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B-219220 1 (1986-04-14)

handle is hein.gao/gaobadmgw0001 and id is 1 raw text is: 




                         THE COMPTROLLER GENERAL
O   CISION    .T         OP THE UNITED STATES
                         WASHINGTON. 0.C. 20548




FILE:     B-219220             DATE: April 14, 1986

MATTER OF:       John R. MacDonald


DIGEST:

        When an agency assigns employees to the
        merit pay system and then reassigns them
        back to the General Schedule system, those
        employees are not entitled to retroactive
        pay a-d within-grade waiting time credit
        equal to what they would have accrued if
        they had remained in the General Schedule
        system, unless administrative error
        occurred. An agency that properly con-
        verted an employee to merit pay status and
        then reconverted him to the General Sched-
        ule upon its prospective adoption of a new
        standard of employee coverage under the
        merit pay system, and properly assigned
        the employee to comparable pay levels,
        acted in conformity with the relevant
        statutes' and regulations, and did not
        commit administrative error. Therefore,
        the employee is not entitled to additional
        pay and within-grade waiting time credit
        based on his claim that he was improperly
        assigned to the merit pay system.

     We have been asked to review a settlement of our Claims
Group denying the claim of Environmental Protection Agency
(EPA) employee John R. MacDonald for backpay and within-
grade step increase waiting time credit arising out of his
assignment to the merit pay system. In light of the facts
presented, and the applicable provisions of statute and
regulation, we deny Mr. MacDonald's claim and sustain our
Claims Group's settlement in the matter.

                         Background

     The Civil Service Reform Act of 1978 established a
merit pay system for federal supervisors and management
officials in GS-13, 14 and 15 positions. Employees assigned
to the merit pay systen receive pay adjustments based upon
performance appraisals and are eligible for cash awards in
recognition of superior service. See, generally, 5 U.S.C.
§§ 5401-5405.

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