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Annual Advanced In Hire Rates - Superior Qualifications Appointments

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What Is It

When an employee receives his or her first appointment in the Federal service, pay is set at step 1 of the grade, unless a superior qualifications appointment has been approved. On subsequent position changes, such as reemployment, transfer, reassignment, promotion, demotion, or change in type of appointment, pay may be set at any step of the grade that does not exceed the employee's maximum payable rate. Maximum payable rate is an employee's best entitlement based on highest previous rate (HPR).

An employee may be paid under maximum payable rate rules at management's discretion provided the employee does not have a higher entitlement under statute, e.g., as a result of pay retention or the two-step promotion rule.

When a hiring official does choose to pay an employee under maximum payable rate rules, the official may select a step which is lower than the maximum step of the grade to which the employee would be entitled by virtue of his or her HPR. The determination to pay an employee under maximum payable rate rules and the selection of a step in the grade should be based on considerations such as a candidate's qualifications compared to those of fellow employees, recency of work experience (if the job has changed since the candidate last performed it), competition for the position, availability of funds, equity in consideration of all candidates, etc.

Highest Previous Rate

Highest previous rate (HPR) is the highest rate received on a regular tour of duty while serving on an appointment not limited to 90 days or less. If an employee has had a series of short appointments, HPR may be based on a continuous period of not less than 90 days under one or more appointments.

A rate earned as an intermittent employee or as an expert or consultant cannot be used as HPR, nor can a rate earned on a temporary promotion unless the individual served in the position for at least a year or was permanently promoted to the same or a higher grade. An HPR which is a special rate may only be used if management is reassigning an employee to a non-special rate position and an official designated by the head of the operating unit makes a written determination for the Official Personnel Folder that the employee will make a greater contribution to program in the position to which he or she is being reassigned.

HPR may be earned in any branch of the Federal government including government corporations. The position in which it was earned need not have been subject to the General Schedule.

The examples immediately following illustrate maximum payable rate determinations commonly made. The worksheets at the end of this Section simplify the procedures for determining maximum payable rate when it was earned against a pay schedule no longer in effect. The worksheets differ slightly depending on whether HPR was earned as a GS or PMRS employee. The rules for maximum payable rate found at Subpart B of Part 531 of 5 CFR have been repeated for convenience in using the worksheets.

Example 1

If an employee's HPR was earned currently, maximum payable rate in the target grade can be fixed by visual comparison of rates using the current schedule. Two examples follow.

"A" is being reinstated to a GS-12 position in 1994. HPR was earned earlier in 1994 in a GS-13/3 ($51,114) position. Management wants to provide maximum payable rate. What is "A"'s maximum payable rate?

GS 12

4

5

6

7

8

9

10

44,327

45,670

47,013

48,356

49,699

51,042

52,385

Using the GS-94 regular pay schedule, find $51,114 among the rates for GS-12. Since $51,114 falls between steps 9 and 10, A's maximum payable rate is the rate for GS-12/10. Management could choose to pay any rate between 12/1 and 12/10.

Example 2

"B" is being reinstated to a regular rate GS-9 position. HPR was earned in 1994 in a GS-11/2 ($38,107) special rate position. Can "B" use HPR which is a special rate? If so, what is "B"'s maximum payable rate?

HPR which is a special rate cannot be used except in one instance, i.e., reassignment for the good of the service. In every other instance, HPR must be taken from the regular GS pay schedule.

 

1

2

7

8

9

10

GS-9

   

33,345

34,271

35,197

36,123

GS-11

33,623

34,744

       

Since "B" is being reinstated, HPR must be taken from the regular GS schedule, part of which is shown above. The rate for GS-11/2 on the regular 94-GS schedule is $34,744. The step of GS-9 which meets or exceeds $34,744 is GS-9/9 ($35,197). This is "B"'s maximum payable rate.

Reference

5 C.F.R. 531.203

Maximum Payable Rate (MPR) Calculation for GS Employees

Compare the employee's highest previous rate (HPR)(expressed as an annual rate) with the rates of basic pay in effect at the time the HPR was earned for the grade in which pay is currently being fixed.

GRADE _______;

STEP________;

SALARY__________

Identify the lowest step of target grade equal to or greater than the employee's HPR the time the HPR was earned.

GRADE _______;

STEP________;

SALARY__________

Identify the current rate of basic pay for the step identified under 2 above. This is the maximum payable rate.

GRADE _______;

STEP________;

SALARY__________

Reference

5 C.F.R. 531.204

Maximum Payable Rate (MPR) Rule for Former PMRS Employees

Compare the employee's highest previous rate (HPR) (expressed as an annual rate) with the rates in effect at the time HPR was earned for the grade in which pay is currently being fixed. (If the employee's HPR was equal to or less than the minimum for the target grade, the employee may not be paid more than the minimum for the target grade. If the employee's HPR was equal to or greater than the maximum for the target grade, the employee may not be paid more than the maximum for the target grade.) If the employee's HPR was greater than the minimum rate but less than the maximum rate for the target grade, then proceed as follows:

Using the pay rates in effect for the target grade when HPR was earned:

  • Find the difference between the employee's HPR and the minimum rate for the grade;
  • Find the difference between the maximum and minimum rates of the same grade;
  • Divide (1) by (2); carry the result out to seven places and truncate, do not round, the number. This quotient is the employee's relative place in the rate range.

Using current pay tables, find the difference between the maximum and minimum rates for the target grade. Multiply the difference by the factor in (3) above.

Add the product of this multiplication to the minimum rate of the range for the target grade. Round up if cents are over 50 cents. This is the employee's maximum payable rate.

Reference

5 C.F.R. 531.204

Maximum Payable Rate (MPR) Calculation for Former PMRS Employees

GRADE at HPR: GM ___

SALARY $________; SCHED. EFF.DATE__________

1. HPR less MIN. RATE FOR FORMER SALARY RANGE = (A)
MAX. RATE OF FORMER SAL. RANGE less MIN. RATE

________

minus

________

=

________

=

( )

2. (A) X (TARGET GRADE MAX. less TARGET GRADE MIN.) = (B)

_________ X (_________ - ___________) = $ ________

3. (B) + TARGET GRADE MINIMUM = MAXIMUM PAYABLE RATE

_________ + _________= $ ____________

NOTE: If a pay cap was in place when the employee earned HPR, use uncapped rates for this exercise.

Reference

5 C.F.R. 531.204




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