Calculations
 
Statutory Increase (GS, FO, FP, ALJ and BCA employees)
 

This claim category involves those Federal employees who retired, separated, or died during the specific six-year period from 1993 to 1999 with unused annual leave in their account, for which they were not paid properly in the following factual situation:

An annual pay increase went into effect during the period of the former employee’s unused annual leave (projecting forward from the date of retirement, separation, or death the number of days of unused annual leave), BUT the lump-sum payment, or a subsequent supplemental payment, did not include the pay increase that the employee would have earned if he or she had remained a Federal employee for the period of their unused annual leave instead of retiring, separating (or dying) when they did, or the employee did not receive a supplemental payment for the additional pay increase after the statutory increase went into effect.

Because there were more than 80,000 potential Class Members, the parties recognized early on that calculating each person’s award individually would be impractical. Instead, Class Members were placed into groups based on pay plan, grade, separation type and geographic area. Calculations were then performed by the Office of Personnel Management to find the average underpayment for each group, and that average was applied to each Class Member within the group.

The following is an example calculation, exclusive of interest:


General Schedule Employees
Grades 1 through 9
Separated in the continental United States

Year

Weighted Average Salary

Average Net Statutory Increase

Amount of Adjustment

1994

$23,126

3.95%

$913.48

1995

$23,956

3.08%

$737.84

1996

$24,797

2.49%

$617.45

1997

$25,773

3.09%

$796.39

1998

$26,826

2.84%

$761.86

1999

$27,634

3.64%

$1,005.88

Average Net Increase Amount $805
(Sum of “Amount of Adjustment” /6 years)
Average Hourly Increase $0.39
(Net Increase/2,080 hours)
Average Annual Leave Due 80 hours
Total Back Pay Awarded $31.20
(Hourly Increase x Annual Leave Due)

In addition to the back pay award, each qualified Class Members received interest of approximately 40% of the compound interest they would have received from the mid-year of the year of their retirement, separation, or death to June 30, 2005.

Due to the unexpectedly high rate of response, there were many more claim forms filed than anticipated. For this reason, the balance of the Settlement Fund was insufficient to fully pay all awards. After much consultation, it was decided that applying a pro rata percentage would be the most fair to the Class as a whole, as it would allow many more people to receive payment. Accordingly, a pro rata calculation was applied to each award.

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Statutory Increase (SES and SFS employees)

This claim category involves those Federal employees who retired, separated, or died during the specific six-year period from 1993 to 1999 with unused annual leave in their account, for which they were not paid properly in the following factual situation:

An annual pay increase went into effect during the period of the former employee’s unused annual leave (projecting forward from the date of retirement, separation, or death the number of days of unused annual leave), BUT the lump-sum payment, or a subsequent supplemental payment, did not include the pay increase that the employee would have earned if he or she had remained a Federal employee for the period of their unused annual leave instead of retiring, separating (or dying) when they did, or the employee did not receive a supplemental payment for the additional pay increase after the statutory increase went into effect.

Because there were more than 80,000 potential Class Members, the parties recognized early on that calculating each person’s award individually would be impractical. Instead, Class Members were placed into groups based on pay plan, geographic area, range of unused leave hours and separation date in relation to that year Executive Order granting the statutory increase. Calculations were then performed by the Office of Personnel Management to find the average underpayment for each group, and that average was applied to each Class Member within the group.

The calculations for this group fall into two main groups, those people who separated prior to the President’s Executive Order granting a statutory increase and those who separated after it.

The following is an example calculation for Class Members who separated AFTER the President’s Executive Order:

     Year

Weighted Average Salary

    Avg Net Increase

Amount of Adjustment

1996

$113,170

2.50%

$2,829.25

Average Hourly Increase (based on 2,080 hours)

$1.36

Group

Annual Leave Balance

Settlement Hours

Total Award

I

50 to 250

150

$204

II

251 to 500

375

$510

III

501 to 750

625

$850

IV

751 to 1000

875

$1,190

V

1001 to 1250

1125

$1,530

VI

1251 to 1500

1375

$1,870

VII

1501 to 1750

1625

$2,210

VIII

1751 to 2000

1875

$2,550

So if, for example, you retired from Federal service as a member of the Senior Executive Service between the time the President’s Executive Order announcing the 1996 pay adjustment was issued and the beginning of the first full pay period of 1996, and you had between 501 and 750 hours of unused Annual Leave, your back pay award would be $850, exclusive of interest.

In addition to the back pay award, each qualified Class Member received interest of approximately 40% of the compound interest they would have received from the mid-year of the year of their retirement, separation, or death to June 30, 2005.

The following is an example calculation for Class Members who separated BEFORE the President’s Executive Order:
Back pay calculations for SFS members who separated in 1995 (in the continental United States) prior to the President's E.O. authorizing the 1996 pay adjustment
Employee Annual Leave Balance

 

Ranges

Used

Jan

Feb

Mar

Apr

May

June

July

50 to 250

150

$0

$0

$0

$0

$0

$0

$0

251 to 500

375

$0

$0

$0

$0

$0

$0

$0

501 to 750

625

$0

$0

$0

$0

$0

$0

$0

751 to 1000

875

$0

$0

$0

$0

$0

$0

$0

1001 to 1250

1125

$0

$0

$0

$0

$0

$0

$175

1251 to 1500

1375

$0

$0

$0

$0

$42

$279

$518

1501 to 1750

1625

$0

$0

$0

$147

$385

$622

$860

1751 to 2000

1875

$0

$12

$251

$489

$727

$964

$1,203

Employee Annual Leave Balance

 

Ranges

Used

Aug

Sep

Oct

Nov

Dec

50 to 250

150

$0

$0

$0

$0

$32

251 to 500

375

$0

$0

$0

$101

$340

501 to 750

625

$0

$0

$206

$444

$682

751 to 1000

875

$71

$310

$548

$786

$1,025

1001 to 1250

1125

$414

$652

$891

$1,129

$1,367

1251 to 1500

1375

$756

$995

$1,233

$1,471

$1,710

1501 to 1750

1625

$1,099

$1,337

$1,576

$1,814

$2,052

1751 to 2000

1875

$1,441

$1,680

$1,918

$2,156

$2,395

So if, for example, you retired from Federal service as a member of the Senior Foreign Service in September 1995, after the President’s Executive Order announcing the 1995 pay adjustment took effect, but before the announcement of the 1996 pay adjustment, and y