Maximum Payable Rate Rule in Basic Pay Setting

1.  Purpose. This Order cancels and serves to replace Chapter 4 of the handbook, Pay Administration and Position Classification (CPO P 9550.1). The purpose of this Order is to update policy and processing rules governing the use of the maximum payable rate rule, and the highest previous rate, during basic pay setting, in compliance with current civil service laws and regulations, following passage of the Workplace Flexibilities Act of 2004 (Pub. L. 108-411).

2.  Background. This Order incorporates current civil service regulatory principles governing basic pay setting pursuant to Workforce Flexibility Act of 2004 (Pub. L. 108-411).

3.  Scope and Applicability.

     a. The provisions of this policy apply to organizations and employees of GSA in both the competitive and excepted services in positions classified and paid under the General Schedule (i.e., Subchapter III of 5 U.S.C. Chapter 53).

     b. The Office of Inspector General (OIG) has independent personnel authority. See Section 6 of the Inspector General Act of 1978, (5 U.S.C. App.3), as amended (Inspector General is authorized “to select, appoint, and employ such officers and employees as may be necessary for carrying out the functions, powers, and duties of the Office of Inspector General”) and GSA Order ADM 5450.39D CHGE 1 GSA Delegations of Authority Manual (Delegations Manual), Chapter 2, Part 1 (“the Inspector General has independent authority to formulate policies and make determinations concerning human capital issues within the [OIG]” and GSA determinations/delegations do not limit that authority). Similarly, GSA specifically recognizes that the Inspector General has independent authority to formulate policies and make determinations concerning training, employee development, and career management.

4. Cancellation. Pay Administration and Position Classification Handbook (CPO P 9550.1).

5. Nature of Revision. The provisions of this policy update: (a) the approval criteria for when highest previous rate pay setting may be used and (b) the approval processes.