UPPER LEVEL GRADES AND AVERAGES SALARIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00357R000700070001-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: November 17, 2016
• Document Release Date: August 9, 2000
• Sequence Number: 1
• Publication Date: June 10, 1965
• Content Type: REGULATION

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EXECUTIVE OFFICE OF THE PRESIDENT
BUREAU OF THE BUDGET
WASHINGTON, D.C. 20503
BULLETIN NO. 65-10 June 10, 1965
TO THE HEADS OF EXECUTIVE DEPARTMENTS AND ESTABLISHMENTS
SUBJECT: Upper level grades and average salaries
1. Purpose. This Bulletin is issued to (a) confirm and
clarify policies previously communicated to each agency
head with regard to upper level grades and average salaries,
and (b) establish certain procedures to be followed in these
matters.
2. Policy and background. After the establishment of the
comparability pay principle in the 1962 Pay Act, the Congress
noted that "there no longer remains any justification for the
continuation of the inflationary- trend of upgra ing o oste
tions_under the Classification Act." This notZ ec was not to
interpreted as prohibiting in any way the necessary and
proper reclassification of positions," but as a warning that
"unnecessary and unjustified inflation of the grades of posi-
tions cannot be excused or tolerated."
The continuing concern about the problem of unwarranted
salary increases was also described in the letters sent to
the heads of the various departments and agencies which set
forth the budget allowances for fiscal year 1966:
"The Bureau of the Budget has been increasingly
concerned that the almost continuous-rise in the
average grades of Federal employees, the large
increase in the numbers of higher grade jobs,
and the steady increase-in average salaries in
Federal agencies ave proceeded at a rate higher
than sa comp T e wi e prim ple of compares.
t with salaries outside-the Government wnicn-_
was accepted a oncxress a.n ie~`e ecT- aT"SaTa y
_ Each year Ci cr lar i o =3
Reform Act of _k952
giving instructions for the, preparation of agency
budget estimates, required special justification
for increases in average salary which exceed the
effect of within-grade promotions and reasonable*
changes in position structure.
"In recc.nition of the fact that'the control of
agency gra -e structure an average six ar1es is a
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primary responsibility of agency management, the
budget allowance letters ear requested eac wi
agencyeead to make every effort to r a n a .n ize
avez ~ g a e-fa. ki gencv fo he remainder of
fiscal year 1964 and for all of 1965 at the same
lee~S`Jas Z , w i t h the resu `hat the then cur-
rent averac, e salar wv ould _,.e, he cE bept. a.s di f, ed.
by e effect of the .,dS.a ary Rzorm Aetd..,;_
t42 net effect_of..within radeMpromotions Subse-
quently, in.April 1964, the attention of the heads
of all the.major agencies was drawn to the upward
creep in average grade and especially. to the par-
ticularly large increase in the higher grades, and
they were asked to take steps to remedy the situa-
tion in these large agencies. Circular No. A--11,
giving instructions for the 1966 budget, repeated
and strengthened the justification requirements of
previous years and, in addition, called for special
information on the numbers of positions at. grades
GS-14 and above.
"Our review of agency budget submissions for 1966
added to our concern. Generally, the actual numbers
of higher grade jobs at the end of 1964 were greater
than shown in the 1965 budget last January. Likewise,
the numbers of higher: grade jobs proposed for 1965
were usually significantly greater than budgeted
-last January. Further increases were generally pro-
posed for 1966. The average salaries followed the
same pattern."
3.. Actions on the 1966 budget. Because of.the growing con-
.-ccern described in paragraph-.2 above,special emphasis was "
given to average salaries and upper grades in the examinatio
and review of the 1966 budget. Agency budget requests and
justifications containing special information on upper grades
and average salaries were considered carefully in the light
of each agency's program responsibilities. As a result of
this review, the 1966 budget as recommended'by the President
to the Congress provides for an increase of about three
ILLEGIB thousand filled positions at GS-14 and above, or their
nt,.between June 1964 and June'1966. This compares
.
actual increase of more than ten thousand filled
s at these higher grades between June 1962 and.June
4. Nature of allowances. The nature of the allowances for
upper eve grades and average salaries was described in the
letter sent'to'each department and agency head which set forth
the budget allowances for fiscal-year 1966:
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"We have recently transmitted to your staff the numbers
of positions in grade GS-14 and in each grade above (or
their equivalent), which are limits in total for your
agency on the numbers of such positions in each grade
structure so that the average salary ob~ec ive wi e
acntieve y the end of the current year.
Z,
that every reasonable effort will be made, as new positions
shown for the years 1965 and 1966 in the detailed per-
sonnel compensation schedules in the 1966 budget docu-
ment. These numbers are objectives toward which you
are asked to work for the remainder of fiscal year 1965
and for fiscal year 1966. While they are not imposed
as ceilings, it is expected that every reasonable effort
will be made to make the authorized position structure
at the end of each year come within the numbers specified,
except for changes within the total resulting from .
downgrading of positions and from allocations of super-
grade positions by the Civil Service Commission. The
.position management system required by our Circular.
No. A-44 should be operated with that end in view.
"Average salarv f igures for the ia,sca e r~ 196 ncL,
1966 are listed ixaZ_s~hedule f-our ._~genc.~These
average salariesere the maximum perznissible t
printing in the personneLs:xnmary schedules for the re-
spective account , The personnel c mo compensation costs for.
each appropriation for the remainder of 1965 and for 1966
should be based on them. The amount shown for 1966 for
each account is a ceiling on the average salary for that
account and is to govern the development of your' program
plans for 1966. However, the amounts listed for 1965
represent objectives, rather than ceilings, since they
may be lower than the existing average,. and be difficult
to reach in so short a time. Nevertheless it is ear ected
"It should be clearly understood that actions to achieve
the objectives and ceiling established herein are not to
include demotions, reductions in force, or other. actions
affecting incurrLbents. Rather it is expected that reduc-.
tions will be accomplished through the normal process of
turnover without affecting those now on the rolls. More-
over, in the case of the ceilings on 1966 average salaries, .
if it appears that, after all other feasible steps have
been taken, dismissals or downgradings. of incumbents would
be required to meet a ceiling, we shall want to review the.
ceiling at your request. A request for adjustment in the
allowable average salary will also be in'order in cases
where dollar savings will be achieved by reducing.the total
number of positions (for example, in reductions'in
positions. having salaries below the.average).",
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5. Adjustments in-the 1966 average salary ceiling. Requests
for adjustments in the 1966 average salary ceiling for any
account will be in order under the following conditions;
a.- When, after all other feasible steps have been
taken, it appears that dismissals or downgradings of in-
cumbents would be required to meet the ceiling for that
account; or
b. When congressional action-on the 1966 budget request,
or on supplemental requests or budget amendments transmitted
after the budget, clearly requires a reduction in the number
of requested positions carrying salaries below the average,
or an increase in the number of positions carrying grades
ah ov* the av+ rage; or
c. When it is desired to achieve dollar savings by
reducing the total number of positions financed by the ap-
propriation with a resulting increase in the average salary.
Instructions relating to the review of average salaries in
the process of preparing the 1967 budget will be contained -
in the annual revision of Circular No. A-il. Under normal
circumstances, it would be expected that adjustments under b
and c above would be reflected in the agency's 1967 budget
submission and would be considered in examining the 1967
budget. it would also be expected that the need for adjust-
ments under a above would not become clear before the time
the agency.1967 budget submissions are received.
6. Reporting on objectives. Reports, on actual accomplishment
for 1965 in relation to the objectives for positions in grades
GS-14 and, above and for average salaries will be made by
agencies in connection with their 1967 budget submissions.
The annual revision of Circular No. A-11 will provide the
instructions that may be needed for such reporting. In
addition, it will set forth-policies to guide the agencies
in reviewing and reporting on progress toward the 1966
objectives. For purposes of present planning, however, it
is expected that Circular No. A-11 will require submission
to the Bureau of the Budget by September 1, 1965, of a sum
wary showing, for the agency as a whole, the number of
positions in each grade GS-14 and above comprising the
authorized position structure and the actual employment in
those positions as of June 1965. The summary would be accom-
panied by such brief explanatory material as.the agency head
might deem appropriate, including the-reasons in any case
where an objective has been exceeded.
CHARLES.L. SCHULTZE
f: r (~ Director
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IMP,