New Appointment

The rate of basic pay will be set at the minimum rate of the grade unless the provisions of 5 CFR 531.203(b) have been met for superior qualifications appointments. Contact your servicing personnel office (SPO) for more information on these types of appointments.

Reinstatement,
Reassignment, or Transfer

Except as provided below, the rate of basic pay is set using highest previous rate (HPR) or the maximum rate for the grade if HPR exceeds the maximum payable for the grade.

Voluntary Demotions

An employee’s pay may be set using HPR but may not exceed the top step of the lower grade. In deciding whether or not to grant HPR, management should consider: 

• Whether an employee who is demoted at his/her own request with prospects of repromotion back to his/her former grade (e.g., to acquire competitive status, to meet qualifications requirements) will, when repromoted, receive a windfall. In other words, he/she would be placed in a higher step then would have occurred had the demotion not taken place. (In such instances, pay is set at the rate necessary to prevent a windfall);

• The precedent being set or any existing precedent; and

• The future dollar costs to the agency on repromotion to a higher grade.

Demotion to 
Enter a Career 
Enhancement 
Program

Employees who voluntarily take a downgrade to enter a Career Enhancement Program or similar upward mobility training program in Marketing and Regulatory Programs are entitled to HPR. Employees will be entitled to pay retention if their existing rate of pay exceeds the top step of the grade to which they are being demoted.

Demotion with
Grade or Pay
Retention

Pay rates for employees placed in a lower grade due to reduction-in-force or reclassification will be set following grade and pay retention regulations, if they otherwise qualify for these benefits.

Demotion for Cause

An employee demoted for either disciplinary or performance reasons receives the minimum rate of basic pay for the grade to which demoted. This grade and rate will be used to determine any future HPR decisions. 

Supervisory/ Managerial Probationary Period Demotion

HPR will not be considered when setting pay due to a failure to satisfactorily complete a supervisory or managerial probationary period. The rate of pay is set based on the pay rate received before entering the supervisory or managerial position.

Demotion from
a Temporary
Promotion

If the employee has occupied the position for at least 1 calendar year, his/her rate of pay is based on the rate of pay received during the temporary promotion. If the temporary promotion is for less than 1 calendar year, the rate of pay is based on what the employee would have received had the temporary promotion not occurred.

GM Employees Returning to GS

GM employees may not receive HPR when GM status is lost due to disciplinary or performance-related reasons, the expiration or termination of a temporary promotion, or a voluntary downgrade at the employee's request (Title 5, CFR 531.204[e][f]).

Seasonal Positions in Cotton Programs, AMS 

Seasonal positions filled initially under Schedule A appointments in the excepted service (under 5 CFR 213.3113[f][2]) in Cotton Programs of AMS will have pay set at step 1 of the grade. This is in accordance with AMS memorandum, "Request for Waivers - Use of Highest Previous Rate," Miller/Moore, 4/21/86.

Determining HPR Chart

Use the following chart in determining HPR: 

1 Except upon permanent placement in a position at the same or higher grade.

2 Unless due to supervisor qualifications, pay is to be set at a higher rate. Superior qualifications must meet provisions of 5 CFR 531.203(b).

3 Objectionable Use Rule: In order to prevent a windfall, the employee's salary is set at the rate necessary to place the employee, when repromoted, at the rate which would have been attained had the demotion not occured. 

4 Employee is entitled to HPR or pay retention if his/her existing rate of pay exceeds the top step of the grade to which he/she is being demoted. The HPR or pay retention is chosen based on whichever protects the employee's existing rate of pay. 

5 Employee is placed back into the step of the grade where he/she would have been had he/she not been promoted.