1. General Schedule (GS) employee.

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

2004 GS basic rate

2004 locality rate

$41,342

$45,848

($41,342 x 1.1090)

2005 GS basic rate

2005 locality rate

$42,374

(after 2.5% across-the-board increase)

($42,374 x 1.1172)

2. GS employee promoted on same day the 2005 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.

2004 GS basic rate

2004 locality rate

$50,020

($50,020 x 1.1090)

2005 GS basic rate

2005 locality rate

$51,271

$57,280

(after 2.5% across-the-board increase)

($51,271 x 1.1172)

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

2005 GS basic rate

2005 locality rate

$56,028

$62,594

(GS-12, step 2, is the lowest GS-12 step rate that equals or exceeds the GS-11, step 7, rate of $54,287)

($56,028 x 1.1172)

6. Special rate employee where special rate continues to exceed locality rate in January 2005.

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

2004 GS basic rate

2004 locality rate

2004 special rate

$19,168

$21,972

($19,168 x 1.1463)

2005 GS basic rate

2005 locality rate

2005 special rate

$19,647

$22,787

(after 2.5% across-the-board increase)

($19,647 x 1.1598)

(after 2.5% increase is applied to the 2004 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): $79,994 (December 2004)
Location: Washington, DC, locality pay area
2004 Locality Rate: $91,697 ($79,994 x 1.1463)

IT Special Rate Schedule: Table 999C

IT Special Rate: $83,993

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 2004. (Use the 2004 IT special rate table, 999C.)

2004 GM IT special rate

2004 IT special rate

Difference

$83,993

$66,050

$17,943

(employee's GM special rate)

(GS-13, step 1)

($83,993 - $66,050)

Step 2: Subtract the GS-13, step 1, special rate from the GS-13, step 10, special 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 3: Divide the result of step 1 by the result of step 2. Carry the result to the seventh decimal place and truncate.

$17,943 / $19,817 = 0.9054347

Step 4: Subtract the GS-13, step 1, rate from the GS-13, step 10, rate. (Use the 2005 IT special rate table, 999C.)

2005 IT special rate

2005 IT special rate

Difference

$88,010

$67,702

$20,308

(GS-13, step 10)

(GS-13, step 1)

($88,010 - $67,702)

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

0.9054347 x $20,308 = $18,387.567

Step 6: Add the result of step 5 to the GS-13, step 1, IT special rate from the 2005 Table 999C and round to the next whole dollar.

$18,387.567 + $67,702 = $86,090

The employee's GM IT special rate in 2005 is $86,090.

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

Basic Rate for GS-2210-13, step 00 (not on step): $79,994 (December 2004)
Location: Washington, DC, locality pay area
IT Special Salary Rate: Table 999C

NOTE: First compute the employee's 2005 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 2004 from the employee's rate of basic pay in 2004. (Use the 2004 GS basic schedule.)

2004 GM basic rate

2004 GS-13 basic rate

Difference

$79,994

$62,905

$17,089

(employee's GM basic rate)

(GS-13, step 1)

($79,994 - $62,905)

Step 2: Subtract the GS-13, step 1, GS basic rate in 2004 from the GS-13, step 10, GS basic 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 3: Divide the result of step 1 by the result of step 2. Carry the result to the seventh decimal place and truncate.

$17,089 / $18,873 = 0.9054734

Step 4: Subtract the GS-13, step 1, rate in 2005 from the GS-13, step 10, rate in 2005. (Use the 2005 GS basic schedule.)

2005 GS-13 basic rate

2005 GS-13 basic rate

Difference

$83,819

$64,478

$19,341

(GS-13, step 10)

(GS-13, step 1)

($83,819 - $64,478)

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

0.9054734 x $19,341 = $17,512.761

Step 6: Add the result of step 5 to the GS-13, step 1, GS basic rate in 2005 and round to the next whole dollar.

$17,512.761 + $64,478 = $81,991 [Note that $81,991 exceeds the employee's former GM basic rate of $79,994 by approximately 2.5%, which is the amount of the GS across-the-board increase in January 2005.]

Step 7: Multiply the result of step 6 by the DC locality rate in 2005.

2005 GM basic rate

2005 GM locality rate

$81,991

$95,093

(2005 GM basic rate, determined in step 6)

($81,991 x 1.1598 )

The employee's locality rate in 2005 is $95,093. The employee's IT special rate ($86,090) 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 $86,090 is approximately 5 percent above the GM basic rate of $81,991.)

Grade/step: GS-12, step 5
Location: Washington, DC, locality pay area
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.

2005 IT special rate

2005 IT special rate

$70,666

$74,822

(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.

$74,822 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 = $76,728.

Step 3: Compare the GS-13, step 5, 2005 IT special rate of pay to the GS-13, step 5, 2005 locality rate of pay.

$76,728 (2005 IT special rate) < $84,751 (2005locality 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 2005 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, DC, locality pay area
IT Special Salary Rate: Table 999C

2005 DC locality rate

2005 IT special rate

$81,747

$81,057

(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.

$81,057 (GS-12, step 10) - $78,979 (GS-12, step 9) = $2,078

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

$2,078 x 2 = $4,156

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

$81,057 + $4,156 = $85,213

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

$85,213 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) = $85,754.

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, DC, locality pay area.

$85,754 (2005 IT special rate) < $94,721 (2005 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 2005 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.