Examples of 2001 Computations

Attachment 3 to Compensation Memorandum 2000-19

United States Office of Personnel Management

Examples of January 2001 Pay Computations

Below are examples showing how various categories of employees will be affected by the January 2001 pay adjustments. Annual rates are shown. The annual rate providing the highest entitlement (shown in bold font) is used to calculate the employees hourly rate in biweekly pay computations. An hourly rate is computed by dividing the annual rate by 2,087 and rounding the result to the nearest cent. (Note: Firefighters compensated under 5 U.S.C. 5545b are subject to special pay computation rules, including the use of an hourly rate computed using a 2,756-hour factor. See 5 CFR part 550, subpart M.)

1. General Schedule (GS) employee

Grade/step: GS-9, step 5
Location: "Rest of U.S." pay area

2000 GS basic rate

2000 locality rate

$36,696

$39,184

($36,696 x 1.0678)

2001 GS basic rate

2001 locality rate

$37,686

$40,580

(after 2.7% general increase)

($37,686 x 1.0768)

2. GS employee promoted on same day that 2001 pay adjustments take effect

Grade/step: GS-11, step 5, before promotion
Location: "Rest of U.S." pay area

Step 1: Apply the general pay adjustments to the GS-11, step 5, rate.

2000 GS basic rate

2000 locality rate

$44,402

$47,412

($44,402 x 1.0678)

2001 GS basic rate

2001 locality rate

$45,600

$49,102

(after 2.7% general increase)

($45,600 x 1.0768)

Step 2: Process the promotion to the GS-12 using the 2-step rule.

2001 GS basic rate

2001 locality rate

$49,830

$53,657

(GS-12, step 2, is the lowest GS-12 step rate that equals or exceeds the GS-11, step 7, rate of $48,282)

($49,830 x 1.0768)

3. GM employee

Grade/step: GM-13, step 00 (not on step)
Location: Washington, DC

2000 GM rate

2000 locality rate

$67,702

$73,829

($67,702 x 1.0905)

2001 GM rate

2001 locality rate

$69,536

$76,650

(after applying 2.7% increase as described at 5 CFR 531.205(a)(2))

($69,536 x 1.1023)

4. GS-11 employee receiving a retained rate of pay

Grade/step: GS-11, step 00 (above rate range)
Location: "Rest of U.S." pay area

2000 retained rate

2000 locality rate
(No special rate.)

$53,804

$57,452

($53,804 x 1.0678)

2001 retained rate

2001 locality rate

$54,491

$58,676

($53,804 plus $687, where $687 is one-half of the dollar increase in the GS-11, step 10, rate from 2000 to 2001; ($52,305 - $50,932) 2 = $687)

($54,491 x 1.0768)

5. Special rate employee where special rate exceeds locality rate

Grade/step: GS-4, step 1
Location: Washington, DC
Special Rate Schedule: Table 0029 (clerical employees)

2000 GS basic rate

2000 locality rate

2000 special rate

$19,100

$20,829

$21,648

($19,100 x 1.0905)

2001 GS basic rate

2001 locality rate

2001 special rate

$19,616

$21,623

$22,232

(after 2.7% general increase)

($19,616 x 1.1023)

(after 2.7% increase)

6. Special rate employee where locality rate exceeds special rate for first time in January 2001

Grade/step: GS-5, step 1
Location: Washington, DC
Special Rate Schedule: Table 0029 (clerical employees)

2000 GS basic rate

2000 locality rate

2000 special rate

$21,370

$23,304

$23,506

($21,370 x 1.0905)

2001 GS basic rate

2001 locality rate

2001 special rate

$21,947

$24,192

$24,143

(after 2.7% general increase)

($21,947 x 1.1023)

(after 2.7% increase)

7. Law enforcement officer (LEO)

Grade/step: GS-7, step 1
Location: Boston, MA

2000 LEO special rate

2000 LEO locality rate

2000 LEO GEO adj. rate

$29,998

$33,214

$34,798

($29,998 x 1.1072)

($29,998 x 1.16)

2001 LEO special rate

2001 LEO locality rate

2001 LEO GEO adj. rate

$30,809

$34,546

$35,738

(after 2.7% increase)

($30,809 x 1.1213)

($30,809 x 1.16)

8a. GM employee at grade GS-13 on the IT special rate schedule IT Special Rate Conversion Basic Rate for GS-334-13, step 00 (not on step): $71,000 (December 2000) Location: Washington-Baltimore, DC-MD-VA-WV IT Special Rate: Table 999C 2000 Locality Rate: $77,426 ($71,000 x 1.0905) Reference: 5 CFR 530.306(a)(3) and 531.205(a)(2)
Step 1: Subtract the GS-13, step 1, rate from the employees basic rate in 2000. (Use the 2000 GS basic schedule).
2000 GM basic rate 2000 GS basic rate Difference	$71,000 $55,837 $15,163	($71,000 - $55,837)
Step 2: Subtract the GS-13, step 1, rate from the GS-13, step 10, rate. (Use the 2000 GS basic schedule).
2000 GS basic rate 2000 GS basic rate Difference	$72,586 $55,837 $16,749	(GS-13, step 10) (GS-13, step 1) ($72,586 - $55,837)
Step 3: Divide the results of step 1 by the results of step 2. Carry the result to the seventh decimal place and truncate.
$15,163 $16,749 = 0.9053077
Step 4: Subtract the GS-13, step 1, rate from the GS-13, step 10, rate. (Use the 2001 IT special salary rate table, 999C).
2001 IT special rate 2001 IT special rate Difference	$78,281 $60,212 $18,069	(GS-13, step 10, Table 999C) (GS-13, step 1, Table 999C) ($78,281 - $60,212)
Step 5: Multiply the results in step 3 by the results in step 4.
0.9053077 x $18,069 = $16,358.00483
Step 6: Add the results of step 5 to the GS-13, step 1, IT special rate from Table 999C and round to the next whole dollar.
$16,358.00483 + $60,212 = $76,571
The employees GM IT special rate in 2001 is $76,571.

8b. GM employee at grade GS-13 on the IT special rate schedule Locality Rate Determination Basic Rate for GS-334-13: $71,000 (December 2000) [between steps 9 and 10] Location: Washington-Baltimore, DC-MD-VA-WV IT Special Salary Rate: Table 999C
Step 1: Subtract the GS-13, step 1, GS basic rate in 2000 from the employees rate of basic pay in 2000. (Use the 2000 GS basic schedule.)
2000 GM basic rate 2000 GS-13 basic rate Difference	$71,000 $55,837 $15,163	(GS-13, step 1) ($71,000 - $55,837)
Step 2: Subtract the GS-13, step 1, GS basic rate in 2000 from the GS-13, step 10, GS basic rate in 2000. (Use the 2000 GS basic schedule.)
2000 GS-13 basic rate 2000 GS-13 basic rate Difference	$72,586 $55,837 $16,749	(GS-13, step 10) (GS-13, step 1) ($72,586 - $55,837)
Step 3: Divide the results of step 1 by the results of step 2. Carry the result to the seventh decimal place and truncate.
$15,163 $16,749 = 0.9053077
Step 4: Subtract the GS-13, step 1, rate in 2001 from the GS-13, step 10, rate in 2001. (Use the 2001 GS basic schedule.)
2001 GS-13 basic rate 2001 GS-13 basic rate Difference	$74,553 $57,345 $17,208	(GS-13, step 10) (GS-13, step 1) ($74,553 - $57,345)
Step 5: Multiply the results in step 3 by the results in step 4.
0.9053077 x $17,208 = $15,578.5349
Step 6: Add the results of step 5 to the GS-13, step 1, GS basic rate in 2001 and round to the next whole dollar.
$15,578.5349 + $57,345 = $72,924 [Note that $72,924 exceeds the employee's former GM basic rate of $71,000 by approximately 2.7%, which was the amount of the GS across-the-board increase in January 2001.]
Step 7: Multiply the results of step 6 by the DC locality rate in 2001.
2001 GM basic rate 2001 GM locality rate	$72,924 $80,384	(2001 GM basic rate, determined in step 6) ($72,924 x 1.1023)
The employee's locality pay rate in 2001 is $80,384. The employee's IT special rate ($76,571) is the underlying rate of basic pay used for some pay administration purposes. (IT special rate table 999C provides a 5 percent special rate supplement at grade 13. Note that the employee's IT special rate of $76,571 is approximately 5 percent above the GM basic rate of $72,924.)

9. Promotion for IT special rate GS employee (with underlying GS-13 special rate) Grade/step: GS-12, step 5 Location: Washington-Baltimore, DC-MD-VA-WV IT Special Salary Rate: Table 999C
Step 1: An employee is entitled to a GS-13 rate that is equal to or greater then the GS-12 rate that is two steps above the employees current GS-12 rate of pay.
2001 IT rate 2001 IT rate	$62,849 $66,545	(GS-12, step 5, Table 999C) (GS-12, step 7, Table 999C)
Step 2: Place the new promoted rate of pay into the scheduled IT special rates at the GS-13 level.
$66,545 falls between step 4 and step 5. The employees rate of pay is set at a GS-13, step 5, on the IT special rate schedule = $68,243.
Step 3: Compare the GS-13, step 5, 2001 IT special rate of pay to the GS-13, step 5, 2001 locality rate of pay.
$68,243 (2001 IT rate) < $71,642 (2001 locality rate)
Step 4: An employees rate of pay is set at the GS-13, step 5, locality rate of pay because the locality rate of pay is higher than the IT special rate of pay for the area.

10. General Schedule (GS-334) employee on grade retention in December 2000 covered by the new IT special rate

Grade of position: GS-11
Retained grade/step: GS-13, step 5
Location: Washington-Baltimore, DC-MD-VA-WV
IT Special Rate: Table 999C

2000 GS basic rate

2000 locality rate

$63,281

$69,008

(GS-13, step 5)

2001 IT special rate

2001 locality rate

$68,243

$71,642

(GS-13, step 5, Table 999C)

(GS-13, step 5)

Step 1: Compare the 2001 locality rate of pay and the 2001 IT special rate of pay.

$71,642 (2001 locality rate) > $68,243 (2001 IT special rate)

Step 2: An employee receives the GS-13, step 5, locality rate because it is higher than the IT special rate for the area. The employee is not entitled to the IT special rate adjustment for GS-11 because he or she is retaining grade GS-13. (Note that the GS-13, step 5, IT special rate of $68,243 is still higher than the GS-11, step 10, IT special rate of $62,766.)

11. General Schedule (GS-334) employee on pay retention in December 2000 covered by the new IT special rate Retained rate: $65,000 Grade: GS-12 Location: Washington-Baltimore, DC-MD-VA-WV IT Special Rate: Table 999C Reference: 5 CFR 536.205(c) and (d)
Step 1: An employees retained rate of pay must be increased by 50% of the dollar increase in the GS-12, step 10, rate of basic pay.
GS-12, step 10 (IT special rate in 2001) - GS-12, step 10 (basic rate in 2000) $72,089 (IT special rate) - $61,040 (basic rate) = $11,049 $11,049 x 50% = $5,525 (rounded to the next higher dollar)
Step 2: Add the 50% increase to the employees retained rate of pay.
$65,000 + $5,525 = $70,525
Step 3: Compare the rate resulting from step 2 to the GS-12, step 10, IT special rate for 2001.
$70,525 < $72,089 (GS-12, step 10, 2001 IT special rate)
Step 4: Since the rate resulting from step 2 is less than the maximum rate of basic pay for the employees grade, the employees rate of basic pay is set at that maximum rate and pay retention ceases. (See 5 CFR 536.205(d).)
2001 IT special rate	$72,089	GS-12, step 10, Table 999C

12. General Schedule (GS-334) employee at GS-12, step 10, covered by the new IT special rate promoted to the GS-13 level Grade: GS-12, step 10 Location: Washington-Baltimore, DC-MD-VA-WV IT Special Salary Rate: Table 999C
2001 locality rate 2001 IT special rate	$69,099 $72,089	(GS-12, step 10) (GS-12, step 10)
An employee is entitled to a GS-13 rate that is equal to or greater than the GS-12 rate that is two steps above the employees current GS-12 rate.
Step 1: Subtract the GS-12, step 9, IT special rate from the GS-12, step 10, IT special rate. Note: Since there is no step 11 rate, the two-step increase must be derived using the difference between steps 9 and 10. This approach must be used whenever an IT special rate employee is at step 9 or 10 before promotion.
$72,089 (GS-12, step 10) - $70,241 (GS-12, step 9) = $1,848
Step 2: Multiply the difference by 2 because an employee is entitled to a two-step increase.
$1,848 x 2 = $3,696
Step 3: Add the increase to the employees current rate of pay (GS-12, step 10, IT special rate).
$72,089 + $3,696 = $75,785
Step 4: Place the rate resulting from step 3 into the scheduled IT special rates at the GS-13 level (Table 999C).
$75,785 falls between step 8 and step 9. The employees rate of pay is set at a GS-13, step 9, on the IT special rate (Table 999C) = $76,273.
Step 5: Compare the GS-13, step 9, IT special rate of pay to the GS-13, step 9, locality rate of pay.
$76,273 (2001 IT special rate) < $80,072 (2001 locality rate)
Step 6: An employees rate of pay is set at the GS-13, step 9, locality rate because the locality rate is higher than the 2001 IT special rate of pay. The GS-13, step 9, IT special rate is an underlying rate of basic pay used for certain pay administration purposes.

Page updated March, 2001