convenience, law enforcement, or similar purposes, organizational or other titles may be used.

The provisions of this section cover the standards-setting authority the Commission already has in the departmental service by statute, and in the field service by Executive order.

TITLE V-AUTHORITY AND PROCEDURE

Section 501: This section gives the Commission full authority to find facts and take action in placing positions in proper classes and grades, initially or on review. However, the Commission is not required to use such authority on a regular day-to-day basis, but it may do so at any time in its discretion, on its own motion, or at the request of an employee or a department, as in the case of an appeal or a request for reconsideration. The section includes the authority necessary to require corrections when the Commission finds they are needed.

This is existing law in the departmental service, but is new legislation for the field service.

Section 502: This section sets forth the ordinary day-by-day authority and procedure. Following the standards provided for in title IV, the department concerned is required to place its positions in proper classes and grades. The department's actions will be official for pay and personnel purposes, without prior approval of the Commission, except as indicated in sections 504 and 505. They may, however, be changed by certificate of the Commission, as provided in section 503.

The Commission is required to review a sufficient number of these actions of each department to determine the degree to which such actions are being taken in conformity with the Commission's standards.

Section 503: This section provides the Commission with authority to require corrections of erroneous actions. When the Commission finds that positions are not placed in proper classes and grades, it is directed to certify the correct class and grade to the department. The department is required to take action in accordance with such certificate, which is to be binding on all administrative, certifying, pay-roll, disbursing, and accounting officers. This is new law for the field service.

Section 504: This section authorizes the Commission to revoke or suspend in whole or in part the authority of a department to place positions in classes and grades without prior approval of the Commission, whenever the Commission finds that the department is not following the Commission's standards. After such revocation or suspension, the Commission may restore such authority to the extent that corrective measures taken by the department satisfy the Commission that subsequent actions will be in accordance with standards. Section 505: The general plan of operations specified in title V is limited by this section, which provides (a) that positions may be placed in grade 16 or 17 of the general schedule only by action of, or after prior approval by, the Civil Service Commission, and (b) that positions may be placed in or removed from grade 18 (the highest grade) of the general schedule only by the President upon recommendation of the Commission.

Section 506: This section specifies certain incidental powers the Commission should have to discharge effectively the reviewing task specified in section 502 (b). The Commission is authorized to prescribe the form of records of the duties and responsibilities of positions, and the places where such records shall be maintained; to examine these or other pertinent records; and to interview officers and employees.

TITLE VIBASIC COMPENSATION SCHEDULES

Section 601: This section provides for two basic compensation schedules: (1) A general schedule, in lieu of the professional and scientific service, the clerical, administrative, and fiscal service, and the subprofessional service of the Classification Act of 1923, as amended; and (2) a crafts, protective, and custodial schedule, in lieu of the crafts, protective, and custodial service of the Classification Act.

Section 602: This section divides the general schedule into 18 grades of difficulty and responsibility of work and the crafts, protective, and custodial schedule into 10 grades. Each grade is generally defined in terms of level of difficulty and responsibility of work and qualifications required to do work of that level. This method of legislative control over the content of each grade is used in existing law; however, the definitions are considerably improved over those in the present Classfication Act.

Section 603: This section sets forth new compensation schedules for the general schedule, the crafts, protective, and custodial schedule, and the annual, full-time rates for part-time charwomen ($2,400) and head charwomen ($2,540).

Section 604: Subsection (a) of this section prescribes the method by which the existing grades of the Classification Act of 1923, as amended, are to be translated into corresponding new grades. The translation is to take place automatically, as prescribed by the bill. This provision is designed for smooth transition from the old to the new schedules. No existing grade is automatically translated into GS-16, 17, or 18 (see sec. 505).

Subsection (b) of this section specifies the rules by which existing pay rates are to be automatically adjusted to the new rates. The general principle is that employees are to retain the same relative place within the new grade range as they had within their former grade range. This principle, however, cannot be followed where the number of rates is not the same in both the old grade and the new grade, or where inequities or irregularities would result. Hence, some special transition rules are provided. These are given in paragraphs (2) to (11).

Paragraph (10) of subsection (b) is a general over-all saving clause. The intent is that no present employee's pay is to be reduced by reason of the transition from old to new schedules, so long as he remains in the same position and grade. When he vacates his position, any subsequent appointee to it would have his compsensation fixed in accordance with the regular provisions of the act.

Section 605: This section guards against any increase provided by title VI being considered an equivalent increase for periodic stepincrease purposes. An equivalent increase stops the running of the current waiting period of 52 or 78 weeks and begins a new waiting

period. This provision is customary; it was used in the salary increase acts of 1945, 1946, and 1948.

TITLE VII-STEP INCREASES

Title VII of the proposed bill provides for three types of step increases: (1) Periodic step increases under section 701, (2) rewards for superior accomplishment under section 702, and (3) step increases beyond the scheduled maximum rate of the grade under section 703. The first two types of step increases are step increases within the grade and are already authorized by existing law. However, the third is entirely new for employees under the Classification Act.

Section 701: This section makes changes in the language of existing law. "Fifty-two calendar weeks" has been substituted for "twelve months" and "seventy-eight calendar weeks" has been substituted for "eighteen months." This change conforms to the computation of pay rolls on a biweekly basis instead of a semimonthly basis. This pay-roll change was made by the Federal Employees Pay Act of 1945. Paragraph (D) preserves the benefits of periodic step increases for employees whose continuous service is interrupted by service with the armed forces or by service in essential non-Government civilian employment during a period of war or national emergency. This, in more complicated form, is a provision of existing law. It has been generalized and rewritten for the sake of simplicity and clarity.

Section 702: This section authorizes an additional one-step increase as a reward for superior accomplishment. This is existing law except for minor changes in the language.

Section 703: This section provides a general plan for rewards for long, faithful, and satisfactory service, consisting of not to exceed three successive step increases, one every 3 years, beyond the scheduled maximum rate of an employee's grade, where the employee meets certain conditions of length and quality of service.

The provisions of the section apply to the first 10 grades only of the general schedule and to the 10 grades of the crafts, protective and custodial schedule.

For each such step increase the employee must have completed 3 years of continuous service at the maximum scheduled rate or at a rate in excess thereof, authorized by the section. He must have an efficiency rating of "good" or better. His current service and conduct must be certified by his department as being satisfactory. He shall have had in the aggregate at least 10 years of service in his present, or an equivalent, position. No period of 3 years shall count toward more than one such increase and not more than three successive increases may be awarded.

Subsection (c) states the rules for granting such step increases to an employee who, under section 604 (b) (10), section 1005 (b), or other provision of law, is already receiving a rate in excess of the scheduled maximum rate of his grade when he becomes eligible for a step increase beyond such maximum.

Section 704: This section provides that service immediately preceding the effective date of title VII shall, if the employee meets all the other conditions of eligibility, be counted toward (1) one periodic step increase and one additional step increase as a reward for superior accomplishment, or (2) step increases beyond the scheduled maximum

of the grade, as the case may be. The purpose of this section is to make sure that the usual rule against the retroactive effect of statutes will not deny any employee the benefits of service accured up to the effective date of the bill, and still pending to his credit.

Section 705: This section provides that title VII shall not apply to persons appointed by the President, by and with the advice and consent of the Senate. This provision, which is already in existing law for periodic increases and rewards for superior accomplishment, recognizes that such persons should not be subject to the usual restrictions on step increases. Their appointments are frequently of limited duration, usually being more or less dependent upon changes in political administration. Usually it cannot be expected that such noncareer officials will serve the necessary period to receive full advantage of the step-increase plans. Hence, heads of departments should be left free to increase their compensation within their grades without regard to the time or other limitations of this title.

TITLE VIII-GENERAL COMPENSATION RULES

Section 801: This section provides that all new appointments shall be made at the minimum rate of the appropriate grade or class. This is existing law.

Section 802: Subsection (a) of this section authorizes the Commission to issue regulations governing the rate of basic compensation which an employee may be paid on transfer, promotion, demotion, reinstatement, reemployment, or other personnel change. At the present time these rates are determined by the departments and agencies partly by reference to regulations of the Commission and partly by reference to decisions of the Comptroller General, as they are issued from time to time as answers to questions in specific cases presented by the departments and agencies.

This new provision of law would permit the Commission to prepare a comprehensive, unified set of rules. Such rules, of course, would still be subject to decisions of the Comptroller General as to their legality and conformance with the other provisions of the bill.

Subsection (b) of section 802 provides that any officer or employee who is promoted or transferred to a position in a higher class or grade shall receive basic compensation at the lowest rate of the higher class or grade which is at least one step increase above his existing rate of basic compensation. If there is no rate in the higher class or grade which is at least one step increase above the employee's existing rate of basic compensation, he shall receive (a) the highest scheduled rate of such higher grade, or (b) his existing rate of basic compensation, if such existing rate is the higher.

At present, a promoted employee receives no immediate increase if he is already receiving a rate in the lower grade that also occurs in the higher grade. If he is receiving a rate in the lower grade that falls between two rates of the higher grade, he is promoted at the higher of these two rates.

In too many cases, accordingly, an employee who is promoted to greater responsibilities or more difficult duties receives no immediate increase in pay. This is not in accord with the commonly accepted principle that a promotion in pay should concurrently accompany a promotion in duties and responsibilities.

Subsection (b) of section 802 corrects this situation.

Any such increase would be an "equivalent increase" within the meaning of section 701 and the employee would then begin a new 52week or 78-week period required for another periodic within-grade step increase.

TITLE IX--EFFICIENCY RATINGS

With minor changes and improvements in language, title IX repeats the provisions of section 9 of the Classification Act of 1923, as amended by section 7 of the act of November 26, 1940.

Section 901: This section authorizes and directs the Civil Service Commission to establish, and review from time to time, uniform systems of efficiency rating. Such systems are to set forth certain degrees of efficiency which will constitute ground for recognition of outstanding performance, as well as for certain pay and personnel transactions, such as step increases, or removal from the position, or dismissal from the service. Departments are required to rate employees' performance of work in accordance with the systems established by the Commission. They are to be open to inspection by representatives of the Commission, and employees shall have a similar right including the right of each employee to inspect the detailed report of his own rating. When the efficiency ratings so warrant, reductions in compensation, removals from positions, or dismissals from the service shall be made by the departments in accordance with the Commission's regulations. Section 902: This section continues the provisions of existing law for boards of review before whom an employee may appeal his efficiency rating. These boards consist of three members. One member serving as chairman is designated by the Commission; one member is designated by the department concerned; and one member is designated by employees in such manner as may be determined by the Commission, usually by an open election. Provision is made for the designation of alternate members in the same manner. The boards of review are required to consider and pass upon the merits of efficiency ratings when the case is submitted. Employees have the right to request a review of their efficiency ratings and a right to a hearing by the board. At such hearing, the employee, or his representative, and the department, or its representative, shall be afforded opportunity to submit orally, or in writing, any pertinent information and to hear or examine, and reply to, information submitted to the board by other parties. The board is authorized to make such adjustment in an appealed efficiency rating as it may find to be proper.

TITLE X-GENERAL PROVISIONS

Section 1001: This section authorizes the Commission to issue regulations for the administration of the bill.

Section 1002: This section provides for an annual report from the Commission to the President on the pay rates and the administration of the bill, and a report by the President to the Congress, based on the Commission's report, with such recommendations as the President may deem advisable.

Section 1003: This section continues provisions of existing law against discriminating, in the administration of the Classification Act, on account of sex, marital status, race, creed, or color.