An Act to adjust postal rates, and for other purposes
PL 87-793 (H.R.7927), enacted 10/11/1962

832 
October 11, 1962 
[H. R. 7927] 
Postal Service 
and Federal Em-
ployees Salary 
Act of 1962. 
PUBLIC LAW 87-793-OCT. 11, 1962 
[76 STAT. 
Public Law 87-793 
AN ACT 
To adjust postal rates, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "Postal Service and Federal Employees Salary Act 
of 1962". 
PART I—POSTAL SERVICE 
TITLE I—POSTAL RATES 
FIRST-CLASS MAIL 
74 Stat. 664, 
SEC. 101. SectioH 4253(a) of title 39, United States Code, is 
amended by striking out the words "four" and "three" wherever 
appearing in subsection (a) and inserting in lieu thereof the words 
"five" and "four", respectively. 
74 Stat. 668. 
AIRMAIL 
SEC. 102. (a) Section 4303 of title 39, United States Code, is 
amended— 
(1) by striking out the word "seven" in subsection (a) and 
inserting in lieu thereof the word "eight"; 
(2) by striking out the word "five" in subsection (b) and insert-
ing in lieu thereof the word "six"; 
(3) by increasing each of the rates under the heading "First 
pound over 8 ounces or fraction thereof" in the table in subsection 
(d)(1) by 8 cents; 
(4) by striking out paragraph (2) of subsection (d) and 
inserting in lieu thereof the following: 
" (2) The rate of postage on air mail of the first class weighing 
in excess of eight ounces shall be the rate provided by subsection 
(a) for each ounce not in excess of eight ounces, plus 5 cents 
for each ounce or fraction thereof in excess of eight ounces, but 
in no case less than the rate provided under paragraph (1) for 
air parcels." 
SECOND CLASS W I T H I N COUNTY OF PUBLICATION 
SEC. 103. Subsections (a) and (b) of section 4358 of title 39, United 
States Code, are amended to read as follows: 
"(a) Except as provided in subsection (b), the rate of postage on 
publications admitted as second-class mail when addressed for delivery 
within the county in which they are published and entered is as 
follows: 
"[In cents] 
"Rate per pound 
Minimum charge per piece. 
"Mailed after 
January 6,1963, 
and prior to 
January 1,1966 
Mailed after 
December 31, 
1964 
"(b) The rate of postage on the following publications admitted as 
second-class mail when mailed for delivery, within the county in which 
they are published and entered, by letter carrier at the office of mailing, 
shall be— 
76 STAT. ] 
PUBLIC LAW87-793-OCT. 11, 1962 
833 
"(1) publications issued more frequently than weekly, one 
cent a copy; 
'' (2) publications issued less frequently than weekly— 
"(A) weighing two ounces or less, one cent a copy; 
"(B) weighing more than two ounces, two cents a copy.*' 
SECOND CLASS BEYOND COUNTY OF 
PUBLICATION 
SEC. 104. (a) Section 4359(b) of title 39, United States Code, is 
amended to read as follows: 
"(b) (1) Except as provided by paragraphs (2), (3), and (4), the 
rates of postage on puolications mailed in accordance with subsection 
(a) are as follows: 
"[In cents] 
"Rate per pound: 
Advertising portion: 
Zone 3 . - -
Zone 6-
Zone 7 
Zone 8 
"Mailed after 
January 6, 1963, 
and prior to 
January 1, 1964 
3.4 
4.4 
6.4 
8.4 
10.4 
12.0 
14.0 
2.6 
.6 
Mailed during 
calendar year 
1964 
3.8 
4.8 
6.8 
8.8 
10.8 
12.0 
14.0 
2.7 
.8 
Mailed after 
December 31, 
1964 
4.2 
6.2 
7.2 
9.2 
11.2 
12.0 
14.0 
2.8 
1.0 
"(2) The postage on classroom publications is 60 per centum of 
the postage computed in accordance with paragraph (1). 
"(3) The rates of postage on publications of a qualified nonprofit 
organization mailed in accordance with subsection (a) are as follows: 
74 Stat. 669. 
"[In cents] 
"Mailed after 
January 6, 1963, 
and prior to 
January 1. 1964 
Mailed during 
calendar year 
1964 
Mailed after 
December 31, 
1964 
'Rate per pound 
Minimum charge per piece . 
1.6 
.125 
1.7 
.125 
1.8 
.125 
"(4) In lieu of the minimum charge per piece prescribed by para-
graph (1), the minimum charge per piece to be paid by the following 
publications (other than publications to which paragraph (2) or 
paragraph (3) is applicable) shall be as follows— 
"(A) publications mailing fewer than 5,000 copies per issue 
outside the county of publication—one-half cent per piece; 
"(B) any issue of a publication the advertising portion of 
which does not exceed 5 per centum of the entire issue—.55 of a 
cent per piece when mailed after January 6, 1963, and prior to 
January 1, 1964, .65 of a cent per piece when mailed during cal-
endar year 1964, and .75 of a cent per piece when mailed after 
December 31, 1964." 
(b) Section 4359(e) (2) of title 39, United States Code, is amended 
by striking out "and fraternal," and inserting in lieu thereof the fol-
lowing: "fraternal, and associations of rural electric cooperatives, 
and not to exceed one publication published by the official highway 
agency of a State which meets all of the requirements of section 4354 
and which contains no advertising". 
(c) Section 4360 of title 39, United States Code, is repealed. 
Certain publica-
tions, minimum 
charge. 
Repeal. 
74 Stat. 670. 
78135 0-63—56 
834 
PUBLIC LAW 87-793-OCT. 11, 1962 
[76 STAT. 
74 Stat. 670. 
74 Stat. 673; 
Ante, 
p. 444. 
SECOND-CLASS TRANSIENT MAIL 
SEC. 105. Section 4362 of title 39, United States Code, is amended 
by striking out "two cents" and inserting in lieu thereof "four cents". 
CONTROLLED CIRCULATION PLULICATIONS 
SEC. 106. Section 4422 of title 39, United States Code, is amended 
by striking out "12 cents a pound or fraction thereof" and inserting 
in lieu thereof the following: "12i^ cents a pound or fraction thereof 
when mailed after January 6, 1963, and prior to January 1, 1964, 13 
cents a pound or fraction thereof when mailed during calendar year 
1964, and 131/^ cents a pound or fraction thereof when mailed after 
December 31, 1964". 
THIRD-CLA:SS MAIL 
SEC. 107. Section 4452 of title 39, United States Code, is amended— 
(1) by amending subsections (a), (b), and (c) to read as 
follows: 
"(a) Except as provided in subsection (c) of this section, and sub-
ject to the minimum charge per piece provided in subsection (b) of 
this section, the postage rates on third-class mail are as follows: 
74 Stat. 674. 
Ante, 
p. 445. 
"Type of mailing 
(1) Individual piece 
--
(2) Bulk mailings under subsec. (e) of this section of: 
(A) Books and catalogs of 24 pages or more, 
seeds, cuttings, bulbs, roots, scions 
and plants. 
(B) other matter 
Rate 
Cents 
1 ^ 
12 
18 
Unit 
First 2 ounces or fraction thereof. 
thereof. 
Each pound or fraction thereof. 
Do. 
"(b) Matter mailed in bulk under subsection (e) of this section is 
subject to a minimum charge for each piece of 2% cents when mailed 
subsequent to January 6, 1963 and prior to January 1, 1964, 2% cents 
when mailed during calendar year 1964, and 2% cents when mailed 
after December 31, 1964, except that the minimum charge per piece 
on such matter mailed by qualified nonprofit organizations is li^t cents. 
"(c) The pound rates on matter mailed in bulk under subsection 
(e) by qualified nonprofit organizations are 50 per centum of the 
pound rates provided by subsection (a)." 
(2) by striking out "subsections (a) and (b) of" wherever 
it appears in subsection (d). 
(3) by striking out "$20" and "twenty pounds" in subsection 
(e) and inserting in lieu thereof "$30" and "fifty pounds", respec-
tively, effective January 1, 1963. 
FOURTH-CLASS MAIL 
SEC. 108. Section 4552(b)(5) of title 39, United States Code, re-
lating to size and weight limitations on fourth-class matter mailed 
to or from certain areas, is amended by striking out the words "Terri-
tory of Hawaii" and inserting in lieu thereof the words "States of 
Alaska and Hawaii,". 
SEC. 109. Section 4554 of title 39, United States Code (relating to 
books, films, and similar educational materials), is amended by strik-
ing out that part of subsection (a) which precedes paragraph (1) and 
inserting in lieu thereof the following: 
76 STAT. ] 
PUBLIC LAW 87-793-OCT. 11, 1962 
835 
"(a) Except as provided in subsection (b) of this section, the post-
age rate is 9% cents a pound for the first pound or fraction thereof 
and 5 cents for each additional pound or fraction thereof when mailed 
after January 6, 1963 and prior to January 1, 1964, and 10 cents for 
the first pound or fraction thereof and 5 cents for each additional 
pound or fraction thereof when mailed after December 31, 1963, ex-
cept that the rate now or hereafter prescribed for third- or fourth-
class matter shall apply in every case where such rate is lower than 
the rate prescribed in this subsection on—". 
FEES FOR SECOND-CLASS ENTRY AND REGISTRATION 
SEC. 110. Section 4357 of title 39, United States Code, is amended— 
74 stat. ees. 
(1) by striking out "$25" in subsection (a)(1) and inserting 
in lieu thereof "$30"; 
(2) by striking out "$50" in subsection (a) (2) and inserting 
in lieu thereof "$60"; 
(3) by striking out "$100" in subsection (a) (3) and inserting 
in lieu thereof "$120"; 
(4) by striking out "$10" in the first sentence of subsection (b) 
and inserting in lieu thereof "$15"; 
(5) by striking out the second sentence of subsection (b) and 
inserting in lieu thereof the following: "The fee for each addi-
tional entry is $15, except that if the additional entry is made 
within zones 3 to 8, inclusive (determined from the office of pub-
lication and entry), of the zones established for purposes of 
fourth-class mail, such fee shall be $50."; 
(6) by striking out "$20" in subsection (c) 'and inserting in 
lieuthereof "$25"; and 
(7) by striking out the last sentence in subsection (d). 
PERMIT FEES FOR MAILING WITHOUT STAMPS 
SEC. 111. Section 4052 (b) of title 39, United States Code, is amended 
74 stat. 656. 
by striking out "$10" and inserting in lieu thereof "$15". 
FIXING OF FEES BY POSTMASTER GENERAL 
SEC. 112. Section 507 of title 39, United States Code, is amended by 
74 stat. ssi. 
adding at the end thereof the following: 
" (12) the issuance of a permit for prepayment of postage with-
out stamps. 
"(13) the entry, re-entry, or additional entry of a periodical 
publication as second-class mail. 
"(14) the registry of a news agent. 
Fees prescribed by the Postmaster General under paragraphs (12) 
to (14), inclusive, shall be collected in lieu of the corresponding fees 
established under section 4052(b) or 4357." 
KEYS AND OTHER SMALL ARTICLES 
SEC. 113. Section 4651(b) of title 39, United States Code, is 
74 stat. 676. 
amended by striking out "5 cents" and inserting in lieu thereof "6 
cents". 
METHOD OF DETERMINING GROSS RECEIPTS 
SEC. 114. Section 711 (c) of title 39, United States Code, is amended 
74 stat. 584. 
by striking out "Public Law 85-426" and inserting in lieu thereof 
72 stat. 134. 
"any Act of Congress enacted on or after May 27,1958". 
836 
PUBLICLAW87-793-OCT.il, 1962 
[76 STAT. 
STANDARDS FOR DETERMINATION OF QUALIFICATIONS OF APPLICANTS FOR 
POSITIONS OF POSTMASTER 
SEC. 115. In evaluating the qualifications of applicants for positions 
of postmaster, the United States Civil Service Commission shall give, 
with respect to each applicant, all due and appropriate consideration 
to experience in the postal field service, including seniority, length of 
service, level of difficulty and responsibility of work, attendance, 
awards and commendations, and performance rating. 
TITLE II—POSTAL POLICY 
74 Stat. 599. 
SEC. 201. (a) Scction 2302(c) (4) of title 39, United States Code, 
is amended by striking out "deemed to be attributable to the per-
formance of public services under section 2303(b) of this title" and 
inserting in lieu thereof "determined under section 2303 of this title 
to be attributable to the performance of public services". 
(b) Section 2303(a) of title 39, United States Code, is amended— 
(1) by amending the heading so as to read 
"§ 2303. Identification of public services and costs thereof"; 
(2) by striking out paragraph 1(A) and inserting in lieu 
thereof the following: 
"(A) reduced rates for certain publications as provided by 
Ante, p. 833. 
sectiou 4359 of this title;"; 
(3) by striking out paragraph 1(C) and inserting in lieu 
thereof the following: 
"(C) second class mailings at postage rates as provided by 
Ante, p. 832. 
scctiou 4358 of tliis title;"; and 
(4) by striking out paragraph (2) and inserting in lieu thereof 
the following: 
"(2) 10 per centum of tlie gross cost of the operation of third-
class post offices and the star route system, and 20 per centum of the 
gross cost of the operation of fourth-class post offices and rural 
routes." 
(5) by adding at the end thereof the following new sentence: 
"The terms 'total loss' and 'loss' as used in this section mean the 
amounts by which the total allocated costs incurred by the postal 
establishment in the performance of the public services enumer-
ated in this subsection exceed the total revenues received by the 
postal establishment for the performance of such public services." 
74 Stat. 600. 
(c) Scction 2303(b) of title 39, United States Code, is amended to 
read as follows: 
"(b) The Postmaster General shall report to the Congress, on or 
before February 1 of each year beginning with the year 1983, the 
estimated amount of the losses or costs (or percentage of costs) 
specified in subsection (a) incurred by the postal establishment in 
the then current fiscal year in the performance of the public services 
enumerated in such subsection. The aggregate amount of the losses 
or costs (or percentage of costs) specified in subsection (a), incurred 
by the postal establishment in any fiscal year in the performance of 
such public services, shall be excluded from the total cost of operating 
the postal establishment for purposes of adjustment of postal rates 
and fees, including any adjustment pursuant to the provisions of 
section 207(b) of the Act of February 28, 1925, relating to reforma-
43 Stat. 1067. 
tion of ckssification (39 U.S.C., 1958 ed. 247)." 
76 STAT. ] 
PUBLIC LAW 87-793-OCT. 11, 1962 
837 
(d) The table of contents of chapter 27 of title 39, United States 
Code, is amended by striking out 
"2303. Identification of and appropriations for public services." 
and inserting in lieu thereof: 
'•2303. Identification of public services and costs thereof.". 
TITLE III—MISCELLANEOUS 
ELIGIBILITY OF CERTAIN ORGANIZATIONS FOR SECOND-CLASS 
ENTRY 
SEC. 301. Section 4355(a) of title 39, United States Code, is 
74stat.667. 
amended— 
(1) by inserting after the words "State board of health" in sub-
paragraph (3) a comma and the words "or a State industrial 
development agency"; 
(2) by striking out the period at the end of subparagraph (9) 
and inserting in lieu of such period a semicolon and the word "or"; 
and 
(3) by adding at the end thereof the following new subpara-
graph (10) : 
"(10) published by any public or nonprofit private elementary 
or secondary institution of learning or its administrative or gov-
erning body.". 
EDUCATIONAL 
MATERIALS 
SEC. 302. Section 4554 of title 39, United States Code, is amended— 
Ante, p. 834. 
(1) by striking out paragraph (5) of subsection (a) and in-
serting in lieu thereof the following: 
"(5) sound recordings, including incidental announcements of 
recordings and guides or scripts prepared solely for use with such 
recordings;"; 
(2) by striking out the period at the end of paragraph (6) of 
subsection (a) and inserting in lieu thereof a semicolon; 
(3) by adding at the end of subsection (a) the following: 
"(7) printed educational reference charts, permanently proc-
essed for preservation; and 
"(8) looseleaf pages, and binders therefor, consisting of med-
ical information for distribution to doctors, hospitals, medical 
schools, and medical students." 
(4) by striking out the word "students' " immediately preceding 
the word "notations" in paragraph (1) of subsection (a) and in 
paragraph (2) of subsection (b); 
(5) by inserting after the words "loaned or exchanged" in 
paragraph (1) of subsection (b) the following: "(including 
cooperative processing by libraries)"; 
(6) by striking out: 
"(D) bound volumes of periodicals; 
"(E) phonograph recordings; and" 
in paragraph (2) of subsection (b) and inserting in lieu thereof: 
" ( D ) periodicals, whether bound or unbound; 
"(E) sound recordings; and"; and 
(7) by striking out "and catalog of those items" in subsection 
(c) and inserting in lieu thereof "scientific or mathematical kits, 
instruments, or other devices and catalogs of those items, and 
guides or scripts prepared solely for use with such materials". 
READING AND OTHER MATERIALS FOR BLIND PERSONS 
SEC. 303. Sections 4653 and 4654 of title 39, United States Code, 
74 stat. 677. 
are amended to read as follows: 
838 
PUBLIC LAW 87-793-OCT. 11, 1962 
[76 STAT. 
"§ 4653. Publications for blind persons 
Free postage. 
"(a) The foUowing matter may be mailed free of postage— 
"(1) books, pamphlets, and other reading matter, including 
pages thereof: 
"(A) published (whether prepared by hand, or printed) 
either in raised characters or in sightsaving-size type, or in 
the form of sound recordings, for use of blind persons; 
"(B) in packages not exceeding the weight prescribed by 
the Postmaster General; 
"(C) containing no advertising or other matter whatso-
ever; 
"(D) unsealed; 
"(E) sent— 
" (i) by an institution, agency, publisher, organization, 
or association (including a library or school and includ-
ing organizations or associations of or for blind people), 
not conducted for private profit, as a loan to blind read-
ers, or when returned by the blind reader to the lender; or 
"(ii) to a blind person without cost to the blind per-
son; or 
"(iii) to an institution, agency, publisher, organiza-
tion, or association (including a library or school and 
including organizations or associations of or for blind 
people), not conducted for private profit, to be furnished 
to a blind person without cost to such blind person. 
"(2) magazines, periodicals, 
and 
other 
regularly 
issued 
publications: 
"(A) published (whether prepared by hand, or printed) 
either in raised characters or in sightsaving-size type, or in 
the form of sound recordings, for use of blind persons; 
"(B) containing no advertising; 
"(C) for which no subscription fee is charged. 
Postage rate. 
"(b) There may be mailed at the rate of postage of 1 cent for 
each pound or fraction thereof— 
"(1) books, pamphlets, and other reading matter, including 
pages thereof: 
"(A) published (whether prepared by hand, or printed) 
either in raised characters or in sightsaving-size type, or in 
the form of sound recordings, for use of blind persons; 
"(B) in packages not exceeding the weight prescribed by 
the Postmaster General; 
"(C) containing no advertising or other matter what-
soever ; 
"(D) unsealed; 
"(E) sent— 
"(i) by an institution, agency, publisher, organiza-
tion, or association (including a library or school and 
including organizations or associations of or for blind 
people), not conducted for private profit, on a rental 
Ijasis to blind readers, or when returned by the blind 
reader to such organizations, at a price not greater than 
the cost price thereof; or 
"(ii) to a blind person at a price not greater than 
the cost price thereof; or 
"(iii) to an institution, agency, publisher, organiza-
tion, or association (including a library or school and 
including organizations or associations of or for blind 
people), not conducted for private profit, to be furnished 
76 STAT. ] 
PUBLIC LAW 87-793-OCT. 11, 1962 
839 
to a blind person at a price not greater than the cost 
price thereof. 
"(2) magazines, periodicals, and other regularly issued publi-
cations : 
"(A) published (whether prepared by hand, or printed) 
either in raised characters or in sightsaving-size type, or in 
the form of sound recordings, for use of blind persons; 
"(B) containing no advertising; 
"(C) when furnished by an institution, agency, publisher, 
organization, or association (including a library or school 
and including organizations or associations of or for blind 
people), not conducted for private profit, to a blind person, 
at a price not greater than the cost price thereof. 
"§ 4654. Reproducers, sound recordings, and other materials and 
appliances for the preparation of reading matter for 
blind persons 
"(a) Reproducers, or parts thereof, for sound recordings.for blind 
Government 
persons which are the property of the United States Government may ^o°^"*J' ^
'
"
*
® 
be mailed free of postage when sent for repair, or returned after 
repair— 
"(1) by an organization, institution, public library, or associ-
ation for blind persons, not conducted for private profit; 
"(2) by a blind person to such an agency not conducted for 
private profit; 
"(3) from such an agency to an organization, institution, pub-
lic library, or association for blind persons not conducted for 
private profit; or 
"(4) to a blind person. 
"(b) The Postmaster General may extend the free mailing privi-
lege provided by subsection (a) of this section to reproducers or 
parts thereof for sound recordings for blind persons, braille writers 
and other appliances for blind persons or parts thereof, that are the 
property of— 
" (1) State governments or subdivisions thereof; 
" (2) public libraries; 
"(3) private agencies for the blind not conducted for private 
profit; or 
"(4) blind individuals. 
"(c) The Postmaster General may also permit thp mailing free of 
postage of paper, records, tapes, and other materials for use by the 
recipients for the production (whether by hand or printed) of reading 
matter either in raised characters or sightsaving-size type, or in the 
form of sound recordings, for use of blind persons, where such mate-
rials are the property of— 
" (1) State governments or subdivisions thereof; 
" (2) public libraries; 
"(3) private agencies for the blind not conducted for private 
profit; or 
"(4) blind individuals." 
REPEALS AND TECHNICAL 
AMENDMENTS 
SEC. 304. (a) The following provisions of law are repealed: 
(1) The third proviso in section 3 of the Act of October 30, 
1951, as amended by the Act of June 23, 1959 (73 Stat. 89; 
74 stat. 728. 
Public Law 86-56); 
Ante, p. 447. 
840 
PUBLIC LAW 87-793-OCT.ll, 1962 
[76 STAT. 
62 Stat. 1263; 
74 Stat. 727. 
74 Stat. 670, 676. 
74 Stat. 672. 
74 Stat. 654. 
56 Stat. 250. 
65 Stat. 73. 
19 u s e 1362. 
Post, 
p. 876. 
75 Stat. 444; 
Ante, 
p. 261. 
(2) Sections 204(d), 204:(e) (1), and 204(e) (2) of the Postal 
Rate Revision and Federal Employees Salary Act of 1948, as 
amended by the Act of July 14, 1960 (74 Stat. 479; Public Law 
86-644) ; 
(3) Sections 4361 and 4652 of title 39, United States Code. 
(b) Section 4359(a) of title 39, LTnited States Code, is amended 
by striking out "4358, 4361, and 4362" and inserting in lieu thereof 
"4358 and 4362". 
(c) Section 4451(d) of title 39, United States Code, is amended 
by striking out "(a) (2)" and inserting in lieu thereof "(a) (3)". 
COMMUNIST POLITICAL 
PROPAGANDA 
SEC. 305. (a) Chapter 51 of title 39, United States Code, is amended 
by adding at the end thereof the following new section: 
"§ 4008. Communist political propaganda 
"(a) Mail matter, except sealed letters, which originates or which 
is printed or otherwise prepared in a foreign country and which is 
determined by the Secretary of the Treasury pursuant to rules and 
regulations to be promulgated by him to be 'communist political propa-
ganda', shall be detained by the Postmaster General upon its arrival 
for delivery in the United States, or upon its subsequent deposit in 
the United States domestic mails, and the addressee shall be notified 
that such matter has been received and will be delivered only upon 
the addressee's request, except that such detention shall not be required 
in the case of any matter which is furnished pursuant to subscription 
or which is otherwise ascertained by the Postmaster General to be 
desired by the addressee. If no request for delivery is made by the 
addressee within a reasonable time, which shall not exceed sixty days, 
the matter detained shall be disposed of as the Postmaster General 
directs. 
"(b) For the purposes of this section, the term 'communist political 
propaganda' means political propaganda, as defined in section l(j) 
of the Foreign Agents Registration Act of 1938, as amended (22 
U.S.C. 611 (j)), issued by or on behalf of any country with respect to 
which there is in effect a suspension or withdrawal of tariff concessions 
pursuant to section 5 of the Trade Agreements Extension Act of 1951 
or section 231 of the Trade Expansion Act of 1962, or any country 
from which any type of foreign assistance is withheld pursuant to 
section 620(f) of tlie Foreign Assistance Act of 1961, as amended. 
"(c) The provisions of this section shall not be applicable with 
respect to (1) matter addressed to any United States Government 
agency, or any public library, or to any college, university, graduate 
school, or scientific or professional institution for advanced studies, or 
any official thereof, or (2) material whether or not 'communist political 
propaganda' addi-essed for delivery in the United States pursuant to 
a reciprocal cultural international agreement under which the United 
States Government mails an equal amount of material for delivery in 
any country described in subsection (b)." 
(b) The table of contents of chapter 51 of title 39, United States 
Code, is amended by adding at the end thereof the following: 
"4008. Communist political propaganda." 
EFFECTIVE DATE 
SEC. 306. Except as otherwise provided, the foregoing provisions of 
this part shall become effective on January 7,1963. 
76 STAT. ] 
PUBLIC LAW 87-793-OCT. 11, 1962 
841 
NOTICE W I T H RESPECT TO OBSCENE MATTER DISTRIBUTED BY MAIL AND 
DETENTION 
THEREOF 
SEC. 307. In order to alert the recipients of mail and the general 
public to the fact that large quantities of obscene, lewd, lascivious, 
and indecent matter are being introduced into this country from 
abroad and disseminated in the United States by means of the United 
States mails, the Postmaster General shall publicize such fact (1) 
by appropriate notices posted in post offices, and (2) by notifying 
recipients of mail, whenever he deems it appropriate in order to carry 
out the purposes of this section, that the United States mails may 
contain such obscene, lewd, lascivious, or indecent matter. Any per-
son may file a written request with his local post office to detain ob-
scene, lewd, lascivious, or indecent matter addressed to him, and the 
Postmaster General shall detain and dispose of such matter for such 
period as the request is in effect. The Postmaster General shall permit 
the return of mail containing obscene, lewd, lascivious, or indecent 
matter, to local post offices, without cost to the recipient thereof. 
Nothing in this section shall be deemed to authorize the Postmaster 
General to open, inspect, or censor any mail except on specific request 
by the addressee thereof. The Postmaster General is authorized to 
prescribe such regulations as he may deem appropriate to carry out 
the purposes of this section. 
PART 
II—FEDERAL 
SALARY REFORM 
TITLE I—GENERAL POLICY 
SHORT 
TITLE 
SEC. 501. This part may be cited as the "Federal Salary Reform Act 
DECLARATION 
OF POLICY 
of 1962". 
Written request 
for detention. 
Federal Salary 
Reform Act of 
1962. 
SEC. 502. The Congress hereby declares that, whereas the functions 
of a Federal salary system are to fix salary rates for the services ren-
dered by Federal employees so as to make possible the employment of 
persons well qualified to conduct the Government's programs and to 
control expenditures of public funds for personal services with equity 
1 o the employee and to the taxpayer, and whereas fulfillment of these 
functions is essential to the development and maintenance of maxi-
mum proficiency in the civilian services of Government, then, ac-
cordingly. Federal salary fixing shall be based upon the principles 
that— 
(a) There shall be equal pay for substantially equal work, 
and pay distinctions shall be maintained in keeping with work 
and performance distinctions; and 
(b) Federal salary rates shall be comparable with private 
enterprise salary rates for the same levels of work. 
Salary levels for the several Federal statutory salary systems shall be 
interrelated, and salary levels shall be set and henceforth adjusted in 
accordance with the above principles. 
IMPLEMENTATION OF POLICY 
SEC' 503. In order to give effect to the policy stated in section 502, 
the President: (1) shall direct such agency or agencies, as he deems 
appropriate, to prepare and submit to him annually a report which 
compares the rates of salary fixed by statute for Federal employees 
with the rates of salary paid for the same levels of work in private 
842 
PUBLIC LAW 87-793-OCT. 11, 1962 
[76 STAT. 
Report to Con-
gress. 
Higher minimum 
compensation 
rates. 
Presidential au-
thority. 
Post, 
p. 843. 
74 Stat. 607. 
72 Stat, 1243; 
Post, 
p. 859. 
Post, 
pp. 861, 
862. 
Compensation 
rates, revision. 
Post, 
p. 847. 
Post, p. 854. 
enterprise as determined on the basis of appropriate annual surveys 
conducted by the Bureau of Labor Statistics, and, after seeking the 
views of such employee organizations as he deems appropriate and in 
such manner as he may provide, (2) shall report annually to the Con-
gress (a) this comparison of Federal and private enterprise salary 
rates and (b) such recommendations for revision of statutory salary 
schedules, salary structures, and compensation policy, as he deems 
advisable. 
SEC. 504. (a) Whenever the President shall find that the salary 
rates in private enterprise for one or more occupations in one or more 
areas or locations are so substantially above the salary rates of statu-
tory pay schedules as to handicap significantly the Government's 
recruitment or retention of well-qualified persons in positions com-
pensated under (1) section 603(b) of the Classification Act of 1949, 
as amended (5 U.S.C. 1113(b)), (2) the provisions of part I I I of 
title 39, United States Code, relating to personnel in the postal field 
service, (3) the pay scales for physicians, dentists, and nurses in the 
Department of Medicine and Surgery of the Veterans' Administra-
tion under chapter 73 of title 38, United States Code, or (4) sections 
412 and 415 of the Foreign Service Act of 1946, as amended (22 U.S.C. 
867 and 870), he may establish for such areas or locations higher 
minimum rates of basic compensation for one or more grades or levels, 
occupational groups, series, classes, or subdivisions thereof, and may 
make corresponding increases in all step rates of the salary range for 
each such grade or level: Provided,, That in no case shall any mini-
mum salary rate so established exceed the seventh salary rate pre-
scribed by law for the grade or level. The President may authorize 
the exercise of the authority conferred upon him by this section by' 
the Civil Service Commission or, in the case of employees not subject 
to the civil service laws and regulations, by such other agency or 
agencies as he may designate. 
(b) Within the limitations specified in subsection (a), rates of 
basic compensation established under such subsection may be revised 
from time to time by the President or by such agency or agencies as 
he may designate. 
Such actions or revisions shall have the force and 
effect of law. 
(c) Any increase in rate of basic compensation established under 
this section shall not be regarded as an "equivalent increase" in com-
pensation within the meaning of section 701(a) of the Classification 
Act of 1949, as amended, and section 3552 of title 39 of the United 
States Code. 
SEC. 505. The functions, duties, and regulations of the departments 
and the Civil Service Commission with respect to this title, the Classifi-
cation Act of 1949, as amended, the provisions of part I I I of title 39, 
United States Code, relating to personnel in the postal field service, 
the Foreign Service Act of 1946, as amended, and the provisions of 
chapter 73 of title 38 of the United States Code relating to personnel 
of the Department of Medicine and Surgery in the Veterans' Adminis-
tration, shall be subject to such policies and rules as the President may 
issue. Among other things, the President's policies and rules may 
provide for— 
(1) preparing and reporting to him the annual comparison of 
Federal salary rates with private enterprise rates, 
(2) obtaining and reporting to him the views of employee 
organizations on such annual comparison, and on other salary 
matters, 
(3) reviewing and reporting to him on the adequacy of the 
Federal statutory salary structures for the Federal programs to 
which they apply. 
76 STAT. ] 
PUBLIC LAW 87-793-OCT. 11, 1962 
843 
(4) reviewing the relationship of Federal statutory salary 
rates and private enterprise salary rates in specific occupation 
and local areas, and 
(5) providing step-increases in recognition of high quality 
performance and providing for properly relating supervisory 
salary rates paid under one system to those of subordinates paid 
under another system. 
TITLE II—PAY SYSTEM OF THE CLASSIFICATION ACT OF 1949 
SHORT T I T L E 
SEC. 601. This title may be cited as the "Classification Act Amend-
BASIC COMPENSATION 
SCHEDULES 
ments of 1962". 
Classification 
Act Amendments 
of 1962. 
SEC 602. (a) Section 603(b) of the Classification Act of 1949, as 
amended (74 Stat. 298; 5 U.S.C. 1113(b)), is amended to read as 
follows: 
"(b) The compensation schedules for the General Schedule shall 
be as follows: 
"COMPENSATION SCHEDULE I 
" (To be effective for the period beginning on the first day of the first pay period besrinnin? on or after the 
date of enactment of this Act, and endine immediately prior to the applicable initial effective date of 
Compensation Schedule II set forth below) 
"Grade 
as-i_ 
OS-2 
OS-3 
OS-4 
OS-5 
GS-6 
as-7.. 
OS-8 
OS-9-
Q S - 1 0 . - . 
G S - n . -
OS-12 
OS-13 
GS-14 
OS-],') 
GS-16 
GS-17 
GS-18 
Per a n n u m rates and steps 
1 
$3.245 
3,660 
3,820 
4,110 
4,565 
5,035 
5,540 
6,090 
6,675 
7,290 
8.045 
9, 475 
11,150 
12,845 
14.565 
16,000 
18,000 
20,000 
2 
$3,350 
3,665 
3,925 
4,250 
4,725 
5,205 
5,725 
6,296 
6.900 
7,535 
8,310 
9,790 
11,515 
13,270 
15,045 
16, .500 
18,500 
3 
.13,455 
3,770 
4,030 
4,390 
4,886 
,6,375 
5,910 
6, .500 
7,126 
7.780 
8,575 
10,105 
11,880 
13, 095 
15,525 
17,000 
19,000 
4 
$3,560 
3,875 
4,135 
4,630 
6,045 
6,545 
6,095 
6, 705 
7.350 
8,026 
8,840 
10,420 
12,245 
14,120 
16,005 
17,500 
19,500 
5 
$3,666 
3,980 
4.240 
4,670 
5,205 
5,715 
6,280 
6,910 
7.576 
8,270 
9.106 
10.735 
12,610 
14,545 
16, 4S5 
18,000 
20,000 
6 
$3, 770 
4,085 
4,346 
4,810 
6,365 
6, 885 
6, 4&5 
7.115 
7,800 
8,615 
9,370 
11,050 
12,975 
14,970 
16,965 
7 
$3,875 
4,190 
4,455 
4,950 
5,625 
6,065 
6,660 
7,320 
8,026 
8,760 
9,636 
11,365 
13,340 
15,395 
17,445 
8 
$3,980 
4,295 
4.580 
5,090 
.5,685 
6,225 
6,835 
7, 525 
8,250 
9.005 
9.900 
11,680 
13.705 
15,820 
17,926 
9 
$4,085 
4,400 
4,705 
5,230 
5,845 
6,395 
7,020 
7,730 
8,475 
9,250 
10,16.5 
11,995 
M,070 
16,246 
10 
$4,190 
4,605 
4,830 
5,370 
0,005 
6.566 
7,205 
7.936 
S,700 
9, 495 
"COMPENSATION SCHEDULE II 
'(To be effective on the first day of the first pay period beginning on. or after January 1,1964, and thereafter) 
"Grade 
OS-1 
GS-2 
QS-3 
QS-4 
GS-5 
GS-6 
GS-7 
GS-8 
G S - 9 - . . . . 
OS-10.. 
GS-11 
OS-12 
QS-13 
GS-14. 
OS-15 
GS-16 
GS-17 
GS-18 
1 
$3,305 
3,620 
3,880 
4,215 
4,690 
5,235 
5.795 
6,390 
7,030 
7,690 
8,410 
9,980 
11,725 
13,615 
15,665 
16,000 
18,000 
20.000 
2 
$3,410 
3,725 
3,985 
4,355 
4,860 
5,410 
5,990 
6,600 
7,260 
7,945 
8,690 
10,310 
12,110 
14,065 
16,180 
16,500 
18,500 
3 
.$3, 515 
3,830 
4,090 
4,495 
5,010 
5,585 
6,185 
6,810 
7,490 
8.200 
8.970 
10,640 
12, 495 
14, 515 
16,695 
17,000 
19,000 
Per a n n u m rates and steps 
4 
$3,620 
3,935 
4.196 
4,635 
5,170 
5,760 
6.380 
7,020 
7,720 
8.455 
9,250 
10,970 
12,880 
14,965 
17,210 
17,500 
19,500 
5 
$3,725 
4,040 
4,300 
4,775 
5,330 
5,935 
6,575 
7,230 
7,950 
8,7J0 
9.530 
11,300 
13,265 
15,415 
17, 725 
18,000 
20,000 
6 
$3,830 
4,145 
4,405 
4,915 
6,490 
6.110 
6,770 
7,440 
8, 180 
8.965 
9,810 
11,630 
13,650 
15,865 
18,240 
7 
$3, 936 
4,250 
4,526 
5,065 
6,650 
6,285 
6,965 
7,650 
8,410 
9,220 
10,090 
11,960 
14.035 
16,315 
18,755 
8 
$4,040 
4,356 
4,660 
5,195 
5.810 
6,460 
7,160 
7,860 
8,640 
9,475 
10, 370 
12,290 
14,420 
16.765 
19,270 
9 
$4,145 
4,460 
4,775 
6,335 
5,970 
6,635 
7,355 
8,070 
8.870 
9,730 
10,650 
12,620 
14.805 
17,215 
10 
$4, 250 
4,565 
4,900 
5,475 
6.130 
6,810 
7,550 
8,280 
9,100 
9.985 
" 
844 
PUBLIC LAW 87-793-OCT. Hi 1962 
[76 STAT. 
Grades 1-3. 
Third longevity 
rate. 
Compensation 
(b) The rates of basic compensation of officers and employees to 
Schedule I initial whom Compensation Schedule I of the General Schedule set forth in 
adjustment oi 
•
/
\
i
»
i
' 
• 
T
i
n
i
- 
i 
• • 
rates. 
suDsectiou (a) OI this section applies shall, subject to the provisions 
of paragraph (10) of this subsection, be initially adjusted, effective 
on the first day of the first pay period beginning on or after the date 
of enactment of this Act, as follows: 
Grades 1-3. 
(1) If the officcT. or employee is receiving basic compensation 
immediately prior to the first day of the first pay period which 
begins on or after the date of enactment of this Act at the first, 
second, third, fourth, fifth, sixth, or seventh scheduled rate, or at 
the first or second longevity rate of a grade below grade 4 of the 
General Schedule of the Classification Act of 1949, as amended, 
he shall be advanced as follows: Employees in step 1 to step 2 
of the new schedule; step 2 to step 3; step 3 to step 4; step 4 to 
step 5; step 5 to step 6; step 6 to step 7; step 7 to step 8; the first 
longevity step to step-9; and the second longevity step to step 10. 
(2) If the officer or employee is receiving basic compensation 
immediately prior to the first day of the first pay period which 
begins on or after the date of enactment of this Act at the third 
longevity rate of a grade below grade 4 of the General Schedule 
of the Classification Act of 1949, as amended, he shall receive basic 
compensation at the highest rate of the appropriate grade plus 
an amount equal to the value of the maximum within grade 
increment provided for that grade in effect on and after such day. 
Grades 4-10. 
(3) If thc officeT O
T employee is receiving basic compensation 
immediately prior to the first day of the first pay period which 
begins on or after the date of enactment of this Act at the first, 
second, third, fourth, fifth, sixth, or seventh scheduled rate, or 
at the first, second, or third longevity rate, of grade-4, 5, 6, 7, 8, 
9, or 10 of the General Schedule of the Classification Act of 1949, 
as amended, he shall receive a rate of basic compensation at the 
corresponding first, second, third, fourth, fifth, sixth, seventh, 
eighth, ninth, or tenth rate of the appropriate grade in effect on 
and after such day. 
Grades 11-14. 
(4) If the officer or employee is receiving basic compensation 
immediately prior to the first day of the first pay period which 
begins on or after the date of enactment of this Act at the first, 
second, third, fourth, fifth, or sixth scheduled rate, or at the first, 
second, or third longevity rate of grade 11, 12, 13, or 14 of the 
General Schedule of the Classification Act of 1949, as amended, 
he shall receive a rate of basic compensation at the corresponding 
first, second, third, fourth, fifth, sixth, seventh, eighth^ or ninth 
rate of the appropriate grade in effect on and after such day. 
Grade 15. 
(5) If t^e officcr O
T employee is receiving basic compensation 
immediately prior to the first day of the first pay period which 
begins on or after the date of enactment of this Act at the first, 
second, third, fourth, or fifth scheduled rate, or at the first, sec-
ond, or third longevity rate of grade 15 of the General Schedule of 
the Classification Act of 1949, as amended, he shall receive a rate 
of basic compensation at the corresponding first, second, third, 
fourth, fifth, sixth, seventh, or eighth rate of such grade in 
effect on and after such day. 
Grades 16 or 17. 
(6) If the officer O
T employee is receiving basic compensation 
immediately prior to the first day of the first pay period, which 
begins on or after the date of enactment of this Act at the first, 
second, third, fourth, or fifth rate of grade 16 or grade 17 of the 
General Schedule of the Classification Act of 1949, as amended, 
he shall receive a rate of basic compensation at the corresponding 
76 STAT.] 
PUBLIC LAW 87-793-OCT. 11, 1962 
845 
first, second, third, fourth, or fifth rate of the appropriate grade 
in effect on and after such day. 
(7) If the officer or employee is receiving basic compensation 
immediately prior to the first day of the first pay period which 
begins on or after the date of enactment of this Act at the rate 
of grade 18 of the General Schedule of the Classification Act 
of 1949, as amended, he shall receive a rate of basic compensa-
tion at the corresponding rate of such grade in effect on and 
after such day. 
(8) If the officer or employee is receiving basic compensation 
immediately prior to the first day of the first pay period which 
begins on or after the date of enactment of this Act at a rate 
between two scheduled or two longevity rates, or between a sched-
uled and a longevity rate, of a grade of the General Schedule, 
he shall receive a rate of basic compensation at the higher of the 
two corresponding rates, as specified in paragraphs (1) through 
(6) of this subsection, in effect on and after such day. 
(9) If the officer or employee is receiving basic compensation 
immediately prior to the first day of the first pay period which 
begins on or after the date of enactment of this Act at a rate in 
excess of the maximum longevity rate for his grade, or in excess 
of the maximum scheduled rate for his grade if there is no lon-
gevity rate for his grade, he shall receive (A) the rate of the 
new schedule, in effect on and after such day, prescribed by 
paragraphs (1) through (6) of this subsection for employees at 
the maximum longevity rate or at the maximum scheduled rate, 
as the case may be, for his grade, or (B) if such rate is less than 
his existing rate, (i) the lowest rate of the new schedule for his 
grade which equals or exceeds his existing rate or (ii) if there 
is no such rate, his existing rate. 
(10) Service of officers and employees performed immediately 
preceding the first day of the first pay period which begins on 
or after the date of enactment of this Act, in the grade of the 
General Schedule in which their respective positions were placed 
on such day, shall be counted toward not to exceed one step 
increase under the time in grade provisions of subsection (a) 
of section 701 of the Classification Act of 1949 as amended by 
this Act. 
(11) If the officer or employee, immediately prior to the first 
day of the first pay period which began on or after the date 
of enactment of this Act, is receiving, pursuant to paragraph 
(4) of section 2(b) of the Federal Employees Salary Increase 
Act of 1955, an existing aggregate rate of compensation deter-
mined under section 208(b) of the Act of September 1, 1954 
(68 Stat. 1111; Public Law 763, Eighty-third Congress), plus the 
amount of the increase provided by section 2 of the Federal Em-
ployees Salary Increase Act of 1955, by section 2 of the Federal 
Employees Salary Increase Act of 1958, and by section 112 of 
the Federal Employees Salary Increase Act of 1960, he shall 
receive an aggregate rate of compensation equal to the sum of 
(A) his existing aggregate rate of compensation determined un-
der such section 208(b) of the Act of September 1, 1954, (B) 
the amount of the increase provided by section 2 of the Federal 
Employees Salary Increase Act of 1955, (C) the amount of 
the increase provided by section 2 of the Federal Employees 
Salary Increase Act of 1958, (D) the amount of the increase 
provided by section 112 of the Federal Employees Salary In-
crease Act of 1960, and (E) the amount of the increase made 
by this section in the maximum rate of his grade, until (i) he 
Grade 18. 
Rates between 
scheduled or lon-
gevity rates. 
Maximum longev-
ity or scheduled 
rates. 
Certain previ-
ous service. 
Post, 
p. 847. 
69 Stat 
5 u s e 
note. 
5 u s e 
72 Stat 
5 use 
note. 
74 Stat 
5 use 
and note 
. 173. 
1113 
926 note. 
.203. 
1113 and 
. 298. 
1113 
846 
PUBLIC LAW 87.793-OCT. 11, 1962 
[76 STAT. 
Rate between 
two rates. 
leaves his position, or (ii) he is entitled to receive aggregate 
compensation at a higher rate by reason of the operation of 
this Act or any other provision of law; but, when such position 
becomes vacant, the aggregate rate of compensation of any sub-
sequent appointee thereto shall be fixed in accordance with ap-
plicable provisions of law. Subject to clauses (i) and (ii) of the 
immediately preceding sentence of this paragraph, the amount 
of the increase provided by this section shall be held and con-
sidered for the purpose of section 208(b) of such Act of Sep-
tember 1, 1954, to constitute a part of the existing rate of com-
pensation of such employee. 
Compensation 
(c) The rates of basic compensation of officers and employees to 
ad^uttment^'of"'^^ 7^^^ Compensation Schedule II of the General Schedule set forth 
rates. 
lu subsectiou" (a) of this section applies shall be initially adjusted, 
effective as of the first day of the first pay period beginning on or after 
January 1,1964, as follows: 
(1) If the officer or employee is receiving basic compensation 
immediately prior to the first day of the first pay period which 
begins on or after January 1, 1964, at one of the rates of a grade 
in the General Schedule of the Classification Act of 1949, as 
amended, he shall receive a rate of basic compensation at the 
corresponding rate in effect on and after such date. 
(2) If the officer or employee is receiving basic compensation 
immediately prior to the first day of the first pay period which 
begins on or after January 1, 1964, at a rate between two rates 
of a grade in the General Schedule of the Classification Act of 
1949, as amended, he shall receive a rate of basic compensation 
at the higher of the two corresponding rates in effect on and after 
such date. 
(3) If the officer or employee is receiving basic compensation 
immediately prior to the first day of the first pay period which 
begins on or after January 1,1964, at a rate in excess of the maxi-
mum rate for his grade, as in effect on and after such date, he 
shall receive (A) the rate of the new schedule prescribed for em-
ployees at the maximmn rate for his grade, or (B) his existing rate 
of basic compensation if such existing rate is higher. 
(4) If the officer or employee, immediately prior to the first^ 
day of the first pay period which begins on or after January 1, 
1964, is receiving, pursuant to paragraph (4) of section 2(b) of 
the Federal Employees Salary Increase Act of 1955, an existing 
aggregate rate of compensation determined under section 208(b) 
of the Act of September 1, 1954 (68 Stat. 1111; Public Law 763, 
Eighty-third Congress), plus the amount of the increase pro-
vided by section 2 of the Federal Employees Salary Increase Act 
of 1955, by section 2 of the Federal Employees Salary Increase 
Act of 1958, and by section 112 of the Federal Employees Salary 
Increase Act of 1960, and the amount of the initial increase pro-
vided by this section, he shall receive an aggregate rate of com-
pensation equal to the sum of (A) his existing aggregate rate of 
compensation determined under such section 208(b) of the Act of 
September 1, 1954, (B) the amount of the increase provided by 
section 2 of the Federal Employees Salary Increase Act of 1955, 
(C) the amount of the increase provided by section 2 of the Fed-
eral Employees Salary Increase Act of 1958, (D) the amount of 
the increase provided by section 112 of the Federal Employees 
Salary Increase Act of 1960, and (E) the amount of the increase 
made by this section in the maximum rate of his grade, until (i) 
he leaves his position, or (ii) he is entitled to receive aggregate 
compensation at a higher rate by reason of the operation of this 
Maximum rate of 
grade. 
69 Stat. 173. 
5 u s e 1113 
note. 
5 u s e 926 note. 
72 Stat. 20o 
74 Stat. 298. 
5 use 1113 an4 
note. 
76 STAT. ] 
PUBLIC LAW 87-793-OCT. 11, 1962 
847 
Act or any other provision of law; but, when such position be-
comes vacant, the aggregate rate of compensation of any subse-
quent appointee thereto shall be fixed in accordance with appli-
cable provisions of law. Subject to clauses (i) and (ii) of the 
immediately preceding sentence of 'this paragraph, the amount 
of the increase provided by this section shall be held and con-
sidered for the purpose of section 208 (b) of such Act of September 
1, 1954, to constitute a part of the existing rate of compensation 
of such employee. 
STEP-INCREASES 
SEC." 603. Title VII of the Classification Act of 1949, as amended 
(5 U.S.C. 1121-1125), relating to step-increases under such Act, is 
64 stat. uoo; 
amended to read as follows: 
*^ ^
*
®
*
- ^^^• 
"TiTL*E VII—STEP-INCREASES 
"SEC. 701. (a) Each officer or employee compensated on a per an-
num basis, and occupying a permanent position within the scope of the 
compensation schedules fixed by this Act, who has not attained the 
maximum rate of compensation for the grade in which his position is 
E
laced, shall be advanced in compensation successively to the next 
igher rate within the grade at the beginning of the next pay period 
following the completion of (1) each fifty-two calendar weeks of serv-
ice in salary rates 1,2, and 3, or (2) each one hundred and four calendar 
weeks of service in salary rates 4,5, and 6, or (3) each one hundred and 
fifty-six calendar weeks of service in salary rates 7, 8, and 9, subject 
to the following condition^: 
"(A) That no equivalent increase in compensation from any 
cause was received during such period; 
"(B) That his work is of an acceptable level of competence as 
determined by the head of the department; and 
"(C) That the benefit of successive step-increases shall be pre-
served, under regulations issued by the Commission, for officers 
and employees whose continuous service is interrupted in the pub-
lic interest by service with the Armed Forces or by service in 
essential non-Government civilian employment during a period of 
war or national emergency. 
"(b) Any increase in compensation granted by law shall not be con-
strued to be an equivalent increase in compensation within the mean-
ing of subsection (a). 
"SEC. 702. (a) Within the limit of available appropriations and in 
accordance with regulations prescribed by the Commission, the head 
of each department is authorized to grant additional step-increases 
in recognition of high quality performance above that ordinarily 
found in the type of position concerned. 
Step-increases under this 
section shall be in addition to those under section 701 and shall not be 
construed to be an equivalent increase in compensation within the 
meaning of subsection (a) of section 701. 
"(b) No officer or employee shall be eligible under this section for 
more than one such additional step-increase within any period of 
fifty-two weeks. 
"SEC. 703. This title shall not apply to the compensation of persons 
Presidential ap-
appointed by the President, by and with the advice and consent of p<^^''ne"ts, excep-
the Senate." 
GENERAL COMPENSATION RULES 
SEC. 604. (a) Section 802(b) of the Classification Act of 1949, as 
amended (5 U.S.C. 1132(b)), relating to the salary to be received by 
63 stat. 969. 
an officer or employee who is promoted or transferred to a higher 
grade, is amended to read as follows: 
848 
PUBLIC LAW 87-793-OCT. 11, 1962 
[76 
STAT. 
Infra. 
Basic compen-
sation of certain 
employees, reten-
tion. 
Supervisors of 
wage board em-
ployees, compen-
s ation. 
" (b) Any officer or employee who is promoted or transferred to a 
position in a higher grade shall receive basic compensation at the 
lowest rate of such higher grade which exceeds his existing rate of 
basic compensation by not less than two step-increases of the grade 
from which he is promoted or transferred. 
If, in the case of any 
officer or employee so promoted or transferred who is receiving basic 
compensation at a rate in excess of the maximum rate for his grade 
under any provision of law, there is no rate in such higher grade 
which is at least two step-increases above his existing rate of basic 
compensation, he shall receive (1) the maximum rate of such higher 
grade, or (2) his existing rate of basic compensation, if such existing 
rate is the higher. In case any such officer or employee so promoted 
or transferred is receiving basic compensation at a rate saved to him 
under section 607 of this Act upon reduction in grade, such officer 
or employee shall receive (A) basic compensation at a rate two steps 
above the rate which he would be receiving if such section 507 were 
not applicable in his case, or (B) his existing rate of basic compen-
sation, if such existing rate is the higher." 
(b) Section 802 of such Act is amended by adding at the end thereof 
a new subsection to read as follows: 
"(d) The Commission may issue regulations governing the re-
tention of the rate of basic compensation of an employee who together 
with his position is brought under this Act. If any such employee so 
entitled to receive a retained rate under regulations issued pursuant to 
this subsection is later demoted to a position under this Act, his rate 
of basic compensation shall be determined in accordance with section 
507 of this Act, except that service in the position which was brought 
under the Act shall, for purposes of section 507, be considered as 
service under this Act.". 
(c) Section 803 of the Classification Act of 1949, as amended (5 
U.S.C. 1133), is amended to read as follows: 
"SEC. 803. Each employee in a position under this Act, who regu-
larly has responsibility for supervision (including supervision over 
the technical aspects of the work concerned) over employees whose 
compensation is fixed and adjusted from time to time by wage boards 
or similar administrative authorities as nearly as is consistent with 
the public interest in accordance with prevailing rates, may, in ac-
cordance with regulations issued by the Commission, be paid at one 
of the scheduled rates for his grade which is above the highest rate 
of basic compensation being paid to anj^ such prevailing-rate em-
ployee regularly supervised, or at the maximum rate for his grade, as 
provided for in such regulations.". 
75 Stat. 786. 
SALARY 
RETENTION 
SEC. 605. Section 507 of the Classification Act of 1949, as amended 
(72 Stat. 830; 5 U.S.C. 1107), is amended— 
(1) by striking out "(other than grade 16, 17, or 18 of the 
General Schedule)" in paragraph (1) of subsection (a) of such 
section; and 
(2) by striking out "(B) in the same grade or in the same and 
higher grades;" in paragraph (4) of subsection (a) of such 
section; and by inserting in lieu thereof "(B) in any grade or 
grades higher than the grade to which demoted;". 
1X)P GRADE POSITIONS UNDER CLASSIFICATION ACT OF 
1 0 4 9 
SEC. 606. (a) Section 505 (b) of the Classification Act of 1949, as 
amended (5 U.S.C. 1105(b)), relating to the limitation on numbers 
of positions in grades 16, 17, and 18 of the General Schedule of such 
76 STAT.] 
PUBLIC LAW 87-793-OCT. 11, 1962 
849 
Act, is amended by striking out "not to exceed an aggregate of nine-
teen hundred and eighty-nine" and substituting in lieu thereof "not 
to exceed an aggregate of twenty-four hundred, in addition to any 
professional engineering positions primarily concerned with research 
and development and professional positions in the physical and 
natural sciences and medicine which may be placed in such grades". 
(b) Section 505(j) of such Act is amended by inserting after the 
word "positions" the following: "(in addition to any professional 
engineering positions primarily concerned with research and develop-
ment and professional positions in the physical and natural sciences 
and medicine which may be placed in such grades)". 
(c) Section 505 of such Act is further amended by inserting after 
subsection (j) the following new subsections: 
"(k) The Attorney General is authorized, without regard to any 
other provision of this section, to place a total of ten positions of 
Warden in the Bureau of Prisons in grade 16 of the General Schedule. 
Such positions shall be in addition to the number of positions author-
ized to be placed in such grade by subsection (b). 
"(1) The Attorney General is authorized, without regard to any 
other provision of this section, fo place a total of eight positions of 
Member of the Board of Parole in grade 17 of the General Schedule. 
Such positions shall be in addition to the number of positions author-
ized to be placed in such grade by subsection (b)." 
Department of 
Defense. 
73 Stat. 700; 
75 Stat. 786. 
Warden, Bureau 
of Prisons. 
Member, Board 
of Parole. 
CONFORMING CHANGES I N EXISTING LAW 
SEC. 607. (a) The following provisions of law are hereby repealed: 
(1) Section 104 of the Department of Commerce and Related Agen-
cies Appropriation Act, 1956 (69 Stat. 234; 5 U.S.C. 592(d)), author-
izing grade 17 of the General Schedule of the Classification Act of 
1949 for the position of Budget Officer of the Department of Commerce 
so long as the position is held by the present incumbent. 
(2) Section 206 of the Public Works Appropriation Act, 1956 (69 
Stat. 360; 5 U.S.C. 483-2), authorizing the Secretary of the Interior 
to place the position of Director, Division of Budget and Finance, in 
grade 17 of the General Schedule established by the Classification Act 
of 1949 so long as the position is held by the present incumbent. 
(3) The second paragraph under the heading "Administrative Pro-
visions" in title I I I of the Public Works Appropriation Act, 1956 
(69 Stat. 364; 10 U.S.C. 1335, note), authorizing the Chief of Engi-
neers to place the position of Chief of the Programs Branch, Office 
of the Assistant Chief of Engineers for Civil Works, in grade 17 of 
the General Schedule established by the Classification Act of 1949 
so long as the position is held by the present incumbent. 
(4) Section 24(d) of the Area Redevelopment Act (75 Stat. 62; 
42 U.S.C. 2521(d)), authorizing five positions in grades 16, 17, and 
18 of the General Schedule established by the Classification Act of 
1949 for agencies performing functions under that Act. 
(5) The fourth sentence of section 3(a) of the Fish and Wildlife 
Act of 1956 (70 Stat. 1120; 16 U.S.C. 742b(a)), relating to the annual 
salary of the..Commissioner of Fish and Wildlife in the Department 
of the Interior, which reads: "He shall receive compensation at the 
same rate as that provided for grade GS-18.". 
(6) That part of section 207 of the Agricultural Act of 1956 (70 
Stat. 200; 7 U.S.C. 1857), relating to the annual salary of an agri-
cultural surplus disposal administrator in the Department of Agricul-
ture, which reads: ", at a salary rate of not exceeding $15,000 per 
annum,". 
Repeals. 
Commerce^ 
Budget Officer. 
Interior, Direc-
tor, Division of 
Budget and Fi-
nance. 
Engineers, 
Chief, Programs 
Branch. 
Area Redevelop-
ment Act, certain 
positions. 
Fish and Wild-
life, Commis-
sioner. 
Agriculture, sur-
plus disposal ad-
ministrator. 
78135 0-63—57 
850 
PUBUC LAW 87-793-OCT. 11, 1962 
[76 STAT. 
Reporting re-
quirement. 
Bureau of Pris-
ons, certain posi-
tions. 
Affected posi-
tions, transfer to 
General Schedule. 
Supergrades. 
Ante, pp. 848, 
849. 
Ante, p. 843. 
(7) Section 1102 of the Classification Act of 1949, as amended ^63 
Stat-. 971; 5 U.S.C. 1073), relating to the submission of reports with 
respect to the rates of compensation under, and the administration of, 
such Act. 
(b) The second proviso of the paragraph under the heading 
"FEDERAL PRISON SYSTEM" and under the subheading "SALARIES AND 
EXPENSES, BUREAU OF PRISONS" in title I I (the Department of Justice 
Appropriation Act, 1956) of the Departments of State and Justice, 
the Judiciary, and Related Agencies Appropriations Act, 1956 (69 
Stat. 273; Public Law 133, Eighty-fourth Congress; 5 U.S.C. 298a) 
is amended by striking out "three positions" and inserting in lieu 
thereof "one position". 
SEC. 608. (a) Each position specifically referred to in, or covered 
by, any repeal made by section 607(a) of this title shall be placed in 
the appropriate grade of the General Schedule of the Classification 
Act of 1949, as amended, in accordance with the provisions of such 
Act. 
(b) Positions in grade 16, 17, or 18, as the case may be, of the 
General Schedule of the Classification Act of 1949, as amended, 
immediately prior to the effective date^of this section, shall remain, 
on and after such effective date, in their respective grades, until appro-
priate action is taken under section 505 of the Classification Act of 
1949 as in effect on and after such effective date. 
SAVINGS PROVISIONS 
SEC. 609. (a) The changes in existing law made by this title shall 
not affect any position existing immediately prior to the effective date 
of any such changes in existing law, the compensation attached to such 
position, and any incumbent thereoi, his appointment thereto, and his 
entitlement to receive the compensation attached thereto, until ap-
propriate action is taken in accordance with this title. 
(b) The incumbent of each such position immediately prior to the 
effective date of this title shall continue to receive the rate of basic 
compensation which he was receiving immediately prior to such effec-
tive date until he leaves such position or until he is entitled to receive 
compensation at a higher rate in accordance with law. When such 
incumbent leaves such position^ the rate of basic compensation of each 
subsequent appointee to such position shall be determined in accord-
ance with the Classification Act of 1949, as amended. 
EFFECTIVE DATES 
SEC. 610. Except as otherwise expressly provided in this title, the 
provisions of this title shall become effective on the first day of the 
nrst pay period which begins on or after the date of enactment of 
this Act. 
TITLE III—POSTAL FIELD SERVICE EMPLOYEES 
SHORT TITLE 
Postal Employ- 
SEC. 701. This title may be cited as the "Postal Employees Salary 
ZnttToti^et 
Adjustment Act of 1962". 
POSTAL FIELD SERVICE SCHEDULES 
SEC. 702. Subsection (a) of section 3542 of title 39, United States 
Ante, p. 443. 
Codc, is amended to read as follows: 
"(a) There are established basic compensation schedules for posi-
tions in the postal field service which shall be known as the Postal 
76 STAT.] 
PUBLIC L
A
W 87-793-OCT. 11, 1962 
851 
Field Service Schedules and for which the symbol shall be 'PFS'. 
Each such schedule shall be in effect for the period specified with 
respect to such schedule. Except as provided in sections 3543 and 
3544 of this title, basic compensation shall be paid to all employees 
in accordance with these schedules. 
Infra. 
Post, 
p. 853. 
"POSTAL FIELD SERVICE SCHEDULE I 
' (To be effective tor the period beginning on the first day of the first pay period beginning on or after the 
date of enactment of this Act, and ending immediately prior to the applicable initial effective date of the 
second PFS schedule set forth below) 
"PFS 
1 
2 
3 
4 
6 
6 
7 
8 
9 
10 
11 
12 
13-
14 
If, 
16 
17 
18 . 
19 
20 
1 
$3,695 
3,906 
4,230 
4,666 
4,965 
.5,365 
5,805 
6.285 
6,805 
7,395 
8,045 
8,840 
9,725 
10.705 
11,780 
12.955 
14,260 
15,500 
16,750 
18,000 
2 
$3,725 
4,040 
4,375 
4,726 
5,130 
5,545 
6,000 
6.495 
7.030 
7,640 
8,310 
9,135 
10,050 
11,060 
12,170 
13,385 
14,730 
16.000 
17,250 
18,500 
3 
$3,855 
4,175 
4,620 
4,885 
5,295 
5,725 
6,195 
6,705 
7.265 
7,885 
8,575 
9,430 
10,376 
11,415 
12,560 
13,815 
15,200 
16,500 
17,750 
19,000 
4 
$3,985 
4,310 
4,665 
5,045 
6,460 
5,905 
6.390 
6,916 
7.480 
8,130 
8,840 
9,725 
10,700 
11,770 
12,950 
14,245 
15,670 
i7.oon 
18,250 
19,500 
Peri 
6 
$4,115 
4,446 
4,810 
5,205 
5,625 
6.085 
6,585 
7,125 
7,705 
8,375 
9.106 
10,020 
11,026 
12,126 
13,340 
14,675 
16,140 
17,500 
18,7.50 
innum 
6 
$4,245 
4,680 
4,965 
5,365 
6,790 
6,265 
6,780 
7,335 
7,930 
8,620 
9,370 
10,315 
11,360 
12,480 
13,730 
15,106 
16,610 
18,000 
19,260 
rates and steps 
7 
$4,376 
4,716 
5,100 
6,526 
6.956 
6.446 
6,976 
7,646 
8,155 
8.865 
9,636 
10,610 
11,676 
12,835 
14,120 
16,636 
17,080 
18,600 
8 
$4,605 
4,860 
6,245 
5,685 
6,120 
6,625 
7.170 
7,765 
8,380 
9,110 
9,900 
10,905 
12,000 
13,190 
14,510 
15,965 
17,660 
9 
$4,636 
4,985 
5,390 
6.846 
6,286 
6.805 
7,366 
7,966 
8,606 
9,356 
10,165 
11,200 
12,325 
13,645 
14,900 
10 
$4,765 
5,120 
6,536 
6,006 
6,450 
6,985 
7,660 
8,175 
8,830 
9,600 
11 
$4,896 
6,266 
5,680 
6,165 
6,616 
7,165 
12 
$6,026 
6.390 
6,826 
6,326 
6,780 
7,346 
"POSTAL FIELD SERVICE SCHEDULE II 
'(To be effective on the first day of the first pay period beginning on or after January 1,1964, and thweafter) 
"PFS 
1 
2 
3 
4 
_ 
5 
6. 
7. 
8 
9 
10 
11 
12 
13 
14 
18. 
16. 
17. 
18 
19 
20 
Per annum rates and steps 
1 
$3,690 
4,010 
4,346 
4,690 
6,086 
6,600 
6,960 
6,440 
6,966 
7,650 
8,410 
9,270 
10,210 
11,240 
12,370 
13,626 
16,000 
16,600 
16,760 
18,000 
2 
$3,820 
4,145 
4,490 
4,860 
6,266 
6,688 
6,160 
6,668 
7,200 
7,900 
8,690 
9,676 
10,646 
11,610 
12,780 
14,076 
16,406 
16,000 
17,280 
18,600 
3 
$3,950 
4,280 
4,636 
6,010 
6,426 
6,870 
6,360 
6,870 
7,436 
8,160 
8,970 
9,880 
10,880 
11,980 
13,190 
14,626 
16,990 
16,600 
17,780 
19,000 
4 
$4,080 
4,415 
4,780 
6,170 
6,596 
6,066 
6,660 
7,086 
7,670 
8,400 
9,260 
10,186 
11,216 
12,360 
13,600 
14,976 
16,488 
17,000 
18,280 
19,600 
6 
$4,210 
4,660 
4,928 
6,330 
6,766 
6,240 
6,760 
7,300 
7,906 
8,660 
9,630 
10,490 
11,650 
12,720 
14,010 
16,426 
16,980 
17,800 
18,780 
6 
$4,340 
4,686 
8,070 
8,490 
8,938 
6,426 
6,980 
7,616 
8,140 
8,900 
9,810 
10,796 
11,888 
13,090 
14,420 
18,876 
17,476 
18,000 
19,280 
7 
$4,470 
4,820 
6,216 
6,660 
6,108 
6,610 
7,160 
7,730 
8,378 
9,160 
10,090 
11,100 
12,220 
13,460 
14,830 
16,328 
17,970 
18.800 
8 
$4,600 
4,966 
6,360 
6,810 
6,276 
6,798 
7,380 
7,946 
8,610 
9,400 
10,870 
11,406 
12,668 
13,880 
16,240 
16,776 
18.468 
9 
$4,730 
6,090 
6,506 
6,970 
6,446 
6,980 
7,680 
8,160 
8,848 
9.680 
10,680 
11,710 
12,890 
14.200 
18.660 
10 
$4,860 
8,226 
6,660 
6,130 
6,618 
7,166 
7.760 
8,378 
9,080 
9,900 
11 
$4,990 
6,360 
8,796 
6,290 
6,786 
7,380 
12 
$8,120 
6,496 
6,940 
6,460 
6,966 
7,638 
» 
RURAL CARRIER SCHEDULES 
SEC. 703. (a) Section 3543(a) of title 39, United States Code, is 
amended to read as follows: 
"(a) There are established basic compensation schedules which 
shall oe known as the Kural Carrier,Schedules, and for which the 
symbol shall be 'BCS'. Each such schedule shall be in effect for the 
period specified with respect to such schedule. 
852 
PUBLIC LAW 87-793-OCT. 11, 1962 
[76 
STAT. 
"RURAL 
CARRIER SCHEDULE 
I 
'(To be effective for the period beginning on the first day of the first pay period beginning on or after the 
date of enactment of this Act, and ending immediately prior to the applicable initial effective date of 
the second RCS Schedule set forth below) 
Carriers in rural deliv-
ery service: 
Fixed compensation 
per annum 
Compensation per 
mile per annum for 
each mile up to 30 
miles of route 
— 
For each mile of route 
over 30 miles 
—. 
"Per annum rates and steps 
1 
$2,027 
75 
24 
2 
$2,127 
77 
24 
3 
$2,227 
79 
24 
4 
$2,327 
81 
24 
5 
$2,427 
83 
24 
6 
$2,527 
85 
24 
7 
$2,627 
87 
24 
8 
$2,727 
89 
24 
9 
$2,827 
91 
24 
10 
$2,927 
93 
24 
11 
$3,027 
95 
24 
12 
$3,127 
97 
24 
"RURAL CARRIER SCHEDULE II 
'(To be effective for the period beginning on the first day of the first pay period beginning on or after 
January 1,1964, and thereafter) 
74 Stat. 646. 
Substitute of 
record. 
Post, 
p. 854. 
74 Stat. 649. 
Carriers in rural deliv-
ery service: 
Fixed 
compensation 
Compensation per 
mile per annum for 
each mile up to 30 
miles of route 
For each mile of route 
over 30 miles 
"Per annum rates and steps 
1 
$2,080 
77 
25 
2 
$2,180 
79 
25 
3 
$2,280 
81 
25 
4 
$2,380 
83 
25 
5 
$2,480 
85 
25 
6 
$2,580 
87 
25 
7 
$2,680 
89 
25 
8 
$2,780 
91 
25 
9 
$2,880 
93 
25 
10 
$2,980 
95 
25 
11 
$3,080 
97 
25 
12 
$3,180 
99 
25" 
(b) Section 3543(c) of title 39, United States Code, is amended 
to read as follows: 
"(c) The Postmaster General may pay such additional compen-
sation as he may determine to be fair and reasonable in each indi-
vidual case to rural carriers serving heavily patronized routes." 
(c) The first sentence of section 3543(f) of title 39, United States 
Code, is amended to read as follows: "In addition to the compensation 
provided in the Rural Carrier Schedule, each rural carrier shall be 
paid for equipment maintenance a sum equal to— 
"(1) 12 cents per mile for each mile or major fraction of a 
mile scheduled, or 
" (2) $4.20 per day, whichever is greater." 
(d) Section 3543 of title 39, United States Code, is amended by 
adding thereto new subsections (i) and (j) as follows: 
"(i) Each person serving as a substitute of record on the effective 
date of this subsection shall be placed in step 2 of the Rural Carrier 
Schedule and he shall be advanc-ed by step-increases, on the basis of 
time on the rolls prior to the effective date, in accordance with the 
schedule of step-increases provided in section 3552, except that no 
such person shall be so advanced to a step higher than the step to 
which a regular carrier with the same length of service would have 
advanced prior to such effective date. Thereafter, he shall be ad-
vanced by step-increases, pursuant to the provisions of sections 3552 
and 3553 of this title. On and after the effective date of this sub-
section, each substitute rural carrier shall be paid the daily rate, 
based on the step attained by him, for the route on which service is 
performed. 
"(j) Each temporary rural carrier who, on the effective date of this 
subsection, is serving on a vacant route pending the appointment of a 
76 STAT.] 
PUBUC LAW 87-793-OCT. 11, 1962 
853 
regular rural carrier shall be placed in step 2 and shall be advanced 
by step-increases on the basis of any prior substitute or temporary 
rural carrier service in accordance with the schedule of step-increases 
provided in section 3552." 
Post, 
p. 8 5 4 . 
F O U R T H 
C L A S S 
O F F I C E 
S C H E D U L E S 
SEC. 704. (a) Section 3544(a) of title 39, United States Code, is 
amended to read as follows: 
" (a) There are established basic compensation schedules which shall 
be known as the Fourth Class Office Schedules, and for which the 
symbol shall be 'FOS', for postmasters in post offices of the fourth 
class. Each such schedule shall be in effect for the period specified 
with respect to such schedule. Each such schedule is based upon the 
gross postal receipts as contained in returns of the post office for the 
calendar year immediately preceding. 
Basic compensation shall be 
paid to postmasters in post offices of the fourth class in accordance with 
these schedules. 
" F O U R T H CLASS O F F I C E S C H E D U L E I 
" ( T o be effective for the period beginning on the first day of the first pay period beginning on or after the 
date of enactment of this Act and ending immediately prior to the appUcable initial effective date of the 
second FOS schedule set forth below) 
'Gross receipts 
$1,300 to $1,499.99 
$900 to $1,299.99.. 
$600 to $899.99-.. 
$350 to $699.99-.. 
$250 to $349.99-.. 
$200 to $249.99-.. 
$100 to $199.99—. 
Under $100 
Per annum rates and steps 
53,277 
3,003 
2,457 
1,911 
1,366 
1,092 
820 
545 
$3,386 
3,102 
2,540 
1,973 
1,410 
1,128 
846 
562 
$3,495 
3,201 
2,623 
2,035 
1,454 
1,164 
872 
579 
$3,604 
3,300 
2,706 
2,097 
1,498 
1,200 
53,713 
3,399 
2,789 
2,159 
1,542 
1,236 
924 
613 
$3,822 
3,498 
2,872 
2,221 
1,586 
1,272 
950 
$3,931 
3,697 
2,955 
2,283 
1,630 
1,308 
976 
647 
$4,040 
3,696 
3,038 
2,345 
1,674 
1,344 
1,002 
664 
$4,149 
3,795 
3,121 
2,407 
1,718 
1,380 
1,028 
681 
10 
11 
$4,258 
3,894 
3,204 
2,469 
1,762 
1,416 
1,054 
$4,367 
3,993 
3,287 
2,531 
1,806 
1,452 
1,080 
715 
12 
$4,476 
4,092 
3,370 
2,693 
1,850 
1,488 
1,106 
732 
74 Stat. 6 4 7 . 
" F O U R T H CLASS S C H E D U L E II 
•(To be effective on the first day of the first pay period begiiming on or after January 1,1964, and thereafter) 
'Gross receipts 
Per a n n u m rates and steps 
9 
10 
11 
12 
$1,300 to $1,499.99 
$900 to $1,299.99.. 
$600 to $899.99--. 
$350 to $599.99--. 
$250 to $349.99---
$200 to $249.99--. 
$100 to $199.99.-. 
Under $100 
$3,426 
3,140 
2,569 
1,998 
1,428 
1,142 
857 
$3,640 
3,243 
2,655 
2.063 
1,474 
1,179 
884 
588 
$3,654 
3,346 
2,741 
2,128 
1,520 
1,216 
91! 
607 
$3,768 
3,449 
2,827 
2,193 
1,666 
1,253 
938 
626 
$3,882 
3„552 
2,913 
2,258 
1,612 
1,290 
965 
645 
$3,996 
3,6,')5 
2,999 
2,323 
1,6,58 
1,327 
992 
664 
$4,110 
3,758 
3,085 
2,388 
1,704 
1,364 
1,019 
683 
$4,224 
3,861 
3,171 
2,453 
1,750 
1,401 
1,046 
702 
$4,338 
3,964 
3,257 
2,618 
1,796 
1,438 
1,073 
721 
$4,452 
4,067 
3,343 
2,583 
1,842 
1,475 
1,111 
740 
$4,566 
4,170 
3,429 
2,648 
1,888 
1,612 
1,127 
759 
$4,680 
4,273 
3,516 
2,713 
1,934 
1,649 
1,154 
778" 
(b) Section 3544(b) of title 39, United States Code, is amended 
to read as follows: 
"(b) The basic salary of postmasters in fourth-class post offices 
shall be readjusted for changes in gross receipts at the start of the 
first pay period after the beginning of each fiscal year. When a post 
office is restored to a gross receipts category held by it prior to 
relegation to a lower gross receipts category, the postmaster's basic 
salary may be adjusted to the highest salary step held by him when 
the post office was in the higher gross receipts category. In all other 
cases, in adjusting a postmasters basic salary under this section, the 
basic salary shall be fixed at the lowest step which is higher than 
the basic salary received by the postmaster at the end of the pre-
ceding fiscal year. If there is no such step the basic salary shall be 
fixed at the highest step for the adjusted gross receipts of the office. 
G r o s s r e c e i p t s 
c a t e g o r y . 
854 
PUBLIC LAW 87-793-OCT. 11, 1962 
[76 STAT. 
Infra. 
74 Stat. 649. 
Ante, 
p. 850. 
74 Stat. 649. 
74 Stat. 651. 
Each increase in basic salary because of change in gross receipts shall 
be deemed the equivalent of a step-increase under section 3652 of 
this title and the waiting period, for purposes of advancement to 
the next step, shall begin on the date of adjustment." 
SEC. 705. Section 3552 of title 39, United States Code, is amended 
to read as follows: 
'*§ 3552. Automatic advancement by step increases 
"(a) (1) Each employee in levels 1 through 6 of the Postal Field 
Service Schedule, each employee subject to the Rural Carrier Schedule, 
and each employee subject to the Fourth Class Office Schedule, who 
has. not reached the highest step for his position, shall be advanced 
successively to the next higher step as follows: 
"(A) To steps 2, 3, 4, 5, 6, and 7—at the beginning of the first 
pay period following the completion of fifty-two calendar weeks 
of satisfactory service; and 
"(B) To steps 8 and above—at the beginning of the first pay 
period following the completion of one hundred and fifty-six 
calendar weeks of satisfactory service. 
"(2) Each employee in the postal field service in level 7 or above 
of the Postal Field Service Schedule, who has not reached the highest 
step for his position, shall be advanced successively to the next higher 
step, as follows: 
"(A) To steps 2, 3, and 4—at the beginning of the first pay 
period following the completion of fifty-two calendar weeks of 
satisfactory service; 
"(B) To steps 5, 6, and 7—at the beginning of the first pay 
period following the completion of one hundred and four cal-
endar weeks of satisfactory service; and 
"(C) To steps 8 and above—at the beginning of the first pay 
period following the completion of one hundred and fifty-six 
calendar weeks of satisfactory service. 
"(3) The receipt of an equivalent increase during any of the wait-
ing periods specified in this subsection shall cause a new full waiting 
period to commence for further step-increases. 
" (b) Any increase in basic compensation granted by law on or after 
the date of enactment of the Postal Employees Salary Adjustment Act 
of 1962, to employees in the postal field service shall not be deemed 
to be an equivalent increase in basic compensation within the meaning 
of subsection (a) of this section. 
"(c) The benefit of successive step-increases shall be preserved, 
under regulations prescribed by the Postmaster General, for employees 
whose continuous service is interrupted by service in the armed 
services." 
SEC. 706. Section 3554 of title 39, United States Code, is amended 
to read as follows: 
'^§ 3554. Compensation of certain temporary employees 
"Temporary employees hired for a continuous period of one year 
or less for a position in the postal field service shall be paid basic 
compensation at the entrance step of the position to which they are 
appointed.". 
SEC. 707. Section 3559 of title 39, United States Code, is amended 
to read as follows: 
"§3559. Promotions 
"An employee who is promoted to a position in the Postal Field 
Service Schedule which is not more than two salary levels above the 
salary level of the position from which promoted snail be paid basic 
compensation at the lowest step of the higher salary level which ex-
ceeds his existing basic compensation by not less than two steps of 
76 STAT. ] 
PUBUC LAW 87-793-OCT. 11, 1962 
855 
the salary level from which promoted. 
An employee who is pro-
moted to a position in the Postal Field Service Schedule which is 
more than two salary levels above the level of the position from 
which promoted shall be paid basic compensation at the lowest step 
of the higher salary level which exceeds his existing basic compensa-
tion by not less than three steps of the salary level from which 
promoted. If there is no step in the salary level to which the em-
ployee is promoted which exceeds his existing basic compensation 
by at least the amount of the specified difference, the employee shall 
be paid the rate for the maximum step of the salary level to which 
promoted, or his existing basic compensation, whichever is higher.". 
SEC. 708. Subsection (a)(4) of section 6402 of title 39, United 
States Code, is amended to read as follows: 
"(4) delivery and collection service may not be established or 
extended under a star route contract on a rural route except when 
such rural route does not meet the minimum standards established 
by the Postmaster General, and becomes vacant; and". 
SEC. 709. Section 3101 of title 39, United States Code, is amended 
by deleting paragraphs (5) and (6), and inserting in lieu thereof, the 
following: 
"(5) 'basic salary' and 'basic compensation' mean the rate of 
annual or hourly compensation specified by law, exclusive of over-
time and night differential.". 
SEC. 710. Subsection 3541(d) of title 39, United States Code, is 
amended by (a) inserting in paragraph (3) thereof, after "rural car-
riers," the phrase "(other than substitute rural carriers,)" and (b) 
adding a new paragraph (5) as follows: 
"(5) To compute the daily rate of basic compensation for 
substitute rural carriers, the annual rate of compensation shall 
be divided by 304.". 
Star route con-
tract. 
74 Stat. 696. 
Definitions. 
74 Stat. 607. 
Compensation^ 
74 Stat. 644. 
CONVERSION AS OF T H E FIRST PAY PERIOD BEGINNING ON OR AFTER T H E 
DATE OF ENACTMENT OF T H I S ACT 
SEC. 711. (a) The basic compensation of each employee subject to 
Postal Field Service Schedule I or Rural Carrier Schedule I, as the 
case may be, on the effective date of such schedule shall be determined 
as follows: 
(1) Each employee shall be assigned t^ the same numerical 
level and step he was in prior to the effective date of such sched-
ule, except that employees in the first four levels of the Postal 
Field Service Schedule and employees (except empiloyees subject 
to section 3543(j) of title 39, United States Code) in the Rural 
Carrier Schedule shall be advanced as follows: Employees in 
step 1 to step 2 of the new schedule; step 2 to step 3; step 3 to 
step 4; step 4 to step 5; step 5 to step 6; step 6 to step 7; step, 
7 to step 8. If changes in level or step would otherwi^ ocStijr 
on the effective date of such schedule without regard to the e»-' 
actment of such schedule, such changes shall be deemed to have 
occurred prior to conversion under this paragraph. 
(2) In addition to conversion under paragraph (1) of this 
subsection, each employee shall be advanced one additional step 
for each longevity step which he had earned on or prior to such 
conversion. 
(3) Credit toward the next step-increase (other than toward 
longevity steps) earned by an employee who had not reached 
step 7 or who is not advanced to step 7 under paragraph (1) prior 
to the effective date of such schedule shall oe creditable under 
Jiubsection 3552(a) and section 3663 of title 3Q, United States 
Ante, 
852. 
pp. 851, 
Ante, 
p. 852. 
Ante, 
p. 854. 
74 Stat. 649. 
856 
PUBLIC LAW 87-793-OCT. 11, 1962 
[76 STAT. 
Code, toward further step-increases if no step-increases were 
granted pursuant to paragraph (2) of this subsection. 
Credit 
earned toward longevity step-increases prior to the effective date 
of such schedule shall not be creditable toward further step-
Ante, p. 854. 
increases pursuant to subsection 3552(a), and section 3553 of 
74 Stat. 649. 
title 39, United States Code. 
(b) The basic compensation of each postmaster subject to the 
Ante, p. 853. 
Fourth Class Office Schedule I on the effective date of such schedule 
shall be determined as follows: 
(1) Each postmaster shall be assigned to the same receipts 
category and numerical step lie was in prior to the effective date 
of such schedule. If changes in receipts category or step would 
otherwise occur on the effective date of such schedule without 
regard to the enactment of such schedule, such changes in receipts 
category or step shall be deemed to have occurred prior to 
conversion. 
(2) Postmasters who, as of the effective date of this schedule, 
have not reached step 7, shall retain credit for advancement to 
the next step under section 3552(a) and section 3553 of title 39, 
United States Code, if no step-increases are granted pursuant to 
paragraph 3 of this subsection. Credit earned toward longevity 
step-increases prior to the effective date of such schedule shall 
not be creditable toward further step-increases under section 
3552(a) and section 3553 of title 39, United States Code. 
(3) For each longevity step earned on or prior to the effective 
date of such schedule postmasters shall be advanced one step, 
(c) If the existing basic compensation of any employee subject to 
39 use 3542- 
the Postal Field Service Schedule, Rural Carrier Schedule, or Fourth 
Class Office Schedule, as the case may be, is greater than the rate 
established by subsection (a) or (b) of this section, he shall be placed 
in the first step of such schedule which exceeds his existing basic 
compensation; if the existing basic compensation is greater than any 
numerical step, his existing basic compensation shall be established 
as his basic compensation. 
CONVERSION AS OF T H E FIRST PAY PERIOD BEGINNING ON OR AFTER 
JANUARY 1, 19 64 
SEC. 712. The basic compensation of each employee subject to the 
Ante, pp.851- 
Postal Field Service Schedule II, Rural Carrier Schedule II, or 
®
*
^
* 
Fourth Class Office Schedule II, as the case may be, on the effective 
date of such schedule shall be determined as follows: 
(1) Each employee shall be assigned to the same numerical 
step for his position which he had attained prior to the effective 
date of such schedule. If changes in levels, receipts categories, 
or steps would otherwise occur on the effective date of such 
schedule without regard to enactment of such schedule, such 
changes shall be deemed to have occurred prior to conversion. 
(2) If existing basic compensation is greater than the rate to 
which the employee is converted under paragraph. (1) of this 
section, the employee shall be placed in the lowest step which 
exceeds his basic compensation; if the existing basic compensation 
exceeds the maximum step of his position, his existing basic com-
pensation shall be established as his basic compensation. 
74 Stat. 584,585; 
SEC. 713. Subject to sections 711(c) and 712(2) of this title, rates 
Ante, p. 835. 
fyf compensation fixed by reason of section 3560 of title 39, United 
75 Stat. 569; 
States Code, shall not be increased by this title, notwithstanding any 
Poat, p. 857. 
provision of such section to the contrary. 
3544. 
76 STAT. ] 
PUBLIC LAW 87-793-OCT. 11, 1962 
857 
BASIC SALARY IN CASES OF ASSIGNMENTS OF POSTAL EMPLOYEES 
SEC. 714. (a) Section 3335(b) of title 39, United States Code, is 
74 stat.eu. 
amended by adding at the end thereof the following sentence: "The 
Postmaster General may pay, as he deems advisable, in cases of such 
assignments, a basic salary computed in accordance with the provisions 
of such section 3559 without regard to the requirement in this subsec- 
Ante. p. 854. 
tion of assignment for more than thirty days in a calendar year.". 
(b) Each payment of an increase in basic salary which was made 
prior to the date of enactment of this section for services performed 
for periods of thirty days or less in any calendar year in the course of 
an assignment referred to in section 3335(b) of title 39, United States 
Code, by a postal field service employee assigned to duties and respon-
sibilities of a higher salary level, and which would have been author-
ized by such section 3335 (b), if such services had been performed in 
the course of such assignment after the completion by such employee 
of thirty days of service in any calendar year in such higher salary 
level, are hereby validated to the same extent as if such services had 
been performed after the completion of thirty days of service in any 
calendar year in the course of such assignment. 
Payments of increases 
validated by this subsection shall be considered as basic salary for the 
purposes of the Civil Service Retirement Act (5 U.S.C. 2251-2267). 
70 stat. 743. 
SALARY PROTECTION 
REVISION 
SEO. 715. (a) Section 3560(a) (1) of title 39, United States Code, 
7
S stat. 559. 
is amended to read as follows: 
"(1) basic salary and salary level, with respect to the Postal 
Field Service Schedule,". 
(b) Section 3560 (b) (4) of title 39, United States Code, is amended 
to read as follows: 
"(4) who, for two continuous years immediately prior to such 
reduction in salary standing, served in the postal field service 
with any salary standing higher than the salary standing to which 
he is reduced; and ". 
(c) Section 3560(c) of title 39, United States Code, is amended— 
(1) by striking out the period at the end of paragraph (B) 
and inserting "; or" in lieu of such period, and 
(2) by adding at the end of such section 3560(c) the following 
paragraph: 
"(C) the amount of the rate in the lowest salary standing which 
such employee held during the two years immediately preceding 
such reduction in salary standing augmented by each step increase 
which he would have earned in such salary standing and by each 
increase provided by law in such salary rate.". 
(d) (1) Subject to paragraph (2) of this section, the amendments 
made by this section to sections 3560(a) (1), 3560(b) (4), and 3560(c) 
of title 39, United States Code, shall apply only with respect to reduc-
tions in salary standing occurring on or after the date of enactment 
of this Act. 
(2) Payments not authorized by section 3560 of title 39, United 
States Code, which were made prior to the date of enactment of this 
Act to employees in the postal field service in connection with reduc-
tions in salary standing and which would have been authorized under 
such section 3560 if the amendments made by this section to subsections 
(b) (4) and (c) of such section 3560 had been in effect at the time 
such payments were made, are hereby validated to the same extent 
as if such amendments had been in effect at such time. 
858 
PUBLIC LAW 87-793-OCT. 11, 1962 
[76 
STAT. 
39 u s e 3101, 
3103-3105, 3111-
3116. 
RULES FOR SPECIAL COMPENSATION 
SEC. 716. Chapter 41 of title 39, United States Code, is amended 
by adding immediately following section 3105 a new section 3106 
as follows: 
**^ 3106. Special compensation rules 
74 Stat. 645-647. 
"In ordcp that the basic compensation schedules in sections 3542, 
3543, and 3544 of this title may be used equitably and with maximum 
effect to attract and motivate employees, the Postmaster General 
may prescribe regulations pursuant to which he may, within the 
limit of available appropriations, grant to any officer or employee 
Ante, p. 854. 
before the expiration of the periods prescribed by section 3552, step-
increases in recognition of extra competence: Provided, 
That no 
officer or employee shall be eligible under this section for more than 
one such additional step-increase within any period of fifty-two 
weeks, and such increase shall not be considered to be an equivalent 
increase." 
PERSONNEL REQUIREMENTS 
74 Stat. 609; 
75 Stat. 795; 
SEC. 717. (a) Section 3301 of title 
amended to read as follows: 
39, United States Code, is 
5 u s e 43 note. 
"§ 3301. Personnel requirements 
"The Postmaster General shall determine the personnel require-
ments of the postal field service, and fix the number of supervisors 
and other employees in that service, except that there may not be at 
any one time more than one assistant postmaster employed at any 
post office or a total of 70 employees assigned to salary levels 18, 19, 
and 20 in the postal field service." 
(b) Section 1310(a) of the Act of November 1,1951 (65 Stat. 757), 
as amended, which fixes a ceiling on permanent employees in the 
Federal Government, is amended by inserting after the word "Fro-
vided,''^ the following: "That increases in the number of permanent 
personnel in the Postal Field Service not exceeding 10 per centum 
above the total number of its permanent employees on September 
1, 1950, shall not be chargeable to this limitation: And 
provided 
further,^\ 
CONEORMING AMENDMENT 
SEC. 718. (a) The table of contents of chapter 41 of title 39, United 
States Code, is amended by adding after the heading entitled "EM-
PLOYEES GENERALLY", the following: 
"3106. Special compensation rules". 
(b) The table of contents of chapter 45 of title 39, United States 
Code, is amended by deleting 
"3558. Longevity step-increases". 
REPEALS 
SEC. 719. Sections 101 through 105 of the Act of July 1, 1960 (74 
74 Stat. 296-298. Stat. 296, PubUc Law 86-568), and section 3558 of title 39, United 
74 Stat. 650. 
States Code, are repealed. 
E F F E C T I V E 
DATES 
SEC. 720. Except as otherwise expressly provided in this title, the 
provisions of this title shall become effective on the first day of the 
first pay period which begins on or after the date of enactment of 
this Act, except that section 712 (conversion rules for second postal 
field service salary increases) shall become effective on the first day 
of the first pay period which begins on or after January 1,1964. 
39 u s e 3101. 
39 u s e 3501. 
76 STAT.] 
PUBLIC LAW 87-793-OCT. 11, 1962 
859 
TITLE IV—DEPARTMENT OF MEDICINE AND SURGERY IN THE VETERANS' 
ADMINISTRATION 
SEC. 801. (a) Section 4103 of title 38 of the United States Code, 
relating to the appointment and annual salaries of the Chief Medical 
Director and certain other officers of the Department of Medicine and 
Surgery of the Veterans' Administration, is amended by striking out 
the words "not to exceed eight Assistant Chief Medical Directors" in 
subsection (a) and inserting in lieu thereof the words "not to exceed 
five Assistant Chief Medical Directors, such Medical Directors as may 
be designated to suit the needs of the Department,". 
(b) Such section is further amended by striking out subsections (d) 
to (i), inclusive, and inserting in .lieu thereof the following: 
"(d) Each Assistant Chief Medical Director shall be appointed by 
the Administrator upon the recommendation of the Chief Medical 
Director and shall be paid a salary of $20,000 a year. 
"One Assistant Chief Medical Director shall be a qualified doctor 
of dental surgery or dental medicine who shall be directly responsible 
to the Chief Medical Director for the operations of the Dental Service. 
"(e) Medical Directors, during their period of service as such, shall 
be paid a salary of $18,500 minimum to $19,500 maximum a year. 
"(f) The Director of Nursing Service shall be a qualified registered 
nurse, appointed by the Administrator, and shall be responsible to the 
Chief Medical Director for the operation of the Nursing Service. 
During the period of service as such, the Director of Nursing Service 
shall be paid, effective on the first day of the first pay period beginning 
on or after— 
"the date of enactment of the Federal Salary Reform Act of 
1962, a salary of $14,565 minimum to $17,925 maximum a year; 
"January 1, 1964, a salary of $15,665 minimum to $19,270 
maximum a year, 
"(g) The Administrator may appoint a chief pharmacist and a 
chief dietitian. 
During the period of his service as such, the chief 
pharmacist and the chief dietitian shall be paid, effective on the first 
day of the first pay period beginning on or after— 
"the date of enactment of the Federal Salary Reform Act of 
1962, a salary of $14,565 minimum to $17,925 maximum a year; 
"January 1,1964, a salary of $15,665 minimum to $19,270 maxi-
mum a year. 
"(h) Except as provided in subsection (j), any appointment under 
this section shall be for a period of four years but persons so appointed 
shall be subject to removal by the Administrator for cause. 
"(i) Reappointments may be made for successive like periods. 
"(j) The Administrator may designate a member of the Chaplain 
Service of the Veterans' Administration as Director, Chaplain Serv-
ice, for a period of two years, subject to removal by the Administrator 
for cause. During the period that any such member serves as Direc-
tor, Chaplain Service, he shall be paid a salary, as determined by the 
Administrator, within the minimum and maximum salary limitations 
prescribed for grade GS-15 positions by the Classification Act of 
1949, as amended. 
Redesignations under this subsection may be made 
for successive like periods. An individual designated as Director, 
Chaplain Service, shall at the end of his period of service as Director 
revert to the position, grade, and status which he held immediately 
prior to being designated Director, Chaplain Service, and all service 
as Director, Chaplain Service, shall be creditable as service in the 
former position." 
72 Stat. 1243; 
74 Stat. 300. 
Ante, 
p. 841. 
Ante, 
p. 843. 
860 
PUBUC LAW 87-793-OCT. 11, 1962 
[76 STAT. 
72 Stat. 1245; 
74 Stat. 301. 
Ant«, 
p. 841. 
72 Stat. 1244. 
72 Stat. 1246. 
PHYSICIANS, DENTISTS, AND NURSES 
SEC. 802. Section 4107 of such title 38 relating to the minimum and 
maximum rates of annual salary of certain physicians, dentists, and 
nurses of the Department of Medicine and Surgery of the Veterans' 
Administration is amended to read as follows: 
"§ 4107. Grades and pay scales 
"(a) (1) Effective on the first day of the first pay period beginning 
on or after the date of enactment of the Federal Salary Reform Act 
of 1962, the grades and per annum full-pay ranges for positions pro-
vided in paragraph (1) of section 4104 of this title shall oe as follows: 
li-PHYSICIAN AND DENTIST SCHEDULE 
"Director grade, $16,000 minimum to $19,000 maximum. 
"Executive grade, $15,250 minimum to $18,750 maximum. 
"Chief grade, $14,565 minimum to $18,405 maximum. 
"Senior grade, $12,845 minimum to $16,245 maximum. 
"Intermediate grade, $11,150 minimum to $14,070 maximum. 
"Full grade, $9,475 minimum to $11,995 maximum. 
"Associate grade, $8,045 minimum to $10,165 maximum. 
(( 
NURSE 
SCHEDULE 
"Assistant Director grade, $12,845 minimum to $16,245 maximum. 
"Chief grade, $11,150 minimum to $14,070 maximum. 
"Senior grade, $9,475 minimum to $11,995 maximum. 
"Intermediate grade, $8,045 minimum to $10,165 maximum. 
"Full grade, $6,675 minimum to $8,700 maximum. 
"Associate grade, $5,820 minimum to $7,575 maximum. 
"Junior grade, $6,035 minimum to $6,565 maximum. 
"(2) Effective on the first day of the first pay period beginning on 
or after January 1,1964, the per annum full pay ranges for positions 
provided in paragraph (1) of section 4104 of this title shall be as 
follows: 
(( 
PHYSICIAN 
AND 
DENTIST 
SCHEDULE 
"Chief grade, $15,665 minimum to $19,785 maximum. 
"Senior grade, $13,615 minimum to $17,215 maximum. 
"Intermediate grade, $11,725 minimum to $14,805 maximum. 
"Full ^rade, $9,980 minimum to $12,620 maximum. 
"Associate grade, $8,410 minimum to $10,650 maximum. 
(( 
NURSE SCHEDUIJE 
"Assistant director grade, $13,615 minimum to $17,215 maximum. 
"Chief grade, $11,725 minimum to $14,805 maximum. 
"Senior grade, $9,980 minimum to $12,620 maximum. 
"Intermediate grade, $8,410 minimum to $10,650 maximum. 
"Full grade, $7,030 minimum to $9,100 maximum. 
"Associate grade, $6,090 minimum to $7,890 maximum. 
"Junior grade, $5,235 minimum to $6,810 maximum. 
"(b) No person may hold the director grade unless he is serving 
as a director of a hospital, domiciliary, center, or outpatient clinic 
(independent). No person may hold the executive grade unless he 
holds the position of chief of staff at a hospital, center, or outpatient 
clinic (independent), or the position of clinic director at an out-
patient clinic, or comparable position." 
SEC. 803. (a) Section 4108 of such title 38 which formerly prescribed 
the maximum amount of pay and allowances for medical, surgical, 
76 STAT.] 
PUBLIC LAW 87-793-OCT. 11, 1962 
or dental specialists of the Department of Medicine and Surgery of 
the Veterans' Administration is amended, effective on the date of 
enactment of this Act, to read as follows: 
"§ 4108. Administration 
"Notwithstanding any law, Executive order, or regulation, the 
Administrator shall prescribe by regulation the hours and conditions 
of Employment and leaves of absence of physicians, dentists, and 
nurses.". 
(b) The table of contents of chapter 73 of such title 38 is amended 
by striking out 
"4108. Specialist ratings." 
and inserting in lieu thereof 
"4108. Administration." 
861 
38 u s e 4101-
4115. 
DIRECTORS OF HOSPITALS, DOMICILIARIES, AND CENTERS 
SEC. 804. Section 4111(b) of such title 38, relating to the annual 
salary of certain individuals serving as director of a hospital, domi-
ciliary, or center, is amended, effective on the date of enactment of this 
Act, to read as follows: 
"(b) Notwithstanding any other provision of law, the. per annum 
salary rate of each individual serving as a director of a hospital, 
domiciliary, or center who is not a physician in .the medical service 
shall not be less than the rate of salary which he would receive under 
section 4107 of this title if his service as a director of a hospital, 
domiciliary, or center had been service as a physician in the director 
grade. This subsection shall not affect the allocation of any position 
of director of a hospital, domiciliary, or center to any grade of the 
General Schedule of the Classification Act of 1949, except with respect 
to changes in rate of salary pursuant to the preceding sentence, and 
shall not affect the applicability of the Performance Eating Act of 
1950 to any individual." 
SEC. 805. Except as otherwise expressly provided in this title, this 
title shall become effective on the first day of the first pay period which 
begins on or after the date of enactment of this Act. 
TITLE V—FOREIGN SERVICE ACT OF 1946 
72 Stat. 1247. 
Ante, 
p. 860. 
Ante, 
p. 843. 
5 u s e 1113. 
64 Stat. 1098. 
5 u s e 2001 
note. 
Effective date. 
SHORT TITLE 
SEC. 901. This title may be cited as the "Foreign Service Salary 
Foreign service 
Eeform Act of 1962". 
^^^^'^ ^•*°™ ^
*
=
* 
of 1962. 
FOREIGN SERVICE OFFICERS 
SEC. 902. The fourth sentence of section 412 of the Foreign Service 
Act of 1946, as amended (22 U.S.C. 867), is amended to read as 
follows: 
"On the first day of the first pay period which begins on or after 
the date of enactment of the Foreign Service Salary Reform Act of 
1962, the per annum salaries of Foreign Service officers within each 
of the other classes shall be as follows: 
60 Stat. 1003; 
72 Stat. 211. 
'Class 1. 
Class 2 
Class 3. 
Class 4. 
Class 5. 
Class 6. 
Class?. 
Class 8. 
$18,975 
15,900 
13,440 
11,150 
9,315 
7,705 
6,475 
5,540 
$19,650 
16,400 
13,885 
11,515 
9,620 
7,960 
6,690 
5,726 
$16,900 
14,330 
11,880 
9,925 
8,215 
6,906 
6,910 
$17,400 
14,775 
12,245 
10,230 
8,470 
7,120 
6,095 
$17,900 
15,220 
12,610 
10,535 
8,725 
7,336 
6,280 
$18,400 
15,665 
12,975 
10,840 
8.980 
7,550 
6,466 
$18,900 
16,110 
13,340 
11,146 
9,235 
7,766 
6,650 
862 
PUBLIC LAW 87-793-OCT. 11, 1962 
[76 STAT. 
"On the first day of the first pay period which begins on or after 
January 1, 1964, the per annum salaries of Foreign Service officers 
within each of the other classes shall be as follows: 
'Class 1. 
Class 2. 
Class 3. 
Class 4. 
Class 5. 
Class 6. 
Class 7. 
$18,975 
16,900 
14,265 
11,725 
9,695 
8,090 
6,810 
5,795 
$19,650 
16,400 
14,735 
1
2
,
1
1
0 
10,015 
8,355 
7,035 
5,990 
$16,900 
15,205 
12,495 
10,335 
8,620 
7,260 
6,185 
$17,400 
15,675 
12,880 
10,655 
8,885 
7,485 
6,380 
$17,900 
16,145 
13,265 
10,975 
9,150 
7,710 
6,575 
$18,400 
16,615 
13,650 
11,295 
9,415 
7,935 
6,770 
$18,900 
17,085 
14,035 
11,615 
9,680 
8,160 
6,966" 
60 Stat. 1003; 
72 Stat. 212. 
22 u s e 870. 
FOREIGN SERVICE STAFF OFFICERS AND EMPLOYEES 
SEC. 903. Section 415 of such Act is amended to read as follows: 
"SEC. 415. (a) Effective on the first day of the first pay period 
which begins on or after the date of enactment of the Foreign Service 
Salary Reform Act of 1962, there shall be ten classes of Foreiffli 
Service staff officers and employees, referred to hereafter as staff offi-
cers and employees, and the per annum salaries of staff officers and 
employees within each class shall be as follows: 
'Class 1-. 
Class 2.. 
Class 3.. 
Class 4-
Class 6-. 
Class 6-. 
Class 7.. 
Class 8.. 
Class 9.. 
Class 10 
$13,440 
11,150 
9,316 
7,705 
6,910 
6,225 
6,610 
5,060 
4,575 
4,110 
$13,886 
11,516 
9,620 
7,960 
7,140 
6,435 
5,800 
5,230 
4,725 
4,260 
$14,330 
11,880 
9,926 
8,215 
7,370 
6,645 
5,990 
5,400 
4,875 
4,390 
$14,775 
12,246 
10,230 
8,470 
7,600 
6,865 
6,180 
6,670 
5,025 
4,530 
$16,220 
12,610 
10,536 
8,725 
7,830 
7,065 
6,370 
5,740 
6,176 
4,670 
$15,666 
12,976 
10,840 
8,980 
8,060 
7,275 
6,560 
5,910 
5,326 
4,825 
$16,110 
13,340 
11,146 
9,235 
8,290 
7,486 
6,750 
6,080 
5,476 
4,980 
$16,655 
13,705 
11,450 
9,490 
8,620 
7,695 
6,940 
6,250 
6,626 
6,135 
$17,000 
14,070 
11,755 
9,745 
8,760 
7,905 
7,130 
6,420 
5,775 
5,290 
$8,980 
8,116 
7,320 
6,690 
5,930 
6,445 
"On the first day of the first pay period which begins on or after 
January 1,1964, the per annum salaries of staff officei-s and employees 
within each class shall be as follows: 
"Class 1-. 
Class 2.. 
Class 3.. 
Class 4.. 
Class 5.. 
Class 6.. 
Class 7.. 
Class 8.. 
Class 9.. 
Class 10 
$14,265 
11,725 
9,695 
8,090 
7,296 
6,570 
5,890 
5,270 
4,716 
4,216 
$14,736 
12,110 
10,015 
8,365 
7,536 
6,786 
6,085 
6,446 
4,870 
4,355 
$15,205 
12,496 
10,335 
8,620 
7,775 
7,000 
6,280 
5,620 
5,026 
4,496 
$16,676 
12,880 
10,655 
8,885 
8,016 
7,216 
6,476 
6,796 
6,180 
4,635 
$16,146 
13,265 
10,976 
9,150 
8,255 
, 7,430 
6,670 
5,970 
5,335 
4,775' 
$16,615 
13,650 
11,295 
9,415 
8,496 
7,646 
6,865 
6,146 
5,490 
4,916 
$17,086 
14,036 
11,615 
9,680 
8,736 
7,860 
7,060 
6,320 
6,645 
5,060 
$17,655 
14,420 
11,935 
9,945 
8,975 
8,075 
7,256 
6,495 
5,800 
6,216 
$18,025 
14,805 
12,265 
10,210 
9,215 
8,290 
7,450 
6,670 
6,955 
6,370 
$9,455 
8,506 
7,645 
6,845 
6,110 
6,625 
Supra. 
"(b) Notwithstanding the provisions of subsection (a) of this sec-
tion, the Secretary may, under such regulations as he may prescribe, 
classify positions at levels belqw class 10, and establish salary r a t ^ 
therefor at lower rates than those prescribed by this section, for Ameri-
can employees recruited abroad who are not available or are not 
qualified for transfer to another post and who perform duties of a 
more routine nature than are generally performed at the class 10 
level." 
CONVERSION 
SEC. 904. Foreign Service officers, Reserve officers, and F o r e i ^ 
Service staff officers and employees who are entitled to receive basic 
compensation immediately prior to the effective date of this title at 
one of the rates provided by section 412 or 415 of the Foreign Service 
Act of 1946, shall receive basic compensation on and after the effective 
date of this title at the rate of their class determined to be appropriate 
76 STAT. ] 
PUBLIC LAW 87-793-OCT. 11, 1962 
863 
by the Secretary of State: Provided, That staff officers and employees 
shall be transferred to the neAv staff classes established by this Act 
as follows: 
Corresponding new class un-
Present class under section 
der section 415 of the For-
416 of the Foreign Ser\'ice 
elgn Service Act of 1946, as 
Act of 1946 
amended 
FSS- 1 
FSS- 1 
FSS- 2 
FSS- 1 
FSS- 3 
- FSS- 2 
FSS- 4 
FSS- 2 
FSS- 5 
FSS- 3 
FSS- 6 
FSS- 3 
FSS- 7 
- 
FSS- 4 
FSS- 8 
FSS- 5 
FSS- 9 
FSS- 6 
FSS-10 
FSS- 7 
FSS-11 
- 
FSS- 8 
FSS-12 
FSS- 9 
FSS-13 
FSS-10 
FSS-14 and below 
C) 
1 Remain a t present class and salary rate until revised pursuant to new section 415(b). 
CONFORMING 
AMENDMENTS 
SEC. 905. The heading of section 642 of the Foreign Service Act of 
1946 is amended by deleting the words "and longevity" and section 
74Stat. 837. 
642 is amended by deleting " ( a ) " in the first paragraph and by de- 
^^ use ioi7. 
leting subsection (b) in its entirety. 
EFFECTIVE DATE 
SEC. 906. Except as otherwise expressly provided in this title, this 
title shall become effective on the first day of the first pay period which 
begins on or after the date of enactment of this Act. 
TITLE VI—MISCELLANEOUS SALARY PROVISIONS 
REVISION OF SALARY LIMITATIONS FOR CERTAIN SCIENTIFIC AND 
P R O F E S S I O N A L 
POSITIONS 
SEC. lOOL (a)(1) Section 2(b) of the Act of August 1,1947 (Pub- J 
lie Law 313, Eightieth Congress, as amended (75 Stat. 789; 5 U.S.G. 
1161-1163]), relating to the rates of compensation of certain scientific 
or professional positions, is amended to read as follows: 
"(b) The per annum rates of comj^ensation for positions established 
I^ursuant to the provisions of this Act shall not be less than the mini-
mum rate of grade 16 of the General Schedule of the Classification Act 
of 1949, as amended, nor more than the highest rate of grade 18 of the 
Ante, p. 843. 
General Schedule of such Act and shall be subject to the approval of 
the United States Civil Service Commission.". 
(2) The first section of such Act is amended by adding at the end 
thereof the following new subsection: 
75 stat. 789. 
"(g) the Librarian of Congress is authorized to establish and 
fix 
the 
s use 11 ex. 
compensation for not more than eight scientific or professional posi- 
'^ 
tions in the Library of Congress, each such position bein^ established 
to carry out research and development functions of the Library which , 
require the services of specially qualified personnel. 
Section 2(a) j 
shall not apply to positions established under this subsection." 
I 
(b) Section 1581 (b) of title 10 of the United States Code, relating 
7OA st«t. iit. 
to the rates of compensation of certain scientific or professional posi-
tions in the Department of Defense, is amended to read as follows: 
"(b) Subject to the Civil Service Commission's approval as to rates, 
the Secretary may 
fix 
the compensation for positions established under 
864 
PUBLIC LAW 87-793-OCT. 11, 1962 
[76 STAT. 
Ante, 
p 
50 use 
note. 
10 use 
64 Stat. 
. 843 
402 
1581. 
447. 
Ante, 
p. 843. 
75 Stat. 791. 
68 Stat. 948. 
75 Stat. 791. 
subsection (a). 
However, the per annum compensation may not be 
less than the minimum rate of grade 16 of the General Schedule of 
the Classification Act of 1949, as amended, nor more than the highest 
rate of grade 18 of the General Schedule of such Act.". 
(c) Section 4 of the Act of May 29, 1959 (73 Stat. 63; Public Law 
86-36), as amended by section 204 of the Act of October 4, 1961 (75 
Stat. 791; Public Law 87-367), authorizing scientific and professional 
positions in the National Security Agency, is amended by striking out 
", as amended by paragraph (34) (B) of the first section of the Act of 
September 2, 1958 (72 Stat. 1456; Public Law 85-861)". 
(d) The proviso contained in the first sentence of section 208(g) 
of the Public Health Service Act, as amended (42 U.S.C. 210(g)), 
relating to the rates of compensation of certain scientific, professional, 
and administrative personnel in the Public Health Service, is amended 
to read as follows: ": Provided, That the rates of compensation for 
positions established pursuant to the provisions of this subsection shall 
not be less than the minimum rate of grade 16 of the General Schedule 
of the Classification Act of 1949, as amended, nor more than the highest 
rate of grade 18 of the General Schedule of such Act, and shall be 
subject to the approval of the Civil Service Commission.". 
(e) The proviso contained in the second sentence of section 12 of 
the Act of May 29, 1884 (62 Stat. 198 as amended and supplemented; 
21 U.S.C. 113a), authorizing the Secretary of Agriculture to employ 
and fix the compensation of technical experts and scientists for re-
search and study of foot-and-mouth disease and other animal diseases, 
is amended to read as follows: ": Provided, That the number so em-
ployed shall not exceed five and that the maximum compensation for 
each shall not exceed the highest rate of grade 18 of the General 
Schedule of the Classification Act of 1949, as amended.". 
(f) Section 203(b) (2) of the National Aeronautics and Space Act 
of 1958 (72 Stat. 429; 42 U.S.C. 2473(b) (2)), as amended, authorizing 
the Administrator of the National Aeronautics and Space Adminis-
tration to establish and fix the compensation of four hundred and 
twenty-five scientific, engineering, and administrative positions, is 
amended by striking out, in the second sentence, ", except that (A) to 
the extent the Administrator deems such action necessary to the dis-
charge of his responsibilities, he may appoint and fix the compensa-
tion (up to a limit of $19,000 a year, or up to a limit of $21,000 a 
year lor a maximum of thirty positions) of and by inserting in lieu 
thereof ", except that (A) to the extent the Administrator deems such 
action necessary to the discharge of his responsibilities, he may appoint 
and fix the compensation (at not to exceed the highest rate of grade 
18 of the General Schedule of the Classification Act of 1949, as 
amended, or, for a maximum of thirty positions, not to exceed $21,000 
a year) of". 
(g) That part of the proviso in section 161d. of the Atomic Energy 
Act of 1954, as amended (71 Stat. 613; 42 U.S.C. 2201), fixing a limit 
of $19,000 on the compensation of scientific and technical personnel, 
is amended by striking out the words "up to a limit of $19,000)" and 
inserting in lieu thereof "up to a limit of the highest rate of grade 
18 of the General Schedule of the Classification Act of 1949, as 
amended)". 
(h) Section 302(f) of the Federal Aviation Act of 1958 (72 Stat. 
746; 49 U.S.C. 1343(d)), as amended, authorizing the Administrator 
of the Federal Aviation Agency to select, employ, and fix the compen-
sation of 23 positions at rates not to exceed $19,500 per annum, is 
amended by striking out "$19,500 per annum" and inserting in lieu 
thereof "the highest rate of grade 18 of the General Schedule of the 
Classification Act of 1949, as amended". 
76 STAT. ] 
PUBLIC LAW 87-793-OCT. 11, 1962 
865 
(i) Section 2 of the Act of June 14, 1948, as amended (62 Stat. 
441; 66 Stat. 43; 22 U.S.C. 290a), relating to the compensation of the 
United States representative and alternate on the Executive Board of 
the World Health Organization, is amended by striking out "Such 
representative shall be entitled to receive compensation at a rate not to 
exceed $12,000 per annum and any such alternate shall be entitled to 
receive compensation at a rate not to exceed $10,000 per annum", and 
inserting in lieu thereof "Such representative and any such alternate 
shall each be entitled to receive compensation at one of the rates pro-
vided by section 412 of the Foreign Service Act of 1946, as amended,". 
(j) Section 104(b) of the Mutual Educational and Cultural Ex-
change Act of 1961 (75 Stat. 530; Public Law 87-256) authorizing 
the fixing of the compensation of not to exceed ten employees with-
out regard to the Classification Act of 1949, is amended to read as 
follows: 
"(b) The President is authorized to employ such other personnel 
as he deems necessary to carry out the provisions and purposes of 
this Act, and of such personnel not to exceed ten may be compensated 
without regard to the provisions of the Classification Act of 1949, 
as amended, but not in excess of the highest rate of grade 18 of 
the general schedule established by such Act. 
Such positions shall 
be in addition to the number authorized by section 505 of the Classi-
fication Act of 1949, as amended." 
(k) (1) Section 625(b) of the Foreign Assistance Act of 1961 (75 
Stat. 449; Public Law 87-195), as amended, is amended by striking 
out "and of these, not to exceed eight may be compensated at a rate 
in excess of the highest rate provided ror grades of such general 
schedule but not in excess of $19,000 per year" and inserting in lieu 
thereof "but not in excess of the highest rate of grade 18 of such 
general schedule". 
(2) Section 625(c) of such Act is amended by striking out "and 
of these, not to exceed three may be compensated at a rate in excess 
of the highest rate provided for grades of such general schedule 
but not in excess of $19,000 per year" and inserting in lieu thereof 
"but not in excess of the highest rate of grade 18 of such general 
schedule". 
(1) Section 7(b) of the Peace Corps Act (75 Stat. 615; Public Law 
87-293) is amended by striking out "and of these not to exceed two 
may be compensated at a rate in excess of the highest rate provided 
for grades of such general schedule but not in excess of $19,000 per 
year" and inserting in lieu thereof "but not in excess of the highest 
rate of grade 18 of such general schedule". 
Ante, 
p. 861. 
22 u s e 2454. 
63 Stat. 954. 
5 u s e 107 1 
note. 
5 u s e llOS. 
22 u s e 23SS. 
22 u s e 2506. 
AGRICULTURAL STABILIZATION AND CONSERVATION 
COUNTY COMMITTEE 
EMPLOYEES 
SEC. 1002. The rates of compensation of persons employed by the 
county committees established pursuant to section 8(b) of the Soil 
Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)) shall 
be increased by amounts equal, as nearly as may be pr3,cticable, to 
the increases provided by title I I of this part for corresponding rates 
of compensation in the appropriate schedule or scale of pay. 
Ante, 
p. 843. 
ASSISTANT UNITED STATES ATTORNEYS 
S E C 1003. (a) The last paragraph of section 508 of title 28 of the 
United States Code is amended to read as follows: 
"Assistant United States attorneys and attorneys appointed under 
section 503 of this title—not more than $17,500." 
69 St«t. 10. 
78135 0-6—58 
866 
PUBLIC LAW 87-793-OCT. 11, 1962 
[76 STAT. 
(b) The rates of basic compensation of assistant United States 
attorneys whose basic salaries are fixed by section 508 of title 28, 
United States Code, shall be increased by 7% per centum effective 
on the first day of-the first pay period which begins on or after the 
date of enactment of this Act. 
60 » a t . 329. 
70 Stat. 739. 
Ante, 
p. 843. 
63 8t«t. 9S4 
fuse lOft 
T 
note. 
62 St«t.922; 
74 Stat. 303. 
EMPLOYEES I N T H E JUDICIAL BRANCH 
SEC. 1004. (a) The rates of basic compensation of officers and em-
ployees in or under the judicial branch of the Government whose 
rates of compensation are fixed by or pursuant to paragraph (2) of 
subdivision a of section 62 of the Bankruptcy Act (11 U.S.C. 102(a) 
(2)), section 3656 of title 18 of the United States Code, the third 
sentence of section 603, section 604(a) (5), or section 672 to 675 
inclusive, of title 28 of the United States Code, or section 107(a) (6) 
of the Act of Julv 31, 1956, as amended (5 U.S.C. 2206(a) (6)), are 
hereby increased oy two amounts, the first amount to be effective for 
the period beginning as of the first day of the first pay period which 
begins on or after the date of enactment of this Act, and ending im-
mediately prior to the first day of the first pay period which begins 
on or after January 1,1964, and the second amount to be effective on 
the first day of the first pay period which begins on or after Janu-
ary 1, 1964, and thereafter, which reflect the respective applicable 
increases j)rovided by title I I of this part in corresponding rates of 
compensation for officers and employees subject to the Classification 
Act of 1949, as amended. 
(b) The limitations provided by applicable law on the effective 
date of this section with respect to the aggregate salaries payable 
to secretaries and law clerks of circuit and district judges are hereby 
increased by two amounts, the first amount to be effective for the 
period beginning as of the first day of the first pay period which 
begins on or after the date of enactment of this Act, and enduitf 
immediately prior to the first day of the first pay period whicn 
begins on or after Januarv 1, 1964, and the second amount to be 
effective on the first day of the first pay period which begins on or 
after January 1, 1964, and thereafter, which reflect the respective 
applicable increases provided by title I I of this part in corresponding 
rates of compensation for officers and employees subject to the Clas-
sification Act of 1949, as amended. 
(e) Section 753(e) of title 28 of the United States Code (relating 
to the compensation of court reporters for district courts) is amended 
by striking out the existing salary limitation contained therein and 
inserting a new limitation'^to be eff^tive lor >the period beginning as 
of the first day of the first pay period which begins on or after the 
date of enactment of this Act, and ending immediately prior to the 
first day of the first pay period which begins on dr after January 1, 
1964, and a second new limitation effective on the first day of the 
first pay period which begins on or after January 1, 1964, and there-
after, which reflect the respective applicable increases provided by 
title I I of this part in corresponding rates of compensation for of-
ficers and employees subject to the Classification Act of 1949, as 
amended. 
EMPIiOYEES I N T H E LEGISLATIVE 
BRANCH 
SEC. 1005. (a) Each officer and employee in or under the legisla-
tive branch of the Government whose rate of compensation is in-
creased by section 5 of the Federal Employees Pay Act of 1946 shall 
be paid additional compensation at the rate of 7 per centum of his 
76 STAT. ] 
PUBLIC LAW 87-793-OCT. 11, 1962 
867 
gross rate of compensation (basic compensation plus additional com-
pensation authorized by law). 
(b) The basic compensation of each employee in the office of a 
Senator is hereby adjusted, effective on October 16, 1962, to the lowest 
multiple of $60 which will provide a gross rate of compensation not 
less than the gross rate such employee was receiving immediately 
prior thereto, except that the foregoing provisions of this subsection 
shall not apply in the case of any employee if on or before the fifteenth 
day following the date of enactment of this Act the Senator by whom 
such employee is employed notifies the disbursing office of the Senate 
in writing that he does not wish such provisions to apply to such 
employee. In any case in which, at the expiration of the time within 
which a Senator may give notice under this subsection, such Senator 
is deceased such notice shall be deemed to have been given. 
(c) Notwithstanding the provision referred to in subsection (d), 
the rates of gross compensation of the elected officers of the Senate 
(except the Presiding Officer of the Senate), the Legislative Counsel 
of the Senate, the Official Reporters of Debates of the Senate, the 
Parliamentarian of the Senate, the Senior.Counsel in the Office of the 
Legislative Counsel of the Senate, and the Chief Clerk of the Senate 
are hereby increased by 7 per centum. 
(d) The paragraph imposing limitations on basic and gross com-
pensation oi officers and employees of the Sena,te appearing under 
the heading "SENATE" in the Legislative Appropriation Act, 1956, 
as amended (74 Stat. 304; Public Law 8&-568), is amended to read 
as follows: 
"No officer or employee whose compensation is disbursed by the 
Secretary of the Senate shall be paid basic compensation at a rate 
in excess of $8,880 per annum, or gross compensation at a rate in 
excess of $18,880 per annum, unless expressly authorized by law." 
(e) The limitation on gross rate per hour per person provided by 
applicable law on the effective date of this section with respect to 
the folding of speeches and pamphlets for the Senate is hereby in-
creased by 7 per centum. The amount of such increase shall be com-
puted to the nearest cent, counting one-half cent and over as a whole 
cent. The provisions of subsection (a) of this section shall not apply 
to employees whose compensation is subject to such limitation. 
(f) Each officer or employee of the House of Representatives, 
whose compensation is disbursed by the Clerk of the House of Repre-
sentatives and is not increased automatically, or is not permitted to 
be increased administratively, by. reason of any other provision of 
this section, shall receive additional compensation at the rate of 7 per 
centum of the rate of his total annual compensation in effect im-
mediately prior to the effective date of this section. 
(g) The limitations on gross rate per thousand and gross rate 
per hour per person provided by applicable law on the effective date 
of this section with respect to the folding of speeches and pamphlets 
for the House of Representatives are hereby increased by 7 per centum. 
The amount of each such increase shall be computed to the nearest 
cent, counting one-half cent and over as a whole cent. 
(h) The additional compensation provided by this section shall 
be considered a part of basic compensation for the purposes of the 
Civil Service Retirement Act (5 U.S.C. 2251 and the following). 
70 9tat.743. 
(i) Notwithstanding any other provision of this section,, no rate 
of compensation which exceeds $21,500 shall be increased by this sec-
tion, and no increase provided by this section shall cause the gross 
rate of compensation (basic plus additional compensation authorized 
by law) or the total annual compensation of any officer or employee to 
exceed $21,500. 
868 
PUBLIC LAW 87-793-OCT. 11, 1962 
[76 STAT. 
(j) Insofar as the provisions of this section apply to officers and 
employees whose compensation is based on a monthly pay period which 
begins on the first day of the month, such provisions shall become 
effective on October 16, 1962. 
SAVING PROVISION" 
SEC. 1006. Notwithstanding any provision of this Act, no rate of 
basic, gross, or total annual compensation or salary shall be reduced 
by reason of the enactment of this Act. 
ABSORPTION OP COSTS 
SEC. 1007. (a) The departments, agencies, establishments, and cor-
porations in the executive branch shall absorb the costs of the increases 
m basic compensation provided by this Act to the fullest extent possible 
without seriously affecting the immediate execution of essential 
functions. 
(b) No request for additional or supplemental appropriations to 
meet the increases in basic compensation provided by this Act shall 
be transmitted to the Congress unless it is accompanied by a certifi-
cation of the Director of the Bureau of the Budget that the amounts 
requested are necessary to provide for the continued execution of es-
sential functions of the department, agency, or corporation concerned. 
(c) Pursuant to the objective of this section, heads of the executive 
branch activities concerned are directed to review with meticulous 
care each vacancy resulting from voluntary resignation, retirement, 
or death and to determine whether the duties of the position can be 
reassigned to other employees or whether the position can be abolished 
without seriously affecting the execution of essential functions. 
(d) Nothing contained in subsection (a) of this section shall be held 
or considered to require (1) the separation from the service of any 
individual by reduction in force or other personnel action or (2) the 
placing of any individual in a leave-without-pay status. 
EFFECTIVE DATE 
SEC. 1008. Except as otherwise expressly provided, this title shall 
become effective on the first day of the first pay period which begins 
on or after the date of enactment of this Act. 
CEILING PROVISION 
SEC. 1009. Except as provided in section 1005, no rate of compensa-
tion which exceeds $20,000 per annum shall be increased or established 
by or pursuant to this Act and no increase made by or pursuant to 
this Act shall cause any rate of compensation to exceed $20,000 per 
annum. 
PART III—ADJUSTMENT OF ANNUITIES 
SEC. 1101. (a) The annuity of feach person who, on the effective 
date of this section, is receiving or entitled to receive an annuity from 
the civil service retirement and disability fund shall be increased by 
5 per centum of the amount of such annuity. 
(b) The annuity of each person who receives or is entitled to re-
ceive an annuity from the civil service retirement and disability fund 
commencing during the period which begins on the day following 
the effective date of this section and ends five years after such date, 
shall be increased in accordance with the following table: 
76 STAT. ] 
PUBLIC LAW 87-793-OCT. 11, 1962 
869 
The annuity shall be 
If the annuity commences between— 
increased by— 
January 2, 1963, and December 31, 1963 
4 iter centum 
January 1, 1964, and December 31, 1964 
3 per centum 
January 1, 1965, and December 31, 1965 
2 per centum 
January 1, 1966, and December 31, 1966 
1 per centum 
(c) In lieu of any other increase provided by this section, the 
annuity of a survivor of a retired employee or Member of Congress 
who received an increase under this section shall be increased by a 
percentage equal to the percentage by which the annuity of such 
employee or Member was so increased. 
(d) No increase provided by this section shall be computed on any 
additional annuity purchased at retirement by voluntary contributions. 
(e) The limitation reading "or (3) the sum necessary to increase 
such annuity, exclusive of annuity purchased by voluntary contribu-
tions under the second paragraph of section 10 of this Act, to $2,160" 
contained in section 8(c) (1) of the Civil Service Retirement Act of 
May 29, 1930, as amended by the Acts of July 16, 1952 (66 Stat. 722; 
Public Law 555, Eighty-second Congress), and August 31, 1954 (68 
Stat. 1043; Public Law 747, Eighty-third Congress), shall not be 
s use 736c. 
effective on or after the effective date of this section. 
(f) The limitation contained in the next to the last sentence of 
section 8(d) (1) of the Civil Service Retirement Act of May 29, 1930, 
as amended, as enacted by the Act of August 11, 1955 (69 Stat. 692; 
Public Law 369, Eighty-fourth Congress), shall not be effective on 
s use 736c. 
and after the effective date of this section. 
(g) The increases provided by this section shall take effect on the 
effective date of this section, except that any increase under subsection 
(b) or (c) shall take effect on the beginning date of the annuity. 
(h) The monthly installment of annuity after adjustment under 
this section shall be fixed at the nearest dollar. 
SEC. 1102. (a) Section 1 of the Civil Service Retirement Act is 
7ostat.743. 
amended by adding at the end thereof the following new subsection: 
' ^^^ ^^'*" 
" (t) The term 'price index' shall mean the annual average over 
a calendar year of the Consumer Price Index (all items—United 
States city average) published monthly by the Bureau of Labor 
Statistics." 
(b) Such Act is furthei'' amended by redesignating section 18 as 19, 
s use 2251 
and by inserting after section 17 the following new section: 
note. 
«, 
COST-OF-LIVING ADJUSTMENT OF ANNUITIES 
"SEC. 18. (a) After January 1, 1964, and after each succeeding 
January 1, the Commission shall determine the per centum change in 
the price index from the later of 1962 or the year preceding the most 
recent cost-of-living adjustment to the latest complete year. 
On the 
basis of such Commission determination, the following adjustments 
shall be made: 
"(1) Effective April 1, 1964, if the change in the price index 
from 1962 to 1963 shall have equaled a rise of at least 3 per centum, 
each annuity payable from the fund which has a commencing date 
earlier than January 2,1963, shall be increased by the per centum 
rise in the price index adjusted to the nearest one-tenth of 1 
per centum. 
"(2) Effective April 1 of any year other than 1964 after the 
price index change shall have equaled a rise of at least 3 per 
centum, each annuity payable from the fund which has a com-
mencing date earlier than January 2 of the preceding year shall 
be increased by the per centum rise in the price index adjusted to 
the nearest one-tenth of 1 per centum. 
•870 
PUBUC LAW 87-793-OCT. 11, 1962 
[76 STAT. 
70 Stat. 754. 
S use 2260. 
5 u s e 2259. 
5 use 2257, 
Infra. 
S use 2260. 
5 u s e 2259. 
"(b) Eligibility for an annuity increase under this section shall be 
governed by the commencing date of each annuity payable from the 
fund as of the effective date of an increase, except as follows: 
^'(1) Effective- fr^n ^he date o i the-first in^-ease under thi& 
section, an annuity payable from the fund'to an annuitant's sur-
vivor (other than a child entitled under section 10(d)), which 
annuity commenced the day after the annuitant's death, shall be 
increased as provided in subsection (a)(1) or (a)(2) if the com-
mencing date of annuity to the annuitant was earlier than Jan-
uary 2 of the year preceding the first increase. 
"(2) Effective from its commencing date, an annuity payable 
from the fund to an annuitant's survivor (other than a child 
entitled under section 10(d)), which annuity commences the 
day after the annuitant's death and after the effective date of 
the first increase under this section, shall be increased by the total 
per centum increase the annuitant was receiving under this sec-
tion at death. 
"(3) For purposes of computing an annuity which commences 
after the effective datfe of the first increase under this section to 
a child under section 10(d), the items $600, $720, $1,800, and 
$2,160 appearing in section 10(d) shall be increased by the total 
per centum increase allowed and in force under this section, and, 
m case of a deceased annuitant, the items 40 per centum and 
50 per centum appearing in section 10(d) shall be increased by 
the total per centum increase allowed and in force under this 
section to the annuitant at death. 
Effective from the date of the 
first increase under this section, the provisions of this paragraph 
shall apply as if such first increase were in effect with respect to 
computation of a child's annuity under section 10(d) which 
commenced between January 2 of the year preceding the first 
increase and the effective date of the first increase. 
"(c) No increase in annuity provided by this section shall be com-
puted on any additional annuity purchased at retirement by volun-
tary contributions. 
"(d) The monthly installment of annuity after adjustment under 
this section shall be fixed at the nearest dollar." 
SEC. 1103. (a) Section 9(g) of the Civil Service Retirement Act 
is amended to read as follows: 
"(g) The annuity as hereinbefore provided (excluding any increase 
because of retirement under section 7) for any married employee 
or Member retiring under this Act, or any portion of such annuity 
designated in writing for purposes of section 10(a)(1), shall be 
reduced by 2% per centum of so much thereof as does not exceed 
$3,600 and by 10 per centum of so much thereof as exceeds $3,600, 
unless the employee or Member notifies the Commission in writing 
at the time of retirement that he does not desire his wife or husband 
to receive an annuity as provided in section 10(a) (1)." 
(b) Section 10(a) (1) of such Act is amended to read as follows: 
"(1) If an employee or Member dies after having retired under 
any provision of this Act and is survived by a wife or husband to 
whom the employee or Member was married at the time of retire-
ment, such wife or husband shall be paid an annuity eq[ual to 55 per 
centum of an annuity computed as provided in subsections (a), (b), 
(c), (d), (e), and (t) of section 9, as may apply with respect to the 
annuitant, or of such portion thereof as may have been designated 
in writing for such purpose by the employee or Member at the time 
of retirement, unless the employee or Member has notified the Com-
mission in writing at the time of retirement that he does not desire 
his wife or husband to receive such annuity." 
76 STAT.] 
PUBLIC LAW 8 7 - 7 9 3 - O C T . 11,1962 
871 
(c) Section 10(b) of such Act is amended by striking out "50 per 
centum" and inserting in lieu thereof "55 per centum". 
(d) Section 10(c) of such Act is amended by striking out "50 per 
centum" and inserting in lieu thereof "55 per centum". 
(e) Section 10(e) of such Act is amended by striking out "50 per 
centum" and inserting in lieu thereof "55 per centum". 
(f) (A) Section 1 (j) of the Civil Service Retirement Act is amended 
5 use 22s 1. 
by substituting a comma for the period at the end thereof and adding 
the following: "or such unmarried child between eighteen and twenty-
one years of age who is a student regularly pursuing a full-time course 
of study or training in residence in a high school, trade school, tech-
nical or vocational institute, junior college, college, university, or com-
parable recognized educational institution. A child whose twenty-
first birthday occurs prior to July 1 or after August 31 of any calendar 
year, and while he is regularly pursuing such a course of study or 
training, shall be deemed for the purposes of this paragraph and sec-
tion 10(d) to have attained the age of twenty-one on the first day of 
5 use 2260. 
July following such birthday. A child who is a student shall not be 
deemed to have ceased to be a student during any interim between 
school years if the interim does not exceed four months and if he 
shows to the satisfaction of the Commission that he has a bona fide 
intention of continuing to pursue a course of study or training in the 
same or different school during the school semester (or other period 
into which the school year is divided) immediately following the 
interim." 
(B) The third sentence of section 10(d) of the Act is amended 
to read as follows: "The child's annuity shall commence on the day 
after the employee or Member dies, and such annuity granted under 
this Act or under the Act of May 29,1930, as amended from and after 
s use 2251 
February 28, 1948, or any right thereto shall terminate on the last "°**-
day of the month before (1) his attaining age eighteen unless in-
capable of self-support, (2) his becoming capable of self-support 
after age eighteen, (3) his marriage, or (4) his death, except that 
the annuity of a child who is a student as described in section l(j) 
shall terminate on the last day of the month before (1) his marriage, 
(2) his death, (3) his ceasing to be such a student, or (4) his attaining 
age twenty-one." 
SiXJ. 1104. Section 1101 of this part shall take effect on January 1, 
Effective date. 
1963. 
The amendments made by section 1103 (except subsection (f)) 
shall not apply in the case of employees or Members retired or other-
wise separated prior to the date of enactment of this Act, and the 
rights of such persons and their survivors shall continue in the same 
manner and to the same extent as if these amendments had not been 
enacted. 
Appioved October 11, 1962, 9ra0 a.m.