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B-151483 1 (1979-04-02)

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United States General Accounting Office
Washington, DC 20548


Office of
General Counsel


In Reply
Refer to:


Colonel D. E. Dobson
Division Engineer
Huntsville Division, Corps
Department of the Army
P.O. Box 1600 West Station
Huntsville, Alabama  35807


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Dear Colonel Dobson:


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     This letter is in response to your letter concerning  the
decision in 43 Comp. Gen. 701  (1964) and the alleged inequity that
has occurred from the operation of the rule set forth in  that deci-
sion.  You have asked that the Comptroller General reconsider  that
decision.

     The statutory provisions establishing the decisionmaking
authority of the Comptroller General do not entitle you  to a deci-
sion.  See 31 U.S.C. 74 and 82d  (1976). However, the following
information may be helpful to you.

     The gomptroller General has, on a number of occasions,
 eviewedthe  decision in 43 Comp. Gen. 7011  The Civil Service
 ommission (now the Office of Personnel Management  (OPM)) has
 disagreed with our interpretation of 5 U.S.C. 5334(b) regarding
 step increases on repromotion as being too restrictive. OPM's
 view is based on the fact that since an employee whose rate of
 pay on repromotion is the same as his retained rate he has not
 received any increase in actual pay, it is inequitable to
 regard this action as an equivalent increase.

     In 1975, the period of time referred to in your letter,
employees demoted as a result of a reduction in force were
entitled to salary retention pursuant to 5 U.S.C. 5337  (1976).
That section provided that under the conditions stated therein a
General Schedule employee who is reduced in grade is entitled  to
basic pay including statutory increases, at the rate he was en-
titled to immediately before the reduction for a period of 2 years
from the effective date of the reduction.  Under this statute  the
rate of compensation was to be retained for 2 years but the grade
was reduced and if he was not repromoted during the period of


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GAO


B-151483


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