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(15) In subsection (a) of section 3526—

(A) Change the catch line to read “ASSISTANT POSTMASTER (KP-39)”; and

(B) Delete "annual receipts of $16,900,000" in the second sentence
of paragraph (1) and insert in lieu thereof "approximately 400,000

revenue units annually”.
(16) In subsection (b) of section 3526

(A) Change the catch line to read “POSTMASTER (KP-40)”;
(B) Delete "first class" in the first sentence of paragraph (1) ; and

(C) Delete "annual receipts of $4,470,000" in the second sentence of
paragraph (1) and insert in lieu therof "approximately 106,000 rev-
enue units anually”.
(17) In subsection (b) of section 3527—

(A) Change the catch line to read “ASSISTANT POSTMASTER
(KP-42)”; and

(B) Delete "annual receipts of $48,000,000" in the second sentence
of paragraph (1) and insert in lieu thereof "approximately 1,000,000

revenue units annually".
(18) In subsection (c) of section 3527–

(A) Change the catch line to read “POSTMASTER (KP-43)
(B) Delete "first class" in the first sentence of paragraph (1); and

(C) Delete "annual receipts of $8,460,000” in the second sentence of
paragraph (1) and insert in lieu thereof "approximately 200,000 reve-

nue units annually".
(19) In subsection (b) of section 3528

(A) Change the catch line to read "ASSISTANT POSTMASTER
(KP-45)”; and

(B) Delete “annual receipts of $140,000,000" in the second sentence
of paragraph (1) and insert in lieu thereof "approximately 2,500,000

revenue units annually”.
(20) In subsection (c) of section 3528-

(A) Change the catch line to read "POSTMASTER (KP-46)”;
(B) Delete "first class" in the first sentence of paragraph (1); and

(C) Delete "annual receipts of $48,000,000" in the second sentence of
paragraph (1) and insert in lieu thereof “approximately 400,000 revenue

units annually”.
(21) In section 3529-

(A) Change the catch line to read “POSTMASTER (KP-47)”;
(B) Delete "first class” in the first sentence of paragraph (1); and

(C) Delete “annual reecipts of $48,000,000" in the second sentence of
paragraph (1) and insert in lieu thereof "approximately 1,000,000 reve-

nue units annually”.
(22) In section 3530

(A) Change the catch line to read “POSTMASTER (KP-48)”;
(B) Delete "first class” in the first sentence of paragraph (1); and

(C) Delete "annual receipts of $140,000,000" in the second sentence
of paragraph (1) and insert in lieu thereof “approximately equal to

2,500,000 revenue units annually". SEC. 116. Subsection (a) of section 3542 of title 39, United States Code, is amended by

(a) deleting "sections 3543 and 3544" from the second sentence and inserting in lieu thereof "section 3543”, and

1

(b) amending the Postal Field Service Schedule II to read as follows:

"POSTAL FIELD SERVICE SCHEDULE II "(To be effective for the period beginning on the first day of the first pay period beginning on or after January

1, 1964, and thereafter)

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1. 2. 3. 4.. 5..

6. 7.. 8. 9.

$3,820 $3,950 $40, 80 $4, 210 $4, 340 $4,470 $4,600 $4, 730 $4,860 $4, 990 $5, 120 $5, 250

4, 135 4,275 4, 415 4,555 4,695 4,8354,975
4, 480

5, 115
4, 630

5, 255 5, 395 4, 780 4,930

5, 535

5, 675 5, 080 5, 230 4, 855

5, 380 5, 015

5, 530 5, 680

5,830 5,9806, 130 5, 175 5, 335 5, 495 5, 6555, 815 5, 2455, 420

5, 975 6, 135 6, 295 5, 595

6, 455 6, 615 5, 7705, 945 6, 1206, 295 6, 4706,645 6,820 6,995 7,170 5, 675 5, 865 6,055 6, 245 6, 435 6,625 6,815 7, 005 7. 195 6, 140 6, 345 6, 550 6, 755 6,960 7,165 7,370 7,575 | 7,780 7,985

7,3857, 5757, 765 6, 650 6, 870 7,090 7, 310 7, 530 7,190 / 7, 430

7,750 7, 970 8, 190 8, 410
7, 670 7, 910

8, 630
8, 150 8,390 8, 630 8,870
7, 9808, 245

9, 110

9, 350 8, 5108, 775 9, 040 9,305 9,570 9,835 10,100 10, 365 8, 850 9, 145 9, 440 9,735 10,030 10, 325 10, 620 10,915 11, 210 11, 505

9, 820 10,145 10,470 10,795 11, 120 11, 445 11, 770 12,095 12, 420 12, 745 10,875 11, 240 11,605 11,970 12,335 12,700 13,065 13, 430 13,795 14, 160 12,060 12, 465 12, 870 13,275 13, 680 14,085 14,490 14,895 15, 300 15, 705 13, 385 13,830 14, 275 14,720 15, 165 15,610 16,055 16,500 16, 945 17,390

10.

i

11 12 13. 14. 15.

16. 17 18 19. 20.

14,840 (15,335 15,830 16, 325 16,820 17, 315 17,810 18,305 18, 800 19, 295
16,455 17, 005 17,555 18, 105 18,655 19, 205 19, 755 20, 305 20,855 21, 405
18, 250 18, 860 19, 470 20, 080 20, 690 21, 300 21, 910 22, 520 23, 130 23, 740
20, 245 20, 920 21,595 22, 270 22,945 23, 620 24, 295 24, 970
22, 445 23,195 23,945 24,695 25, 445

SEC. 117. In subsection (a) of section 3543 of title 39, United States Code, Rural Carrier Schedule II is amended to read as follows:

“RURAL CARRIER SCHEDULE II

"(To be effective for the period beginning on the first day of the first pay period beginning on or after January

1, 1964, and thereafter)

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Carriersin ruraldelivery

service: Fixed compensation per annum.

$2, 155 $2,255 $2,355 $2, 455 $2,555 $2,655 $2,755 $2,855 $2,955 $3,055 $3,155 $3,255 Compensation per mile

per annum for each
mile up to 30 miles of
route
80 82 84 86 88 90 92 94 96 98 100

102 For each mile of route over 30 miles.

25 25 25 25 25 25 25 25 25 25 25 25".

SEC. 118. (a) Section 3544 of title 39, United States Code, is amended to read as follows: “Section 3544. Compensation of Postmasters at Fourth-Class Offices

“(a) The Postmaster General shall rank the position of postmasters of fourthclass offices in level 5 of the Postal Field Service Schedule and shall establish the annual rate of basic compensation for each such position in the proportion of the annual rate of basic compensation for positions in PFS-5 which he determines, in consideration of the postal needs of the patrons of the office, that the postmaster's hours of service bear to full-time service. Determinations made by the Postmaster General under this subsection shall be final and conclusive until changed by him.

“(b) Persons who perform the duties of postmaster at a post office of the fourth class where there is a vacancy or during the absence of the postmaster on sick or annual leave or leave without pay shall be compensated at the rate of

basic compensation for PFS level 5, Step 1, determined in accordance with subsection (a) of this section.

"(c) At seasonal post offices of the fourth class, the Postmaster General may authorize the payment of basic salary prorated over the pay periods the office is open for business during the fiscal year.

"(d) When required by the Postmaster General a postmaster at a fourth-class office shall, and any other postmaster in PFS level 5 when permitted by the Postmaster General may, furnish quarters, fixtures, and equipment for an office on an allowance basis. The allowance for this purpose shall be an amount equal to 15 per centum of the basic compensation for the postmaster at the office computed on the basis of the first step of PFS level 5.".

(b) (1) Each postmaster at a fourth-class office on the effective date of this section shall be assigned to the numerical step of level 5 of Postal Field Service Schedule II (PFS II-5), which corresponds to the numerical step of the FourthClass Office Schedule (FOS) receipts category which he occupied immediately prior thereto; or to the lowest step in PFS II-5 which will yield him compensation for the number of hours of service determined under section 3544 of title 39, United States Code, which is not less than that to which he would otherwise be entitled on the effective date of this section under FOS II, whichever is higher.

(2) If no step in PFS II-5 will yield the postmaster compensation equal to or greater than that which he would receive under FOS II or section 712 (2) of the Act of October 11, 1962 (76 Stat. 856), the postmaster shall receive compensation at the rates fixed by FOS II and section 3544 of title 39, United States Code, as they existed prior to the effective date of this section, or section 712(2) of said Act. Subject to provisions of section 3560 of title 39, United States Code, the compensation of a postmaster paid in accordance with the preceding sentence shall be adjusted for changes in gross postal receipts of his office as though this Act had not been enacted. Whenever the compensation of a postmaster who has been paid in accordance with the foregoing provisions of this subsection no longer exceeds the compensation he would receive pursuant to section 3544 of title 39, United States Code, as amended by this Act, he shall be converted to the Postal Field Service Schedule in accordance with subsection (a) of this section.

(3) Prior to the conversion of a postmaster's compensation to PFS J, each postmaster to whom this section applies shall receive the benefit of any step increase theretofore earned.

(c) The table of contents of chapter 45 of title 39 of the United States Code is amended by deleting the following: "3544. Fourth Class Office Schedule" ; and inserting in lieu thereof “3544. Compensation of Postmasters at Fourth-Class Offices”.

SEC. 119. (a) Subsection (a) of section 6007 of title 39, United States Code, is amended by deleting the following:

“(a) The Postmaster General shall pay to persons, other than special delivery messengers at post offices of the first class, for making delivery of special delivery mail such fees as may be established by him not in excess of the special delivery

(b) Section 2009 of title 39, United States Code, is amended by deleting “at any price less than eight cents per piece" and inserting in lieu thereof “at any price less than the fees established pursuant to section 6007 of this title.”. SEC. 120. Section 3560 of title 39, United States Code, is amended as follows:

(a) By deleting from subsection (a) “(3) gross receipts category, with respect to the Fourth-Class Office Schedule", and by inserting in lieu thereof, “(3) minimum hours of service with respect to postmasters in fourth-class post offices", and

(b) By deleting from subsection (f), “(1) reductions in class or gross receipts category of any post office, or”, and inserting in lieu thereof, “(1) reductions in class, revenue units of any post office or the minimum hours

of service for a fourth-class post office, or”. SEC. 121. (a) Section 711 of title 39, United States Code, is repealed.

(b) The table of contents of chapter 7 of title 39, United States Code, is amended by deleting711. Method of determining gross receipts”.

Sec. 122. The first sentence of section 712 of the Federal Salary Reform Act of 1962 (76 Stat. 856) is amended by striking out “The basic compensation of

fee.".

each employee subject to the Postal Field Service Schedule II, Rural Carrier Schedule Ii, or Fourth Class Office Schedule II, as the case may be, on the effective date of such schedule shall be determined as follows:" and by inserting in lieu thereof, "Except as provided in subsection (d) of section 504 of this Act, the basic compensation of each employee subject to the Postal Field Service Schedule II, Rural Carrier Schedule II, or Fourth Class Office Schedule II, as the case may be, on the effective date of such schedule shall be determined as follows:",

SEC. 123. Sections 118 and 120 of this Act shall become effective on the first day of the first pay period beginning on or after January 1, 1964. Except as otherwise expressly provided in this part, all other provisions of this part shall become effective upon enactment.

PART C-EMPLOYEES IN THE DEPARTMENT OF MEDICINE AND SURGERY IN THE

VETERANS' ADMINISTRATION

SEC. 131. (a) The catch line and subsection (a) of section 4103 of title 38, United States Code, relating to the appointment and annual salaries of certain staff positions in the Department of Medicine and Surgery of the Veterans' Administration, is amended to read as follows: “4103, Office of the Chief Medical Director “(a) The Office of the Chief Medical Director shall consist of the following

“(1) The Chief Medical Director.
'(2) The Deputy Chief Medical Director.

'(3) Not to exceed five Assistant Chief Medical Directors, who shall be appointed by the Administrator upon the recommendation of the Chief Medical Director. One Assistant Chief Medical Director shall be a qualified doctor of dental surgery or dental medicine who shall be directly responsible to the Chief Medical Director for the operation of the Dental Service.

(4) Such Medical Directors as may be appointed by the Administrator, upon the recommendation of the Chief Medical Director, to suit the needs of the Department. A Medical Director shall be either a qualified doctor of medicine or a qualified doctor of dental surgery or dental medicine.

“(5) A Director of Nursing Service who shall be a qualified registered Nurse, appointed by the Administrator, and who shall be responsible to the Chief Medical Director for the operation of the Nursing Service.

“(6) A Chief Pharmacist and a Chief Dietitian, appointed by the Administrator.

(7) Such other personnel and employees as may be authorized by this chapter.". (b) Such section 4103 is further amended by deleting subsections (d) through (j) thereof and inserting in lieu thereof the following:

(d) Except as provided in subsection (f), any appointment under this section shall be for a period of four years, with reappointment permissible for successive like periods, except that persons so appointed or reappointed shall be subject to removal by the Administrator for cause.

“(e) Except as provided in subsections (b), (c), and (f), during their period of service in the positions designated the salary for those personnel authorized by this section shall be that set forth in section 4107 of this title.

“(f) The Administrator may designate a member of the Chaplain Service of the Veterans' Administration as Director, Chaplain Service, for a period of two years, subject to removal by the Administrator for cause. During the period that any such member serves as Director, Chaplain Service, he shall be paid a salary, as determined by the Administrator, within the minimum and maximum salary limitations prescribed for grade GS-15 positions by the Classification Act of 1949, as amended. Redesignation under this subsection may be made for successive like periods. An individual designated as Director, Chaplain Service, shall at the end of his period of service as Director revert to the position, grade, and status which he held immediately prior to being designated Director, Chaplain Service, and all service as Director, Chaplain Service, shall be creditable as service in the former position".

(c) The table of contents of chapter 73, title 38, United States Code, is amended by striking out "4103. Appointments and compensation.” and inserting in lieu thereof : "4103. Office of the Chief Medical Director.".

SEC. 132. Section 4107 of title 38, United States Code, relating to grades and pay scales for certain positions within the Department of Medicine and Surgery of the Veterans' Administration, is amended to read as follows: “4107. Grades and pay scales

“(a) The per annum full-pay scale or ranges for positions provided in section 4103 of this title, other than Chief Medical Director and Deputy Chief Medical Director, shall be as follows:

"SECTION 4103 SCHEDULE

"Assistant Chief Medical Director, $25,500.
"Medical Director, $22,445 minimum to $25,445 maximum.
"Director of Nursing Service, $17,160 minimum to $22,290 maximum.
"Chief Pharmacist, $17,160 to $22,290 maximum.
“Chief Dietitian, $17,160 minimum to $22,290 maximum.

“ (b) (1) The grades and per annum full-pay ranges for positions provided in paragraph (1) of section 4104 of this title shall be as follows:

"PHYSICIAN AND DENTIST SCHEDULE

“Director grade, $19,735 minimum to $24,975 maximum.
"Executive grade, $18,405 minimum to $23,940 maximum.
“Chief grade, $17,160 minimum to $22,290 maximum.
“Senior grade, $14,770 minimum to $19,180 maximum.
"Intermediate grade, $12,575 minimum to $16,355 maximum.
"Full grade, $10,600 minimum to $13,795 maximum.
“Associate grade, $8,850 minimum to $11,505 maximum.

"NURSE SCHEDULE

“Assistant Director grade, $14,770 minimum to $19,180 maximum.
“Chief grade, $12,575 minimum to $16,355 maximum.
“Senior grade, $10,600 minimum to $13,795 maximum.
"Intermediate grade, $8,850 minimum to $11,505 maximum.
“Full grade, $7,310 minimum to $9,515 maximum.
"Associate grade, $6,315 minimum to $8,205 maximum.
"Junior grade, $5,400 minimum to $7,020 maximum.

“(2) No person may hold the director grade unless he is serving as a director of a hospital, domiciliary, center or outpatient clinic (independent). No person may hold the executive grade unless he holds the position of chief of staff at a hospital, center, or outpatient clinic (independent), or the position of clinic director at an outpatient clinic, or comparable position.".

PART D-EMPLOYEES SUBJECT TO THE FOREIGN SERVICE ACT

FOREIGN SERVICE OFFICERS

SEC. 141. 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:

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