"(b) The compensation schedule for the General Schedule shall be as follows: (b) The first sentence of subsection (c) of such section 602 is amended by striking out the words "The rates of basic compensation of officers and employees to whom Compensation Schedule II of the General Schedule set forth in subsection (a) of this section applies shall be initially adjusted," and by inserting in lieu thereof, "Except as provided in subsection (d) of section 504 of this Act, the rates of basic compensation of officers and employees to whom the compensation schedule set forth in subsection (a) of this section applies shall be initially adjusted,". SEC. 102. Section 801 of the Classification Act of 1949, as amended (5 U.S.C. 1131), relating to new appointments, is amended to read as follows: "SEC. 801. All new appointments shall be made at the minimum rate of the appropriate grade, except that in accordance with regulations prescribed by the Commission which provide for such considerations as the candidate's existing salary, unusually high or unique qualifications, or a special need of the Government for his services, the head of any department may, under such regulations, appoint individuals to positions in grades 13 and above of the General Schedule at such rate or rates above the minimum rate of the appropriate grade as the Commission may authorize for this purpose.". PART B-POSTAL FIELD SERVICE EMPLOYEES SEC. 111. Section 1 of title 39, United States Code, is amended by striking the period at the end of the section and inserting in lieu thereof a semicolon, and by adding the following: "'revenue unit' means that amount of revenue of a post office from mail and special service transactions which is equal to the average sum of postal rates and fees received by the Department during the fiscal year for 1,000 pieces of originating mail and special service transactions determined in accordance with section 2331 of this title.". SEC. 112. Section 702 of title 39, United States Code, is amended to read as follows: "Sec. 702. Classes of Post Offices "(a) At the beginning of each fiscal year the Postmaster General shall divide post offices into four classes on the basis of the revenue units of each office for the second preceding fiscal year. He shall place in the first class those post offices having 950 or more revenue units. He shall place in the second class those post offices having 190 or more revenue units, but less than 950 revenue units. He shall place in the third class those post offices having 36 or more revenue units, but less than 190 revenue units. He shall place in the fourth class those post offices having less than 36 revenue units. "(b) The Postmaster General shall exclude from the revenue credited to a post office for the purposes of this section money received at that office for "(1) Setting meters for patrons beyond the area served by the office unless authorized by the Department; "(2) Stamps, stamped envelopes, and postal cards sold in large or unusual quantities to be used in mailing matter at other offices; and "(3) Stamps, stamped envelopes, and postal cards sold for mailing matter diverted from other offices and mailing of matter so diverted without stamps affixed. "(c) Whenever unusual conditions prevail at a post office of the fourth class, the Postmaster General may advance such office to the appropriate class based on his estimate of the number of revenue units which the office will have during the succeeding twelve months. Any office so advanced need not be relegated to a lower class before the end of the second complete fical year after the advancement. At that time, the office shall be assigned to the appropriate class in accordance with subsections (a) and (b) of this section.". SEC. 113. Section 704 of title 39, United States Code, is amended by deleting the words "of the first, second, or third class" appearing therein, and inserting in lieu thereof "other than one for which the postmaster furnishes quarters, equipment, and fixtures on an allowance basis". SEC. 114. Subsection (b) (1) of section 2102 of title 39, United States Code, is amended to read as follows: "(1) for post offices at which the postmaster does not furnish quarters on an allowance basis;". SEC. 115. (a) Section 3501 of title 39, United States Code, is amended by(1) Deleting from the first sentence of subsection (a) the following: "standard positions of postmasters in a fourth-class office and rural carrier" and inserting in lieu thereof "standard position of rural carrier”. (2) Inserting a new subsection (c) following subsection (b) as follows: "(c) At the beginning of the first pay period in each calendar year the Postmaster General shall determine and adjust the rankings of all positions for which the number of annual revenue units of a post office or its class is a relevant factor of the ranking, using the revenue units of the preceding fiscal year and the class in which the office will be placed at the beginning of the next fical year. The Postmaster General may also adjust rankings of such positions at other times of the year based upon substantial changes in service conditions.". (b) The following amendments are made to chapter 45 of title 39, United States Code: (1) In subsection (c) of section 3513 (A) Change the catch line to read "POST OFFICE CLERK (KP-4)”; and (B) Add the following new sentence to the end of paragraph (1): "This office has less than 190 revenue units annually.". (2) In subsection (e) of section 3516 (A) Change the catch line to read "POSTMASTER (KP-18)"; (B) Delete "third class” in the first sentence of paragraph (1); and (C) Delete "annual receipts of approximately $1,700" in the second sentence of paragraph (1) and insert in lieu thereof "approximately 40 revenue units annually". (3) In subsection (b) of section 3517 (A) Change the catch line to read "POSTMASTER (KP-20)" ; (B) Delete "third class" in the first sentence of paragraph (1); and (C) Delete "annual receipts of approximately $4,700" in the second sentence of paragraph (1) and insert in lieu thereof "approximately 110 revenue units annually". (4) In subsection (b) of section 3518 (A) Change the catch line to read “POSTMASTER (KP-22)”; (B) Delete "third class" in the first sentence of paragraph (1) ; and (C) Delete "annual receipts of approximately $6,000" in the second sentence of paragraph (1) and insert in lieu thereof "approximately 140 revenue units annually". (5) In subsection (b) of section 3519-- (A) Change the catch line to read "ASSISTANT POSTMASTER (KP-24)"; and (B) Delete "annual receipts of approximately $63,000" in the second sentence of paragraph (1) and insert in lieu thereof "approximately 1,490 revenue units annually". (6) In subsection (c) of section 3519— (A) Change the catch line to read "POSTMASTER (KP-25)"; (B) Delete "second class" in the first sentence of paragraph (1) ; and (C) Delete "annual receipts of approximately $16,000" in the second sentence of paragraph (1) and insert in lieu thereof "approximately 380 revenue units annually". (7) In subsection (b) of section 3520— (A) Change the catch line to read "POSTMASTER (KP-27)"; (C) Delete "annual receipts of approximately $63,000" in the second sentence of paragraph (1) and insert in lieu thereof "approximately 1,490 revenue units anually". (8) In subsection (b) of section 3521— (A) Change the catch line to read "POSTMASTER (KP-29)" ; (B) Delete "first class" appearing in the first sentence of paragraph (1); and (C) Delete "annual receipts of $129,000" in the second sentence of paragraph (1) and insert in lieu thereof "approximately 3,060 revenue units annually". (9) In subsection (b) of section 3522 (A) Change the catch line to read "POSTMASTER (KP-31)" ; (B) Delete "first class" in the first sentence of paragraph (1); and (C) Delete "annual receipts of $314,000" in the second sentence of paragraph (1) and insert in lieu thereof "approximately 7,450 revenue units annually". (10) In subsection (b) of section 3523– (A) Change the catch line to read "POSTMASTER (KP-33)"; (B) Delete "first class" appearing in the first sentence of paragraph (1); and (C) Delete the second sentence of paragraph (1) and insert in lieu thereof: "This office has approximately 110 employees, approximately 14,350 revenue units annually, 13 government-owned vehicle units, one classified station and 42 carrier routes within its jurisdiction.". (11) In subsection (b) of section 3524 (A) Change the catch line to read "ASSISTANT POSTMASTER (KP-35)"; and (B) Delete "annual receipts of $2,700,000" in the second sentence of paragraph (1) and insert in lieu thereof "approximately 64,000 revenue units annually". (12) In subsection (c) of section 3524— (A) Change the catch line to read "POSTMASTER (KP-36)"; (B) Delete "first class" in the first sentence of paragraph (1); and (C) Delete "annual receipts of $1,000,000" in the second sentence of paragraph (1) and insert in lieu thereof "approximately 23,700 revenue units annually". (13) In subsection (a) of section 3525— (A) Change the catch line to read "ASSISTANT POSTMASTER (KP-37)"; and (B) Delete "annual receipts of $8,460,000" in the second sentence of paragraph (1) and insert in lieu thereof “approximately 200,000 revenue units annually". (14) In subsection (b) of section 3525— (A) Change the catch line to read "POSTMASTER (KP-38)" ; (B) Delete "first class" in the first sentence of paragraph (1); and (C) Delete "annual receipts of $2,700,000" in the second sentence of paragraph (1) and insert in lieu thereof "approximately 64,000 revenue units annually". (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 revenue 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 revenue 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 revenue 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 (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 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 Fixed compensation per annum. Compensation per mile $2, 155 $2, 255 $2, 355 $2, 455 $2, 555 $2, 655 $2, 755 $2, 855 $2, 955 $3, 055 $3, 155 $3, 255 SEC. 118. (a) Section 3544 of title 39, United States Code, is amended to read "Section 3544. Compensation of Postmasters at Fourth-Class Offices "(a) The Postmaster General shall rank the position of postmasters of fourth- "(b) Persons who perform the duties of postmaster at a post office of the |