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Assure employees of at least a two step salary increase on promotion.

A provision in H.R. 1010, passed by House of Representatives August 22, 1961.

TITLE III. -REFORM OF POSTAL FIELD SERVICE SALARIES

Title III prescribes three postal field service salary schedules, effective in January 1963, January 1964, and January 1965, respectively. Appendix 2 includes an analysis of the three schedules and a copy of each.

Private enterprise levels were extended to postal field service salaries by linking salaries of

PFS-20 with GS-17.

PFS-11 with GS-11.

PFS-4 with GS-5: Equating PFS-4 with a grade as high as GS-5 based not on job evaluation but on considerations of unique character of postal occupations at this level, absence of opportunities for promotion, and full career served at this level by many clerks and carriers.

Fourth rates of the three Classification Act grades were adopted as the fourth rates of the corresponding PFS levels. Salaries for other levels were established by applying uniform differentials between successive levels from PFS-1 through PFS-10 and another set of uniform differentials from PFS-11 through PFS-20.

Salary ranges proposed for postal levels follow the proposed Classification Act pattern but are wider at the lower postal levels where, because of the nature of the postal service, many employees spend their entire careers in a single level. Twelve within-grade increases, spread over 27 years and amounting to a 40-percent rate range, would be established for PFS-1 through PFS-6. The new, widened ranges would embrace the former longevity increases as well as the former scheduled rates.

New provisions on pay administration would

Authorize merit increases in recognition of extra competence. Permit appointments at salaries above minimums of PFS levels for individuals with extra qualifications.

Guarantee employees at least a two-step salary increase on promotion (three steps if promoted three or more grades). Postal salary increases under the total three-phase program would: Be greater at the higher than the lower levels (especially in 1964 and 1965). For example, minimum rate of PFS-1 would rise 8.5 percent, PFS-20 would rise 26.5 percent.

Average 7.9 percent (in first phase, 3.5 percent).

Although the average increase for the Postal Service as a whole is lower than for the Classification Act, nevertheless at the most heavily populated (377,000) postal level, PFS-4, the average increase (7.5 percent) would be greater than at the corresponding Classification Act grade GS-5 (6.6 percent).

TITLE IV.—REFORM OF SALARIES OF VETERANS' ADMINISTRATION,

MEDICINE AND SURGERY

This title prescribes three sets of salaries for positions of directive staff, physicians, dentists, and nurses in the Department of Medicine and Surgery of the Veterans' Administration, effective in January 1963, January 1964, and January 1965, respectively.

Private enterprise levels were extended to these salaries by linking salaries of

Chief medical director with GS-20.

Physician, director grade with GS-16.
Physician, associate grade with GS-11.
Director, nursing service with GS-15.
Nurse, junior grade with GS-6.

As at present, salary ranges for intermediate medicine and surgery grades would generally follow the Classification Act pattern.

TITLE V. -REFORM OF FOREIGN SERVICE SALARIES

This title contains three sets of schedules for Foreign Service officers and staff, effective in January 1963, January 1964, and January 1965, respectively.

Private enterprise levels were extended to Foreign Service salaries by linking

Career ambassador with GS-20.

FSO-4 with GS-13.
FSO-8 with GS-7.

FSS-10 with GS-4.

Intervals between salaries at successive levels would follow regularized patterns. The FSS schedule would adopt the Classification Act 30-percent-rate range pattern. Twenty-percent ranges would fit Foreign Service officer career patterns, because of the promotion system and other factors.

As in other statutory systems, and for the same reasons, salary increases would be greatest at the higher levels.

TITLE VI.-REPEAL OF SPECIFIC STATUTORY SALARIES

Title VI would repeal provisions in the Federal Executive Pay Act or other statutes fixing specific salaries for a number of bureau heads and other positions. The positions concerned would thus be returned to the Classification Act or other appropriate system. Most positions returned to the Classification Act would go into new grades GS-19 and GS-20.

This action would be based on the policy that

Positions of department secretaries, deputies, and assistants; of agency heads and deputies; and of chairmen and members of commissions and boards are appropriate for inclusion under an Executive Pay Act.

Other positions, including bureau heads, should be paid under career-type salary systems.

TITLE VII. SALARIES OF CERTAIN SCIENTIFIC AND PROFESSIONAL

FOSITIONS

This title would increase and automatically relate to the Classification Act the salary ranges for specified numbers of positions, mostly scientific or professional, now provided in Public Law 313 and similar statutes. Current ranges are generally $12,500 to $19,000.

New provisions would establish a range from the minimum salary of grade GS-16 to the top salary of Grade GS-18 for these positions. The ranges would become

January 1963: $16,400 to $20,315.
January 1964: $17,970 to $22,740.
January 1965: $19,125 to $24,500.

Thirty positions in NASA which may now be paid up to $21,000 could be paid up to $24,500 beginning in January 1963.

Any additional increases in GS-16 to GS-18 Classification Act salary levels would automatically extend to the groups of positions covered by title VII.

IV. CONCLUSION

The proposal which has been outlined would

Establish a "governor" policy or standard which objectively controls the level of Federal salaries and automatically sets adjustments in motion when needed.

Move systematically toward placing Federal statutory salaries at levels comparable with salary levels in private enterprise. Establish equitable relationships among Federal salary systems. Permit better use of pay rates for recruitment and motivation.

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Analysis of 3-phase salary reform plan for Classification Act (based on Bureau of Labor Statistics data, 1961)

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1 Rates increased to provide minimum increases of $40, $80, and $120 by January 1963, 1964, and 1965.

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Average increase $167,

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