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UNITED STATES GENERAL ACCOUNTING OFFICE
WASHINGTON, D.C. 20548
OFFICE OF GENERAL COUNSEL
IN REPLY -
REFER TO: B -186008 (M\4RYT)
MAY 2 9 1979
Mr. Alvin S. Levy
4th .ice-lresident
AFGE, Local 1923, AFL-CIO
Social Security Administration
Room 1-J-21 Operations
6401 Security Boulevard
Baltimore, Maryland 21235
Dear Mr. Levy:
Further reference is made to your letter dated February 12,
1979, concerning the etitlement ef..rs.. G=1si-a L.
Soc-i-aFS-eear-itv-Ad mini'ta-ti--e-niploy-ee-, to salary retention
incident to g( change to ; lower grade position]
On the basis of the information provided by you, we offer the
following comments on the question presented in your letter. If,
entit d to salary retention, she may submit a claim through her
ag icy to our Claims Division in accordance with the provisions
31 U. S.C. 71 and .F. R. Part 31.
Your letter states that Mrs. Emerson accepted a change to
lower grade from the position of Claims Clerk, grade GS-5, step 1,
to Claims Examiner, grade GS-4, step 3, effective December 3,
1978. Your letter states further that the union raised the question
of her entitlement to sa .ry retention based i on our decision in
Faye Abu-Ghazaleh, Comp. Gen. 199 -186008, December 22,
TOY , T-i~T-fETeagency has refused to grant Mrs. Ermerson
salary retention in connection with her accepting a low-er-graded,
career-ladder position.
Under the provisions 5 S. C. 5337 (1976), an employee
who was reduced in grade could, under certain conditions, retain
his or her previous rate of pay for up to 2 years, if 1h ¾reduption
in grade was not at the employee's own request. See also C .R
Part 531, subpart E (1978). However, one of the req.uirements
or eligibility for salary retention und-er section 5337 .-as that
the employee have served in a higher graded position 2 or more
years immediately before the reduction in grade. S ee 5 U S. C.
§ 5337(a)(4). Ve note that Mrs. Enerson was promotd to her
grade GS-5 position effective July 2, 1978, and that he change to
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