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B-138626 1 (1971-07-28)

handle is hein.gao/gaobablav0001 and id is 1 raw text is: R3STfICTEID - Net to be ueokas~d .wtsO We @ eral D601Aent, Office xcept on tir, bhaaapoval o LEA o by t he O ff ic e f Congro l ea l R ftA COMPTROLLER GENERAL -OF THE AT EDe021 WASHINGTON. 0. 20 0,o ,1111 9.Q IQf - 1LM090609 Dear Mr. Forsythe: Pursuant to your request of June 2, 1971, we have reviewed a suggestion by your constituent, Mr. Simon S. Harris, 237 Maine Avenue, Cherry Hill, New Jersey, for modifying the manner of com- puting hourly pay rates for civil service employees. Mr. Harris suggested that the provisions-of section 5504 of Title 5, United States Code--biweekly pay periods and computation of pay--be amended to provide for dropping mills in computing hourly pay rates. He estimated that such a procedure could save the Govern- ment $15 million a year. Section 5504(b) provides that: For pay computation purposes affecting an employee, the annual rate of basic pay established by or under statute is deemed payment for employment during 52 basic administrative workweeks of 40 hours. When it is necessary for computation of pay under this sub- section to convert an annual rate of basic pay to a basic hourly, daily, weekly, or biweekly rate, the following rules govern: (1) To derive an hourly rate, divide the an- nual rate by 2,080. (2) To derive a daily rate, multiply the hourly rate by the number of daily hours of ser- vice required. (3) To derive a weekly or biweekly rate, mul- tiply the hourly rate by 40 or 80, as the case may be. Rates are computed to the nearest cent, counting one- half and over as a whole cent. ***. (Underscoring supplied.) The above method of computing rates resulted from the enact- ment of the Government Employees Salary Reform Act of 1964, Public Law 88-426 (H.R. 11049), approved August 14, 1964. Prior to the enactment of Public Law 88-426, all pay rates were computed in full cents, counting a fraction of a cent as the next higher cent. The conference report accompanying House bill 11049 (Report 1647, August 3, 1964), included the following re- marks concerning the computation of pay. 50TH ANNIVERSARY 11111))O

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