Attachment 4 to Compensation Memorandum 2001-15 

 
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United States 

Office of Personnel Management

 

Office of Compensation Administration

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.

 


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Page created on December 27, 2001