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. 4 - ry STAN ARO FORM NO Gf { ( ' Office Memorandum + vnxrep states GOVERNMENT TO : MR, TOLSON pate: July 15, 1958 - . c lac rRoM : J, P, MOHR ° /- . / : en fy A he Parsons ___ , Rosen —.....__ Toon Trotter ; \ i ae iar i SUBJECT: BIWEEKLY SALARY CHECKS Ke DIRECTOR AND ASSOCIATE DIRECTOR if Playton Ue ; de Holloman —— as dy Public Law 85-462, approved 6/20/58, providing increases in pily® Sullhan for all employees paid under the Classification Act contained a new pay compu- tation formula for obtaining the hourly, daily, weekly, biweekly, and other rates for all employees in the Federal Government, except the heads of agencies, elected officials, Federal Judges, and certain other specific employees. The new formula | provides for first computing the hourly pay by dividing the annual salary rate by 2080 hours (260 pay days in year multiplied by & hours) and multiplying the hourly rate thus obtained by 8, 40, or 80 as the case may be to get the daily, weekly, or biweekly pay. In addition, any fraction of a cent in any computation is converted to a whole cent. The old formula provided for obtaining the biweekly rate by dividing the annual rate by 26 pay periods; the biweekly rate divided by 80, adjusted to the nearest cent provided the hourly rate, and the daily rate was obtained by multiplying the hourly rate by 8. tions. however, i Thea nau ula eimnilifise many pa y rn mpu ta ane new ior mug simplifies aseeeid F wi fw many instances it results in employees rece iving in in a year slightly more than the annual rates of pay. This matter has been discuss nd with officials in the office of the General Counsel, GAO, who advised that such higher paymenta are legal Tha neu nav formula wae rarnmmoendead tn Congreaas he that office. gai Ciel = bead Baw 8S TF re BUR BAAR FP RE A RESET ES Serer ee OS eee we with the full knowledge it would result in such higher payments in some instances; estimated total yearly payments in excess of annual rates for entire Government approximately $4, 500, 000; GAO felt additional cost would be more than offset by gavines through simplification of pay computations: bulk of exressa Payments ee ee eR hee te RR RE Ree ee bcactatiendtaatiethanalantl | we Sa eS caused by the conversion of fractional cents to whole cents. For information purposes the effect of the new pay computation ula may be seen in the biweekly salary payments for the Director and the mu Associate Director under the old and new formulaes, as shown in attached tabulations. RECOMMENDAMION: 5b - BD ead fr fF as None. Submitted only for informational purposes. q ] \ Bnejosure J / ~ “