APPENDIX J:
EXAMPLE CALCULATIONS
J-1 Prorated Lump Sum Buyout of WGI
J-2 Special Rate: Conversion in Process
J-3 Special Rate Exceeds Locality Rate
J-4 Locality Rate Exceeds Special Rate
J-5 Conversion Out: Salary Equals or Exceeds Step 4 of Highest Grade
J-6 Conversion Out: Salary Does Not Equal or Exceed Step 4 of Highest Grde
J-7 Conversion Out: Exception to Step 4 Rule
Prorated Lump Sum Buyout of WGI
J-1
- Lump sum payment for portion of time accrued toward next step increase
time in step Payment = x step increase $ time between steps
- Within-grade increases are discontinued under demonstration
Upon conversion, but no earlier than the one year anniversary of the implementation date of the demonstration project, employees will receive a lump sum payment commensurate with the number of weeks accrued toward the next higher step prior to the effective date of conversion of the project. Employees at step 10 or those receiving retained rates on the date of conversion will not be eligible for the payment since they are already at the top step of their grade. The formula for calculating the payment is - the accrued time in step divided by the waiting period between steps - multiplied by the dollar value of the step increase. In the example, as of 1 April 1998, the employee had accrued 52 weeks of the 104 weeks required for the next scheduled within-grade increase. Effective on or about 1 April 1999 this employee would receive a lump sum payment of $752.
Special Rate:
Conversion In Process
J-2
Current Total Salary (Adjusted Basic Pay) New Base Rate = 1 + Locality Pay Factor New Demo Total Salary = New Base Rate + Locality Pay New Demo Total Salary = Current Total Salary
A new base salary for employees receiving special rates must be determined since there will be no special salary rate employees for the duration of the demonstration project. Those employees will now be eligible for full locality pay. Employees who have a special salary rate that is less than the adjusted pay for their locality area (upon conversion) will receive the higher rate. Base pay and locality adjustment will be determined from the appropriate General Schedule. Pay will be expressed and tracked in terms of adjusted base pay which is the sum of "base pay" and "locality adjustment."
The process outlined above shows the computation of the new base rate and new salary under the demonstration, and their relationship to current total salary (adjusted basic pay).
Examples on the next two pages further illustrate the conversion in process.
Special Rate Exceeds
Locality Rate
J-3
Conversion In Example Current Total Salary $58,506 (Special rate table, no locality pay) GS Pay Rate $53,343 (with 7.27% locality rate) Full Locality Pay 7.27% New Base Pay Rate = Current Total Salary divided by 1 plus locality pay factor $58,506/1.0727 $54,541 Locality Adjustment $54,541 x 0.0727 $ 3,965 New Demo Total Salary = new base rate ($54,541 plus full locality pay ($3,965) $58,506 New Demo Total Salary ($58,506) = Current Total Salary
Example:
A GS-12, step 5 Pharmacist at Ft. Detrick, has an annual salary of $58,506 prior to conversion into demonstration project based on the Pharmacist special salary rate table. For this grade and step, the 1998 General Schedule for the Washington-Baltimore, DC-MD-VA-WV has a pay rate of $53,343, which includes the 7.27% locality adjustment. In this example, the employee's new base pay rate will be $54,541 per annum and the full locality adjustment will be $3,965 for a total salary of $58,506.
Locality Rate Exceeds
Special Rate
J-4
Conversion In Example Current Total Salary $47,066 (Special rate table plus partial locality from GS pay table) Special Rate Table (No locality) $45,339 Full Locality Pay 7.27% New Base Pay Rate = Current Total Salary divided by 1 plus locality pay factor $47,066/1.0727 $43,876 Locality Adjustment $43,876 x 0.0727 $ 3,190 New Demo Total Salary = New Base Rate ($43,876) plus full locality pay ($3,190) $47,066 New Demo Total Salary ($47,066) = Current Total Salary
Example:
A GS-12, step 1 Engineer at Ft. Detrick has an annual salary of $47,066 prior to conversion into the demonstration project based on the Engineer Special Salary Table and partial locality pay from the 1998 General Schedule for the Washington-Baltimore, DC-MD-VA-WV. In this example, the employee's new base pay rate will be $43,876 per annum and the full locality adjustment will be $3,190 for a total salary of $47,066.
Conversion Out:
Salary Equals or Exceeds
Step 4 of Highest Grade
J-5
- Demonstration project adjusted base pay equals $53,000
- DB II pay band includes GS-5 through GS-12
$53,000 $21,421 $61,190 Min Max
- Conversion Process:
1) Compare $53,000 to step 4 pay of highest grade in payband; GS-12, step 4 pay = $51,774
2) $53,000 ³ $51,774
3) Assign GS-12
4) $53,000 is between GS-12, step 4 pay ($51,774) and step 5 pay ($53,343)
5) Assign the greater of the two, step 5
In the example, the DB II employee's adjusted base pay rate under the demonstration ($53,000) is compared to step 4, GS-12 which is the highest grade in the payband. GS-12, step 4 pay equals $51,774. Since the employee's salary is between the step 4 and 5 the higher step is awarded. Therefore, this employee converts out of the demonstration project as a GS-12, step 5.
Conversion Out:
Salary Does Not Equal or Exceed
Step 4 of Highest Grade
J-6
- Demonstration project adjusted base pay equals $43,000
- DB II pay band includes GS-5 through GS-12
$43,000 $21,421 $61,190 Min Max
- Conversion Process:
1) Compare $43,000 to step 4 pay of highest grade in payband beginning with GS-12 descending each lower grade until step 4 rate is equivalent or exceeded
2) $43,000 ³ $39,318 (GS-10, step 4)
3) Assign GS-10
4) $43,000 is between GS-10, step 7 pay ($42,893) and step 8 pay ($44,085)
5) Assign the greater of the two, step 8
In the example, the DB II employee's adjusted base pay rate under the demonstration ($43,000) is compared to the step 4 pay of successively lower grades until the two are equivalent or the base pay rate exceeds the step 4 rate. This point is reached at the GS-10 level ($39,318). Since the employee's salary is between step 7 and 8, the higher step is awarded. Therefore, this employee converts out of the demonstration project as a GS-10, step 8.
Conversion Out:
Exception to Step 4 Rule
J-7
- Demonstration project adjusted base pay equals $51,200
- DB II pay band includes GS-5 through GS-12
$51,200 $21,421 $61,190 Min Max
- Conversion Process:
1) Compare $51,200 to step 4 pay of highest grade in payband beginning with GS-12 and descending each lower grade until step 4 rate is equivalent or exceeded
2) $51,200 ³ $43,197 (GS-11, step 4)
3) Normally assign GS-11, but GS-11 step 10 pay ($51,049) is less than $51,200, which fits the step 4 exception rule
4) Since $51,200 > $47,066 (GS-12 step 1 pay), assign GS-12
5) $51,200 is between step 3 and 4, assign the greater of the two, step 4
Exception to Step 4 rule: If an employee's adjusted demonstration project rate exceeds the maximum rate of the grade assigned under the previously described "Step 4" rule but fits in the rate range for the next higher applicable grade (i.e., between step 1 and step 4), then the employee shall be converted to that next higher applicable grade.
Example:
In this example, the DB II employee's salary of $51,200 is compared to step 4 pay of the highest grade in the payband. GS-12, step 4 pay equals $51,774. Since $51,200 is less than $51,774, the employee is assigned a GS-11. But, GS-11, step 10 pay equals $51,049 and $51,200 is greater than this amount. Therefore, the employee is assigned a GS-12. Next, since $51,200 is between GS-12, step 3 pay of $50,205 and step 4 pay of $51,774, assign GS-12, step 4.
