE FOLLOWING QUESTION:

"WHAT PROVISION OF THE FSRA OF 1962 AND CIVIL SERVICE COMMISSION FPM LTR 513-16 DATED OCTOBER 11, 1962, PROHIBITED MY CONVERSION TO STEP 8 UNDER SEC 504 AND SEC 701/A) AS AMENDED OF PL 87-793, CONSIDERING MY TIME IN STEP 8 AND TOTAL YEARS OF SERVICE AS A GS-12, MEDICAL OFFICER PRIOR TO OCTOBER 14, 1962?

YOU ALSO ASK IF THERE HAS BEEN A COMPTROLLER GENERAL DECISION INVOLVING STEP CONVERSION AND EMBRACING INTERPRETATIONS OF SUBSECTIONS 504/A), (B), (C) AND 602 (B) (4) OF THE FEDERAL SALARY REFORM ACT OF 1962, PUB.L. 87- 793, APPROVED OCTOBER 1, 1962, 76 STAT. 832, 5 U.S.C. 1113 NOTE, AND SUBSECTION 701/A) OF THE CLASSIFICATION ACT OF 1949, AS AMENDED BY SECTION 603 OF PUB.L. 87-793, 5 U.S.C. 1121 (A).

SECTION 504 OF THE FEDERAL SALARY REFORM ACT OF 1962, 5 U.S.C. 1173, PROVIDES FOR THE ESTABLISHMENT OF HIGHER RATES OF BASIC COMPENSATION UNDER CERTAIN CIRCUMSTANCES FOR A GIVEN CLASS OF POSITIONS UNDER THE CLASSIFICATION ACT IN ONE OR MORE AREAS OR LOCATIONS. THE FORMER AUTHORITY TO MAKE APPOINTMENTS ABOVE THE MINIMUM RATE OF A GRADE UNDER SECTION 803 OF THE CLASSIFICATION ACT OF 1949 WAS ELIMINATED BY THE 1962 ACT.

SUBSECTIONS 602/B) (4) AND (10) AND SECTION 603 OF THE CLASSIFICATION ACT AMENDMENTS OF 1962, TITLE II OF PART II, PUB.L. 87 793, 5 U.S.C. 1113 NOTE, AND 5 U.S.C. 1173, RESPECTIVELY, PROVIDE, IN PERTINENT PART, AS FOLLOWS:

"/B) THE RATES OF BASIC COMPENSATION OF OFFICERS AND EMPLOYEES TO WHOM COMPENSATION SCHEDULE I OF THE GENERAL SCHEDULE SET FORTH IN SUBSECTION (A) OF THIS SECTION APPLIES SHALL, SUBJECT TO THE PROVISIONS OF PARAGRAPH (10) OF THIS SUBSECTION, BE INITIALLY ADJUSTED, EFFECTIVE ON THE FIRST DAY OF THE FIRST PAY PERIOD BEGINNING ON OR AFTER THE DATE OF ENACTMENT OF THIS ACT, AS FOLLOWS:

"/4) IF THE OFFICER OR EMPLOYEE IS RECEIVING BASIC COMPENSATION IMMEDIATELY PRIOR TO THE FIRST DAY OF THE FIRST PAY PERIOD WHICH BEGINS ON OR AFTER THE DATE OF ENACTMENT OF THIS ACT AT THE FIRST, SECOND, THIRD, FOURTH, FIFTH, OR SIXTH SCHEDULED RATE, OR AT THE FIRST, SECOND, OR THIRD LONGEVITY RATE OF GRADE 11, 12, 13, OR 14 OF THE GENERAL SCHEDULE OF THE CLASSIFICATION ACT OF 1949, AS AMENDED, HE SHALL RECEIVE A RATE OF BASIC COMPENSATION AT THE CORRESPONDING FIRST, SECOND, THIRD, FOURTH, FIFTH, SIXTH, SEVENTH, EIGHTH, OR NINTH RATE OF THE APPROPRIATE GRADE IN EFFECT ON AND AFTER SUCH DAY.

"/10) SERVICE OF OFFICERS AND EMPLOYEES PERFORMED IMMEDIATELY PRECEDING THE FIRST DAY OF THE FIRST PAY PERIOD WHICH BEGINS ON OR AFTER THE DATE OF ENACTMENT OF THIS ACT, IN THE GRADE OF THE GENERAL SCHEDULE IN WHICH THEIR RESPECTIVE POSITIONS WERE PLACED ON SUCH DAY, SHALL BE COUNTED TOWARD NOT TO EXCEED ONE STEP INCREASE UNDER THE TIME IN GRADE PROVISIONS OF SUBSECTION (A) OF SECTION 701 OF THE CLASSIFICATION ACT OF 1949 AS AMENDED BY THIS ACT.

"SEC. 603. TITLE VII OF THE CLASSIFICATION ACT OF 1949, AS AMENDED (5 U.S.C. 1121-1125), RELATING TO STEP-INCREASES UNDER SUCH ACT, IS AMENDED TO READ AS FOLLOWS:

"TITLE VII-STEP-DECREASES

"SEC. 701. (A) EACH OFFICER OR EMPLOYEE COMPENSATED ON A PER ANNUM BASIS, AND OCCUPYING A PERMANENT POSITION WITHIN THE SCOPE OF THE COMPENSATION SCHEDULES FIXED BY THIS ACT, WHO HAS NOT ATTAINED THE MAXIMUM RATE OF COMPENSATION FOR THE GRADE IN WHICH HIS POSITION IS PLACED, SHALL BE ADVANCED IN COMPENSATION SUCCESSIVELY TO THE NEXT HIGHER RATE WITHIN THE GRADE AT THE BEGINNING OF THE NEXT PAY PERIOD FOLLOWING THE COMPLETION OF (1) EACH FIFTY-TWO CALENDAR WEEKS OF SERVICE IN SALARY RATES 1, 2, AND 3, OR (2) EACH ONE HUNDRED AND FOUR CALENDAR WEEKS OF SERVICE IN SALARY RATES 4, 5, AND 6, OR (3) EACH ONE HUNDRED AND FIFTY-SIX CALENDAR WEEKS OF 4, 5, AND 6, OR (3) EACH ONE HUNDRED AND FIFTY-SIX CALENDAR WEEKS OF SERVICE IN SALARY RATES 7, 8, AND 9, SUBJECT TO THE FOLLOWING CONDITIONS:

"/A) THAT NO EQUIVALENT INCREASE IN COMPENSATION FROM ANY CAUSE WAS RECEIVED DURING SUCH PERIOD * * *.'

SUBSECTION 602 (B) (4), ABOVE, ELIMINATED LONGEVITY STEP INCREASES AND ABSORBED THE LONGEVITY RATE INTO THE REGULAR RATE RANGE. SUBSECTION 602/B) (10) PROVIDED THAT SERVICE IMMEDIATELY PRECEDING THE EFFECTIVE DATE OF THE ACT SHOULD BE COUNTED TOWARD NOT TO EXCEED A ONE STEP INCREASE UNDER THE TIME IN GRADE PROVISIONS OF SUBSECTION 701/A) OF THE CLASSIFICATION ACT OF 1949, AS AMENDED, 68 STAT. 1106, 5 U.S.C. 1121.

CIVIL SERVICE COMMISSION FEDERAL PERSONAL MANUAL LETTER NO. 531-16 OF OCTOBER 11, 1962, WHICH PERTAINS TO THE ADJUSTMENT OF ABOVE-THE MINIMUM RATES (FORMERLY SECTION 803 RATES) ISSUED AS A RESULT OF ENACTMENT OF SECTION 504 OF THE FEDERAL SALARY REFORM ACT OF 1962, PROVIDES THAT EMPLOYEES OCCUPYING POSITIONS COVERED BY INCREASED MINIMUM RATES UNDER FORMER SECTION 803 OF THE ACT IMMEDIATELY PRIOR TO THE EFFECTIVE DATE OF COMPENSATION SCHEDULE I SHALL, AFTER THEIR SALARIES ARE INITIALLY FIXED UNDER COMPENSATION SCHEDULE I IN ACCORDANCE WITH THE PROVISIONS OF SUBSECTION 602 (B) OF THE FEDERAL SALARY REFORM ACT OF 1962, THEN BE PLACED AT THE LOWEST SALARY RATE IN THE INCREASED RATE RANGE ESTABLISHED BY THIS REGULATION WHICH EQUALS OR EXCEEDS THEIR SALARIES AS INITIALLY FIXED UNDER COMPENSATION SCHEDULE I.

IN ACCORDANCE WITH THE FOREGOING STATUTE AND REGULATION YOUR RATE OF COMPENSATION WAS FIRST CONVERTED FROM THE OLD SIXTH (TOP) SCHEDULED RATE FOR GRADE GS-12 WITH TWO LONGEVITY STEP INCREASES AT $10,775 PER ANNUM, TO THE NEW EIGHTH STEP RATE FOR GRADE GS-12 OF THE GENERAL SCHEDULE UNDER SCHEDULE I, OR $11,680 PER ANNUM.

AS PROVIDED BY CIVIL SERVICE COMMISSION FEDERAL PERSONNEL MANUAL LETTER NO. 531-16, YOU WERE THEN PLACED AT STEP 5 OF THE NEW RATE RANGE FOR THE GS-602 MEDICAL OFFICER SERIES, GRADE GS-12 OR $11,680 PER ANNUM, WHICH WAS THE LOWEST SALARY RATE IN THE INCREASED RATE RANGE WHICH EQUALS OR EXCEEDS THE SALARY AS INITIALLY FIXED UNDER COMPENSATION SCHEDULE I. THIS WAS THE FIFTH STEP IN THE NEW SPECIAL RATE RANGE WHICH WAS THREE STEPS BELOW YOUR FORMER NUMERICAL RANK IN GRADE GS-12. THE NEW SPECIAL RANGE OF RATES FOR MEDICAL OFFICERS GRADE GS-12 AT THIS TIME WAS SET TO BEGIN AT $10,420 PER ANNUM (EQUIVALENT TO STEP 4 OF THE GENERAL SCHEDULE) AND EXTENDED THROUGH NINE STEPS TO $12,940 PER ANNUM. THE EXAMPLE BELOW WHICH IS TAKEN FROM FFM LTR.NO. 531-15 (3) OF OCTOBER 11, 1962, IS APPLICABLE TO YOUR CASE.

"B. PROFESSIONAL ENGINEERS AT GS-7 WHO WERE ON THE ROLLS AT $6,345 (OLD 7TH RATE) IMMEDIATELY PRIOR TO THE EFFECTIVE DATE OF COMPENSATION SCHEDULE I, THAT IS, THE FIRST DAY OF THE FIRST PAY PERIOD WHICH BEGINS ON OR AFTER OCTOBER 11, 1962. (IN MOST CASES, THE EFFECTIVE DATE WILL BE OCTOBER 14.) UNDER THE CONVERSION PROVISIONS OF THE PAY ACT (SECTION 602 (B) ); THEY RECEIVE $6,650 (THE 7TH RATE IN THE NEW PAY ACT) AS OF THE EFFECTIVE DATE, WHICH IN THE EXAMPLE IS OCTOBER 14.

"EFFECTIVE THE SAME DAY, UNDER SECTION 25.105/B) OF THE REGULATIONS, THEIR PAY IS THEN FIXED ,AT THE LOWEST SALARY RATE IN THE INCREASED RATE RANGE ESTABLISHED UNDER PARAGRAPH (A) OF THIS SECTION WHICH EQUALS OR EXCEEDS THEIR SALARIES AS INITIALLY FIXED UNDER COMPENSATION SCHEDULE I.' IN THE EXAMPLE, THIS RATE IS $5,650. WHICH IS THE 2ND RATE OF THE INCREASED SPECIAL GRADE-RANGE, RATHER THAN THE FORMER 7TH RATE OF THE STATUTORY RANGE.'

UPON CONVERSION TO THE NEW SPECIAL RATE RANGE IN OCTOBER 1962 YOU WERE PERMITTED TO CARRY OVER YOUR CREDIT UNDER SUBSECTION 602 (B) (10) OF THE FEDERAL SALARY REFORM ACT OF 1962 FOR THE TIME (APPROXIMATELY 83 WEEKS) SPENT IN THE SECOND LONGEVITY STEP UNDER THE SYSTEM IN EFFECT PRIOR TO THAT DATE. THIS ENABLED YOU TO RECEIVE A STEP INCREASE TO STEP 6 OF THE SPECIAL RATE IN MARCH 1963 JUST TWO YEARS AFTER YOUR LONGEVITY INCREASE. IN MARCH 1965 YOU WERE GIVEN ANOTHER STEP INCREASE TO STEP 7. THUS, IT WAS AN ADVANTAGE TO BE INITIALLY PLACED IN SALARY RATE 5 IN THE SPECIAL RATE RANGE FOR MEDICAL OFFICERS, RATHER THAN STEP 8 OF THE GENERAL SCHEDULE IN THAT IT ENABLED YOU TO QUALIFY FOR STEP RATE INCREASES UPON THE COMPLETION OF 104 CALENDAR WEEKS RATHER THAN THE 156 CALENDAR WEEKS REQUIRED IN THE FORMER STEP 8.

WITH THE ELIMINATION OF LONGEVITY INCREASES UNDER THE FEDERAL SALARY REFORM ACT OF 1962 THE AGGREGATE OF YOUR SERVICE IN GRADE GS-12 PROVIDED NO ENTITLEMENT TO BE CONVERTED TO STEP 8 OF THE INCREASED MINIMUM RATES FOR MEDICAL OFFICERS. WE INTERPRET THE TERM "TIME IN GRADE" APPEARING IN SUBSECTION 602 (B) (10), 5 U.S.C. 1113 NOTE, AS MERELY A DESCRIPTIVE PHRASE AND NOT AS REQUIRING THAT AN EMPLOYEE'S TOTAL SERVICE IN GRADE BE CONSIDERED AS THE DETERMINING FACTOR IN SETTING HIS PROPER SALARY STEP IN SUCH GRADE UNDER THE INITIAL ADJUSTMENT PROVISIONS OF THE ACT. 42 COMP. GEN. 320.

IN COMPLIANCE WITH YOUR REQUEST WE ARE ENCLOSING A COPY OF COMPTROLLER GENERAL DECISION B-157365 OF AUGUST 24, 1965, WHICH CONSIDERS SECTIONS 504 AND 602 OF THE SALARY REFORM ACT OF 1962 AND SUBSECTION 701/A) OF THE CLASSIFICATION ACT OF 1949, AS AMENDED. WE ARE ALSO ENCLOSING A COPY OF A LETTER OF APRIL 8, 1965, FROM THE VETERANS ADMINISTRATION TO THIS OFFICE REPLYING TO OUR LETTER OF FEBRUARY 24, 1965, AS YOU HAVE REQUESTED.

IN VIEW OF THE FOREGOING STATUTES AND REGULATIONS APPLICABLE IN YOUR CASE, WE DO NOT CONCUR IN YOUR VIEWS AND ARE OF THE OPINION THAT YOUR SALARY WAS PROPERLY ADJUSTED. ACCORDINGLY, WE HEREBY SUSTAIN THE ACTION TAKEN IN OUR SETTLEMENT OF JUNE 3, 1965.