1.  General Schedule (GS) employee

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

2003 GS basic rate

2003 locality rate

$40,255

$44,128

($40,255 x 1.0962)

2004 GS basic rate

2004 locality rate

$41,342

$45,848

(after 2.7% across-the-board increase)

($41,342 x 1.1090)

2. GS employee promoted on same day the 2004 pay adjustments take effect

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

Step 1: Apply the across-the-board pay adjustment to the GS-11, step 5, rate.

2003 GS basic rate

2003 locality rate

$48,708

$53,394

($48,708 x 1.0962)

2004 GS basic rate

2004 locality rate

$50,020

$55,472

(after 2.7% across-the-board increase)

($50,020 x 1.1090)

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

2004 GS basic rate

2004 locality rate

$54,662

$60,620

(GS-12, step 2, is the lowest GS-12 step rate that equals or exceeds the GS-11, step 7, rate of $52,962)

($54,662 x 1.1090)

3. GM employee

(See examples 7a and 7b for GM employees at GS-13 on the IT special salary rate schedule.)

Grade/step: GM-13, step 00, $74,272 (not on step)
Location: Washington, DC, locality pay area

Reference:  5 CFR 531.205(a)(2)

Step 1: Subtract the GS-13, step 1, rate of basic pay from the employee's GM rate in 2003.  (Use the 2003 rates of basic pay.)

2003 GM rate

2003 GS basic rate 

Difference

$74,272

$61,251

$13,021

(employee's GM basic rate)

(GS-13, step 1)

($74,272 - $61,251)

Step 2: Subtract the GS-13, step 1, rate of basic pay from the GS-13, step 10, rate of basic pay.  (Use the 2003 rates of basic pay.)

2003 GS basic rate

2003 GS basic rate

Difference

$79,629

$61,251

$18,378

(GS-13, step 10)

(GS-13, step 1)

($79,629 - $61,251)

Step 3: Divide the result of step 1 by the result of step 2.  Carry the results to the seventh decimal place and truncate.

$13,021 / $18,378 = 0.7085101

Step 4: Subtract the GS-13, step 1, rate of basic pay from the GS-13, step 10, rate of basic pay.  (Use the 2004 rates of basic pay.) 

2004 GS basic rate

2004 GS basic rate

Difference

$81,778

$62,905

$18,873

(GS-13, step 10)

(GS-13, step 1)

($81,778 - $62,905)

Step 5: Multiply the result in step 3 by the result in step 4.

0.7085101 x $18,873 = $13,371.711

Step 6: Add the result in step 5 to the GS-13, step 1, rate of basic pay (2004) and round to the next whole dollar.

$13,371.711 + $62,905 = $76,277

2004 GM basic rate

2004 GM locality rate

$76,277

$87,436

(after applying 2.7% increase by following the above steps under 5 CFR 531.205(a)(2))

($76,277 x 1.1463)

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

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

2003 retained rate

2003 locality rate
(No special rate)

$58,275

$63,881

($58,275 x 1.0962)

2004 retained rate

2004 locality rate

$59,026

$65,460

($58,275 plus $751, where $751 is one-half of the dollar increase in the GS-11, step 10, rate from 2003 to 2004; ($57,375 - $55,873) / 2 = $751)

($59,026 x 1.1090)

6. Special rate employee where special rate exceeds locality rate

Grade/step: GS-3, step 1
Location: Washington, DC
Special Rate Schedule:  Table 0029 (DC Clerical)

2003 GS basic rate

2003 locality rate

2003 special rate

$18,664

$21,042

$22,396

($18,664 x 1.1274)

2004 GS basic rate

2004 locality rate

2004 special rate

$19,168

$21,972

$23,002

(after 2.7% across-the-board increase)

($19,168 x 1.1463)

(after 2.7% increase is applied to the 2003 special rate schedule)

7a. GM employee at grade GS-13 on the IT special rate schedule

Basic Rate for GS-2210-13, step 00 (not on step): $77,891 (December 2003)
Location: Washington-Baltimore, DC-MD-VA-WV
2003 Locality Rate: $87,814 ($77,891 x 1.1274)

IT Special Rate Schedule:  Table 999C 

IT Special Rate:  $81,785

Reference: 5 CFR 530.306(a)(3), 530.307(c), and 531.205(a)(2)

Step 1: Subtract the GS-13, step 1, special rate from the employee's IT special rate in 2003.  (Use the 2003 IT special rate table, 999C.)

2003 GM IT special rate

2003 IT special rate

Difference

$81,785

$64,314

$17,471

(employee's GM special rate)

(GS-13, step 1)

($81,785 - $64,314)

Step 2: Subtract the GS-13, step 1, special rate from the GS-13, step 10, special rate.  (Use the 2003 IT special rate table, 999C.) 

2003 IT special rate

2003 IT special rate

Difference

$83,610

$64,314

$19,296

(GS-13, step 10)

(GS-13, step 1)

($83,610 - $64,314)

Step 3: Divide the result of step 1 by the result of step 2.  Carry the result to the seventh decimal place and truncate.

$17,471 / $19,296 = 0.9054208

Step 4: Subtract the GS-13, step 1, rate from the GS-13, step 10, rate.  (Use the 2004 IT special rate table, 999C.)

2004 IT special rate

2004 IT special rate

Difference

$85,867

$66,050

$19,817

(GS-13, step 10)

(GS-13, step 1)

($85,867 - $66,050)

Step 5: Multiply the result in step 3 by the results in step 4.

 0.9054208 x $19,817 = $17,942.723

Step 6: Add the result of step 5 to the GS-13, step 1, IT special rate from the 2004 Table 999C and round to the next whole dollar.

$17,942.723 + $66,050 = $83,993

The employee's GM IT special rate in 2004 is $83,993.

7b. GM employee at grade GS-13 on the IT special rate schedule

Basic Rate for GS-2210-13, step 00 (not on step): $77,891 (December 2003)
Location: Washington-Baltimore, DC-MD-VA-WV
IT Special Salary Rate: Table 999C

NOTE:  First compute the employee's 2004 GM unadjusted rate of basic pay following the steps in 5 CFR 531.205(a)(2).  (See steps 1-6.)  (Use unadjusted rates of basic pay.  Do not use the special rates of pay.)  Then apply the applicable locality payment.  (See step 7.)

Step 1: Subtract the GS-13, step 1, GS basic rate in 2003 from employee's the rate of basic pay in 2003.  (Use the 2003 GS basic schedule.)

2003 GM basic rate

2003 GS-13 basic rate

Difference

$77,891

$61,251

$16,640

(employee's GM basic rate)

(GS-13, step 1)

($77,891 - $61,251)

Step 2: Subtract the GS-13, step 1, GS basic rate in 2003 from the GS-13, step 10, GS basic rate in 2003.  (Use the 2003 GS basic schedule.)

2003 GS-13 basic rate

2003 GS-13 basic rate

Difference

$79,629

$61,251

$18,378

(GS-13, step 10)

(GS-13, step 1)

($79,629 - $61,251)

Step 3: Divide the result of step 1 by the result of step 2.  Carry the result to the seventh decimal place and truncate. 

$16,640 /  $18,378 = 0.9054304

Step 4: Subtract the GS-13, step 1, rate in 2004 from the GS-13, step 10, rate in 2004.  (Use the 2004 GS basic schedule.) 

2004 GS-13 basic rate

2004 GS-13 basic rate

Difference

$81,778

$62,905

$18,873

(GS-13, step 10)

(GS-13, step 1)

($81,778 - $62,905)

Step 5: Multiply the result in step 3 by the result in step 4.

0.9054304 x $18,873 = $17,088.187

Step 6: Add the result of step 5 to the GS-13, step 1, GS basic rate in 2004 and round to the next whole dollar.

$17,088.187 + $62,905 = $79,994 [Note that $79,994 exceeds the employee's former GM basic rate of $77,891 by approximately 2.7%, which is the amount of the GS across-the-board increase in January 2004.]

Step 7: Multiply the result of step 6 by the DC locality rate in 2004.

2004 GM basic rate

2004 GM locality rate

$79,994

$91,697

(2004 GM basic rate, determined in step 6)

($79,994 x 1.1463 )

The employee's locality rate in 2004 is $91,697.  The employee's IT special rate ($83,993) 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 $83,993 is approximately 5 percent above the GM basic rate of $79,994.) 

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 the lowest GS-13 rate that is equal to or greater than the GS-12 rate that is two steps above the employee's current GS-12 rate of pay.

2004 IT special rate

2004 IT special rate

$68,944

$72,999

(GS-12, step 5, Table 999C)

(GS-12, step 7, Table 999C)

Step 2: Find the lowest GS-13 IT special rate that equals or exceeds the GS-12, step 7, IT special rate.

$72,999 falls between step 4 and step 5. The employee's rate of pay is set at GS-13, step 5, on the IT special rate schedule = $74,858.

Step 3: Compare the GS-13, step 5, 2004 IT special rate of pay to the GS-13, step 5, 2004 locality rate of pay.

$74,858 (2004 IT special rate) < $81,723 (2004 locality rate)

Step 4: The employee is paid the GS-13, step 5, locality rate of pay because the locality rate of pay is higher than the 2004 IT special rate of pay.  The GS-13, step 5, IT special salary rate is an underlying rate of basic pay used for certain pay administration purposes.

Grade: GS-12, step 10
Location: Washington-Baltimore, DC-MD-VA-WV
IT Special Salary Rate: Table 999C

2004 DC locality rate

2004 IT special rate

$78,826

$79,081

(GS-12, step 10)

(GS-12, step 10)

An employee is entitled to the lowest GS-13 rate that is equal to or greater than the GS-12 rate that is two steps above the employee's 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.

$79,081 (GS-12, step 10) - $77,053 (GS-12, step 9) = $2,028

Step 2: Multiply the difference by 2 because an employee is entitled to a two-step increase.

$2,028 x 2 = $4,056

Step 3: Add the increase to the employee's current rate of pay (GS-12, step 10, IT special rate).

$79,081 + $4,056 = $83,137

Step 4: Find the lowest GS-13 IT special rate that equals or exceeds the rate from step 3.

$83,137 falls between step 8 and step 9.  The employee's rate of pay is set at a GS-13, step 9, on the IT special rate (Table 999C) = $83,665.

Step 5: Compare the GS-13, step 9, IT special rate of pay to the GS-13, step 9, locality rate of pay for the Washington-Baltimore locality pay area.

$83,665 (2004 IT special rate) < $91,338 (2004 locality rate)

Step 6: The employee is paid the GS-13, step 9, locality rate of pay because the locality rate is higher than the 2004 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.