
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 5USC5335]

 
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
 
                           PART III--EMPLOYEES
 
                      Subpart D--Pay and Allowances
 
                    CHAPTER 53--PAY RATES AND SYSTEMS
 
               SUBCHAPTER III--GENERAL SCHEDULE PAY RATES
 
Sec. 5335. Periodic step-increases

    (a) An employee paid on an annual basis, and occupying a permanent 
position within the scope of the General Schedule, who has not reached 
the maximum rate of pay for the grade in which his position is placed, 
shall be advanced in pay successively to the next higher rate within the 
grade at the beginning of the next pay period following the completion 
of--
        (1) each 52 calendar weeks of service in pay rates 1, 2, and 3;
        (2) each 104 calendar weeks of service in pay rates 4, 5, and 6; 
    or
        (3) each 156 calendar weeks of service in pay rates 7, 8, and 9;

subject to the following conditions:
        (A) the employee did not receive an equivalent increase in pay 
    from any cause during that period; and
        (B) the work of the employee is of an acceptable level of 
    competence as determined by the head of the agency.

    (b) Under regulations prescribed by the Office of Personnel 
Management, the benefit of successive step-increases shall be preserved 
for employees whose continuous service is interrupted in the public 
interest by service with the armed forces or by service in essential 
non-Government civilian employment during a period of war or national 
emergency.
    (c) When a determination is made under subsection (a) of this 
section that the work of an employee is not of an acceptable level of 
competence, the employee is entitled to prompt written notice of that 
determination and an opportunity for reconsideration of the 
determination within his agency under uniform procedures prescribed by 
the Office of Personnel Management. If the determination is affirmed on 
reconsideration, the employee is entitled to appeal to the Merit Systems 
Protection Board. If the reconsideration or appeal results in a reversal 
of the earlier determination, the new determination supersedes the 
earlier determination and is deemed to have been made as of the date of 
the earlier determination. The authority of the Office to prescribe 
procedures and the entitlement of the employee to appeal to the Board do 
not apply to a determination of acceptable level of competence made by 
the Librarian of Congress.
    (d) An increase in pay granted by statute is not an equivalent 
increase in pay within the meaning of subsection (a) of this section.
    (e) This section does not apply to the pay of an individual 
appointed by the President, by and with the advice and consent of the 
Senate.
    (f) In computing periods of service under subsection (a) in the case 
of an employee who moves without a break in service of more than 3 days 
from a position under a nonappropriated fund instrumentality of the 
Department of Defense or the Coast Guard described in section 2105(c) to 
a position under the Department of Defense or the Coast Guard, 
respectively, that is subject to this subchapter, service under such 
instrumentality shall, under regulations prescribed by the Office, be 
deemed service in a position subject to this subchapter.

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 469; Pub. L. 90-83, Sec. 1(20), 
Sept. 11, 1967, 81 Stat. 199; Pub. L. 95-251, Sec. 2(a)(1), Mar. 27, 
1978, 92 Stat. 183; Pub. L. 95-454, title V, Sec. 503(g), title IX, 
Sec. 906(a)(2), (8), Oct. 13, 1978, 92 Stat. 1184, 1224, 1225; Pub. L. 
96-54, Sec. 2(a)(28), Aug. 14, 1979, 93 Stat. 383; Pub. L. 98-615, title 
II, Secs. 203, 204(a)(1), Nov. 8, 1984, 98 Stat. 3216; Pub. L. 101-508, 
title VII, Sec. 7202(e), Nov. 5, 1990, 104 Stat. 1388-336; Pub. L. 101-
509, title V, Sec. 529 [title I, Sec. 104(d)(2)], Nov. 5, 1990, 104 
Stat. 1427, 1447; Pub. L. 103-89, Sec. 3(b)(1)(H), Sept. 30, 1993, 107 
Stat. 982.)

                      Historical and Revision Notes
                                1966 Act
------------------------------------------------------------------------
                                                    Revised Statutes and
     Derivation                U.S. Code             Statutes at Large
------------------------------------------------------------------------
(a)-(c)............  5 U.S.C. 1121.                Oct. 11, 1962, Pub.
                                                    L. 87-793, Sec.  603
                                                    ``Sec. 701'', 76
                                                    Stat. 847.
(d)................  5 U.S.C. 1123 (as applicable  Oct. 11, 1962, Pub.
                      to 5 U.S.C. 1121).            L. 87-793, Sec.  603
                                                    ``Sec. 703 (as
                                                    applicable to Sec.
                                                    701)'', 76 Stat.
                                                    847.
------------------------------------------------------------------------

    In subsection (a), the words ``General Schedule'' are substituted 
for ``compensation schedules fixed by this chapter'' since the General 
Schedule is now the only compensation schedule in that chapter. The word 
``scheduled'' is omitted since section 603 of the Act of Oct. 11, 1962, 
Pub. L. 87-793, 76 Stat. 847, eliminated the necessity of referring to 
rates as scheduled or longevity.
    In subsection (a)(B), the words ``except a hearing examiner 
appointed under section 3105 of this title'' are added on authority of 
the third sentence of former section 1010 and the fifth sentence of 
former section 1011, which are carried into sections 5362 and 559, 
respectively, and of section 1106(a) of the Act of Oct. 28, 1949, ch. 
782, 63 Stat. 972.
    Title VII (sections 701-705) of the Act of Oct. 28, 1949, ch. 782, 
63 Stat. 967-969, as amended by the following Acts is omitted from the 
derivation and repealed (see Table II) as superseded by the Act of Oct. 
11, 1962, Pub. L. 87-793, Sec. 603, 76 Stat. 847, which is carried into 
this section and section 5336:
        June 28, 1950, ch. 382, Sec. 2, 64 Stat. 262.
        Sept. 30, 1950, ch. 1123, Secs. 9, 10, 64 Stat. 1100.
        Oct. 24, 1951, ch. 554, Sec. 1(e), 65 Stat. 613.
        Sept. 1, 1954, ch. 1208, Secs. 102(a), 103(a), 112 (less 
    applicability to Sec. 802(b)), 305(a), 68 Stat. 1105, 1108, 1113.
        June 28, 1955, ch. 189, Sec. 2(e), 69 Stat. 175.
    Standard changes are made to conform with the definitions applicable 
and the style of this title as outlined in the preface to the report.

                                1967 Act
------------------------------------------------------------------------
                                                    Source (Statutes at
 Section of title 5       Source (U.S. Code)               Large)
------------------------------------------------------------------------
5335(c)............  5 App.: 1121(c).              Oct. 29, 1965, Pub.
                                                    L. 89-301, Sec.  3,
                                                    79 Stat. 1112.
------------------------------------------------------------------------

    The word ``officer'' is omitted as included in ``employee'', and the 
word ``agency'' is substituted for ``department'' to conform to the 
definition in 5 U.S.C. 5331.


                               Amendments

    1993--Subsec. (e). Pub. L. 103-89, Sec. 3(b)(1)(H)(i), struck out 
``covered by the performance management and recognition system 
established under chapter 54 of this title, or,'' after ``individual''.
    Subsecs. (f), (g). Pub. L. 103-89, Sec. 3(b)(1)(H)(ii), redesignated 
subsec. (g) as (f) and struck out former subsec. (f) which read as 
follows: ``Notwithstanding subsection (b) or (e) of this section, an 
increase in pay granted under section 5404 of this title is an 
equivalent increase in pay within the meaning of subsection (a) of this 
section and shall be taken into account in the case of any employee who, 
before becoming subject to this section, was granted such an increase 
while covered by the performance management and recognition system 
established under chapter 54 of this title.''
    1990--Subsec. (a)(B). Pub. L. 101-509 struck out ``, except an 
administrative law judge appointed under section 3105 of this title,'' 
after ``work of the employee''.
    Subsec. (g). Pub. L. 101-508 added subsec. (g).
    1984--Subsec. (e). Pub. L. 98-615, Sec. 204(a)(1), substituted ``the 
performance management and recognition system established under chapter 
54'' for ``the merit pay system established under section 5402''.
    Subsec. (f). Pub. L. 98-615, Sec. 203, added subsec. (f).
    1979--Subsec. (a)(3)(B). Pub. L. 96-54 substituted ``an 
administrative law judge'' for ``a administrative law judge''.
    1978--Subsec. (a). Pub. L. 95-251 substituted ``administrative law 
judge'' for ``hearing examiner''.
    Subsec. (b). Pub. L. 95-454, Sec. 906(a)(2), substituted ``Office of 
Personnel Management'' for ``Civil Service Commission''.
    Subsec. (c). Pub. L. 95-454, Sec. 906(a)(8), substituted references 
to Office of Personnel Management and Merit Systems Protection Board and 
Office and Board, respectively, for references to Civil Service 
Commission wherever appearing in text.
    Subsec. (e). Pub. L. 95-454, Sec. 503(g), inserted reference to 
merit pay system established under section 5402 of this title.


                    Effective Date of 1993 Amendment

    Amendment by Pub. L. 103-89 effective Nov. 1, 1993, see section 3(c) 
of Pub. L. 103-89, set out as a note under section 3372 of this title.


                    Effective Date of 1990 Amendments

    Amendment by Pub. L. 101-509 effective on such date as the President 
shall determine, but not earlier than 90 days, and not later than 180 
days, after Nov. 5, 1990, see section 529 [title III, Sec. 305] of Pub. 
L. 101-509, set out as a note under section 5301 of this title.
    Amendment by Pub. L. 101-508 applicable with respect to any 
individual who, on or after Jan. 1, 1987, moves from employment in 
nonappropriated fund instrumentality of Department of Defense or Coast 
Guard, that is described in section 2105(c) of this title, to employment 
in Department or Coast Guard, that is not described in section 2105(c), 
or who moves from employment in Department or Coast Guard, that is not 
described in section 2105(c), to employment in nonappropriated fund 
instrumentality of Department or Coast Guard, that is described in 
section 2105(c), see section 7202(m)(1) of Pub. L. 101-508, set out as a 
note under section 2105 of this title.


                    Effective Date of 1984 Amendment

    Section 205 of Pub. L. 98-615 provided that amendment by Pub. L. 98-
615 was effective Oct. 1, 1984, and applicable with respect to pay 
periods commencing on or after that date, with certain exceptions and 
qualifications.


                    Effective Date of 1979 Amendment

    Amendment by Pub. L. 96-54 effective July 12, 1979, see section 2(b) 
of Pub. L. 96-54, set out as a note under section 305 of this title.


                    Effective Date of 1978 Amendment

    Section 504(a) of Pub. L. 95-454 provided that amendment by section 
503(g) of Pub. L. 95-454 was effective on first day of first applicable 
pay period which began on or after Oct. 1, 1981, except it could take 
effect with respect to any category or categories of positions before 
such day to extent prescribed by Director of Office of Personnel 
Management.
    Amendment by section 906(a)(2), (8) of Pub. L. 95-454 effective 90 
days after Oct. 13, 1978, see section 907 of Pub. L. 95-454, set out as 
a note under section 1101 of this title.


            Pay Increases Deemed Equivalent Increases in Pay

    Section 5(a) of Pub. L. 103-89 provided that: ``Notwithstanding the 
amendment made by section 3(b)(1)(H)(ii) [amending this section], an 
increase in pay granted under section 5404 of title 5, United States 
Code, before November 1, 1993, shall be deemed to be an equivalent 
increase in pay within the meaning of section 5335(a) of such title.''

                  Section Referred to in Other Sections

    This section is referred to in sections 559, 1305, 5303, 5305, 5336, 
9508 of this title; title 13 section 24.
