(2) When an employee receiving a retained rate under section 5337 of title 5, United States Code, 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 pay for an individual receiving an initial appointment (including an appointment after a break in service of at least one

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. § 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 pay 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 pay for an employee in the position as follows:

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

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

(3) If the employee is receiving a rate of basic pay 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 pay 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.

§ 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 section 5303 of title 5, United States Code, 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 are changed to similar rates in the new schedule adjusted on the basis of the new special minimum rate.

(b) When an employee was receiving a special rate inmediately before the ef

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

(1) One General Schedule grade to a lower General Schedule grade, with or without reduction in pay; or

(2) A higher rate paid under authority other than subchapter III of chapter 53 of title 5, United States Code, to a lower rate within a General Schedule grade.

(b) "Agency" has the meaning given that word by section 5102 of title 5, United States Code.

(c) "Employee" means an employee of an agency to whom this subpart applies.

(d) "Existing rate of basic pay" means the rate received immediately before the effective date of a transfer, promotion, demotion, or within-grade increase.

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

(f) "Highest previous rate" means the highest rate of basic pay previously 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 General Schedule.

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

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

(1) One General Schedule grade to a higher General Schedule grade; or

(2) A lower rate paid under authority other than subchapter III of chapter 53 of title 5, United States Code, to a higher rate within a General Schedule grade.

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

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

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

(1) "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 agency to another.

(a) New appointments. Except as provided by section 5333 (a) of title 5, United States Code, 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 5333 of title 5, United States Code, 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) An agency 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 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 employment under a temporary appointment of a graduate student when the work performed by the student is the basis for completing certain academic requirements for an advanced degree, (iii) employment as a member of the Commissioned Corps of the National Oceanic and Atmospheric Administration or the Commissioned Corps of the Public Health Service, or (iv) employment which is not both full-time employment and the principal employment of the candidate).

(c) Position or appointment changes. Subject to §§ 531.204, 531.515, 539.201 of this chapter, and section 5334(a) of title 5, United States Code, when an employee is reemployed, transferred, reassigned, promoted, or demoted, the agency 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 agency may pay him at the higher rate. When an employee's type of appointment is changed in the same position, the agency 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 agency 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 ap

pointment as an expert or consultant under section 3109 of title 5, United States Code, or (ii) except as provided in subparagraph (3) of this paragraph, a rate of basic pay established under section 5303 of title 5, United States Code.

(3) When an employee's rate of basic pay is one established under section 5303 of title 5, United States Code (referred to in this subparagraph as a special rate), the employee's highest previous rate is the rate to which he would have been entitled had the special rate not applied to him. However, with the prior approval of the Commission, an agency may use the special rate as the highest previous rate when:

(i) The employee is reassigned to a position for which no special rate, or a lesser special rate, has been established; and

(ii) The agency head, or an employee specifically designated by him for that purpose, determines that the need for the services of the employee, and his contribution to the program of the agency, will be greater in the position to which he is being reassigned.

The reasons for the determinations required by this subparagraph shall be submitted in writing to the Commission with the request for prior approval.

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

(1) The actual rate earned at the time of service computed on an annual basis is compared to the annual rates under the General Schedule as of the time of service to select an equivalent annual rate. When the actual rate is the same as a rate under the General Schedule, the rate under the General Schedule is the equivalent annual rate. When the actual rate is the same as a rate under the General Schedule and that rate occurs within two or more grades under the General Schedule, 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 General Schedule, 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 General Schedule,

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 General 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 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 pay. If the employee is entitled to two pay benefits at the same time, the agency shall process the changes in the order which gives the employee the maximum benefit.

(5 U.S.C. 5333) [33 F.R. 12448, Sept. 4, 1968, as amended at 36 F.R. 3411, Feb. 24, 1971] § 531.204 Special provisions.

(a) Promotions and transfers. (1) The requirements of section 5334 (b) of title 5, United States Code, apply only (i) to a transfer from one General Schedule position to a higher General Schedule position, and (ii) to a promotion from one General Schedule grade to a higher General Schedule grade.

(2) For the purpose of section 5334 (b) of title 5, United States Code, "existing rate of basic pay" includes a special rate authorized under section 5303 of title 5, United States Code, for a General Schedule grade.

(b) Classification decisions. When a classification decision is made effective retroactively under Part 511 of this chapter, the agency 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. [33 F.R. 12448, Sept. 4, 1968, as amended at 33 F.R. 14399, Sept. 25, 1968]

§ 531.205 Pay conversion rules for rates of basic pay in the General Schedule adjusted under 5 U.S.C. 5305 and Executive Order 11691.

(a) Except as provided in paragraph (b) of this section the rate of basic pay of an employee subject to the General Schedule shall be initially adjusted effective the first day of the employee's first pay period which begins on or after January 1, 1973, as follows:

(1) If an employee is receiving basic pay immediately before the effective date of his pay adjustment at one of the rates of a grade in the General Schedule, he shall receive the rate of basic pay for the corresponding numerical rate of the grade in effect on and after such date.

(2) If an employee is receiving basic pay immediately before the effective date of his pay adjustment at a rate between two rates of a grade in the General Schedule, he shall be paid the higher of the two corresponding rates of basic pay in effect on and after such date.

(3) If an employee is receiving basic pay immediately before the effective date of his pay adjustment at a rate in excess of the maximum rate of his grade, he shall receive his existing rate of basic pay increased by the amount of increase made by Executive Order 11691 in the maximum rate for his grade.

(4) If an employee, immediately before the effective date of his pay adjustment, is receiving, pursuant to section 2(b) (4) of the Federal Employees Salary Increases Act of 1955, an existing aggregate rate of pay determined under section 208 (b) of the Act of September 1, 1954 (68 Stat. 1111), plus subsequent increases authorized by law, he shall receive an aggregate rate of pay equal to the sum of his existing aggregate rate of pay on the day preceding the effective date of his pay adjustment, plus the amount of increase made by Executive Order 11691 in the maximum rate of his grade, until (i) he leaves his position, or (ii) he is entitled to receive aggregate pay at a higher rate by reason of the operation of any provision of law; but, when such position becomes vacant, the aggregate rate of pay of any subsequent appointee thereto shall be fixed in accordance with applicable provisions of law. Subject to subdivisions (i) and (ii) of this subparagraph, the amount of the increase authorized by this section shall be held and considered for the purposes of section 208(b) of the Act of Septem

ber 1, 1954, to constitute a part of the existing rate of pay of the employee.

(b) Rates of basic pay authorized under section 5303 of title 5, United States Code, paid to an employee subject to the General Schedule shall be adjusted in accordance with § 530.307(b)(1) of this chapter.

[37 F.R. 28271, Dec. 22, 1972]

Subpart C-Pay Adjustments for Supervisors

§ 531.301 Authority of agency.

This subpart authorizes an agency to make a special adjustment in the pay of a supervisor in a General Schedule position who regularly has responsibility for supervision over one or more wage board employees. In making this pay adjustment, an agency is governed by section 5333(b) of title 5, United States Code, and this subpart.

In determining whether to use the authority under section 5333(b) of title 5, United States Code, and this subpart, an agency shall consider (a) the relative rate-ranges of the supervisor and the wage board employee supervised by him as well as the specific rate either is receiving at the time, and (b) the equities among supervisors in the same organizational entity as well as the equities between the supervisor and the wage board employee supervised by him.

§ 531.304 Requirements for entitlement.

(a) Basic. Before an agency may adjust the pay of a supervisor under section 5333(b) of title 5, United States Code, and this subpart, it must find that (1) the supervisor regularly has responsibility for supervision (which must