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PART D-EMPLOYEES SUBJECT TO THE FOREIGN SERVICE ACT

FOREIGN SERVICE OFFICERS

SEC. 131. The fourth sentence of section 412 of the Foreign Service Act of 1946, as amended (22 U.S.C. 867), is amended to read as follows: “On the first day of the first pay period which begins on or after January 1, 1964, the per annum salaries of Foreign Service officers within each of the other classes shall be as follows:

“FOREIGN SERVICE OFFICERS

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SEC. 132. Subsection (a) of section 415 of such Act is amended to read as follows:

“(a) There shall be ten classes of Foreign Service staff officers and employees, referred to hereafter as staff officers and employees, and on the first day of the first pay period which begins on or after January 1, 1964, the per annum salaries of such staff officers and employees within each class shall be as follows:

“FOREIGN SERVICE STAFF

Class 1..
Class 2
Class 3..
Class 4.
Class 5..
Class 6.
Class 7..
Class 8.
Class 9.
Class 10.

$14, 660 $15, 150 $15, 640 $16, 130 $16, 620 $17, 110 $17, 600 $18,090 $18, 580 $19, 070

12, 325 12, 735 13, 145 13, 555 13, 965 14, 375 14, 785
10, 300

15, 195
10, 645

15, 605 10, 990

16, 015 11, 335 11, 680 12,025 12, 370 12, 715 8,665 8,955

13,060 13, 405 9, 245

9, 535 9, 825 10, 115 10, 405 10, 695 7, 800 8, 060

10, 985 8, 320 8, 580

11, 275 8, 840 9, 100 9, 360 7,020 7,255

9, 620 9, 880 7,490

10, 140 7, 725 7,960 8, 195 6, 325

8, 430 8,665 6, 535

8,900 6, 745

9, 135 6,955 7, 165 7,375 7,585 7, 795 5, 690 5, 880

8, 005 6,070

8, 215 6, 260 6,450 6,640 6, 830

7,020 5, 125

7,210 5, 295 5, 465 5, 635

7,400 5,805 5, 975

6, 145 4, 610

6, 315 6, 485 4, 765

6, 655 4,920 5, 075 5, 230 5, 385 5, 540 5, 695 5,850 6, 005”.

CONVERSION

SEC. 133. Foreign Service officers, Reserve officers, and Foreign Service staff officers and employees who are entitled to receive basic compensation immediately prior to the effective date of this title at one of the rates provided by section 412 or 415 of the Foreign Service Act of 1946, shall receive basic compensation on and after the effective date of this part at the rate of their class determined to be appropriate by the Secretary of State.

PART E-EMPLOYEES IN LEGISLATIVE BRANCH SEC, 141, (a) Each officer and employee in or under the legislative branch of the Government whose rate of compensation is increased by section 5 of the Federal Employees Pay Act of 1946 shall be paid additional compensation at the rate of 10 per centum of his gross rate of compensation (basic compensation plus additional compensation authorized by law).

(b) The basic compensation of each employee in the office of a Senator is hereby adjusted, effective on January 1, 1964, to the lowest multiple of $60 which will provide a gross rate of compensation not less than the gross rate such employee was receiving immediately prior thereto, except that the foregoing provisions of this subsection shall not apply in the case of any employee if on or before the fifteenth day following the date of enactment of this Act the Senator by whom such employee is employed notifies the disbursing office of the Senate in writing that he does not wish such provisions to apply to such employee. In any case in which, at the expiration of the time within which a Senator may give notice under this subsection, such Senator is deceased such notice shall be deemed to have been given.

(c) Notwithstanding the provision referred to in subsection (d), the rates of gross compensation of the elected officers of the Senate (except the Presiding Officer of the Senate), the Legislative Counsel of the Senate, the Official Reporters of Debates of the Senate, the Parliamentarian of the Senate, the Senior Counsel in the Office of the Legislative Counsel of the Senate, and the Chief Clerk of the Senate are hereby increased by 10 per centum.

(d) The paragraph imposing limitations on basic and gross compensation of officers and employees of the Senate appearing under heading “SENATE” in the Legislative Appropriation Act, 1956, as amended (74 Stat. 304; Public Law 86568), is amended to read as follows:

“No officer or employee whose compensation is disbursed by the Secretary of the Senate shall be paid basic compensation at a rate in excess of $8,880 per annum, or gross compensation at a rate in excess of $22,000 per annum, unless expressly authorized by law."

(e) The limitation on gross rate per hour per person provided by applicable law on the effective date of this section with respect to the folding of speeches and pamphlets for the Senate is hereby increased by 10 per centum. The amount of such increase shall be computed to the nearest cent, counting one-half cent and over as a whole cent. The provisions of subsection (a) of this section shall not apply to employees whose compensation is subject to such limitation.

(f) Each officer or employee of the House of Representatives, whose compensation is disbursed by the Clerk of the House of Representatives and is not increased automatically, or is not permitted to be increased administratively, by reason of any other provision of this section, shall receive additional compensation at the rate of 10 per centum of the rate of his total annual compensation in effect immediately prior to the effective date of this section.

(g) The limitations on gross rate per thousand and gross rate per hour per person provided by applicable law on the effective date of this section with respect to the folding of speeches and pamphlets for the House of Representatives are hereby increased by 10 per centum. The amount of each such increase shall be computed to the nearest cent, counting one-half cent and over as a whole cent.

(h) The additional compensation provided by this section shall be considered a part of basic compensation for the purposes of the Civil Service Retirement Act (5 U.S.C. 2251 and the following).

(i) Notwithstanding any other provision of this section, no rate of compensation which exceeds $22,000 shall be increased by this section, and no increase provided by this section shall cause the gross rate of compensation (basic plus additional compensation authorized by law) or the total annual compensation of any officer or employee to exceed $22,000.

PART F-MISCELLANEOUS PROVISIONS

CONVERSION RULES-EMPLOYEES RECEIVING SPECIAL RATES

SEC. 151. Section 504 of the Federal Salary Reform Act of 1962 (76 Stat. 842) is amended by inserting after subsection (c) thereof a new subsection to read as follows:

“(d) The rate of basic compensation, established under this section, and received by any officer or employee immediately prior to the effective date of a statutory increase in the compensation schedules of the salary systems specified in subsection (a) shall be initially adjusted on the effective date of such new compensation schedules in accordance with conversion rules and regulations prescribed by the President or by such agency or agencies as he may designate."

REVISION OF SALARY LIMITATIONS FOR CERTAIN POSITIONS

SEC. 152. That part of section 201(f) of the National Aeronautics and Space Act of 1958 (72 Stat. 428; 42 U.S.C. 2471 (f)), fixing a limit of $19,000 on the compensation of seven persons in the National Aeronautics and Space Council is amended by striking out the words "compensated at the rate of not more than $19,000 a year,” and inserting in lieu thereof "compensated at not to exceed the highest rate of grade 18 of the General Schedule of the Classification Act of 1949, as amended,”.

CEILING PROVISION

SEC. 153. Notwithstanding any other provision of this Act, except as provided herein, the rates of basic compensation in excess of $20,000 per annum provided in this Act shall become effective on the effective date of legislation adjusting the compensation of heads of executive departments and other Federal officials and until such effective date the rate of basic compensation of each officer and employee subject to this Act shall not exceed $20,000: Provided, That no rate of basic, gross, or total annual compensation or salary shall be reduced by reason of the enactment of this Act.

AGRICULTURAL STABILIZATION AND CONSERVATION COUNTY COMMITTEE EMPLOYEES

SEC. 154. The rates of compensation of persons employed by the county committees established pursuant to section 8(b) of the Soil Conservation and Domestic Allotment Act (16 U.S.C. 590h (b)) shall be increased by amounts equal, as nearly as may be practicable, to the increases provided by section 101 for corresponding rates of compensation in the appropriate schedule or scale

of pay.

EFFECTIVE DATE

SEC. 155. Except as otherwise expressly provided, this Act shall become effective on the first day of the first pay period which begins on or after January 1, 1964.

The CHAIRMAN. As indicated in the letter from the Chairman of the Civil Service Commission, the administration's salary proposal is submitted pursuant to the policy of the Postal Service and Federal Employees Salary Act of 1962 (Public Law 87–793), to the effect that such recommendations are expected to be submitted from time to time as appropriate to maintain the comparability” principle with respect to the relationship between Federal and private enterprise salary levels. The Chairman of the Civil Service Commission stated, in his letter of submittal, that the salary rates therein proposed are necessary to carry out the comparability policy.

Personally, it is my feeling that further general salary increases are completely inappropriate at this time—when the second phase of the generous raises granted by Public Law 87–793 has yet to be placed in effect next January. There are a number of other questions of critical national concern yet to be resolved by the Congress this year, many of which should be decided before consideration is given to increasing expenses by granting general pay raises for Government workers. The postal, classified, and other Federal employees' salary schedules certainly seem adequate even generous, in view of the second-phase increase already approved for next January under last year's bill. In fact, I have received several letters from employees strongly expressing this view.

The first witness this morning is Chairman John W. Macy, Jr., of the U.S. Civil Service Commission, who will present the views of the administration on the pending legislation.

Mr. Macy, we will be glad to receive your testimony and that of your associate at this time.

STATEMENT OF JOHN W. MACY, JR., CHAIRMAN, U.S. CIVIL SERV

ICE COMMISSION, ACCOMPANIED BY 0. GLENN STAHL, BUREAU OF PROGRAMS AND STANDARDS, U.S. CIVIL SERVICE COMMISSION

Mr. Macy. Thank you, Mr. Chairman.

I am accompanied this morning by Mr. Glenn Stahl, the Director of the Commission's Bureau of Programs and Standards.

I appreciate the opportunity to appear before you to open these hearings on the matter of Federal

pay. Mr. Chairman and members of the committee, I am especially glad to have this opportunity to appear before you today, because we are jointly concerned with a highly significant event: the first annual review of Government pay levels under the Federal Salary Reform Act of 1962. The act provides a sound, modern salary policy. We are now engaged in the first effort to make that policy effective.

On April 29 the President transmitted to Congress the comparison of Federal salaries with those in private enterprise, as required each year by the new salary law, and recommended the revisions in Federal salaries necessary to carry out the statutory policy of comparability with private enterprise levels. At the President's direction, the Civil Service Commission sent to Congress on May 16 a draft of a proposed bill which would put the President's recommended adjustments into effect in January 1964. The delayed effective date was recommended to coincide with the second step in salary increases authorized in the Salary Reform Act to catch up with comparability levels as measured in 1962. I will return to this question of effective dates later.

I wish to express my appreciation to Mr. Udall for introducing the bill, H.R. 7552, which incorporates this proposal, and to other members of the committee who have introduced identical bills. I also wish to thank the members of the committee staff, particularly Mr. Charles Johnson, for their cooperation in arranging for committee prints of the documents transmitted with the President's message and the bill draft, which facilitate consideration of the proposal.

The CHAIRMAN. They will be included in the record. (The document referred to follows:)

THE WHITE HOUSE. To the Congress of the United States :

I forward herewith the annual comparison of Federal salaries with the salaries paid in private enterprise, as provided by section 503 of the Federal Salary Reform Act, and recommended adjustment of the Federal statutory salary schedules in accordance therewith, to be effective in January 1964. The Civil Service Commission will send to the Congress in the next few days a draft bill which would put these recommendations into effect. The budget which I have proposed for fiscal year 1964 contains a provision for $200 million for the adjustment.

The Federal Salary Reform Act of 1962, the most important Federal employee pay legislation in 40 years, declares that Federal salary rates shall be comparable to private enterprise salary rates for the same levels of work, and provides in section 503 that:

“In order to give effect to the policy stated in section 502, the President: (1) shall direct such agency or agencies, as he deems appropriate, to prepare and submit to him annually a report which compares the rates of salary fixed by statute for Federal employees with the rates of salary paid for the same levels of work in private enterprise as determined on the basis of appropriate annual surveys conducted by the Bureau of Labor Statistics, and, after seeking the views of such employee organizations as he deems appropriate and in such manner as he may provide, (2) shall report annually to the Congress (a) this

comparison of Federal and private enterprise salary rates and (b) such recommendations for revision of statutory salary schedules, salary structures, and compensation policy, as he deems advisable.”

By Executive Order 11073, I directed the Director of the Bureau of the Budget and the Chairman of the Civil Service Commission to make the required annual comparisons and to refer the Bureau of Labor Statistics findings and their comparisons to the Federal employee organizations for their views. Under the order the Director and the Chairman are to report these comparisons and employee views to me, and to make recommendations with respect to the several statutory salary systems after consultation with the Postmaster General, the Secretary of State, and the Administrator of Veterans’ Affairs.

The first annual report of the Director and the Chairman is attached. The Bureau of Labor Statistics national survey of professional, administrative, technical, and clerical pay shows that private enterprise rates increased in 1961–62. The new levels of private enterprise rates are reflected in the revised statutory salary schedules proposed in the attached report.

To carry out the intent of the 1962 Salary Reform Act, the schedules in the attached report, which will be in the bill to be submitted by the Chairman of the Civil Service Commission, should be adopted in lieu of the second-phase schedules provided in the act, to be effective in January 1964.

The Salary Reform Act, pending adjustments in executive pay, imposed a temporary $20,000 ceiling on the GS-18 salary, in place of the $24,500 rate I had recommended. “As one consequence of this ceiling, the act established rates below the 1961 comparability levels for all grades above GS-7. The schedules I am now proposing include the increases necessary to bring salary rates for all grades through GS-15 up to full comparability. The scheduled rates proposed for the grades above GS–15 approach as near to full comparability as is feasible at this time, in light of the review now being made of top executive salaries. It is highly desirable, in the interests of equity and the solution of pressing problems in professional and administrative staffing, to achieve full comparability rates for all grades as soon as possible. The draft bill to be submitted by the Chairman of the Civil Service Commission, which would put into effect up-to-date career salary schedules, will take account of the relationship with executive pay by providing that the rates above $20,000 in the recommended career schedules shall go into effect only upon adjustments in top executive pay.

In accordance with the recommendations of the Senate Committee on Post Office and Civil Service, a study of executive pay is now underway. Development of an objective approach to Federal executive pay poses important and complex problems. Consequently, I have asked the Advisory Panel on Federal Salary Systems to study the subject and to recommend a course of action.

The views expressed by employee organizations, which are contained in appendix C of the attached report, are thoughtful and constructive. The greatest concern expressed by employee representatives is for reduction in the timelag between BLS reports and adjustments in the statutory salary rates. The spirit of the comparability principle and natural considerations of equity require that the lapse of time be held to the minimum possible, and the Director of the Bureau of the Budget and Chairman of the Civil Service Commission will review the process and renew discussion of the subject with employee organizations. Several other suggestions of substance have already been or will be studied and discussed with employee organizations.

The Government's action in this, the first year of operations under the Salary Reform Act, is critical to the rights and reasonable expectations of Federal employees and to the needs of Federal agencies. The Government has adopted the principle of comparability with private enterprise and a process for accomplishing it which are noteworthy for objectivity and clarity. By our actions in this first year's test we can demonstrate that the Government has sincerely committed itself to the twin proposition of fair treatment of is employees and adequate compensation for recruitment and retention purposes.

JOHN F. KENNEDY. THE WHITE HOUSE, April 29, 1963. Mr. Macy. These documents, the joint annual report of the Director of the Bureau of the Budget and the Chairman of the Civil Service Commission transmitted with the President's message and the statement of purpose and justification and section analysis accompanying

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