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B-221525 1 (1986-04-23)

handle is hein.gao/gaobadmhg0001 and id is 1 raw text is: THE COMPTROLLER GENERAL O CISION oP THE UNITEO STATES 'WASHINGTON. 0. C. 20548 FILE: B-221525 DATE: April 23, 1986 MATTER OF: Barbara J. Cox -- Claim for Retroactive Salary Adjustment DIGEST: Employee accepted grade GS-3, step 1 posi- tion with Veterans Administration (VA) but seeks retroactive salary adjustment and backpay because the VA did not allow her additional steps in grade GS-3 based on her highest previous rate (grade GS-6, step 8). The employee's claim is denied since (1) payment of the highest previous rate is discretionary with the agencies, (2) applic- able VA regulations do not require payment of the highest previous rate in these cir- cumstances, and (3) the VA's determination was not shown to be arbitrary, capricious, or an abuse of discretion. ISSUE The issue in this decision concerns the claim of an employee to receive the benefit of her highest previous rate upon appointment to a position with the Veterans Administration (VA). We hold that since payment of the employee's highest previous rate by the VA is discretionary under the circumstances, the employee is not entitled to the benefit of her highest previous rate, absent evidence that the agency action was arbitrary, capricious, or an abuse of discretion. BACKGROUND This decision is in response to a request from the National Federation of Federal Employees (NFFE), reference: 153-RE-53, seeking a retroactive salary adjustment and backpay based on the highest previous rate rule for Mrs. Barbara J. Cox. The request for our decision was filed under our labor-management procedures contained in 4 C.F.R. Part 22 (1985). The letter from NFFE states that, in 1979, Mrs. Cox transferred from her position as an Accounting Technician at the National Security Agency (NSA), Ft. Meade, Maryland, O); 1A3_5

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