FEDERAL EMPLOYEES PAY ACT OF 1955

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP59-00224A000100640004-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 13
• Document Creation Date: November 17, 2016
• Document Release Date: August 7, 2000
• Sequence Number: 4
• Publication Date: March 10, 1955
• Content Type: REPORT

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Calendar No. 61
84TH CONGRESS
1st Session
REPOItT
No. 58
Mr. JOHNSON of South Carolina, from the Committee on Post Office
and Civil Service, submitted the following
REPORT
The Committee on Post Ollice and Civil Service, to whom was
referred the bill (S. 67) to adjust the rates of basic compensation of
certain officers and employees of the Federal Government, and for
other purposes, having considered the same, report favorably thereon
with amendments, and recommend that the bill, as amended, do pass.
S. 67 provides, among other things, for an adjustment in the pay
schedule of the Classification Act of 1949, as amended, and for.an
increase of approximately 10 percent in the basic rates of pay of over one
million Federal employees. In the main these employees consist- of
professional, scientific, administrative, and clerical personnel required
in the performance of the varied and farfiung activities of the Govern-
ment. Less than 20 percent are employed in the Washington. area
while the other 80 percent plus work in every State of the Union and
in many faraway outposts of the world.
The bill makes adequate provision to assure these million and more
employees in the executive, judicial, and legislative branches of the
Government whether under or outside the Classification At, of
increases in basic rates of compensation comparable to those given
the half-million postal employees in S. 1, reported to the Senate on
March 2, 1955.
AMENDMENT
The committee amendment strikes out all of the bill after the
enacting clause and substitutes therefor a new bill which appears in
the reported bill in italic type.
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2 FEDERAL EMPLOYEES PAY ACT OF 1955
The bill as amended is designed to accomplish the following:
1. Adjust the rates of basic compensation of employees subject to
the Classification Act of 1.949, as amended, to provide an average
increase of approximately 10 percent or $200 whichever is the greater.
2. Provide an increase of 10 percent of $200, whichever is greater,
to-?
(a) officers and employees in or under the judicial branch of
the Government;
(b) secretaries and law clerks of circuit and district judges;
(e) officers or employees in or under the legislative branch of
the Government (except employees in the office of a Senator
whose salaries may be adjusted out of additional funds which
the bill makes available) ;
(d) elected officers and certain appointive officers and employees
of the Senate and House of Representatives (except the presiding
officers) ;
(e) officers and employees in the Department of Medicine and
Surgery in the Veterans' Administration;
(f) employees in the Foreign Service of the United States
under the Department of State.
3. Provide comparable increases to employees whose salaries are
set by administrative action such as employees of the TVA.
4. Raise the limit on salaries which may be paid to officers and em-
ployees of the Central Bank for Cooperatives, or any production credit
corporation, production credit association, or bank for cooperatives,
to permit giving employees of these organizations raises comparable
to those received by other Federal employees under this act.
5. Increase the maximum compensation authorized for court
reporters in. the district courts of the United States from $6,000 to
$6,600.
6. Make the increases in rates of basic compensation effective
retroactive to the start of the first pay period commencing in 1955.
7. Direct the Civil Service Commission to make a study of the effect
and desirability (1) of eliminating present grades 6, 8, and 10 of the
general schedule of the Classification Act of 1949, as amended, and
(2) of establishing for supervisors whose compensation is fixed under
the Classification Act of 1949, as amended, a fixed differential in com-
pensation of at least 5 percent above that of any wage-board employee
under these supervisors.
8. Maintain the present ceiling of $14,800 above which no salary
may be raised by reason of this enactment.
Rates of pay fixed by the Classification Act
Section 1 (a) of the bill amends section 603 (b) and section 603 (c)
of the Classification Act of 1949, as amended, by establishing new per
annum basic rates of compensation for the general schedule (GS)
and the crafts, protective, and custodial schedule (CPC) and new per
annum rates for part-time charwomen and head charwomen.
Under the revised general schedule in which rates are both adjusted
and increased, the over 800,000 lower paid employees in grade GS-12
and below will receive increases averaging over 10 percent, whereas,
the over 35,000 higher paid employees in grades GS-13 and above will
receive increases of somewhat less than 10 percent.
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FEDERAL EMPLOYEES PAY ACT OF 1955 3
Under the revised CPC schedule, in which rates are similarly ad-
lusted and increased, the approximate 100,000 employees now subject
to its provisions will receive increases comparable to those received
by the larger body of Federal employees under the general schedule.
Public Law 763, 83d Congress provides for the eventual shifting of
employees now in the CPC schedule to the general schedule or for
their removal from under the Classification Act, and the fixing of
their rates of basic compensation in accordance with rates prevailing
in the immediate locality. However, in order to maintain equality
in pay now and after the status of these employees has been changed
it is necessary to adjust and raise the rates of basic compensation
set forth in the CPC schedule even though it will be abolished even-
tually.
The new rates of basic compensation of charwomen and head char-
women who work part time, as under existing law, are adjusted to
correspond with the fifth and seventh rates, respectively, of grade
CPC-2.
Initial adjustments under the Classification Act
Subsection (b) provides that the existing pay rates of employees
are to be initially adjusted to the new rates prescribed by the bill as
follows:
(1) Each employee paid, immediately prior to the effective (late, at
a scheduled or longevity rate of his grade shall be paid at the corre-
sponding new rate of his grade in effect on and after such date.
(2) Each employee paid, immediately prior to the effective date, at
a rate between 2 scheduled. rates or between a scheduled rate and a
longevity rate or between 2 longevity rates, shall be compensated at
the higher of the 2 corresponding new rates in effect on and after
such date.
(3) Each employee who is in grade 15 or below of the general
schedule or in a grade of the CPC schedule and who was paid, imme-
diately prior to the effective date, at a rate in excess of the longevity
rate of his grade shall be paid on and after such date at a rate equal
to the old rate, increased by an amount equal to the amount of the
increase in the maximum longevity rate of his grade.
(4) Each part-time char employee paid, immediately prior to the
effective date, at a rate in excess of the rate provided for his position
under section 603 (c) (2) of the Classification Act of 1949, as amended,
shall be paid on and after such date at a rate equal to the old rate,
increased by an amount equal to the amount of the increase made by
the bill in the rate for like positions.
(5) Each employee who is in grade 16 or 17 of the general schedule
and who was paid, immediately prior to the effective date, at a rate
in excess of the maximum scheduled rate of his grade shall receive no
increase in rate of compensation until entitled to an increase by reason
of the operation of the Classification Act of 1949, as amended.
(6) Each employee who with his position has been transferred from
the CPC or GS schedules to a prevailing rate schedule pursuant to
title 1 of the act of September 1, 1954, prior to the effective date hereof,
and who on such effective date is being compensated under such pre-
vailing rate schedule at a rate which is less than the rate to which
he would have been entitled on such effective date if such transfer
had not occurred (unless he is receiving such lesser rate because of
an adverse personnel action resulting from his own fault), shall be
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4 FEDERAL EMPLOYEES PAY ACT OF 1955
paid basic compensation at a rate equal to the rate which he would
have been receiving if the transfer had not occurred (including com-
pensation for each within grade and longevity step-increase which
he would have earned), until he leaves the position he holds on such
effective date, or is entitled to a higher rate under the prevailing rate
schedule.
Elimination of grades and establishment of differential in pay of super-
visors
Section 2 of the bill directs the Civil Service Commission to make
(1) a study of the desirability of eliminating grades 6, 8, and 10 of
the General Schedule of the Classification Act, and (2) it study of
the desirability of establishing a differential of not less than 5 percent
in the rate of pay for supervisors whose compensation is fixed under
the Classification Act, and who regularly have responsibility for the
supervision of employees whose compensation is fixed and adjusted
in accordance with prevailing rates. The Commission is directed
to report to the Post Office and Civil Service Committee of the
Senate as soon as possible.
Pay of judicial employees
Section 3 (a) increases by 10 percent or $200 per annum, whichever
is greater, the compensation of officers and employees in or under the
judicial branch of the Government. Among such employees are--
(1) Clerks of courts, deputies, librarians, criers, messengers,
law clerks, secretaries, stenographers, clerical assistants, and
other employees of the courts whose compensation is not other-
wise fixed by law;
(2) clerical, stenographic, and other assistants of referees in
f)ankruptcy;
(3) probation officers and clerical help;
(4) Assistant Director of the Administrative Office of the
United States Courts;
(5) law clerks and secretaries of the Supreme Court;
(6) the librarian, :marshal, and reporter of the Supreme Court
and necessary assistants.
Subsection (b) increases the limitation fixed by law on the compen-
sation of secretaries and law clerks of circuit and district judges by
the amounts necessary to pay the additional compensation provided
b y this act.
Subsection (c) increases the limitation fixed by law on the compen-
sation of court reporters for district courts to permit payment of the
additional compensation provided by this act.
I'ay of legislative employees
Section 4 (a) provides an increase of 10 percent or $200 per year,
whichever is greater, to officers and employees in or under the legis-
lative branch (other than an employee in the office of a Senator).
Subsection (b) increases the limitation fixed by law on. the compen-
sation of officers and employees in or under the legislative branch by
the amount necessary to permit payment of the additional compensa-
tion provided by subsection (a) above.
Subsection (c) authorizes an increase in the aggregate amount of
basic compensation which may be paid for administrative and clerical
assistance and messenger service in the offices of Senators; it increases
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FEDERAL EMPLOYEES PAY ACT OF 1955
the limitation fixed by law on the compensation of certain of these
employees by the amounts necessary to permit payment of the addi-
tional compensation authorized by this act; and, it provides the
procedure for effectuating the increases authorized by this act. The
last proviso of the subsection provides that basic compensation of such
employees may be fixed at the lowest multiple of $60 which will
result in an increase of not less than 10 percent of the employee's
total salary. Unless this adjustment were permitted it would not be
possible, in all instances, to give employees a full 10-percent increase.
Subsection (d) provides an increase of 10 percent in the rates of
basic compensation of the elected officers of the Senate and House of
Representatives (not including the presiding officers of the two Houses),
the Parliamentarian of the Senate, the Parliamentarian of the House of
Representatives, and the Coordinator of Information of the House
of Representatives.
Subsection (e) provides that the increases afforded by subsection (a)
shall not apply to employees whose compensation is paid from the
appropriation contained in the paragraph designated "Folding docu-
ments" under the heading "Contingent expenses of the Senate" in the
Legislative Appropriation Act, 1955. The last sentence of the sub-
section provides that the limitations contained in such paragraphs
shall be increased by 10 percent.
Subsection (f) provides that official reporters of proceedings and
debates of the Senate and their employees shall be considered to be
officers or employees in the, legislative branch within the meaning of
subsection (a) and this entitles them to the raises therein provided
Subsection (g) assures that the additional compensation provided
by subsection (a) and the provisions of law referred to in such subsec-
tion shall be considered a part of basic compensation for the purposes
of the Civil Service Retirement Act of May 29, 1930, as amended.
Maximum salaries under Farm Credit Act
Section 5 amends section 66 of the Farm Credit Act of 1933 by rais-
ing the ceiling on the highest salary that may be paid any director,
officer, or employee of the Central Bank for Cooperatives, or of any
production credit corporation, production credit association, or bank
for cooperatives $13,800 to $14,800.
Pay of employees in the Department of Medicine and Surgery, Veterans'
Administration
Section 6 provides for an increase of 1.0 percent or $200 whichever is
greater, in the basic rates of compensation of physicians, dentists,
nurses, and certain other employees in the Department of Medicine
and Surgery, Veterans' Administration.
Subsection (b) increases from $12,800 to $14,080 the maximum
compensation that may be paid to any person rated as a medical,
surgical, or dental specialist in the Department of Medicine and
Surgery, Veterans' Administration.
Employees in the Foreign Service
Section 7 provides for an increase of 10 percent or $200 per annum,
whichever is greater, in the rates of basic compensation of Foreign
Service officers and employees provided by section 412 and 415 of the
Foreign Service Act of 1946, as amended.
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6 FEDERAL EMPLOYEES PAY ACT OF 1955
Ceiling on pay
Section 8 provides that, notwithstanding any other provision of this
act, no rate of compensation which is $14,800 or more shall be increased
by this act, and no rate of compensation shall be increased by this.
act to an amount in excess of $1.4,800.
E f Fective date
Section 9 (a) provides that the act shall be effective on the first day
of the first pay period which begins in 1955. This subsection provides.
further that no payment shall be required to be made under this act
before the first day of the first pay period which begins more than 60
days after enactment. The purpose of this provision is to allow ample
time to the departments and agencies to obtain funds and accomplish
the adjustments required by this act in an orderly manner.
Retroactive pay
Subsection (b) of section 9 limits the payment of retroactive com-
pensation to employees who are still in the service of the United. States
(including service in the Armed Forces of the United States) or of the
municipal government of the District of Columbia on the (late of
enactment, except that retroactive compensation shall be paid to
retired or deceased officers or employees for services rendered between
the effective date of the act and the date of their retirement or death.
Subsection (c) authorized a retroactive adjustment in. salaries set
by administrative action pursuant to law (not including basic rates
of compensation of wage-board employees established by administra-
tive action in accordance with prevailing rates) comparable to the
increases provided by this act. This is intended to permit an adjust-
ment in the salaries of employees in such agencies as AEC and TVA to
the same extent as will accrue to employees whose rates of basic
compensation are fixed by the Classification Act of 1949, as amended.
Savings clauses
Subsections (d) and (e) of section 9 are designed to assure that
employees who were changed, from a wage-board position to a position
under the Classification Act or who were promoted from one grade to
another in a position under the the Classification Act during the inter-
val between the effective date and the date on which payment is made
under this act receive the same benefits as though the act was in effect
at the time the change occurred.
Responsibility for retroactive payments
Subsection (f) of section 9 makes it clear that the retroactive salary
increase payable under the provisions of this act to an employee who
transferred from one establishment of the Government to another be-
tween the effective date and the date on which payment is made under
this act shall be made by the establishment from which the employee
transferred from the effective date of this act to the date of the trans-
fer. The same rule applies with respect to adjustments in lump-sum
payments made to employees who entered on duty in the Armed
Forces, retired, died, or transferred to a position exempted from the
Annual and Sick Leave Act of 1951 under section 202 (b) (1) (13), (C)
or (11) of such act.
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FEDERAL EMPLOYEES PAY ACT OF 1955
Adjustment in amount of life insurance
Subsection (g) of section 9 provides that for the purpose of deter-
mining the amount of insurance for which an individual is eligible
under the Federal Employees' Group Life Insurance Act of 1954,
changes in the rates of compensation which result from the enactment
of this act shall be deemed to be effective on the first day of the first
pay period which begins after enactment.
Cost
Both the Bureau of the Budget and the Civil Service Commission
estimated the cost of S. 1 as introduced at about $500 million annually.
On the basis of these estimates, the cost for the current fiscal year
would amount of some $250 million since the effective date in S. 1 as
reported is approximately midway into the fiscal year.
The table headed "Absorptions of initial costs of civilian pay in-
crease acts, 1946--51" (by the Bureau of the Budget) appearing on
page 63 of the hearings before the Committee on Post Office and 6ivil
Service, United States Senate, 84th Congress, 1st session on S. 1,
S. 67, S. 773, S. 774, indicates that from 56 to 76 percent of the initial
costs of the 4 most recent pay increases (exclusive of postal field serv-
ice) were absorbed by the departments and agencies. Spokesmen for
the administration indicated that an absorption of one-third was con-
templated under the administration's pay-increase plan. The com-
mittee considers this to be a reasonable rate of absorption. On this
basis the actual annual payroll increase would be two-thirds of $500
million or approximately $335 million. Taking into account the
money that will be returned to the Treasury in the form of Federal
income taxes-on the increase only---the net cost will be in the neigh-
borhood of $275 million.
Following are agency reports directed to S. 67 as introduced,
Reports were not obtained on S. 67 as amended.
UNITED STATES CIVIL SERVICE COMMISSION,
Hon. OLIN D. JOHNSTON, D. C., March H, 1.956.
,
Chairman, Committee on Post Office and Civil Service,
United .States Senate.
DEAR SENATOR JOHNSTON: This is in further reply to your letter of January
17, 1955, requesting the views of the Civil Service Commission on S. 67, a bill
to adjust the rates of basic compensation of certain officers and employees of the
Federal Government, and for other purposes. The following statement sum-
marizes and presents our comments on each section of the bill.
Section 1 revises the compensation schedules for the general and the crafts,
protective, and custodial schedules of the Classification Act of 1949, as amended,
and prescribes the conversions rules for making initial adjustments to the pay
rates of the revised schedules.
The proposed pay schedules would increase present Classification Act salaries
by an average of approximately $516.60, or about 12.2 percent. We estimate
that these increases would colt the Government about $506,305,000 annually.
This cost is more than 2/1/2 times greater than the cost of the Classification Act
pay adjustments proposed by the administration and strongly recommended by
the Commission.
This is only part of the cost of the Classification Act increases. proposed by S. 67.
Section 10 of the bill would make these increases retroactively effective as of
August 23, 1954. To the extremely high cost of $506 million must be added
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8 FEDERAL EMPLOYEES PAY ACT OF 1955
upward of $194 million to cover the retroactive period from August. 23, 1.954, to
the date of enactment. Thus, S. 67 would cost an estimated $700 million for
Classification Act increases alone as contrasted to the $202 million the admin-
istration believes the Government can afford to spend for this purpose.
Section 1 of S. 67 would increase the step increments of the various grades and
consequently the spread between the minimum and maximum rates. This pro-
vision would in effect result in serious inequities to employees. For example, the
present $80 step increases in grades GS-1 through GS-4 are increased to $100;
those in grades GS-5 through GS-10 are increased from $100 to $125 and so on.
The result is that initial increases to employees in the same grade will vary by as
much. as 90 percent. In GS-1, for example, the employee at, the minimum rate
of the grade will receive an initial increase of $200 while the employee at the
highest longevity step will receive $380.
Moreover, S. 67 would give many employees in higher grades smaller increases
than it provides for some employees in lower grades. For example, employees
at the top longevity step of grade 0S-3 will receive a $530 increase which is
greater than the increases proposed for some employees in grades GS-4, 5, 6, and
7. Some employees in GS--5 will receive initial increases of as much as $665 which
is $5 more than some employees in grade GS-11 will receive. Under S. 774, which
contains the administration's proposal, each employee in a given grade will receive
the same dollar increase and, with a single exception, the amount of initial adjust-
nient will increase progressively from grade to grade thus avoiding the highly
inequitable situation which would result from adoption of the Classification Act
pay schedules proposed in S. 67.
Section 2 provides that supervisors paid under the Classification Act of 1949,
as amended, who regularly supervise employees whose pay is fixed on a prevailing
rate basis, shall be paid at a rate which is at least 5 percent above the highest
rate being paid to any of the prevailing-rate employees supervised.
This provision seeks to eliminate the problem, sometimes encountered under
present pay practice, of having prevailing-rate employees receive higher pay than
their Classification Act supervisors. This situation results in serious inequities,
poor morale, and basically unsound pay administration. The Commission recog-
nizes the problem, and agrees with the objectives of the proposed provision-
Ilowever, we believe that the proposal does not satisfactorily meet the needs of
the situation, and may easily create as many problems as it solves.
The proposal would have the effect of setting Classification Act supervisors
entrance pay;. and subsequent increases within and beyond the pay range for
their grades, on the basis of local rates set for blue-collar workers. The blue-
collar rates would continue to he fixed by agency administrative action without
relation to (1) the supervisors' level of work, (2) the pay of other Classification
Act supervisors at the same level, or (3) the time limits and other statutory
provisions governing within-grade and longevity step increases for other Classifi-
cation Act employees.
This practice would produce a variety of problems, chief among which would
be serious inequities between supervisors. For example:
1. Pay for a supervisor of prevailing-rate employees could be increased to a
level in excess of the pay rates of other supervisors in the same organization
having supervision over the same or a higher level of work.
2. The supervisor of prevailing-rate employees could receive more pay than
his own supervisors.
3. The pay of a supervisor of prevailing-rate employees would. not depend on
his length of service in his job, but rather on the length of service of prevailing-
rate employees under his supervision. Thus, a newly appointed supervisor of
prevailing-rate employees at the top rate for their jobs would be paid more than
a supervisor with years of experience in an identical job whose prevailing-rate
employees had not advanced to the i.op rates for, their jobs.
Other difficulties and inequities would result because (a) promotion to a higher
;lrad.e job might mean no increase in pay, (b) pay for supervisors of prevailing-
rate employees might be reduced if the supervisor were reassigned to another posi-
R,ion in the same grade or to another location whore prevailing rates were lower,
,md (c) the supervisor's pay rate would be reduced if his highest. paid prevailing-
rate employee resigned and was succeeded by an employee paid at a lower rate.
Moreover, duplication of benefits would result. Under present laws governing
premium pay, a supervisor of prevailing-rate employees on a night shift would
receive increased pay based on the night rate of these employees. In addition,
he would receive a 10-percent night pay differential under the Federal Employees'
Pay Act.
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Present problems, and those which the proposal seems likely to create, stem
largely from the effort to merge two differing pay systems. It is doubtful whether
any wholly satisfactory solution can be found as long as the pay of some employees
in an,installation is fixed uniformly by law on a nationwide basis, while the pay
of others is set on the basis of local prevailing wage rates.
For the reasons discussed above, the Commission does not favor enactment of
section 2 of the bill.
Section 3 directs the Civil Service Commission to make a study of the effects
and desirability of eliminating present grades GS-6, GS-8, and GS--10 of the
,general schedule of the Classification Act, and to submit a report of its findings
and recommendations (including recommendations for pay changes that should
accompany elimination of the three grades) to the Senate Civil Service Committee
within 120 days from the date of enactment.
The present grade structure includes over 15,000 different occupational skills
and many levels of work difficulty and responsibility in the Federal service.
Presently, some 70,000 positions are in grades GS-6, GS-8, and GS-10, primarily
to recognize supervisory responsibilities in large-scale production operations, and
to classify jobs in the various Government inspection services. Grade GS-6
alone has a greater employee population than grades GS-13, GS-14, GS-15,
GS-16, G5-17, and GS-P8 combined.
If the proposed study is to be made, we think that at least 6 months should be
allowed for its completion. We also believe that the recent Hoover Commission
recommendations for major revision of the Classification Act grade structure
should be fully considered along with the proposal to eliminate grades GS-6,
GS-8, and GS-10.
Sections 4 and 5 would increase the rates of basic compensation for certain
officers and employees in the judicial and legislative branches of the Government
by 10 percent, but not less than $400 or more than $800.
We have no comments on sections 4 and 5 since these provisions do not affect
the executive branch.
Section 6 would increase from $13,800 to $14,600 the maximum compensation
which may be paid to a director, officer, or employee of the Central Bank for
Cooperatives, or of any production credit corporation, production credit associa-
tion, or bank for cooperatives.
We have no objection to this provision of the bill.
Section 7 would increase by 10 percent, but not less than $400 nor more than
$800 the rates of basic compensation of officers and employees in the Department
of 1V]?edicine and Surgery, Veterans' Administration, paid under Public Law 293,
79th Congress, as amended. It also increases by $800 the maximum which may
be paid certain medical specialists under that act.
Section 8 would increase by 10 percent, but not less than $400 nor more than
3800, the rates of basic compensation provided by sections 412 and 415 of the
Foreign Service Act of 1946, as amended.
The proposed pay schedules for Department of Medicine and Surgery and
Foreign Service personnel would double the amount, and therefore the annual
cost, of the salary adjustments proposed by the administration for these groups.
In addition, the increases proposed by S. 67 would not correct, as would the
Administration proposal included in S. 774, existing distortions and inequities in
the Foreign Service and Department of Medicine and Surgery pay schedules.
For these reasons, we do not favor enactment of sections 7 and 8 of S. 67.
Section 9 would provide that no rate of compensation of $14,800 or more per
annum shall be increased by the act, and that no rate shall be increased to an
amount in excess of $14,800 per annum by the act.
We have no objection to this provision, which is consistent with the compensa-
tion schedules provided for in S. 774.
Section 10 would establish the effective date of the act as August 23, 1954, but
would provide that no payment may be made under the act until the first day of
the first pay period beginning more than 60 days after enactment. This section
also specifies various conditions of eligibility for retroactive pay.
As previously indicated, making the proposed pay increases retroactive would
result in a. major increase in the cost to the Government. Equally serious are the
administrative expenses and difficulties inherent in setting pay retroactively.
This feature of S. 67 would necessitate administrative review of tens of thousands
of personnel transactions involving pay,
Section 10 of the bill would require the review and possible reconstruction of
every personnel action which. has been effected since August 23, 1954, for each
employee on the rolls 60 days after the effective date of the act. Basic pay rates
would be recomputed, as well as retirement, social security, and income-tax
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10 FEDERAL-.EMPLOYEES PAY ACT OF 1955
withholding deductions; annuities for those who have retired and payments to
estates in the case of employees who died in the interim; all within-grade and
longevity step increases; all promotions from one grade to another; payments of
overseas allowances and differentials; and all payments of night differentials and
holiday compensation. Overtime pay would have to be computed on two bases:
(1) The provisions existing prior to enactment of Public Law 763., 83d Congress,
and. (2) the provisions which are current. Because of the differences in these
provisions, some employees would have to refund overtime payments.
Subsection 10 (c) provides that pay increases comparable to those provided by
the bill. but granted by administrative action pursuant to law may be made
retroactively effective on the same basis as if they had been provided by the bill.
The coverage of this subsection is so broad that it is applicable to blue-collar
workers whose compensation is based upon rates prevailing in private industry
in those localities in which the jobs are located. It is illogical to provide or au-
thorize increases on a nationwide basis for positions the pay of which is currently
fixed on the basis of local prevailing rates. We suggest that the subsection be
revised to specifically exclude prevailing-rate employees from its coverage.
For these reasons, as well as the added cost involved, we do not favor enact-
ment of section 10 of S. 67, but endorse pay adjustments on a prospective basis,
as provided in S. 774.
In summary, we do not favor enactment of S. 67 because the bill (a) involves
excessive costs to the Government, (b) would result in serious inequities to em
ployees, (c) fails to correct the deficiencies of present pay schedules, and (d) would
produce major administrative difficulties. In its stead, the Civil Service Com-
mission strongly recommends enactment of the administration's pay proposals as
contained in S. '774.
S. 774 proposes adjustments in the pay schedules of the Classification Act, the
Foreign Service Act, and Public Law 293 of the 79th Congress, covering certain
employees in the Veterans' Administration, Department of Medicine and Sur-
gery. The bill will provide an overall average increase of about 5 percent for
Classification Act and Foreign Service personnel, and a 4.4-percent increase for
the Department of Medicine and Surgery employees. The total cost of these
pay adjustments will be approximately $210,500,000.
We believe that the pay adjustments proposed in S. 774 are as fair as possible
within the limitations of the President's budget, and the practical ceiling imposed
by present salaries under the Executive Pay Act. They will assure that, as
employees are promoted to higher grades, their pay will provide more appropriate
recognition for their increased :responsibilities. Through these changes, pay
administration will be made more effective as a means for continued improvements
in the Federal personnel system.
We are advised that the Bureau of the Budget has no objection to the sub-
mission of this report.
By direction of the Commission:
Sincerely yours,
PHILIP YOUNG, Chairman-
ExFuUTIV): OFFICE OF THE PRESIDENT,
BUREAU OF THE BUDGET,
Washington, D. C.. February .V, 1955.
Ilon. OLIN D. JOHNSTON, - - -
Chairman, Committee on Post Office and Civil Service, -
United States Senate, Washington, D. C.
My DEAR MR. CHAIRMAN: This will acknowledge your request of January 17,
1955, for the views of this Bureau concerning S. 67, a bill to adjust the rates of
basic compensation of certain officers and employees of the Federal Government,
and for other purposes.
This bill, if enacted, would increase the rates of compensation under the Classi-
fication Act of 1.949, as amended, by more than 10 percent, effective retroactively
to August 23, 1954. Increases of 10 percent, but not Tess than $400 ($800 maxi-
mum) are provided for employees of the Veterans' Administration, Department of
Medicine and Surgery, and for employees of the Foreign Service. The bill would
also provide pay for supervisors at differentials of at least 5 percent over any wage
board employees supervised, and would direct the Civil Service Commission to
report on the desirability of eliminating grades GS--6, 8, and 10 of the Classifica-
tion Act of 1949, as amended. Salary increases would be provided officers and
eni.ployees in the judicial and legislative branches, concerning which no comment
is made herein. It is estimated that the portions of S. 67 pertaining to the execu-
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FEDERAL EMPLOYEES PAY ACT OF 1055 11
tive branch would cost nearly $400 million in fiscal year 1955 and over a half
billion dollars annually thereafter. No provision has been made for added
expenditures of this magnitude for this purpose in either the 1955 appropriations
or the 19c6 budget.
. On January 11, 1955, the President sent to the Congress a message proposing
certain improvements in pay and benefits for Federal civilian employees. S. 774
would carry these pay recommendations into effect by increasing about 5 percent
the rates of basic compensation provided employees under the Classification Act
of 1949, as amended, under the Foi eign Ser nice Act of 1946, as amended, and also
for employees in the Department of Medicine and Surgery of the Veterans'
Administration. S. 774 also incorporates the administration's recommendation
for eliminating the statutory numerical restriction on positions in grades CS-16,
17, and 18 of the Classification Act, replacing such statutory restriction with a
grant of authority to the President to control the maximum number of such
positions and to report annually thereon to the Congress. The cost of S. 774 is
estimated at approximately $210 million per annum, effective upon enactment,
an amount which has been taken into account in formulating the budget for 1956.
Since S. 67 would not carry into effect the administration's recommendations
concerning increases in statutory pay schedules and improvement of administra-
tion of top-level positions under the Classification Act, its enactment in its present
form cannot be recommended. The enactment of S. 774 would be in accord
with the program of the President.
Sincerely yours,
COni'TROLLvR GENERAL OF THE UNITED STATES,
Hon. OLIN D. JOHNSTON Washington, February 18, 1965.
,
Chairman, Committee on Post Office and Civil Service,
United States Senate.
DEAR MR. CHAIRMAN: Reference is made to letter of January 17, 1955, acknowl-
edged by telephone January 19, enclosing a copy of S. 67, and requesting our
views and comments thereon.
S. 67 proposes substantial increases in the compensation rates for employees
in the executive, legislative, and judicial branches of the Government. ;', study
of the bill discloses no basis for objection thereto by us and, other than as set out
below, we have no comments to offer.
Section 10 (c) of the bill provides that pay increases granted by administrative
action pursuant to law, comparable with those otherwise provided by the bill,
also may be made retroactively effective. To remove any doubt whether the
increases proposed to be authorized by section 10 (c) may be granted adminis-
tratively without regard to the so-called Antideficiency Act (31 U. S. C. 665),
it is suggested that the language of the section be supplemented by incorporating
therein at line 8, page 11, before the word "Pay", the following:
"Notwithstanding the provisions of section 3679, Revised Statutes, as amended
(31 U. S. C. 65),"
The retroactive feature of the bill essentially is a matter of congressional policy.
However, from the administrative aspect, we should like to point out that retro-
active legislation of the nature contemplated by S. 67 invariably creates unfore-
seeable and inequitable situations. In that regard the -bill contains no provision
extending its retroactive benefits to employees who have been converted from
positions under the Classification Act.pursuant to section 105, Public Law 763,
approved September 1, 1954, to ungraded positions in which 'the compensation
is fixed to accord with prevailing rates. It may be that you would care to consider
a remedy for that situation.
We are without sufficient information to make a reasonable estimate of the
cost of the proposed legislation.
Sincerely yours,
JOSEPH CAMPBELL
Comptroller General of the United Mates.
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12 FEDERAL EMPLOYEES PAY ACT OF 1955
CHANGES IN EXISTING LAW
In compliance with subsection (4) of rule XXIX of, the Standing
Rules of the Senate, changes in existing law made by the bill. (joint
resolution) as reported, are shown as follows (existing law proposed
to be omitted is enclosed in black brackets, new matter is printed in
italics, existing law in which no change is proposed is shown in roman):
CLASSIFICATION Ac't OF 1949, AS AMENDED
SEC. 603. (z) * * *
* * * * * * *
[(b) The compensation schedule for the General Schedule shall be as follows:
Grade
Per annum rates
-------------------------
G11-1 ----
$2,500
$2,580
$2,660
$2,740
$2,820
$2,900
$2,980
-
0i;-2_ -----------------------------
2,750
2,830
2,910
2,990
3,070
3,150
3,230
G5-3-------------- .----------------
2,950
3,030
3,110
3,190
3,270
3,350
3,430
(};j-4--------------.----------------
3,175
3,255
3,335
5,415
3,495
3,575
3,655
G5-5-------------------------------
3.410
3,535
3,660
3,785
3,910
4,035
4,160
(}5-6 -------------------------------
3,705
3,920
4,045
4,170
4, 295
4,420
4,545
G5-7-------------------------------
4,205
4,330
4,455
4,580
4,705
4,830
4,955
G4-8-------------------------------
4,620
4,745
4,870
4,995
5,120
5,245
5,370
(}5-9------------------------------
5,060
5,195
5,310
5,435
5, 560
5,685
5, 810
G5-10------------------------------
5,500
5,626
5,750
5,875
6,000
6,125
6,250
G5-11------------------------------
5,940
6,140
6,340
6,540
6,740
6,940
G5-12------------------------------
7,040
7,240
7,440
7, 640
7,840
8,040
G5-13-----------------------------
8,360
8,560
8,760
8,960
9,160
9,360
03_14 -----------------------------
9,600
9,800
10,000
10,200
11),400
10,600
G5-15------------------------------
10,800
]],050
11,300
11,550
15,800
G5-16------------------------------
12,000
12,200
12,400
12,600
12,800
G5-17-----------------------------
13,000
13,200
13,400
13,600
13,800
(}5-18-----------------------------
14,800
3
(b) The compensation schedule for the General Schedule shall he as follows:
(trade
Per annum rates
1---------------------------------
$2,700
43,800
$2,900
$.6,000
$3,100
$3,200
$3,300
2----------------- ----------------
3,050
6,150
3,350
8,360
3,450
3,660
3,650
3------.---------------------------
3,600
3,400
3,500
3,600
3,700
3,800
3,900
4 ----------------------------------
8,575
8,675
3,775
3,875
975
4,075
4,175
5----------------------------------
3,850
4,000
4,150
4,300
4,460
4,600
4,750
6.----------------------------------
4,275
4,436
4,575
4,725
J, 876
5,036
5,175
7-----------------------------------
4,735
4,875
5,035
6,175
(,,335
6,475
5,635
8-----------------------------------
5,175
6, m5
6,475
6,635
5,775
6,935
6,075
9-- -----------------------------
5,660
6,800
5,950
6,100
6,360
6,400
6,550
10.----------------------------------
6,125
6,375
6,435
6,575
6,736
6,875
7,035
i1----------------------------------
6,600
6,835
7,060
7,275
7,500
7,735
12.__-------------------------------
7,800
8,050
8,300
8,550
8,800
9,050
13---------------------------------
9,100
9,350
9,600
9,850
1),100
10,350
14---- ----------------------------
10,400
t0, 660
10,900
11,150
11,400
11,650
15----.-----------------------------
11,700
11,950
12,200
12,450
P?, 700
16 -----------------------------------
13,000
13,250
13,500
53,750
14,000
17----------------------------------
14,100
14,350
14,600
18---------------------------------
14,800
[((:) (1) The compensation schedule for the Crafts, Protective, and Custodial
Schedule shall be as follows:
[Grade
Per annum rates
CPC-1--------------------------
$1, 810
$1,870
$1,930
$1,990
$2,050
$2,110
$2,170
CPC-2--------------------------
2,420
2, 490
2,560
2,630
2,700
2, 770
2,840
C PC-3--------------------------
2, 552
2,632
2, 712
2, 792
2, 872
2, 952
3, 032
CPC-4--------------------------
2, 750
2, 830
2, 910
2, 990
:3,070
3,150
5, 230
C PC-S--------------------------
2, 974
3,054
:3,134
3, 214
3, 294
3, 374
3,454
C PC-fL --------------------------
3,200
3,280
3, 360
:1,440
3, 520
3,600
3, 680
CPC-7--------------------------
3,435
3, 535
3, 635
3, 735
3, 835
3,935
4, 035
CPC-S----------- ----------------
3,740
3,865
3,990
4,115
2,240
4,365
4,490
C PC-9---------------------------
4,150
4,275
4,400
4, 525
4,650
4,775
4,900
C PC-10----------.----------------
4, 565
4, 690
4,815
4,940
5,065
5,190
5, 315
[(2) Charwomen working part time shall be paid at the rate of $2,700 per
annum, and head charwomen working part time at the rate of $2,840 per annum.]
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FEDERAL EMPLOYEES PAY ACT OF 1955 13
(c) (1) The compensation. schedule for the Crafts, Protective, and Custodial
follows:
Schedule shall to as
,
Grade
Per annum rates
I ---------------------------------$1,900
$1,970
$2,040
$2,110
$2,180
$2,250
$2,320
2------------------------------------
2,550
2,630
2,710
2,790
2,870
2,950
2,030
3.----------------------------------
2,700
2,800
2,900
3,000
3,100
3,200
3,300
4-------------------------------- ---
3,050
8,150
3,250
8,350
3,450
3,550
3,650
5-----------------------------------
3,300
3,400
3,500
3,600
8,700
3,800
;,900
------------------------------------
5,576
3,675
3,771,
8,875
8,975
4,075
4,175
7-----------------------------------
5,850
4,000
4,150
4,300
4,450
4,600
4,750
8-----------------------------------
4,276
4,425
4,576
4,725
4,875
5,025
5,175
9-----------------------------------
4,725
4,875
5,025
5,176
6,825
5,475
1,625
10__________________________________
5,175
5,325
5,475
5,625
5,775
5,925
6,075
(2) Charwomen working part time shall be paid at the rate of $2,870 per annum,
and head charwomen working part time at the rate of $3,030 per annum.
SECTION 2 (b) of THE Ac'r OF OCTOBER 24, 1951
(b) The provisions of section 603 (b) of the Federal Employees Pay Act of
1945, as amended, section 7 (b) of the Federal Employees Pay Act of 1946, as
amended, section 303 (c) of the Postal Rate Revision and Federal Employees
Salary Act cf 1998, and the provisions of paragraph (b) under the heading
"Increased pay for legislative employees" in the Second Supplemental Appio-
priation Act, 1950, shall not apply to officers or employees subject to the pro-
visions of subsection (a) or to employees in the offices of Senators, but nc such
officer of employee, or any other officer or employee of the Senate or House of
Representatives, shall be paid with Iespect to any pay period basic compensa-
tion of basic compensation plus additional compensation at a rate in excess of
[$11,646] $12,810 per annum unless expressly authorized by law.
SECOND PROVISO IN PARAGRAPH IN LEGISLATIVE BRANCH APPROPRIATION ACT
1947, RELATING TO THE AUTHORITY OF SENATORS To RE&RRPNGE BASIC
SALARIES OF EMPLOYEES IN THEIR RESPECTIVE OFFICES
Provided further, That no salary shall be fixed under this paragraph at a basic
rate of more than [$5, 880] $6,540 per annum, except that the salary of one
employee, other than the administrative assistant, in the office of each Senator
may be fixed at a basic rate of not snore than [$7,320] $8,160 per annum and the
salary of the administrative assistant to each Senator may be fixed at a basic
rate of not more than [$8,400] $9,180 per annum..
SECTION 753 (e) or TITLE 28, UNITED STATES CODE
(e) Each reporter shall receive an annual salary to be fixed from Time to time
by the Judicial Conference of the 'United States at not less than $3,000 not mole
than [$6,000] $6,600 per annum. All supplies shall be furnished by the reporter
at his own expense.
SECTION 66 OF THE FARM CREDIT ACT OF 1933
SEC. 66. No director, officer, or employee of the Central Bank for Cooperatives,
or of any production credit corporation, production credit association, or bank
for cooperatives shall be paid compensation at a rate in excess of [$13,800]
$14,800 per annum.
(d) Any person, rated as a medical or surgical specialist under the provisions of
this section, shall receive, in addition to his basic pay, an allowance equal to 25
percent of such pay: Provided, Thai in no event shall the pay plus the allowance
authorized by this subscription exceed [$12,800] $14,080 per annum.
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