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A former Navy employee appealed the denial of his claim for additional compensation, contending that the Navy erroneously reduced his basic pay upon his return from an overseas assignment. Upon reconsideration, GAO held that the: (1) Navy did not set the employee's basic pay on the basis of the special rate of pay he received prior to his assignment outside the United States; (2) employee was entitled to saved pay for the 2 years following his demotion; and (3) Navy did not properly adjust the employee's pay after those 2 years. Accordingly, the original decision was overruled and the claim was allowed.


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