For an employee who performs service under a non-GS Federal pay system which is potentially creditable towards a within-grade increase waiting period, an equivalent increase is considered to occur at the time of any of the following personnel actions in the non-GS pay system:
A non-GS pay system is one that does not meet the definition of "General Schedule" or "GS" in 5 CFR 531.403. The personnel actions above must have occurred within the same pay system. That is, even if an employee receives an increase in pay moving between pay systems, that "promotion" or other pay increase is not considered an equivalent increase. See Note 1.
For example, the DoD NSPS pay system is a non-GS pay system. The following NSPS pay events would be considered equivalent increases under 5 CFR 531.407(b):
Note 1: OPM has a general policy that a pay increase resulting from a change in pay system does not count as an equivalent increase. However, the NSPS WGI adjustment and WGI adjustment equivalent are pay adjustments made under the NSPS system after conversion or placement (although effective on the same date). Under the NSPS regulations, employees are converted with no change in pay. The WGI adjustment under 5 CFR 9901.371(j) is a mandatory adjustment following that conversion. The WGI adjustment equivalent under 5 CFR 9901.351(c)(1) also is a mandatory adjustment, and the WGI adjustment equivalent under 5 CFR 9901(c)(2) is a discretionary adjustment, both made following placement in an NSPS position.
Note 2: To the extent that DoD establishes any control point that serves as a maximum rate for all positions within a defined subcategory within a band based on labor market factors (without regard to performance rating), a pay increase denied solely because of such control point would not be considered to be an opportunity for an increase and thus would not be considered to be an equivalent increase.
Note 3: Consistent with 5 CFR 531.407(c), a local market supplement adjustment under NSPS would not be considered an equivalent increase. Also, an adjustment resulting from being placed in a subcategory of positions to which a higher supplement applies would not be an equivalent increase.
Agencies should use the alternate method when an employee is covered by different pay schedules before and after promotion if the alternate method produces a higher payable rate upon promotion than the standard method. See Promotion Examples 3 and 5.
Agencies also may use the alternate method even if the alternate method produces a lower payable rate than the standard method. Under this circumstance, the agency must determine under 5 CFR 531.214(d)(2)(iii) that it would be inappropriate to use the standard method based on a finding that the higher pay for the position before promotion is not sufficiently related to the knowledge and skills required for the position after promotion.
5 U.S.C. 5545(d) provides that if an employee is covered by chapter 51 (Classification) and subchapter III of chapter 53 (General Schedule Pay Rates) of title 5, United States Code, then he or she may be eligible to receive hazardous duty pay. To receive hazardous duty pay, a General Schedule (GS) employee must also meet the requirements in 5 CFR 550.904.
(Note: Prevailing rate (wage) employees may be eligible to receive environmental differential pay under the separate provisions of 5 U.S.C. 5343(c)(4).)
If an employee is reduced in grade or pay in conjunction with a transfer to another agency, there is no mandatory entitlement to grade or pay retention. However, the gaining agency may grant grade or pay retention under its optional authority (5 CFR 536.202 or 536.302), as long as the employee is otherwise qualified.
One of the eligibility conditions is that the reduction in grade or pay not be "at the employee's request" (5 CFR 536.102(b)(1)). If the transfer is initiated by the employee for his or her benefit, convenience, or personal advantage (including a transfer to avoid adverse action based on personal cause), it would be considered to be at the employee's request, thus barring grade or pay retention. However, if the transfer was directly caused or influenced by a management action (not based on personal cause), then even though the transfer appeared to be voluntary, it would not be "at the employee's request." (See definitions ofmanagement action and reduced in grade or pay at the employee's request in 5 CFR 536.103.)
For purposes of providing optional grade retention to a transferring employee, the management action must be either a specific RIF notice or a written announcement of a reorganization or reclassification that might result in reduction of the employee's grade. For purposes of optional pay retention, the management action must be an action that would result in a pay reduction (after the application of any applicable geographic conversion under 5 CFR 536.303(a) and in the absence of pay retention).
Note: A movement between subcomponents of an Executive department or other Executive agency cannot be considered a transfer. Under the law, the term "agency" includes Executive departments and certain other agencies. (See 5 U.S.C. 101-105, 5102(a), and 5361(2).) Thus, it is possible for mandatory grade and pay retention to apply to an employee who moves between subcomponents of an Executive department or other Executive agency--e.g., if the employee is placed in a lower-graded position at management initiative as a result of reduction-in-force procedures.
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