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Appointments shall be automatically by the provisions of the merit promotion converted to Canal Zone Career Appoint plan developed by the Commission for ments upon completion of the service the competitive civil service. requirement. A merit status shall be acquired upon completion of a satisfac
Subpart C—Conversion to Canal Zone tory probationary period.
Career or Career-Conditional Ap(f) An employee serving after Feb pointments ruary 7, 1968, in a merit system position
$ 253.71 Eligibility, under a temporary appointment pending establishment of a register (TAPER) is Incumbents of positions made subject entitled to have his employment con to Subpart B of this part by revocation of verted to a Canal Zone Career Appoint an exclusion in § 253.8, or by other action, ment and to acquire merit status when: may be retained in their positions. Each
(1) He completes a total of at least 3 retained incumbent without a personal years of service under a TAPER appoint merit or competitive status who is servment without a break in service of more ing in a continuing position under a than 30 calendar days;
nontemporary appointment will become (2) The agency (i) recommends to the eligible for conversion to a Canal Zone Board that his employment be converted career or career-conditional appointto a Canal Zone Career Appointment and ment provided : (ii) certifies that his work performance (a) He rendered 6 months satisfactory for the past 12 months has been satis service in the position immediately prior factory; and
to its inclusion under Subpart B of this (3) He meets the Board qualification part. Periods to be counted toward the requirements for the position and is 6-month period as an exception to the reotherwise eligible for career employment. quirement for actual service shall be de(31 F.R. 12388, Sept. 16, 1966, as amended at termined in accordance with the instruc33 F.R. 19820, Dec. 27, 1968]
tions applying to the competitive civil CROSS REFERENCE: Peace Corps Act referred
service as published in Chapter 315 of the to in paragraph (d) of this section, classifi
Federal Personnel Manual. cation to U.S.C., see cross reference under (b) He meets the applicable qualifica§ 253.44.
tion and suitability standards established
by the Board. § 253.46 Promotion, demotion, reassign
(c) His employing department submits ment, and transfer.
a timely recommendation which is ap(a) Appointing officers may, in their proved by the Board. discretion, promote, demote, reassign, or
$ 253.72 Procedure. transfer employees who are serving under Canal Zone career or career-condi The employing department shall rectional appointments, subject to the pro ommend to the Board that the appointvisions of this section and in accordance ment of an eligible employee be conwith the appropriate qualification stand verted. The recommendation shall be ards for the position established by the submitted not later than one year after Board. Such actions will be based solely the date that the position is brought on the merit of the employee and upon
within the coverage of Subpart B of this his qualifications and fitness to hold the
part. Upon approval by the Board, the. positions concerned, except that only
conversion is effective as of the date of United States citizens will be considered for assignment to "security positions.”
the employing department's recommenSuch actions for employees serving under
dation. Notice of the Board's decision temporary or term appointments will be
together with the reasons therefor shall subject to such regulations as the Board be given in writing to the department and may prescribe. In preparing such regu employee concerned and be made a part lations the Board will be guided by the of the employee's official personnel instructions published for the competi folder. tive civil service in the Federal Personnel Manual.
$ 253.73 Tenure, (b) Employing departments shall es
(a) Preservation of tenure. Neither a tablish a promotion plan for all employ conversion action, nor a recommendaees, which is consistent with policies es tion for conversion, shall serve to reduce tablished by the Board. In establishing an employee's retention standing for such policies the Board will be guided reduction-in-force purposes.
(b) Tenure following recommendation. been converted to a temporary appointUpon submission of a recommendation ment under $ 253.43 and may be retained for conversion, the nominee's retention until expiration of their current appointstanding for reduction-in-force is in Re ments. tention Group I if he is already in that group or if he meets the service require Subpart D—Compensation and ment for a Canal Zone Career appoint
Allowances ment; otherwise his retention standing CROSS REFERENCE: For Civil Service Reguis in Tenure Group II.
lations referred to in this subpart, see 5 CFR, (1) An employee reverts to his previous Chapter I. Subchapter B. tenure group if the recommendation
GENERAL PROVISIONS is returned without final action, and remains in this group until such time as
§ 253.101 Uniformity of job classifica
tion standards. the recommendation is resubmitted.
(2) Irrespective of his previous reten In order to apply the provisions of tion standing, an employee is placed in 2 C.Z.C. 145, 76A Stat. 17, concerning Tenure Group III if the Board dis uniform application of rates of basic approves the recommendation for con compensation, job classification standversion.
ards shall be uniform within and among (c) Tenure following conversion. Con all departments. Any problems arising version will be to Canal Zone Career in achieving such uniformity which canappointment if the employee meets the not be resolved among the departments service requirement for such appoint shall be referred to the Board for resolument; otherwise, conversion will be to tion. If resolution is not achieved they Canal Zone Career-Conditional appoint shall then be forwarded to the Secretary ment. However, retention standing for of the Army or decision. reduction-in-force purposes will be gov
§ 253.102 Uniformity of compensation. erned by paragraph (a) of this section. All conversions will be subject to satis The rates of basic compensation for factory completion of a one-year proba
positions and employees, the overseas tionary period if such probation has not
(tropical) differential and the tax allowbeen completed prior to the time of con ance, authorized by 2 C.Z.C. 144, 146, version.
76A Stat. 17, shall be uniform within and
among all departments. Any problems § 253.74 Acquisition of merit status.
arising in achieving such uniformity An employee who is converted under shall be referred to the Board for resoluthis subpart acquires a merit status upon tion. If resolution is not achieved they completion of any required probationary shall then be forwarded to the Secretary period.
of the Army for decision. § 253.75 Employees not recommended
CATEGORIES OF POSITIONS for conversion.
§ 253.111 Use of categories. (a) Employees who are not recommended for conversion, or whose conver
Positions in the departments shall be sion is disapproved, will be retained in
grouped into the categories set forth in status quo and placed in Tenure Group
$ $ 253.112 to 253.114. III until separated or until they receive a $ 253.112 Non-manual category. competitive appointment.
Those occupational groupings which (b) Employees retained in status quo
embrace administrative, clerical, technimay be noncompetitively changed to
cal, professional, and related occupations. other positions upon meeting the re
This includes positions covered by the quirements established pursuant to
Classification Act of 1949, as amended, $ 253.46(a) for the noncompetitive move
5 U.S.C. 1071-1153 (1964 ed.), on Febment of employees serving under tem
ruary 22, 1959, except for those which porary appointments.
are specifically covered in the Special (c) Employees retained in status quo
Category. are subject to displacement by eligibles
(31 F.R. 12388, Sept. 16, 1966, as amended at on registers.
32 F.R. 4281, Mar. 18, 1967) (d) Employees serving under temporary appointments on the date their posi
Manual category. tions are made subject to Subpart B of Those manual-type occupational this part will be considered as having groupings generally covered by the Co
ordinated Federal Wage System which embrace unskilled, semiskilled, and skilled trades, crafts, and related occupations except for those which are specifically included in the special category. (35 F.R. 10521, June 29, 1970] & 253.114 Special category.
Those occupational groupings which are excepted from the Non-Manual and Manual categories, and whose bases generally have been traditionally or by statute evaluated, classified, and titled by reference to applicable Government or industry standards for the same or similar work.
PAY RATES AND ALLOWANCES $ 253.131 Derivation of base rates of
pay. (a) Rates of pay for positions in the special category below the skill or grade level for which employees must be recruited from the continental United States, for positions at the level of grade 3 or below in the nonmanual category and for positions at level 9 or below in the manual category shall be established in relation to rates outside the continental United States.
(b) Except as otherwise provided by this section, rates of pay for positions above the levels covered by paragraph (a) of this section and rates for all security positions shall be established in relation to rates for the same or similar work performed in the continental United States by employees of the Government of the United States. The U.S. rates used for this purpose shall be reduced by the amount of tax allowance prescribed by $ 253.134.
(c) Rates of pay for pilots employed in the navigation of vessels in Canal Zone water shall be established in relation to grade levels 12 to 14 inclusive of the Non-Manual Schedule as the Panama Canal Company may determine.
(d) The rates established under this section constitute the base salary or wage rates for the positions in question. (35 F.R. 3232, Feb. 20, 1970, and 35 F.R. 10521, June 27, 1970) $ 253.132 Non-United States citizen em
ployees. The rates of pay for non-United States citizen employees shall be the base salary or wage rates.
$ 253.133 United States citizen
ployees. The rates of pay for United States citizen employees shall be the base salary or wage rates plus the allowance and differential prescribed by $ $ 253.134 and 253.135. The aggregate pay thus derived shall be considered basic compensation. § 253.134 Tax allowance.
A tax allowance is authorized in an amount equivalent to the excess of the income tax which the typical U.S. citizen employee normally would expect to pay to the U.S. Government on his salary including the tropical differential over the amount of income tax the typical Panamanian citizen employee would normally pay to the Panamanian Government on the same salary without the tropical differential. The computation of the tax for U.S. citizens shall be based on the joint return for a family of four using the current standard deduction. The Panamanian tax shall be computed on the basis of the “family” tax, disregarding the “bachelor" tax and by applying the deductions authorized for two minors. The amount of the tax allowance shall be recomputed as necessary to conform with any changes in the tax laws of either the Republic of Panama or the United States. The revised tax allowance and the revised base salary or wage rate directly attributable to the revised tax allowance shall be made effective at a date to be determined by the Board, except that it shall not be earlier than the date of the tax change nor later than 6 months thereafter. [35 F.R. 19664, Dec. 29, 1970] § 253.135 Tropical differential.
(a) An overseas, tropical differential for U.S. citizen employees who qualify under the provisions of paragraph (b) of this section shall be fixed by the head of each department in an amount equal to 15 percent of the aggregate compensation established under $8 253.131 and 253.134. Such differential shall be reviewed periodically by the Secretary of the Army and adjusted to the extent necessary to furnish a suitable incentive in recruitment of qualified personnel and to provide pay benefits substantially equal to those accorded U.S. citizens employed by the Federal Government in comparable foreign areas.
(b) The tropical differential shall be paid to employees who are U.S. citizens
except as provided in the following subparagraphs:
(1) When a U.S. citizen employee is married to another U.S. citizen employee, the differential may be paid to one spouse only.
(2) When a U.S. citizen employee is married to a person not employed by a department such employee is eligible to receive the differential only if such employee is the member of the family whose job may reasonably be deemed to be the job which determines the location of the family in the area. The spouse of a person serving in the U.S. military forces in the area shall not be deemed to be a person whose job determines such location.
(3) A child or stepchild of a resident of the Canal Zone or the Republic of Panama who is under 21 years of age and unmarried is not eligible.
(c) Notwithstanding the provisions of paragraphs (a) or (b) of this section, each U.S. citizen employee in service on October 11, 1964, shall retain as a fixed tropical differential an amount equal to 25 percent of the aggregate compensation established under $ $ 253.133 and 253.134 for the grade and pay step to which he was assigned on July 20, 1964, or if employed after that date, for the grade and pay step to which he would have been assigned had he been employed on July 20, 1964. Calculation of the fixed differential shall be made without reference to any retroactive pay increases authorized subsequent to July 20, 1964. If the employee's aggregate compensation is reduced after July 20, 1964, by reason of demotion or otherwise, his fixed differential shall be adjusted to the rate which he would have retained had he been assigned the lower grade or pay step on July 20, 1964. The retained rate of tropical differential shall continue to be paid only until one of the following events occurs:
(1) There is a break in service of one day or more;
(2) A 2-year period has elapsed since October 11, 1964, and the employee is at that time, or thereafter becomes, ineligible to receive the differential under the conditions prescribed by paragraph (b) of this section; or
(3) The employee becomes eligible for the same or a greater amount of differential under paragraphs (a) and (b) of this section. When the fixed differential is discontinued under this subparagraph
due to payment of compensation under $ 253.155 for an additional pay assignment, it shall be reinstated upon termi. nation of such assignment.
(d) An employee may be paid tropical differential under this section only to the extent that such payment, when combined with his aggregate compensation established under $ $ 253.133 and 253.134, does not exceed the current rate of step 5, GS-17, of the General Schedule set out in 5 U.S.C. 5332(a). (31 F.R. 12388, Sept. 16, 1966, as amended at 32 F.R. 4281, Mar. 18, 1967; 35 F.R. 19751, Dec. 30, 1970)
PAY ADJUSTMENTS § 253.151 Conversion to new schedules.
Upon conversion to the salary and wage schedules established under the regulations in this part, each employee's rate of pay shall be determined in accordance with the following:
(a) If the employee's existing rate is below the minimum rate established for the grade, pay level, and/or designation of his position on the appropriate new schedule he will have his rate increased to the minimum rate.
(b) If the employee's existing pay rate is the same as one of the rates for the grade, pay level, and/or designation of his position on the appropriate new schedule he will have no change made in his rate.
(c) If the employee's existing rate is between two step-rates for the grade, pay level and/or designation of his position on the appropriate new schedule he will have his rate adjusted to the higher of the two step-rates.
(d) If the employee's existing rate is above the maximum rate established for the grade, pay level, and/or designation of his position on the appropriate new schedule, he will retain his existing rate as a saved rate, so long as he remains in the same position as that in which he was serving at the time of initial conversion, or until subsequent change is effected to another position unless the change is made without an increase in pay to a position of equal or higher level, or until he becomes entitled to a higher rate under the normal operation of the pay system to which he has been changed. If the subsequent change is made to a position of equal or higher level and if application of the normal pay fixing rule would result in a decrease in pay, the employee's saved rate will be preserved.
(e) For the purpose of determining entitlement to within-grade increases, service prior to conversion to the new pay schedules will be counted in the following manner:
(1) If upon conversion the employee receives an increase equivalent to the difference between two steps on the old schedule, service prior to conversion will not be counted toward an additional step and will be forfeited.
(2) If upon conversion the employee does not receive an increase equivalent to the difference between two steps on the old schedule, service without an equivalent increase prior to conversion will be counted toward the next step. Any service in excess of the requirement for the step is forfeited.
(3) If conversion is to a step, other than one established on a temporary basis, and the employee does not receive an increase equivalent to the difference between two steps on the old schedule, service prior to conversion will be counted. In no case may the time credit granted herein exceed the time-in-step requirement for the step. $ 253.152 General pay adjustments.
For positions for which the basic rate of compensation has been established in relation to rates for the same or similar work in the continental United States, rates of pay shall be adjusted by heads of departments with reference to changes in the corresponding rates in the United States. For all other positions, rates of pay shall be adjusted under administrative policies jointly determined by the heads of departments concerned. $ 253.153 Step increases.
(a) Non-manual category. Employees in positions in this category shall be advanced to higher rates within the grade of their positions in accordance with 5 CFR, Part 531, Subpart D.
(b) Manual category. Employees in positions in this category shall be advanced successively to the next higher step in their pay level in accordance with regulations issued by the Board.
(c) Special category. Employees in positions in this category shall be advanced successively to the next higher step within their grade in accordance with regulations to be prescribed by the Panama Canal Company-Canal Zone Government, except that in cases where other departments have employees in
positions in this category the regulations will be developed jointly by the departments concerned. & 253.154 Individual
pay determinations. Pay determinations in connection with personnel actions such as promotions, demotions, and transfers, shall be made in accordance with regulations generally in effect for employees in the Federal Service as follows:
(a) Non-manual category. Salary changes and retention for employees in positions in this category shall be governed by Subparts B and E of 5 CFR Part 531.
(b) Manual category. Wage determinations for employees of positions in this category shall be made in accordance with the following:
(1) General provisions. When changes are made between pay levels within this category, scheduled rates shall be used.
(2) Highest previous rate. The “highest previous rate” shall be determined in accordance with 5 CFR 531.202(h) and 531.203(d).
(3) Salary retention. 5 CFR Part 531, Subpart E. shall be applied to all employees occupying positions in this category.
(4) New appointments, Normally, all new appointments will be made at the first step for the position as fixed by the appropriate schedule of wage rates. Exception may be made in setting the rate at a higher step only if the needs of the service, in the opinion of the appointing officer, clearly justify such action and the training, experience, skills and knowledge of the appointee are sufficient to warrant the exception. In such cases, the justification for the action and the attendant circumstances should be included in the recommendation for the person's appointment.
(5) Re-employment. One of the following will apply in setting the rate of pay:
(i) The employee may be given step 1.
(ii) The employee may be given any step which does not exceed his “highest previous rate."
(6) Transfers. One of the following will apply in setting the rate of pay, subject to the pay savings provisions of $ 253.156 or 5 CFR Part 531, Subpart E.
(i) The employee may be given step 1 (ii) The employee may be given any