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• Pay

Salary Adjustments & Back Pay

Pay Adjustments

• Adjustments are processed as the result of?
• Automatic/System Generated Adjustments
• Manual Adjustments

Back pay

• Interest
• Interest Rates Used for Computation of Backpay
• Statute of Limitations

Pay Adjustments 
Adjustments are processed as the result of?
 

• Corrected or late personnel actions, i.e. Wage Grade Increases promotions, etc.
• Incorrect payment of Time and Attendance Reports
• Improper deductions for FEHB, FEGLI, TSP, etc.
• Improper tax withholdings for current year
• Employee initiated claim for back pay

Automatic/System Generated Adjustments

• Automated payroll system has capability to retroactively adjust for up to 26 pay periods or to date of last personnel action
• Additional money included with regular salary
• Earnings statement updated to reflect adjustment
• If indebtedness results, a bill is generated
   

Manual Adjustments

• Initiated when system does not automatically adjust
• Leave and Compensation Team submits a Payroll Action Request, (AD 343), to the National Finance Center (NFC)
• Employee informed of manual adjustment by receiving a copy of AD 343 which is sent to your home
• Allow 6-8 weeks processing time
• Additional money generally included with regular salary
• Earnings statement updated to reflect adjustment
• If indebtedness results, a bill is generated by NFC

Back pay 
Interest

• Entitled to interest when pay is denied for more than 30 days
• Interest begins to accrue on the effective date of withdrawal or denial of pay
• Interest is shown on the Leave and Earnings Statement as Transaction Code 03

Statute of Limitations

• All claims against the United States are subject to a six year statute of limitations
• Claims under Fair Labor Standards Act (FLSA) are subject to a two year statute of limitations
• Burden of establishing compliance rests with claimant
• Claimant should file claim with agency out of whose activities the claim arose. For example: if your issue involves the Forest Service, but you are currently an APHIS employee, you must file the claim with the Forest Service.