An Act to extend to employees subject to the Classification Act of 1949 the benefits of salary increases in connection with the protection of basic compensation rates from the effects of downgrading actions, to provide salary protection for postal field service employees in certain cases of reduction in salary standing, and for other purposes
PL 87-270 (H.R.7043), enacted 09/21/1961

75 S T A T . ] 
PUBLIC LAW 87-270-SEPT. 21, 1961 
567 
Public Law 87-270 
AN ACT 
September ;>1. 1961 
To extend to employees subject to the Olassiflcation Act of 1949 the benefits — [ H . R. 7043] 
of salary increases in connection with the protection of basic compensation 
rates from the effects of downgrading actions, to provide salary protection 
for postal field service employees in certain cases of reduction in salary 
standing, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemhled. 
F e d e r a l e m-
' 
ployees. 
TITLE I—SALAKY PROTECTION FOR EMPLOYEES 
"''"• ^'"^ "'" *' 
SUBJECT TO CLASSIFICATION ACT OF 1949 
AMENDMENTS TO CLASSIFICATION ACT OP 1949 
SEC. 101. (a) Section 507 of the Classification Act of 1949, as 
amended (72 Stat. 830; Public Law 85-737; 5 U.S.C. 1107), is 
amended— 
(1) by inserting "(including each increase provided bj^ law in 
such rate of basic compensation)" immediately following "to 
receive the rate of basic compensation to which he was entitled 
immediately prior to such reduction in grade" in subsections (a) 
and (b) of such section; 
(2) by striking out "and" in paragraph (3) of such sub-
section ( a ) ; 
(3) by inserting "and, with respect to each temporary promo-
tion occurring on or after the date of enactment of this amend-
ment, is not a condition of his temporary promotion to a higher 
grade" immediately before the semicolon at the end of such 
paragraph (3); and 
(4) by inserting "(including each increase provided by law in 
such rate)" immediately following "July 1, 1954", wherever 
occuring in subsection (c) of such section, and immediately before 
the period at the end of such subsection. 
(b)(1) The amendments made by subparagraphs (1) and (4) of 
Effective dates. 
subsection (a) of this section shall become effective as of August 23, 
1958. 
(2) The amendments made by subparagraphs (2) and (3) of such 
subsection (a) shall become effective on the date of enactment of this 
Act. 
RETROACTIVE COMPENSATION; VALIDATION OF PAYMENTS; RELATION OF 
PAYMENTS TO CIVIL SERVICE RETIREMENT ACT AND FEDERAL EMPLOYEES 
GROUP LIFE INSURANCE ACT OF 1 9 5 4 
SEC. 102. (a) (1) Except as otherwise provided in paragraph (2) 
of this subsection, payments of increases provided by law in rates of 
basic compensation are hereby authorized, and shall be made, in 
accordance with the amendments made by subparagraphs (1) and (4) 
of subsection (a) of section 101 of this title to section 507 of the 
Classification Act of 1949, as amended (5 U.S.C. 1107), and in accord-
ance with other applicable provisions of such section 507, as amended, 
for services to which the provisions of such section 507, as amended, 
apply and which were rendered in the period beginning on the first 
day of the first pay period commencing after August 23, 1958, and 
ending at the expiration of two years immediately following the first 
day of such first pay period, with respect to each individual who, on 
the date of enactment of this Act, is on any employment roll of the 
568 
PUBLIC LAW 87-270-SEPT. 21, 1961 
[75 STAT. 
Federal Government or of the municipal government of the District 
of Columbia, as follows— 
(A) to such individual for such services so rendered by him, 
if, on such date of enactment, he (i) is on any such employment 
roll, (ii) is in the service of the Armed Forces of the United 
States, or (iii) is retired under any retirement law or retirement 
system for civilian officers and employees in or under the Federal 
Government or the municipal government of the District of 
Columbia; or 
(B) to the survivor or survivors, in accordance with the Act 
of August 3, 1950 (Public Law 636, Eighty-first Congress), as 
64 Stat. 395. 
amcudcd (5 U.S.C. 61f-61k), of any such individual (for such 
services so rendered by him) who has died prior to such date of 
enactment, if, at the time of his death, such individual was (i) on 
any such employment roll, (ii) in the service of the Armed Forces 
of the United States, or (iii) retired under any such retirement 
law or retirement system. 
(2) Payments of increases provided by law in rates of basic com-
pensation which were made for services described in paragraph (1) 
of this subsection and rendered in the period described in such 
paragraph, and which would have been authorized under the amend-
ments made by subparagraphs (1) and (4) of subsection (a) of section 
101 of this title if such amendments had been in effect at the time 
such services were rendered in such period, are hereby validated to 
the same extent as if such amendments had been in effect during 
such period. 
(b) (1) Payments of increases described in paragraph (1) of 
subsection (a) of this section shall not be considered as basic salary 
for the purposes of the Civil Service Retirement Act (5 U.S.C. 2251-
70 Stat. 743. 
2267) iu the case of any retired or deceased individual described in 
subparagraph (A) or (B) of such paragraph (1). 
(2) Payments of increases validated by paragraph (2) of such 
subsection (a) shall be considered as basic salary for purposes of such 
Act. 
(c) For the purposes of this section, service in the Armed Forces of 
the United States, in the case of an individual relieved from training 
and service in the Armed Forces of the United States or discharged 
from hospitalization following such training and service, shall include 
the period provided by law for the mandatory restoration of such 
individual to a position in or under the Federal Government or the 
municipal government of the District of Columbia. 
Group life in- 
(d) (1) lucreases in rates of basic compensation authorized to be 
paid by paragraph (1) of subsection (a) of this section shall not be 
held or considered to be annual compensation for the purposes of the 
Federal Employees' Group Life Insurance Act of 1954, as amended 
68 Stat. 736. 
(5 U.S.C. 2091-2103). 
Effective date. 
(2) Each chauge in rate of basic compensation made in the period 
described in paragraph (1) of subsection (a) of this section by reason 
of any payment validated by paragraph (2) of such subsection shall 
be held and considered to be effective for group life insurance pur-
poses under the Federal Employees Group Life Insurance Act of 
1964, as amended (5 U.S.C. 2091-2103), as of the first day of the first 
pay period following the pay period in which the payroll change was 
approved with respect to sucn individual. 
75 S T A T . ] 
PUBLIC LAW 87-270-SEPT. 21, 1961 
569 
SAVINGS PROVISIONS 
Bur e au of t h e 
Census. 
SEC. 103. (a) Nothing in this title or in the amendments made by 
this title shall be held or considered to modify, supersede, or otherwise 
affect the application and operation of section 24 of title 13 of the 
United States Code, which contains special provisions with respect to 
74 stat. 911. 
the assignment, promotion, appointment, detail, and other utilization 
of nontemporary employees of the Bureau of the Census in the De-
partment of Commerce in temporary positions in connection with any 
census. 
(b) Nothing in this title or in the amendments made by this title 
Basic co^pensa-
shall be held or considered to modify, change, or otherwise affect any '°"' ^^^^ 
increase in a saved rate of basic compensation paid in accordance with 
the Federal Employees Salary Increase Act of 1960 (part B of title I 
of the Act of July 1,1960; 74 Stat. 298; Public Law 86-568). 
s use 11.13 note. 
TITLE II—SALARY PROTECTION FOR POSTAL 
F I E L D 
SERVICE EMPLOYEES 
PROTECTION o r SALARY STANDING OF POSTAL FIELD SERVICE EMPLOYEES 
SEC. 201. That part of chapter 45 of title 39 of the United States 
Postal riei a 
Code under the heading "Salary Steps and Promotions" is amended 11"^^''^ empioy-
by adding at the end thereof the following new section: 
7 4 s t a t. 6 4 s -
"§ 3560. Salary protection 
^^\l u s c 3 5 51-
"(a) As used in this section, the term 'salary standing' means— 
"Saiary stand-
"(1) basic salary and salary level, with respect to the Postal 
^' 
Field Service Schedule (excluding salary levels PES 17, 18, 19, 
and 20), 
"(2) salary for the particular route (including additional com-
pensation for forty hours and under for serving heavily patron-
ized routes), with respect to the Rural Carrier Schedule, and 
"(3) gross receipts category, with respect to the Fourth-Class 
Office Schedule. 
" (b) Subject to the provisions of subsection (c) of this section, each 
employee— 
"(1) who at any time on or after July 1,1961, is or was reduced 
in salary standing; 
"(2) who, on the effective date of such reduction in salary 
standing, holds or held a career appointment or a probational 
appointment in the postal field service; 
"(3) whose reduction in salary standing is not or was not 
caused by a demotion for personal cause, is not or was not at 
his own request, is not or was not a condition of his temporary 
promotion or temporary assignment to a higher salary standing, 
IS not or was not a condition of his temporary appointment, and 
is not or was not effected in a reduction in force due to lack of 
funds or curtailment of work; 
"(4) who, for two continuous years immediately prior to such 
reduction in salary standing, served in the postal field service 
with the same salary standing or with the same and higher salary 
standing; and 
"(5) whose performance of work at all times during such 
period of two years is or was satisfactory; 
shall be entitled, as of the effective date of such reduction in salary 
standing or as 01 the first day of the first pay period which begins on 
or after the date of enactment of this section, whichever is later, unless 
or until he is entitled to receive basic salary at a higher rate by reason 
64207 0-62—39 
570 
PUBLIC LAW 87-271-SEPT. 21, 1961 
[75 ST A T , 
Regulat o r y a u-
thority. 
74 Stat. 651. 
39 u s e 3559. 
39 u s e 3544. 
"eurtailment o f 
work,'* 
Exclusions. 
of the operation of this section, or until the expiration of a period 
of two years immediately following the effective date of such reduc-
tion in salary standing or immediately following the first day of such 
first pay period, as applicable, to receive the rate of basic salary to 
which he was entitled immediately prior to such reduction in salary 
standing (including each increase provided by law in such rate of 
basic salary) so long as he continues in the postal field service without 
any break in service of one workday or more and is not demoted or 
reassigned for personal cause, at his own request, or in a reduction in 
force due to lack of funds or curtailment of work. 
"(c) The rate of basic salary to which such employee is entitled 
under subsection (b) of this section with respect to each reduction in 
salary standing to which this section applies shall be the lesser of the 
following: 
"(A) the amount of the existing rate of basic salary of the 
employee immediately prior to the reduction in salary standing 
(including each increase provided by law in such rate); or 
"(B) the amount of the rate of the salary level or salary range 
(including each increase provided by law in such rate) to which 
the employee is reduced, increased by 25 per centum. 
"(d) The Postmaster General is authorized to issue regulations to 
carry out the purposes of this section. 
"(e)(1) For the purposes of section 3559(a), the existing basic 
salary shall be the basic salary which the employee would have re-
ceived except for the provisions of this section. 
"(2) For the purposes of section 3544(h), the basic compensation 
earned shall be the basic compensation which the employee would 
have received except for the provisions of this section. 
"(f) For the purposes of this section, the term 'curtailment of 
work' does not include— 
" (1) reductions in class or gross receipts category of any post 
office, or 
"(2) reductions in route mileage for rural carriers." 
3 9 u s e 
n o t e 
prec. 3501. 
CONFORMING 
AMENDMENT 
SEC. 202. That part of the table of contents of chapter 45 of title 
39 of the United States Code under the heading "SALARY STEPS AND 
PROMOTIONS" is amended by inserting 
"3560. Salary protection." 
immediately below 
"3559. Promotions.". 
Approved September 21, 1961. 
Public Law 87-271 
A N 
A C T 
September 21, 1961 
[H. R. 6974] 
rp(j amend section 607(b) of the Merchant Marine Act, 1936, as amended. 
Merchant Marine 
Act, 1936, amend-
ment. 
Reserve 
f u n d s 
for research. 
66 Stat. 764. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States 
of America 
in Congress assembled^ That the last 
sentence of section 607(b) of the Merchant Marine Act, 1936 (46 
U.S.C. 1177(b)) is amended by inserting before the period at the end 
thereof a comma and the following: "and may also pay from such 
fund, with such consent and upon terms and conditions which the 
Secretary of Commerce shall by regulation prescribe to give priority 
to the foregoing purposes of the fund (and with respect to any 
transfer of funds from the special reserve fund, to give priority to