MS 622: Within-Class/Grade Salary Increases

Date: 2/8/84
Office: M/PM
Supersedes: MS 622 of 5/29/73


1.0	Purpose
2.0	Scope
3.0	Background
4.0	Definitions
	4.1	Acceptable Level of Competence
	4.2	Calendar Week
	4.3	Corrective Action
	4.4	Creditable Service
	4.5	Critical Element
	4.6	Equivalent Increase
	4.7	Maximum Rate
	4.8	Meritorious Increase (Foreign Service)
	4.9	Periodic Step Increase
	4.10	Quality Increase (Competitive Service)
	4.11	Rate of Basic Pay
	4.12	Waiting Period
	4.13	Within-Class/Grade Increase
5.0	Policy
	5.1	General
	5.2	Periodic Step Increases
		5.2.1	Entitlement to Periodic Step Increase
		5.2.2	Length of Waiting Periods
			5.2.2.1	Foreign Service
			5.2.2.2	Competitive Service
			5.2.2.3	Non-full-time Employees
		5.2.3	Commencement of a Waiting Period
			5.2.3.1	Increases not Considered Equivalent Increases
			5.2.3.2	LWOP Status for GS Employees
		5.2.4	Communication of Performance Requirements
		5.2.5	Acceptable Level of Competence Determinations
			5.2.5.1	Responsibility
			5.2.5.2	Performance Period
			5.2.5.3	Certification
				5.2.5.3.1	Affirmative Determination
				5.2.5.3.2	Negative Determination
			5.2.5.4	Reconsideration of a Negative Determination
				5.2.5.4.1	Request for Reconsideration
				5.2.5.4.2	Reconsideration File
				5.2.5.4.3	Employee Review
				5.2.5.4.4	Time Limitations
				5.2.5.4.5	Representation
			5.2.5.4	Appeal Rights
			5.2.5.5	Continuing Evaluation
		5.2.6	Effective Date for Periodic Step Increase
			5.2.6.1	Initial Affirmative Determination
			5.2.6.2	Affirmative Determination After a Negative Determination
	5.3	Meritorious/quality Step Increases
		5.3.1	Criteria
		5.3.2	Meritorious/Quality Increases vs. Incentive Awards
		5.3.3	Procedures
			5.3.3.1	Submission
			5.3.3.2	Documentation
			5.3.3.3	Review and Authorization
		5.3.4	Effective Date for Quality Increases
		5.3.5	Reports and Publicity
6.0	Effective Date

Attachments

	Attachment A	PC Form 1553, Certification for Periodic Step Increase
	Attachment B	PC Form 1554, Recommendation for Meritorious/Quality Step Increase

1.0 Purpose

This Manual Section establishes criteria and procedures governing the administration of periodic salary step increases and meritorious/quality step increases for Peace Corps employees.

2.0 Scope

The provisions of this Manual Section apply to full-time and part-time employees, except the following:

Employees appointed by the President with the advice and consent of the Senate.
Senior Foreign Service employees (FE).
Foreign Service National employees (FSN).
Merit Pay employees (GM).
Experts/consultants, student aides (unless later converted to part- time employees), and interns.

3.0 Background

Foreign Service Act of 1980, Section 406.
Section 7(a) (2) of the Peace Corps Act, as amended.
Federal Personnel Manual, Chapter 531.
Title 5, Code of Federal Regulations, Part 531.
Title 5, United States Code, Section 5335.

4.0 Definitions

4.1 Acceptable Level of Competence

A level of performance identified by the supervisor at which the performance by an employee of the duties and responsibilities of his or her assigned position is satisfactory, as defined in the performance appraisal plan and, in addition to the requirements of paragraph 5.2.1. of this Manual Section, warrants advancement of the employee's rate of basic pay to the next higher step of the grade of his or her position. An employee whose current performance with respect to any critical element is unsatisfactory, as defined in Manual Section 626, is not performing at an acceptable level of competence. Further, absent unusual circumstances, an employee whose overall Performance during the waiting period is at the minimum level required for retention in the position but below a fully satisfactory level is not performing at an acceptable level of competence.

4.2 Calendar Week

A period of any seven consecutive calendar days.

4.3 Corrective Action

Retroactive action taken to correct a periodic step increase which was delayed beyond its proper effective date solely by administrative error, delay or oversight. Similarly, retroactive action taken when a periodic step increase is granted after a favorable reconsideration of the determination.

4.4 Creditable Service

Periods of civilian and/or military service as prescribed under specific statutory or regulatory authority creditable towards a waiting period for within-grade increases.

4.5 Critical Element

A component of an employee's job that is of sufficient importance that performance below the minimum standard requires remedial action and may be the basis for removing or reducing the grade level of that employee. Such action may be taken without regard to performance on other components of the job.

4.6 Equivalent Increase

An increase or increases in the employee's rate of basic pay equal to or greater than the difference between the rate of pay for the class/grade and step occupied by the employee during the waiting period and the rate of pay for the next higher step of that class/grade. This increase may result from a grade promotion, a periodic step increase, or a change in pay systems. A meritorious/quality step increase is not considered an equivalent increase.

4.7 Maximum Rate

The top rate for the grade or class of the position.

4.8 Meritorious Increase (Foreign Service)

An additional within-class step increase in recognition of high-quality performance above that ordinarily found in the type of position concerned.

4.9 Periodic Step Increase

A regularly-scheduled step increase in an employee's rate of basic pay upon meeting the length of service and Performance rating requirements of applicable provisions in paragraphs 5.2.1, 2, and 3 of this Manual Section.

4.10 Quality Increase (Competitive Service)

An additional within-grade step increase in recognition of high-quality performance above that ordinarily found in the type of position concerned.

4.11 Rate of Basic Pay

The rate of pay fixed by law or administrative action for the position held by an employee before any deductions and exclusive of additional pay of any kind.

4.12 Waiting Period

The minimum time of creditable service required to become eligible for consideration for a periodic step increase.

4.13 Within-Class/Grade Increase

Either a periodic step increase or a meritorious/quality step increase.

5.0 Policy

5.1 General

The program for granting within class/grade salary increases to employees is designed to motivate employees to work up to the maximum of their capabilities. Each supervisor has a basic responsibility for ensuring that the employees under his or her direction have a full understanding of their duties and responsibilities and are informed in writing as to what constitutes the levels of performance required in order to receive a periodic step increase and a meritorious/quality step increase. Through continuing evaluation, assistance, and direction, supervisors endeavor to develop employees' potential in the positions to which they are assigned. Supervisors shall ensure that periodic step increases are not awarded on an automatic basis; if an employee's work is not of an acceptable level of competence at the end of the prescribed waiting period, the periodic step increase is withheld until the employee's performance reaches an acceptable level of competence. Supervisors shall likewise ensure that meritorious/quality step increases are granted for performance which clearly merits such an increase.

5.2 Periodic Step Increases

5.2.1 Entitlement to Periodic Step Increase

An employee paid at less than the top step of his or her class/grade shall be advanced to the next higher step of that class/grade upon meeting the three following requirements:

The employee must have completed the required waiting period;
The employee must not have received an equivalent increase during the waiting period; and
The employee's performance must be at an acceptable level of competence, as determined by the employee's supervisor and reviewing official.

5.2.2 Length of Waiting Periods

5.2.2.1 Foreign Service

For FP employees with scheduled tours of duty, the waiting periods are: prearranged regularly

For Advancement To	The Waiting Period Is
Within-class steps 2 through 10	52 Calendar Weeks
Within-class steps 11 through 14	104 Calendar Weeks

5.2.2.2 Competitive Service

For GS employees with prearranged regularly scheduled tours of duty, the waiting periods are:

For Advancement To	The Waiting Period Is
Within-grade Step Rates 2, 3, or 4	52 Calendar Weeks
Within-grade Step Rates 5, 6, or 7	104 Calendar Weeks
Within-grade Step Rates 8, 9, or 10	156 Calendar Weeks

5.2.2.3 Non-full-time Employees

A non-full-time FP employee without a prearranged regularly scheduled tour of duty is given one day' s credit towards the waiting period for each day in a pay status. The waiting periods are as follow:

For Advancement To	The Waiting Period Is
Within-class Steps 2 through 10	260 days of creditable service in a pay status over a period of not less than 52 calendar weeks.
Within-class Steps 11 through 14	520 days of creditable service in a pay status over a period of not less than 104 calendar weeks.

5.2.3 Commencement of a Waiting Period

A waiting period begins:

On the first appointment as an employee of the Federal Government;
On receiving an equivalent increase; or
After a period of nonpay status or a break in service (alone or in combination) in excess of 52 calendar weeks, unless the nonpay status or break in service is creditable service, e.g., all leave-without-pay (LWOP) in the Foreign Service.

5.2.3.1 Increases Not Considered Equivalent Increases

An increase in an employee's rate of basic pay shall not be considered an equivalent increase when it results from the following:

A statutory pay adjustment;
A meritorious/quality step increase; or
A temporary promotion.

5.2.3.2 LWOP Status for GS Employees

Time in a nonpay status is creditable service in the computation of a waiting period for a GS employee with a scheduled tour of duty when it does not exceed an aggregate of:

Two workweeks in the waiting period for steps 2, 3, and 4;
Four workweeks in the waiting period for steps 5, 6, and 7; and
Six workweeks in the waiting period for steps 8, 9, and 10.

5.2.4 Communication of Performance Requirements

Employees covered by PCMS 626, "Peace Corps Performance Appraisal System", shall be informed by their supervisors of the specific performance requirements that constitute an acceptable level of competence within the time frame and according to the provisions of PCMS 626. Other employees covered by this Manual Section but not covered by PCMS 626, ie., "temporary" employees in appointments of less than one year, shall be informed, within a reasonable time after initial appointment or change in position, of the specific standards for performance required for a within class step increase.

5.2.5 Acceptable Level of Competence Determinations

5.2.5.1 Responsibility

Supervisors and reviewing officials shall determine which employees are performing at an acceptable level of competence.

5.2.5.2 Performance Period

An acceptable level of competence determination shall be based on an employee's performance of the duties and responsibilities of his or her assigned position during the waiting Period except when:

An employee has not been informed of the specific requirements for performance at an acceptable level of competence at least 30 days before the end of a waiting period; or
An employee is reduced in grade, because of unacceptable performance, to a position in which he or she is or will become eligible for consideration within 60 days for a within-grade increase.

Under these circumstances, the employee shall be advised that his or her determination is Postponed and informed of the specific requirements for performance at an acceptable level of competence. The determination shall be based on a period of ninety (90) days during which the employee has had a reasonable opportunity to demonstrate performance at an acceptable level of competence. If the employee is performing at an acceptable level of competence during the period or at the end of the period, the within-grade increase will be retroactive to the original due date. If a determination is made that the employee is not performing at an acceptable level of competence, the procedures for withholding a periodic step increase shall be followed. (See paragraph 5.2.5.32.)

5.2.5.3. Certification

Peace Corps Form PC-1553, Certification for Within-Class/Grade Increase, will be issued to the supervisor by the Office of Personnel Management ninety (90) days in advance of completion of the employee's waiting period. (See Attachment A)

5.2.5.3.1 Affirmative Determination

If the first line supervisor determines that the employee's performance is of an acceptable level of competence, he or she will sign the Certification for Within-Class/Grade Increase in the affirmative (part A) and forward the certificate to the second level supervisor as the reviewing official for approval and signature. The form will then be returned to the Office of Personnel Management at least thirty (30) days in advance of the completion of the waiting period. The employee will be given a copy of the SF-50 effecting the increase.

5.2.5.3.2 Negative Determination

If a supervisor determines that an employee's performance is not at an acceptable level of competence, a negative determination shall be communicated to the employee in writing and shall:

Set forth the reasons for the determination and the areas in which the employee must improve his or her performance in order to be granted a periodic step increase.
Inform the employee of his or her right to request that the appropriately designated Agency official reconsider the determination.

Both the certification form, with the supervisor's and reviewing official's signatures on Part B and a copy of the determination notification to the employee will be forwarded to the Office of Personnel Management.

5.2.5.4 Reconsideration of a Negative Determination

5.2.5.4.1 Request for Reconsideration

An employee or an employee's personal representative, may request reconsideration of a negative determination by filing a written response to the negative determination setting forth the reasons why the Agency should reconsider the determination. The request must be filed not more than 15 days after receiving the notice of determination. The request will be filed with the appropriate Associate Director or the Peace Corps Deputy Director if the employee's supervisor or reviewing official is an Associate Director or Staff Office Director.

5.2.5.4.2 Reconsideration File

When an employee files a request for reconsideration, the Agency will establish an employee reconsideration file which will contain all pertinent documents relating to the negative determination and the request for reconsideration, including copies of the following:

The written negative determination and the basis therefore;
The employee's written request for reconsideration;
The report of investigation when an investigation is made;
The written summary or transcript of any personal presentation made; and
The Agency's decision on the request for reconsideration.

The file shall not contain any document unknown to the employee and the representative nor any summary of the employee's personal presentation to which the employee or his or her representative has not had an opportunity to submit a written exception

5.2.5.4.3 Employee Review

An employee in a duty status shall be granted a reasonable amount of official time to review the material relied upon to support the negative determination and to prepare a response.

5.2.5.4.4 Time Limitations

The Agency shall provide the employee with a prompt written final decision, no later than ten (10) calendar days after receipt of the request for reconsideration. The time limit to request a reconsideration may be extended when the employee shows he or she was not notified of the time limit and was not otherwise aware of it, or that the employee was prevented by circumstances beyond his or her control from requesting reconsideration within the time limit.

5.2.5.4.5 Representation

The Agency may disallow, as an employee's personal representative, an individual whose activities as a representative would cause a conflict of interest of position, an employee whose release from his or her official duties and responsibilities would give rise to unreasonable costs to the Government, or an employee whose priority work assignment precludes his or her release from official duties and responsibilities. Representation for employees in an exclusive bargaining unit is governed by the negotiated agreement.

5.2.5.4.6 Appeal Rights

When a negative determination is sustained after reconsideration, an employee shall be informed in writing of the reasons for the decision and of his or her right to appeal the decision as follows:

Employee Status	Appealable
Bargaining unit members with General Schedule or Foreign Service unlimited	In accord with the grievance procedure of the negotiated agreement, or to the Merit appointments Systems Protection Board, but not both
Bargaining unit members with Foreign Service time- limited appointments	In accord with the grievance procedure of the negotiated agreement
Non-bargaining unit members with General Schedule or Foreign Service unlimited appointments	To the Merit Systems Protection Board
Non-bargaining unit members with Foreign Service time-appointments	In accord with PCMS 655, "Administrative Grievance limited Procedures"

5.2.5.5 Continuing Evaluation

After a periodic step increase has been withheld, the supervisor may grant the increase at any time after he or she determines that the employee has demonstrated sustained performance at an acceptable level of competence. At a minimum, a determination whether the employee's performance is at an acceptable level of competence shall be made after each 52 calendar weeks following the original due date for the increase.

5.2.6 Effective Date for Periodic Step Increase

5.2.6.1 Initial Affirmative Determination

Except as provided in paragraph 5.2.6.2 of this Manual Section, a within-grade increase shall be effective on the first day of the first pay period following completion of the required waiting period and in compliance with the conditions of eligibility.

5.2.6.2 Affirmative Determination After a Negative Determination

When an acceptable level of competence is achieved at some time after a negative determination, the effective date is the first day of the first pay period after the acceptable level of competence determination has been made.

5.3 Meritorious/Quality Step Increases

5.3.1 Criteria

To be considered for a meritorious/quality step increase, an employee must:

Perform all critical elements of his or her assigned position at a level that substantially exceeds an acceptable level of competence (i.e., exceptional or outstanding) so that, when viewed as a whole, the employee's performance is at a high level of quality;
Sustain performance at that level for a period of time sufficient to conclude that such a level is characteristic of his or her performance and is expected to continue in the future; in no case may this period be less than 90 days;
Be expected to remain for at least 60 days in the same position, or in a similar position at the same class/grade level;
Not have received a meritorious/quality step increase within the preceding 52 calendar weeks; and,
Not be at the top step of his or her class/grade.

5.3.2 Meritorious/Quality Increases Vs. Incentive Awards

In addition to the meritorious/quality increase, incentive awards (MS 662) are also available to supervisors for granting monetary or honorary recognition for excellence in performance. In some instances, although the employee will enjoy the benefits of a lump-sum cash award for a shorter length of time, the contribution may be of such a nature that a special achievement or an honorary award is more appropriate than a meritorious/quality increase. A meritorious/quality increase and a cash award may not be granted on the basis of the same performance.

Supervisors shall use the Incentive Awards Program under the following circumstances:

When the achievements are of a nonrecurring nature;
In special work situations of limited duration; or
For recognition of group achievement.

5.3.3 Procedures

5.3.3.1 Submission

The immediate supervisor normally originates a proposal for a meritorious/quality increase in conjunction with a completed performance appraisal. The proposal is submitted to the Incentive Awards Committee, via the Incentive Awards Administrator, for authorization.

5.3.3.2 Documentation

Proposals for meritorious/quality increases shall be submitted on a SF-52 with either the employee's recent performance appraisal, if it is less than 60 days old, or with PC-1554 (see Attachment B). Sufficient detailed documentation must be attached to demonstrate how the employee's performance substantially exceeded the established standards.

5.3.3.3 Review and Authorization

The Incentive Awards Committee reviews the proposal for its concurrence with established regulations. If the Committee concludes that the proposal concurs with established regulations, the Incentive Awards Administrator will forward it to the appropriate Associate Director or Office Director for approval. If the Associate Director approves the proposal, he or she will forward it to the Personnel Staffing Division (M/PM) for processing.

If the Committee concludes that the proposal does not comply with established regulations, it shall return the proposal to the proposing official with an explanation of the reason for non-authorization.

5.3.4 Effective Date for Quality Increases

The quality increase will normally be effective on the first day of the first pay period following the authorization of the increase.

5.3.5 Reports and Publicity

All meritorious/quality step increases will be publicized to Agency employees. Additionally, Peace Corps will.publicly present a certificate to the recipient recognizing his or her accomplishments.

6.0 Effective Date

This Manual Section will become effective on the date of issuance.