FEDERAL SALARY REFORM ACT OF 1962

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R003100200018-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 123
• Document Creation Date: December 15, 2016
• Document Release Date: March 17, 2003
• Sequence Number: 18
• Publication Date: May 1, 1962
• Content Type: MF

P i9 '_5,~ .,-f /
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I otedd by
MEMORANDUM FOR: Director of Central lntelliaence
SUBJECT: Federal Salary Reform Act of 1962
1. This memorandum suggests action on the part of the
Director of Central Intelligence. Such requested action is
contained in paragraph 6.
2. Attached is a proposed letter for your signature to
the Chairman of the House post Cffice and Civil Service CorrR-
mittee commenting on the Federal Salary Zeforin Act of 1962,
H. R. 10480, which is the President's proposal for reform of
the Federal statutory pay systems. This letter supports the
legislation and urges its enactment.
3. As the letter states, while the Agency is exempt by
statute from the Classification Act of 1949, as a matter of polity
the Agency has utilized the general schedules, i. e. , the pay grade
classifications of the Classification Act. The House Committee is
well aware of the Agency policy in this respect. Therefore, in
fact, the Agency does have a vital interest in any general legislation
affecting salary systems in the Federal Government.
4. As to the proposed legislation itself, it should be noted
that this is an Administration- sponsored bill and proposes fundamental
overhaul of the major salary systems of the Federal Government
including the Classification Act, the Foreign -Service Act, the Postal
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Field Service. and the Department of Medicine and Surgery in the
Veterans Administration. Appropriate grades within each of these
systems have been established as being equatable to specific: grades
in other systems so that there is a degree of comparability between
the various systems. In addition, the bill attempts to establish a
basis of comparability for Federal salaries and industry salaries
although admittedly falling short in the topmost grades.
5. This proposal was the result of a massive study and
coordination effort involving State Department, Post Office. Veterans
Administration, Civil Service Commission, Bureau of the Budget.
White House, Bureau of Labor Statistics, and others. The Bureau
of Labor Statistics alone was authorized $600, 000 by the Congress
for its studies on this subject. Because of the far-reaching effects
of the proposed legislation, obviously it is complex. We have at-
tached for information the bill itself, H. R. 10480 (TAB A). Statement
of Purpose and Justification and Section-by-Section Analysis (TAB B).
and Summary Analysis of the President's Proposal for Reform of
Federal Statutory Salary Systems (TAB C). This latter publication
prepared by the Civil Service Commission is the most succinct
statement of the purposes of the proposed legislation.
6. I believe the Agency not only has a legitimate interest in
this legislation but. further. it should express its endorsement of
legislation to the House Committee. I have been advised at the
staff level that the Chairman would welcome our support of this
legislation. On the Senate side apparently their thinking has not
sufficiently crystallized that an expression of Agency interest would
be useful at this point. Further, the Bureau of the Budget also
advised, on an informal basis, that they would have no objection to
our endorsing the legislation. Therefore, it is recommended that
the attached letter be signed by you.
Atts - 4
TABS A, B, and C
Letter to Honorable Tom Murray
Distribution:
Orig - DCI w/ atts
1 - DDCI w/atts
Legislative Counsel
CONCURRENCE:
1 - ER w/att ltr only Director OT-Personnel
1 - DD/ S w/ atts MAY 1962
1 - D/ Personnel w/atts
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1 - Leg. C. w/o atts OGC/LHC:JSW:mks (27 Apr 62)
STAT
STAT
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MEMORANDUM FOR: THE DIRECTOR
Attached is a proposed letter for your
signature to C hatr" an Murray of the House
Post Office and Civil Service Committee
expressing approval of the objectives of the
President's proposal for reform of the Federal
statutory pay systems (H. R. 10480) and
supporting the proposed legislation on the
subject. The Bureau of the Budget has advised
informally that they approve of the Agency
taking the initiative on this and would like to
see a copy of our letter prior to dispatch.
;34) it =W43 146:-k
Legislative Counsel
FORM NO.
AUG 54
.Vf
REPLACES FORM 10-101
WHICH MAY BE USED.
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87TH CONGRESS
2D SESSION
. R. 10480
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 28,1962
Mr. HURRAY introduced the following bill; which was referred to the Corn
inittee on Post Office and Civil Service
A BILL
To reform the major statutory salary systems of the Federal
Government; to establish appropriate relationships among
them; to adopt and apply the principle of Gove> ment-pri-
vate enterprise salary comparability; and for other purposes.
1 Be it enacted by the Senate and House of Representa-
2 tives o f the United States of America in Congress assembled,
3 rrirj E I-GENERAL POLICY
4 SHORT TITLE
5 S. 101. This Act may be cited as the "Federal Salary
6 Reform Act of 1962".
7 DECLARATION OF POLICY
8 SEC. 102. The Congress hereby declares that, whereas
9 the functions of a Federal salary system are to fix salary
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1 rates for the services rendered by federal employees so as
2 to make possible the ernploynient of persons well qualified
3 to conduct the Governnient's programs and to control ex-
4 penditures of public funds for personal services with equity
5 to the employee and to the taxpayer, and whereas fulfillment
6 of these functions is essential to the development and main-
7 tenaaice of maximum proficiency in the civilian services of
8 Government, then, accordingly, Federal salary fixing shall
9 be based upon the principles that-
10 (a) There shall be equal pay for substantially equal
11 work, and pay distinctions shall be maintained in keep-
12 ing with work and performance distinctions; and
13 (b) Federal salary rates shall be comparable with
14 private enterprise salary rates for the same levels of
15 work.
16 Salary levels for the several Federal statutory salary systems
17 shall be interrelated, and salary levels shall he set and hence-
18 forth adjusted in accordance with the above principles.
19 IMPLEMENTATION OF POLICY
20 SEC. 103. In order to give effect to the policy stated in
21 section 102, the President: (1) shall direct such agency
22 or agencies, as lie deems appropriate, to prepare and sub-
23 mit to him annually a report which compares the rates of
24 salary fixed by statute for Federal employees with the
25 rates of salary paid for the same levels of work in private
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1 enterprise as determined on the basis of appropriate annual
2 surveys conducted by the Bureau of Labor Statistics, and,
3 after seeking the views of such employee organizations as
4 he deems appropriate and in such manner as he may pro-
5 vide, (2) shall report annually to the Congress (a) this
t~ comparison of Federal and private enterprise salary rates
7 and (b) such recomnm-endations for revision of statutory
8 salary schedules, salary structures, and compensation policy,
9 as he deems advisable.
10 SEC. 104. (a) Whenever the President or such agency
11 or agencies as he may designate shall find that the salary
12 rates in private enterprise for one or more occupations in
13 one or more areas or locations are so substantially above the
14 salary rates of statutory pay schedules as to handicap signifi-
15 cantle the Government's recruitment or retention of well-
16 qualified 1 persons in positions compensated under (1) the
17 Classification Act of 1949, as amended (5 U.S.C. 1113 (b) )
18 (2) the Postal Field Service Compensation Act of 1955,
19 as amended (39 U.S.C. 3542-3544), (3) the pay scales for
20 physicians, dentists, and nurses in the Department of Medi-
21 tine and Surgery of the Veterans' Administration (38
22 U.S.G. 4107), or (4) the Foreign Service Act of 1946, as
23 amended (22 U.S.C. 866, 867, and 870), the President or
24 such agency or agencies as lie may designate may establish
25 for ~ucl- areas or locations higher minimum rates of basic
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4
salary for one or more grades or levels, occupational groups,
series, classes, or subdivisions thereof, and may make cor-
responding increases in all step rates of the salary range for
each such grade or level: Provided, That in no case shall
any minimum salary rate so established exceed the highest
salary rate prescribed by law for the grade or level.
(b) Rates of basic compensation established under sub-
section (a) may be revised from time to time by the Presi-
dent or by such agency or agencies as he may designate.
Such actions or revisions shall have the force and effect of
law.
(c) Any increase in rate of basic compensation estab-
lished under this section shall not be regarded as an "equiva-
lent increase" in compensation within the meaning of section
701 (a) of the Classification Act of 1949, as amended, and
section 3552 of title 39 of the United States Code.
Si,,c. 105. The functions, duties, and regulations of the
departments of the Civil Service Commission with respect
to this title, the Classification Act of 1949, as amended,
the Postal Field Service Compensation Act of 1955, as
amended, the Foreign Service Act of 1946, as amended, and
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1 chapter 73 of title 38 of the United States Code, shall be
2 subject to such policies and rules as the President may issue.
3 Among other things, the President's policies and rules may
4 provide for-
5 (1) preparing and reporting to him the annual com-
6 parison of Federal salary rates with private enterprise
7 rates,
8 (2) obtaining and reporting to him the views of
9 employee organizations on such annual comparison, and
10 on other salary matters,
11 (3) reviewing and reporting to him on the adequacy
12 of the Federal statutory salary structures for the Fed-
13 eral programs to which they apply,
14 (4) reviewing the relationship of Federal statutory
15 salary rates and private enterprise salary rates in specific
16 occupations and local areas, and
17 (5) providing step-increases in recognition of extra
18 competence, providing for appointment at salary rates
19 above the minimum, and providing for properly relating
20 supervisory salary rates paid under one system to those
21 of subordinates paid under another system.
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1 TITLE 1I-PAS' SYSTEM OF THE CLASSIFICATION
2 ACT OF 1949
3 SHORT TITLE
4 Sic. 201. This title may be cited as the "Classification
5 Act Amendments of 1962".
6 BASIC COMPENSATION SCHEDULES
7 SEc. 202. (a) That part of the first sentence of section
8 602 of the Classification Act of 1949, as amended (5 U.S.C.
9 1112), immediately before the colon, is amended by strik-
10 ing out "eighteen" and inserting "twenty" to read as fol-
11 lows:
12 "The General Schedule shall be divided into twenty
13 grades of difficulty and responsibility of work, as fol-
14 lows:".
15 (b) Such section 602 is further amended by adding, fol-
16 lowing the definition of grade GS-18, two new grades,
17 GS-19 and GS-20, as follows:
18 "Grade GS-19 includes all classes of positions
19 placed in such grade by the President as provided in
20 section 505 (c) of this Act.
21 "Grade GS-20 includes all classes of positions placed
22 in such grade by the President as provided in section
23 505 (b) of this Act.".
24 SEC. 203. (a), Section 003 (b) of the Classification Act
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1 of 1949, as amended (74 Stat. 298; 5 U.S.C. 1113 (b) ) , is
2 amended to read as follows:
3 " (b) The following compensation schedule for the Gen-
4 oral Schedule shall become effective on the first day of the
5 first pay period which begins on or after January 1, 1963:
GS-1 --------------------
$3, 225
$3,330
$3,435
$3,540
$3,645
$3, 750
$3,855
$3,960
$4,065
$4,170
GS-2--------------------
3,540
3,645
3,750
3,855
3,960
4,065
4, 170
4, 275
4,380
4,485
Gs -3------------------
3,800
3,905
4, 010
4, 115
4,220
4, 330
4, 455
4, 580
4, 705
4,830
US-4--------------------
4,110
4,250
4, 390
4, 530
4,670
4, 810
4,950
5,090
5,230
5,370
GS-5 --------------------
4, 565
4,715
4,865
5,015
5, 165
5, 315
5,465
5,615
5, 765
5,915
U S-6-------------------
5,035
5,205
5,375
5, 545
5,715
5,885
6.055
6,225
6,395
6,565
U S-7------------------
5, 540
5,725
5, 910
6,095
6,280
6, 465
6,650
6,835
7, 020
7,205
(1S-8-------------------
6,090
6,295
G, 500
6, 705
6, 910
7, 115
7,320
7,525
7, 730
7,935
US-9- ------------------
6,675
6,900
7,125
7, 350
7,576
7,800
8,025
8,250
8, 475
8,700
CIS-10 -------------------
7,290
7,535
7,780
8,025
8,270
8,515
8,760
9,005
9,250
9, 495
a s-11-------------------
7,960
8,225
8, 490
8,755
9,020
9,295
9, 550
9,815
10,080
10,345
(IS-12 -------------------
9,380
9,695
10,010
10,325
10,640
10,955
11, 270
11, 585
11,900
12,215
GS-13 -------------------
10,965
11,330
11.695
12,060
12,425
12, 790
13, 155
13, 520
13,885
14, 250
(IS-14-- ----------------
12,665
13,090
13, 515
13,940
14, 365
14, 790
15, 215
15, 640
16,065
16,490
GS-15 -------------------
14,495
14, 975
15, 455
15, 935
16, 415
16,895
17,375
17, 855
18,335
18,815
G S-16-------------------
16,400
16,945
17,490
18,035
18, 580
19, 125
19, 670
US-17---------------
18, 350
18, 960
19, 570
20,180
U S-18-------------------
20,315
Gs- 19 -------------------
22, 245
G S-20-------------------
23,000
6 (b) The rates of basic compensation of officers and
7 employees to whom subsection (a) of this section applies
8 shall, subject to the provisions of paragraph (8) of this sub-
9 section, be initially adjusted ,is follows :
10 (1) If the officer or employee is receiving basic compen-
11 cation immediately prior to the effective date of subsection
12 (a.) of this section at the first, second, third, fourth, fifth,
13 sixth, or seventh scheduled rate, or at the first, second,
14 or third longevity rate of a grade below grade 11
15 of the General Schedule of the Classification Act of 1949,
1G as amended, he shall receive a rate of basic compensation at
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1 the corresponding first, second, third, fourth, fifth, sixth,
2 seventh, eighth, ninth, or tenth rate of the appropriate grade
3 in effect on and after such date.
4 (2) If the officer or employee is receiving basic com-
5 pensation immediately prior to the effective date of sub-
6 section (a) of this section at the first, second, third, fourth,
7 fifth, or sixth scheduled rate, or at the first, second, or
8 third longevity rate of grade 11, 12, 13, or 14 of the
9 General Schedule of the Classification Act of 1949, as
10 amended, he shall receive a rate of basic compensation at
11 the corresponding first, second, third, fourth, fifth, sixth,
12 seventh, eighth, or ninth rate of the appropriate grade in
13 effect on and after such date.
14 (3) If the officer or employee is receiving basic compen-
15 sation immediately prior to the effective date of subsection
16 (a) of this section at the first, second, third, fourth, or fifth
17 scheduled rate, or at the first, second, or third longevity rate
18 of grade 15 of the General Schedule of the Classification
19 Act of 1949, as amended, lie shall receive a rate of basic
20 compensation at the corresponding first, second, third, fourth,
21 fifth, sixth, seventh, or eighth rate of such grade in effect
22 on, and after such date.
23 (4) If the officer or employee is receiving basic compen-
24 satiorr inrniediately prior to the effective date of subsection
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1 (a) of this section at the first., second, third, fourth, or fifth
2 rate of grade 16 of the General Schedule of the Classification
3 Act of 1949, as amended, he shall receive a rate of basic
4 compensation at the corresponding first, second, third, fourth,
5 or fifth rate of such grade in effect on and after such date.
6 (5) If the officer or employee is receiving basic com-
7 pensation immediately prior to the effective date of subsection
8 (a) of this section at the first, second, third, fourth, or fifth
9 rate of grade 17 of the General Schedule of the Classification
10 Act of 1949, as amended, he shall receive a rate of basic
11 compensation at the corresponding first, second, third, fourth,
12 or fifth rate of such grade in effect on and after such date.
13 (6) If the officer or employee is receiving basic compen-
14 cation immediately prior to the effective date of subsection
15 (a) of this section at the rate of grade 18 of the General
16 Schedule of the Classification Act of 1940, as amended, he
shall receive a rate of basic compensation at the' correspond
18 ing rate of such grade in effect on and after such date.
19 (7) If the officer or employee is receiving basic compen-
20 sation immediately prior to the effective date of subsection
21 (a.) of this section at a rate between two scheduled or two
22 longevity rates, or between a scheduled and a longevity rate,
23 of a grade of the General Schedule, he shall receive 'a rate
H.R.10480 2
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1 of basic compensation at the higher of the two corresponding
rates, as specified in paragraphs (1) , (2), (3), or (4) of
this subsection, in effect on and after such date.
(8) If the officer or employee is receiving basic compen-
sation immediately prior to the effective date of subsection
(a) of this section at a rate in excess of the maximum
7 longevity rate for his grade, or in excess of the maximum
8 scheduled rate for his grade if there is no longevity rate for
9 his grade, he shall receive (A) the rate of the new schedule,
10 in effect on and after such date, prescribed by paragraphs
11 (1) through (5) of this subsection for employees at the
12 maximum longevity rate or at the maximum scheduled rate,
13 as the case may be, for his grade, or (B) if such rate is
14 less than his existing rate, (i) the lowest rate of the new
15 schedule for his grade which equals or exceeds his existing
16 rate or (ii) if there is no such rate, his existing rate.
17 (9) Service of officers and employees performed imme-
18 diately preceding the effective date of subsection (a) of this
19 section in the grade of the General Schedule in which their
20 respective positions were placed on such date, shall be
21 counted toward not to exceed one step increase under the
22 time in grade provisions of subsection (a) of section 701 of
23 the Classification Act of 1949 as amended by this Act.
24 (c) Effective on the first day of the first pay period
25 which begins on or after January 1, 1964, section 603 (b) of
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1 the Classification Act of 1.949, as amended (74 Stat. 298
2 as amended; 5 U.S.C. -) , is amended to read as follows:
3 " (b) The compensation schedule for the General Sched-
4 ule shall be as follows :
1
2
3
4
5
6
7
8
9
10
GS-1---------------- ____
$3,265
$3,370
$3,475
$3,580
$3,685
$3,790
$3,895
$4,000
$4,105
$4,210
GS-2--------------------
3,580
3,685
3,790
3,895
4,000
4,105
4,210
4,315
4,420
4,525
GS _3 -_ _ _ _ -_ _ _ _
3,840
3,945
4,050
4,155
4,260
4,375
4,500
4,625
4,750
4,875
GS-4 --------------------
4,175
4,315
4,455
4,595
4,735
4,875
5,015
5,155
5,295
5,435
GS-5--------------------
4,645
4,800
4,955
5,110
5,265
5,420
5,575
5,730
5,885
6,040
GS-&--------------------
5,165
5,335
5, 505
5,675
5,845
6,015
6,185
6,355
6,525
6,695
GS-7 --------------------
5,695
5,885
6,075
6,265
6,455
6,645
6,835
7,025
7,215
7,405
GS-8 --------------------
6,285
6,495
6,705
6,915
7,125
7,335
7,545
7,755
7,965
8,175
G S-9---------------- _
6, 925
7,155
7,385
7,615
7,845
8,075
8,305
8,535
8,765
9,995
GS-10 -------------------
7,585
7,840
8,095
8,350
8,605
8,860
9,115
9,370
9,625
9,880
GS-11 -------------------
8,325
8,600
8,875
9,150
9,425
9,700
9,975
10,250
10,525
10,800
GS-12--------------- _-_
9,910
10,240
10,570
10,900
11,230
11,560
11,890
12,220
12,550
12,880
GS-13___----------------
11,670
12,060
12,450
12,840
13,230
13,620
14,010
14,400
14,790
15,180
GS-14__
_---------------
13,615
14,070
14,525
14,980
15,435
15,890
16,345
16,800
17,255
17,710
_
GS-15
--------
15,725
16,250
16,775
17,300
17,825
18,350
18,875
19,400
19,925
20,450
-----------
GS-16 -------------------
17,970
18,570
19,170
19,770
20,370
20,970
21,570
________
________
_______
------------_----
20,325
21,000
21,675
22,350
--------
--------
--------
--------
--------
-------
OS-18-------------------
- 22,740
--------
---------
--------
--------
--------
-
--------
_
--------
_
--------
_
-------
-
GS-19-------------------
GS-19
25. 150
-
-
-------
--------
-
-------
-
-
--------
-
-
--------
-
--------
-
-
--------
-
-
-------
-
-
-------
GS-20 -
( 26,000
--------
---------
--------
--------
-------
--------
--------
--------
-------
5 (d) The rates of basic compensation of officers and em-
6 ployees to whom subsection (c) of this section applies shall
7 be initially adjusted as follows:
8 (1) If the officer or employee is receiving basic compen-
9 sation immediately prior to the effective date of subsection
10 (c) of this section at one of the rates of a grade in the Gen-
11 eral Schedule of the Classification Act of 1949, as amended,
12 he shall receive a rate of basic compensation at the corre-
13 sponding rate in effect on and after such date.
14 (2) If the officer or employee is receiving basic com-
15 pensation immediately prior to the effective date of subsec-
16 tion (c) of this section at a, rate between two rates of a grade
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1 in the General Schedule of the Classification Act of 1949, as
2 amended, he shall receive a rate of basic compensation at the
3 higher of the two corresponding rates in effect on and after
4 such date.
5 (3) If the officer or employee is receiving basic com-
6 pensation immediately prior to the effective date of subsection
7 (c) of this section at a rate in excess of the maximum rate
8 for his grade, as in effect on and after such effective date, lie
9 shall receive (A) the rate of the new schedule prescribed
10 for employees at the maximum rate for his grade, or (B)
11 his existing rate of basic compensation if such existing rate
12 is higher.
13 (e) Effective on the first day of the first pay period
14 which begins on or after January 1, 1965, section 603 (b)
15 of the Classification Act of 1949, as amended (74 Stat. 298
16 as amended; 5 U.S.C. -) , is amended to read as follows :
17 " (b) The compensation schedule for the General
18 Schedule shall be as follows:
GS-1--------------------
$3,305
$3, 410
$3,515
$3,620
$3,725
$3, 830
$3,935
$4
040
$4
145
$4
250
GS-2
3,620
3,725
3, 830
3,935
4, 145
4
250
,
4
355
,
4
460
,
4
565
a S-3-----------------
3,880
3,985
4,090
4, 195
4, 300
4,405
,
4
525
,
,
4
775
,
4
900
GS4
4, 215
4, 355
4, 495
4
, 635
4, 775
4
915
,
055
5
5 50
,
5
335
,
5
475
4S-5
4,690
4, 850
5, 010
,
5 170
5, 330
,
5, 490
,
5, 650
5
810
,
5
970
,
6
130
OS-6-------------------
5,235
5, 410
5, 585
5, 760
51935
6,110
6,285
,
6
460
,
6
635
,
6
810
GS-7--------------------
5,795
5, 990
6,185
6, 380
6, 575
6,770
6,965
,
7
160
,
7
355
,
7
550
GS-8-------------------
6,420
6,635
6, 850
7,065
7, 280
7, 495
7,710
,
7
925
,
8
140
,
8
355
OS-9------------------
7,095
7,330
7, 565
7,800
8,035
8, 270
8,505
,
8
740
,
8
975
,
9
210
QS-10-------------------
7,800
8,060
8,320
8,580
8,840
9,100
9,360
,
9
620
,
9
880
,
10
140
aS-11-------------------
8,580
8,865
9,150
9,435
9,720
10,005
10
290
,
10
575
,
10
860
,
11
145
G S-12
-
10,270
10,615
10, 960
11,305
11, 650
11,995
,
12, 340
,
12
685
,
13
030
,
13
375
?S
13--------------
12, 190
12, 595
13,000
13,405
13, 810
14,215
14,620
,
15
025
,
15
430
,
15
835
OS-14------- ----------
14,310
14,795
15,260
15, 735
16, 210
16,685
17, 160
,
17
635
,
18
110
,
18
585
OS-15------ -----------
16,620
17,175
17,730
18,285
18,840
19,395
19
950
,
20
505
,
21
060
,
21
815
d5-16......
19, 125
19, 760
20,395
21, 030
21
665
22
300
,
22
935
,
,
,
GS-17
21, 755
22,480
23
205
23
930
,
,
,
OS-18
24,500
--------
,
,
GS-19
---------------
27,290
--------
G
S-20
28,000
--------
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13
(f) The rates of basic compensation of officers and em-
ployees to whom subsection (e) of this section applies shall
be initially adjusted as follows :
(1) If the officer or employee is receiving basic com-
pensation immediately prior to the effective date of subsec-
tion (e) of this section at one of the rates of a grade- in the
General Schedule of the Classification Act of 1949, as
8 amended, he shall receive a rate of basic compensation
23
at the corresponding rate in effect on and after such date.
(2) If the officer or employee is receiving basic compen-
sation immediately prior to the effective date of subsection
(e) of this section at a rate between two rates of a grade
in the General Schedule of the Classification Act of 1949, as
amended, he shall receive a rate of basic compensation at the
higher of the two corresponding rates in effect on and after
such date.
(3) If the officer or employee is receiving basic compen-
sation inuuediately prior to the effective date of subsection
(e) of this section at a rate in excess of the maximum rate
for his grade, as in effect on and after such effective date,
he shall receive (A) the rate of the new schedule prescribed
for employees at the maximum rate for his grade, or (B)'
his existing rate of basic compensation if such, existing rate
is higher.
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14
STEP-INCREASES
SEC. 204. Title VII of the Classification Act of 1949,
as amended (5 U.S.C. 11221-1125), relating to step-in-
creases under such Act, is amended to read as follows:
"TITLE VII-STEP-INCREASES
"SEC. 701. (a) Each officer or employee compensated
on a per annum basis, and occupying a permanent position
within the scope of the compensation schedules fixed by this
Act, who has not attained the maximum rate of compensa-
tion for the grade in which his position is placed, shall be
advanced in compensation successively to the next higher
rate within the grade at the beginning of the next pay period
following the completion of (1) each fifty-two calendar
weeks of service in salary rates 1, 2, and 3, or (2) each one
hundred and four calendar weeks of service in salary rates
4, 5, and 6, or (3) each one hundred and fifty-six calendar
weeks of service in salary rates 7, 8, and 9, subject to the
following conditions:
" (A) That no equivalent increase in compensation
from any cause was received during such period;
" (B) That his work is of an acceptable level of
competence; and
" (C) That the benefit of successive step-increases
shall be preserved, under regulations issued by the Com-
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1 mission, for officers and employees whose continuous
2 service is interrupted in the public interest by service
3 with the Armed Forces or by service in essential nori-
4 Government civilian employment during a period of
5 war or national emergency.
6 " (b) Any increase in compensation granted by law after
7 June 30, 1951, shall not he construed to be an equivalent in-
8 crease in compensation within the meaning of subsection (a)`.
9 "SEC. 702. (a) Within the limit of available appropri-
ations and in accordance with. regulations prescribed by the
Commission, the head of each department or agency is au=
t,horized to grant additional step-increases in recognition Qf
high quality performance above that ordinarily found in the'
14 type of position concerned. Step-increases under this section
15 shall be in addition to those under section 701 and shall not
16 be construed to be an equivalent increase in compensation
1.7 within the meaning of subsection (a) of section 701.
18 " (b) No officer or employee shall be eligible under this
19 section for more than one such additional step-increase within
20 any period of fifty-two weeks.
21 "SEC. 703. This title shall not apply to the compensation
22 of persons appointed by the President, by and with the advice
23 and consent of the Senate."
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1 GENERAL COMPENSATION RULES
.2 SEC. 205. Section 801 of the Classification Act of 1949,
3 as amended (5 U.S.C. 1131), relating to new appointments,
4 is amended to read as follows :
5 "SEC. 801. All new appointments shall be made at the
6 minimum rate of the appropriate grade, except that the head
7 of any department or agency may, in accordance with regu-
8 lations prescribed by the Commission, (a) appoint individ-
9 uals who have extra qualifications for the position concerned
10 at such higher rate or rates of a grade as the Commission
11 may authorize for this purpose, and (b) make new appoint-
12 ments at rates above the minimum rate of the appropriate
13 grade when the minimum rate would be less than the salary
14 received by a well qualified appointee immediately prior to
15 appointment, but no appointment under this subsection (b)
16 shall be made at a rate higher than the lowest rate of the
17 appropriate grade which equals or exceeds an appointee's
18 salary rate immediately prior to appointment.".
19 SEC. 206. (a) Subsection (b) of section 802 of the
20 Classification Act of 1949, as amended (5 U.S.C. 1132 (b) )
21 relating to the salary to be received by an officer or employee
22 who is promoted or transferred to a higher grade, is
23 amended to read as follows :
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1 ` (b) Any officer or employee who is promoted or trans-
2 ferred to a position in a higher grade shall receive basic
3 compensation at the lowest rate of such higher grade which
exceeds his existing rate of basic compensation by not less
than two step-increases of the grade from which lie is pro-
moted or transferred. If, in the case of any officer or em-
ployee so promoted or transferred who is receiving basic
compensation at a rate in excess of the maximum rate for his
grade under any provision of law, there is no rate in such
higher grade which is at least two step-increases above his
existing rate of basic compensation, lie shall receive (1) the
maximum rate of such higher grade, or (2) his existing rate
of basic compensation, if such existing rate is the higher."
(b) Section 802 of such Act is further amended by add-
ing at the end thereof a new subsection to read as follows :
" (d) The Commission may issue regulations governing
the retention of the rate of basic compensation of an em-
ployee who together with his position is brought under this
A et. If an employee entitled to receive a, retained rate
under regulations issued pursuant to this subsection is later
demoted to a position under this Act, his rate of basic com-
pensation shall be determined in accordance with section 507
H.R. 10480-3
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1 of this Act, except that service in the position which was
2 brought under the Act shall, for purposes of section 507, be
3 considered as service under this Act.".
4 SEC. 207. Section 803 of the Classification Act of 1949,
5 as amended (5 U.S.C. 1133), is amended to read as follows :
6 "SEC. 803. Any employee in a position under the Classi-
7 fication Act of 1949, as amended, who regularly has re-
8 sponsibility for supervision, including technical supervision,
9 over employees whose compensation is fixed and adjusted
10 from time to time by wage boards or similar administrative
11 authorities as nearly as is consistent with the public interest
12 in accordance with prevailing rates, may, in accordance with
13 regulations issued by the Commission, be paid a rate for his
14 grade which is above the highest rate of basic compensation
15 being paid to any such prevailing-rate employee regularly
16 supervised.".
17 SALARY RETENTION
18 SEC. 208. Section 507 of the Classification Act of 1949,
19 as amended (72 Stat. 830; 5 U.S.C. 1107), is amended-
20 (1) by striking out " (other than grade 16, 17,
21 or 18 of the General Schedule) " in paragraph (1) of
22 subsection (a) of such section; and
23 (2) by striking out " (B) in the same grade or
24 in the same and higher grades;" in paragraph (4) of
25 subsection (a) of such section; and by inserting in
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1 lieu thereof " (B) in any grade or grades higher than
2 the grade to which demoted;".
3 TOP GRADE POSITIONS UNDER CLASSIFICATION ACT OF 19 4 9
4 SEC. 209. Section 505 of the Classification Act of 1949,
5 as amended (5 U.S.C. 1105), relating to the authorization
6 and distribution of positions in grades 16, 17, and 18 of
7 the General Schedule of such Act, is amended to read as
8 follows :
9 "SEC. 505. (a) No positions shall be placed in grade
10 16, 17, or 18 of the General Schedule except by action of,
11 or after prior approval by, a majority of the Civil Service
12 Commissioners.
13 " (b) A position shall be placed in grade 20 of the
14 General Schedule only when the President finds, after re-
15 view of recommendations of the Commission, that it entails
16 responsibility for direction of a program or activity involv-
17 ing such significant implications for the national interest or
18 such magnitude of operations and impact on the public
19 welfare that it should be placed in the highest grade in
20 which positions can be placed under the Classification Act."
21 " (c) A position shall be placed in grade 19 of the Gen-
22 eral Schedule only when the President finds, after review of
23 the recommendations of the Commission, that its duties and
24 responsibilities are of such national significance that it should
25 be at a higher level than positions in grade 18 of the General
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1 Scliedule although it does not meet the requirements of grade
2 20 of the General Schedule.
3 " (d) (1) The Commission shall submit to the Con-
4 gress, not later than February 1 of each year, a report which
5 sets forth with respect to positions allocated to or placed in
6 grades 16, 17, and 18 of the General Schedule (including
7 such positions so allocated or placed on a temporary or
8 present incumbency basis)-
9 "(A) the total number of such positions allocated
10 to or placed in all of such grades during the immediately
11 preceding calendar year, the total number of such posi-
12 tions allocated to or placed in each of such grades during
13 such immediately preceding calendar year, and the total
14 number of such positions in existence during such im-
15 inediately preceding calendar year and the grades to or
16 in which such total number of positions in existence are
17 allocated or placed;
18 " (B) the name, rate of compensation, and de-
19 scription of the qualifications of each incumbent of each
20 such position, together with the position title and a
21 statement of the duties and responsibilities performed
22 by each such incumbent; and
23 " (C) such other information as may be required
24 by law or as the Commission may deem appropriate.
25 Nothing contained in this subsection shall require the resub-
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mission of any information required under subparagraph
(B) of this subsection which has been reported pursuant to
this subsection and which remains unchanged.
(2) In any instance in which the Commission may
find full public disclosure of any or all of the above-specified
items to be detrimental to the national security, the Com-
7 mission is authorized-
8 "(A) to omit in such annual report those items
9 with respect to which full public disclosure is found
10 to be detrimental to the national security;
11 " (B) to inform the Congress of such omission ; and
12 " (C) at the request of any congressional committee
13 to which such report is referred, to present all informa-
14 tion concerning such items."
15 CONFORMING CHANGES IN EXISTING LAW
16 SEC. 210. The following provisions of law are hereby
17 repealed:
18 (1) Section 104 of the Department of Commerce and
19 Related Agencies Appropriation Act, 1956 (69 Stat. 234;
20 5 U.S.C. 592 (d) ), authorizing grade 17 of the General
21 Schedule of the Classification Act of 1949 for the position
22 of Budget Officer of the Department of Commerce so long as
23 the position is held by the present incumbent.
24 (2) The second proviso of the paragraph under the
25 heading "Federal Prison System" apd under the subheading
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1 "Salaries and Expenses, Bureau of Prisons" in the Depart-
2 meet of Justice Appropriation Act, 1956 (69 Stat. 273;
3 5 U.S.C. 298a) , authorizing the Attorney General, without
4 regard to the Classification Act of 1949, to place three posi-
5 tions in grade 16 of the General Schedule established by such
6 Act.
7 (3) Section 206 of the Public Works Appropriation
8 Act, 1956 (69 Stat. 360; 5 U.S.C. 483-2), authorizing the
9 Secretary of the Interior to place the position of Director,
10 Division of Budget and Finance, in grade 17 of the General
11 Schedule established by the Classification Act of 1949 so
12 long as the position is held by the present incumbent.
13 (4) The second paragraph under the heading "Admin-
14 istrative Provisions" in title III of the Public Works Ap-
15 propriation Act, 1956 (69 Stat. 364; 10 U.S.C. 1335,
16 note) , authorizing the Chief of Engineers to place the posi-
17 tion of Chief of the Programs Branch, Office of the Assist-
18 ant Chief of Engineers for Civil Works, in grade 17 of the
19 General Schedule established by the Classification Act of
20 1949 so long as the position is held by the present
21 incumbent.
22 (5) The fourth sentence of section 10 (b) (4) of the
23 Railroad Retirement Act of 1937 (72 Stat. 1781; 45 U.S.C.
24 228j (b) (4) ), authorizing nine positions in grades 16, 17,
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1 and 18 of the General Schedule established by the Classifi-
2 cation Act of 1949.
3 (6) Section 14 (a) of the Federal Employees Health
4 Benefits Act of 1959 (73 Stat. 716; 5 U.S.C. 3013 (a) ) ,
5 authorizing the Chairman of the Civil Service Commission
6 to appoint in grade 18 of the General Schedule an officer
7 having functions and duties with respect to retirement, life
8 insurance, and health benefits programs.
9 (7) Section 24 (d) of the Area Redevelopment Act (75
10 Stat. 62; - U.S.C. -) , authorizing five positions in grades
11 16, 17, and 18 of the General Schedule established by the
12 Classification Act of 1949 for agencies performing functions
13 under that Act.
14 (8) The last sentence of the third paragraph in section
15 3 of title 35 of the United States Code, relating to the annual
16 salaries of certain officers and employees in the Patent Office,
17 which reads: "The Secretary of Commerce is authorized to
18 fix the per annum rate of basic compensation of each exam-
19 iner-in-chief in the Patent Office at not in excess of the
20 maximum scheduled rate provided for positions in grade 17
21 of the General Schedule of the Classification Act of 1949,
22 as amended.".
23 (9) The fourth sentence in the second paragraph of
24 section 7 of title 35 of the United States Code, relating to
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1 the annual salaries of designated examiners-in-chief in the
2 Patent Office, which reads: "The Secretary of Commerce is
3 authorized to fix the per annum rate of basic compensation
4 of each designated examiner-in-chief in the Patent Office at
5 not in excess of the maximum scheduled rate provided for
6 positions in grade 16 of the General Schedule of the Classifi-
7 cation Act of 1949, as amended.".
8 (10) The fourth sentence of section 3 (a) of the Fish
9 and Wildlife Act of 1956 (70 Stat. 1120; 16 U.S.C.
10 742b (a) ), relating to the annual salary of the Commissioner
11 of Fish and Wildlife in the Department of the Interior, which
12 reads : "He shall receive compensation at the same rate as
13 that provided for grade GS-18.".
14 (11) The proviso contained in the first sentence of see-
15 tion 5 (d) of the Farm Credit Act of 1953, as amended (75
16 Stat. 793; 12 U.S.C. 636d (d) ) , relating to the annual sal-
17 aries for not more than three positions of deputy governor in
18 the Farm Credit Administration, which reads : " : Provided,
19 That. the salary of not more than three positions of deputy
20 governor each shall be fixed by the Board at a rate not ex-
21 seeding the maximum scheduled rate of the General Schedule
22 of the Classification Act of 1949, as amended".
23 (12) Subsection (b) of section 7 of the Peace Corps Act
24 (75 Stat. 645; - U.S.C. -) , relating to the compensation
25 of certain persons employed under that Act.
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1 t")) The first proviso in the paragraph under the head-
2 lug "Immigration and Naturalization Service" and under the
3 subheading "Salaries and expenses" in the Department of
4 Justice Appropriation Act, 1957 (70 Stat. '007; 5 U.S.C.
5 >42b-1) , relating to the annual salaries of the five assistant
6 commissioners and one district director in the Immigration
7 and Naturalization Service, which reads: ": Provided, That
8 the compensation of the five assistant commissioners and one
9 district director shall be at the rate of grade GS-16".
10 (14) That part of section 207 of the Agricultural Act
11 of 1956 (70 Stat. 200; 7 U.S.C. 1857), relating to the
12 annual salary of an agricultural surplus disposal adminis-
13 trator in the Department of Agriculture, which reads : ", at
14 a, salary rate of not exceeding $15,000 per annum,".
15 (15) Section 503 of the Act of July 31, 1,956 (70
16 Stat. 76)2; 5 U.S.C. 1105a) , relating to the submission of
17 reports to Congress with respect to positions in the top
18 grades of the Classification Act of 1949, as amended.
19 (16) Section 1102 of the Classification Act of 1949,
20 as amended (63 Stat.. 971; 5 U.S.C. 1073), relating to the
21 submission of reports with respect to the rates of compensa-
22 Lion under, and the administration of, such Act.
23 (17) Section 803 of the Classification Act of 1949, as
24 amended (68 Stat. 1106; 5 U.S.C. 113-3) , relating to author-
II.P. 1048(1 4
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ity of the Civil Service Commission to increase, under cer-
tain conditions, the existing minimum rate of basic compen-
sation for a given class of positions.
SEC. 211. (a) Subsection (b) of section 625 of the
Foreign Assistance Act of 1961 (75 Stilt. 449; - U.S.C.
-) , is amended to read :
" (b) Of the personnel employed in the United States to
carry out part I or coordinate part I and part II, not to
exceed seventy-six may be appointed or removed without
regard to the provisions of any law : Provided, That under
such regulations as the President shall prescribe, officers
and employees of the United States Government who are
appointed to any of the above positions may be entitled,
upon removal from such position, to reinstatement to the
position occupied at the time of appointment or to a position
of comparable grade and salary. Such positions shall be in
addition to those authorized by law to be filled by Presi-
dential appointment.".
(b) Subsection (c) of such section 625 of the Foreign
Assistance Act of 1961 is repealed.
(c) Subsection (b) of section 104 of the Mutual Educa-
tional and Cultural Exchange Act of 1961 (75 Stat. 530; -
V.S.C. -), relating to the employment and compensation of
certain personnel to carry out the provisions of that Act, is
25 amended to read :
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1 "(b) The President is authorized to employ such other
2 personnel as he deems necessary to carry out the provisions
3 and purposes of this Act.".
4 SEC. 212. (a.) Each position specifically referred to in,
5 or covered by, any amendment made by sections 210 and 211
6 of this title shall be placed in the appropriate grade of the
7 General Schedule of the Classification Act of 1949, as
8 amended, in accordance with the provisions of such Act.
9 (b) Positions in grades 16, 17, or 18, as the case may
10 be, of the General Schedule of the Classification Act of
11 1949, as amended, immediately prior to the effective date
12 of this section, shall remain, on and after such effective date,
13 in their respective grades, until appropriate action is taken
14 under section 505 of the Classification Act of 1949 as in
15 effect on and after such effective date.
16 SAVINGS PROVISIONS
17 SEC. 213. (a.) The changes in existing law made by
18 this title shall not affect any position existing immediately
19 prior to the effective date of any such changes in existing
20 law, the compensation attached to such position, and any
21 incumbent thereof, his appointment thereto, and his entitle-
22 ment to receive the compensation attached thereto, until
23 appropriate action is taken in accordance with this title.
24 (b) The incumbent of each such position immediately
25 prior to the effective date of this title shall continue to
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1 receive the rate of basic compensation which he was receiv-
2 ing immediately prior to such effective elate until lie leaves
3 such position or until he is entitled to receive compensation
4 at a higher rate in accordance with law. When such in-
5 cumbent leaves such position, the rate of basic compensation
6 of each subsequent appointee to such position shall be deter-
7 mined in accordance with the Classification Act of 1949,
8 as amended.
EFFECTIVE DATES
SEC. 214. The foregoing provisions of this title shall,
except as provided in section 203, become effective on the
first day of the first pay period which begins on or after
January 1, 1963.
TITLE III-POSTAL FIELD SERVICE EMPLOYEES
SHORT TITLE
SEC. 301. This title may be cited as the "Postal Em-
ployees Salary Adjustment Act of 1962."
POSTAL FIELD SERVICE SCHEDULE
SEC. 302. Subsection (a) of section 3542 of title 39,
United States Code, is amended to read as follows:
" (a) There are established basic compensation schedules
for positions in the postal field service which shall be known
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1 as the Postal Field Service Schedules and for which the sym-
2 bol shall be `PI'S'. The schedules shall become effective on
3 the dates specified herein. Except as provided in sections
4 :,543 and 3544 of this title, basic compensation shall be
5 paid to all employees in accordance with these schedules.
POSTAL FIELD SERVICE SCHEDULE
(To become effective on the first day of the first pay period which begins on or after
January 1, 1963)
1
$3, 565
$3, 685
2----------
3, 855
3, 985
4, 175
4, 315
4---------
4, 525
4, 675
4, 890
5, 055
6-------------
5,305
5, 480
-
-----------
5, 740
5, 930
-
6, 215
6,420
9-----------
6, 715
6, 940
10---------
7,260
7, 500
11------------
7, 960
8,225
12
8, 735
9, 025
13 ------------
9, 575
9, 895
I! _
10, 510
10, 860
15
11,525
11, 910
16-----------
12, 650
13, 070
17
13, 880
14. 340
18---------
15, 225
15, 730
19 ----------
16, 700
17,255
20----------
18, 350
18,960
(To become effective on the first day of the first pay period which begins on or after
January 1, 1964)
$3
805
$3
925
$4
045
$4
165
$4
285
$4
405
$4,525
$4, 645
$4,765
$4,885
$5,005
,
4,115
,
4,245
,
4, 375
,
4,505
,
4,635
,
4, 765
4,895
5,025
5,155
5, 285
5,415
4, 455.
4, 595
4, 735
4,875
5, 015
5, 155
5,295
5,435
5,575
5, 715
5,855
4,825
4, 975
5, 125
5,275
5,423
5,575
5,725
5,875
6,025
6, 175
6,325
5,220
5, 385
5, 550
5, 715
5, 880
6, 045
6, 210.
6,375
6,540
6,705
6,870
5,655
5,830
6,005
6,180
6,355
6,530
6, 705
6, 880
7,055
7,230
7,405
6,120
6,310
6,500
6,690
6,880
7,070
7,260
7:450
7,640
6, 625
6,830
7, 035
7, 240
7, 445
7,650
7,855
40
8
7, 165
7,390
7, 615
7,840
& 065
8,290
8,515
,7
7, 740
7,980
8,220
8,460
& 700
8,940
9,180
9,420
8,490
8, 755
9,020
9,285
9, 550
9,815
10,080
10,345
9,315
9, 605
9,895
10,195
10, 475
10,766
11,055
11, 345
10,215
10, 535
10,855
11, 175
11,495
11, 815
12, 135
12,455
11,210
11,560
11,910
12,260
12,610
12,960
13,310
13,660
12, 295
12, 680
13,065
13, 450
13,835
14,220
14,605
14,990
13, 490
13, 910
14.330
14, 750
15, 170
15, 590
16, 010
16,430
14,800
15, 260
15,720
16, 180
16, 640
17, 100
17,560
18,020
16, 235
16, 740
17, 245
17, 750
18,255
18,760
19,265
19,770
17, 810
18, 365
18,920
19, 475
20,030
19, 570
20, 180
1------------
$3,660
$3,785
$3,9101
$4,035
$1,160
2----------
3 960
,
4,095
4, 230
1
4, 365
4, 500
3-------------
4
,290
4, 435
4, 580
,
4, 725
4,870
4_____________
4,645
4, 800
4, 955.
5,110
5.265
5_____________
5,020
5, 190
5,360
5,530
5,700
------------
5, 440
5.620
5, 800
5,980
6,160
-------------
5, 890
6,085
6, 280
6,475
6,670
6,375
6, 585
6, 795
7,005
7,215
9 ----- -------
6, 890
7,120
7,350
7,580
7 , 810
10----------
7,540
7,790
8, 040
8, 290
8.540
8,325
8,600
8.875
9,150
9,425
1'2
9.185
9,490
9.795
10,100
10,405
13
10,135
10, 475
10,815
11,155
11,495
14----------
11,190
11,565
11, 940
12,315
12, 690
15
12,365
12, 775
13, 185
13,595
14,005
1f
13,645
14,100
14, 555
15,010
15, 465
17-----------
15, 070
1.5, 570
16,070
16 , 570
17, 070
18----------
16, 625
17, 180
17,735
18:290
18,845
10-----------
18,365
18,975
19, 585
20.195
20,805
20--
20,325
21, 000
21,675
$4, 285
$4.410
$4,535
$4,660
$4.785
$4, 910
$5,035
$5, 160
4, 635
4, 770
4,905
5,040
5,175
5, 310
5, 445
5, 580
5,015
5, 160
5,305
5, 450
5, 595
5,74C
5, 885
6,030
5,420
5,575
5,730
5,885
6,040
6,195
6, 350
6, 505
5,870
6,040
6,210
6,380
6, 550
6,720
6,890
7,060
6.340
6, 520
6,700
6,880
7,060
7,240
7,420
7,600
6.865
7,060
7,255
7,450
7,645
7,840
7,425
7.635
7,845
8,055
8,265
-------
8, 040
8,270
8,500
8,730
8,960
_ _ _ _ _ _ _
8, 790
9,040
9,290
9,540
9,790
-------
9,700
9.975
10,250
10.525
10,800
-------
10,710
11.015
11,320
11,625
11,930
-------
11,835
12.175
12,515
12.855
13,195
_ _ _ ----
13,065
13.410
13,815
14,190
14,565
-------
14, 415
14. 825
15,235
15,645
16,055
-------
15, 920
16.375
16,830
17,285
17,740
-------
17, 570
18.070
18,570
19,070
19,570
-------
19,
400
19,955
20,510
21,065
21,620
_______
21,415
22,025
-------
-- -----
--- ---
-------
-
------
-
------
------
------
-----
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 Approved For Release 2003/03/28 : CIA-RDP80BO1676R003100200018-9
(To become effective on the first day of the first pay period which begins on or after
January 1, 1965)
1'----------
2-----------
3------------
4-------------
-------------
-------------
-------------
10 5 -----------
11-----------
12-----------
13-----------
14----------
15---------
16---------
17----------
18------------
19------------
1`'0----------
$3, 705
4:010
4,345
4,690
5,085
5, 500
5, 9501
6, 4401,
6, 965
7, 725
8, 580
9, 520
10, 555
11, 700
12, 980
14,400
15, 960
17, 690
19,615
21,7551
$3
830
$3
955
$4
080
205
$4
$4
330
$4
455
$4
580
$4
705
830
$4
$4
055
$5
080
205
$5
,
4:145
,
4, 280
,
4,415
.
4, 550
,
4, 685
,
4,820
,
4, 955
,
5,090
,
5,225
,
5,360
,
5,495
,
5,630
4,490
4, 635
4,780
4,925
5, 070
5, 215
5, 360
5, 505
5, 650
5,795
5,940
6, 085
4,850
5, 010
5,170
5,330
5,490
5, 650
5:810
5, 970.
6,130
6,290
6,450
6,610
6,255
5, 425
5, 595
5, 765
5, 935
6, 105
6, 275
6,445
6,615
6,785
6,955
7, 125
5,685
5, 870
6,055
6,240
6, 425
6, 610
6, 795
6,980
7,165
7,350
7,536
7,720
6,150
6, 350
6_950
6,750
6, 950
7,150
7,350
7, 550
7,750
7,950
6,655
6,870
7,085
7,300
7,515
7,7-30
7,945
8,160
8,375
7 , 200
7, 435
7, 670
7, 905
8. 140
8, 375
8,610
8,845
9,080
7,985
8, 245
8, 505
8, 765
9,025
9, 285
9, 545
9,805
10,065
8, 865
9, 150
9,435
9,720
10,005
10, 290
10, 575
10,860
11,145
9, 835
10, 150
10, 465
10,780
11,095
11,410
11,725
12,040
12,355
10, 905
11:255
11, 605
11, 955
12,305
12, 655
13, 005
13,355
13,705
12,090
12, 480
12,870
13, 260
13,650
14,040
14, 430
14,820
15, 210
13,410
13, 840
14,270
14.700
15, 130
15, 560
15,990
16,420
16,850
14,875
15,350
15,825
16.300
16, 775
17,250
17,725
18,200
18, 675
16,490
17,020
17, 550
18,080
18,610
19, 140
19, 670
20,200
20,730
18, 280
18, 870
19, 460
20, 050
20,640
21, 230
21,820
22,410
23,000
20,270
20,925
21,580
22. 235
22, 890
23, 545
22,480
23, 205
23, 930
-------
PUPAL CAIUtTER SCHEDULES
SEC. 303. (a) Subsection (a) of section 3543 of title
39, United States Code, is amended to read as follows:
" (a) There are established basic compensation sched-
ules which shall be known as the Rural Carrier Schedules,
and for which the symbol shall be `RCS'. The schedules
shall become effective on the dates specified herein.
RURAL CARRIER SCHEDULE
(To become effective on the first day of the first pay period which begins on or
after January 1, 1963)
Per annum rates and steps
1 2
3
4
5
6
7
8
9
10
11
12
13
$-4,850 $5. 010
65,170
$5,330
$5,490
$5, 60
$5, 810
$5,970
$6,130
$6,290
$6,450
$6,610
$6,770
(To become effective on the first day of the first pay period which begins on or
after January 1, 1964)
1
2
3
4
5 6
7
8
9
10
11
12
13
$4.970
$5, 135
$5, 300
$5, 465
$5,630 $5, 795
$5, 960
$6,125
$6,290
$6, 455
$6,620
$6, 785
$ .950
(To become effective on the first day of the first pay period which begins on or
after January 1, 1965)
1
2
3 4
5
6
7
8
11
10
11
12
13
$5,045
55. 210
$5, 375
$5,540
$5, 705
55.870
$6, 035
$6, 200
$6,365
$6, 530
$6,695
$6,860
$7.025
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 Approved For Release 2003/03/28 : CIA-RDP80BO1676R003100200018-9
1 (b) Subsection (b) of section 3543 of title 39, United
States Code, is amended to read as follows:
" (b) (1) The basic compensation to be paid a rural
carrier shall be the appropriate rate for his route as deter-
mined from the following table, which provides five service
classifications for rural routes based upon work requirements
for a week comprising six workdays.
Service
classi-
fication
A-------
Less than 25 hours____________
76 percent of rural carrier schedule rate.
B-------
25 to 28 hours, 59 minutes______
82 percent of rural carrier schedule rate.
C-------
29 to 32 hours, 59 minutes______
88 percent of rural carrier schedule rate.
n-------
33 to 36 hours, 59 minutes______
94 percent of rural carrier schedule rate.
I'-------
37 hours and over_____________
100 percent of rural carrier schedule
rate. Plus 3.75 percent for each hour
or fraction thereof over 40.
8 " (2) The basic compensation of a rural carrier serving
9 one triweekly route shall be one-half the amount which would
10 be due from a projection of the requirements for his route
11 over a six-day week. The basic compensation of a rural
12 carrier serving two triweekly routes shall be the rate for the
13 service classification based on the combined work require-
14 ments of the two routes."
15 (c) Subsection (c) of section 3543 of title 39, United
16 States Code, is amended to read as follows :
17 " (c) (1) The Postmaster General shall determine the
18 weekly work requirements of each rural route by application
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32
1 of tlic following work standards, pursuant to regulations
2 prescribed by him:
(A) OFFICE TIME STANDARDS
No. per
(i) Routing : minute
Letters, cards, and letter size circulars----------------------
Papers, magazines, catalogs, etc----------------------------
Preparing parcel post for delivery--------------------------
16
8
3
(ii) Other: Minutes
Boxholder mail, whether cased or not, for each 25 ------------ 1
Withdrawing mail from distribution cases (if the carrier does
this) -------------------------------------------------- 5
Strapping mail into bundles-reasonable allowance not exceed-
ing average time actually used.
Loading mail into vehicles-reasonable allowance not exceeding
average time actually used.
Receipting for COD mail and making returns, for each of the
first 5------------------------------------------------- 2
For each COD in excess of first 5--------------------------- 1
Registers and certified signed for and receipts turned in------- 4
For each 4 pieces marked up------------------------------- 1
For each change of address recorded in roster book ----------- 1
Preparing mail collected (letters) and turning in sane, each
25 pieces----------------------------------------------- 1
Preparing and turning in parcel post mail collected, each ----- 2
Preparing and turning in money order collections, each of
first 5 ------------------------------------------------- 2
For preparing and turning in each money order, each over 5--- 1
Checking and purchasing stamp stock---------------------- 5
For any other office work required and directed, but not listed
above, suitable time allowance should be made.
(B) DELIVERY TIME STANDARDS
Minutes
For each route mile-- __________________________________
2.4
For each three boxes on route----------------------------------
1
For each money order application received----------------------
2
For each register and certified accepter-------------------------
2
For each insured parcel accepted-------------------------------
2
For each ordinary parcel accepted------------------------------
1
For each register, certified and insured delivered-----------------
3
For each COD delivered--------------------------------------
4
(C) UNUSUAL CONDITIONS
Suitable time allowance should be made for any unusual circum-
stances or other services not listed above which are peculiar to the indi-
vidual route.
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 Approved For Release 2003/03/28 : CIA-RDP80BO1676R003100200018-9
33
1 " (2) Whenever auxiliary assistance in the office or on
2 the route is provided, the work requirements for the route
3 shall be reduced at the rate of 50 minutes for each hour of
4 such assistanice ; and the route shall then be reclassified under
5 subsection (b) of this section if the amount of reduction in
6 work requirements is sufficient to affect the service classi-
7 fication of the route."
8 (d) Subsection (d) of section 3543 of title 39, United
9 States Code, is amended to read as follows:
10 " (d) The Postmaster General shall provide for-
11 " (1) An annual inspection of each rural route.
12 Among other things such inspection shall include a count
13 of mail and provide for the development of the statisti-
14 cal data necessary to determine the service classification
15 of each route. Changes in basic compensation which
16 result from annual inspections shall become effective at
17 the beginning of the first pay period which commences
18 on or after July 1 of each calendar year.
19 " ('2) Additional inspections, either upon manage-
20 ment initiative when deemed necessary or within sixty
21 days upon individual employee request for reclassification
22 due to service changes. Changes in basic compensation
H.R.10480 5
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 Approved For Release 2003/03/28 : CIA-RDP80BO1676R003100200018-9
34
which result from other than annual inspections shall
become effective at the beginning of the pay period
following completion of the inspection.
" (3) Determination of the tentative service classi-
fication of a newly established rural route to be followed
,by inspection, and appropriate service classification."
(e) Subsection (f) of section 3543 of title 39, United
States Code, is amended to read as follows :
" (f) In addition to the compensation provided in this
section, each rural carrier shall be paid an allowance for
equipment maintenance determined as follows :
" (1) For routes having less than two hundred and
sixty stops, as determined by the Postmaster General, the
allowance shall be $4 per day, or 10 cents a mile, which-
ever is the greater; and
" (2) For other routes, the allowance shall be the
greater of-
" (A) 10 cents a mile for each mile or major
fraction of a mile scheduled, or
" (B) The stns of the following :
" (i) $4 a, day,
" (ii) 5 cents for each twenty stops in ex-
cess of two hundred and sixty a day, as deter-
mined by the Postmaster General, and
" (iii) 5 cents a mile for each mile or major
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 Approved For Release 2003/03/28 : CIA-RDP80BO1676R003100200018-9
35
1 fraction of a mile scheduled over twenty-two
2 miles.
3 " (3) When unusual road conditions contribute to
4 excessive costs in operation of equipment, the Post-
5 master General may pay an additional allowance as
6 he may deem to be fair and reasonable for such period
7 of time as the conditions prevail. The allowance under
8 this paragraph may not exceed the sum of $2 a day,
9 and such allowance may be paid for not more than
10 ninety days in a calendar year.
11 Payment for equipment maintenance shall be made at the
12 same periods and in the same manner as payments of basic
13 compensation."
14 (f) Section 3543 of title 39, United States Code, is
amended by adding thereto new subsections (i) , (j) , and
(k) as follows:
" (i) Each person serving as a substitute of record on
the effective date of this subsection shall be placed in step 1
of the Rural Carrier Schedule, and he shall be paid for each
day of service on the basis of the service classification of his
route. Thereafter, he shall be advanced by step-increases
pursuant to the provisions of sections 3552 and 3553 of this
title.
" (j) During the Christmas mailing season the Post-
master General may, in his discretion, advance the service
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 Approved For Release 2003/03/28 : CIA-RDP80BO1676R003100200018-9
36
1 classification of such rural routes as service conditions
2 warrant.
3 " (k) The Postmaster General may pay additional com-
4 pensation to rural carriers who are required to carry pouch
5 mail to intermediate post offices, or for intersecting loop
6 routes, in all cases where it appears that the carriage of
7 pouches increases the expense of the equipment required by
8 the carrier or materially increases the amount of labor per-
9 formed by him. The compensation may not exceed the
10 sum of $12 per annum for each mile the carrier is required
11 to carry the pouches."
12 FOURTH CLASS OFFICE SCHEDULES
13 SECS. 304. Section 3544 (a) of title 39, United States
14 Code, is amended to read as follows :
" (a) There are established basic compensation schedules
16 which shall be known as the Fourth Class Office Schedules,
17 and for which the symbol shall be 'FOS', for postmasters in
18 post offices of the fourth class. The schedules shall become
19 effective on the dates specified herein and are based upon the
20 gross postal receipts as contained in returns of the post office
21 for the calendar year immediately preceding. Basic com-
22 pensation shall be paid to postmasters in post offices of the
23 fourth class in accordance with these schedules, and the basic
24 compensation so paid, together with other forms of compen-
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 Approved For Release 2003/03/28 : CIA-RDP80BO1676R003100200018-9
37
1 sation provided by this section, shall replace all existing
2 forms of compensation for these postmasters.
(To become effective on the first day of the first pay period which begins on or after
January 1, 1963)
$1,300 to $1,499.99--------
$3, 510
$3,627
$3, 744
$3,861
$3, 978
$4, 095
$4, 212
$4, 329
$4, 446
$4,563
$4,680
$4,797
$4,914
$900 to $1,299.99----------
3,120
3,224
3, 328
3, 432
3, 536
3, 640
3, 744
3,849
3,952
4,056
4,160
4, 264
4,368
$600 to $899.99------------
2, 730
2,821
2, 912
3,003
3,094
3, 185
3, 276
3,367
3, 458
3, 549
3,640
3, 731
3,822
$350 to $599.99------------
2, 340
2, 418
2,496
2, 574
2,652
2,730
2,808
2, 886
2, 904
3,042
3,120
3, 198
3,276
$250 to $349.99-----------
1,950
2,015
2, 080
2, 145
2,210
2, 275
2, 340
2, 405
2, 470
2,535
2,600
2,665
2, 730
$200 to $249.99----------
1, 560
1, 612
1,664
1, 716
1, 768
1, 820
1,872
1,024
1,976
2,028
2,080
2,132
2,184
$100 to $199.99------------
1, 170
1,209
1, 248
1, 287
1, 326
1, 36,51
1, 404
1,443
1, 482
1,521
1, 560
1,599
1,638
Under $100---------------
780
806
632
858
884
910
936
962
988
1,014
1,040
1,066
1,092
(To become effective on the first day of the first pay period which begins on or after
January 1, 1964)
$1,300 to $1,499.99--------
$3, 612
$3, 732
$3, 852
$3, 972
$4,092
$4, 212
$4,332
$4, 452
$4, 572
$4, 692
$4,812
$4,932
$5,052
$900 to $1,299.99----------
3, 210
3,317
3,424
3, 531
3,638
3,745
3,852
3,059
4,066
4,173
4,2280
4,387
4, 494
$600 to $899.99------------
2, S09
2, 903
2,997
3,091
3,185
3,279
3,373
3,467
3,561
3, 655
3,749
3,843
3.937
$350 to $599.99------------
2, 408
2, 488
2, 568
2,648
2,728
2,808
2,888
2,968
3,048
3,128
3,208
3,299
3,368
$2.50 to $349.99------------
2,007
2,074
2, 141
2, 208
2,2275
2,342
2, 409
2, 476
2,543
2, 610
2,677
2,744
2,811
$200 to $249.99-----------
1, 605
1,659
1,713
1, 767
1, 821
1,875
1, 929
1,983
2,037
2,091
2,145
2,191
2.253
$100 to $199.99 ------------
1,204
1, 244
1,284
1,324
1, 364
1,404
1, 444
1, 484
1, 524
1,564
1,604
1,644
1 684
Under $100._-------------
803
830
857
884
911
938
965
99'2
1,019
1,046
1,073
1, 100
,1, 127
(To become effective on the first day of the first pay period which begins on or after
January 1, 1965)
$1,300 to $1,499.99-------_
$900 to $1,299.99---------
$3, 654
3,248
$3, 776
3,356
$3,898
3, 464
$4,020
3,572
$4,142
3,680
$4, 264
3, 788
$4,386 3,896
$4, ON
$4, 630
4, 112
$4,752
3
$4,874
3
$4,996
4,436
$5,118
4,544
$600 to $899.99------------
2,842
2, 937
3,032
3, 127
3,222
3, 317
3,412
3, 507
3,602
3,697
3,792
3,887
3, 982
$350 to $599.99------------
2, 436
2, 517
2,598
2,679
2, 760
2,841
2, 922
3,003
3,084
3,165
3,246
3,327
3, 408
$250 to $349.99------------
2,030
2, 098
2, 166
2,234
2,302
2, 370
2, 438
2,506
2,574
2, 642
2, 710
2,778
2,846
$200 to $249.99------------
1,624
1, 678
1,732
1,796
1, 840
1,894
1,948
2,002
2,056
2,110
2, 164
2,218
2,272
$100 to $199.99----------
1, 218
1,258
1,298
1, 338
1, 378
1, 418
1,458
1,498
1,538
1, 578
1, 618
1,658
1,698
Under $100---------------
812
839
866
893
920
947
974
1,001
1,028
1, 055
1,082
1,109
1,136
SEC. 305. Section 3552 of title 39, United States Code,
4 is amended to read as follows:
" (a) Each employee in the postal field service, who
has not reached the highest step for his position, shall be
advanced successively to the next higher step, as follows:
" (1) To steps 2, 3, and 4-at the beginning of the
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1 first pay period following the completion of fifty-two
2 calendar weeks of satisfactory service;
3 " (2) To steps 5, 6, and 7-at the beginning of the
4 first pay period following the completion of one hundred
5 and four calendar weeks of satisfactory service; and,
6 " (3) To steps 8 and above-at the beginning of the
7 first pay period following the completion of one hundred
8 and fifty-six calendar weeks of satisfactory service.
9 The receipt of an equivalent increase during any of the wait-
10 ing periods specified in paragraphs (1), (2), and (3) of
11 this subsection shall cause a new full waiting period to com-
12 mence for further step-increases.
13 " (b) Any increase in basic compensation granted by
14 law on or after January 1, 1962, to employees in the postal
15 field service shall not be deemed to be an equivalent in-
16 crease in basic compensation within the meaning of subsec-
17 tion (a) of this section.
" (c) The benefit of successive step-increases shall be
preserved, under regulations prescribed by the Postmaster
General, for employees whose continuous service is inter-
rupted by service in the armed services."
SEC. 306. Section 3554 of title 39, United States Code,
is amended to read as follows :
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1 "? 3554. Compensation of certain temporary employees
2 "Temporary employees hired for a continuous period
3 of one year or less for a position in the postal field service
4 shall be paid basic compensation at the entrance step of the
5 position to which they are appointed.".
6 SEC. 307. Section 3559 of title 39, United States Code,
7 is amended to read as follows:
8 "An employee who is promoted or transferred to a posi-
9 tion in the Postal Field Service Schedule which is not more
10 than two levels above the level of the position from which
11 promoted shall be paid basic compensation at the lowest
12 step of the higher salary level which exceeds his existing
13 basic compensation by not less than two steps of the salary
14 level from which promoted or transferred; an employee who
15 is promoted or transferred to a position in the Postal Field
16 Service Schedule which is more than two levels above the
17 level of the position from which promoted shall be paid
18 basic compensation at the lowest step of the higher salary
19 level which exceeds his existing basic compensation by not
20 less than three steps of the salary level from which pro-
21 moted or transferred. If there is no step in the salary level
22 to which the employee is promoted which exceeds his exist-
23 ing basic compensation by at least the amount of the specified
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1 difference, the employee shall be paid (1) the maximum
2 step of the salary level to which promoted, or (2) his
3 existing basic compensation, whichever is higher.".
4 SEC. 308. Subsection (a) (2) of section 3560 of title
5 39, United States Code, is amended to read as follows:
6 " (2) Basic compensation for the particular route,
7 excluding that portion of such compensation derived from
8 assignment to Classification E of the Rural Carriers
9 Schedule attributable to weekly work requirements in
10 excess of forty hours.".
11 SEC. 309. Subsection (a) (4) of section 6402 of title
12 39, United States Code, is amended to read as follows :
13 " (4) Delivery and collection service may not be
14 established or extended under a star route contract on a
15 rural route except when such route does not meet the
16 minimum standards established by the Postmaster Gen-
17 eral, and becomes vacant, and,".
18 SEc. 310. Section 3101 of title 39, United States Code,
19 is amended by deleting paragraphs (5) and (6), and insert-
20 ing in lieu thereof, the following:
21 " (5) 'Basic salary' and `basic compensation' mean
22 the rate of annual or hourly compensation specified by
23 law, exclusive of overtime and night differential.".
24 SEC. 311. Subsection 3541 (d) of title 39, United States
J5 Code, is amended by (a) inserting in paragraph (3) thereof,
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1 after "rural carriers," the phrase " (other than substitute
2 rural carriers,) " and (b) adding a new paragraph (5) as
3 follows :
4 " (5) To compute the daily rate of basic compen-
5 sation for substitute rural carriers, the annual rate of
6 compensation shall be divided by 304-.".
7 CONVERSION AS OF TIIE FIRST PAY PERIOD FOLLOWING
8 JANUARY 1, 1963
9 Postal Field Service Schedule
10 SEC. 312. (a) The basic compensation of each em-
11 ployee on the rolls in the Postal Field Service Schedule on
12 the effective date of this schedule shall be determined as
13 follows :
14 (1) Each employee shall be assigned to the same
15 numerical level and step he was in prior to the effective
16 date of this schedule. If changes in level or step would
17 otherwise occur on the effective date of this schedule
18 without regard to the enactment of this schedule, such
19 changes shall be deemed to have occurred prior to con-
20 version.
21 (2) In addition to conversion pursuant to para-
22 graph (1) of this subsection, each employee shall be
23 advanced to further steps on account of any longevity
24 steps he may have earned prior to conversion (includ-
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1 ing those which would become effective as of the effec-
2 tive date of this schedule) as follows:
3 (A) Employees in PFS 1 through 5, one addi-
4 tional step for each longevity step regardless of the
5 step the employee was in prior to conversion.
6 (B) Employees in PFS 6 through PFS 18:
7 (i) if below step 7 prior to conversion, no credit
8 will be given for existing longevity steps; and, (ii)
9 if in step 7 prior to conversion, one single additional
10 step will be granted.
11 (C) Employees in PFS 19 and PFS 20, no
12 additional step-increase will be granted.
13 (3) Credit earned by an employee toward the next
14 step-increase (other than toward longevity steps) prior
15 to the effective date of this schedule shall be creditable
16 under subsection 3552 (a) and section 3553 of title
17 39, United States Code, toward further step-increases
18 if no step-increases were granted pursuant to paragraph
19 (2) of this subsection. Credit earned toward longevity
20 step-increases prior to the effective date of this schedule
21 shall not be creditable toward further step-increases
22 pursuant to subsection 3552 (a), and section 3553 of
23 title 39, United States Code.
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Rural Carrier Schedule
(b) The basic compensation of each regular and tempo-
rary rural carrier on the rolls in the Rural Carrier Schedule
on the effective date of this schedule shall be determined
as follows :
(1) Each regular or temporary rural carrier shall
be placed in the step for the service classification of his
route which corresponds to his existing numerical step.
For each longevity step attained on or before the ef-
fective date of this schedule, such carrier shall be
advanced one step in the Rural Carrier Schedule. If
changes in basic compensation (including 'longevity
step-increases) would otherwise occur on the effective
date of this schedule, without regard to the enactment
of this schedule, such changes shall be deemed to have
occurred prior to conversion.
(2) Each regular or temporary carrier who, on the
effective date of this schedule, has not reached step 7,
shall retain credit for advancement to the next step,
pursuant to subsection 3552 (a) and section 3;553 of title
39, United States Code, if he was not granted a step-
increase on account of longevity steps. Credit earned
toward longevity step-increases prior to the effective
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1 date of this schedule shall not be creditable toward further
2 step-increases pursuant to subsection 3552 (a) of title
3 39, United States Code.
4 (3) Nothing in this section shall be deemed to re-
5 duce the basic compensation of such regular or tempo-
6 rary rural carriers in effect immediately prior to
7 conversion under this section so long as the rural carrier
8 continues to serve a route with the same or a higher
9 service classification.
10 Fourth Class Office Schedule
11 (c) The basic compensation of each postmaster on the
12 rolls in the Fourth Class Office Schedule on the effective date
13 of this schedule shall be determined as follows:
14 (1) Each postmaster shall be assigned to the same
15 receipts category and numerical step he was in prior to
16 the effective date of this schedule. If changes in re-
17 ceipts category or step would otherwise occur on the
18 effective date of this schedule without regard to the
19 enactment of this schedule, such changes in receipts
20, category or step shall be deemed to have occurred prior
21 to conversion.
22 (2) Postmasters who, as of the effective date of this
23 schedule, have not reached step 7, shall retain credit
24 for advancement to the next step under subsection 3552
25 (a) and section 3553 of title 39, United States Code, if
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1 no step-increases are granted pursuant to paragraph 3
2 of this subsection. Credit earned toward longevity step-
3 increases prior to the effective date of this schedule shall
4 not be creditable toward further step-increases under sub-
5 section 3-552 (a) and section 3553 of title 319, United
6 States Code.
7 (3) For each longevity step earned prior to the
8 effective date of this schedule postmasters shall be ad-
9 vanced one step.
10 (d) If the existing basic compensation of any employee
11 in the Postal Field Service Schedule, Rural Carrier Schedule,
12 and Fourth Class Office Schedule is greater than the rate
13 established by subsections (a) , (b) , and (c) of this sec-
14 tion, he shall be placed in the first step which exceeds his
15 existing basic compensation; if the existing basic compensa-
16 tion is greater than any numerical step and service classifica-
17 tion, his existing basic compensation shall be established as
18 his basic compensation.
19 CONVERSION AS OF THE FIRST PAY PERIOD FOLLOWING
20 JANUARY 1, 1964
21 SEC. 313. The basic compensation of each employee on
22 the rolls in the Postal Field Service Schedule, Rural Carrier
23 Schedule, and Fourth Class Office Schedule on the effective
24 date of this schedule shall be determined as follows:
25 (1) Each employee shall be assigned to the same
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1 numerical step for his position which he had attained
2 prior to the effective date of this schedule. If changes
3 in levels, service classification, receipts categories, or
4 steps would otherwise occur on the effective date of
5 this schedule without regard to enactment of this sched-
6 tile, such changes shall be deemed to have occurred
7 prior to conversion.
8 (2) If existing basic compensation is greater than
9 the rate to which the employee is converted under
10 paragraph (1) of this section, the employee shall be
11 placed in the lowest step which exceeds his basic com-
12 pensation; if the existing basic compensation exceeds
13 the maximum step of his position, his existing basic
14 compensation shall be established as his basic compen-
15 sation.
16 CONVERSION AS OF THE FIRST PAY PERIOD FOLLOWING
17 JANUARY 1, 1965
18 SEC. 314. The basic compensation of each employee on
19 the rolls in the Postal Field Service Schedule, Rural Carrier
20 Schedule, and Fourth Class Office Schedule on the effective
21 date of this schedule shall be determined as follows:
22 (1) Each employee shall be assigned to the same
23 numerical step for his position which he had attained
24 prior to the effective date of this schedule. If changes
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1 in levels, service classifications, receipts categories, or
2 steps would otherwise occur on the effective date of this
3 schedule without regard to enactment of this schedule,
4 such changes shall be deemed to have occurred prior to
5 conversion.
6 (2) If existing basic compensation is greater than
7 the rate to which the employee is converted under para-
8 graph (1) of this section, the employee shall be placed
9 in the lowest step which exceeds his basic compensation;
to if the existing basic compensation exceeds the maximum
11 step of his position, his existing basic compensation
12 shall be established as his basic compensation.
13 SEC. 315. Conversions made pursuant to sections 312,
14 313, and 314 of this title are not subject to the provisions
15 of section 201 of the Act of September 21, 1961 (75 Stat.
16 569, Public Law 87-270), codified as section 3560 of title
17 39, United States Code.
18 SEC. 316. Subsection (b) of section 3335 of title 39 of
19 0, U'tdStt Cd ' ddb AX- +I, f11
o
e m e a es
e, s am
ien e y a ig e o offing
sentence ,it the end thereof: "Effective as of December 3,
1955, the preceding sentence shall not be deemed to preclude
the Postmaster General from adjusting the employee's basic
compensation before the performance in each calendar year
of 30 days of higher level service."
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1 REPEALS
2 SEC. 317. Sections 101 through 105 of the Act of July
3 1, 1960 (74 Stat. 296, Public Law 86-568), and section
4 3558 of title 39, United States Code, are repealed.
5 SEC. 318. Title 39 of the United States Code is amended
6 by adding a new section 3106 as follows:
7 "? 31d. Special compensation rules
8 "In order that the basic compensation schedules in sec-
9 tions 3542, 3543, and 3544 of this title may be used equita-
10 bly and with maximum effect to attract and motivate em-
11 ployees, the Postmaster General may, but need not, prescribe
12 regulations pursuant to which he may :
13 " (a) Within the limit of available appropriations.
14 grant to any officer or employee before the expiration of
15 the periods prescribed by section 3552, step-increases in
16 recognition of extra competence: Provided, That no of-
17 ficer or employee shall be eligible under this section for
18 more than one such additional step-increase within any
19 period of fifty-two weeks, and such increase shall not be
20 considered to be an equivalent increase.
21 " (b) Appoint any officer or employee at a salary
22 rate above the minimum step of the level when the ap-
23 pointee has extra qualifications for the position or the
24 minimum rate would be less than the current salary of
25 a well-qualified appointee."
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1 CONFORMING AMENDMENT
2 SEC. ')19. (a) The table of contents of chapter 41 of
3 title :39, l'liited States Code, is amended by adding after
4 the heading entitled "EMPLOYEES GENERALLY", the
5 following:
:
"3106. Special compensation rules".
6 (b) The table of contents of chapter 45 of title 39,
7 United States Code, is amended by deleting Longevity
8 step-increases".
9 EFFECTIVE DATE
10 Six. 320. The provisions of this title shall become
11 effective on the first day of the first pay period which begins
12 on or after January 1, 1963.
13 TITLE IV-DEPARTMENT OF MEDICINE AND
14 SURGERY IN THE VETERANS' ADMINISTRA -
15 'L'ION
16 SE e. 401. Section 4103 of title 38 of the United States
17 Code, relating' to the appointment and annual salaries of the
18 Chief Medical Director and certain other officers of the De-
19 partment of Medicine and Surgery of the Veterans' Adminis-
20 tration, is amended to read as follows :
21 "? 4103. Appointments and compensation
22 " (a) The Office of the Chief Medical Director shall con-
23 silt of the Chief Medical Director, one Deputy Chief Medi-
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1 cal Director, not to exceed live Assistant Chief Medical Di-
2 rectors, such Medical Directors as may be designated by
3 the Chief Medical Director to suit the needs of the Depart-
4 ment, and such other personnel and employees as may be
5 authorized by this chapter.
6 " ()-)) The Chief Medical Director shall be the Chief of
7 the Department of Medicine and Surgery and shall be directly
8 responsible to the Administrator for the operations of the
9 Department. He shall be a qualified doctor of medicine,
10 appointed by the Administrator. During the period of his
11 service as such, the Chief Medical Director shall be paid,
12 effective on the first day of the first pay period beginning on
13 or after-
14 "January 1, 1963, a salary of $23,000 a year;
15 "January 1, 1964, a salary of $26,000 a year;
16 "January 1, 1965, a salary of $28,000 a year.
17 " (c) The Deputy Chief Medical Director shall be the
18 principal assistant to the Chief Medical Director. He shall
19 be a qualified doctor of medicine, appointed by the Adminis-
20 trator. During the period of his service as such, the Deputy
21 Chief Medical Director shall be paid, effective on the first day
22 of the first pay period beginning on or after-
"January 1, 1963, a salary of $22,245 a year;
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1 "January 1, 19(14, a salary of $25,150 a year;
2 "January 1, 1965, a salary of $27,290 a year.
3 " (d) Each Assistant Chief Medical Director shall be
4 appointed by the Administrator upon the recommendation
5 of the Chief Medical Director and shall be paid, effective on
6 the first day of the first pay period beginning on or after-
7 "Januar)' 1, 1963, a salary of $20,315 a year;
8 "January 1, 1964, a salary of $22,740 a year;
9 "January 1, 1965, a salary of $24,500 a year.
10 "One Assistant Chief Medical Director shall be a quali-
11 fled doctor of dental surgery or dental medicine who shall be
12 directly responsible to the Chief Medical Director for the
13 operations of the Dental Service.
14 " (e) Medical Directors, during their period of service
15 as such, shall be paid effective on the first day of the first
16 pay period beginning on or after-
17 "January 1, 1963, a salary of $20,180 a year;
18 "January 1, 1964, a salary of $22,350 a year;
19 "January 1, 1965, a salary of $23,930 a year.
20 " (f) The Director of Nursing Service shall be a q aali-
21 fled registered nurse, appointed by the Administrator, and
22 shall be responsible to the Chief Medical Director for the
23 operation of the Nursing Service. During the period of
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~crvi(e as such the Director of Nursing Service shall be
paid effective on the first day of the first pay period be-
giiuiiiig on or after:
4 "Jamiaiy 1, 1963, a salary of $14,495 minimum to
5 818,815 maximum a year;
6 "January 1, 1964; a salary of $15,725 minimum
7 to $20,450 maximum a, year;
8 "January 1, 1965, a salary of $16,620 niinituuiu
9 to $21.615 ntaximunt a year.
10 " (g) The Administrator may appoint a chief phar-
11 macist and a chief dietitian. During the period of his serv-
12 ice as such, the chief pharmacist and the chief dietitian shall
13 be paid, effective on the first day of the first pay period
14 beo-inning on or after:
15 "Janttary 1, 19()'3, a salary of $14,495 minimum
16 to $18,815 maximum a year;
17 "Jauttarv 1, 1964. a salary of S")45,725 miniiiuutl
1S to $20.450 maximum a year;
19 "January 1. 1965, a salary of $16,620 i-iinirntnn
20 to $21,615 maximum a year.
21 "(b) Any appointment under this section shall be for
22 a period of four years subject to removal by the Adminis-
trator for cause.
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reappointments rnav he made for successive like
periods."
ix'. 402. Section 4107 of such title 38 relating to
the minimum and maximum rates of annual salary of cer-
taro physicians, dentists, and nurses of the Department
of Medicine and Surgery of the Veterans' Administration
is amended to read as follows:
4107. Grades and pay scales
" (a) (1) Effective on the first day of the first pay
period heginnin0? on or after January 1, 196. the grades
and per annum full-pay ranges for positions provided in
paragraph (1) of section 4I 04 of this title shall he as fol-
lows.
"I'llYSTCTAN AN I) DENTIST SCHEDULE
"Director rode, $16,400 minimum to $19,670 maxi-
11111111.
"Executive grade, $15,410 minimum to $19,570 maxi-
mum.
"Chief gr,l(le,$14,495 nlinilmml to $181815 maximum.
"Senior ,ride, $12,6(3 i minimum to $16,490 maximum.
"Intermediate grade, $10,965 minimum to $14,250
maximum.
"i+nll orade, $9,:;80 minimum to $i'12,215 maximum.
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1 "Associate grade,
2 mum.
54
x7,960 minimum to $10,345 maxi-
3 "NURSE SCHEDULE
4 "Assistant Director grade, $12,665 minimum to $16,-
5 490 rnaximuln.
6 "Chief grade, $10,965 minimum to
14,250 maximum.
7 "Senior grade, $9,380 minimum to $12,215 maximum.
8 "Intermediate grade, $7,960 minimum to $10,345 maxi-
9 mum.
10 "Full grade, $6,675 minimum to $8,700 maximum.
11 "Associate grade, $5,820 minimum to $7,575 maximum.
12 "Junior grade, $5,035 minimum to $6,565 maximum.
13 " (2) Effective on the first day of the first pay period
14 beginning on or after January 1, 1964, the per annum full
15 pay ranges for positions provided in paragraph (1) of see-
16 Lion 4104 of this title shall be as follows :
17 "PHYSICIAN AND DENTIST SCHEDULE
18 "Director grade, $17,970 minimum to $21,570 maxi-
19 mum.
20 "Executive grade, $16,830 minimum to $21,310
21 maximum.
22 "Chief grade, $15,725 minimum to $20,450 maximum.
23 "Senior grade, $13,615 minimum to $17,710 maximum.
24 "Intermediate grade, $11,670 minimum to $15,180
25 maximum.
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1 "Full grade, $9,910 minimum to $12,880 maximum.
2 "Associate grade, $8,325 minimum to $10,800 maxi-
3 morn.
4 "NURSE SCHEDULE
5 "Assistant Director grade, $13,615 minimum to $17,-
6 710 nlaximuin.
7 "Chief grade, $11,670 minimum to $15,180 maximum.
8 "Senior grade, $9,910 minimuin to $12,880 maximum.
9 "Intermediate grade, $8,325 minimum to $10,800
10 maximum.
11 "Full grade, $6,925 minimum to $8,995 maximum.
12 "Associate grade, $6,000 minimum to $7,800 maximum.
13 "Junior grade, $5,165 minimum to $6,695 maximum.
14 " (3) Effective on the first day of the first pay period
15 beginning on or after January 1, 1965, the per annum full
16 pay range for positions provided in paragraph (1) of section
17 4104 of this title shall be as follows:
18 "PHYSICIAN AND DENTIST SCHEDULE
19 `'Director grade, $19,125 minimum to $22,935
20 maximum.
21 "Executive grade, $17,835 minimum to $22,595
22 maximum.
23 "Chief grade, $16,620 minimum to $21,615 maximum.
24 "Senior grade, $14,310 minimum to $18,585 maximum.
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1 "Intermediate grade,
maximum.
56
X12,190 minimum to $15,835
3 "Full grade, $10,270 minimum to $13,375 maximum.
4 "Associate grade, $8,580 minimum to $11,145
nlaxilnulll.
6 "NURSE SCTTEI)TJLE
7 "Assistant director grade, $14,310 minimum to $18,-
8 585 maximum.
9 "Chief grade $12,190 minimum to $15,835 ma-ximmm.
"Senior grade, $10,270 minimum to $13,375 maximum.
"Intermediate grade, $8,580 minimum to $11,145 max.-
imam.
"Full grade, $7,095 minimum to $9,210 maximum.
"Associate grade, $6,115 minimum to $7,960 maxi-
mum.
"Junior grade, $5,235 minimum to $6,810 maximum.
(b) No person may hold the director grade unless he
is serving as a, director of a hospital, domiciliary, center, or
19 outpatient clinic (independent) . No person may hold the
20 executive grade unless he holds the position of chief of staff
21 at a hospital, center, or outpatient clinic (independent) , or
22 the position of clinic director, outpatient clinic, or compara-
23 ble position."
24 SEC. 403. (a) Section 4108 of such title 38 which
25 formerly prescribed the maximum amount of pay and allow-
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1 anees for medical, surgical, or dental specialists of the De-
2 partment of Medicine and Surgery of the Veterans'
3 Adniiuistration is amended to read as follows:
4 "? 4108. Administration
5
"Notwithstanding any law, Executive order, or regula-
6 tion, the Administrator shall prescribe by regulation the
7 hours and conditions of employment and leaves of absence
8 of physicians, dentists, and nurses.".
9 (b) The table of contents of chapter 73 of such title 38
10 is amended by striking out
"4108. Specialist ratings."
11 and inserting in lieu thereof
"4108. Administration."
12 SFc. 404. Section 4111 (b) of such title 38, relating to
13 the annual salary of certain individuals serving as director
14 of a hospital, domiciliary, or center, is amended to read as
15 follows :
16 "
(b) Notwithstanding any other provision of law, the
17 per annum salary rate of each individual serving as a direc-
18 for of a. hospital, domiciliary, or center who is not a physi-
19 cian in the medical service shall not be less than the rate of
20 salary which lie would receive tinder section 4107 of this
21 title if his service as a director of a hospital, domiciliary, or
22 center had been service as a physician in the director grade.
23 "This subsection shall not affect the allocation of any
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1 position of director of a hospital, domiciliary, or center to
2 any grade of the General Schedule of the Classification Act
3 of 1949, except with respect to changes in rate of salary pur-
4 suant to the preceding sentence, and shall not affect the
5 applicability of the Performance Rating Act of 1950 to any
6 individual."
7 SEC. 405. Except as otherwise expressly provided, this
8 title shall become effective on the first day of the first pay
9 period which begins on or after January 1, 1963.
10 TITLE V-THE FOREIGN SERVICE ACT OF 1946
11 SHORT TITLE
12 SEC. 501. This title may be cited as the "Foreign Service
13 Salary Reform Act of 1962".
FOREIGN SERVICE OFFICERS
SEC. 502. The second, third, and fourth sentences of sec-
tion 412 of the Foreign Service Act of 1946, as amended
(22 U.S.C. 867) , are amended to read as follows : "Effec-
tive on the first day of the first pay period beginning on or
after the following dates, the per annum salaries of career
ambassador and career minister will be:
"January 1,
1963
January 1,
1964
January 1,
1965
----------------------------------------------
Career ambassador--
$23.000
$26, 000
$28, 000
-
Career minister-------
22,245
25,150
27, 290
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1 "On the first day of the first pay period which begins on
2 or after January 1, 1963, the per annum salaries of Foreign
3 Service officers within each of the other classes shall be as
4 follows :
'Class 1-----------------------------
$19,580
$20.235
----------
----------
----------
----------
----------
Class 2______________________________
16,115
16,650
$17,185
$17,720
$18,255
$18,790
$19,325
Class 3______________________________
13,275
13,715
14,155
14,595
15,035
15,475
15,915
Class 4______________________________
10,965
11,330
11,695
12,060
12,425
12,790
13,155
Class 5______________________________
9,115
9,420
9,725
10,030
10,335
10,640
10,945
Class 6___ __________________
7,645
7,900
8,155
8,410
8,665
8,920
9,175
Class 7______________________________
6,475
6,690
6,905
7,120
7,335
7,550
7,765
Class 8______________________________
6,540
5,725
5,910
6,095
6,280
6,465
6,650
5 "On the first day of the first pay period which begins
6 on or after January 1, 1964, the per annum salaries of
7 Foreign Service officers within each of the other classes shall
8 be as follows :
"Class 1-------------------- ---------
$21,535
$22, 250
----------
----------
----------
Class 2-----------------------------
17,495
18, 075
$18,655
$19,235
$19, 815
$20,395
$20,075
Class 3-----------------------------
14, 245
14, 720
15, 195
15, 670
16, 145
16,620
17, 095
Class 4------------------------------
11, 670
12, 060
12, 450
12, 840
13,230
13,620
14, 010
Class 5------------------------------
9,625
9,945
10, 265
10, 585
10, 905
11,225
11, 545
Class 6-----------------------------
8, 000
8, 265
8, &30
8, 795
9,060
9,325
9,590
Class 7------------------------------
6,705
6, 930
7, 155
7,380
7,605
7,830
8,055
Class 8----------------------------
5, 695
5, 885
6, 075
6,265
6,C55
6, 645
6,835
9 "On the first day of the first pay period which begins
10 on or after January 1, 1965, the per annum salaries of
11 Foreign Service officers within each of the other classes shall
12 be as follows :
" Class 1------------------------------
$22,910
$23,675
-
'
Class 2______________________________
18, 500
19,115
$19,730
$20,345
$20,960
$21,575
$22,190
Class 3______________________________
14,970
15.470
15,970
16,470
16,970
17,470
17,970
Class 4______________________________
12,190
12.595
13,000
13,405
13,810
14,215
14.620
Class 5_______________
9,970
10,305
10,640
10,975
11,310
11,645
11,980
Class 6______________________________
8,240
8,515
8,790
9,065
9,340
9,615
9.890
Class 7------------------------------
6,870
7,100
7,330
7.560
7.790
8.020
8,250
Class 8______________________________
5,795
5,990
6,185
6,380
6,575
6,770
6,965".
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1 FOREIGN SERVICE STAFF OFFICERS AND EMPLOYEES
2 SEC. 503. Sec. 415 of such Act is amended to read as
3 follows:
4 "SEC. 415. (a) Effective on the first day of the first
5 pay period which begins on or after January 1, 1963, there
6 shall be ten classes of Foreign Service staff officers and em-
7 ployees, referred to hereafter as staff officers and employees
8 and the per annum salaries of staff officers and employees
9 within each class shall be as follows :
"
$13
275
715
$13
155
$14
$14,595
$15,035
$15,475
$15,915
$16,355
$16,795
$17,235
Class 1__
Class
,
10,965
,
11,330
,
11,695
12,060
030
10
12,425
335
10
12,790
640
10
13,155
945
10
13,520
250
11
13,885
11,555
14,250
11,860
Class 3
9,115
645
7
9,420
900
7
9,725
155
8
,
8,410
,
8,665
,
8,920
,
9,175
,
9,430
9,685
9,940
Class 4
Class 5__________________
,
6,910
,
7,140
,
7,370
7,600
7,830
065
7
8,060
275
7
8,290
485
7
8,520
695
7
8,750
905
7
8,98
8,11
Class 6________________
6,225
5
610
6,435
5
800
6,645
5
990
6,855
6,180
,
6,370
,
6,560
,
6,750
,
6,940
,
7,130
7,32
Class 7__________________
Class S__________________
,
5,060
,
5,230
,
5,400
5,570
5,740
75
5,910
325
5
6,080
475
5
6,250
625
5
6,420
775
5
6,59
93
5
Class 9__________________
4,575
4
110
4,725
4
250
4,875
390
4
5,025
4,530
5,1
4,670
,
4,825
,
4,980
,
5,135
,
5,290
,
5, 44
Class 10________________
,
,
,
10 "On the first day of the first pay period which begins
11 on or after January 1, 1964, the per annum salaries of
12 staff officers and employees within each class shall be as
13 follows:
Class 2___________________
Class 3___________________
Class 4__________________
Class 5_______-----___---
Class l___________________ class 9-------------------
Class 6_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Class 7-------------------
(`lass 8_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
Class 10__________________
245
$14
720
$14
195
$15
$15,670
$16,145
$16,620
$17,095
$17,570
$18,045
$18,520
,
11,670
,
12,060
,
12,450
12,840
13,230
13,620
14,010
545
11
14,400
11
865
14,790
185
12
15, 180
12
505
9,625
000
8
9,945
265
8
10,265
530
8
10,585
795
8
10,905
9
060
11,225
9,325
,
9,590
,
9,855
,
10,120
,
10,385
,
170
7
,
7,410
,
7,650
,
7,890
,
8,130
8,370
8,610
8,850
9,090
9,330
,
6, 435
6,650
6, 865
7, 080
7,295
550
6
7, 510
745
6
7, 725
940
6
7, 940
135
7
8, 155
7
330
8, 370
7,525
5,770
5
180
5,965
355
5
6,160
530
5
6,355
5, 705
,
5,880
,
6, 055
,
6,230
,
6, 405
,
6,580
6, 755
,
4655
,
,
4,810
,
4,965
5,120
5,275
5,430
4
875
5,585
020
5
5,740
5
175
5,895
5
330
6,050
485
5
4
,175
4,315
4,455
4,595
4,735
,
,
,
,
,
14 "On the first day of the first pay period which begins
15 on or after January 1, 1965, the per annum salaries of
0
5
0
0
0
5
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1 staff officers and employees within each class shall be as
2 follows:
Class 1
$14,970
015,470
$15,970
$16,470
$16,970
$17,470
$17,970
$18
470
818
970
$19
471
Class 2
C lass
3
12,190
9
970
12,595
10
305
13,000
10
640
13,405
10
975
13,810
11
310
14,215
11
645
14,620
11
980
,
15,025
12
,
15,430
,
15,83E
Class 4
,
8,240
,
8,515
,
8,790
,
9,065
,
9,340
,
9,615
,
9,890
,315
10,165
12,650
10
440
12,981
10
71E
Class 5
Class 6
7,360
7,605
7,850
8,095
8,340
8,585
8,830
9,075
,
9,320
,
9,56;
Class 7
6,590
6,800
7, 020
7, 240
7,460
7,680
7,900
8,120
8, 340
8,56C
Class B
5,890
6,035
6,280
6,475
6,670
6,865
7,060
7,255
7,450
7,64E
Class 9
5,270
5,445
5,620
5,795
5,970
6,145
6,320
6,495
6,670
6,841
Class 10
4,715
4,215
4,870
4,355
5,025
4,495
5,180
4,635
5,335
4
775
5,490
4
915
5,645
5
060
5,800
5
215
5,955
5
370
6,116
5
525
,
,
,
,
,
,
3 "SEC. 415. (b) Notwithstanding the provisions of para-
4 graph (a) of this section, the Secretary may, under such
5 regulations as he may prescribe, classify positions at levels
6 below class 10, and establish salary rates therefor at lower
7 rates than those prescribed by this section, for American em-
8 ployees recruited abroad who are not available or are not
9 qualified for transfer to another post and who perform duties
10 of a more routine nature than are generally performed at
11 the class 10 level."
12 SEC. 504. Foreign Service officers, Reserve officers, and
13 Foreign Service staff officers and employees who are entitled
14 to receive basic compensation immediately prior to the effec-
15 tive date of this title at one of the rates provided by section
16 412 or 415 of the Foreign Service Act of 1946, shall receive
17 basic compensation on and after the effective date of this
18 title at the rate of their class determined to be appropriate
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1 by the Secretary of State : Provided, That staff officers and
2 employees shall be transferred to the new staff classes estab-
3 lished by this act as follows :
Present class under section Corresponding new class un-
415 of the Foreign Service der section 415 of the For-
Act of 1946 eign Service Act of 1946, as
amended
FSS- 1---------------------------------------------------- FSS- 1
FSS- 2---------------------------------------------------- FSS- 1
FSS- 3---------------------------------------------------- FSS- 2
FSS- 4---------------------------------------------------- FSS- 2
FSS- 5---------------------------------------------------- FSS- 3
FSS- 6---------------------------------------------------- FSS- 3
FSS- 7---------------------------------------------------- FSS- 4
FSS- 8---------------------------------------------------- FSS- 5
FSS- 9---------------------------------------------------- FSS- 6
FSS-10---------------------------------------------------- FSS- 7
FSS-11---------------------------------------------------- FSS- 8
FSS-12---------------------------------------------------- FSS- 9
FSS-13---------------------------------------------------- FSS-10
FSS-14 and below------------------------------------------ (1)
1 Remain at present class and salary rate until revised pursuant to new section
415(b).
4 CONFORMING AMENDMENTS
5 SEC. 505. The heading of section 642 of the Foreign
6 Service Act of 1946 is amended by deleting the words "and
7 longevity" and section 642 is amended by deleting " (a) "
8 in the first paragraph and by deleting subsection (b) in
9 its entirety.
10 EFFECTIVE DATE
11 SEC. 506. Except as otherwise expressly provided, this
12 title shall become effective on the first day of the first pay
13 period which begins on or after January 1, 1963.
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1 TITLE VI-REPEAL OF SPECIFIC STATUTORY
2 SALARIES
3 SEC. 601. The following provisions of law are hereby
4 repealed:
5 (1) That part of the first sentence of section 105 (a)
of the Civil Rights Act.of 1957 (71 Stat. 636; 42 U.S.C.
1975d (a) ) , relating to the annual salary of the staff director
for such Commission, which reads: "and who shall receive
compensation at a rate, to be fixed by the President, not
in excess of $22,500 a year".
(2) That part of the first sentence of section 3 of the
Area Redevelopment Act (75 Stat. 48; - U.S.C. -),
relating to the annual salary of the Area Redevelopment
Administrator in the Department of Commerce, which reads :
"who shall receive compensation at a rate equal to that
received by Assistant Secretaries of Commerce".
(3) The second sentence of section 24 of the Arms
Control and Disarmament Act (75 Stat. 632; - U.S.C.
-) , relating to the annual salaries of the four Assistant Di-
rectors of such Agency, which reads : "They shall receive
compensation at the rate of $20,000 per annum.".,
(4) Section 8 of the Food Additives Amendment of
1958 (72 Stat. 1789; 5 U.S.C. 2205, note) fixing the
24 annual salary of the Commissioner of Food and Drugs at
25 $20,000 per annum.
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1 (5) The last proviso in the paragraph under the head-
2 ing "IMMIGRATION AND NATURALIZATION SERVICE" and
3 under the subheading "SALAR.IES AND EXPENSES" in the
4 Department of Justice Appropriation Act, 1959 (72 Stat.
5 251; 5 U.S.C. 2206, note) , relating to the annual salary of
6 the Commissioner of the Immigration and Naturalization
7 Service, which reads: ": Provided further, That, hereafter,
8 the compensation of the Commissioner of the Immigration
9 and Naturalization Service shall be $20,000 per annum".
10 (6) The second paragraph in section 3 of title 35 of the
11 United States Code, relating to the annual salaries of certain
12 officers and employees in the Patent Office, Department of
13 Commerce which reads: "The annual rate of compensation
14 of the Commissioner shall be $20,000."
15 (7) That part of section 201 (f) of the National Aero-
16 nautics and Space Act of 1958 (72 Stat. 428; 42 U.S.C.
17 2471 (f) ) , relating to the annual salaries of a civilian execu-
18 tive secretary and seven other persons in the National Aero-
19 nautics and Space Council, which reads : "and shall receive
20 compensation at the rate of $20,000 a year" and in the
21 second sentence, "or the Classification Act of 1949 and
22 compensated at the rate of not more than $19,000 a year".
23 (8) The last sentence of section 624 (e) (1) of the
24 Foreign Assistanee Act of 1961 (75 Stet. 447 ; - U.S.C. -)
25 fixing the compensation of certain officials in the Department
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65
of State, which reads : "The Inspector General, Foreign
Assistance, shall receive compensation at the rate of $20,000
annually; the Deputy Inspector General, Foreign Assistance,
shall receive compensation at the rate of $19,500 annually,
and each Assistant Inspector General, Foreign Assistance,
shall receive compensation at the rate of $19,000 annually.;'.
(9) That part of section 201 of Reorganization Plan
No. 7, effective August 12, 1961, relating to the annual
salary of the Maritime Administrator in the Department of
Commerce, which reads : "shall receive a salary at the rate
of $20,000 per annum,".
(10) That part of section 202 of the Act of July 1,
1960 (74 Stat. 305; 5 U.S.C. 623g), relating to the annual
salary of the Administrative Assistant Secretary of Health,
Education, and Welfare, which reads: ", and whose annual
rate of basic compensation shall be $19,000". Insert "and"
before clause which begins "who shall perform".
(11) Section 308 of title 39 of the United States Code
fixing the annual rate of basic compensation of the position
of Chief Postal Inspector in the Post Office Department at
$19,000.
(12) That part of the first sentence of section 4 of the
International Travel Act of 1961 (75 Stat. 130; -- U.S.C.
24 ...._)
relating to the annual salary of the Director of the
25 United States Travel Service in the Department of Com-
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1 merce, which reads : "who shall be compensated at the rate
2 of $19,000 per annum,".
3 (13) Section 14 (b) of the Federal Employees Health
4 Benefits Act of 1959 (73 Stat. 716; 5 U.S.C. 3013 (b) )',
5 which - fixes the compensation of the Executive Director of
the United States Civil Service Commission at $19,000 per
7 annum.
(14) That part of the first sentence of section 107 (c)
of the Renegotiation Act of 1951, as amended (73 Stat. 211;
50 U.S.C. App., 1217 (c)-), relating to the annual salary
of the General Counsel of the Renegotiation Board, which
12 ' :reads :
i3
and shall receive compensation at the rate of
$19,000 per annum".
(15) In section 303 (a) of title 23 of the United States-
Code,--
(A) that part, of the second sentence, relating to
the annual salary of the Federal Highway Administra-
tor in the Department of Commerce, which reads:
"shall receive basic compensation at the rate prescribed
21
22
23?
24
by law for ' Assistant Secretaries of executive depart-
(B) the last 'sentence; relating to t
of :the Deputy Federal Highway Administrator in such
Department, which reads: "Tlie Deputy Federal ZIigh-
wayAdrni listrator shall` receiv"basie-compensation at
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67
a rate $1,000 less than the rate provided for the Federal
Highway Administrator.".
(16) That part of section 3,02 (f) of the Federal Avi--
tion Act of 1958, as amended (75 Stat. 791; .49 U:S.C.
1343 (d)) , relating to the annual salary of certain officers,
employees, attorneys, and agents in the Federal Aviation
Agency, which reads: ", except that the Administrator may
fix the compensation for not more than twenty-three 'posi-
tions at rates not to exceed $19,500 per annum".
(17) That part of section 2 (d) in Reorganization Plan
Numbered I of 1958 (72 Stat. 1799; 75 Stat. 630; 23:
F.R. 4991), relating to the annual salaries of three Assist
ant Directors of such Office, which reads: "shall receive com
pensation at the rate now or hereafter prescribed by laws
for assistant secretaries of executive departments,".
(18) That part of the Second Supplemental Appropria
tion Act, 1961, under the heading "DEPARTMENT OF
THE INTERIOR" and under the caption "RuRAn of
RECLAMATION" and the subheading "ADMINISTRATIVE
PROVISIONS" (74 Stat. 628; Public Law 86-722) relating
to the annual salary of the present incumbent of the position
of Commissioner of the Bureau of Reclamation, which reads:
"After August 31, 1960, the position of Commis
sioner of the Bureau of Reclamation shall have the
same annual "rate of compensation ' as that provided for
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1 position listed in title 5, United States Code, section
2 2205 (b) , so long as held by the present incumbent.".
3 (19) That part of the Public Works Appropriation Act,
4 1962, under the heading "DEPARTMENT OF THE IN-
5 TERIOR" and under the caption "BONNEVILLE POWER
6 ADMINISTRATION" and the subheading "CONSTRUCTION"
7 (75 Stat. 728; Public Law 87-330), relating to the annual
8 salary of the present incumbent of the position of Adminis-
9 trator, Bonneville Power Administration, which reads:
10 "After October 1, 1961, the position of Adminis-
11 trator, Bonneville Power Administration, shall have the
12 same annual rate of compensation as that provided for
13 positions listed in section 2205 (b) of title 5, United
14 States Code, so long as held by the present incumbent.".
15 (20) That part of section 205 of the Public Works
16 Appropriation Act, 1958 (71 Stat. 423; Public Law
17 85-167), relating to the annual salary of the present in-
18 cumbent of the position of Administrator of the Southwestern
Power Administration in the Department of the Interior,
20 which reads : "the salary of the Administrator of the South-
21 western Power Administration shall be the same as the sal-
22 ary of the Administrator of the Bonneville Power Adminis-
23 tration, so long as held by the present incumbent;".
24 (21) The proviso in the first paragraph under-the head
25, ing "FEDERAL BUREAU OF INVESTIGATION" and under the
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1 subheading "SALARIES AND EXPENSES" in the Department
2 of Justice Appropriation Act, 1962 (75 Stat. 552; Public
3 Law 87-264) , relating to the annual salary of the present
4 incumbent of the position of Director of the Federal Bureau
5 of Investigation, which reads: ": Provided, That the com-
6 pensation of the Director of the Bureau shall be $22,000 per
7 annum so long as the position is held by the present incum-
8 bent".
9 (22) That part of section 7801 (b) (2) of the Internal
10 Revenue Code of 1954, as amended, relating to the annual
11 salary of the Assistant General Counsel of the Treasury De-
12 partment, which reads : "and shall receive basic compensa-
13 tion at the annual rate of $19,000".
14 SEC. 602. (a) Section 104 (a) of the Federal Executive
15 Pay Act of 1956, as amended (5 U.S.C. 2203 (a.) ) provid-
16 ing annual compensation of $21,000 for certain positions,
17 is amended by striking out the following paragraphs:
18 " (1) Commissioner of Internal ]Revenue."; and
19 " (3) Director of the Federal Bureau of Investiga-
20 tion.".
21 (b) Section 104 (b) of such Act (5 U.S.C. 2203 (b) `)
22- which provides annual compensation of $22,000 for the
23 present incumbent of the position of Director of the Federal
24- 'Bureau of Investigation, is hereby repealed.
25 (c) Section 106 (a) of such Act (5 U.S.C. 2205 (a) )-
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1 which provides annual compensation of $20,000 for certain
2 positions, is amended by striking out the following para-
3 graphs :
4 " (1) Administrator, Bureau of Security and Con-
5 solar Affairs, Department of State.";
6 " (3) Administrator, Commodity Stabilization Serv-
7 ice." ;
" (4) Administrator of the Rural Electrification
Administration.";
" (7) Administrator, Wage and Hour and Public
11 Contracts Division, Department of Labor.";
12 " (8) Archivist of the United States.";
13 " (22) Associate Director of the Federal Bureau of
14 Investigation.";
15 " (23) Chairman of the Military Liaison Commit-
16 tee to the Atomic Energy Commission, Department ' of
17 Defense.";
18 " (24) Commissioner, Community Facilities, Hous-
19 ing and Home Finance Agency.";
20 " (25) Commissioner, Federal Housing Administra-
21 tion.";
22 " (26) Commissioner, Public Housing Administra-
23 . tion." ;
24 " (27)- Commissioner, Urban Renewal Administra-
25 tion.";
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1 " (32) Director of the Bureau of Prisons." ;
2 " (39) President of the Federal National Mortgage
3 Association.";
4 " (41) Special 1.sistant to the -Secretary (Health
5 and Medical Affairs) , Department of Health, Education,
6 and Welfare.";
7 (46) Commissioner of Social Security." ;
8 " (47) Commissioner of Education.'';
9 " (48) General Counsel, General Accounting Of-
10 fice.";
11 " (48) General Counsel, United States Arms Con-
12 trol and Disarmament Agency."; and
13 " (49) Public Affairs Advisor, United States Arms
14 Control and Disarmament Agency.".
15 (d) Section 106 (b) of such Act (5 U.S.C. 2205 (b))
16 which provides annual compensation of $19,000 for certain
17 positions, is amended by striking out% the following par-a-
18 graphs :
19 " (2) Assistant to the Director of the Federal
20 Bureau of Investigation.";
21 " (10) Deputy Commissioner of the Internal Reve7.
22 nue Service.";
" (11) Chief Counsel of the Internal. Revenue
Service." ;
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1 " (12) Administrative Assistant Attorney Gen-
2 eral." ;
3 " (13) Administrative Assistant Secretary of the
4 Interior.";
5 " (14) Administrative Assistant Secretary of Agri-
6 culture.";
7 " (15) Administrative Assistant Secretary of
8 Labor.";
9 " (16) Administrative Assistant Secretary of the
10 Treasury.";
11 " (17) Administrator, Farmers Home Administra-
12 tion.";
13 " (18) Administrator, Soil Conservation Service,
14 Department of Agriculture.";
15 " (19) Chief Forester of the Forest Service, De-
16 partment of Agriculture.";
17 " (20) Commissioner of Customs.";
18 " (21) Manager, Federal Crop Insurance Corpora-
19 tion, Department of Agriculture."; and
20 " (22) Deputy Administrator, Small Business Ad-
21 ministration (4) .".
22 (e) The Atomic Energy Act of 1954, as amended, is
23 further amended as follows :
24 (1) In the last sentence of section 24a. (71 Stat:
25 612; 42 U.S.C. 2034 (a) ) , relating to the annual salary
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1 of the (xciieral Manager of such Commission, by striking
2 out that part which reads : ", but not in excess of
3 $22,000 per annum";
4 (2) In the last sentence of section 24b. (71 Stat.
5 612; 42 U.S.C. 2034 (b) ) , relating to the annual salary
6 of the Deputy General Manager of such Commission,
7 by striking out that part which reads: ", but not in
8 excess of $20,500 per annum";.
9 (3) In the last sentence of section 24c. (71 Sta.
10 612; 42 U.S.C. 2034 (c) relating to the annual
11 salaries of the Assistant General Managers (or their
21
22
23
24
equivalents) of such Commission; by striking out that
part which reads : ", but not in excess of $20,000 per
annum" ;
(4) In the second sentence of section 25a. (68
Stat. 927, 71 Sta.t. 612; 42 U.S.C. 2035 (a)) , relating
to the annual salaries of certain division directors in
such Commission, by striking out that part which reads :
", but not in excess of $19,000 per annum";
(5) In section 25b. (71 Stat. 612; 42 U.S.C.
-2035 (b) , relating to the annual salary' of the General
Counsel of such Commission, by striking out that part
which reads: ", but not in excess of $19,500' per
annum" ;
(6) In the, first sentence of section 25c. (68 Stat.
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1 927, 71 Stat. 612; 42 U.S.C. 2035 (c) ), relating to
2 the annual salary of the Director of the Inspection Divi-
3 sion in such Commission, by striking out that part
which reads: ", but not in excess of $19,000 per
5 annum" ;
6 (7) In the last sentence of section 25d. (71 Stat.
7 612; 42 U.S.C. 2035 (d) ) , relating to the annual
8 salaries of certain executive management positions in
9 such Commission, by striking out that part which reads :
10 ", but not in excess of $19,000 per annuun"; and
11 (8) In the second sentence of section 28 (68 Stmt.
12 926; 42 U.S.C. 2038), relating to the compensation of
13 the active member of the Aimed Forces serving as
14 Director of the Division of Military Application in such
15 Commission, by striking out the words "in section 25"
16 and inserting in lieu thereof "under section 25".
17 (f) Section 2 of the Act of July 30, 1946, as amended
18 (60 Stat. 712, 70 Stmt. 740; 22 U.S.C. 287n), relating
19 to the compensation of United States representatives and
20 alternates to the United Nations Educational, Scientific, and
21 Cultural Organization, is further amended by striking out
22 that part of the third sentence which reads: "at such rates,
23 not to exceed $15,000 per annum," and inserting in lieu
24 thereof "at one of the rates of pay provided by section 412
25 of the Foreign Service Act of 1946, as amended,".
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1 SEC. 603. Except as provided by subsections (e) and
2 (f) of section 602 of this title, each position specifically
3 referred to in or covered by any amendment made by sec-
4 tions 601 and 602 of this title shall be placed in the appropri-
5 ate ,rade of the General Schedule of the Classification Act
6 of 1949, as amended, in accordance with the provisions of
7 such Act.
8 SAVINGS PROVISIONS
9 SEC. 604. (a) The changes in existing law made by this
10 title shall not affect any position existing immediately prior
11 to the effective date of any such changes in existing law,
12 the compensation attached to such position, and any incum-
13 bent thereof, his appointment thereto, and his entitlement
14 to receive the compensation attached thereto, until appro-
15 priate action is taken in accordance with this title.
16 (b) The incumbent of each such position immediately
17 prior to the effective date of this title shall continue to receive
18 the rate of basic compensation which he was receiving ini-
19 niediately prior to such effective date until lie leaves such
20 position or until lie is entitled to receive compensation at a
21 higher rate in accordance with law. When such incumbent
22 leaves such position, the rate of basic compensation of each
23 subsequent appointee to such position shall be determined
24 in accordance with the Classification Act of 1949, as amend-
25 ed, or other appropriate law.
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76
EFFECTIVE DATE
SEC. 605. The provisions of this title shall become
effective on the first day of the first pay period which begins
on or after January 1, 1963.
TITLE VII-MISCELLANEOUS PROVISIONS
REVISION OF SALARY LIMITATIONS FOR CERTAIN SCIEN-
TIFIC AND PROFESSIONAL POSITIONS
Si.c. 701. Section 2 (b) of the Act of August 1, 1947
(Public Law 313, Eightieth Congress, As amended (75
Stat. 789; 5 U.S.C. 1161-1163)), relating to the rates 'of
compensation of certain scientific or professional positions,
is amended to read as follows:
" (h) The per annum rates of compensation for posi-
tions established pursuant to the provisions of this Act shall
not be less than the minimum rate of grade 16 of the General
Schedule of the Classification Act of 1949, as amended, not
more than the highest rate of grade 18 of the General Sched-
ule of such Act.".
SEC. 702. Section 1581 (b) of title 10 of the United
States Code, relating to the rates of compensation of certai
scientific or professional positions in the Department of
Defense, is amended to read as follows:
(b) Subject to the Civil Service Commission's ap-
proval as to' rates, the Secretary may fix the compensation for
positions established tinder subsection (a) . However, the
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1 per annum compensation may not be less than the minimum
2 rate of grade 16 of the General Schedule of the Classification
3 Act of 1949, as amended, nor more than the highest rate
4 of grade 18 of the General Schedule of such Act.".
5 SEC. 703. The proviso contained in the first sentence
6 of section 208 (g) of the Public Health Service Act, as
7 amended (42 U.S.C. 210 (g) ) , relating to the rates of
8 compensation of certain scientific, professional, and adminis-
9 trative personnel in the Public Health Service, is amended to
10 read as follows : " : Provided, That the rates of compensation
11 for positions established pursuant to the provisions of this
12 subsection shall not be less than the minimum rate of grade
13 16 of the General Schedule of the Classification Act of 1949,
14 as amended, nor more than the highest rate of grade 18 of
15 the General Schedule of such Act, and.shall be subject to the
16 approval of the Civil Service Commission.".
17 SEc. 704. The proviso contained in the second sentence
18 of section 12 of the Act of May 29, 1884 (62. Stat. 198 as
19 amended and supplemented; 21 U.S.C. 113a) , authorizing
20 the Secretary of Agriculture to employ and fix the compen-
21 cation of technical experts and scientists for research and
22 study of foot-and-mouth. disease and other animal diseases, is
2~ amended to read as follows: ": Provided, That the number
24~,.,so employed shall not exceed five and that the maximum
25; i , compensation for each shall not exceed the highest rate of
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78
grade 18 of the General Schedule of the Classification Act
of 1949, as amended.".
SEC. 705. Section 203 (b) (2) of the National Aero-
nautics and Space Act of 1958 (72 Stat. 429,: 42 U.S.C.
2473 (b) (2) ) , as amended, authorizing the Administrator
of the National Aeronautics and Space Administration to
establish and fix the compensation of four hundred and
twenty-five scientific, engineering, and administrative posi-
tions, is amended by striking out, in the second sentence,
", except that (A) to the extent the Administrator deems
such action necessary to the discharge of his responsibilities,
lie may appoint and fix the compensation (up to a limit
of $19,000 a year, or np to a limit of $21,000 a year for
a maximum of thirty positions) of" and by inserting in lieu
thereof ", except that (A) to the extent the Administrator
deems such action necessary to the discharge of his responsi-
bilities, he may appoint and fix the compensation (at not to
exceed the highest rate of grade 18 of the General Schedule
of the Classification Act of 1949, as amended, or, for a maxi-
mum of thirty positions, up to the highest rate of grade 18
of the General Schedule of the Classification Act,, which will
he in effect on or after January 1, 1965) of".
S,C. 706. rl'hat part of the proviso in section 1:61d. of
the Atomic Energy Act of 1954, as amended (71 Stat.
613; 42 U.S.C. 2201), fixing a limit of $19,000 on the
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79
compensation of scientific and technical personnel, is amended
2 by striking out the words "up to a, limit of $19,000) " and
3 inserting in lieu thereof "up to a limit of the highest rate of
4 grade 18 of the General Schedule of the Classification Act of
5 1949, as amended) ".
6 EFFECTIVE DATE
7 SEC. 707. The foregoing provisions of this title shall
8 become effective on the first day of the first pay period
9 which begins on or after January 1, 1960".
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87TH CONGRESS
2D SESSION H. R. 10480
A BILL
To reform the major statutory salary systems
of the Federal Government; to establish ap-
propriate relationships among them; to
adopt and apply the principle of Govern-
ment-private enterprise salary comparabil-
ity; and for other purposes.
By Mr. MumRAY
FEBRUARY 2S, 1962
Referred to the Committee on Post Office and Civil
Service
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[COMMITTEE ]PRINT]
STATEMENT OF PURPOSE AND JUSTIFICATION
AND SECTION-BY-SECTION ANALYSIS OF THE
LEGISLATION REQUESTED BY THE PRESIDENT
OF THE UNITED STATES TO REFORM THE
MAJOR FEDERAL STATUTORY SALARY SYSTEMS
COMMITTEE ON POST OFFICE AND
CIVIL SERVICE
HOUSE OF REPRESENTATIVES
U.S. GOVERNMENT PRINTING OFFICE
80347 WASHINGTON : 1962
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TOM MURRAY,
JAMES H. MORRISON, Louisiana
JAMES C. DAVIS, Georgia
KATHRYN E. GRANAIHAN, Pennsylvania
THADDEUS J. DULSKI, New York
DAVID N. HENDERSON, North Carolina
ARNOLD OLSEN, Montana
JOSEPH P. ADDABBO, New York
RICI'ARD H. ICOHRD, Missouri
CATHERINE D. NORRELL, Arkansas
MORRIS K. UDALL, Arizona
DOMINICK V. DANIELS, New Jersey
LINDLEY BECKWORTII, Texas
WALTER H, MOELLER, Ohio
Tennessee, Chairman
ROBERT J. CORBETT, Pennsylvania
H. R. GROSS, Iowa
JOEL T. BROYH.ILL, Virginia
AUGUST E. JOHANSEN, Michigan
GLENN CUNNINGI` AM, Nebraska
GEORGE M. WALLHAUSER, New Jersey
ROBERT R. BARRY, New York
KATHARINE ST. GEORGE, New York
JOBN R. ROUSSELOT, California
EDWARD J. DERWINSKI, Illinois
ROBERT F. ELLSWORTH, Kansas
TOM MURRAY, Chairman.
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This print contains a "Statement of Purpose and Justification"
and a section-by-section analysis of the Federal Salary Reform Act
of 1962, which is the President's proposal to reform the major statutory
salary systems of the Federal Government.
The President's proposal is directed to the establishment of appro-
priate relationships between salaries paid for comparable skills and
responsibilities in the Government and in private enterprise, based
upon the Bureau of Labor Statistics studies for which the Congress
appropriated $600,000.
 FEDERAL SALARY REFORM ACT OF 1962
Draft bill to reform the major statutory salary systems of the Federal Govern-
ment, to establish appropriate relationships among them, to adopt and apply
the principle of Government-private enterprise salary comparability and for
other purposes
STATEMENT OF PURPOSE AND JUSTIFICATION
The draft bill reforms four Federal statutory systems: those for
employees paid under the Classification Act, the Postal Field Service
Compensation Act, and the Foreign Service Act, and for physicians,
dentists, and nurses of the Department of Medicine and Surgery of
the Veterans' Administration. In addition, the bill brings into the
reformed salary system, at newly established levels, a few high-
ranking jobs below the agency-head level which are now compensated
under the Federal Executive Pay Act or other authorities. To avoid
undue impact at any one time and provide an orderly transition, the
bill would bring salaries to their proper levels gradually, over a 3-
year period.
REQUISITES OF A FEDERAL PAY SYSTEM
The functions of a public salary system are to control payroll
expenditures, with equity to both the employee and the taxpayer,
and to support recruitment and retention of the high-quality personnel
required to carry out Government programs. To meet its respon-
sibility to the public, the salary system must pay enough to permit
competent staffing in order not to endanger the national security
nor to degrade public service; but it must not pay more than is
necessary for this purpose and for equity to the employee. To
assure fair treatment for the public employee, the salary system
must assure equity among Federal employees and between Federal
employees and those in private employment. To be adaptable to
changing conditions and to stimulate peak performance, the system
must provide for executive discretion to meet individual and special
needs, to use pay for motivating employees, and to initiate general
adjustments as required.
These are the underlying objectives which this proposal is designed
to meet.
Statutory pay systems have failed to meet the needs of today's
Federal service. Absence of an accepted standard for Federal salaries
and a procedure for periodic review and adjustment, coupled with rigid
statutory rules of pay administration, deprive the systems of the
adaptability so essential in a period of rapidly changing conditions.
Major inequities exist between the Federal employee and his equals
throughout the national economy. Only in the very lowest grades
has Federal pay kept pace with average private enterprise rates. Com-
parison can now be made directly between private salaries and those
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2 FEDERAL STATUTORY SALARY SYSTEMS FEDERAL STATUTORY SALARY SYSTEMS 3
in the Classification Act, which has a broad occupational coverage of more than $22,000 and $27,500 for department heads. Thus, a
having many counterparts in private employment. Findings of the department head in New York State is paid 10 percent more than
Bureau of Labor Statistics National Survey of Professional, Admin- the head of a Cabinet department of the National Government.
istrative, Technical, and Clerical Pay reported in 1961 provide the Inequities have come about and have been compounded by past
data. This annual survey clearly shows that the greater the level of statutory pay raises. These raises over the years have acted to
difficulty and responsibility, the greater the gap between public and compress the pay spread from the lowest to the highest levels. In
private pay. From grade GS-4 upward, private salary averages con- 1928, the ratio of the highest Classification Act salary to the lowest
sistently exceed Federal salaries. At the lower professional levels of was 8.8 to 1. By 1945, it had fallen to 6.8 to 1, and today the ratio
GS-7 and GS-9, the difference is quite noticeable. For example: is 5.8 to 1. The pay increase of July 1945, demonstrates how this
has worked. Salaries were increased 20 percent on the first $1,200,
National average Classification Act rate range 10 percent on the next $3,400, and 5 percent on the remainder, This
rate in private
plan resulted in 20-percent raises at the lowest level and 8.9 percent
enterprise Grade Minimum Maximum
at the top. Consequently, the ratio of the highest to the lowest.
salary dropped from 7.5 to 1 down to 6.8 to 1.
$0, 648 GS-7 ____ _ $5,355 $6,345 Inequities exist within systems: for example, inadequate pay
7, 776 OS-9--- --- 6, 435 7, 425
distinctions between grade levels, inadequate within-grade pay ranges,
and inadequate pay spreads from entry to top career levels.
At the upper professional levels there is an even greater lag of Normal pay practice in a large corporation permits an employee
Federal salaries: beginning a professional or management career to look forward to a
salary of $35,000 to $40,000 a year if he reaches a level in the organi-
Classification Act rate range zation with responsibilities equivalent to those of GS-18 positions in
National average
the Federal service. The top of a pay range for a given level of work
rate in private
enterprise Grade Minimum Maximum
is 30 to 35 percent above the minimum rate for the work level; at
executive levels the range is more likely to be 50 percent. The better
$13, 362 152 GS GS--14 13 ._..._._. _ 12$10,,210 625 $11 13,,510 935
performers advance faster within the range than the merely average
15,
19, 348 OS-i5.._ _ 13,730 15,030
performers. An employee who receives a within-grade pay increase
generally has his salary advanced from 5 to 10 percent.
Differences between salaries for successive Classification Act grade
Further evidence of this trend was furnished by the Civil Service levels, for instance, are both inconsistent and inadequate. These
Commission's 1960 study of salaries paid in 21 large nationwide firms differences range from a low of 7.4 percent to a high of 18.8 percent.
for personnel, finance, research and development, law, and plant This is not a normal progression; there is no logic or pattern to be
management positions with responsibilities equivalent to those of found. Between grades GS-1 and GS-2, the difference in minimum
Federal positions in grades GS-16, 17, and 18. This study showed salaries is 9.9 percent. Between GS-2 and GS-3, the difference is
these serious disparities: 7.4 percent. GS-5 and GS-6 are 11.2 percent apart. GS-13 exceeds
GS-12 by 18.8 percent, but GS-17 exceeds GS-16 by only 8.4 percent.
Federal Government A similarly inconsistent condition exists with respect to the spread
21 firms, major between minimum and maximum salaries at various grade levels.
Grade Salary range salary clusters Including longevity rates, the top salary for GS-4 exceeds the GS-4
entry rate by 23.4 percent, but at GS-5 the difference is 34.2 percent.
GS-16._______$15,255-$16,295 $2).000-$30,000 At GS-11 the spread r percent, percent
GS17_ 16,530 17,570 27-WO- 37,500 , is 27.5 while at GS-15 it is 15.1
________ 18,500 32,500- 45,000 and at GS-17 is 7.3 percent. This contrasts with salary ranges in
industry, which are commonly from 30 to 50 percent of the beginning
Many State and local jurisdictions now have passed the Fsalary, with the widest ranges at the higher salary levels.
Government's pay rates. For example, California, Georgia, he Federal edora the salary spread from the entry professional or administrative
Michigan, New York, Ohio, and Pennsylvania all have career salaries by level moatdern n business the e st tanudcareer level at s GS-18 is beginning salary inadequate
higher than the highest Classification Act and other top statutory nrds. From~hi beginning , aFederfil
salaries. The same is true of Los Angeles City and County, Denver, employee can see an increase o1' 43, times for a lifetime professional or
Detroit, St. Louis, Sari Francisco, and Philadelphia. In cities with administrative career, if he is one to the relatively few who reaches
populations over 500,000, city managers average $22,950 and school the very top. His equals in private employment can expect to in-
superintendents average $25,869, about 25 and 40 percent, respec- crease their beginning salary o six t seven times without having to
tively, above the top Classification Ac ~ become cot or a r ~r,1 i 1 b'i or chairman of the board.
i 'v~ d For Relg~ se 003/03/28: CIA-RDP80E { a~r7i ~ft~~ Ri a the various Federal pay systems; for
Based on the findings of it private'donsuitmg firm, New York example, supervisors under the Classification Act system are some-
State revised its salary structure in 1961 to provide a top career salary times paid less thalr their subordinates who are under it wage board
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4 FEDERAL ST.TIJTO$X. SALARY SYSTEMS FEDERAL STATUTORY SALARY SYSTEMS 5
system. This comes about ; because of lack of coordination between work level, the survey is so designed that the occupational rates at a
the systems. Wage board rates are, based on,.and move freely with, given work level can be combined into a single rate representing the
prevailing rates in industry while pay levels under the Classification general level of private enterprise salaries for a work level equivalent
Act and other systems can be adjusted only by legislative action and to a Classification Act grade.
lack a fixed standard to govern the time and amount of increases. A. ill b 1 d 1
w e
t
POLICY AND PRINCIPLES-GENERAL REFORMS
Title I states proposed Federal salary policy, provides for continu-
ing application of the governing principles, and clarifies the role of the
executive.
The proposed bill offers a basis for Federal pay reform by the adop-
tion of two principles:
The comparability principle: Federal salary rates shall be
comparable with private enterprise rates for the same levels of
work; and
The internal alinement principle: There shall be equal pay for
substantially equal work, and pay distinctions shall be maintained
in keeping with work and performance distinctions.
Comparability principle
Adoption of this principle will assure equity for the Federal employee
with his equals throughout the national economy. Its use will im.
prove the Government's ability to compete with private firms for
qualified personnel.
Comparability with private enterprise salary levels provides a long-
needed logical and factual standard for setting Federal salaries. It
includes the effects of such legitimate pay consideration as cost of
living, standard of living, and productivity as those factors are re-
solved into the going rate over bargaining tables and other salary
determining processes throughout the country.
The principle has a history of wide acceptance. Within the Federal
Government, it has been used for 100 years; first applied to navy yard
workers, it is now applied to virtually all Federal trades and crafts
workers, to employees of the Tennessee Valley Authority, and to
Government work contractors through the Walsh-Healey and Davis-
Bacon Acts. It is widely accepted in industry, although many
leading firms have adopted the modification of paying better than the
competition. State and local governments, as well as some other
national governments (such as Canada and the United Kingdom), rely
on this principle.
Until recent years, the principle of comparability could not be
applied on a nationwide basis because there was no broad, acceptable
source of comparative salary data from private enterprise. Now,
however, the Bureau of Labor Statistics national survey of profes-
sional, administrative, technical, and clerical pay provides annually
the requisite data on private enterprise pay. It is the only compre-
hensive and authoritative survey of its kind, and there are technically
valid and established methods for translating the BLS data into
Federal comparability pay levels.
Pay comparability would be established between the same levels of
.
y
v
ew o
s
n
s essent
a
to preve
work in private enterprise and Government that is between levels Federal salar schedule f r ? 1 1
s r
exp ame a
er, comparaty for the more specialized
salary systems-postal, Foreign Service, Veterans' Administration
medical-will be established by a systematic linkage of key levels
with grades of the Classification Act.
Internal alinement principle
The internal alinement principle rests on the two concepts of
equal pay for equal work and pay distinctions in keeping with differ-
ences in work and quality of performance. As with the comparability
principle, the internal alinement principle is well established, both
within and outside the Government. It is stated in the current
Classification Act, the Postal Field Service Compensation Act, and
the Foreign Service Act; and it is imbedded in public and private
enterprise pay practices throughout the country. It is translated
through different concepts in different systems, in some cases through
evaluation of jobs and in other cases through evaluation of the quali-
fications of employees, but the same basic concept of internal equity
underlies all systems.
The equal pay for equal work part of the internal alinement prin-
ciple is now in effect and it works well, but pay distinctions for differ-
ences in work are not adequate under any of the statutory salary
systems.
Proposed schedules would regularize and generally enlarge the
differences in salaries between successive grade levels of positions.
The new intergrade differentials recognize more appropriately the
differences in responsibilities and furnish greater incentives for em-
ployees to strive to prepare themselves for higher responsibilities.
The proposed bill would improve the provisions for within-grade
step increases and would make them more meaningful. The bill
recognizes the importance of step increases by making them large
enough to serve as material incentives and by allowing sufficient
increases to sustain performance even where all or much of a career
is served within a single grade or level.
Essential flexibilities
To maintain Federal salaries at levels comparable with private
enterprise levels and to assure that other features of statutory salary
systems are corrected and improved as experience shows the need,
the bill provides that the President shall require an annual report,
from an agency he designates, on the relationship of Federal salaries
to those in private enterprise and shall submit an annual report to
Congress recommending the adjustments in salary schedules, struc-
ture, and policy lie considers advisable. This provision is a funda-
mental feature of the reforms proposed. It establishes a procedure
for annual review of salary schedules and for annual adjustment when
necessary to maintain the prescribed relationship to private enterprise
pay levels
A s
stematic re
i
f thi
ki
d i
i
l
nt
"In It: apsmg tot ion pI went conditions.
J
of work having substantially the same F l jeaseP> 13/03/28: CIA-RDP80 BrRSRUr ik17Q OQi1"vernment is handicapped in recruiting
bility, and required qualifications. A hough survey techniques and retaining well-qualified employees because private enterprise
require ascertaining private enterprise rates by occupation as well as
 Approved For Release 2003/03/28 : CIA-RDP80BO1676R003100200018-9
6 FEDERAL STATUTORY SALARY SYSTEMS FEDERAL STATUTORY SALARY SYSTEMS 7
salaries in an occupation or in a given place are substantially higher
than salary rates of statutory schedules, the President or an agency
which he designates may set higher pay scales than those in the
nationwide Classification Act, Postal Field Service, Veterans' Admin-
istration medicine and surgery, or Foreign Service salary schedules.
In setting the new scales, the entrance rate of a grade may be advanced
up to but not exceeding the top scheduled rate of the grade, and all
other rates of the grade may be advanced proportionately. Such
adjustments may be made for positions in an occupation in all areas
or in a given area; for all positions, or for all positions in certain
grades, in a given area; or for any other appropriate grouping of
positions.
Authority thus to advance salary scales is a modification of the
present authority in section 803 of the Classification Act which
permits the Civil Service Commission to raise the minimum rate of
the grade-or hiring rate-for positions in shortage occupations paid
under the act. Under the present authority, the minimum rate may
be increased as high as the maximum rate but no increases are per-
mitted for other step rates. Thus, when it becomes necessary to
advance the minimum rate at a given grade of an occupation to the
top rate of the grade, only a single salary rate may be paid to those in
the class of position concerned. New employees enter at the same
salary that is being paid to experienced, better performing employees,
a situation that has caused understandable resentment among indi-
viduals who had been several years on the job. Advancing the entire
rate range of a grade when the hiring rate is raised, as now proposed,
will permit experienced employees at the higher step rates to retain
the salary advantage they have earned over new appointees.
The proposed new authority would also permit a general increase
of rates payable under salary systems in a place where general salary
levels in private enterprise are so far above statutory salaries for
corresponding levels of work that they handicap the Government's
recruiting and retention of well-qualified personnel. Available in-
formation indicates that, once the Government's salaries are brought
up to national average private enterprise levels, there are few places
in which this condition may exist, and the authority to raise rates
generally in a geographic locality or area would be used very sparingly
and only where the need and justification is clearly and conclusively
demonstrated.
In accordance with sound irranageinent principles and in the interest
of coordination among Federal salary systems, the President would be
authorized to issue policies and rules, to which would be subject the
pay regulations issued by the Civil Service Commission, the Post-
master General, the Administrator of Veterans' Affairs, and the
Secretary of State under the several Federal statutory salary systems.
Present law fails to contain specific provisions making clear the Chief
Executive's responsibilities for salary administration as a part of the
general managenient of the executive branch.
Structural reforms
One major reform of the Classification Act salary structure would
be achieved through a regularized pattern of intervals between salaries
at successive grades. Under the proposed bill, pay differentials
between successive grades would be brought into a regularized pattern
and the entry rates for all grades will be, upon full reform, not less
than 10 percent apart. This spreading out of entry rates will relieve
the compression now existing generally but especially severe at the
higher grades.
Salary ranges of the grades would be made uniform. Each grade
would have a 30-percent pay range-entry rate and nine step in-
creases-except the top grades, which taper down to single rates
because of ceiling considerations. Step increases would 'be ucii-
formly large enough to serve their purposes as material incentives.
The present length.-of-service requirements for step increases would
be revised. Step increases are now granted every 52 weeks at GS-10
and below and every 78 weeks at GS-11 and above. Under the pro-
posals, the first three step increases would each be granted after 52
weeks of satisfactory performance. Thus, step-ups would relative] v
frequent during the first 3 years on a job when performance normally
improve rapidly. The next three steps would come at 2-year intervals,
and the final three steps at 3-year intervals, when the aim is to motivate
continued good perl'orncance. This revised use of step increases offers
incentives over a period of 18 years. Most Classification Act en1-
ployees receive promotions in grade and few work more than IS
years in it grade. At the same time, the revised use of step increases
encompasses within the salary range of a grade what are now called
longevity rates, thus removing unnecessary now-existent restrictions
on the use of such rates.
Comparability schedule
The Bureau of Labor Statistics surveys annually private enterprise
salaries and reports national averages. The jobs surveyed involve
work that is essentially the same in Government and industry and are
representative of Classification Act grades GS-1 through GS-15.
The survey covers 80 metropolitan areas, selected as representative
of the 200 standard metropolitan areas. It covers all industries that
are major employers of the occupations surveyed (manufacturing,
public utilities, wholesale and retail trade, finance, and certain service
industries). It covers establishments with 250 or more employees-
gathering clerical and technical pay data from about 6,000 establish-
ments, and professional and administrative data from about 1,600.
The Classification Act comparability pay schedule is constructed
by combining the BLS averages for several occupational-work levels
that equate with a given GS grade. From this information it regular-
ized comparability pay line is developed through grade CIS-15, and
extended through grade GS-1S by continuing the same regularized
shape, based on the internal alinement principle. The extension of
the line above grade GS-15 was checked against the findings of the
Civil Service Commission's study of salaries in 21 large corporations
to assure its reasonableness The construction of the a line iti
Title 11 of the ro posed bill wot c p y
1 1 1 ~lbrb l d P& fI' @ 4bb3Y0/28 : CIA-RDP80f~01t6~76,#~'?1 SI(Cl0i i0g1c> 4.t.
reforms needed in the (`lassification Act system.
 Approved For Release 2003/03/28 : CIA-RDP80BO1676R003100200018-9
t~
W
H
i
s n
o h
I
I
The rate for each grade in the comparability pay line is adopted
CO as the fourth step rate of that Classification Act grade, and the other
rates for the rate range of each grade are computed on the basis of an
interval between step rates equal to 3jjs percent of the entrance rate
of the grade. The fourth rate of the grade is adopted as the pay line
rate because it best represents the average rate of the grade for Clas-
sification Act employees and BLS findings represent average rates
paid by private firms.
In Classification Act grades where the comparability schedule falls
below current rates, the current schedule rates would be somewhat
increased nevertheless.
Flexibilities in use of schedule
The proposed bill provides greater flexibility in pay administration.
The bill also includes the provision in H.R. 1010 which passed the
House of Representatives on August 22, 1961. This provision would
insure employees promoted to a higher grade a salary increase equiv-
alent to not less than two step increases in the grade from which
promoted.
The Classification Act in its present Corm contains no provisions
for merit increases. Private enterprise relies heavily on merit in-
creases for rewarding and encouraging its better employees. The
proposed bill provides for use of step increases, under Civil Service
Commission regulations, to reward high-quality performance. No
more than one such increase could be granted an employee during a
year. This authority would make it possible for Federal managers to
reward appropriately the better performers, whose everyday contri-
butions to Federal programs continuously exceed the contributions
of their associates.
At various times in the past, the Classification Act system has
permitted within-grade merit increases. In the early years of the
act, increases were permitted to employees with specified efficiency
~O ratings. Absence of coordination among agencies-with increases
depending more on the condition of an agency's appropriation than on
merit-led to the present system of automatic, length-of-service
increases. A limited, relatively cumbersome system of superior
performance increases remained in existence but proved unsatisfactory
and the authority on which it rested was repealed in 1954. The
present proposal takes a middle ground between the two extremes that
proved unsuccessful under the Classification Act in the past.
The proposed bill also provides for appointing individuals with
extra qualifications at a rate above the minimum of a grade, or for
using a higher rate when the minimum would be lower than the candi-
date's current salary. This authority would also be exercised under
Civil Service Commission regulations. It is designed to help attract
high-quality personnel to the Federal service. There are many
instances in which ability to offer a few hundred dollars more may
enable the Government to secure the services of a well-qualified
individual.
Under present law, there is no pay method for rectifying a situation
r f' t u pervisor is paid less than abwage board
Approved For Release 2003/03/28: CIA-RDP409JOA' f ftif ~'~r'~lssion. With Classification Act salaries at
comparability levels, the incidence of situations of this sort should
be sharply reduced but, with the supervisor's rate based upon a na-
 Approved For Release 2003/03/28 : CIA-RDP80BO1676R003100200018-9
10 FEDERAL STATUTORY SALARY SYSTEMS
these pay inversions may still be encountered. Accordingly, the
proposed bill would permit an agency, under Civil Service Commission
regulations, to raise the rate of the supervisor in these circumstances
to a rate of his grade which is above the rate paid the wage board
employee under his supervision.
Objectivity and equity would be provided in classifying positions at
the higher career levels by removing the limitations on numbers of
positions which may be placed in grades GS-16, GS-17, and GS-18.
Existing special authorities for certain agencies to place a specified
number of positions in grades GS-16, GS-17, and GS-18 without Civil
Service Commission review would become less necessary and would be
eliminated; but requirements for an annual report to Congress on
positions in grades GS-16 and above would be retained. Limitations
on the number of positions to be placed in a grade are inconsistent with
the principle of alinement underlying the proposed reforms. A limi-
tation of this kind prevents classification of positions at the grade
levels appropriate to the duties, responsibilities, and qualifications
required.
Addition of two new levels
As indicated in the opening paragraph, an important part of the
salary reform plan is to return a few high-ranking positions of bureau
directors and similar posts to the general salary structure. The posi-
tions, most of which were formerly under the Classification Act, had
been granted higher compensation under the Federal Executive Pay
Act or other authorities. Since these are not positions of heads or
assistant heads of agencies, they are being placed in the Classification
Act system, at grade levels and under procedures which fully recognize
their special importance. Almost all of these will be, placed in new
grades GS-19 and GS-20, at salary rates considerably above GS-18,
even though full comparability as projected from present comparisons
with private enterprise cannot be attained. Personal action by the
President, after review of recommendation by the Civil Service Corn-
mission, is required to place a position in either of the two new grades,
to insure maintenance of high standards of responsibility and com-
petence.
REFORM OF SPECIAL STATUTORY SALARY SYSTEMS
For each key level or rank so linked with a Classification Act
grade, the salary level was established on the basis of the compara-
bility pay rate used for the Classification Act grade. The remainder
of the schedule was developed in accordance with the alinement and
structure required by internal conditions and needs of the specific
service.
Postal field service pay reform
Title III of the bill relates to postal field service compensation.
Proposals are based on the principles of comparability and internal
alinement and on the special career conditions at the lower levels.
To extend comparability salary levels to the postal service, PFS-20
and PFS-11 are linked with GS-17 and GS-11, respectively, through
evaluation of duties, responsibilities, and qualifications required; and
PFS-4 is linked with GS-5. Linking PFS-4 with a grade as high as
GS-5 of the Classification Act schedule is not predicated solely on it
work-level evaluation basis but on the additional considerations of the
unique character of postal occupations, the full career served by many
postal clerks and carriers in PFS-4 and the family responsibilities of
most of them, and the relative scarcity of opportunities for advance-
ment to higher work levels.
The fourth step rates of Classification Act grades GS-17, 11, and
5 were used as the fourth step rates of PFS-20, 11, and 4, respectively.
The fourth rates of other postal levels were established by application
of uniform intergrade differentials for levels PFS-1 through PFS-10
and another set of uniform differentials among levels above PFS-10.
This established it PFS comparability pay line at the same general
level as the Classification Act pay line.
The PFS comparability schedule was constructed by applying
within-grade pay ranges patterned on those proposed for the Classi-
fication Act but substantially wider at the lower postal levels. Twelve
within-grade increases, spread over 27 years and adding up to a 40-
percent range, are proposed for PFS--1 through PFS-6, where em-
ployees normally spend their entire careers in a single level. The
new PFS rate ranges replace the former longevity increases as well
as the regular step-increases in the former pay schedule.
Time intervals between step increases would be the same as under
the Classification Act: 1 year each for the first three, 2 years each
for the next three, and 3 years each for the remainder. Additional
t
i
ld
i
ep
ncreases cou
be g
ven for exceptional competence, and an
Linking s
The BLS survey furnishes private enterprise salary data for occu- individual with extra qualifications could be appointed at a rate
pations which are representative of the Classification Act but not for above the minimum of the level.
other Federal pay systems where the majority of jobs have few, if Other revisions in the postal compensation system would guarantee
any, counterparts in private enterprise. As indicated earlier in this a minimum two-step increase on promotion to a higher level or a
statement in order to extend the principle of comparability to other three-step increase if promoted three or more levels; place rural carrier
statutory salary systems the proposed bill relates, or links, several pay on a work requirement rather than a mileage basis; and modify
key levels or ranks of each system with equivalent Classification Act the salary schedule for fourth-class postmasters.
grades. Linkage is based in most cases on an evaluation of duties, Reform of salaries in the Veterans' Administration Department of
responsibilities, and qualifications required but also takes into account Medicine and Surgery
other factors which should affect pay, such as career patterns and Title IV of the bill is concerned with salaries of physicians, dentists,
opportunities for advancement oup characteristics of employees, t the Department of Medicine and Surgery
employment conditions, and spec pfdi eenrsR l6hsee2O@8/03128: CIA-RDP80W A W ~* i i .the Proposals rest on the twin principles
cerned. All linkages were agreed upon by the Bureau of the Budget, of comparability and internal alinement.
the Civil Service Commission, and the department or agency
 Approved For Release 2003/03/28 : CIA-RDP80BO1676R003100200018-9
Pay comparability is brought about by linking the pay of:
Physician, Director grade (new) with GS-16.
Physician, associate grade with GS-11.
Director, nursing service with GS-15.
Nurse, junior grade with GS-6.
Salary ranges for intermediate grades of physicians, dentists, and
directive staff and most grades of nurses were established by main-
taining a regularized pattern of intervals between grades similar to
the pattern used for the Classification Act. Directive level salaries
are based on an upward projection of these salary schedules, except
for the Chief Medical Director rate, which is linked to the new GS-20
grade.
Salary structures are improved by adding two new physician grades
and dropping one former grade and by adding one nurse grade. The
proposed Classification Act rate range, generally 30 percent, is used
except at the highest levels, where lesser ranges or single rates are
proposed.
Under existing law, the Administrator of Veterans' Affairs has wide
discretion in determining what step rates will be established within
prescribed statutory rate ranges and how the step rates will be used.
His present authority would continue, but subject to the President's
policy direction. Step rates within the statutory limits of the rate
ranges would be set administratively, as they now are. The existing
authority for 15 percent additional pay for specialists would be re-
pealed. Proposed 30 percent rate ranges would provide an adequate
spread to permit recognition of specialist qualifications.
Foreign Service pay reform
Title V would extend comparability and alignment principles to
salary schedules of the Foreign Service under the Department of State.
Comparability would be brought about by linking the pay of-
FSO-4 with GS-13.
FSO-8 with GS-7.
FSS-1 with FSO-3.
FSS-10 (new) with GS-4.
The fourth rate of the class at the point of linkage is associated with
the fourth rate of the corresponding Classification Act grade. A
structure of regularized, slightly increasing interclass differentials
provides the fourth rates of other Foreign Service officer classes.
The rate for the highest class, Career Ambassador, is set at the same
level as that for Chief Medical Director of the Department of Medi-
cine and Surgery of the Veterans' Administration. Foreign Service
Staff rates for other classes are derived from a uniform interclass
differential pattern up to FSS-4, above which FSS salary levels con-
form with those for corresponding FSO classes. Ten FSS levels
would re lace the evistintc 22 the lower 9 of which seldom have
P
FEDERAL STATUTORY SALARY SYSTEMS 13
terns, because of the selection-out system and other factors, do not
require a wide range of salaries for a class.
Existing law permits the Secretary of State substantial discretion
in the use of within-class salary rates. His present authorities would
remain in effect; they would be subject to Presidential policies and
rules.
PHASING OF SALARY INCREASES AND COSTS
Because of the lag that has accrued over the past 20 years or more,
bringing statutory salary schedules up to levels reasonably conn-
para%le with private enterprise would involve substantial cost in the
intermediate levels and substantial individual increases at the top.
To reduce the budgetary and economic impact and to provide it
modest and orderly transition under a new governing principle for
salary determination, it is proposed that the comparability principle
be placed in effect through a 3-year phased program.
Accordingly, the proposed bill includes under the appropriate
titles three salary schedules for each statutory salary system:
One effective the first pay period beginning on or after January
1, 1963.
One effective the first pay period beginning on or after Janu-
ary 1, 1964.
One effective the first pay period beginning on or after January
1, 1965.
The schedules have been so developed as to provide an annual
increase of at least $120 for all employees in the third schedules to
be effective after January 1, 1965.
Results of Bureau of Labor Statistics annual surveys reported in
the meantime will be taken into account in the annual reports and
recommendations to Congress required under title I of the proposed
bill. Thus the effects of any intervening changes in national salary
levels can be considered before second-phase and third-phase schedules
become operative.
Increases in annual
distributed as follows:
costs under the reform proposals would be
Proposed
comparability
schedules
First phase
alone, 1963
Classification Act
Postal field service
Veterans' Administration, medicine and surgery_____________________________
Foreign Service- ----------------- ----------------------------------
Total
$733.7
267. 0
31.3
26.5
$307.2
118. 3
12. 4
10.1
been used. Although desiBrued to reform statutory salary systems stems rather than
Rate ranges for Foreign Service Staff classes would be 30 percent, to provide it pay raise, the bill would raise salary levels substantially.
with an entry rate and nine step increases, like the proposed Classi- Increases are greatest at the higher levels, because these are the levtls
fication Act within-grade structure.,&,b AiAl CID_RnPR(113( Ei~> farthest behind while national salary
or single rates are used, 20-percent salary ranges are proposed for curing tine three-phase program would vary from a 3.7-percent increase
Foreign Service officer classes. Foreign Service officer career pat- at grade GS-1 to it 38-percent, increase at GS-17 and a 32-percent
 Approved For Release 2003/03/28 : CIA-RDP80BO1676R003100200018-9
increase at GS-18. Similarly, postal salary increases would range
from 7.5 percent at PFS-4 to 26.5 percent at PFS-20. Veterans'
Administration medicine and surgery salaries would be raised 11.8
percent for junior grade nurse, 41 percent for the Deputy Chief
Medical Director, and 37 percent for the Chief Medical Director.
In the Foreign Service, salaries for new FSS class 10 would be 3.6
percent above those of the former corresponding class, and salaries
for career Ambassadors would become 45 percent higher than at
present.
The reform program would produce the following average salary
increases under the several statutory systems:
Proposed
;omparabillty
schedules
First phase
alone, 1063
Classification Act
11.0
Postal field service
7.9
Veterans' Administration, medicine and surgery-----------------------------
16.8
Foreign Service -------- ----------------------------------------------
18.1
Overall average-------------- ----------------------------- -----------
Even though the overall average increase under the comparability
schedule is less for the postal system, the fact is that at the most
heavily populated postal level the average increase is greater than at
the, corresponding Classification Act grade.
Once Federal salaries have been brought into adjustment with com-
parability levels, future increases can be expected to be distributed
more evenly over the higher and lower grades, and to have smaller
fiscal impact in any one year.
FEDERAL STATUTORY SALARY SYSTEMS
exceed the rate for grade GS-18 which would be in effect after January
1, 1965, under title II of the proposed bill.
This proposal would produce much needed increases in salaries for
the positions concerned, generally those of scientists engaged in
advanced research and developmental studies. More important,
linking the rate range for these positions to specified Classification
Act grade ranges would produce automatically appropriate adjust-
ments in the salary limits for these positions whenever the Classifica-
tion Act and other statutory salary schedules are adjusted as a result
of movements in national private enterprise salary levels.
Other miscellaneous provisions in the bill would, for example, make
desirable changes in provisions for salary retention in downgradings
under the Classification Act and for necessary conversion of employees'
present salaries to those under the proposed schedules.
The effective date of all provisions of the bill other than the second-
phase and third-phase salary schedules would be the first pay period
beginning after January 1, 1963.
CONCLUSION
Enactment of the proposed bill would gradually bring Federal
statutory salaries up to levels reasonably comparable with rates paid
in private enterprise and would establish equitable relationships
among Federal pay systems. The proposed bill offers a "governor"
standard which objectively controls pay levels and automatically sets
in motion needed periodic adjustments, and provides for executive
recommendations, as needed, on salary structure and compensation
policy.
Taken as a whole, provisions of the proposed bill would provide it
powerful continuing force for improved management in the Federal
service and competent execution of the programs that the Congress
prescribes for administration by the executive branch.
Title VII contains most miscellaneous provisions; others affecting
only a single salary system are in the appropriate title.
The principal provisions of title VII relate to existing authorities
to set salaries for specified numbers of positions in certain scientific
activities without regard to the Classification Act. The positions are
in the Departments of Defense, Interior, Agriculture, Health, Educa-
tion, and Welfare, Commerce, and Post Office, the National Security
Agency, National Aeronautics and Space Administration, Federal
Aviation Agency, and Arms Control and Disarmament Agency.
Salaries generally are restricted to the range between $12,500 and
$19,000, but a maximum of 30 positions in the National Aeronautics
and Space Administration may be paid up to $21,000 it year.
Title VII, in place of the present fixed dollar limitations, would
authorize salaries in the range between the minimum rate of grade
GS-16 and the pay of grade GS-18. Under the first phase Classifica-
tion Act schedule effective January 1, 1963, the range would be $16,400
to $20,315. A year later it would be $17,970 to $22,740; and on
January 1, 1965, it would become $19,125 to $24,500. A special
provision would permit immediately siAlp udd-iFctoRele s&nMQ: /A3/28 : CIA-RDP80BO1676R003100200018-9
30 positions in the National Aeronautics and Space Administration
(which may now be compensated up to $21,000 a year) at not to
 Approved For Release 2003/03/28 : CIA-RDP80BO1676R003100200018-9
FEDERAL STATUTORY SALARY SYSTEMS 17
Section 101: Provides that the act may be cited as the "Federal
Salary Reform Act of 1962."
Section 102: This section sets forth the policy of the Congress that
pay of Federal civilian personnel shall be established upon the prin-
ciples of equal pay for substantially equal work with pay distinctions
maintained in keeping with work and performance distinctions; and
that Federal salaries shall be comparable with salaries in private
enterprise for the same levels of work. The declaration of policy
further states that pay levels of the several Federal statutory salary
systems shall be interrelated, and that pay levels shall be set and
hereafter adjusted in accordance with these principles.
Section 103: This section provides that in order to give effect to the
policy stated in section 102, the President shall direct an appropriate
agency, or agencies, to prepare and submit to him an annual report
comparing salary rates paid to Federal employees whose rates are
fixed by statute with rates paid for the same levels of work in private
industry as determined on the basis of annual surveys of the Bureau
of Labor Statistics of the Department of Labor. After seeking the
views of employee organizations the President is required to make an
anmial report to the Congress containing the comparison of Federal
and private enterprise salary rates and such recommendations for
revision of statutory salary schedules, salary structure, and compensa-
tion policy as he deems advisable.
Section 104: Subsection (a) of this section provides that whenever
the President, or such agency or agencies as he may designate, finds
that salary rates in private enterprise for one or more occupations in
one or more areas or locations are so substantially above the salary
rates of statutory pay schedules as to handicap significantly the
Government in recruiting and retaining well qualified persons in
positions paid under the Classification Act of 1949, the Postal Field
Service Compensation Act of 1955, the pay scales applicable to certain
positions in the Department of Medicine and Surgery of the Veterans'
Administration, or the Foreign Services Act of 1946, the President,
or the agency or agencies designated by him, may for such areas or
locations, establish higher minimum rates of pay for one or more
grades or levels, occupational groups, series, classes, or subdivisions
thereof, of one or more of the acts cited. Corresponding increases
may be made in all step rates of the salary range for each such grade
or level but no iniaimuln salary rate so established may exceed the
highest salary rate prescribed by law for the grade or level.
Subsection (b) provides that such rates may be revised from time
to time and that such actions shall have the force and effect of law.
under the Classification Act or the Postal Field Service Compensation
Act.
Section 105: This section provides that the functions, duties, and
regulations of the departments and the Civil Service Commission with
respect to compensation grades and salary scales under title I of this
act, the Classification Act, the Postal Field Service Compensation
Act, the Foreign Service Act, and chapter 73 of title 38 of the United
States Code (relating to compensation of medical and nursing posi-
tions in the Department of Medicine and Surgery of the Veterans'
Administration) shall be subject to such policies and rules as the
President may issue. The rules and policies of the President may,
among other things, provide for (1) the annual preparation and report
to him of the comparison of salary rates in the Federal Government
with those in private enterprise; (2) obtaining and reporting the views
of employee organizations on the annual comparison of salary rates,
and on other compensation matters; (3) reviewing and reporting to
him on the adequacy of the various statutory salary structures; (4)
reviewing relationships of Federal statutory salary rates and those of
private enterprise in specific occupations and local areas; and (5)
providing step increases in recognition of extra competence, for ap-
pointment at salary rates above the minimum, and for properly
relating supervisory salary rates paid under one system to subordinates
paid under another system.
TITLE II-PAY SYSTEM OF CLASSIFICATION ACTjOF 1949
Section 201: This section provides that title II may be cited as the
"Classification Act Amendments of 1962."
Section 202: This section adds two new grades, GS-19 and GS-20,
to the General Schedule of the Classification Act. The new grades
are primarily to accommodate outstanding positions being brought
under the act, by other sections of the bill which are presently paid
under the Executive Pay Act or individual statutory authorities.
Section 203: This section contains the proposed compensation
schedule for the General Schedule of the Classification Act, and the
conversion rules for the three phases of the salary adjustment plan
which would become effective in 1963, 1964, and 1965.
Subsection (a) prescribes the compensation schedule for the general
schedule for the first phase of the pay adjustment program which would
be effective on the first day of the first pay period which begins on or
after January 1, 1963. The schedule contains 10 per annum rates in
lieu of 7 scheduled and 3 longevity rates currently provided for GS-i
through 10; 10 rates for GS-11 through 14 in lieu of 6 scheduled and
3 longevity rates; 10 rates for GS-15 in lieu of 5 scheduled and 3
longevities; and 7 rates for GS-16 in lieu of the 5 rates currently pro-
vided by the Classification Act. Grade GS-17 will have four rates
in lieu of the present five, and GS-18 would continue to have a single
rate. Because the number of regular step rates is increased, tie
current provisions for longevity step increases in title VII of the Classi-
fication Act are no longer needed and are repealed in subsequent,
Subsection (c) provides thasthall any i r ~Qome sections of the bill.
established under section 104 &&~O 'd~t #I r 3/28 : CIA-RDP80B0 ROt31 (#62OWO-93ction specifies the rules by which existing
pay rates are to be automatically adjusted to the rates of the new
increase in compensation for or purposes es oe e a of wit in-grade advancement schedules. The general principle is that employees are to retain the
16 sA.mA rAth.tvA n1A within thA nAw O'rA.dA rA.nffA AA thAV hA.d within
 Approved For Release 2003/03/28 : Cl4 -RDP80B01676R003100200018-9
FEDERAL STATUTORY SALARY SYSTEMS 19
their former grade range. This principle, however, requires special quality performance above that ordinarily found in the type of posi-
provisions where the number of rates is not the same in both the old tion concerned. Such additional step increases could be made in
and the new grade range. Hence, some special transition rules are accordance with regulations prescribed by the Civil Service Commis-
provided relating primarily to grades GS-11 and above. sion and, under subsection (b), would be limited to not more than one
Paragraph (9) of subsection (b) provides that service immediately within any period of 52 weeks.
preceding the effective date of subsection (a) of the section shall be Current provisions of sections 703 and 704 of the Classification Act
counted toward not to exceed one step increase under the time in relating to longevity step increases are no longer needed since these
grade provisions of section 701 (a) of the Classification Act, as amended steps have been included in the regular rate range for the respective
by this act. grades. The provisions are therefore repealed. Section 703 of the
Subsection (c) of this section provides the compensation schedule amended title VII which is already in existing law (as sec. 705) pro-
for the general schedule for the second phase of the pay adjustment vides that title VII shall not apply to persons appointed by the Presi-
program which would be effective on the first day of the first pay dent, by and with the advice and consent of the Senate. It recognizes
period beginning on or after January 1, 1964. that such persons should not be subject to the usual restrictions on
Subsection (d) of this section specifies the rules for automatically step increases since their appointments are frequently of limited
converting then existing pay rates to the rates of the new schedule. duration, being more or less dependent upon changes in political ad-
The general principle is again followed that employees are to retain ministration. Usually it cannot be expected that such noncareer
the same relative place within the new grade range as they did in the officials will serve the necessary time to receive full advantage of the
former grade range. The conversion rules are somewhat simpler in step-increase plan. Therefore, heads of departments and agencies
this instance because the number of rates in the salary range of each should be left free to increase their compensation within the salary
grade is the same under the 1963 and 1964 compensation schedules. range of their grades without regard to the time and other limitations
Subsection (e) of this section provides the compensation schedule of title VII.
for the general schedule for the third phase of the pay adjustment Section 205: This section amends section 801 of the Classification
proposal. It would become effective on the first day of the first pay Act which now requires that all appointments shall be made at the
period which begins on or after January 1, 1965. minimum rate of the appropriate grade. This would continue to be
Subsection (f) specifies the necessary rules for converting the pay the general rule. However as an aid in attracting high quality per-
rates of the 1964 schedule to those of the 1965 schedule. The rules sonnel to the Federal service, section 801 as amended would permit
are identical to those prescribed in subsection (d). appointments at rates above the minimum of the grade under regula-
Section 204: This section amends title VII-"Step-1.ncreases" of ~ tions prescribed by the Civil Service Commission in the following
the Classification Act. Title VII currently provides two types of circumstances: (1) Individuals having extra qualifications for the
step-increases: (1) Periodic step-increases under section 701, and (2) position concerned could be appointed at such higher rate of the grade
longevity step-increases beyond the scheduled maximum rate of the as the Commission might authorize. (2) Well-qualified individuals
grade under section 703. Longevity steps are given as it reward for whose non-Federal salaries are above the minimum rate of the grade
long and faithful service. As amended by this bill, title VII provides to which they would be appointed, and who otherwise would decline
for (1) periodic step-increases, and (2) additional step-increases to be appointment or take a reduction in income if the Government's offer
granted in recognition of high quality performance. is accepted, could be appointed at a rate above the minimum. Under
Section. 701 now provides periodic step-increases, for employees these circumstances, no appointment could be made at a rate higher
below the maximum rate of the grade, for each 52 calendar weeks of than the lowest rate of the appropriate grade which equaled or ex-
service if the amount of the step-increase is less than $200, or 78 weeks ceeded the appointee's salary rate immediately prior to appointment.
of service if the employee's position is in a grade in which the step- The authorization is permissive in both categories of exceptions.
increase is $200 or more. As amended, section 701(a) provides for Section 206: This section amends section 802 of the Classification
periodic increases following the completion (1) of each 52 calendar Act by revising the current subsection (b) and by adding a new sub-
weeks of service in salary rates 1, 2, and 3, (2) 104 calendar weeks of section (d).
service in salary rates 4, 5, and 6, and (3) each 156 calendar weeks of Subsection (a) of section 205 revises section 802(b) of the Classi-
service in salary rates 7, 8, and 9. These periods of service apply fication Act to provide that when an officer or employee is promoted
regardless of the grade and the dollar amount of the salary increment. or transferred to a position in it higher grade he shall receive basic
Paragraphs (A) and (C) of subsection (a) which relate to eligibility compensation at the lowest rate of the Trigher grade which exceeds
for step increases are in existing law. Paragraph (B) requires, as a his existing rate of basic compensation by not less than two step
prerequisite to within-grade advancement, that the employee's work increases of the grade from which lie is promoted or transferred. In
is of an acceptable level of competence in contrast with the present the event that there is no rate in the higher grade which is at least
wording that the employee has a current performance rating of "satis- two st1~11 eases above his existing rate of compensation, the officer
factory" or better. A p For Release 2003/03/28 : Cl -RDP80 }v01r r eceive either the maximum rate of the higher
p 66 4
1 #( Q19-R basic compensation if it is higher. Exist-
Subsection (b) of the revised section 701 is present law.
Section 702 of the Classification Act as embodied in the bill author- ing law provides only it one-stop increase upon promotion or transfer
to a hi her grade. This proposal is included in H.R. 1010 which
,zar in (al_ additional sten increases in reconition of high. _- T) _____-__ ... A....... ti 00 ,na,
 Approved For Release 2003/03/28 :
20 FEDERAL STATUTORY SALARY SYSTEMS
Subsection (b) of section 205 adds a new subsection (d) to section
802 of the Classification Act. There is no present authority for
saving the basic compensation of an employee who, together with
his position, is brought under the Classification Act from some other
Federal pay system (such as the wage-board system), if his salary
rate is in excess of the maximum rate of the classification grade. in
which his position is placed. The present situation not only works
a hardship on the employee whose compensation is reduced, but it
discourages and hinders the transfer of positions from one system to
another when this is required to be done. The new subsection would
authorize the Civil Service Commission to issue regulations to permit
the retention of salary in such instances. It also provides that if
an employee is demoted to a position of lower grade under the Classi-
fication Act, his salary will be determined under section 507 of that
act which relates to demotions from one grade to another. At the
same time subsection (d) provides that the employee's service in the
position which was brought under the act shall, for the purpose of
computing time in grade under section 507, be considered as service
under the Classification Act.
Section 207: This section repeals the current provisions in section
803 of the Classification Act which authorize the Civil Service Com-
mission to increase the existing minimum salary rate for a given class
of positions whenever it finds that a sufficient number of qualified
eligibles in such class cannot be secured and that there is a possibility
that a sufficient number can be secured at a higher rate. Because of
of the more comprehensive provisions in section 104 of title I of the
bill, the present provisions of section 803 are unnecessary and therefore
are being deleted. Section 803, as amended, is designed to ameliorate
a situation which has long plagued certain segments of the service and
has been detrimental to morale wherever it existed. The new section
provides that under regulations of the Civil Service Commission, any
employee in a position under the Classification Act''who regularly
has responsibility for supervision, including technical supervision,
over employees whose pay is fixed by wage boards or similar adminis-
trative authorities, may be paid a rate for his grade which is above the
highest rate of basic compensation being paid to any such prevailing-
rate employee regularly supervised.
Section 208: This section amends section 507 of the Classification
Act which provides for the retention of salary when an employee is
demoted to a lower grade. The amendment in the first paragraph
makes the provisions of the section applicable to officers and employees
in all grades of the Classification Act. The amendment in paragraph
(2) is a minor change in language, but one which ill permit salary
retention in some cases not now permitted under section 507.
Section 209: This section materially amends section 505 of the
Classification Act. All present provisions of that section are repealed
with the exception of the provision requiring that no position shall
be placed in grade 16, 17, or 18 of the general schedule except by
action of, or after prior approval by, a majority of the Civil Service
Commissioners. The numerical limitations on the top grades are
repealed as are all special authorizations to designated agencies for
positions in grades 16, 17, and 18 of App for ed ?idmPtdlease OQ3ID3/28
out the benefit of review by the Civil Service Commission.
Subsection (b) provides that it position shall be placed in new grade
l 1non Il,o Prn0i.onfin.7of4an rnxriuzz, of mnn mnflnfinn
rRDP80BOl 676R003100200018-9
FEDERAL STATUTORY SALARY SYSTEMS 21
of the Civil, Service Commission, that it involves responsibility for
direction of a program or activity with sufficiently significant implica-
tions for the national interest or sufficient magnitude of operations
and impact on the public interest that it should be placed in the
highest grade of the Classification Act.
Subsection (c) provides that a position shall be placed in new grade
GS-19 only when the President finds, after review of recommendations
of the Commission, that its responsibilities are of such national
significance that it should be at a higher level than grade GS-18 but
it does not measure up to the requirements of grade GS-20.
Subsection (d) of section 505 requires the Commission to submit an
annual report to the Congress with respect to positions placed in
grades 16, 17, and 18 of the general schedule and the incumbents of
such positions. The requirements are quite similar to those currently
prescribed in section 503 of the act of Jul 31, 1956 (70 Stat. 762),
which is repealed in section 209 of the bill.
Section 210: This section expressly repeals those provisions of law
relating to (1) incumbency allocations to specific top grades of the
Classification Act; (2) special agency authorizations in laws other
than the Classification Act for positions in, or paid at salary rates
related to, the top grades of that Act; (3) provisions relating to
required reports on the top grades and the rates and administration
of the Classification Act; and (4) section 803 of the Classification Act.
Section 211: This section amends certain provisions of the Foreign
Assistance Act of 1961 and the Mutual Educational and Cultural
Exchange Act of 1961.
Subsection (a) repeals that part of section 625(b) of the Foreign
Assistance Act of 1961 which reads-
of whom not to exceed fifty-one may be compensated at rates higher than those
provided for grade 15 of the general schedule established by the Clas: ification Act
of 1949, as amended (5 U.S.C. 1071 et seq.), and of these, not to exceed eight may
be compensated at a rate in excess of the highest rate provided for grades of such
general schedule but not in excess of $19,000 per year.
Subsection (b) repeals section 625(c) of the Foreign Assistance Act
which reads as follows:
(c) Of the personnel employed in the United States to carry out part II, not to
exceed eight may be compensated at rates higher than those provided for grade 15
of the general schedule established by the Classification Act of 1949, as amended,
and of these, not to exceed three may be compensated at a rate in excess of the
highest rate provided for grades of such general schedule but not in excess of
$19,000 per year. Such positions shall be in addition to those authorized by law
to be filled by Presidential appointment, and in addition to the number authorized
by section 505 of the Classification Act of 1949, as amended.
Subsection (c) amends section 104(b) of the Mutual Educational
and Cultural Exchange Act of 1961 by repealing that part of subsec-
tion (b) which reads as follows:
and of such personnel not to exceed ten may be compensated without regard to
the provisions of the Classification Act of 1949, as amended, and of these not to
exceed five may be compensated at a rate in excess of the highest rate provided for
grades of the general schedule established by the Classification Act of 1949, its
amended, but not in excess of $1,000 per annum more than such highest rate.
Such positions shall be in addition to the number authorized by section 505 of the
Classification Act of 1949, as amended.
CIA-RDP80B0''67WOa340?2Al Oflit tOidments, which, internally arc inconsistent
with the compensation schedules proposed in title iI, is to place all
 Approved For Release 2003/03/28 : QIA-RDP80BO1676R003100200018-9
of these positions under the Classification Act as proposed in section
211(a) of the proposed bill.
Section 212: Subsection (a) provides that each position specifically
referred to in or covered by any amendment or repeal made by sections
209 and 210 shall be placed in the appropriate grade of the general
schedule of the Classification Act, in accordance with the provisions
of that act.
Subsection (b) provides that positions in grades 16, 17, and 18 of
the general schedule immediately prior to the effective date shall
remain in such grades until appropriate action is taken under section
505 of the Classification Act.
Section 213: This contains the usual savings provisions.
Subsection (a) provides that changes in law made by title II shall
not affect any position existing immediately prior to such changes,
the compensation attached to such position, any incumbent thereof,
his appointment, and his right to receive the compensation attached
to the position until appropriate action is taken in accordance with this
title.
Subsection (b) provides that the incumbent of each such position
immediately prior to the effective date of title II shall continue to
receive the basic salary which he received immediately prior to the
effective date until he leaves his position or until he is entitled to
receive a higher rate in accordance with law. The rate of basic com-
pensation of subsequent appointees to such position will be determined
in accordance with provisions of the Classification Act.
Section 214: This section provides that except as provided in
section 202, title II shall become effective on the first day of the
first pay period which begins on or after January 1, 1963.
Section 301: This section contains the short title of
"Postal Emplovees Salary Adjustment Act of 1962."
Section 302: The salary schedule for the postal field service schedule
(PFS), included in the amendment to section 3542 of title 39 of the
U nited States Code, follows the pattern established for other statutory
pay systems in that it is based on the principle of industry compar-
ability for levels of work. Comparability in this instance was estab-
lished through reference to the Classification Act schedule since
private industry equivalents are more readily obtainable with positions
ranked under that act than under the postal pay system.
Linkages were established with the Classification Act schedule by
equating PFS-4, PFS-11, and PFS-20 with GS-5, GS-11, and GS-17,
respectively. In order to validate these reference points, positions in
the PFS system were evaluated by reference to the Classification Act.
The level of duties and responsibilities found in PFS-11 and PFS-20
corresponded to those identified with GS-11 and GS-17. While the
level of duties and responsibilities found in PFS-4 positions bear some
similarity to clerical positions in GS-4, distinctive employment condi-
sions prevailing in the postal field service warranted linkage with GS-5.
The PFS comparability pay line, drawn through the points of link-
FEDERAL STATUTORY SALARY SYSTEMS 23
PFS-20. Adoption of this pattern preserves generally the present
alinements within the postal pay system, yet, at the same time, cor-
rects deviations from the standard progressions which have been in-
corporated into the present structure. To illustrate, the present inter-
grade differential between PFS-3 and PFS-4 is 9.9 percent and that
between PFS-4 and PFS-5 is 5.9 percent. The narrowness of the
latter differential compresses the schedule so that step 1 of PFS-7, the
predominant level for firstline supervision, exceeds step 1 of PFS-4
by only 23.6 percent; the proposed schedule raises this differential to
26.9 percent.
Within-grade step differentials are 3.3 percent of step 1 for each
level, as proposed for other Federal pay systems. Because of varia-
tions in the number of steps, rate ranges vary from approximately 40
percent for levels 1 through 6, to 33 percent for level 7, 30 percent for
levels 8 through 18, and somewhat less for levels 19 and 20.
The proposed schedule replaces both annual salary steps in the
present PFS schedule and longevity steps. The combination is ac-
complished by the addition of step increases to the PFS schedule to
be attained on the basis of periodic advancement within the level.
This section provides three schedules which are to become effective
on the first day of the first pay period which begins on or after January
1 of 1963, 1964, and 1965, respectively.
Section 303: Subsection (a) of this section amends section 3543 (a)
of title 39 by establishing a new schedule for determining rural carrier
pay and by combining the present salary steps and longevity steps into
a single 13-step schedule. In this respect, the rural carrier schedule
(RCS) follows the pattern of the PFS schedule.
Pay rates for the RCS schedule were determined by adding the
amount of increase provided in each phase for PFS-4, step 7, to the
present step 7 rate for the 58-mile route. This route represents the
average length of route in 1962.
Within-grade step differentials approximate 3.3 percent and the
total range of rates is approximately 40 percent as in the PFS schedule.
The three schedules would become effective in 1963, 1964, and 1965.
Subsection (b) substitutes a system of pay based on weekly work
requirements of the route for the present system which relates pay pri-
marily to miles of route. Five service classifications are established.
The weekly work requirements will be determined from measurable
route characteristics, such as mail count, number of miles, and number
of boxes. To allow for variations in conditions from day to day, or
season to season, the pay related to each service classification will
compensate for a larger number of hours than are specified as weekly
work requirements for the respective classifications.
Premium pay at overtime rates is provided for routes in service
classification E, where weekly work requirements exceed 40 hours per
week, as shown in the table of rates applicable under the 1963 phase to
the respective service classification. Special provision is made in
subsection (b) (2) for determining coinpensation on triweekly routes.
age produces a schedule with intergra~ &~tj e ~r~ 3/03/28: CIA-RDP80BO1676R003100200018-9
from PFS-1 through PFS-9 arrd 10.9 pe en from b S roug i
 Approved For Release 2003/03/28 : CI
`~4 FEDERAL STATUTORY, SALARY SYSTEMS
PER ANNUM,RATES AND STEPS
1
2
3
4
5
8
8
8
9
10
11
12
13
A _ _ _ _ _
$3, 686
$3, 808
$3, 929
$4, 051
$4,172
$4, 294
$4, 418
$4
537
$4
859
$4
780
$4
902
024
$5
$5
145
B _ _ _ _ _
3, 977
4, 108
4, 239
4, 371
4, b02
4, 633
4, 784
,
4, 895
,
5, 027
,
b, 158
,
b, 289
,
5, 420
,
5, 551
C _ _ _ _ _
4, 268
4, 409
4, 550
4, 890
4, 831
4, 972
5,113
5, 254
5, 394
5, 535
5, 878
5, 817
6, 958
D.. _ _ _
4, 559
4, 709
4, 880
5, 010
5, 161
5, 311
5, 461
5, 612
5, 762
5, 913
8, 083
8, 213
8, 364
E _ _ _ _ _
4, 850
5, 010
5,170
5, 330
5, 490
b, 850
5, 810
5, 970
8,130
6, 290
6, 450
8, 810
6, 770
$187.88 $193. 88
$199.88 $205.88 $211.88
$223.88 $229.88
Studies of rural routes have confirmed the fact that route mileage
is not an equitable basis on which to determine pay. Routes with
identical mileage vary greatly in terms of workload. At the same
time, routes which vary greatly in length and, consequently, in com-
pensation for the carrier, have the same workload characteristics in
terms of time required. Data collected from a sample of routes
participating in the 1960 inspection showed, for example, that appli-
cation of the service classification, based on uniform time standards,
to randomly selected routes would have resulted in the following
distribution
Present an-
Miles of route
nual salary
A
B
C
D
E
step 7
29---------------------------------
$4,934
5
----------
----------
---
-------
1
42_____________________________________
5.305
Il
4
1
1
1
58-----------------------------------
5,669
10
3
2
2
2
69-------------------------------------
5,953
1
7
5
4
3
74--------------------------------
B, 073
1
1
2
3
3
-RDP80B01676R003100200018-9
FP~DERAL BTATIITORY SALARY BY~T~MB 2~
routes when auxiliary assistance is furnished. The ratio is established
at 50 minutes for each hour of assistance. It is anticipated that relief
will be afforded in the most practical and efficient manner, on one or
more days in the week. For example, relief may be afforded on a 48-
hour route by excusing the carrier from duty on one day and assigning
an auxiliary assistant to the performance of all the work on the route
on that day.
Subsection (d) : The current provisions of section 3543(d), title 39,
United States Code, are to be reenacted as subsection 303(k).
Subsection (d) of section 3543 is amended to require the Postmaster
General to make inspections of rural routes to serve as the basis for
determining service classification. Under paragraph (1), the Post-
master General is required to provide for annual inspections. Undel?
paragraph (2) he is required to provide for additional inspections
initiated by management or at the request of a rural carrier for re-
classification duo to service changes. Under paragraph (3) the Post-
master General is required to determine the tentative service classi-
fication of a new route to be followed by inspection.
Subsection (e): This subsection amends section 3543(f) of title 39
of the code, which currently relates to allowances for equipment
maintenance. 'rhe present allowance for routes other tlian lleavy-
dutyy routes is $3.50 per day or 10 cents per mile, whichever is greater;
on heavy-duty routes, the Postmaster General is authorized to pay
an additional allowance up to $2.50 per day. `Vhile retaining 10 cents
a mile as the standard allowance, the proposal increases the minimum
daily allowance to $4 for routes requiring less than 260 stops to serve
the route. Routes requiring more than 260 stops have features
insofar as wear and tear on equipment is concerned, which are similar
to heavy-duty routes; paragraph (2)(B) will provide all such routes
with an equipment allowance comparable to that now available only
on heavy-duty routes.
The system of service classification proposed does not take into Subsection (f) : This amendment to section 3543 of title 39 contains
~iccount differences in the working speed or efficiency of individuals. three provisions.
Carriers who complete their work m less than the standard time The first, subsection (i), changes the method of compensating
assigned to their routes will not be penalized. At the same time, substitute rural carriers. Under the present system, these carriers
carriers who do not meet the average time standards will not be paid are paid at the rate of the carrier in whose absence they are serving.
additional compensation for excess time devoted to the performance Under the new provision, substitute carriers will receive appointments
of reaillar service or the route, at step 1 for the route, and they will earn step increases in the same
Su~~section (c) replaces section 3543(c) of title 39 of the United manner as other substitutes in the postal field service.
States Code. Since service as a substitute rural carrier is not creditable under
Present law authorizes the payment of an additional allowance to present law for step increases, iio credit is given upon conversion fol?
carriers serving heavy duty routes of 61 miles or less in length. In past service in this capacity.
administering this provision of law, the Department has developed The second, subsection (~), authorizes the Postmaster General to
work standards which have been applied to determine eligibility of advance service classifications of rural routes during the Christmas
routes for qualification as heavy-duty routes. The same standards mailing season
have been applied to give relief on overburdened routes for which The third, subsection (k), reenacts subsection (d) of 39 U.S.C. 3543,
heavy duty compensation is either insufficient or not available because which authorizes the payment of additional compensation to carriers
of excess rnilcage. Subsection (c) (1) incorporates these work standards ~, carrying pouch mail to intermediate post offices or for serving inter-
which contain time values for various types of mail handled as well ! setting loop routes
as for miles of route and boxes served. The standards will be applied Section 304: This section amends section 3544(x) of title 39 of the
"' utt tttttit 1"~t~r,. 1 for postmasters in fourth-class post oflces
Under certain circumstances a carrie~pydaeegl~ra~?l~m?~rea~3/03/28 :CIA-RDP80B01 ~~~1~2~1 9
ante to help in the office work or on the route. Subsection (c) (2) continues to re ate compensation on receipts categories.
provides a conversion factor for reducing work requirements on rural f The schedule for the 1963 phase provides minimum compensation
I at the rate of $1.25 ncr hour, the new statutory minimun. wage, for
 Approved For Release 2003/03/28 : CI -RDP80B01676R003100200018-9
26 FEDERAL STATUTORY SALARY SYSTEMS FEDERAL STATUTORY SALARY SYSTEMS
2 hours of daily employment in the lowest receipts category. In the Comparison of promotion benefits (lsss phase)
next six categories, the same minimum rate is provided for graduated
Level to Present step Amount of Proposed
Level and step which in higher ]ncrease hlghep level
hours of daily employment. The minimum hourly rate for the highest
promoted level
category, based on 8 hours of daily service, is $1.41. Like the PFS
schedule, within-grade step differentials average approximately 3.3
percent and the range from step 1 to step 13 rs approximately 40
percent.
The 1965 schedule, providing for full reform, will raise the minimum
pay of postmasters in fourth-class post offices to $1.30 per hour.
Section 305: This section amends 39 U.S.C. 3552, whrch relates to
advancement of employees by step-increases.
Under subsection (a), the schedule of advancement is established.
The present schedule of advancement provides for increases based on
52 weela of service in a step until step 7, the highest step in the ex-
isting schedule, is reached. Thus, an employee entering on duty in
PFS--4, step 1, would reach step 7 upon completion of six 52-weer:
periods, or after approximately 6 years of service m that level. Under
the new schedule, the employee wrll be advanced to steps 2, 3, and 4,
on the basis of 52 weeks of service in each step, to steps 5, 6, and 7, on
the basis of 104 weeks of service, and to steps 8 and above, on the
basis of 156 weeks of service. To reach step 7 under the new schedule,
an employee entering on duty in PFS-4, step 1, would complete nearly
9 years of service; he would reach step 13, the last step for his level,
upon completion of nearly 27 years of servrce.
Subsection (b), 39 U.S.C. 3552, codifies and makes permanent a
provision of law common to salary increase legislation affecting postal
employees. In effect, it provides that statutory increases rn basic
compensation are not equivalent increases for purposes of determining
eligibility for advancement under subsection (a).
Subsection (c) reenacts the last sentence of 39 U.S.C. 3552 (a) as
a separate subsection.
The current provisions of 39 U.S.C. 3552 (b) are, in effect, repealed
by this amendment. Under present service conditions, withholding
of advaneernent by step-increases from substitutes in PFS-5 assigned
to road duty cannot be ~ustificd.
Section 306: This section amends 39 U.S.C. 3554 by deletion of the
phrase "under the postal field service schedule" and insertion in its
place, the phrase, "in the postal field service." The purpose of this
change is to permit the payment of compensation to temporary rural
carriers serving under limited appointments in the same manner as to
other postal field service employees. In effect, this change will
continue the present method of compensation of these carriers.
Section 307: This section amends 39 U.S.C. 3559 in its entirety.
The present method of promotion guarantees to each employee a
minimum increase equivalent to the difference between step 1 of the
level from which promoted and step 1 of the level immediately
above. The new provision will guarantee to each employee pro-
moted to a higher level a minimum increase equivalent to two step
increases of the level from which promoted; if the employee is promoted
to a level more than two levels above the level of his position, he will
receive a minimum increase of three step increases.
Approved For Release 2003/03/28 : CI
Proposed
lnercaso
PFS-3, step 3--------------------
PFS-4-- --
PFS-5
Step 3-----
Step ~-------
$420
260
Step 3--___--
Step 7-------
$3i0
455
PFS-4, step 7_______-----------
PFS-4, step 7--------------------
_-.---
PFS-7 _---
Step 3_---_--
435
425
Step 2-------
Step 4-____-_
PFS-6, step 4-------------------
------------------
step 7
PFS-7
PFS-7_ ----
PFS-B_-----
Step 4_------
Step 7___----
540
Step 7-------
5r5
5fQ
--
,
PFS-l0, steP 6-------------------
PFS-Ii--___
Step 6______
i90
Steps-____
The provisions of 39 United States Code, section 3559 (b) are, in
effect, repealed by this amendment. Under current law, regular
clerks and carriers in first- and second-class post offices become
eligible for promotion upon reaching the maximum step, step 7, for
their positions, or after 6 years of service. Under the new schedule,
they will reach the maximum step in approximately 27 yetirs. Con-
tinuation of this restriction is not consistent with the new compensa-
tion plan.
Sectron 308: The changes proposed in the amendment to 39 U.S.C.
3560 are conforming changes to make possible continued salary
protection for rural carriers. Premium compensation derived from
assignment to classification E is the equivalent of heavy-duty allow-
ance rn excess of that provided for 40 hours, now excluded from
salary protection.
Sectron 309: The purpose of this amendment is to remove the
limitation on the present authority of the Postmaster General with
respect to the establishment or extension of star routes in areas
previously served by rural routes. Under present law, such substi-
tution may not be made if a qualified rural carrier can be obtained.
This change will permit the Postmaster General to exercise adminis-
trative discretion In the selection of the more efficient or economical
service.
Section 310: The new salary plan abolishes longevity steps anti
provides for recognition of long service through addztron of wlthin-
grade steps. Therefore, the distinction made in sections 3101(5)
and 3101(6) of title 39, between basic salary and basic compensation,
is no longer valid.
Section 311: The purpose of the amendment to 39 U.S.C.:3541 i~
to provide a method for determining the daily rate of compensation
of substitute rural carriers. By using a factor of 304, the number
of days of service on a rural route in a year, holiday pay is prorated
throughout the year against the actual service of the substitute rural
carrier. In this respect, pay treatment of these employees will bi?
consistent with that afforded other substitute employees.
Section 312: 'T'his section provides the rules for the conversion of
existing salaries to the new pay schedules which would become effective
o^ the first clay of the first pay period which begins on or after J:uwar~
1, 1963.
Postal field service, schedule.-The conversion method provided b~
subsection (a) of this section will place each employee rn the YI'
-RDP80B0~1 1 , in tho numerical sty pp ~ pich ho attpins imme~drately prior tt
4L~~~i~~~~?Qal~~lew a ran. Em loyees in PFS-1 tVlrou~l
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2g FEDERAL STATUTORY SALARY SYSTEMS
PFS-5 will be given an additional numerical step for each longevity
step attained immediately prior to conversion.
Employees in PFS-6 through PFS-18 who have reached step 7 for
their positions will receive a single additional step if they have attained
one or more longevity steps immediately prior to the effective date
of the schedule. Employees in PFS-19 and PFS-20 will receive no
additional steps because of longevity steps attained prior to conversion.
Application of these provislons to selected cases are shown below:
Present ]evol and step
Present
New
New salary
Present level and step
Present
New
New salary
salary
step
(1983 phase)
salary
step
(1983 phase)
YFS-1,6_____________
$4,065
6
$4,165
PFS~,5A___________
$5,775
5
$6,005
PFS-2,7B___________
4,680
9
4,895
PFS-6,5C___________
5,975
5
6,005
PFS-4,1C___________
4,645
4
4,975
PFS-7,7A__________
6,580
8
7.070
1'FS-4,7A___:_______
5,405
8
5,57b
PFS-7,7C__.________
8,780
8
7,070
PFS-4,7C_________
5,605
10
5,875
PFS-10,7____________
8,310
7
8,700
Credit is preserved toward the next within-grade or automatic step
increase earned by employees prior to conversion if they were not
given an additional step increase by reason of longevity steps attained
prior to conversion. Such credit will be appplied toward fulfillment of
the requirements of the new advancement schedulel. No creidt earned
toward longevity steps will be carried over.
Rural carrier schedule.-subsection (b) provides a conversion method
for rural carriers similar to that afforded .employees in PFS-1
through PFS-5. Each carrier will be assigned to his comes onding
numerical step for the service classification of his route. Adpditional
steps will be g~lven for longevity steps attained immediately prior to
conversion. Credit toward the next automatic step is retained, as for
PFS employees.
Fourth-class office schedule.-The conversion method provided in
subsection (c) for postmasters in fourth-class offices is the same as
that provided for employees in PFS-1 through PFS-5; that is, each
postmaster will be placed in the corresponding numerical step for his
receipts category, and he will receive an additional step for each longev-
ity step attained prior to the date of conversion.
Subsection (d) provides a rnethod for adjusting salaries of employees
whose existing rate is higher than the rate provided in subsections (a),
(b), ilnd (c). Where the existing compensation falls within the new
range for their ~lositions, they will be placed in the first step which
exceeds their existing compensation. If the existing compensation is
greater then any step for the range, the existing compensation will be
continued as a saved rate. Among employees affected by this provi-
sion are those whose present rates of compensation are saved or pro-
tected at rates in excess of the present maxrmum scheduled rates for
their positions. Because of the major change in the basis for estab-
lishing compensation on rural routes, rnore rural carriers are affected
by this provision than are employees in the two other schedules.
Examples of conversions to the RCS, showing application of this pro-
vision, are given below. Where the existing salary is greater than the
Examples of salary conversion, RCS schedule. (1.86,3. phase)
late for the step to which he would ot,~lerwlse b~ ~1sslgq~e~~~h~~l fi~~103/28 : Cld-RDP80B~l~~it$F2~f~3'~b?2t~Ft~~t? where the entranco t?ate is less than the
placed in the first step which exceeds /~~~~l~~tt~'~~ll{~ tt lfi current sa ary of a wel -qualified a
rovisions
ointee
Both of those
pp
.
p
i will require implementation by regulations to bo issued by the Post-
master Gonoral.
Present
6ervice
Rate for comes-
Stepp to
New coin-
' :Present route and step
compensa-
classlfi?
ponding step
which con-
pensation
lion
cation
verted
27 miles, step6--------------------
$4,835
A_-?---_
Step 6, $4,328.00. --
9______-_-_--
$4,859.00
42 miles, step 7C, H.D. 43 hours_ __
8, 061
E, 4___._
Step 10, $7,231.78__
30_ ________,_
7, 231.78
58miles,step2____________________
4,994
B__:....
SteP2,$4,108.00___
9_.__.._...._
b, 027.00
58 miles.atePb--------------------
5,411
D---_---
8LeP5,$5,180.00-_-
7?-----_?--
5.481.00
72 miles, step 7B-------------------
8, 225
E, L---_
Step 9, $6,359.88_--
9__----_--_--
8, 359.88
85 miles, step 7A___________________
8,437
C_______
Step B, $5,254.00___
Saved rate..
8,437.00
108 miles, step 7-------------------
8,889
D---_-._
.Step 7, $5,461.00-_-
_-.__d?-_-?-_-
8, 889.00
the schedulo of automatic advancement provided in 39 U.S.C. 35 52
in recognition of exceptional competence, and (2) exceptions to the
Section 313: This section provides for the conversion of employees
to the schedules to become effective in~964 according to the numerical
step attained immediately prior to t e date of conversion. Where
existing compensation exceeds the rate for the numerical step, the
existing compensation is retained if conversion cannot be made to :1
scheduled step.
Section 314: This section provides for the conversion of employees
to the schedules to become effective in 1965 according to the numerical
step attained immediately prior to the date of conversion. Where
existing compensation exceeds the rate for the numerical step, the.
existing compensation is retained if conversion cannot be made to a
scheduled step.
Section 315: Section 201 of the act of September 21, 1961, 75 Stilt.
569 (Public Law 87-270), provides, among other things, that employ-
ees in protected rates will be given statutory increases applicable to
the salary standing from which reduced. The purpose of section 315
is to make clear that, inasmuch as the new salary plan involves basic
structural changes for employees now under the PFS, RCS, and FOS
schedules, this particular feature of 39 U.S.C. 3560 cannot be given
application at the time of conversion to the new schedules. Salaries
of employees in protected rates as of the date of conversion will be
converted under sections 312, 313, and 314 of this act, as appropriate.
Section 316: This section contains an amendment to section 3335
of title 39 of the code, which will clarify the intent of Congress with
respect to the authority of the Postmaster General to pay higher level
compensation. This amendment is required to remove objections of
the Comptroller General, as stated in his decision of February 1, 1962
(B-138999), to the Department's application of the present statutory-
provision.
Section 317: This section repeals those provisions of Public Law
86-568, which contained salary increases for postal field service em-
ployees, effective July 9, 1960. It also repeals 39 U.S.C. 3558, which
provides for the present system of longevity compensation; the new
pay schedules supersede the longevity system in its entirety.
Section 318: This section contains two new compensation rules
which will permit the Postmaster General to make (1) exceptions to
provisions of 39 U.S.C. 3551(:1,) whero an appointee has extra qullli-
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30 FEDERAL STATUTORY SALARY SYSTEMS
Section 319: This section contains two conforming changes to the
table of contents of title 39, United States Code.
Section 320: This section provides that the provisions of this title
will become effective on the first day of the first pay period which
begins on or after January 1, 1963.
TITLE IV-DEPARTMENT OF MEDICINE AND SURGERY IN THE VETERANS'
RDP80B01676R003100200018-9
FEDERAL STATUTORX ,SALARY SYBTEMS_ 31
of four years subject to removal by the Administrator of Veterans'
Affairs for cause, and (2) that reappointments may be made for suc-
cessive like periods, are continued.
Section 402: This section amends section 4107 of title 38 of the
Code. In subsection (a) of section 4107, the former schedules en-
titled "Medical Service" and "Dental Service" have been combined
and retitled "Ph sician and Dentist Schedule." The existing sched-
ules have provided identical grades and pay scales and their con-
The Junior grade of the former
ose
ur
no
i
.
p
p
on serves
tinued separat
Title IV relates to physicians dentists and Ilurses in the De art- schedules has been eliminated and, two new grades-the Director
meat of Medicine and Surgery of the Veterans' Administration which grade and Executive rade-have been established. The schedule
are subject to a separate pay system prescribed by chapter 73 Hof title now titled "Nursing Service" has been retitled "Nurse Schedule."
38, United States Code. The revisions made by this title not only 'rwo new grades-the Assistant Director grade and Chief grade-have
take into account the Bureau of Labor Statistics findings but also been established and the former ades of Assistant Director and
' enior grade" and "Intermediate
reflect the results of extensive studies of the Veterans' Administration Senior grade have been retitled "
concerning the need for a modernization of the entire grade and grade," respectively. The new grade of Assistant Director is intended
salary structure of the Department of Medicine and Surgery to to recognize the special responsibilities assigned a few individuals in
recognize the numerous organizational and functional changes which the Nursing Service and will absorb the former statutory position of
De ut Director of Nursin Service. The Chief grade will primarily
have taken place in the Department since its inception in 1946. p y
In recognition of the nature of their occupations and the variability be used for nurses who qua ify for and are assigned in positions com-
of assignments in a clinical setting, the grade and salary of physicians, parable to that of a chief nurse at one of the larger hospitals.
dentists, and nurses in the Department of Medicine and Surgery is Subsection (a) also provides the pay scales for the physician and
determined on the basis of an individual's qualifications and profes- dentist schedule and the nurse schedule to be effective on the first day
sional attainment. Notwithstanding this fact, comparison of the ~ of the first pay period beginning on or after January 1 of 1963, 1964,
qualification and skill requirements for like occupations under the ~ and 1965.
Classification Act, corroborate extension to the Department of Subsection (b) of section 4107 of title 38 of the United States Code
1\-Iedicine and Surgery Schedules in the manner uidicated in the bill specifies the intended use of the two new grades-Director and Execu-
of the salary scale proposed for the Classification Act system. Appro- ~ tive-in the physician and dentist schedule. It provides that no
riate differentiation in a between reco nized skill levels as well person may hold the Director grade unless he is servin as a director
as executive and managerpial levels is maintained. Internal relation- of a hospital, domiciliary, center, or outpatient clinic independent),
ships of pay between the D.M. & S. system and the Classification Act and that no person may hold the Executive grade unless he holds the
system are also continued. position of chief of staff at a hospital, center, or outpatient clinic
Section 401: This section amends section 4103 of title 38 of the (independent), or the position of Clinic Director, outpatient clinic, or
United 5tatca Code. It reduces the maximum number of Assistant comparable position. The establishment of these two new grades
Chief Medical Directors from eight to five and modifies the provisions obviates the situation in which individuals charged with the responsi-
pertaining to directors of service and chiefs of division. In lieu of i bility of entire hospital operations received less compensation than
these positions, a new position level of Medical Du?ector is established. their subordinates.
The salaries of the Chiel' Medical Director, the Deputy Chief Medical Section 403: This section which amends section 4108 of title 38 of
Director, the Assistant Chief Medical Directors, the Director of the United States Code repeals the present provision providing i'or :ui
Nursing Service, the Chief Pharmacist and Chief Dietitian are appro- allowance equal to 15 percent of the pay of persons rated as medical,
priately adjusted iu line with other increases proposed by the bill. surgical, or dental specialists under the provisions of that section.
The statutory positions of the Deputy Director of Nursing Service, since the latitude which will be afforded within the pay range of each
Chief Physical Therapist, and Chief Occupational Therapist are ~ grade will permit appropriate recognition of specially qualified indi-
viduals. The current subsection (b) of 4107 of title 38, without
eliminated. The duties of the first-named position will be filled by I change, has been redesignated as section 4108 for purpose of greater
a. nurse of the Assistant Director grade. 'lhe salaries for the positions ~ clarit and as a matter of drafting convenience.
of Chief Physical Therapist and Chief Occupational Therapist will be 'i y
Subsection (b) of section 403 is a perfecting amendnieut to tb~
set in the future under the Classification Act. Appropriate salary ' table of contents at the head of chapter 73 of title 3S, to reflect the
rates and schedules to be effective on the first day of the first pay ~ change in the catchline of section 4108.
period beginning on or after January 1, 1963, January 1, 1964, and Section 404: This section amends section 4111(b) of title 3S t~
January 1, 1965, are provided for the Chief Medical Director, the provide that the per anuuni salary rate of a director of a hospit~il
Depute Chief Medical Director, Assistant Chief Medical Directors, ~ ~ ~~~~~ ~~io is not a physician iu the medical service
Medical Directors, the Director of ~k~'i~1~~~v41'e~l(~'~1~+! Y41G13ff~/28 : CIA-RDP80BO~~~n ~e1 ~ C, rate of salary he would receive if such service
cist, rind the Chief Dietitian. Present provisions that appointments as ii director had been as a. physician in the director grade. EscrP~
under this section of the. United States Code (1) shall be for a period
 Approved For Release 2003/03/28 : CI
32 FEDERAL ST?,TTJ~POEtY SALARY SYSTEMS
with respect to change in-rate of salary the subsection does not affect
the allocation of any such position to any grade of the Classification
Act or the application of the Performance bating Act of 1950 to any
individual.
Section 405: This section provides that title IV shall become effec-
tive on the first day of the first pay period which begins on or after
January 1, 1963, except as otherwise expressly provided.
TITLE V-THE FOREIGN SERVICE ACT OF 1946
Section 501: This section provides that title V may be cited as the
"Foreign Service Salary Reform Act of 1962."
Section 502: This section amends section 412 of the Foreign Service
Act by adjusting upward the per annum salary rates for career
ambassador, career minister, and the additional eight classes of Foreign
Service officers. No change is made in the number of classes and,
with the exception of class I, which has two salary rates, the general
pattern of seven rates for each class is continued. As in other seo-
bons of this title, the schedules of per annum salary rates, provided
by this section, are to be effective in three phases, in 1963, 1964, and
1965.
Section 503: This section amends section 415 of the Foreign Service
Act of 1946 by revising the structure of the Foreign Service staff
salaa?v schedule a.nd embodying certain changes directly comparable
to those made in the revision of the Classification Act.
There are at present 22 classes in the Foreign Service staff schedule.
The proposed schedule of 10 classes would eliminate the unnecessary
and seldom used classes in the current schedule. Since custodial,
maintenance, and the most routine clerical functions are performed
almost exclusively by alien employees at Foreign Service posts, there
is little need for U.S.-citizen employees at the level of duties repre-
sented by classes 14 through 22. Since classes 14 through 22 are to
be abolished, it will be necessary to give the Secretary the authority
contained in proposed section 415 (b) in order that persons in such
classes may continue to be employed at appropriate rates. The new
section 415(b) would give the Department all needed flexibility in this
respect, should it be desirable in unusual circumstances, to employ
American personnel at lower rates for duties less difficult than those
of FSS-10. The proposed 10-class schedule would provide areason-
ablenumber of levels in relation to the duties and responsibilities which
are carried out by staff personnel and in addition would provide a more
adequate prornotron ladder by reducing and consolidating to a major
extent overlapping classes. Within the proposed Foreign Service
staff salary schedule, 10 salary rates are proposed for each class. This
makes possible within-class increases over a longer period of time for
staff personnel. The lU rate salary schedule will also replace the
present provisions for longevity rates for staff personnel contained in
section 642 (b) of the Foreign Service Act which is repealed by a later
FEDE~tAL STATUTORY, SALARY SYSTEMS 33
Section 505: This section-repeals section 642(b) of the Foreign
Service Act relating to longevity step increases for Foreign Service
staff officers .and employees and makes minor conforming changes in
the heading and identification of the section in the Foreign Service Act.
Since .the new Foreign Service staff schedule provides ten rates for
within-class increases this section is no longer needed.
Section 506: This section provides that except as otherwise ex-
pressly provided, title V shall become effective on the first day of the
first; pay period which begins on or after January 1, 1963.
TITLE VI-REPEAL OF SPECIFIC STATUTORY SALARIES
This title repeals a number of statutory salaries, in the Federal
Executive Pay Act and other special statutes. Positions currently
being paid at these salaries would come under the Classification Act
schedule, many of them in new grades GS-19, and GS-20. These
positions are sinilar to positions generally compensated under the
Classification Act system but had been granted higher compensation
under the Executive Pay Act or other statutes. Addition of new
grades GS-19 and GS-20 and establishing top Classification Act
salaries at levels more nearly comparable to those in private enter-
prise make it possible to restore these positions to the general salary
system.
TITLE VII-MISCELLANEOUS PROVISIONS
This title increases the salary limitations for certain scientific and
professional positions to accord with the salary ranges of the general
schedule of the Classification Act. In most cases the salary range
stated in the laws which are amended is 812,500 minimum and 819,000
maximum. The amendments proposed would tie the minimum t,o the
minimum rate of grade GS-16 and the maximum to grade 18 of the
general schedule.
Section 701 amends the salary range in section 2(b) of Public Law
313, as amended, as indicated above.
Section 702 amends section 1581(b) of title 10 of the United States
Code, relating to certain scientific or professional positions in the
Department of Defense, to provide a minimum rate for such positions
as the minimum rate of CxS-16 and a maximum rate equivalent to
GS-18 pay.
Section 703 amends the proviso in the first sentence of section
208 (g) of the Public Health Service Act, as amended, which relates
to compensation rates of certain scientific, professional, and adminis-
trative personnel in the Public Health Service to provide a minimum
rate of grade GS-16 and a maximum at the pay of grade GS-18.
Section 704 establishes a maximum rate, equivalent to the pay of
grade GS-18 for five positions of technical experts in the Department
of Agriculture engaged in research in foot-and-mouth and other
animal diseases.
section of this bill. Section 504 prescribes three schedules of per ~ Section 705 amends section 203(b)(2) of the National Aeronautics
annum salaries for staff officers and en~~~~~ ~~~~~~~211~6~/03/28:CIA-RDP8010`:'14~Op~ovido that the Administrato P ~ y fi~ the
1964, and 1965. ra es or cer am exce e ositions at not to exceed the a of rade
Section 504: This section provides for the conversion of Foreign i GS-18 of the Classification Act. For 30 of theso positions (which
Service personnel from their present salary rates to those established may now be paid up to 821,000), tho Administrator may, on or after
 Approved For Release 2003/03/28 :CIA-RDP80B01676R003100200018-9
34 FEDERAL STATUTORY SALARY SYSTEMS
for grade GS-18 which will be effective under the bill on January 1,
1965.
Section 706 amends the proviso in section 161 (d) of the Atomic
Energy Act of 1954, as amended, to permit the fixing of salaries of
scientific and technical personnel up to a limit of the pay of grade 18
of the General Schedule of the Classification Act. The present limit
is $19,000.
Section 707 establishes the effective date of title VII as the first
day of the first pay period which begins on or after January 1, 1963.
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 Approved For Release 2003/03/28 :CIA-RDP80B01676R003100200018-9
[COMMITTEE PRINT]
SUMMARY ANALYSIS
OF
THE PRESIDENT'S PROPOSAL
FOR
REFORM OF FEDERAL STATUTORY
SALARY SYSTEMS
(H.R. 10480)
COMMITTEE ON POST OFFICE AND
CIVIL SERVICE
HOUSE OF REPRESENTATIVES
PREPARED BY THE
UNITED STATES CIVIL SERVICE COMMISSION
U.S. GOVERNMENT PRINTI2IG OFFICE
81263 WASffiNGTON : 1962
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 Approved For Release 2003/03/28 : CAA-RDP80B01676R003100200018-9
COMMITTEE ON POST OFFICE AND CIVIL SERVICE
i
TOM MURRAY, Tennessee, Chairman
JA\4I:S H. DIOHRISON, i,ouislana
JAMF:S C. DAMS, GcorKia
KATIIRl't: E. GRANAH:IN
Pennsylcw~ia
ROBERT J. CORBF.TT, Pennsylvania
H. It. GROSS, Iowa
JOEL T
BROYIIILL
Vi
i
i
CONTENT S
-
,
TIIADDEUS J, pL'LSKI, New York
DAVID N. HENDERSON, North Carolina
ARNOLD OLSEN,\fontan,i
JOSEPH P. ADDABBO,NcwYork
RICIIARD II. ICHORD, Missouri
CATIIERINE D. NORREI,L, Arkansas
.
,
rg
n
a
AUGUST E. JOIIANSEN, Michigan
GLF,NN CUNNINGHAM, Nebraska
GEORGE M. WALLHAUSER,NewJersey
ROBERT R. BARRY, New York
KATHARINE ST. GEORGE, New York
JOHN H. ROUSSELOT, Cnlifornia
-- P
Introduction___________________________________________________
I. Approach to pay reform______________________________________.,_
Ii, Setting Federal salaries at private enterprise levels_ _ _ _ _ _ _ _ _ _ _ _ __ _ _
III. The President's legislative proposal_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
SYtl
I
3
S
ll
MORRIS K. UDALL,.lrizonu
DOMINICh' V. DANIELS, New Jersey
EDWARD J. DERWINSKI,Dlinois
ROBERT F. ELL$WORTH, Kansas
IV. ConcluSion________________________________________________
Appendix 1. Classification Act salary schedules____ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
lg
17
LINDLEY BECI:woRTII,'rexas
Appendix 2. Postal field service salary schedules_______________________
19
WALTER LI. MoI:LEER, chic
Appendix 3. Examples of State, local government, and university salaries_
23
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SUMMARY ANALYSIS OF THE PRESIDENT'S PROPOSAL FOR
REFORM OF FEDERAL STATUTORY SALARY SYSTEMS
(Prepared by the U.s. Civil Service Commission)
INTRODUCTION
One and a half million career employees are paid under Federal
statutory pay systems at an annual payroll cost of about $10 billion.
This outline presents the President's proposal for reform of these
systems. It presents-
The requisites of a sound Federal salary system and the short-
comings of present statutory systems.
Basic principles, standards, and methods for setting and
controlling Federal salaries.
The major features of a proposed bill incorporating athree-
phase program for placing reforms in effect.
The functions of a public salary system are to facilitate hiring and
retention of a high quality level. of Government personnel and to
control payroll expenditures, with equity to the employee and the
taxpayer.
The standard proposed for ]'udging Federal salaries is the "national
average" private enterprise level, a conservative quality standard
compared to a quality standard common among leading private firms
of "better than our competitors."
SCOPE OF PROP08AL
This proposal would reform civilian pay systems where pay is fixed
by Federal statute:
The proposal is based on principles in accord with those which now
govern the wage-board system which covers about 660,000 Federal
trades and crafts workers.
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 Approved For Release 2003/03/28 :CIA-RDP80B01676ROOFOI~ 2oF FEDERAL STATIITORY SALARY SY8TIDM8 3
2 REFORM OF FEDERAL STATBTORY SALARY SYSTEMS
Responsibility to the public-
To pay enough to permit competent staffing, so as..not to en-
danger the national security and the needed public service.
To pay no more than is needed for these objectives.
Equity for the Federal employee-
With other Federal employees.
With his equals throughout the national economy.
Executive discretion-
To adapt pay to the individual and to special needs.
To use pay for motivation.
To initiate general adjustments as required.
Fulfillment of the responsibility for competent staffing is increas-
ingly dif&cult. Low Federal rates place the Government at a serious
disadvantage in recruitment, especially with respect to professional
and managerial talent.
Many inequities exist-
Among Federal pay systems, where somo supervisors under one
system are paid less than their subordinates who are under
another system.
Within systems, where pay structures have decayed, leaving
inadequate pay drstinctions and pay incentives and developing
forms of inequity.
Between the Federal employee and his equals throughout the
national economy. Only in a few of the lower grades has Federal
pay kept pace with average private enterprise pay rates.
Little executive discretion is permitted in pay administration under
the Classification Act and postal pay statute.
The executive branch has heretofore not fully exercised either its
natural ranagerial or its statutory responsibility for leadership on
pay.
DISTRIBVfION OF ,FULIr-TIME FEDERAL EI~LOYEES
BY PAY SYSTEM - 196,1
~'OTAL 2,400,OCm
Federal pay reform should be based upon two principles and upon
establishment of executive branch rnachinery for maintaining the
principles in effect.
Principles
The comparability principle,.-Federal salary rates shall be com-
parable with private enterprise rates for the same levels of work.
Adoption of this principle assures equity for the Federal employee
with his equals throughout the national economy, provides more
nearly competitive rates for recruitment, and supplies an objective
yardstick for irnrnediate reform and for subsequent adjustments of
the level of Federal salaries.
The iritern,~l alinement pri,7~.ciples-'T'here shall bo equal pay for
equal work, and pap distinctions in heaping with work and perform-
Approved For Release 2003/03/28 :CIA-RDP80~~9~~'~~D~39'bb200018-9
 4 ~FORIti4; -OB'" T'EDERAL- STATL7~~~r~t~~Y'4S~e 2003/O3/28 : CIA-RDP8OBO1676~g~~g~o~~~~,L STATUTORY SALARY sYSTEaas b
This principle is already stated in the current Classification Act
and other Federal salary statutes. Making it effective fulfills the
requisite of equity among Federal employees and constitutes the
reform of pay structure and rules.
The establishment of salary schedules should result from the joint
application of the two principles.
Executive branch role
To achieve reform and to maintain sound pay systems with proper
controls, the executive must assess needs regularly and develop pro-
posals for salary adjustments and for other improvements in salary
systems.
The principle of basing Federal salaries on private enterprise rates
is sound.
It provides a logical and factual standard of judgment.
It insures equity and more nearly competitive rates.
It encompasses other legitimate pay factors such as cost of
living, standard of living, and productivity as those factors are
resolved into the "going rate" over bargaining tables throughout
the economy.
The principle has wide acceptance.
The Federal Government first adopted it 100 years ago for
navy yard workers, and has since applied it to all Federal workers
in trades and crafts, to TVA, and to Government work contractors
through the Walsh-Healey and Davis-Bacon Acts.
It is used by corporations, by many State and local governments,
and by some other national governments.
It is feasible to apply the principle.
The BLS national survey of professional, administrative,
technical, and clerical pay provides annually the requisite data
on private enterprise pay.
There are technically valid and established methods for
translating the BLS data into Federal salary levels equivalent
to those of private industry.
The internal alinement principle is now in force as to equal pay for
equal work, but pay distinctions frequently fall short of work and per-
formance distinctions. Federal salary structures require improvement
in this respect.
Differences between salary scales at successive grade levels should
reflect the position classification or other alinement plan. Under the
Classificatiou Act, for etiainple, positions are classified iu work zones
of uniform size ('rem GS-1 through GS-11 and zones of doubled
magnitude from GS-ll through GS-18; salary intervals between
grades should follow the same general pattern.
Within-grade step increases reward and encourage improved per-
formance. Step increases-
Should be of sufficient size to be felt as material incentives.
Should come more rapidly in the first years in a grade, when
performance should improve most; and should come less rapidly
in later years when the aim is to motivate continued good
performance.
Should cover the term of most careers in a given grade.
Policy in use of rates should permit flexibility in their application
within pay schedules, including-
Hiring above the entry rate when the individual's qualifications
warrant.
Extra step increases for extra competence.
Upward adjustment of salary ranges when necessary to enable
the Government to attract and hold well-qualified personnel in
shortage occupations and in rare instances of exceptionally high
pay areas.
The President's role in pay stems from his responsibility as Chief
Executive and under statute:
As Chief Executive he must assess the pay requirements for
competent opperation of the Government.
He must be concerned with equity for the Government em-
ployee who lacks the means available to the private enterprise
empployee for achieving such equity.
He has been enjoined to action by section 1102 of the Classifica-
tion Act of 1949.
He must see to the execution of salary legislation enacted by
Congress.
In order to support the President in his responsibilities for initiating
salary adjustments and improvements in statutory systems, the
executive branch must carry out certain functions:
Compare Federal salary levels with salaries in private en-
terpprise as reported each year by the Bureau of Labor Statistics.
Uonsider the need for revisions in salary structures and policies
in the light of current programs, activities, and problems.
Consult with employee representatives.
Recommend appropriate salary action.
Staff functions in salary matters are now performed as a joint activ-
ity of the Civil Service Commission and the Bureau of the Budget
as a part of their current staff responsibilities to the President.
Approved For Release 2003/03/28 :CIA-RDP8OBO1676ROO31OO2OOO18-9
81203-0^_--2
 Approved For Release 2003/03/28 :CIA-RDP80B01676R003100200018-9
Peremtap
nirre:eatiai.
Q~tCASRq~ Aye
D,P~
(16 ditlmeatial of leu tbaa 30})
~ ~ i 1 1
3 4 5 6 T B 9 l0 11 12 13 lk 15 lb 17
F7i0pO8Ea GLA88II-ZCA1Zalf ACT
1IZ~Ilf-fBtADE 8~P FAOOF~8,4IA11
o Each step increase vouid be 3-i~jf of entry rate.
o Increages for extra cw~eteaoe could speed the
proprssion
1 1 1 1
15 16 17 1@
Approved For Release 2003/03/28 :CIA-RDP80B01676R003100200018-9
 Approved For Release 2003/03/28 :CIA-RDP80B01676R003100200018-9
One category which could not be matched with a specific GS
grade.
DEVELOPING FEDERAL SALARY SCHEDULES AT PRIVATE ENTERPRISE
LEVELS
Th
h
i
l
i
Cl
ifi
i
l
d
B LS national average rates
combined for each OS grade
Curront
cr9so> classi-
ere are t
ree ma or ste s
n
ass
eve
n a
cat
on Act sa
o
ar
P p g y
Clrade
fication Act
schedule at levels comparable with salaries in private firms.
we;ghted cbY
rates c4ch
BLS surveys private enterprise rates and reports national
averages.
Arithmetic
average
Federal pop-
nlatien)
average
rate)
A Classification Act pay line is fitted to the grade averages of
------------------------------
os-1---------------------------
~
u9
~, u9
~, soo
rates reported by BLS,
(35-2_________________________________________________________
,
3,628
3,567
3,815
A ~ilasslficatlOn ACt a SC11eClule 1S COIIStrUCted U on this a ~
p y p P y ~
GS-3_________________________________________________________
GS-4---------------------------------------------------------
4,093
5.027
4,014
4.988
4,075
4,355
hne
OS-7----------------------------------------------------?---
6.648
6.745
5.850
.
(35-9----------------------------------------------------
7, 778
7~ 848
6.930
Salary schedules for other statutory systems are derived by linking
os-11________________________________________________________
a, 457
9,832
8,340
key levels of those systems with appropriate Classification Act grades.
i
os-12________________________________________________________
(IS-13------------------------------------------------------?
11,229
13,152
11,350
1$ 187
9,735
11 415
GS-14----------------------------?--------------------------
15,382
15.804
12,990
BUREAU OF LABOR STATISTICS SURVEY
C}5-15--------------------------------------------------------
19 348
19,343
14,705
The BLS surveys annually, as a part of its comlllunity wage-survey
program, salary rates paid in private enterprise for 70 professional,
administrative, technical, and clerical jobs.
Jobs surveyed-
Consist of work which is essentially the same in Government
and industry .
Occur frequently in both Government and industry.
Arc representative of grades GS-1 through GS-15 of the
Classification Act.
Salary information is collected in-
Eighty metropolitan areas, selected to be representative. of all
U.S. metropolitan areas.
All industries which are major employers of the occupations
surveyed: ~Zanufacturing, public utilities, wholesale and retail
trade, finance, and some service industries.
Establishments with 250 or more employees, selected to be
representative of industries and areas:
Clerical and technical data collected from 6,000 establish-
ments.
Professional and administrative data collected from 1,600
establishments.
TRANSLATION OF BLS DATA INTO A CLASSIFICATION ACT PRIVATE
ENTERPRISE EQUIVALENT PAY LINP:
National average rates for jobs matching each Classification Act
grade were combined into a grade average. Some BLS data was
screened out of consideration-
For grisPxl's
e
any
-
:- 21 carairr xI?u RAS79
-aasliiyr cl.~ssnlcexlca ~cr
2x sT~A
x
R
4
,I
a 1.n
-'-PALLIifQ Y~JIIIA1hlfP i'0
rxrvertlxrs~xlsa lavxls
i
i'
/~
Approved For Release 2003/03/28 :CIA-RDP80B01676R003100200018-9
 Approved For Release 2003/03/28 :CIA-RDP80B01676R003100200018-9
1O REFORM OF FEDERAL STATUTORY SALARY SYSTEMS
Characteristics of Classification Act private enterprise equivalent pay line
Grade
C3rade aver-
ages of private
enterprise
rates
Rates on
lino of com-
potability
Intervals
between
levels of same
magnitude
Increase
above current
4th rate of
grade
Percent
Percent
(IS-1---------------------------------?---??-
$3,119
$3,300
_--
--?-----
--
- ---------
QS-2-?----------------------------------?___
3,628
3,705
--------------
--------------
6S-3___________________________________________
4,093
4,150
25.8
1.8
GS-4------------------------------^-------^---
C}5-5------------------------------------?-----
b, 027
?------------
4,635
5,170
--?----------
24.6
8.4
8.8
QS-6-------------------------------------------
(IS-7---------^--------------------------?--
--------------
8, 848
5, 760
8, 380
--------------
23.4
8.2
9.1
(15-8----------------?--------------------?--
CIS-9 ------------------------------------------
---?^--------
7,776
7,065
7,800
-._..?--?-
22.2
10.7
12.6
(35-10----------------?---^--?---------------
(}S-I1--?------------'-------------------------
------------?
9,457
8, 580
9.435
--------------
21.0
14.8
13.1
C15-12__________________________________________
11,229
11,305
19.8
18.1
C7S-13------------------------------------------
13,152
13,40b
18.6
17.4
(15-14__________________________________________
15,382
15,735
17.4
21.1
cI5-15__________________________________________
19,348
18,285
16.2
24.3
C35-16-------------?----------------------__-.-
^--^--------
21, 030
15.0
31.2
OS-17--------------?---------------------?_..
--------------
23,930
13.8
38.2
C1S-18----------------------------------------?
--------------
26,945
12.8
32.4
There were no nationally representative salary data for grades
above GS-15. The rates at these grades were determined by exten-
sion of the line on the basis of the internal alinement principle. The
upper end of the line thus derived was then tested against the rates
found in the 1960 Civil Service Commission study of 21 large com-
panies, and the line was found to run well below rates paid in these
colnpauics.
The Commission study had found that the 21 companies' pay rates
for a majority of the positions studied at each level fell within these
brackets:
Pay bracket Jor maJority ~
oJpositiona studied in EI
Classification Act grade for equivalent responsibilities: companies
GS-16--------------------------------------------- $20,000-$30,000
GS-17--------------------------------------------- 27, 500- 37, 500
GS-18--------------------------------------------- 32,500- 45,000
~ Minority of Jobs paid above or below these ranges were about equally distributed between those above
and those below.
CLASSIFICATION ACT PRIVATE ENTERPRISE EQUIVALENT SALARY
SCHEDULE
The Classification Act salary schedule at levels comparable to salary
levels in private firms was constructed by adopting the rates on the
private enterprise equivalent pay line as the fourth rates of corre-
sponding Classification Act grades, because-
BLS reports average salaries (including salaries of people with
both long and short service in job categories);
Fourth rate of grade best represents similar average rates of
Classification Act employees.
The schedule was developed from the fourth rates, using the within-
grade structural features of an entry rate and nine increases of 33a
percent each.
REFORM OF FEDERAL STATUTORY SALARY SYSTEMS 11
EXTENDING PRIVATE ENTERPRISE EQUIVALENT SALARIES TO OTHER
FEDERAL SYSTEMS
The BLS survey furnishes private enterprise solary data for occu-
pations representative of the Classification Act. The special types
of positions under other statutory salary systems have few, if any,
counterparts in private firms. The principle of Federal salaries com-
parable to those in private employment was extended to other Federal
systems by linking several key levels of each system with equivalent
Classification Act grades.
Linkage is based in most cases on an evaluation of duties, responsi-
bilities, and qualification requirements at key levels of other systems
and a determination of their appropriate GS grades under the Classi-
fication Act. -It also takes into account other factors which should
affect pay, such as opportunities for advancement, career patterns,
and special requirements of the service concerned. All lin':ages were
concurred in by the Bureau of the Budget, the Civil Service Com-
mission, and the department or agency concerned.
For each key level thus linked with a Classification Act grade, the
fourth salary rate of the GS ggrade was adopted as the fourth rate of
the linked level; or a GS grade's single rate became the single rate of
the related level in the other system.
Salary rates for other levels of the system concerned were developed
in accordance with the internal alinement suited to conditions and
needs of the specific service.
The bill would-
Place statutory salary schedules on a basis of comparability
with private enterprise salary levels.
Improve the salary structures of statutory systems.
Provide needed flexibility for salary administration.
Bring under the appropriate system a number of positions now
paid at special statutory rates.
To avoid undue budgetary and economic impact in any one year,
private enterprise equivalent salary levels would be brought about
through athree-phase program.
The bill provides three salary schedules for each system, effec-
tive in January 1963, January 1964, and January 1965, respec-
tively.
Annual cost increases under the 3-year program and under the
first phase effective January 1963, in millions of dollars:
3?yoar pro-
gram
Classiflcation Act-----------------------------------------------------
Postal field service---------------------------------------------------
Veterans' Administration, Department of Medicine and Surgery_.._-
Forolgn Service----------------------------------------?--------------
Approved For Release 2003/03/28 :CIA-RDP80B01676R 0 100200018-9
eta -----------------------------------------------------------
733.7
287.0
31.3
2Q 5
307. 2
11 R. 3
124
lc.I
 Approved For Release 2003/03/28 : C.CIA-RDP80B01676R003100200018-9
Changes in national salary levels before the second phase and
the third phase would be taken into account in the President's
annual recommendation to Congress under title I of the bill.
Structural and other reforms would become effective in January
1963.
A statutory controlling policy : Federal salaries would be based
clearly on the principles that-
(a) There shall be equal pay for substantially equal work,
and pay distinctions shall be maintained in keeping with work
and performance distinctions; and
(b) Federal salary rates shall be comparable with private
enterprise salary rates for the same levels of work.
Implementation would call for-
Systematic annual review of salaries : The President would be
required each year-
To have prepared for him a report comparing Federal
salaries with those in private enterprise as shown by annual
surveys of the Bureau of Labor Statistics.
After seeking views of employee organizations, to report
to Congress this comparison, with any recommendations for
revisions in salary schedules, structure, or policy that he
deems advisable.
Special rates to meet special needs: To enable the Government
to compete for well-qualified personnel under all circumstances,
the President or an agency he designates would be able to estab-
lish special rates when exceptionally high private enterprise rates
in an occupation or a location handicap the Government's
recruitment or retention of well-qualified personnel.
The entire rate range of the grade could be increased, an
improvement over the present section 803 of the Classifica-
tion Act which permits raising only the entrance rate.
The new minimum rate could not be any higher than the
maximum shown for the grade in the statutory salary
schedule.
Policy control by the President over the functions and regu-
lations of the Civil Service Commission and the departmenta
with respect to statutory salary systems.
This title prescribes three salary schedules effective in January 1963,
January 1964, and January 1965, respectively. Appendix 1 includes
an analysis of the three schedules and a copy of each. Salary increase
during the three phase program would-
Be greater at the higher than at the lower grades.
l+br example, 3.7 percent at minimum of GS-1, 9.1 per-
cent at GS-7 fourth rate, 24 percent at GS-15 fourth rate,
and 32 percent at GS-l8.
Aii inescapable feature
grade salaries have been
national levels.
REFORM OF FEDERAL STATUTORY 6ALARY SYSTEMS 13
Upper Federal salaries now lag behind those of many
State and local governments and universities, as shown in
appendix 3.
Provide a minimum increase of $120 (in first phase, $40).
Average 11 percent (in first phase, 4.6 percent.
Structural reforms would-
Regularize most of the differences between salaries at successive
grades.
As a general pattern, percentage differences between
grades would decrease slightly going up the schedule.
Substantial relief for present compression between top
and bottom salaries.
Add two new grade levels, GS-19 and GS-20, primarily for
high-ranking bureau director and other positions now paid spe-
cific statutory salaries under Executive Pay Act or other laws.
Personal action of President, after Civil Service Commis-
sion recommendation, necessary for a position to be placed
in new grades.
Establish uniform 30-percent salary ranges for all except top
five grades.
Entry rate and nine step increases of 3'~ percent, sufficient
to serve as material incentives.
Current longevity rates would be retained but absorbed
within new range for each grade, thus removing unnecessary
now-existing restrictions on their use.
Revise existing length-of-service requirements for within-grade
increases.
One year for each of first three increases, 2 years each for
next three, 3 years each for final three.
Increases most frequent when proficiency on job normally
increases most.
Increases would extend over 18 years, covering longest
periods Classification Act employees spend in a given grade.
i~'ew provisions for unproved pay administration would-
Permit merit increases, not oftener than once a year, under
Commission regulations-
To reward and encourage high-quality performance.
To match established practice in private enterprise,
Authorize, under Commission regulations, appointing indi-
viduals with extra qualifications a.t salaries above minimums of
grad es-
To help attract high-quality personnel to Federal service.
To match methods used by private firms.
Authorize, under Commission regulations, raising the rate of a
supervisor to any rate of his grade necessary to exceed the rate of
a wage-board employee under his supervision.
Some such cases could be expected, even under private
enterprise equivalent sfilaty schedules.
Kemove numerical limitations on GS-16, GS-17, and GS-18.
of the salary reform, as higher
all~~v~~ov~c~~o~tt~e~s~se ~'~/03/28 : CIA-RDP80B01676
Such hrnitations are inconsistent with prmciplo of equal
pay for equal work and pay distinctions in proportion to
~i i~, 5 `G~!~~l9agency authorities would thereby become
unnecessary and would accordingly bo ropealed in this title.
 Approved For Release 2003/03/28 : Cli(~-RDP80B01676R003100200018-9
Assure employees of at least a two step salary increase on
promotion.
A provision in H.R. 1010, passed by House of Representa-
fives August 22, 1961.
Title III prescribes three postal field service salary schedules, effec-
true in January 1963, January 1964, and January 1965, respectively.
Appendix 2 includes an analysis of the three schedules and a copy
of each.
Private enterprise levels were extended to postal field service salaries
by linking salaries of-
PI+S-20 with GS-17.
PFS-11 with GS-11.
PFS-4 with GS-5: Equating PFS- with a grade as high as
GS-5 based not on job evaluation but on considerations of unique
character of postal occupations at this level, absence of oppor-
tunities for promotion, and full career served at this level by
many clerks and carriers.
Fourth rates of the three Classification Act grades were adopted
as the fourth rates of the corresponding PFS levels. Salaries for
other levels were established by ap lying uniform differentials be-
tween successive levels from PFS-1 t~irough PFS-10 and another set
of uniform differentials from PFS-11 through PFS-20.
Salary ranges proposed for postal levels follow the proposed Classifi-
cation Act pattern but are wider at the lower postal levels where,
because of the nature of the postal service, marry employees spend
their entire careers in a single level. Twelve within-grade Increases,
spread over 27 years and amounting to a 40-percent rate range,
would be established for PFS-1 through PFS-6. The new, widened
ranges would embrace the former longevity increases as well as the
former scheduled rates.
New provisions on pay administration would-
Authorize merit increases in recognition of extra competence,
Permit appointments at salaries above minimums of PFS levels
for individuals with extra qualifications.
Guarantee employees at least atwo-step salary increase on
promotion (three steps if promoted three or more grades).
Postal salary increases under the total three-phase program would:
Be greater fit the higher than the lower levels (especially in
1964 and 1965). For example, minimum rate of PFS-1 would
rise 3.5 percent, PFS-20 would rise 26.5 percent.
Average 7.9 percent (in first phase, 3.5 percent).
Although the average increase for the Postal Service as a whole is
lower than for the Classification Act, nevertheless at the most heavily
populated (377,000) postal level, PFS-4, the average increase (7.5
percent) would be greater than at, the corresponding Classification
!let grade GS-5 (6.6 percent).
TITLE IV.-REFORM OF SALARIES OF VETERANS' ADMINISTRATION,
MP:DICISE AND SURGERY
'i'bis title prescribes three sets of salaries for positions of directive
staff, physicians, dentists, and nurses in the Department of Medicine
and Surgery of the Veterans' Administration, effective in January
1963, January 1964, and January 1965, respectively.
Private enterprise levels were extended to these salaries by linking
salaries of-
Chief medical director with GS-20.
Physician, director grade with GS-16.
Physician, associate grade with GS-11.
Director, nursing service with GS-15.
Nurse, junior grade with GS-6.
As at present, salary ranges for intermediate medicine and surgery
grades would generally follow the Classification Act pattern.
This title contains three sets of schedules for Foreign Service
officers and staff, effective in January 1963, January 1964, and
January 1965, respectively.
Private enterprise levels were extended to Foreign Service salaries
by linking--
Career ambassador with GS-20.
FSO-4 with GS-13.
I+'SO-S with GS-7.
FSS-10 with GS-4.
Intervals between salaries at successive levels would follow regu-
larized patterns. The FSS schedule would adopt the Classification
Act 30-percent-rate range pattern. Twenty-percent ranges would
fit Foreign Service officer career patterns, because of the promotion
system and other factors.
As in other statutory systems, and for the same reasons, salfiry
increases would be greatest fit the higher levels.
'Title VI would repeal provisions in the Federal Executive Pay
Act or other statutes fixing specific salaries for a number of bureau
heads and other positions. The positions concerned would thus be
returned to the Classification Act or other appropriate system.
Most positions returned to the Classification Act would pro into new
grades GS-19 and GS-20. ~
This action would be based on the policy that-~
Positions of dep:u?Lment secretaries, deputies, find assistants;
of agency heads and dcpntics; and of chairmen and members oi'
commissions and bofu?ds fire appropriate for inclusion under an
Executive Pay Act.
Other posil~ious, in~~luding bureau hcfrds, should be pfiid under
cfu?cer-type salary systems,
Approved For Release 2003/03/28 : ChA-RDP80B01676R003100200018-9
 Approved For Release 2003/03/28 : C,A-RDP80B01676R003100200018-9
1(j REFO1tM OF FEDERAL 6TATUTORY 6ALARY 8Y6TIDM8
TITLE VII.-SALARIES OF CERTAIN SCIENTIFIC AND PROFESSIONAL
FOSITIONS
This title would increase and automatically relate to the Classifica-
tion Act the salary ranges for specified numbers of positions, mostly
scientific or professional, now provided in Public Law 313 and similar
statutes. Current ranges are generally $12,500 to $19,000.
New provisions would establish a range from the minimum salary
of grade GS-16 to the top salary of Grade GS-18 for these positions.
The ranges would becosne-
January 1963: $16,400 to $20,315.
January 1964: $17,970 to $22,740.
January 1965: $19,125 to $24,500.
Thirty positions in NASA which may now be paid up to $21,000
could be paid up to $24,500 beginning in January 1963.
Any additional increases in GS-16 to GS-18 Classification Act salary
levels would automatically extend to the groups of positions covered
by title VII.
IV. CONCLUSION
The proposal which has been outlined would-
hatablisli a "governor" policy or standard which objectively
controls the level of Federal salaries and automatically sets adjust-
ments in motion when needed.
Move systematically toward placing Federal statutory salaries
at levels comparable with salary levels m private enterprise.
Establish equitable relationships among Federal salary systems.
Permit better use of pay rates for recruitment a.nd motivation.
y
Approved For Release 2003/03/28 :CIA-RDP80B01676R0031
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