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B-197025 1 (1980-07-18)

handle is hein.gao/gaobadiks0001 and id is 1 raw text is: ~ < THE COMPTROLLER GENERAL DEZISICN O F THE UNITED STATES W AVASHi.NGTON. D C 205 S FILE: B-197025 DATE: July 18, 1980 v1AATTER OF: Betty J. Beasley, et.al., - Pay rate upon promotion while receiving saved pay DIGEST: Employees accepted downgrade from grade GS-6, step 9, to grade GS-5, step 10, in order to enter Upward Mobility Program. Their entitlement to saved pay under 5 U.S.C. § 5337 (1976) does not preclude consid- eration of highest previous rate when employees are subsequently promoted to grade GS-7. See 5 U.S.C. § 5334(b) (1976). This decision is in response to a request from D. R. Newberry,_75 Finance and Accounting Officer, U.S. Army Tank-Automotive Materiel Readiness Command (Army Command), concerning the proper rate of pay for employees promoted while receiving saved pay The issue is whether the agency may use the highest previouY rate rule when pro- moting an employee who had previously .been downgraded and found to be entitled to saved pay. The report from the Army Command states that in December 1976, several employees accepted a change to a lower grade from grade GS-6, step 9, to grade GS-5, step 10, in order to enter an Upward Mobility Program. These employees were found to be entitled to saved pay for up to 2 years under the provisions of 5 U.S.C. § 5337 (1976). After the successful completion of 1 year in the Upward Mobility Program, these employees were then promoted to the grade GS-7 level. The Army Command's Civilian Personnel Office used the highest previous rate rule for these promotions and determined that their highest rate pf pay (grade GS-6, step 9, $14,061 per annum) fell between steps 5 and 6 of grade GS-7. Therefore, these employees were promoted to grade GS-7, step 6 ($14,391 per annum), and their entitlement to: saved pay terminated. See 5 U.S.C. § 5337(a) (1976). The Army Command's Legal Office questioned the use of the highest revious rate rule since under the provisions of 5 U.S.C. § 5334(b) an employee receiving saved pay is entitled upon promotion to basic _pay two steps above the rate he would be receiving but for saved pay -(in this case a rate in grade GS-7 two steps above grade GS-5, step 10) or his existing rate of basic pay, if higher. The Legal Office etermined that a two-step increase trom GS-5, step 10, would be $13,611 per annum which falls between steps 4 and 5 of grade GS-7,

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