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ATTACHMENT 4 to Compensation Policy Memorandum 98-7

Examples of January 1999 Pay Computations

Below are examples showing how various categories of employees will be affected by the January 1999 pay adjustments. Annual rates are shown. The annual rate providing the highest entitlement (shown in bold font) would be used to calculate the employee's hourly rate used 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.)

1.
General Schedule (GS) employee

Grade/step: GS-9, step 5
Location: "Rest of U.S." pay area
1998 GS rate

1998 locality rate

$34,293

$36,152



($34,293 x 1.0542)
1999 GS rate

1999 locality rate

$35,355

$37,430

(after 3.1% increase)

($35,355 x 1.0587)


2.
GS employee promoted on same day that 1999 pay adjustments take effect

Grade/step: GS-11, step 5, before promotion
Location: "Rest of U.S." pay area

First, apply general pay adjustments to GS-11, step 5, rate.
1998 GS rate

1998 locality rate

$41,489

$43,738



($41,489 x 1.0542)
1999 GS rate

1999 locality rate

$42,776

$45,287

(after 3.1% increase)

($42,776 x 1.0587)

Then, process promotion to GS-12 using the 2-step rule.
1999 GS rate



1999 locality rate
$46,744



$49,488
(GS-12, step 2, is the lowest GS-12 step rate that equals or exceeds the GS-11, step 7, rate of $45,292)


($46,744 x 1.0587)


3.
GM employee

Grade/step: GM-13, step 00 (not on step)
Location: Washington, DC
1998 GM rate

1998 locality rate

$63,262

$67,861



($63,262 x 1.0727)
1999 GM rate



1999 locality rate
$65,224



$70,357
(after applying 3.1% increase as described in OPM regulations at 5 CFR 531.205(a)(2))


($65,224 x 1.0787)


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
1998 retained rate
1998 locality rate
(No special rate.)
$49,449 $52,129
($49,449 x 1.0542)

1999 retained rate



1999 locality rate

$50,188



$53,134

($49,449 plus $739, where $739 is one-half of the dollar increase in the GS-11, step 10, rate from 1998 to 1999; ($49,066 - $47,589) ÷ 2 = $739)

($50,188 x 1.0587)

 

5.
Special rate employee where special rate exceeds locality rate

Grade/step: GS-5, step 1
Location: Washington, DC
Special Rate Schedule: Table 0029 (clerical employees)
1998 GS rate

1998 locality rate

1998 special rate

$19,969

$21,421

$21,967



($19,969 x 1.0727)
1999 GS rate

1999 locality rate

1999 special rate

$20,588

$22,208

$22,646

(after 3.1% general increase)

($20,588 x 1.0787)

(after 3.1% increase)

 

6.
Special rate employee where locality rate exceeds special rate for first time in January 1999

Grade/step: GS-5, step 3
Location: Chicago, IL
Special Rate Schedule: Table 0119 (clerical employees)
1998 GS rate

1998 locality rate

1998 special rate

$21,301

$23,263

$23,299



($21,301 x 1.0921)
1999 GS rate

1999 special rate

1999 locality rate

$21,960

$24,018

$24,152

(after 3.1% general increase)

(after 3.1% increase)

($21,960 x 1.0998)

 

7.
Interim Geographic Adjustment (IGA) continued rate

Grade/step: GS-12, step 9 (Petroleum Engineer, Special Rate Table 415)
Location: New York, NY
1998 GS rate

1998 nationwide special rate

1998 locality rate

1998 IGA continued rate

$55,580

$58,506

$61,005

$62,564



(Table 415)

($55,580 x 1.0976)

(originally established in January 1994;
see 5 CFR 531.703)

1999 GS rate

1999 nationwide special rate

1999 locality rate

1999 IGA continued rate

$57,300

$60,316

$63,345

$64,284


(after 3.1% general increase)

(after 3.1% increase)

($57,300 x 1.1055)

($62,564 plus $1,720, where $1,720 is the dollar increase in the underlying GS-12, step 9, rate from 1998 to 1999; $57,300 - $55,580 = $1,720; see 5 CFR 531.703(e))

NOTE: The employee continues to receive the continued rate of pay because it is still the highest rate of pay. Under OPM regulations, a continued rate in San Francisco, Los Angeles or New York is not terminated even though the IGA for those areas has been abolished.

If the employee is entitled to a within-grade increase (WGI) to GS-12, step 10, on the same day on which the general pay adjustments take effect, the WGI would be processed after the general pay adjustments, and the employee's entitlements would be as follows:
1999 GS rate

1999 nationwide special rate

1999 IGA continued rate

1999 locality rate
$58,808

$61,824

$64,284

$65,012


(GS-12, step 10)

(no change)

($58,808 x 1.1055)

NOTE: The IGA continued rate would be terminated, since it is now exceeded by the locality rate.

 

8.
Law enforcement officer (LEO)

Grade/step: GS-7, step 1
Location: Boston, MA
1998 LEO special rate

1998 LEO locality rate

1998 LEO GEO adj. rate

$28,030

$30,443

$32,515



($28,030 x 1.0861)

($28,030 x 1.16)

1999 LEO special rate

1999 LEO locality rate

1999 LEO GEO adj. rate

$28,901

$31,595

$33,525

(after 3.1% increase)

($28,901 x 1.0932)

($28,901 x 1.16)


Last Modified: 3:38:03 PM on Wednesday, August 20, 2003