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When an employee moves, without a break in service, to a General Schedule (GS) position from a non-GS pay system under 5 U.S.C. chapters 47 (personnel demonstration project), 95 (Internal Revenue Service broadbanding system), or similar provision of law, and that system provides that an employee will be converted to GS-equivalent rates immediately before leaving the non-GS pay system, the employee is considered a GS employee in applying the pay-setting provisions of 5 CFR part 531, subpart B, and the grade and pay retention provisions of 5 CFR part 536. If necessary, contact the agency with the non-GS system to determine whether the system has such conversion-out rules and for assistance in following those rules to find the employee's GS-equivalent rate of pay. Note: The conversion-out procedures under demonstration project pay systems and IRS broadbanding systems vary. For example, under the IRS broadbanding system conversion-out procedures, the GS-equivalent rate of pay is not adjusted to equal a standard step rate. The following conversion-out example is for illustrative purposes only and may not apply to all systems.
An agency hires an employee from a demonstration project pay banding system into a position at the GS-15 level. The demonstration project has a conversion-out rule for setting pay upon movement to a GS position. The pay conversion back to the GS system must be processed before any geographic movement or other pay-related action that may coincide with the employee's movement out of the demonstration project. The employee's converted GS rates are used in applying GS pay administration rules, as necessary, in lieu of using his or her demonstration project rate.
Under the demonstration project, the employee was a PD-3/2 (this pay band is equivalent to GS-13 and 14) in the Washington, DC, area. Under this demonstration project's conversion-out procedures, the employee's GS-equivalent grade is GS-14. Convert the employee's demonstration project adjusted rate to a rate on the highest applicable GS rate range that would apply to the employee's demonstration project position if it were a GS-14. The employee's demonstration project salary of $110,236 in 2006 falls between steps 7 and 8 on the GS-14 locality rate range for Washington, DC. Therefore, GS-14, step 8, would be the employee's converted GS grade and step. Use the converted GS-14, step 8, rate to apply the GS promotion rule under 5 CFR 531.214. Assuming the employee is covered by the Washington, DC, locality pay schedule at GS-15, the employee's pay upon promotion is set at GS-15, step 5 ($121,856).