Pay Flexibilities

TABLE OF CONTENTS

OVERVIEW

12.1 What is the purpose of this chapter? This chapter:

A. Establishes U.S. Fish and Wildlife Service (Service) policy and procedures for a variety of pay flexibilities for General Schedule (GS) or Federal Wage System (WAGE) employees and positions; and

B. Describes how we determine salary, set pay, and use pay flexibilities to create and foster a collaborative organizational culture.  

12.2 What is the scope of this chapter? This chapter applies to all Service GS and WAGE pay-setting decisions.

12.3 What is the overall policy? It is Service policy to use pay flexibilities when appropriate and to set pay equitably.

12.4 What are the authorities for this chapter? 

A. Office of Personnel Management’s (OPM),Federal Wage System, Appropriated Fund Operating Manual.

B. Pay and Allowances, General Schedule Pay Rates (5 U.S.C. 5332 - 5334).

C. Pay Under the General Schedule (5 CFR 531), including:

(1) Superior qualifications and special needs pay-setting authority (5 CFR 531.212(a)). 

(2) Determining Rate of Basic Pay (5 CFR 531, Subpart B).

D. Prevailing Rate Systems (5 CFR 532) and Pay Administration (5 CFR 532, Subpart D).

E. Special Rate Schedules for Recruitment and Retention (5 CFR 530, Subpart C).

12.5 What terms do you need to know to understand this chapter? 

A. Appointing official means the person having the authority, by law or by duly delegated authority, to appoint, employ, or promote individuals to positions in the Service. The Chief of Human Resources (HR) Operations holds this authority and may redelegate it. 

B. Change to lower grade means moving an employee, while continuously employed, from one grade to a grade below it with or without a reduction in pay.

C. Federal Wage System (WAGE) is the classification and pay system established under 5 U.S.C. chapter 53, subchapter IV, that covers most Federal blue-collar employees. There are separate wage schedules for Wage Grade (WG), Wage Leader (WL), and Wage Supervisor (WS) positions. WAGE pay is based on the prevailing rates paid by private industry in a particular area.

D. General Schedule (GS) is the classification and pay system established under 5 U.S.C. chapter 51 and subchapter III of chapter 53. The GS covers the majority of white-collar employees in the Federal Government.

E. GS maximum payable rate is the lowest rate on the current pay scale of the employee’s grade that is equal to or exceeds their highest previous rate. The rate is based on a higher rate of pay than the employee previously received in another Federal job. WAGE regulations do not use the term ‘maximum payable rate.’

F. Highest applicable rate range is the span of the top rates of basic pay, excluding any retained rates. The highest applicable rate range is generally synonymous with step 1 through step 10 on the locality pay table; however, this is not the case when a special rate is applicable and the rate range for the special rate exceeds the applicable locality rate range. 

Note: The highest applicable rate range may consist of two types of pay rates from different pay schedules, e.g., a range where special rates (based on a fixed dollar supplement) are higher in the lower portion of the range and locality rates are higher in the higher portion of the range. For example, special rate table #0222 (available to view at OPM's website) establishes a step 1 rate only, so you use the special rate for step 1 and the locality rate table for steps 2 through 10.

G. Highest Previous Rate (HPR) is the top rate of basic pay that an individual has received while employed in a civilian position in any part of the Federal Government, including service with the government of the District of Columbia for employees first employed by that government before October 1, 1987. The HPR will be the highest earned rate that meets regulatory requirements.   

H. Maximum Payable Rate (MPR) rule is a GS pay-setting authority used to set pay at a rate above the rate that would be established using normal rules. 

RESPONSIBILITIES

12.6 Who is responsible for pay flexibilities? 

Table 12-1: Responsibilities for Pay Flexibilities 

PAY-SETTING REQUIREMENTS

12.7 What are pay flexibilities? 

A. Pay flexibilities modify or change pay setting rules. We apply flexibilities to support employee placement after an HR Specialist (specifically, a Classifier) determines the grade and pay plan of a position (see 225 FW 1).

B. Hiring officials develop written justifications to support their requests to use pay flexibilities. Hiring officials should understand the fundamentals of the pay systems used in the Service (see section 12.8) sufficiently to recognize the need to make a request, via mySupport, and how best to use pay flexibilities to adjust an employee’s compensation package.  

C. The content of a compensation package depends on appointment type and generally consists of: 

(1) Salary, which is based on an employee’s pay plan, grade, assigned step, the geographic location, and any applicable special pay tables/rates;

(2) Federal holidays; 

(3) Annual leave, which is available toemployees who are in a pay status, are regularly scheduled, and are on an appointment that is for greater than 90 days;

(4) Sick leave, accrued by all employees in a pay status;

(5) Paid parental leave and various insurance options offered to most employees (eligibility depends on appointment type); and

(6) Additional pay entitlements for some positions, which are not considered flexibilities (e.g., cost-of-living adjustments, law enforcement availability pay). 

D. Hiring officials, after receiving approval, may adjust compensation packages by requesting:

(1) Service credit for annual leave (see section 12.15);

(2) An appointment above the minimum rate (i.e., an advancement in steps) (see section 12.10);

(3) Application of HPR (see section 12.13);

(4) A flexible workplace (although not a monetized benefit, telework can decrease commuting costs and a remote agreement may affect pay (see the Department’s Personnel Bulletin 21-07 and Personnel Bulletin 20-06); and

(5) A monetary incentive, such as:

     (a) A recruitment, relocation, or retention incentive (see 225 FW 9); or 

     (b) Student loan repayments (see 225 FW 11).

E. Hiring officials may request flexibilities independently or in some combination if the requirements for each are appropriately satisfied. 

12.8 Which pay systems are covered by these flexibilities, and what do employees need to know about them? 

A. Each pay system covered by this chapter (see section 12.2) has its own formal organized framework, unique principles, procedures, and terms. 

(1) GS is the predominate pay system in Federal service and is used by most Federal agencies. GS not only means the classification and pay system established under 5 U.S.C. chapter 51 and subchapter III of chapter 53, but also refers to the pay schedule of GS rates established under 5 U.S.C. 5332, as adjusted under 5 U.S.C. 5303 or other law. Law Enforcement Officers (LEO) receiving LEO special base rates are covered by this schedule as well. The GS is predominately identified by the pay plan codes GS or GL.

     (a) GS consists of two components: the base or basic pay component and the locality pay component, which is an adjustment that applies only to specific areas of the United States. Without a locality adjustment, a GS employee is paid the same amount regardless of duty location. Congress added the locality pay adjustment as an added component to the GS salary structure structure
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     (b) GS currently has 15 grades and 10 steps in each grade. Under normal progression, it takes 18 years to go from a step 1 to a step 10. The GS grades of 16, 17, and 18 were abolished by the Civil Service Reform Act of 1978 and replaced by the Senior Executive Service.

     (c) GS pay is generally adjusted each January.

(2) WAGE is the schedule that covers trade, craft, or labor positions. WAGE pay is based on the prevailing rates paid by private industry in a particular area. 

     (a) The Department of Defense is the lead agency responsible for conducting WAGE surveys and issuing WAGE schedules (a pay matrix). 

     (b) WAGE has five steps at each grade. Under normal progression, employees reach the fifth step after 6 years, which is 112 percent of the prevailing rate. The step 2 rate is 100 percent of the prevailing rate. (The step 2 rate is also the representative rate.) 

     (c) We adjust WAGE pay when an updated WAGE schedule is issued. The timing of pay adjustments depends on when the individual WAGE schedules are issued and published. 

B. Each pay system sets up a matrix of pay rates that is represented by a particular table or array of pay tables. These pay matrices are called pay tables or WAGE schedules. 

C. The applicable pay matrix for an employee’s position depends on location, agency, and occupation. Some pay systems have multiple associated pay plans, which is the two-digit alphabetical code used for identification (e.g., GS, GL, WS, WG, WL).

(1) The X-axis on the pay matrix supplies a series of different pay ranges, called grades, corresponding to differences in grade-controlling job factors (see 225 FW 1). The grade is the hierarchical relationships among positions on the pay matrix.

(2) The Y-axis on the pay matrix (or matrices) supplies the specific salary within a grade, called steps. Typically, we do not set pay below the first step of a grade or above the top step. We may only set pay above the top step when the employee is entitled to pay retention. 

12.9 What are the general pay administration requirements?

A. The Service has limited pay flexibilities for adjusting rates of pay for employees who are already on the agency’s roles. Rare exceptions may occur when an employee previously earned a higher Federal salary or when a personnel action is covered by mandatory or optional grade or pay retention (see 225 FW 5).

B. Pay administration, which includes pay setting, is a critical competency for HR professionals, and knowledge of OPM guidance is required. Setting pay is a fact-dependent activity and requires an involved analysis, which is necessary to perform the responsibilities in section 12.6F of this chapter.    

C. Our policy is to spend funds economically and follow laws and regulations, including merit system principles, which require treating employees and applicants fairly and equitably. This policy extends to developing compensation packages and making compensation decisions.

D. The authority to set pay rates rests with the Chief of HR Operations, who is the official exercising personnel appointing authority. Appointing officials (see section 12.5 for the definition of an appointing official) select the proper rates of pay for employees by following regulations and considering management requests. The appointing official must decide to use these authorities and approve pay-setting requests before the employee enters on duty. We cannot make these decisions retroactively.

(1) Hiring officials may request to use pay flexibility authorities. To do so, they must supply written justifications that are specific to the circumstances. HR Specialists aid in developing requests, especially with respect to the evaluation of qualifications. Hiring officials must send their requests, via mySupport, to JAO, HR Operations.

     (a) Hiring officials, with HR Specialists’ support, evaluate compensation packages holistically by considering the type of appointment under which the employee is serving, the authority for the appointment, the position on which the employee will serve, the not-to-exceed date of a temporary appointment, comparable compensation packages, and any other relevant factors. 

     (b) They do not have to prove that prior offers were declined to offer an augmented compensation package; however, a satisfactory explanation is required and it must satisfy any requirements of law, regulation, or policy.

(2) The hiring official must not promise or offer an employee or a selectee a specific rate of pay, additional leave credit, or any form of additional compensation. HR personnel notify employees and selectees about job offers. 

E. Hiring officials must base their compensation recommendations only on an informed analysis that supports the reasonable belief that no unfounded pay disparities exist or will exist because of a decision. 

12.10 What do hiring officials need to know about determining rates for new appointments?

A. The rate of basic pay for new appointments is set at step 1, which is the minimum rate and the sufficient rate for employee placement for all new appointments. The pay flexibilities discussed in this chapter are organizational interventions. 

B. In rare situations, the appointing official may set the rate of basic pay for a newly appointed employee above the minimum rate. These cases must be properly justified, approved, and documented on the SF 50, Notification of Personnel Action. 

C. Hiring officials must submit, via mySupport, a written request to use these hiring flexibilities. (Exceptions are discussed in section 12.14.) The hiring official may submit a request after consulting with an HR Specialist regarding the selected candidate’s eligibility for an appointment above the minimum rate (e.g., an advancement in steps). The request must have the concurrence of the supervising Directorate member. 

D. A rate above the minimum is available for qualifying WAGE appointments based on:

(1) The applicant’s special qualifications (5 CFR 532.403(b));

(2) The lead agency’s designation (under 5 CFR 532.403(c)) that a step-rate above the first step-rate of a grade is the minimum step-rate at which a position may be filled. This is a rare occurrence and done for hard-to-fill positions; or 

(3) Use of HPR (5 CFR 532.405) (see section 12.13).

E. A rate above the minimum rate is available for qualifying GS appointments based on:

(1) The superior qualifications of the candidate (see section 12.11), 

(2) A special need for the candidate’s services (see section 12.11), or 

(3) Application of the MPR rule (see 5 CFR 531.221 and section 12.13).

F. Written requests must satisfy the regulatory requirements described in this policy. The hiring official must prepare a justification that is specific to the circumstances. The Chief, HR Operations will not approve blanket or generic requests or justifications. 

G. A hiring official’s written request consists of two parts:

(1) An eligibility determination, and

(2) A rate determination. 

H. These requests must be approved within the Service, offered, and accepted by the employee prior to the effective date of employment.

12.11 What do hiring officials need to know about using the superior qualifications or special need authorities for GS positions?

A. The appointing official may use the superior qualifications and special needs authorities to set the rate of basic pay for an employee for a:

(1) First appointment as a civilian employee of the Federal Government, or

(2) Reappointment after a 90-day break in service (see 5 CFR 531.212(a)(3) for exceptions to the 90-day break in service requirement).

B. To use these authorities, the hiring official must develop a written request that illustrates how they decided that the appointee has superior qualifications or fulfills an identified “special need.”

(1) A candidate fills a special need if the type, level, or quality of skills and competencies or other qualifications and experiences that they have are relevant to the requirements of the position and are essential to accomplishing an important mission, goal, or program activity. The Service must have identified the need prior to the job opportunity announcement or vacancy announcement, and the need must be documented in a workforce planning, strategic planning, or other vision document. 

(2) A candidate has superior qualifications when the evaluation of the level, type, or quality of their skills or competencies shows:

     (a) Qualifications are significantly higher than the minimum qualifications needed;

     (b) Qualifications are of a more specialized type compared to other candidates (i.e., an evaluation must overcome the presumption that all candidates of relatively equal scores are equally qualified). The request should illustrate the caliber of qualifications by comparing the selected candidate to the others in the selection pool based on experience or education, the quality of the accomplishments, or other factors (a subject matter expert may be consulted); and

     (c) The superior qualifications are relevant to the requirements of the position to be filled. 

C. The hiring official’s written request must explain how they determined that the requested rate is proper. Regulations require the hiring official to consider and address in writing the factors listed below (see 5 CFR 531.212(c)). All factors must be addressed, and if a factor does not apply, the hiring official must annotate their request accordingly. 

(1) The level, type, or quality of the candidate's skills or competencies;

(2) Significant disparities between Federal and non-Federal salaries for the skills and competencies required in the position to be filled;

(3) Existing labor market conditions and employment trends, including the availability and quality of candidates for the same or similar positions;

(4) The success of recent efforts to recruit candidates for the same or similar positions;

(5) Recent turnover in the same or similar positions;

(6) The importance or criticality of the position to be filled and the effect on the Service if it is not filled or if there is a delay in filling it;

(7) The desirability of the geographic location, duties, and work environment associated with the position;

(8) Service workforce needs, as documented in a strategic human capital plan; or

(9) Other relevant factors.

D. The appointing official may set an employee’s rate of basic pay based on a single factor. The appointing official will consider the design of grade and pay scales in making the determination and ensure that pay-setting determinations are consistent for similarly qualified candidates in similar positions.

E. When the position being filled meets the eligibility for recruitment incentive, the hiring official must consider the possibility of authorizing a recruitment incentive instead of approving an appointment above the minimum rate (see 5 CFR 531.212 (d)). 

(1) Officials must document their considerations in writing. 

(2) Documentation should include reason(s) for authorizing an advanced rate instead of a recruitment incentive. 

(3) Officials should not use recruitment incentives with appointment above the minimum rate unless the circumstances would justify both payments. 

12.12 What do hiring officials need to know about the eligibility determination and rate determination for using the special qualifications authority for WAGE positions?

A. The appointing official may use special qualifications authority to set the rate of basic pay upon an employee’s first appointment as a civilian employee of the Federal Government (see OPM’s Appropriated Fund Operating Manual, Subchapter 8). The first appointment is the first appointment regardless of the type of appointment.

B. The hiring official must develop a written request that illustrates how the Service decided that the appointee has special qualifications. Qualifications are special when, as determined by a subject matter expert, the candidate’s competence and experiences are of an exceptional or highly specialized nature in their trade or craft. 

C. The written request must explain how the requested rate was determined. The hiring official, in consultation with an HR Specialist, might do this by considering the experience needed to obtain the exceptional or highly specialized qualifications and comparing that experience to the design of the WAGE system. Under normal progression, WAGE employees reach the fifth step after 6 years, which is 112 percent of the prevailing rate.

12.13 What do HR professionals and hiring officials need to know about the maximum payable rate and highest previous rate? 

A. Both GS and WAGE regulations allow the Service to set a higher rate of pay than that which would normally be permitted per regulations. This is often desirable when an employee has earned a higher rate of pay earlier in their career. The HPR, along with the maximum step of the grade, is used to determine the MPR or highest applicable rate. The pay set under this authority may not be less than the rate an employee would be entitled to under normal pay-setting rules. We may not set pay above the step 10 rate (see 225 FW 5). For clarity, this chapter refers to these authorities collectively as HPR/MPR, when applicable. The authorities are:

(1) MPR at 5 CFR 531.221 (GS), or

(2) HPR at 5 CFR 532.405 (WAGE). 

B. HPR/MPR are pay flexibilities because they provide hiring officials with pay-setting options. However, HPR/MPR are often used without being recognized as flexibilities, so employees are often unaware that what was used is a flexibility. For example:

(1) Amir, a current GS-9, step 10 employee, could apply for a lateral transfer with another agency and receive a job offer that puts them back at the step 1 rate.

(2) Cameron, a current GS-12, step 10 employee, could request a change to a lower grade and receive a job offer that puts them at the step 1 rate.

(3) Syrah, a former GS-13, step 10 employee, could apply for reinstatement and receive a job offer that puts them at the step 1 rate. 

C. HPR/MPR may be used in various pay actions, including reemployment, transfer, reassignment, promotion, demotion, change in type of appointment, movement from a non-GS pay system, or termination of grade or pay retention.

D. The Chief, HR Operations or other appointing official, if delegated, has the authority to determine on a case-by-case basis whether to use HPR/MPR to set pay. They may ask the hiring official to request the use of HPR/MPR to set pay. (The SF-50, Notification of Personnel Action, is the approving document.) 

E. When the Service (or another Federal agency) decides not to use HPR/MPR for an action (e.g., a change to a lower grade or a reinstatement), they may still consider it for another action (e.g., a reassignment). The appointing official may only consider HPR/MPR on a subsequent action after receiving a request from the hiring official. 

F. The hiring official may request whether or not to use HPR/MPR to set pay. They also may request that the appointing official set pay at a specific step within the applicable rate range (i.e., at a step rate lower than the MPR). The hiring official must make, and the appointing official must approve, the request prior to the effective date of the personnel action. Following are examples of when such a request may be appropriate:

(1) The employee has a long break in service (e.g., over 2 years),

(2) The employee has accepted a position and their experiences are not directly related to the position they are accepting (e.g., an HR Specialist changing careers and becoming a Budget Analyst), or 

(3) The use HPR/MPR would create pay disparities. 

G. Deciding whether to use an employee's HPR/MPR must be based on acceptable evidence (i.e., an SF 50 or equivalent document) prior to the effective date of the personnel action used to set pay. 

H. In circumstances where an employee voluntarily separated or will separate from an agency, absent a request from a hiring official, the appointing official will set pay in whichever manner is more beneficial to the employee. This is typically the rate that results from applying HPR/MPR.

I. When the Service expects an employee to be repromoted after taking a voluntary change to a lower grade for a position with promotion potential equal to or greater than the employee’s former position, within 90 days of their assignment to the new position pay is set at the lower grade at the rate necessary to place the employee, when promoted, to the rate that would have been reached had the employee not been demoted. The Service does this, unless circumstances warrant HPR/MPR, to ensure pay equity and prevent rapid pay advancement.

J. When an employee is returned to their permanent grade after a temporary promotion, pay is set according to 5 CFR 531.215(c). When the temporary promotion lasted more than 1 year, the hiring official may request the use of HPR/MPR, which is rare.

K. When an employee is changed to a lower grade because of the employee’s failure to perform acceptably or because of employee misconduct, pay is set at the step one rate unless circumstances warrant HPR/MPR. (Refer to the Agency Decision Letter, issued in accordance with 5 U.S.C. 4303 or 5 U.S.C. 7513.)  

L. The Service must not use HPR/MPR to set pay for a change to a lower grade that resulted from an employee’s failure to successfully complete a supervisory or managerial probationary period. In these cases, the appointing official sets pay according to 5 CFR 315.907. (Also see 5 CFR 531.215(d)). 

M. On a case-by-case basis, the appointing official may use a GS employee’s special rate of pay as the HPR when all the criteria in 5 CFR 531.222(c) are met: 

(1) The employee is reassigned to another position in the Department at the same grade level,

(2) The special rate is the employee's rate of basic pay immediately before the reassignment, and

(3) The supervising Directorate member finds that the need for the employee’s services and contribution to the program will be greater in the position to which the employee is reassigned. 

12.14 What do hiring officials need to know about other pay flexibilities? The Federal Government has other pay flexibilities that we can use in very specific situations. These are rare and hiring officials should contact HR Operations for a consultation before considering them. 

A. Increased minimum rates: At the Service’s request and on a case-by-case basis, OPM may increase the minimum rates under the pay schedules to address significant recruitment or retention problems. These special salary rate provisions apply only to GS employees. 

(1) Supervisory Directorate members may request a special salary rate if they decide that such an incentive is necessary to address significant recruitment or retention problems. 

(2) Prior to making a request for a special salary rate, staff from the affected Region or program must contact HR Operations for a consultation. Group retention or recruitment incentive is generally approved prior to making a request for a special salary rate.

(3) On a case-by-case basis HR Operations staff will advise about the requirements and the procedures for submitting a request.

(4) HR Operations staff will calculate a special rate by adding a special rate supplement, such as a fixed-dollar amount or fixed-percentage amount. Employees who are covered by a special rate schedule are entitled to the applicable special rate within that schedule unless they are entitled to a higher rate of basic pay under other authority (e.g., a higher locality rate or a retained rate). See OPM’s special rate table for examples.

B. Dual compensation waivers: Supervisory Directorate members may ask, through the Chief of HR Operations, the Chief of the Division of Human Capital, and the Department, for OPM to allow the reemployment of civilian annuitants without a salary offset reduction (this is referred to as a ‘dual compensation waiver’). Dual compensation waivers are appropriate when the Service needs this flexibility to meet an exceptional employment need. Exceptional employment needs include an emergency hiring need, a severe recruiting difficulty, the need to retain a particular individual, or other unusual circumstances. HR Specialists will advise Directorate members on what is required for dual compensation requests. OPM’s approval is unnecessary for certain occupations (e.g., reemployment of civilian retirees into a position directly related to wildland firefighting operations) or certain appointing authorities (e.g., reemployment of civilian retirees under the National Defense Authorization Act (see 225 FW 14).

12.15 What are the requirements to grant creditable service for annual leave accrual for non-Federal work experience and experience in the uniformed service?

A. Hiring officials may request service credit be given to eligible new employees for qualifying experience that otherwise would not be creditable for the purpose of determining the annual leave accrual rate (see Personnel Bulletin 05-05, Departmental Policy on Absence and Leave; Creditable Service, and 5 CFR 630.205). 

B. Hiring officials must ensure requests conform with the documentation requirements outlined in Personnel Bulletin 05-05, and that they have the concurrence of the supervising Directorate member.

C. The Chief of HR Operations decides whether or not to grant creditable service for annual leave accrual in accordance with Personnel Bulletin 05-05, and will only grant credit for employment or service that gave the employee the skills and experience that are essential to the new position (i.e., we may give credit for specialized experience that is necessary and related to the duties of the position to which the individual is being appointed).

(1) We must not include any service that has already been credited for leave accrual, including military campaign time.

(2) For individuals to continue to receive credit for their service time throughout their Federal careers, they must complete 1 year of continuous service with the Department.

D. The decision to grant creditable service toward annual leave accrual must be made before an individual enters on duty and cannot be made retroactively.