End of "GM" Designation

The Performance Management and Recognition System Termination Act, P.L.103-89, was effective on November 1, 1993. A GM employee's pay will be fixed against the nationwide General Schedule when the employee is promoted temporarily or permanently, changed to lower grade, reassigned out of a position designated as a "supervisory" or "management official" under CSRA; transferred; or has a break in service of more than 3 days. Until one of those personnel actions occurs, GM rates of pay, including off step rates, are to be considered General Schedule rates of basic pay for purposes of pay setting. Per OPM, the 1994 general increase was properly applied to the rate a GM employee held on October 31, 1993, on the eve of the sunset of PMRS, thus yielding the employee's 1994 GM rate of basic pay. The 1995 increase was, in turn, applied to the employee's 1994 GM rate of basic pay, etc.

Equivalent Increase

All "GS" employees, including those designated "GM" after October 31, 1993, are eligible for within-grade increases according to waiting periods established in law. A PMRS merit increase paid on October 3, 1993, including one for zero dollars, is an equivalent increase and marks the beginning of a waiting period for a next within-grade increase for GM employees. Eligible "GM" employees will have a step increase added to their basic rate (including an off-step rate) upon completion of the appropriate waiting period, provided performance has been of an acceptable level of competence.

Pay Setting Examples

Example 1 (GM gets a within-grade)

Jeremiah is a GM-15 with an off step rate of basic pay of $67,700. His rate (between step 1 and step 2) puts him in a one year waiting period for a within grade increase. Per OPM directive, a waiting period began the day he got his last merit increase (October 3, 1993). He will, therefore, be eligible for step 2 sometime after October 1, 1994. In setting salary at that time, the step for his grade ($2,220) will be added to $67,700 bringing his rate to $69,920. It will still be off step after the within grade and will stay that way until the employee is promoted, transferred, etc.

The off step rate should be multiplied by locality pay as appropriate.

Example 2 (Reassignment to GS)

Kane, a GM-13 employee earning basic pay of $56,600, is reassigned out of a supervisory position. Note: $56,600 is an off step GM rate. In effecting any action to change an employee from GM to GS, use the employee's basic rate of pay as explained in the opening paragraph (this should correspond with the employee's unadjusted rate on an SF-50) - not the locality rate.

Since Kale is being reassigned to a non-supervisory position, he is losing GM status. He must be slotted in the step of GS-13, which most nearly accommodates his GM rate. On the GS-94 regular schedule, this puts Kane at GS-13/7 ($57,502). Kane should be paid the rate for GS-13/7 on the appropriate locality comparability pay schedule, etc.
As a GS-13/7 Kane is in a three-year waiting period for a within grade increase. Per OPM directive, the waiting period began with the last merit increase the employee received on October 3, 1993. He will be eligible for a within-grade increase sometime after October 3, 1996.

Example 3 (Promotion)

Noah is being promoted from GM-13 (basic pay at $53,400). Note: In promoting a GM (any promotion action terminates GM), compute the employee's promotion entitlement (two-step promotion rule) on the GM rate of basic pay, then - using the nationwide schedule - slot the result of the computation against the step of the higher grade which most nearly accommodates the employee's new rate. This will undoubtedly result in another slight increase.

Noah must receive an increase equal to at least two steps at the GS-13 rate or $3,194. This, added to his off step GM rate, would put his rate at $56,594. The step that most nearly accommodates the new rate in GS-14 is step 1 ($56,627). The payable rate is the 14/1 on the applicable locality schedule.

Reference

5 CFR, Part 531