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B-197983 1 (1981-05-22)

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                     UNITED STATES GENERAL ACCOUNTING OFFICE
                             WASHINGTON, D.C. 20548


OFFICE OF GENERAL COUNSEL


      B-197983                                         May 22, 1981





      Mr. Jon Heller
      International  Organizer
      Office  and Professional Employees
      236 Daylight  Building
      Knoxville, Tennessee   37902

      Dear Mr. Heller:

           Reference  is made to your letter dated March 27, 1981,
      concerning Mr. John  A. Thompson's claim of entitlement to
      grade and pay  retention as the result of a reduction in
      force  (RIF) due to the closing of a Department of Defense
      installation.  You  have asked for reconsideration of our
      decision B-197983,  October 21, 1980, denying Mr. Thompson's
      claim on  the basis that he was not placed in the lower-
      grade position  as a result of RIF procedures.  In so holding,
      we noted that Mr. Thompson  was not subject to a RIF notice
      at the  time he obtained the downgraded position with another
      agency.  As a basis  for requesting reconsideration, you have
      submitted  a letter dated March 28, 1977, indicating that all
      civilian employees  of the Missile Site Radar Branch were to
      be off  the rolls by September 30, 1977.

           The letter of  March 28, 1977, indicates that Mr. Thompson
      was notified  of the impending RIF prior to his departure on
      April 10, 1977,  for a downgraded position with the Department
      of Energy.  Given  this notice, you suggest that it is an
      overly restrictive  interpretation of the regulations to deny
      grade and pay  retention simply because he departed voluntarily
      before the  formal RIF notice was issued on June 30, 1977.

           While we do  not question your view that Mr. Thompson
      acted prudently  under the circumstances, he was not placed
      in a lower-grade  position as a result of RIF procedures
      but rather as  a voluntary act on his part.  Grade and pay
      retention  under 5 U.S.C. §9 5362 and 5363 (Supp. II, 1978)
      extend to an employee  who is placed as a result of
      reduction  in force procedures in a lower-grade position.
      Thus,  its benefits are limited to cases where the agency
      responsible  for the RIF offers or places the employee in

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