[Federal Register Volume 64, Number 136 (Friday, July 16, 1999)]
[Notices]
[Pages 38486-38491]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18191]
=======================================================================
-----------------------------------------------------------------------
OFFICE OF PERSONNEL MANAGEMENT
Interim OPM Criteria for IRS Broadbanding System
AGENCY: Office of Personnel Management.
ACTION: Notice with request for comments.
-----------------------------------------------------------------------
SUMMARY: This notice publicizes interim criteria for broadbanding
systems for the Internal Revenue Service (IRS). The Internal Revenue
Service Restructuring and Reform Act of 1998 authorizes the Secretary
of the Treasury to establish one or more broadbanding systems covering
all or any portion of the IRS workforce under the General Schedule
(GS). Title 5, United States Code, directs the Office of Personnel
Management (OPM) to prescribe criteria for IRS broadbanding systems and
specifies certain principles that such criteria must follow, at a
minimum.
DATES: Submit comments on or before August 16, 1999.
ADDRESSES: Send written comments to Gregory Zygiel, U.S. Office of
Personnel Management, 1900 E Street, NW. Room 7305, Washington, DC
20415-8320, or submit comments electronically to totalcomp@opm.gov.
FOR FURTHER INFORMATION CONTACT: Gregory Zygiel, 202-606-8047.
SUPPLEMENTARY INFORMATION: The Internal Revenue Service Restructuring
and Reform Act of 1998 (Pub. L. 105-206) authorizes the Secretary of
the Treasury to establish one or more broadbanding systems covering all
or any portion of the IRS workforce under the General Schedule (GS). 5
U.S.C. 9509(b) directs OPM to prescribe criteria for IRS broadbanding
systems and specifies certain principles that such criteria must
follow, at a minimum. The criteria were developed after conferring with
the Department of the Treasury, the Internal Revenue Service, and the
National Treasury Employees Union. They are designed to incorporate the
lessons learned from previous experience with broadbanding under
personnel demonstration projects.
5 U.S.C. 9509(b)(3) requires that employees covered by IRS
broadbanding systems will remain subject to the laws and regulations
covering General Schedule employees (e.g., locality payments, the
aggregate limitation on pay, premium pay, and recruitment and
relocation bonuses and retention allowances), except as otherwise
provided in the criteria.
The publication of these criteria permits IRS to implement
broadbanding systems under this authority. Before implementing any
broadbanding system under this authority, IRS must develop written
plans, policies, and implementing procedures that address each relevant
criterion, including descriptions of broadbanding structure(s),
classification criteria, positions covered, the method of pay
progression within a band, pay-setting policies, policies for paying
supervisors or management officials, and policies for converting
positions into broadbanding systems. Any public comments may assist OPM
in working with IRS as it develops such plans, policies, and
procedures.
Dated: July 9, 1999.
Office of Personnel Management.
Janice R. Lachance,
Director.
Table of Contents
I. Authority
II. Applicability
III. Broadbanding System Plan
IV. Definitions
V. Broadbanding Criteria
Appendix A: Staffing Supplements
Appendix B: Conversion into Broadbanding Systems
Appendix C: Procedures for Converting Employees Back to the General
Schedule Pay System
I. Authority
Section 9509 of title 5, United States Code, as added by the
Internal Revenue Service (IRS) Restructuring and Reform Act of 1998
(Public Law 105-206), provides the Secretary of the Treasury with the
authority to establish one or more broadbanding systems covering all or
any portion of the IRS workforce under the General Schedule (GS).
Section 9509(b) directs the Office of Personnel Management (OPM) to
prescribe criteria for IRS broadbanding systems and specifies certain
principles that such criteria must follow, at a minimum.
II. Applicability
Section 9509(a) defines a ``broad-banded system'' as a system for
grouping positions for pay, job evaluation, and other purposes that is
different from the General Schedule pay and classification system
established under chapter 51 and subchapter III of chapter 53 of title
5, United States Code. Employees covered by IRS broadbanding systems
are not covered by subchapter III of chapter 53 or by those provisions
of chapter 51 that define General Schedule grades. However, selected
provisions from those parts of law are used in applying parallel
features to employees in IRS
[[Page 38487]]
broadbanding systems, as provided in these criteria.
As required by 5 U.S.C. 9509(b)(3), employees covered by IRS
broadbanding systems are to be treated as if they are General Schedule
employees for the purpose of applying other laws and regulations
governing General Schedule employees, except as otherwise provided in
these criteria. Applicable laws and regulations include, but are not
limited to: 5 U.S.C. 5304, authorizing locality-based comparability
payments; 5 U.S.C. 5307, establishing a limitation on aggregate pay; 5
U.S.C. chapter 55, subchapter V, authorizing various forms of premium
pay; and 5 U.S.C. 5753 and 5754, authorizing recruitment and relocation
bonuses and retention allowances.
Note: Many title 5 provisions apply to Federal employees on a
more general basis and do not base coverage on whether an employee
is covered by the General Schedule system (e.g., severance pay,
leave, retirement, and insurance).
Employees in IRS broadbanding systems are not covered by the
special salary rate program established under 5 U.S.C. 5305. However,
IRS broadbanding systems may use a parallel authority to establish
staffing supplements, which are linked to established special salary
rates, as described in Appendix A.
These criteria apply only to broadbanding systems that cover
General Schedule positions. 5 U.S.C. 9509(b)(1)(B) authorizes the
Secretary of the Treasury, with the prior approval of the Director of
OPM, to include in a broadbanding system positions that otherwise would
be subject to subchapter IV of chapter 53 (prevailing rate systems) or
5 U.S.C. 5376 (senior-level positions). Including such positions would
require OPM's separate review and approval of a specific plan for that
purpose. The criteria presented here are not intended to apply to
broadbanding systems that include such positions.
III. Broadbanding System Plan
Before implementing any broadbanding system under this authority,
IRS must develop a written plan that includes policies and implementing
procedures to address each criterion that is relevant to the
broadbanding system, including descriptions of broadbanding
structure(s), positions covered, classification criteria, the method of
pay progression within a band, policies for setting and adjusting pay,
policies for paying supervisors or managerial employees, and policies
for converting positions into broadbanding systems.
IV. Definitions
Under these criteria--
Band means a pay level or work level within a career path
containing one or more General Schedule grades and related ranges of
pay.
Broadbanding system means a system for grouping positions for pay,
job evaluation, and other purposes that is different from the General
Schedule system established under chapter 51 and subchapter III of
chapter 53 of title 5, United States Code, as a result of combining the
grades and related ranges of pay for one or more occupational series.
Career path means a grouping of one or more occupational series
into broad occupational families or career tracks for job evaluation,
pay, or other purposes. A career path may contain one or more bands.
Employee means an individual who would otherwise be covered by
chapter 51 and subchapter III of chapter 53 of title 5, United States
Code, if not covered by a broadbanding system.
Supervisor and managerial employee have the meaning given those
terms in OPM's General Schedule Supervisory Grade Evaluation Guide.
V. Broadbanding Criteria
Criteria are provided below under the applicable principles listed
in 5 U.S.C. 9509(b)(3)(A)-(F) (labeled A-F) and an additional principle
(labeled G).
A. Ensure That the Structure of Any Broadbanding System Maintains the
Principle of Equal Pay for Substantially Equal Work
IRS broadbanding systems must--
1. Link to the General Schedule.
2. Assign occupations to career paths based on the nature of work
performed, the qualifications required, the normal career and pay
progression, and other characteristics of those occupations.
3. Combine General Schedule grades into bands following the
criteria in B. The range of difficulty and responsibility of each band
must be the same as the range of difficulty and responsibility of the
band's constituent grades (i.e., consistent with the grade level
criteria in standards published by OPM in accordance with 5 U.S.C.
5105) and must represent the normal range of work performed in the
organization.
4. Place positions into bands within career paths in accordance
with--
a. Classification standards published by OPM under 5 U.S.C. 5105;
or
b. Any agency guidance which places a position within its correct
band and career path (but which need not be sufficient to determine a
position's correct General Schedule grade).
5. Not include law enforcement officers covered by special salary
rates under section 403 of the Federal Employees Pay Comparability Act
of 1990 in the same band as non-law enforcement officers when the
maximum grade in the band is any one of grades 3 through 10.
6. Use established General Schedule rates of pay (including any
applicable locality rates or special salary rates) for premium pay
purposes under subchapter V of chapter 55 of title 5, United States
Code, and 5 CFR part 550, subpart A (i.e., for the purpose of
determining the maximum hourly overtime rate and the biweekly premium
pay limitation).
B. Establish the Minimum and Maximum Number of Grades That May Be
Combined Into Bands
A band under an IRS broadbanding system may contain--
1. A minimum of one General Schedule grade.
2. A maximum of--
a. Eight General Schedule grades when grades 13, 14, and 15 are not
included in the band;
b. Five General Schedule grades when grade 13 is included, but
neither grade 14 nor 15 is included in the band;
c. Three General Schedule grades when grade 14 is included, but
grade 15 is not included in the band; and
d. Two General Schedule grades when grade 15 is included in the
band.
C. Establish the Requirements for Setting the Minimum and Maximum Rates
of Pay in a Band
1. The minimum rate of basic pay for each band must equal the
minimum rate of basic pay payable under 5 U.S.C. 5332 for the lowest
General Schedule grade in that band. The maximum rate of basic pay for
each band must equal the maximum rate of basic pay payable under 5
U.S.C. 5332 for the highest General Schedule grade in that band.
a. Notwithstanding C1, preceding, the maximum rates of basic pay
for bands covering law enforcement officers must equal the maximum
special salary rates for grades 3 through 10 established under section
403 of the Federal Employees Pay Comparability Act of 1990, where
applicable.
b. The minimum and maximum rates of basic pay that define each band
must be adjusted at the same time and in the same manner as adjustments
are made in the corresponding minimum and maximum General Schedule
rates of basic pay under 5 U.S.C. 5303 or similar provision of law.
[[Page 38488]]
2. The maximum rate of basic pay for any band may not exceed the
maximum rate of basic pay for grade 15.
3. Employees in IRS broadbanding systems are not covered by the
special salary rate authority in 5 U.S.C. 5305. However, IRS
broadbanding systems may provide for the use of staffing supplements
instead of special salary rates under Appendix A of these criteria. If
special salary rates are not replaced with staffing supplements,
special rate employees must be converted into a broadbanding system
under the procedures established in Appendix B of these criteria.
4. Only employees receiving retained rates of pay under subchapter
VI of chapter 53 of title 5, United States Code, as applied in the
broadbanding system, or in an approved staffing supplement category may
receive rates of pay that exceed the locality-adjusted band maximum
rates.
D. Establish the Requirements for Adjusting the Pay of an Employee
Within a Band
1. IRS broadbanding systems must include--
a. Policies for adjusting the pay of an employee within a band,
including--
(1) Adjustments made in accordance with paragraphs D2a and D3a; and
(2) Increases based on individual factors such as an employee's
performance, skills, or competencies and/or time at pay level, except
that such increases may not be based solely on time at pay level.
Increases that advance an employee's relative position in a band (i.e.,
exceed the adjustments made in accordance with paragraphs D2a and D3a)
may be paid only to employees whose performance meets or exceeds
retention standards.
b. Policies concerning which level of management will make pay
adjustment decisions for employees.
c. Principles for managing pay progression and payroll costs
associated with basic pay adjustments. IRS must provide funding for
salary increases under its broadbanding systems. Because broadbanding
systems provide more choices on how to distribute pay to employees, it
is necessary to have an overall budget to manage the costs associated
with such choices. At a minimum, the salary increase budget must
include funds equal to the amounts that would be required for
individual pay adjustments made at the time of schedule adjustments
under 5 U.S.C. 5303 (or similar provision of law) and locality-based
comparability payments under 5 U.S.C. 5304 (or similar provision of
law). A salary increase budget must meet salary cost objectives and be
consistent with policies and procedures for adjusting pay under a
broadbanding system that are established to ensure equal pay for work
of equal value.
2. IRS broadbanding systems must provide for--
a. Making adjustments in the rates of basic pay for all employees
who are not supervisors or managerial employees equivalent to the
annual adjustments provided to General Schedule employees under 5 CFR
531.205. Employees on pay retention must be granted 50 percent of the
increase in the maximum rate of basic pay for their band.
b. The payment of locality-based comparability payments for
employees covered by 5 U.S.C. 5304 and 5 CFR part 531, subpart F, and
special geographic adjustments for law enforcement officers covered by
section 404 of the Federal Employees Pay Comparability Act of 1990 and
5 CFR part 531, subpart C. (See Appendix A for information on possible
staffing supplements.)
3. IRS pay adjustment policies may provide for--
a. Determining the circumstances under which adjustments in rates
of basic pay may be granted to supervisors or managerial employees up
to the equivalent of the annual adjustments provided to General
Schedule employees under 5 CFR 531.205. However, an employee's rate of
basic pay may not fall below the minimum rate of his or her band as a
result of receiving less than the full adjustment.
b. Reducing an employee's rate of basic pay within a band, but only
for unacceptable performance, misconduct, or loss of supervisory status
(if such loss results in reversal of a within-band adjustment granted
at the time of placement in a supervisory position). Any reductions
based on unacceptable performance or misconduct are adverse actions
under 5 U.S.C. 7512.
c. Control points within bands. Control points are dollar points
within bands that limit or restrict pay-setting or the movement of
employees through the rate range of the band. If control points are
used, IRS broadbanding systems must include policies on the number of
control points within bands and how they are derived (e.g., as a
percentage of the rate range) and applied (i.e., the circumstances
under which an employee's rate of pay may be set or adjusted at, above,
or below a control point).
E. Establish the Requirements for Setting the Pay of a Supervisory
Employee Whose Position Is in a Broad Band or Who Supervises Employees
Whose Positions Are in Broad Bands
1. IRS broadbanding systems may provide for a separate broadbanding
system or career path for supervisors and managerial employees.
2. A supervisor's or managerial employee's rate of pay may not be
based on the salaries of the employees he or she supervises or manages.
F. Establish the Requirements and Methodologies for Setting the Pay of
an Employee Upon Conversion to a Broadbanding System, Initial
Appointment, Change of Position or Type of Appointment (Including
Promotion, Demotion, Transfer, Reassignment, Reinstatement, Placement
in Another Broad Band, or Movement to a Different Geographic Location),
and Movement Between a Broadbanding System and Another Pay System
1. Conversion into a broadbanding system. IRS broadbanding systems
must include policies for determining the career path, band, and pay
rate for employees upon conversion into the system consistent with the
provisions in Appendix B. IRS broadbanding systems may also include
policies for making prorated within-grade increase or career-ladder
promotion payments to employees as an adjustment in basic pay or a
lump-sum payment upon conversion from the General Schedule to a
broadbanding system consistent with the provisions in Appendix B.
2. Pay-setting policies. IRS broadbanding systems must include
policies for determining an employee's career path, band, and rate of
basic pay upon initial appointment, promotion, demotion, transfer,
reassignment, or placement in a different band or career path. The
methods used to set pay must be consistent with the principle of equal
pay for substantially equal work.
a. Pay must be set at least at the minimum rate and must not exceed
the maximum rate of basic pay of the band to which assigned (unless pay
retention applies).
b. Policies must specify the conditions under which pay may be set
above the minimum rate of the band and the amount of any minimum or
maximum pay increase upon promotion. The time-in-grade provisions in 5
CFR 300.601-605 do not apply to employees under a broadbanding system.
c. Upon movement to a different geographic area, locality-based
[[Page 38489]]
comparability payments and special pay adjustments for law enforcement
officers must be redetermined and paid in accordance with 5 CFR part
531, subparts F and C, respectively. Staffing supplements must also be
redetermined consistent with the provisions in Appendix A.
d. Movement of an employee to a band with a lower maximum rate of
basic pay than the employee's former band is equivalent to a reduction
in grade for the purpose of chapters 43 and 75 of title 5, United
States Code.
3. Conversion to the General Schedule. Agencies must use the
procedures in Appendix C of these criteria for determining an
employee's GS equivalent grade and pay rate upon conversion from a
broadbanding system to the General Schedule.
G. Conform Related Provisions of Law and Regulations to Broadbanding
Systems
1. For provisions of chapter 51 that apply to the determination of
General Schedule grades, other than sections 5104 and 5105, the term
``grade'' is deemed to mean ``band within a career path.
2. The provisions in these criteria related to grade and pay
retention are based on the current grade and pay retention authority in
subchapter VI of title 5, United States Code, and 5 CFR part 536. When
applying the grade and pay retention provisions, users must substitute
``band'' for ``grade''. Under 5 U.S.C. 9509(c), the Secretary of the
Treasury may provide for variations from the grade and pay retention
authority for employees who are covered by broadbanding systems with
prior approval of the Director of OPM and in accordance with a plan for
implementing such variations.
3. In applying the severance pay provisions in 5 CFR part 550,
subpart G, to employees covered by IRS broadbanding systems, the
beginning of the first sentence in paragraph (c)(4) of the definition
of ``reasonable offer'' at Sec. 550.703 is deemed to read as follows:
(4) Not lower than two grade or pay levels (or one band level,
in the case of a broadbanding system under which the next lower band
comprises two or more grades) below the employee's current grade,
pay, or band level. * * *
Appendix A--Staffing Supplements
Internal Revenue Service (IRS) broadbanding systems may use
staffing supplements instead of the special salary rate authority in
5 U.S.C. 5305 under the following terms and conditions:
A. If an employee is assigned to an occupational series and
geographic area covered by a special salary rate under 5 U.S.C. 5305
and is in a band where the maximum adjusted rate for the banded GS
grades is a special rate that exceeds the maximum GS locality rate
under 5 U.S.C. 5304 (or similar provision of law) for the banded
grades, the employee is eligible for a staffing supplement.
B. Conversion. Upon conversion, the employee's broadbanding rate
of basic pay is established by dividing the employee's old GS
adjusted rate (the higher of the special rate or locality rate) by
the staffing factor. The staffing factor is determined by dividing
the maximum special rate for the banded grades by the GS unadjusted
rate corresponding to that special rate (step 10 of the GS rate for
the same grade as the special rate). The employee's staffing
supplement is derived by multiplying the employee's broadbanding
rate of basic pay by the staffing factor minus one. The employee's
final staffing supplement-adjusted rate equals the employee's
broadbanding rate of basic pay plus the staffing supplement. This
amount will equal the employee's former GS adjusted rate of pay.
Since the employee's total pay immediately after conversion into the
broadbanding system will be the same as immediately before
conversion, adverse action and pay retention provisions do not
apply.
C. Formulas. The conversion rules in paragraph B are expressed
by the following formulas:
1. Staffing Factor = Maximum special rate for banded grades
Unadjusted GS rate corresponding to that special rate
2. Broadbanding Basic Rate = Old GS adjusted rate (special or
locality rate) Staffing Factor
3. Staffing Supplement = Broadbanding Basic Rate x (Staffing
Factor -1)
4. Salary at conversion = Broadbanding Basic Rate + Staffing
Supplement (sum will equal old GS adjusted rate)
D. If an employee is in a band where the maximum GS adjusted
rate for the banded grades is a locality rate, the broadbanding
basic rate upon conversion into a broadbanding system is derived by
dividing the employee's former GS adjusted rate (the higher of the
locality rate or special rate) by the applicable locality pay factor
(e.g., 1.0787 in the Washington-Baltimore locality pay area in
1999). The employee's broadbanding locality-adjusted rate will equal
the employee's former GS adjusted rate. Adverse action and pay
retention provisions do not apply because there is no change in
total salary.
E. The staffing supplement is added to the employee's
broadbanding basic rate much like locality adjustments are added to
basic pay. Any General Schedule or special rate schedule adjustment
will require recomputation of the staffing supplement. Employees
receiving a staffing supplement remain entitled to an underlying
locality rate, which may, over time, supersede the need for a
staffing supplement. If OPM discontinues or decreases a special rate
schedule on which staffing supplements are based, pay retention
rules will be applied, as appropriate. Upon geographic movement, an
employee who receives a staffing supplement will have the supplement
removed or recomputed to reflect any applicable special rates in the
new location, consistent with paragraph C. Any resulting reduction
in pay is not an adverse action or a basis for pay retention.
F. The employee's broadbanding basic rate adjusted by the
staffing supplement is basic pay for the same purposes as a locality
rate under 5 CFR 531.606(b)--i.e., for retirement, life insurance,
premium pay, and severance pay purposes, and for advances in pay.
The staffing supplement is also basic pay under 5 U.S.C. 5363 and
subchapter II of chapter 75 for the limited purpose of determining
whether a reduction in basic pay occurs at the point of an
employee's conversion into a broadbanding system. The staffing
supplement will also be used to compute worker's compensation
payments and lump-sum payments for accrued and accumulated annual
leave.
G. The Office of Personnel Management may approve staffing
supplements for categories of employees within an IRS broadbanding
system who are not in approved special rate categories for General
Schedule employees, consistent with the provisions in 5 U.S.C. 5305
(a) and (b).
Appendix B--Conversion Into Broadbanding Systems
Internal Revenue Service (IRS) broadbanding systems must include
policies for determining the career path, band, and pay rate for
employees upon conversion into a broadbanding system under the
following terms and conditions:
A. Employees may not suffer a reduction in total pay upon
initial conversion to a broadbanding system.
B. If conversion into a broadbanding system is accompanied by a
simultaneous geographic move, the employee's General Schedule pay
entitlements in the new geographic area must be determined before
converting the employee into the broadbanding system.
C. IRS broadbanding systems may include policies for making
prorated within-grade increase or career-ladder promotion payments
to employees as an adjustment in basic pay or a lump-sum payment
upon conversion from the General Schedule to a broadbanding system
under the following conditions:
1. The amount of any within-grade increase or career-ladder
promotion payment may not be more than the prorated value of the
employee's within-grade increase or career-ladder promotion at the
time of conversion, based on the number of weeks of creditable
service the employee has performed as of the date of initial
conversion into the broadbanding system. There is no restriction on
when such payments may be made.
2. A prorated within-grade increase or career-ladder promotion
payment may be made only to an employee whose performance meets or
exceeds retention standards at the time of conversion into a
broadbanding system.
3. A within-grade increase payment may not be made to an
employee receiving the maximum rate of pay for his or her grade (or
band, if made after conversion into a broadbanding system) or a
retained rate.
4. For employees receiving special rates before conversion into
an IRS broadbanding
[[Page 38490]]
system, the pay conversion described in paragraph D must be applied
before making any prorated within-grade increase or career-ladder
promotion payment.
D. Special salary rate employees. If an IRS broadbanding system
uses staffing supplements instead of special rates under 5 U.S.C.
5305, special rate employees must be converted into the system
consistent with the provisions in Appendix A. If an IRS broadbanding
system eliminates special salary rates, a new locality-adjusted rate
of pay must be derived for each employee, as follows:
1. Divide the employee's adjusted rate of basic pay (the higher
of the special rate or locality rate or similar adjusted rate) by
the locality pay factor for the area (e.g., 1.0787 for the
Washington-Baltimore locality pay area in 1999) to determine the new
broadbanding rate of basic pay. If the employee's broadbanding rate
of basic pay exceeds the maximum rate of basic pay for the
employee's band, the employee must be placed on pay retention.
2. Add the full locality adjustment to the employee's
broadbanding rate of basic pay, including any retained rate. The
locality adjustment is basic pay under 5 U.S.C. 5363 and subchapter
II of chapter 75 for the limited purpose of determining whether a
reduction in basic pay occurs at the point of an employee's
conversion into a broadbanding system.
E. Employees on pay retention. Upon conversion, employees on pay
retention must be placed in the band commensurate with the grade of
their position. If possible, an employee's rate of basic pay will be
placed within the assigned band. If not possible (because the
employee's retained rate is higher than the maximum rate of basic
pay of the band), the employee will be placed on pay retention.
F. Employees on grade retention. Upon conversion, employees on
grade retention must be placed in the band that encompasses their
retained grade until the original 2-year grade retention period
expires. When the 2-year period expires, employees must be moved to
the band that encompasses the grade of their position. If the rate
of basic pay exceeds the maximum rate of the new band, the employee
is entitled to pay retention.
Appendix C--Procedures for Converting Employees Back to the General
Schedule Pay System
When an employee covered by a broadbanding system moves to a
General Schedule (GS) position, the following procedures must be
used to convert the employee's band and pay rate to a GS equivalent
grade and rate of pay. The converted GS-equivalent grade and rate of
pay must be determined before movement or conversion out of the
broadbanding system and any accompanying geographic movement,
promotion, or other simultaneous action. For lateral reassignments
and lateral transfers, the converted GS grade and rate of pay
becomes the employee's actual GS grade and rate of pay, unless the
employee is immediately affected by a simultaneous geographic
movement or another pay action. For non-lateral transfers,
promotions, and other actions, the converted GS grade and rate of
pay are deemed to be the employee's grade and rate of pay at the
time of movement out of the broadbanding system and must be used in
applying any GS pay administration rules applicable in connection
with the employee's movement out of the broadbanding system (e.g.,
rules for promotions, highest previous rate, and pay retention).
A. GS grade level determination--Upon conversion of an employee
out of a broadbanding system to the GS pay system, the employee's
GS-equivalent grade level must be determined in accordance with the
following rules:
1. An employee in a band encompassing a single GS grade must be
converted to that grade.
2. For an employee in a band encompassing more than one GS
grade, the employee's adjusted rate of pay under the broadbanding
system (including any locality adjustment (or similar geographic
adjustment) or staffing supplement, as applicable) must be compared
with the rates of pay in the highest applicable GS rate range for
each grade encompassed by the band. (For this purpose, a ``GS rate
range'' includes a rate range in (1) The GS basic pay schedule, (2)
the locality pay schedule (including any special geographic-adjusted
schedule for law enforcement officers (LEOs)) for the locality pay
area in which the position is located, or (3) the appropriate
special rate schedule for the employee's occupational series and
geographic location, as applicable). If the employee's occupational
series is a two-grade interval series, consider only odd-numbered
grades between GS-5 and GS-11.
3. If the employee's adjusted rate of pay under the broadbanding
system fits into an area of the rate range for a GS grade in the
band that does not overlap with the rate range of the next higher or
lower grade in the same band, the employee is converted to that GS
grade.
4. If the employee's adjusted rate of pay fits into an area of a
rate range for a GS grade in the band that overlaps with the rate
range of the next higher or lower grade in the same band, compare
the employee's adjusted rate of pay with the dollar midpoint of the
overlap area. If the employee's adjusted rate of pay is lower than
the dollar midpoint of the overlap area, convert the employee to the
lower grade. If the employee's rate of pay is equal to or higher
than the dollar midpoint of the overlap area, convert the employee
to the higher grade.
5. Exception: An employee may not be converted to a lower grade
than the grade held by the employee immediately preceding
conversion, lateral reassignment, or lateral transfer into the
broadbanding system, unless since that time the employee has
undergone a reduction in band.
B. GS pay rate determination--An employee's pay within the
converted GS grade must be set by converting the employee's adjusted
rate of pay under the broadbanding system to a GS-equivalent rate of
pay in accordance with the following rules:
1. The employee's adjusted rate of basic pay under the
broadbanding system (including any locality adjustment (or similar
geographic adjustment) or staffing supplement, as applicable) must
be converted to a GS adjusted rate on the highest applicable rate
range for the converted GS grade. (For this purpose, a ``GS rate
range'' includes a rate range in (1) the GS basic pay schedule, (2)
an applicable locality pay schedule (including any special
geographic-adjusted schedule for LEOs), or (3) an applicable special
rate schedule.)
2. If the highest applicable GS rate range is under a locality
pay schedule, the employee's adjusted rate of pay under the
broadbanding system must be converted to a GS locality rate of pay.
If this rate falls between two steps of the locality pay schedule,
the rate must be set at the higher step. The converted GS unadjusted
rate of basic pay is the rate corresponding to the converted GS
locality rate of pay. (If such an employee is also covered by a
special rate schedule as a GS employee, the converted special rate
must be determined based on the GS step position.)
3. If the highest applicable GS rate range is a special rate
range, the employee's adjusted rate of pay under the broadbanding
system must be converted to a special rate. If this rate falls
between two steps of the special rate schedule, the rate must be set
at the higher step. The converted GS unadjusted rate of basic pay is
the rate corresponding to the converted special rate.
C. Apply the following procedures to determine the converted GS-
equivalent grade and pay rate for employees retaining a band before
conversion or for employees entitled to a retained rate exceeding
the maximum rate of the highest applicable rate range. The
employee's GS-equivalent grade and rate of pay derived using the
procedures below must be used in applying any GS pay administration
rules applicable in connection with the employee's movement out of
the broadbanding system.
1. If an employee is retaining a band, apply the procedures in
A1-A5 and B1-B3, preceding, using the grades encompassed by the
employee's retained band to determine the employee's GS-equivalent
retained grade and pay rate. The time in a retained band counts
toward the 2-year limit on grade retention in 5 U.S.C. 5382.
2. If the employee's rate of pay under the broadbanding system
is a retained rate, the employee's GS-equivalent grade is the
highest grade encompassed in his or her band.
------------------------------------------------------------------------
If the employee's adjusted retained
rate: Then:
------------------------------------------------------------------------
(i) Is less than the maximum rate of Apply the procedures in B1-B3
the highest applicable rate range. to determine the employee's GS-
equivalent pay rate.
[[Page 38491]]
(ii) Exceeds the maximum rate of the Convert the employee's
highest applicable rate range and the unadjusted retained rate to a
employee is not in a special rate GS-equivalent retained rate.
category.
(iii) Exceeds the maximum rate of the Convert the employee's adjusted
highest applicable rate range and the retained rate to a GS-
employee is in a special rate category. equivalent retained rate.
------------------------------------------------------------------------
D. Within-grade increase ``equivalent increase''
determinations--Service under a broadbanding system is creditable
for within-grade increase purposes upon conversion to the GS pay
system. Basic pay increases (excluding general structural increases)
under a broadbanding system are ``equivalent increases'' for the
purpose of determining the commencement of a within-grade increase
waiting period under 5 CFR 531.405(b). A performance-based increase
in basic pay of any amount (including a zero increase) is considered
an ``equivalent increase'' for this purpose.
[FR Doc. 99-18191 Filed 7-15-99; 8:45 am]
BILLING CODE 6325-01-P
