Pay rules change for general schedule employees

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RANDOLPH AIR FORCE BASE, Texas (AFPN) --  The Office of Personnel Management recently amended the rules governing pay setting for employees covered by the General Schedule. The rules implement section 301 of the Federal Workforce Flexibility Act of 2004.

The act’s primary purpose is to correct various pay anomalies relating to the administration of special rates, locality rates and retained rates.

The new rules now treat locality rates and special rates in a consistent way, resulting in pay rules that are more rational and fair, according to OPM officials. Also, because the act became effective May 1, the new pay administration rules must be made effective retroactive to that date.

A few of the key changes made by the act and OPM's regulations, and some of their resulting impact to the workforce include:

-- Locality rate (basic pay plus locality pay), instead of just basic pay, is now considered in applying various pay-setting rules such as maximum payable rate, promotion and pay retention. As a result, non-GS employees moving to GS positions may be set in a lower step and fewer actions will result in pay retention since locality rate is higher than basic pay.

-- Locality rates will be taken into account when applying pay retention rules. Locality pay will no longer be paid on top of a retained rate. Retained rates will be compared to the highest applicable rate range (as adjusted to include any locality or special rate supplement).

-- Entitlement to a special salary rate ceases if the employee is entitled to a higher locality rate. As a result, even though an employee receives the same total salary, the base rate is less and full locality is paid. Since retention allowances approved prior to May 1 were computed as a percentage of an underlying special salary rate rather than the underlying basic rate, the amount of any retention allowance will also be reduced when the special rate entitlement ceases. The reduction of retention allowances is not subject to appeal.

More information on the new pay administration rules is available at www.opm.gov/oca/compmemo/2005/2005-10.asp. Employees with questions should contact their local civilian personnel office.