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B-220701 1 (1986-03-31)

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                            THE COMPTROLLER GENERAL
    OECISION      .       . OF THE UNITEO *TATKU
                           WASHINGTON. D.C. 20548




    FILE:   B-220701              DATE:     March 31, 1986

    MATTER OF:    Stanley P. Laber - Within Grade Salary
                   Increase - Highest Previous Rate Rule

    DIGEST:
          An employee (grade GS-9, step 1), an intern
          in an agency's training program, was author-
          ized to go on leave without pay. While in
          that status, he was employed by another
          agency in a higher grade. He voluntarily
          resigned that position and resumed his
          training with the first agency. Following
          training, he was reassigned, but remained
          in grade GS-9, step 1. He requested a
          salary adjustment to step 8 of his grade,
          contending that the agency's regulations
          mandated that rate of pay by application
          of the highest previous rate rule. The
          highest previous rate rule allows agencies
          discretion to set pay at less than the
          highest previous rate. Therefore, unless
          an agency affirmatively relinquishes that
          discretion in its own regulations, it is
          not obligated to pay the highest allowable
          rate. The agency in this case has not
          relinquished discretion to set pay at less
          than the highest allowable rate. There-
          fore, the agency denial of the claim is
          sustained.

     This decision is in response to a request from the Chief,
Accounting and Finance Division, Office of the Comptroller,
Defense Logistics Agency (DLA). It concerns the entitlement
of Mr. Stanley P. Laber to receive backpay under the highest
previous rate rule incident to a reassignment and transfer.
We conclude that he is not so entitled for the following
reasons.

                        BACKGROUND

     Mr. Laber was employed in the DLA Centralized Intern
Development Office, Milwaukee, Wisconsin, as a Quality
Assurance Specialist (Intern), in grade GS-9, step 1, with
job occupation code 1910. On March 6, 1984, he requested

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