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Attachment 4 to Compensation
Memorandum 2001-15
Examples of January 2002 Pay Computations
Below are examples showing how various categories of employees will be
affected by the January 2002 pay adjustments. Annual rates are shown. The annual
rate providing the highest entitlement (shown in bold font) is used to
calculate the employees hourly rate in biweekly pay computations. An hourly
rate is computed by dividing the annual rate by 2,087 and rounding the result to
the nearest cent. (Note: Firefighters compensated under 5 U.S.C. 5545b are
subject to special pay computation rules, including the use of an hourly rate
computed using a 2,756-hour divisor. See 5 CFR part 550, subpart M.)
| 1. General Schedule (GS)
employee
Grade/step: GS-9, step 5 Location: "Rest of U.S." pay area |
|
2001 GS basic rate
2001 locality rate |
$37,686 $40,580 |
($37,686 x 1.0768) |
|
2002 GS basic rate
2002 locality rate |
$39,043
$42,416
|
(after 3.6% general increase)
($39,043 x 1.0864) |
|
2. GS employee promoted on same day that
2002 pay adjustments take
effect
Grade/step: GS-11, step 5, before promotion Location: "Rest of U.S."
pay area |
|
Step 1: Apply the general pay adjustments to the GS-11, step 5,
rate. |
|
2001 GS basic rate
2001 locality rate |
$45,600
$49,102
|
($45,600 x 1.0768)
|
|
2002 GS basic rate
2002 locality rate |
$47,240
$51,322 |
(after
3.6% general increase)
($47,240 x 1.0864) |
|
Step 2: Process the promotion to GS-12 using the 2-step
rule. |
|
2002 GS basic rate
2002 locality rate |
$51,624
$56,084 |
(GS-12, step 2, is the lowest GS-12 step rate that equals
or exceeds
the GS-11, step 7, rate of $50,018)
($51,624 x
1.0864)
|
|
3. GM employee
(See
example 8a and 8b for GM employees at GS-13 on the IT special salary rate
schedule.)
Grade/step: GM-13, step 00 (not on step) Location: Washington,
DC |
|
2001 GM rate
2001 locality rate |
$69,536
$76,650
|
($69,536 x 1.1023) |
|
2002 GM rate
2002 locality rate |
$72,034
$80,304
|
(after applying
3.6% increase as described at 5 CFR 531.205(a)(2))
($72,034 x 1.1148)
|
|
4. GS-11 employee receiving a retained rate of pay
Grade/step: GS-11, step 00 (above rate range) Location: "Rest of
U.S." pay area |
|
2001 retained rate
2001 locality rate (No special rate) |
$54,491
$58,676
|
($54,491 x 1.0768) |
|
2002 retained rate
2002 locality rate |
$55,431
$60,220
|
($54,491 plus $940, where $940 is one-half of the dollar increase in
the GS-11, step 10, rate from 2001 to 2002; ($54,185 - $52,305) / 2 = $940)
($55,431 x 1.0864) |
|
5. Special rate employee where special
rate exceeds locality rate
Grade/step: GS-3, step 1 Location: Washington, DC Special Rate
Schedule: Table 0029 (DC Clerical) |
|
2001 GS basic rate
2001 locality rate
2001 special rate |
$17,474
$19,262
$20,966
|
($17,474 x 1.1023) |
|
2002 GS basic rate
2002 locality rate
2002 special rate |
$18,103
$20,181
$21,721
|
(after 3.6% general increase)
($18,103 x 1.1148)
(after 3.6% increase to the 2001 special
rate) |
|
6. Special rate employee where locality
rate exceeds special rate for first time in January 2002
Grade/step: GS-4, step 6 Location: Washington, DC Special Rate
Schedule: Table 0029 |
|
2001 GS basic rate
2001 locality rate
2001 special rate |
$22,886
$25,227
$25,502
|
($22,886 x 1.1023) |
|
2002 GS basic rate
2002 locality rate
2002 special rate |
$23,707
$26,429
$26,415 |
(after 3.6% general increase)
($23,707 x 1.1148 )
(after 3.6% increase to 2001 special
salary rate) |
|
7. Law enforcement officer (LEO)
Grade/step: GS-7, step 1 Location: Boston, MA |
|
2001 LEO special rate
2001 LEO locality rate
2001 LEO GEO adj. rate |
$30,809
$34,546
$35,738
|
($30,809 x 1.1213)
($30,809 x 1.16) |
|
2002 LEO special rate
2002 LEO locality rate
2002 LEO GEO adj. rate |
$31,920
$36,252
$37,027
|
(after 3.6% increase)
($31,920 x 1.1357 )
($31,920 x 1.16 ) |
|
8a. GM employee at grade GS-13 on the IT special rate
schedule
IT Special Rate Adjustment
Basic Rate for
GS-2210-13, step 00 (not on step): $72,924 (December 2001) Location: Washington-Baltimore, DC-MD-VA-WV 2001 Locality Rate: $80,384 ($72,924 x
1.1023)
IT Special
Rate Schedule: Table 999C
IT
Special Rate: $76,571
Reference:
5 CFR 530.306(a)(3), 530.307(c), and 531.205(a)(2)
|
|
Step 1: Subtract the GS-13, step 1,
special rate from the employees IT special rate in 2001. (Use the
2001 IT special rate table, 999C.) |
|
2001 GM IT special rate
2001 IT special rate
Difference |
$76,571
$60,212
$16,359 |
(employee's GM special rate)
(GS-13, step 1)
($76,571 - $60,212) |
|
Step 2: Subtract the GS-13, step 1, special
rate from the GS-13, step 10, special rate. (Use the 2001 IT special
rate table, 999C.) |
|
2001 IT special rate
2001 IT special rate
Difference |
$78,281
$60,212
$18,069
|
(GS-13, step 10)
(GS-13, step 1)
($78,281 - $60,212) |
|
Step 3: Divide the results of step 1 by the results of step 2.
Carry
the result to the seventh decimal place and truncate. |
|
$16,359 / $18,069 = 0.9053627 |
|
Step 4: Subtract the GS-13, step 1, rate from the GS-13, step 10, rate.
(Use the 2002 IT special rate table, 999C.) |
|
2002 IT special rate
2002 IT special rate
Difference |
$81,090
$62,379
$18,711
|
(GS-13, step 10)
(GS-13, step 1)
($81,090 - $62,379) |
|
Step 5: Multiply the results in step 3 by the results in step
4. |
|
0.9053627 x $18,711 = $16,940.24148 |
|
Step 6: Add the results of step 5 to the GS-13, step 1, IT special rate
from Table 999C and round to the next whole dollar. |
|
$16,940.24148 + $62,379 = $79,320 |
|
The employees GM IT special rate in
2002 is
$79,320. |
|
8b. GM employee at grade GS-13 on the IT special rate
schedule
Locality Rate Determination
Basic Rate for GS-2210-13: $72,924 (December
2001) [between steps 9 and 10] Location: Washington-Baltimore, DC-MD-VA-WV IT Special Salary
Rate: Table 999C NOTE:
First you must compute the employee's 2002 GM unadjusted rate of basic pay
following the steps in 5 CFR 531.205(a)(2). (See steps 1-6.) (Use the
unadjusted rate of basic pay. Do not use the special rate of pay.) Then you apply the applicable locality payment.
(See step 7.) |
|
Step 1: Subtract the GS-13, step 1, GS basic rate in
2001 from the
employees rate of basic pay in 2001. (Use the 2001 GS basic
schedule.) |
|
2001 GM basic rate
2001 GS-13 basic rate
Difference |
$72,924
$57,345
$15,579
|
(employee's GM basic rate)
(GS-13, step 1)
($72,924 - $57,345) |
|
Step 2: Subtract the GS-13, step 1, GS basic rate in
2001 from the
GS-13, step 10, GS basic rate in 2001. (Use the 2001 GS basic
schedule.) |
|
2001 GS-13 basic rate
2001 GS-13 basic rate
Difference
|
$74,553
$57,345
$17,208
|
(GS-13, step 10)
(GS-13, step 1)
($74,553 - $57,345) |
|
Step 3: Divide the results of step 1 by the results of step 2.
Carry the result to the seventh decimal place and truncate. |
|
$15,579 / $17,208 = 0.9053347 |
|
Step 4: Subtract the GS-13, step 1, rate in
2002 from the GS-13, step
10, rate in 2002. (Use the 2002 GS basic schedule.) |
|
2002 GS-13 basic rate
2002 GS-13 basic rate
Difference |
$77,229 $59,409
$17,820 |
(GS-13, step 10)
(GS-13, step 1)
($77,229 - $59,409) |
|
Step 5: Multiply the results in step 3 by the results in step 4. |
|
0.9053347 x $17,820 = $16,133.06435 |
|
Step 6: Add the results of step 5 to the GS-13, step 1, GS basic rate in
2002 and round to the next whole dollar. |
|
$16,133.06435 + $59,409 = $75,543 [Note that
$75,543 exceeds the
employee's former GM basic rate of $72,924 by approximately 3.6%, which is the amount of the GS across-the-board increase in January 2002.] |
|
Step 7: Multiply the results of step 6 by the DC locality rate in 2002. |
|
2002 GM basic rate
2002 GM locality rate |
$75,543 $84,215 |
(2002 GM basic rate, determined in step 6)
($75,543 x 1.1148 ) |
|
The employee's locality rate in 2002 is $84,215. The
employee's IT special rate ($79,320) is the underlying rate of basic pay
used for some pay administration purposes. (IT special rate table
999C provides a 5 percent special rate supplement at grade 13. Note
that the employee's IT special rate of $79,320 is approximately 5 percent
above the GM basic rate of $75,543.) |
| 9. Promotion for IT special
rate employee (with underlying GS-13 special rate) after 2002 pay
adjustments take effect.
Grade/step: GS-12, step 5 Location: Washington-Baltimore,
DC-MD-VA-WV IT Special Salary Rate: Table 999C |
|
Step 1: An employee is entitled to a GS-13 rate that is equal to or
greater then the GS-12 rate that is two steps above the employees current
GS-12 rate of pay. |
|
2002 IT rate
2002 IT rate |
$65,112 $68,941 |
(GS-12, step 5, Table 999C)
(GS-12, step 7, Table 999C) |
|
Step 2: Place the new promoted rate of pay into the scheduled IT
special rates at the GS-13 level. |
|
$68,941 falls between step 4 and step 5. The employees rate of pay is
set at GS-13, step 5, on the IT special rate schedule =
$70,695. |
|
Step 3: Compare the GS-13, step 5, 2002 IT special rate of pay to the
GS-13, step 5, 2002 locality rate of pay. |
|
$70,695 (2002 IT rate) < $75,058 (2002 locality
rate) |
|
Step 4: An employee is paid the GS-13, step 5, locality
rate of pay because the locality rate of pay is higher than the IT special
rate of pay for the area. |
| 10.
Promotion for IT special rate employee at GS-12, step 10, after 2002 pay
adjustments take effect.
Grade: GS-12, step 10 Location: Washington-Baltimore,
DC-MD-VA-WV IT Special Salary Rate: Table 999C |
|
2002 locality rate
2002 IT special rate |
$72,400
$74,686 |
(GS-12, step 10)
(GS-12, step 10) |
|
An employee is entitled to a GS-13 rate that is equal to or greater
than the GS-12 rate that is two steps above the employees current GS-12
rate. |
|
Step 1: Subtract the GS-12, step 9, IT special rate from the GS-12,
step 10, IT special rate. Note: Since there is no step 11 rate, the
two-step increase must be derived using the difference between steps 9 and
10. This approach must be used whenever an IT special rate employee is at
step 9 or 10 before promotion. |
|
$74,686 (GS-12, step 10) - $72,771 (GS-12, step 9) = $1,915 |
|
Step 2: Multiply the difference by 2 because an employee is entitled to
a two-step increase. |
|
$1,915 x 2 = $3,830 |
|
Step 3: Add the increase to the employees current rate of pay (GS-12,
step 10, IT special rate). |
|
$74,686 + $3,830 = $78,516 |
|
Step 4: Place the rate resulting from step 3 into the scheduled IT
special rates at the GS-13 level (Table 999C). |
|
$78,516 falls between step 8 and step 9.
The employees rate of pay is
set at a GS-13, step 9, on the IT special rate (Table 999C) =
$79,011. |
|
Step 5: Compare the GS-13, step 9, IT special rate of pay to the GS-13,
step 9, locality rate of pay for the Washington-Baltimore locality pay
area. |
|
$79,011 (2002 IT special rate) < $83,888 (2002 locality
rate) |
|
Step 6: An employees rate of pay is set at the GS-13, step 9, locality
rate because the locality rate is higher than the 2002 IT special rate of
pay. The GS-13, step 9, IT special rate is an underlying rate of basic pay
used for certain pay administration purposes. |
Last Modified: 4:29:42 PM on Thursday, September 04, 2003
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