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B-184280 1 (1977-02-17)

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                   ze    THE COMPTROLLER GWNEAL
ONCISION .                 . O THE UNITEn STATUS
                             WABWINGTON. D.C. *0E4U


I


DATE:  February 17. 1977


OF:   Richard L. Cepels - Retroactive step
      adjustment and bmckpay

  Eiployee who was granted less than highest
  previous rate upon,appointment and subsequent
  piomotion is not entitled to retrosctive step
  adjustment and backpay where agency ixercised
  its discretion so established h its regulations
  it denying the highest previous rate., Such
  action does not constitute an administrative
  error warranting corrective action.


     This actionuresults from the appeal by Richard S. Cepela
of  aur Claims Division settlement dated March C, 1976, which
disallowed his claim for backpay as a former e1oyee of  the
National Aeronautics and Space Administration (NASA).

     The facts in Mr. Cepela's case were fullr set forth in
the settlement of March'4, 1976, -and aed not 'ie repeated
ecept  as pertinent to theapresent decision of-the case.
Mr. Cepela's claim for backpay was disallowed on the ground
that NASA exercised its dis6retion as established by its
regulaiias  in denying him t he highest previous rate upon
appointment.  Such action did not appoar to constitute
administrative error warranting corrective action.

     Mr. Cepela states that;Mr. John Burroughs who was
promo ted to the position heid by him prior to his transfer
ti ERDA was placed in step 1,0 of g'rade GS-8, from step 10'of
grade CS-7.  Mr. Cepela claims he should have been given che
top step of the grade GS-8 at the time he iras promoted to the
position under the highest previous rate uitla. Mr. Cepela was
not given the highest previous rate because NASA excrcised
administrative discretion to limit him to the minimumn step for
the reasons given in the Claims Division settlement of March 4,
1976.

     A similar decisicn &ras made by NASA concerning Mr. John E.
Burroughs when he was employed December 20, 1971; at grade CS-7,
step 3,  He could have been given step 10 of the grade basied on
highest previous rate, $14,925 which was equivalent to grade
GS-11, step 7 at the time. On December 24, 1972, Mr. Burrough.


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