same, and not dependent (as they are now) upon the geographic or organizational location of the position.

In this respect the bill applies a general plan based on delegating authority to the departments with respect to both the departmental and field services. The similar existing plan of Executive Order No. 9512 is improved in three important particulars:

1. (Sections 501 and 503). On its own motion, or in a case initiated by the Commission or at the request of a department or an employee, on preaudit or post audit. the Commission shall have power to certify corrections of classifications, which certifications shall be binding on the agency. They would, of course, be enforceable with the aid of the General Accounting Office.

2. (Section 504). Whenever justified by the results of the Commission's post audits, the Commission may revoke or suspend, in whole or in part, the power of a department or agency to classify positions without prior approval of the Commission. In such cases the Commission would require prior approval until such time as the agency takes necessary corrective steps, after which the Commission may restore the agency's authority.

3. The plan of administration set forth in title V applies to the departmental and field services alike.

Section 501.-This section gives the Commission full authority to find facts and take action in placing positions in proper classes and grades, initially or on review. This authority is not required to be exercised on a regular day-to-day basis, but may be exercised at any time in the Commission's discretion, on its own motion, or at the request of an employee or a department. It carries with it the authority necessary to require corrections when the Commission finds they are needed.

This is existing law in the departmental service, but is new legislation for the field service.

Section 502. This section sets forth the ordinary day-by-day authority and procedure. Following the standards provided for in title IV, the department concerned is required to place its positions in proper classes and grades. The department's actions will be official for pay and personnel purposes. They may, however, be changed by certificate of the Commission, as provided in section 503. The Commission is required to review a sufficient number of these actions of the departments to determine the degree to which such actions are being taken in conformity with the Commission's standards.

Section 503.-This section provides the Commission with authority to require corrections of erroneous actions. When the Commission finds that positions are not placed in proper classes and grades, it is directed to certify the correct class and grade to the department. The department is required to take action in accordance with such certificate, which is to be binding on all administrative, certifying, pay-roll, disbursing, and accounting officers.

Section 504.-This section authorizes the Commission to revoke or suspend in whole or in part the authority of a department to place positions in classes and grades without prior approval of the Commission, whenever the Commission finds that the department is not following the Commission's standards. After such revocation or suspension, the Commission may restore such authority to the extent that corrective measures taken by the department satisfy the Commission that subsequent actions will be in accordance with standards.

Section 505.-The general plan of operations specified in title V is limited by this section, which provides that positions may be placed in grade 16, 17, or 18 of the general schedule only by action of, or after prior approval by, the Commission, and in grade 19 only by the President.

Section 506.-This section specifies certain incidental powers the Commission should have to discharge effectively the reviewing task specified in section 502 (b). The Commission is authorized to prescribe the form of records of the duties and responsibilities of positions, and the places where such records shall be maintained; to examine these or other pertinent records; and to interview officers and employees.

TITLE VI-BASIC COMPENSATION SCHEDULES

This title revises the structure and the rates of the pay schedules of the Classification Act.

Section 601.-This section provides for two schedules: (1) A general schedule and (2) a crafts, protective, and custodial schedule.

The present structure of the Classification Act pay schedules is built upon five "services," called professional and scientific; subprofessional; clerical, administrative, and fiscal; crafts, protective, and custodial; and clerical-me

chanical.

the bill.

The last-named service, as previously indicated, is eliminated from

The general schedule of the bill takes the place of the professional and scientific schedule, the subprofessional schedule, and the clerical, administrative, and fiscal schedule of existing law. The crafts, protective, and custodial schedule of the bill takes the place of the corresponding schedule in existing law.

This change is in the direction of simplifying the administration of the act. At present the law requires that positions must be placed in services as well as in classes and grades. Unnecessary complications have thus been introduced. In the classification of each position, official decision is now required on three points, whereas all of the purposes of pay and personnel administration should be served when formal decision is made on two points only-class and grade.

Any proper purpose which service groupings were originally designed to accomplish can be served better through the editorial arrangement of classes of positions into occupational groups in connection with the publication of standards by the Commission. Such standards can be used to identify occupations with less confusion than now exists and without detracting from the recognition due established professions and sciences. Distinctions in the identity of specialized professional, scientific, technical or other types of work could be clearly delineated in such standards without the confusion incident to the existing necessity of making those distinctions on a five-service basis.

Section 602.-This section divides each of the schedules into grades of difficulty and responsibility of work. The general schedule has 19 grades and the crafts, protective, and custodial schedule has 10 grades. Fifteen grades of the general schedule replace 31 grades of existing law. The number of grades in the crafts, protective, and custodial schedule is the same as in existing law.

Generally speaking, the new grades parallel the old ones, except that the general schedule has four new grades at the top: GS-16, GS-17, GS-18, and GS-19. Apart from the question of the pay rates for these grades, their establishment would permit a better differentiation among the responsibilities of top executive, professional, and scientific positions than present law permits.

When the existing services and grades of the Classification Act of 1923 were constructed, the organization of the Government and its constituent departments and agencies was much simpler than it is today.

The development of organizations accompanying the acceptance of new or expanded Federal programs has, within many departments and agencies, created more subdivisions of activities, a greater distribution of functions and responsibilities, and more intermediate levels of authority and administration at the very top of the Government's organization structure. It has been apparent for some time that in many large organizations there are in fact more distinct levels of responsibility than are recognized by the number of top grades in the Classification Act; the number of grades at the top of the schedules is too small.

In short, there are now not quite enough top grades to permit distinctive recognition, for pay and recruiting purposes, of the differences in duties, responsibilities, and qualification requirements of top management and professional positions.

In some instances, this condition has been recognized by Congress through the enactment of special measures applicable only to a few or a limited group of positions. This approach, of a piecemeal nature, is not the best method of dealing with the problem.

The bill furnishes a general solution by establishing four new grades at the top of the GS schedule.

Although the proposed schedule frequently merges into one grade, two or three parallel grades of existing law, there is only one instance in which it merges into one grade, two consecutive grades of the same service: SP-1 and SP-2 are both combined with CAF-1 to form new GS-1

SP-1 (as of July 1, 1948) has but 359 positions, as contrasted to 13,218 in SP-2 and 5,423 in CAF-1. Most of these positions are in the Agricultural Research Administration or other bureaus of the Department of Agriculture and involve the washing and cleaning of laboratory glassware and equipment and similar manual tasks, and sometimes minor laboratory techniques. Most of this work may appropriately be classified in grade 2 of the crafts, protective, and custodial schedule, or, if minor technical laboratory work is also included, such as feeding and caring for laboratory animals, in GS-1. The Veterans' Administration has 21 such positions in hospital pharmacies and laboratories. Another sizable block (87) consists of minor civil engineering survey aides, such as axmen, rodmen, or chain men in the Engineer Corps, Department of the Army.

The grade definitions have been completely revised. Compared to the grade definitions of existing law, those of the bill show a more logical progression of difficulty and responsibility. They also indicate more clearly the general factors which are to be taken into consideration in placing positions in classes and grades. Also, in conformity with section 303, many phrases in the existing grade definitions, referring to the size of an organization unit supervised or the number of employees supervised, have been omitted from the proposed grade definitions.

Section 603.-This section sets forth the proposed pay scales by grades.

The general structure of these pay schedules follows that of existing law, with some exceptions. In the general schedule, each of the lower grades, 1 to 10, inclusive, has 7 rates; grades 11 to 14, inclusive, have 5 rates each: grades 15, 16, and 17 have 3 rates each; and grades 18 and 19 have a single flat rate each. In the crafts, protective, and custodial schedule, each of the proposed grades has 7 rates.

As in existing law, the pay scales of consecutive grades overlap in the lower part of the GS schedule and in the entire CPC schedule. In the higher part of the

GS schedule, beginning with grade 11, they do not overlap.

The "adult floor" of the schedules is $2,100 in the GS schedule and $2,020 in the CPC schedule, compared with $2,020 in the SP and CPC services and $2,086 in the CAF service of existing law. The "ceiling" of the schedules is $16,000 in the GS schedule, compared to $10,330 of existing law, and $4,900 in the CPC schedule, compared with $4,730.40 of existing law.

The proposed pay scales show that this bill is not a cost-of-living pay increase bill, but a reconstruction of the existing schedules.

The amounts by which individual rates are increased vary. Generally speaking, but with some exceptions, the increases in dollars grow larger from the bottom to the top of the schedules. In the grades from GS-1 to GS-8, the average increase varies from $10.55 to $95.60. In the grades from GS-9 to GS-14, the average increase varies from $119.63 to $230.68. The average increase in GS-15 is $482.11. The initial increase above existing rates, authorized for any present employee now subject to the Classification Act in grades GS-1 to GS-15 varies from $1.72 to $670. The higher grades would mean higher increases for employees whose positions later are placed in GS-16, 17, 18, or 19-as much as $5,670 if an employee now getting $10,330 is eventually placed by the President in GS-19, $16,000.

In the CPC schedule, the average increase in grades 1 to 6 varies from no increase to $91.19. In grades 7 to 10, it varies from $117.15 to $173.44. The change in existing rates, in the whole CPC schedule, varies from no increase to $174.40.

This, to some extent the proposed schedules favorably adjust the pay scales for the middle and upper brackets that were not proportionately affected by the pay-rate increases of the acts of 1945, 1946, and 1948.

Supplementing the GS schedule by four additional grades at the top, thus raising the ceiling of the Classification Act, is one of the most significant features of the bill.

Originally, in 1923, the ceiling of the Classification Act was $7,500. In 928, it was raised to $9,000, in 1945 to $9,800, in 1946 to $10,000, and in 1948 to $10,330. The increase from June 30, 1945 to the present time is 14.8 percent as contrasted with from 50 to 60 percent in the lower clerical brackets. The bill proposes a ceiling rate of $16,000, an increase of 77 percent over the $9,000 ceiling rate established in 1928 and in effect on June 30, 1945.

To accomplish this the bill changes the top structure of the schedule as follows:

The new grades GS-16, GS-17, GS-18, and GS-19 are not translations of any existing grade. They are not to be used automatically or in the discretion of a department or agency. As indicated in section 505, positions and employees may be placed in GS-16, GS-17, or GS-18 only by action of, or prior approval by, the Commission. Positions and employees may be placed in GS-19 only by action of the President.

This revision of existing law is intended also to correct a distortion of "squeeze" in the present schedules, due to two circumstances: (1) Over the years the lower rates have been increased proportionately more than the highest rates; and (2) there has been a fixed low ceiling overlying the whole Classification Act schedule. This point is illustrated in the following table, which shows the changes in the ratio of the ceiling rate to the adult floor rate of the Classification Act, 1924-48.

It will be observed that in 1294, when the Classification Act of 1923 became effective, the Government's policy was to pay its topmost career executives, scientists, and professional men under the Classification Act 8.3 times as much as a manual office laborer or an adult messenger. This ratio was increased to 8.8 in 1928, at a time when the Congress gave special attention to turnover in the higher brackets. Since that time, however, the ratio has steadily decreased, until in 1948 the Government's policy was to pay its topmost career executives, scientists, and professional men under the Classification Act only 5.1 times as much as a manual office laborer or an adult messenger.

This bill would change this ratio to 7.9, not quite restoring the former ratio of 8.8 which was in effect for the period 1928-42.

Section 604.-Subsection (a) of this section prescribes the method by which the existing grades are to be translated into corresponding new grades. The translation is to take place automatically, as prescribed by the bill. This is a desirable feature, aimed at smooth transition from the old to the new schedules.

Subsection (b) of section 604 specifies the rules by which existing rates are to be automatically adjusted to the new rates. The general principle is stated in paragraph (1): Employees are to retain the same relative place within the new grade range as they had within their former grade range. There are some instances, however, where the number of rates is not the same in both the old grade and the new grade, and there are other instances where following the relative position principle would result in salary cuts. Consequently, a special rule is required in the case of SP-2, CPC−1, 2 and 3, and P-8 and CAF-15. These special rules are given in paragraphs (2), (3), (4), and (5) of subsection (b).

A general over-all saving clause is provided in paragraph (6) of subsection (b). The intent is that no present employee's pay is to be reduced by reason of the transition from old to new schedules, so long as he remains in the same position and grade. When he vacates his position, any subsequent appointee to it would have his compensation fixed in accordance with the regular provisions of the act. Section 605.-This section guards against any increase provided by the bill being considered an equivalent increase for periodic step-increase purposes. "equivalent increase" stops the running of the current waiting period of 52 or 78 weeks and begins a new waiting period. This provision is the same as that used in the salary increase acts of 1945, 1946, and 1948.

TITLE VII-STEP INCREASES

An

Title VII of the proposed bill provides for three types of step increases: (1) Periodic step increases under section 701, (2) rewards for superior accomplishment under section 702, and (3) step increases beyond the scheduled maximum rate of the grade under section 703. The first two types of step increases are step increases within the grade and are already authorized by existing law. However, the third is entirely new for employees under the Classification Act.

Section 701.-This section makes changes in existing law. "Fifty-two calendar weeks" has been substituted for "twelve months" and "seventy-eight calendar weeks" has been substituted for "eighteen months" to conform with the computation of pay rolls on a biweekly basis instead of a semimonthly basis. This payroll change was made by the Federal Employees Pay Act of 1945.

91564-49-- 4

Paragraph (C) preserves the benefits of periodic step increases for employees whose continuous service is interrupted by service with the armed forces or by service in essential non-Government civilian employment during a period of war or national emergency. This, in more complicated form, is a provision of existing law. It has been generalized and rewritten for the sake of simplicity and clarity. Existing law respecting periodic increases requires on the part of the employee an efficiency rating of "good" or better, the term "good" referring to a rating level in efficiency rating systems established under section 9 of the Classification Act. This provision has been omitted from the bill. The requirement of a certificate of satisfactory service and conduct is continued.

Section 702.-This section authorizes an additional one-step increase as a reward for superior accomplishment. This is existing law except for minor changes in the language.

Section 703.-For grades GS-1 to GS-17, inclusive, and for all the grades of the CPC Schedule, this section sets up a plan for three longevity step increases beyond the maximum rate of the grade on the basis of the completion of each 3 years of continuous service at such maximum rate or at one of the higher rates authorized by the section. Under existing law there is no authority to pay employees under the Classification Act any rate above the maximum prescribed for the position to which they are assigned.

The great majority, about 91 percent of the employees under the Classification Act, occupy positions below CÂF-11 or P-4 (new grade GS-11). Normally, after 6 years of fully satisfactory service, an employee reaches the maximum rate of his grade. Depending on the nature of his work and the organization structure of his agency, there may be few opportunities for promotion to a higher grade. In such a case, there is little or no financial incentive provided by the Classification Act for him to remain in his position and continue to render constantly improved service. The policy underlying section 703 is to provide such an in

centive.

The conditions of eligibility for a step increase beyond the scheduled grade maximum are set forth in subsection (b).

A certificate of meritorious service and conduct is required. No 3-year period may be counted toward more than one longevity increase. The amount of each increase is the same as that of the highest within-grade step between two rates. Not more than three successive increases may be granted to an employee. The employee must have had an aggregate of at least 10 years of service in his present position or in equivalent or higher positions, which may include the 3 years required at the scheduled maximum rate of his grade.

The retention of such increases is made dependent upon the results of annual reviews of the employee's work. If his service is found to be no longer meritorious his salary would be reduced by the amount of the last longevity increase he received.

Subsection (c) spells out the rules for granting such step increases to an employee who, under section 604 (b) (6), section 905 (b), or other provision of law, is already receiving a rate in excess of the scheduled maximum rate of his grade when he becomes eligible for a step increase beyond such maximum.

Section 704.-Rewards for superior accomplishment and awards of step increases beyond the scheduled maximum rate of the employee's grade are made dependent upon prior approval of the Commission, or upon delegation of authority to the departments to make them under standards issued by the Commission. The exercise of such authority is to be subject to review by the Commission. If such review indicates failure to observe the standards issued by the Commission, the Commission may withdraw or suspend the department's delegated authority until such time as the general situation is corrected by the department.

This arrangement is already part of existing law with respect to rewards for superior accomplishment under section 702.

Section 705.-This section provides that service immediately preceding the effective date of title VII shall, if the employee meets all the other conditions of eligibility, be counted toward (1) one periodic step-increase and one additional step-increase as a reward for superior accomplishment or (2) step-increases beyond the scheduled maximum of the grade, as the case may be. The purpose of this section is to make sure that the usual rule against the retroactive effect of statutes will not deny any employee the benefits of service accrued up to the effective date of the bill, and still pending to his credit.

Section 706.-This section provides that title VII shall not apply to persons appointed by the President, by and with the advice and consent of the Senate. This provision, which is already in existing law for periodic increases and rewards for superior accomplishment, recognizes that such persons should not be subject