Highest Previous Rate in Basic Pay Setting

Purpose: 

This Order provides the agency’s policies for consideration of a previous rate of U.S. government pay during current pay setting. The previous rate of government pay is called a “highest previous rate” and this authority is often abbreviated in the vernacular as “HPR pay setting” or the “HPR authority.” This authority is under the General Schedule and used for white collar positions. This Order does not address similar authorities that exist within non-GS pay setting and classification authorities (Federal Wage System, etc.).

Background: 

This Order is necessary because it describes how to properly consider previous rates of government pay during current pay setting. This authority is used most commonly to support job candidates who have been selected for career reinstatement following a period of non-Government service. In some circumstances it is used for demotions (i.e., a change to a lower-graded position), however, its use in this circumstance should be exercised with caution, as explained in this Order.

This version of the Order continues to implement Presidential Executive Order (E.O.) 14151, Ending Radical and Wasteful Government DEI Programs and Preferencing, 90 FR 8339 (January 29, 2025) as well as E.O. 14148, Initial Rescissions of Harmful Executive Orders and Actions, 90 FR 8237 (January 28, 2025). Both of these executive orders rescinded the prior E.O. 14035, Diversity, Equity, Inclusion, and Accessibility in the Federal Workforce, 86 FR 34593 (June 25, 2021).

The civil service regulations that cover the highest previous rate policy government-wide are found codified within 5 C.F.R. §§ 531.221 - 223. However, this Order does not apply the regulatory changes promulgated within 89 FR 5754, January 30, 2024, Advancing Pay Equity in Governmentwide Pay Systems, due to superseding E.O.’s 14148 and 14151, mentioned above.

Applicability: 

This Order applies to all job candidates and current GSA employees selected for, or encumbering, positions classified and paid under the General Schedule. The following are exceptions:

1. The Office of Inspector General (OIG), given its independence under the Inspector General Reform Act of 2008 (5 U.S.C. §§ 401-424).

Cancellation: 

This version of the Order cancels the prior version, HRM 9552.1B, Maximum Payable Rate Rule in Basic Pay Setting, March 11, 2025.

Summary of Changes:

1. This version of the Order changes the title of the Order, to better reflect the vernacular term for this authority most commonly encountered in management and human resources contexts.
2. This version of the Order eliminates the role of the Chief Financial Officer in approving use of this authority.
3. This version of the Order permits the Deputy Chief Human Capital Officer to function as the final approving authority.

Roles and Responsibilities:

1. Human Resources Specialists are responsible for working with the job candidate and the selecting official to facilitate the consideration and approval of using a highest previous rate in basic pay setting.
2. The selecting official is responsible for obtaining management and budget approval from the appropriate executive in the Office of the Administrator or Head of Service or Staff Office.
3. The Deputy Chief Human Capital Officer is the final approving authority for HPR pay setting.
4. As described within Order ADM 5450.39, GSA Delegations Manual, Executives in the Office of the Administrator and Heads of Services and Staff Offices are responsible for certifying that using the HPR authority represents an appropriate approach for workforce administration.