530.304 Establishing special rates. 530.305 Determining employee rates. 530.306 Discontinuing special rates. 530.307 Effect of statutory pay increase.

AUTHORITY: The provisions of this Part 530 issued under 5 U.S.C. 5303, E.O. 11073; 3 CFR, 1959-1963 Comp., unless otherwise noted.

SOURCE: The provisions of this Part 530 appear at 28 F.R. 12159, Nov. 15, 1963, unless otherwise noted.

Subpart A-[Reserved]

Subpart B-[Reserved] Subpart C-Special Rates for Recruitment and Retention

§ 530.301 Entitlement.

A department or agency may pay a special rate established under section 504 of the Federal Salary Reform Act of 1962 only in accordance with the Act, Executive Order 11073, and this subpart. § 530.302 Applicability.

This subpart applies to departments and agencies having employees occupying positions compensated under (a) section 603 (b) of the Classification Act of 1949, as amended (5 U.S.C. 1113(b)), (b) part III of title 39, United States Code, relating to personnel in the postal field service, (c) the pay scales for physicians, dentists, and nurses in the Department of Medicine and Surgery of the Veterans' Administration under chapter 73 of title 38, United States Code, or (d) sections 412 and 415 of the Foreign Service Act of 1946, as amended (22 U.S.C. 867 and 870).

(c) "Executive Order" means Part III, Special Rates for Recruitment and Retention, of Executive Order 11073, issued January 2, 1963.

(d) "Location" means a specific place of employment within an area, such as a particular shipyard or airbase.

(e) "Numerical rank" means (1) a numbered rate of the compensation schedule for a Classification Act grade; (2) a numbered rate of the compensation schedule for a Postal Field Service level; (3) a numbered step or rate within the minimum and maximum pay scale for a position of physican, dentist, or nurse in the Department of Medicine and Surgery of the Veterans' Administration; or (4) a rate within a class for a position under the Foreign Service Act; and, (5) a similar numbered rate or step within a special rate range established under any of the enumerated pay systems.

(f) "Special rate range” means a range of rates established by the Commission under the Act.

(g) "Special rates" mean rates within the special rate range, and include “special minimum rate" which is the first rate of the special rate range.

§ 530.304 Establishing special rates.

(a) The Commission establishes special rates in one or more areas or locations to the extent it considers necessary to overcome significant handicaps in the recruitment and retention of well-qualified personnel when these handicaps result from salary rates in private enterprise being substantially above the salary rates of the statutory pay schedules.

(b) The department or agency initiating a request for special rates is responsible for submitting complete supporting data including, upon the specific request by the Commission, a survey of prevailing salary rates in private enterprise in the area.

(E.O. 11056; 3 CFR, 1959-1963 Comp.) [28 F.R. 12159, Nov. 15, 1963, as amended at 29 F.R. 6147, May 9, 1964]

§ 530.305 Determining employee rates.

(a) (1) Except as provided in subparagraph (2) of this paragraph, when an employee is in a position to which a special rate range becomes applicable, the department or agency shall fix his rate in the special rate range at the numerical rank in the special rate range for his grade or level which corresponds to his existing numerical rank in the rate range for his grade level.

(2) When an employee receiving a retained rate under section 507 of the Classification Act of 1949, as amended, or under section 3560 of title 39, United States Code, relating to personnel in the postal field service, is in a position to which a special rate range becomes applicable, the department or agency shall fix his rate in the special rate range under subparagraph (1) of this paragraph without regard to the retained rate. If his retained rate is higher than the rate in the special rate range, he is entitled to receive the retained rate until it is appropriately terminated. At this time the department or agency shall fix his rate under applicable regulations.

(b) (1) When an employee is reassigned at the same grade or level under the same pay system to a position to which a special rate range applies, the department or agency shall fix his rate in the special rate range at the numerical rank in the special rate range for his grade or level which corresponds to his existing numerical rank in the rate range for his grade or level.

(2) When an employee in a position to which a special rate range does not apply is promoted to a position to which a special rate range applies, the department or agency shall determine first his numerical rank in the higher grade or level without regard to the special rate range and then shall fix his rate at the corresponding numerical rank in the special rate range for the position to which promoted.

(3) When an employee not entitled to a retained rate under appropriate statutory authority is demoted to a position to which a special rate range applies, the department or agency shall determine first his numerical rank in the lower grade without regard to the special rate range and then shall fix his rate at the corresponding numerical rank in the special rate range for the position to which demoted.

(4) Except as provided in subparagraphs (1), (2), and (3) of this paragraph, all other actions of promotion, demotion, transfer, or reassignment are governed by the pay-fixing rules established for the appropriate pay system to which, or in which, the personnel action is taken.

(c) The department or agency shall determine the rate of basic compensation for an individual receiving an initial appointment (including an appointment after a break in service of at least one

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work day) to a position to which a special rate range applies in the grade or level of the position under the regulations governing the pay system under which appointed without regard to the special rate range and shall use the numerical rank thus determined to fix the employee's rate at the corresponding numerical rank in the special rate range. [28 F.R. 12159, Nov. 15, 1963, as amended at 29 F.R. 6147, May 9, 1964]

§ 530.306 Discontinuing special rates.

(a) The Commission and each affected department or agency are responsible for initiating action to discontinue or revise special rates when these rates are no longer needed for recruitment and retention. No employee shall have his salary reduced because of that action.

(b) When the special rates for a position are discontinued, the department or agency shall determine the rate of basic compensation for an employee in the position as follows:

(1) If the employee is receiving a rate of basic compensation equal to one of the rates in the regular rate range for his grade or level, the department or agency shall fix his basic compensation at that rate.

(2) If the employee is receiving a rate of basic compensation at a rate between two rates in the regular rate range of his grade or level, the department or agency shall fix his basic compensation at the higher of the two rates.

(3) If the employee is receiving a rate of basic compensation at a rate in excess of the maximum rate for the regular rate range for his grade or level, the department or agency shall fix his basic compensation at his existing rate, and the employee shall be entitled to this rate as long as he remains in the same position or until he becomes entitled to a higher rate.

(E.O. 11056; 3 CFR, 1959-1963 Comp.) [29 F.R. 6147, May 9, 1964]

§ 530.307 Effect of statutory pay in

crease.

(a) A statutory revision of the pay schedule of the pay system for which special rates are authorized under the act automatically changes the special minimum rate (if more than the minimum rate for the new pay schedule for the grade or level concerned) to the nearest rate in the new pay schedule which does not result in a decrease and the other special rates for the special rate range

(c) "Demotion" means a change of an employee, while continuously employed, from:

(1) One Classification Act grade to a lower Classification Act grade, with or without reduction in compensation; or

(2) A higher rate paid under authority other than the Classification Act to a lower rate within a Classification Act grade.

(d) "Department" has the meaning given that word by section 201(a) of the act.

(e) "Employee" means an officer or employee of a department to whom this subpart applies.

(f) "Existing rate of basic compensation" means the rate received immediately before the effective date of a transfer, promotion, demotion, or withingrade increase.

(g) "Higher grade” means a General Schedule grade above the last previous General Schedule grade or its equivalent held by the employee.

(h) "Highest previous rate” means the highest rate of basic compensation pre

viously paid to an individual while employed in a position in a branch of the Federal Government (executive, legislative, or judicial), a mixed ownership corporation, or the government of the District of Columbia, irrespective of whether or not the position was subject to the pay schedules of the Classification Act.

(i) [Reserved]

the

(j) "New appointment" means first appointment, regardless of tenure, as an employee of the Federal Government or the government of the District of Columbia.

(k) "Promotion" means a change of an employee, while continuously employed, from:

(1) One Classification Act grade to a higher Classification Act grade; or

(2) A lower rate paid under authority other than the Classification Act to a higher rate within a Classification Act grade.

(1) “Rate of basic compensation” means the rate of compensation fixed by law or administrative action for the position held by an employee before any deductions and exclusive of additional compensation of any kind.

(m) "Reassignment" means a change of an employee, while serving continuously in the same department, from one position to another without promotion or demotion.

(n) "Reemployment" means an employment, including reinstatement or another type of appointment, after a break in service of at least 1 full workday.

(o) "Transfer" means a change of an employee, without a break in service of 1 full workday, from one branch of the Federal Government (executive, legislative, or judicial) to another or from one department to another.

[28 F.R. 10947, Oct. 12, 1963, as amended at 28 F.R. 12160, Nov. 15, 1963]

§ 531.203 General provisions.

(a) New appointments. Except as provided by section 801 of the act and paragraph (b) of this section, a new appointment is made at the minimum rate of the grade, or when the minimum rate of the grade of a position has been set under Part 530 of this chapter, a new appointment to that position is made at the minimum rate set under Part 530 of this chapter.

(b) Superior qualifications appointments. (1) A "superior qualifications

appointment” means an appointment to a position in Grade 11 or above of the General Schedule at a rate above the minimum rate of the appropriate grade under authority of section 801 of the act, and with the prior approval of the Commission (except for positions in the Library of Congress), because of the superior qualifications of the candidate.

(2) A department may make a superior qualifications appointment by new appointment or by reemployment except that when made by reemployment, the candidate must have a break in service of at least 90 calendar days from his last period of Federal employment or employment with the municipal government of the District of Columbia (other than (i) employment under an appointment as an expert or consultant under section 3109 of title 5, United States Code, (ii) employment under a temporary appointment effected primarily in furtherance of a postdoctoral research program or effected as a part of a predoctoral or postdoctoral training program during which the employee receives a stipend, or (iii) employment as a member of the Commissioned Corps of the Coast and Geodetic Survey or the Commissioned Corps of the Public Health Service).

(c) Position or appointment changes. Subject to §§ 531.204, 531.515, 539.201 of this chapter, and section 802(b) of the act, when an employee is reemployed, transferred, reassigned, promoted, or demoted, the department may pay him at any rate of his grade which does not exceed his highest previous rate; however, if his highest previous rate falls between two rates of his grade, the department may pay him at the higher rate. When an employee's type of appointment is changed in the same position, the department may continue to pay him at his existing rate or may pay him at any higher rate of his grade which does not exceed his highest previous rate; however, if his highest previous rate falls between two rates of his grade, the department may pay him at the higher rate.

(d) Computation of highest previous rate. (1) The highest previous rate is based on a regular tour of duty at that rate under an appointment not limited to 90 days or less, or for a continuous period of not less than 90 days under one or more appointments without a break in service.

(2) The highest previous rate may not be based on (i) a rate received for an appointment as an expert or consultant

under section 15 of the Administrative Expenses Act of 1946 (5 U.S.C. 55a) or (ii) a rate of basic compensation established under section 504 of the Federal Salary Reform Act of 1962 (72 Stat. 842; 5 U.S.C. 1173).

(3) When an employee's rate of basic compensation is one established under section 504 of the Federal Salary Reform Act of 1962, the employee's highest previous rate is the rate to which the employee would have been entitled had the rate established under section 504 not applied to him.

(4) If the highest previous rate was earned in a Classification Act position, it is increased by subsequent amendments of the Classification Act pay schedules. If the highest previous rate was earned in a position not subject to the Classification Act, it is computed as follows:

(i) The actual rate earned at the time of service computed on an annual basis is compared to the annual rates under the act as of the time of service to select an equivalent annual rate. When the actual rate is the same as a rate under the act, the rate under the act is the equivalent annual rate. When the actual rate is the same as a rate under the act and that rate occurs within two or more grades under the act, the rate which gives the employee the maximum benefit when it is converted under subdivision (ii) of this subparagraph is the equivalent annual rate. When the actual rate falls between two rates under the act, the higher rate is the equivalent annual rate. When the actual rate falls between two rates within the range of two or more grades under the act, the rate which gives the employee the maximum benefit when it is converted under subdivision (ii) of this subparagraph is the equivalent annual rate.

(ii) The equivalent annual rate determined under subdivision (i) of this subparagraph is converted to the equivalent rate under the current Classification Act pay schedule and that rate is the employee's highest previous rate.

(e) Agency classification action. When an agency regrades a position to a grade higher than the one to which the position had been classified by Commission action, and when subsequent to the regrading, the Commission again classifies the position to the grade which it had originally assigned the position, the rate attained by the employee in the higher

grade may not be used as his highest previous rate.

(f) Simultaneous actions. When a position or appointment change and entitlement to a higher rate of pay occur at the same time, the higher rate of pay is deemed an employee's existing rate of basic compensation. If the employee is entitled to two pay benefits at the same time, the department shall process the changes in the order which gives the employee the maximum benefit.

(5 U.S.C. 5338) [29 F.R. 12671, Sept. 9, 1964, as amended at 31 F.R. 10567, Aug. 6, 1966; 32 F.R. 12472, Aug. 29, 1967]

§ 531.204 Special provisions.

(a) Promotions and transfers. The requirements of section 802(b) of the act apply only (1) to a transfer from one Classification Act position to a higher Classification Act position, and (2) to a promotion from one Classification Act grade to a higher Classification Act grade.

(b) Classification decisions. When a classification decision is made effective retroactively under Part 511 of this chapter, the department shall treat the corrective personnel action affecting the employee concerned as a cancellation or correction, as the case may be, of the original action of demotion, and the employee is entitled to retroactive pay in accordance with the terms of the corrective action.

[29 F.R. 11689, Aug. 15, 1964, as amended at 30 F.R. 15282, Dec. 10, 1965]

Subpart C-Pay Adjustments for
Supervisors