ELM Revision: Rate Retention and Change to Lower Nonbargaining Unit Grade

Effective immediately, Employee and Labor Relations Manual (ELM), sections 415.1 through 415.2, are revised to update Postal Service™ procedures.

Employee and Labor Relations Manual (ELM)

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4 Pay Administration

410 Pay Administration Policy for Nonbargaining Unit Employees

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[Revise the title of 415 as follows:]

415 Rate Retention and Change to Lower Nonbargaining Unit Grade

415.1 Rate Retention Types

415.11 Saved Grade

[Revise 415.11 as follows:]

Under saved grade, an employee assigned to a lower grade is treated as being in the higher grade for pay increases and benefit purposes during the saved grade period. During this period of saved grade, employees should apply for posi­tions at their respective saved-grade levels to allow them to return to their previous grade and level of responsibility. Nonbargaining unit employees, except for those assigned to lower grades during RIF-related periods (see 415.21), may be granted saved grade only in accordance with the terms and conditions issued for special situations by the vice president, Employee Resource Management (ERM).

415.12 Saved Salary

[Revise 415.12 as follows:]

Saved salary provides that an employee assigned to a lower grade position whose higher grade salary does not fall within the salary range of the lower grade has this higher grade salary continued (saved). For as long as the saved salary is higher than the maximum salary of the lower grade position, the employee may receive pay-for-performance lump sums based on the policies applicable to employees at or above their salary range maximum. The saved salary is continued in accordance with postal policy or until it is terminated as specified in 415.4.

415.2 Changes to Lower Grade

[Revise the title and text of 415.21 as follows:]

415.21 Change to Lower Grade During a RIF Avoidance Period, Specific RIF Notice Period, RIF-Related 30-Day Nonduty, Nonpay Status Period, or a RIF

Nonbargaining employees who are changed to a lower grade career nonbargaining position during RIF-related periods — RIF avoidance, specific RIF notice, 30-day non­duty, nonpay status, and RIF — retain their current grade and pay for a period not to exceed 2 years from the effec­tive date of the change to the lower grade position. On expiration of the saved grade period, they are automatically reduced to the grade of their current position. If upon expi­ration of the saved grade period the employee’s salary is within the salary range for the lower grade, the salary is continued. However, if the salary exceeds the maximum of the new grade, the salary is immediately reduced to the grade maximum. This applies not only for changes to lower grade positions within the EAS pay schedule, but also when changes occur within or between other nonbargain­ing pay schedules. (For further information, see 354.2.)

415.22 Voluntary Change to Lower Grade

[Revise 415.22 as follows:]

An employee who voluntarily changes to a lower grade position is immediately reduced to the lower grade, but the salary remains the same as that in the higher grade posi­tion, provided it is not above the maximum in the lower position’s salary range. In no case may the salary be set above the maximum for the new grade or above the employee’s salary immediately before the change. If the employee has a form of rate retention, it is terminated (see 415.4).

415.23 Position Reclassified to a Lower Grade

[Revise 415.23 as follows:]

When a position is reclassified to a lower grade, the employee is immediately reduced to this grade, but saved salary is granted for a period not to exceed 2 years, if the employee’s salary exceeds the maximum salary of the lower grade. If the employee’s salary is within the salary range for the lower grade, the salary is continued and there is no saved salary. At the end of the 2-year period, if the sal­ary exceeds the maximum of the new grade, the salary is immediately reduced to the grade maximum. Any manage­ment-initiated involuntary change to a lower grade must be effected according to the grievance and appeals proce­dures in 650.

Reclassifications occur primarily under the WSCS and the Station Manager Evaluation Process. In cases where full-time postmaster positions are reclassified to part-time positions for 104 weeks, the postmaster receives an hourly rate that produces the annual salary in effect prior to the change (full-time annual salary divided by the annual ser­vice hours for the part-time position). At the end of 104 weeks, the affected postmaster’s hourly salary is reduced to the maximum hourly rate for the A-E Postmaster (RSC F) salary schedule.

Note: All A–E postmasters are in the same grade, A–E; therefore, a change from one A–E service-hour category to another does not result in a change in grade (see 414.13).

[Revise the title and text of 415.24 as follows:]

415.24 Management-Initiated Action Where Employee Voluntarily Accepts a Lower Grade Nonbargaining Unit Position

In cases of management-initiated action or in cases in which management determines that it is in the mutual inter­est of both the employee and the Postal Service and an employee voluntarily accepts a lower grade nonbargaining unit position, the employee must be placed in a position that he or she is qualified to perform, and as near to the grade of his or her original position as possible. Saved sal­ary (see 415.12) is applicable in such actions for a period not to exceed 2 years. At the end of the 2-year period, the employee’s salary is immediately reduced to the maximum of the lower grade position.

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We will incorporate the complete text of this revision into the next printed version of the ELM and into the online update available on the Postal Service PolicyNet website:

n Go to http://blue.usps.gov.

n Under “Essential Links” in the left-hand column, click PolicyNet.

n On the PolicyNet page, click Manuals.

(The direct URL for the Postal Service PolicyNet website is http://blue.usps.gov/cpim.)