Processing, Correcting, or Canceling a WGI

This guidance only covers within-grade increases (WGI) for employees in the General Schedule (GS) pay plan. Refer to the Office of Personnel Management (OPM) or Agency guidance for granting or denying increases in an employee's rate of basic pay within the pay grade for the employee’s grade, band, or level for all other employees.

Each GS grade has 10 steps. WGIs or step increases are periodic increases in a GS employee's rate of basic pay from one step of the grade of their position to the next higher step of that grade. WGIs apply only to GS employees occupying permanent positions. Permanent position refers to a position filled by an employee whose appointment is not designated as temporary and does not have a definite time limitation of 1 year or less. Permanent position includes a position to which an employee is promoted on a temporary or term basis for at least 1 year.

Employees who occupy permanent positions earn WGIs upon meeting the following three requirements established by law:

• The employee's performance must be at an acceptable level of competence. To meet this requirement, an employee's most recent (not more than 1 year old) performance rating of record must be at least Level 3 (Fully Successful or equivalent).
• The employee must have completed the required waiting period for advancement to the next higher step. The WGI waiting periods for GS pay plans are:
  • Steps 02, 03, and 04 - 52 weeks of creditable service
  • Steps 05, 06, and 07 - 104 weeks of creditable service
  • Steps 08, 09, and 10 - 156 weeks of creditable service

Refer to OPM’s Guide to Processing Personnel Actions, Chapter 6: Creditable Service for Leave Accrual, for instructions on calculating creditable service.

• The employee must not have received an equivalent increase in pay during the waiting period. Refer to 5 CFR 531.407 for definition of equivalent increase.

A WGI is effective on the first day of the first Pay Period (PP) beginning on or after the completion of the required waiting period. A waiting period begins:

• On the first appointment as an employee of the Federal Government, regardless of tenure.
• On receiving an equivalent increase.
• After a period of nonpay status or a break in service (alone or in combination) of more than 52 calendar weeks, unless the nonpay status or break in service is creditable service.

When an employee does not meet the criteria for a WGI, the WGI must be denied, and a Nature of Action Code (NOAC) 888, Denial of WGI, must be processed. Once a WGI is denied, a supervisor has the flexibility to approve a WGI at any time thereafter once the employee is determined to be performing at an acceptable level of competence. At a minimum, the Agency must consider the employee's performance at least every 52 weeks after the denial. When an acceptable level of competence is achieved at some time after a negative determination, the effective date of the WGI is the first day of the first PP after the acceptable determination is made.

The NOACs for processing a WGI or denial of WGI are:

• NOAC 893. Within-grade increase (WGI) is an increase in an employee's rate of basic pay within the pay grade for the employee’s grade, band, or level (excluding an increase granted automatically to keep pace with an adjustment in pay structure). For pay systems with scheduled steps within a pay grade, a WGI is an advancement from one step to a higher step (e.g., after meeting requirements for length-of-service and performance). A GS WGI is one type of within-grade increase.
  • Effective date is the first day of the first PP beginning on or after the completion of the required waiting period or when an acceptable level of competence is achieved at some time after a negative determination.
  • Legal Authority Q7M/REG 531.404, Within-Grade Increase.
  • Remark Code, P14, work performance is at an acceptable level of competence.
• NOAC 888. Denial of a WGI means the decision to withhold (not grant) a WGI to an employee because of a determination that the employee's performance is not at an acceptable level of competence.
  • Effective date is the date on which the increase would have been effective.
  • Legal Authority Q5M/REG 531.409, Denial of Within-Grade Increase.
  • If employee is entitled to grade retention, a second authority may be cited: VLJ/5 U.S.C. 5362(C), Grade Retention Entitlements.
  • Remark Code, P15, WGI to step (number) denied because your work is not at an acceptable level of competence. You remain at GS (number), step (number).

Processing WGIs in NFC Payroll/Personnel System (PPS)

The NFC PPS automatically generates WGIs for GS employees who complete the required waiting period for advancement to the next higher step and have a performance rating at an acceptable level of competence on the date the WGI is due. To start the process, the Service Computation Date (SCD) WGI, an employee's commencing day of service for completion of the WGI waiting period, is entered on the accession or conversion personnel action. When the SCD WGI is initially entered, the NFC PPS establishes data in the following fields in the Information/Research Inquiry System (IRIS) Program IR303, WGI Information:

• Performance Evaluation Anniversary Date. Date established in the Table Management System (TMGT) Table 045, Performance Evaluation Anniversary Date, or date established based on specific Agency criteria.
• Work Schedule. The time basis on which an employee is scheduled to work documented on the personnel action.
• Critical Element Code. Code identifying a work assignment or responsibility of such importance that unacceptable performance on that element would result in a determination the employee's overall performance is unacceptable. The valid values are:
  • 0 — Accession
  • 1 — Eligible for WGI
  • 2 — Composite rating less than 3.0
  • 3 — Critical element less than 3.0
  • 4 — Composite rating and critical element less than 3.0

In addition, the NFC PPS begins maintaining two records: creditable service and nonpay status as displayed on the Time and Attendance (T&A) report and as recorded on personnel actions. If a date is not entered on the hire/conversion action, PPS does not establish any record of creditable service and/or nonpay status regarding WGIs.

PPS counts calendar days in pay status for granting a WGI. A full day is counted if the employee is in pay status any part of the day. PPS projects the WGI due date based on the number of weeks in the step of a grade as follows:

The following fields are displayed on IRIS Program IR303 to track creditable service and nonpay status:

• Intermittent Days Worked Last WGI. A count of the number of workdays that an employee on an intermittent work schedule recorded on the T&A for each PP. An intermittent work schedule requires an employee to work an irregular number of hours or days for which there is no prearranged scheduled tour of duty, which typically means the WGI is delayed until the employee works the number of days required by law for each step. This counter updates when an SCD WGI is present and resets when the WGI is granted.
• Intermittent Elapsed Calendar Days WGI. Calendar days elapsed while the employee is working on an intermittent work schedule and in a waiting period for a WGI. This counter updates when an SCD WGI is present and resets when the WGI is granted.
• Absence Without Leave (AWOL) Since Last WGI. Summary of unapproved AWOL hours occurring since the employee's last WGI. For those employees in steps 1, 2, and 3, the first 80 hours of AWOL during the waiting period are forgiven. For steps 4, 5, and 6, the first 160 hours are forgiven. For steps 7, 8, and 9, the first 240 hours are forgiven. NFC PPS first converts the excess to workdays using a ratio of 7 to 5. The calendar days are used to extend the employee’s waiting period for the next WGI. This counter resets to zero when the WGI is granted.
• Leave Without Pay (LWOP) Since Last WGI. Summary of hours of approved absence without pay occurring since the employee’s last WGI. The first continuous 30 days of LWOP are counted when entered on the T&A; after 30 days a personnel action must be processed. After the personnel action is processed, reporting of LWOP hours on the T&A must stop to avoid NFC PPS double counting the days of LWOP. For those employees in steps 1, 2, and 3, the first 80 hours of LWOP during the waiting period are forgiven. For steps 4, 5, and 6, the first 160 hours are forgiven. For steps 7, 8, and 9, the first 240 hours are forgiven. NFC PPS first converts the excess to workdays using a ratio of 7 to 5. The calendar days are used to extend the employee’s waiting period for the next WGI. This counter resets to zero when the WGI is granted.
• Suspension Since Last WGI. Summary of hours of suspension resulting from disciplinary action occurring since the employee’s last WGI. For those employees in steps 1, 2, and 3, the first 80 hours of absence without pay (AWOP) during the waiting period are forgiven. For steps 4, 5, and 6, the first 160 hours are forgiven. For steps 7, 8, and 9, the first 240 hours are forgiven. NFC PPS first converts the excess to workdays using a ratio of 7 to 5. The calendar days are used to extend the employee’s waiting period for the next WGI. This counter resets to zero when the WGI is granted.

Notifications

Based on Agency criteria, NFC generates Form AD-658, WGI Record, or equivalent, according to the following schedule:

• Full-time and part-time employees. Sixteen weeks prior to the actual due date of the WGI.
• Intermittent employees. When the database indicates the employee has completed:
  • 260 days in pay status is not less than 52 calendar weeks
  • 520 days in pay status is not less than 104 calendar weeks
  • 780 days in pay status is not less than 156 calendar weeks

The form allows the supervisor to document the level of competence needed to determine the employee meets the criteria for a WGI. The servicing personnel office identifier (POI) distributes the form to the supervisor who approves or disapproves the WGI for the employee and returns the form to the POI.

In addition, Agencies using the AD-658 (WGI Record) or equivalent, may also run a Remote Forms Queuing System (RFQS) report to obtain the Classified Employee Control Listing of WGI Forms for full-time (F/T) and part-time (P/T) employees. This report provides a list of employees for whom Form AD- 658 is being distributed. Four different reports are generated depending on POI entered on the selection criteria screen for the classified employee WGI List option.

There are two RFQS reports available for Agencies not using the AD-658 or equivalent form. They are:

• Classified Employee WGI 16-week Listing for F/T and P/T Employees. Provides a list of WGIs for classified employees in pay plans GS, GG, LG, FO, FP, AL, CA, and TR whose latest performance appraisal rating is Fully Successful or greater. The WGI is generated by NFC PPS for each of these employees. It is produced 16 weeks prior to the due date of the employee's WGI.
• Classified Employee WGI Four Week Notification for F/T and P/T Employees. Provides a list of employees whose latest performance appraisal ratings are Fully Successful or greater. It is produced 4 weeks prior to the generation of WGIs for those employees listed on the report. It updates the 16-week notification previously issued.

It is assumed that Agencies using these report notifications have established an internal process to notify supervisors of the employee’s WGI due date and obtain approval or disapproval of WGIs.

IRIS Program, IR303 contains the WGI Notification Given code which documents if the 16-week and the 4-week notifications have been provided. The valid values are:

• 1 — 16-week notice
• 2 — 4-week notice

In addition, the Pay Period Notification Given field on IRIS Program, IR303 documents the PP the WGI notice is provided. Both fields reset to blank when the WGI is processed.

Supervisor's Determination

After receiving notification that an employee is due a WGI, the supervisor has the following options:

• Approve WGI. Supervisor certifies the employee’s performance is at or above the Fully Successful level for all elements defined in the employee's current performance plan.
  • When the most recent rating of record is more than 1 year old, an out-of-cycle rating must be completed.
  • When the most recent rating of record is below Fully Successful, an out-of-cycle rating must be completed.
• Delay WGI. Supervisor cannot determine the work of the employee is at an acceptable level of competence because;
  • The employee has not received a rating of record during the within-grade waiting period, and the employee has not had the minimum period to demonstrate acceptable performance on the elements in the current performance plan to permit a rating of record. The determination will be made once the employee has completed the minimum appraisal period under the performance plan of the current position.
  • The employee has not received a rating of record during the within-grade waiting period, and the employee has not been informed of the specific requirements for performance at an acceptable level of competence in the current position. The employee will be placed on a performance plan and a determination made once the employee completes the minimum appraisal period.

Following the delay, when the employee's performance is determined to be at an acceptable level of competence:

• a rating of record reflecting Fully Successful performance must be completed, and
• the WGI is granted retroactively to the beginning of the PP following completion of the applicable waiting period.

• Deny WGI. Supervisor determines the employee’s performance does not meet the Fully Successful level, as defined in the employee's current performance plan, in one or more critical elements.
  • When the employee is not already under a Performance Improvement Plan (PIP), the supervisor works with the human resources office to establish a PIP.
  • When the most recent rating of record is not more than 1 year old and is at or above Fully Successful, an out-of-cycle rating must be completed.
  • When the most recent rating of record is more than 1 year old an out-of-cycle rating must be completed.
  • The employee must be notified in writing.

Processing an Approved WGI

The performance rating on the employee’s IRIS Program, IR304, Performance Evaluation Data, must be Fully Successful or greater for the employee to be granted a WGI.

• When the most recent rating of record is more than 1 year old, an out-of-cycle rating must be completed.
• When the most recent rating or record is below Fully Successful, an out-of-cycle rating must be completed.
• When there is no rating of record, a rating must be completed.

When the performance appraisal with a Fully Successful rating is current, the PP the WGI is due, Bi-Weekly Examination Analysis and Reporting System (BEAR) generates the NOAC 893. The effective date is the first day of the PP and the authentication date is the day prior to the effective date. The POI is responsible for reviewing the WGI for accuracy and for correcting any errors that may occur.

The PP after the WGI is given, BEAR resets the WGI due code to 0/No, the SCD WGI date to the effective date of the WGI, and the Date WGI Projected Effective to zeros.

Processing a Late/Delayed WGI

BEAR generates the Notification of WGI Overdue report which provides a list of employees who have not received WGIs which were due within the past 10 PPs. This report is produced each PP and is available as a hard copy or by electronic transmission.

BEAR also generates the Classified Employee WGI Status Sixteen Week Listing which provides a list of employees whose WGI will not be generated unless action is taken to change the performance appraisal rating to Fully Successful or higher before the effective date of the WGI. These are produced 16 weeks prior to the projected date of the WGI.

When the performance appraisal with a Fully Successful rating is not current or available in NFC PPS the PP the WGI is due, BEAR does not generate the NOAC 893.

Following the delay, when the employee's performance is determined to be at an acceptable level of competence, a rating of record reflecting Fully Successful performance must be completed. After the POI processes a current performance appraisal, the POI must also process the NOAC 893. The WGI is granted retroactively to the beginning of the PP following completion of the applicable waiting period.

The PP after the WGI is given, BEAR resets the WGI due code to 0/No, the SCD WGI date to the effective date of the WGI, and the Date WGI Projected Effective to zeros.

Processing a Denial of WGI

The denial of a WGI means the decision to withhold (not grant) a WGI to an employee because the employee's performance is not an acceptable level of competence. When the performance rating is unsuccessful the PP the WGI is due, BEAR does not generate the NOAC 893. Instead, the POI must process NOAC 888 with an effective date of the PP the WGI is due in accordance with OPM guidance. BEAR changes the WGI Due code to 0/No and changes the WGI Denied code to 1/Yes.

Following the denial, when the employee's performance is determined to be at an acceptable level of competence, a rating of record reflecting Fully Successful must be completed. After the POI processes a current performance appraisal, the POI must also process:

• Master File Change Document (Document Type 030) to change the WGI Due code to 1/Yes.  Due prior to processing the WGI personnel action.
• NOAC 893. The effective date of the WGI is the first day of the first PP after the acceptable determination is made.

The PP after the WGI is given, BEAR resets the WGI code to 0/No, the SCD WGI date to the effective date of the WGI, and the Date WGI Projected Effective to zeros.

Deleting/Modifying a WGI or a Denial of WGI in Current Processing PP

In the event a WGI or a denial of WGI needs to be deleted or changed in the PP it was processed, the Agency must process a rollback prior to the processing of the Payroll Computation System (PAYE) for the current processing PP to delete the personnel action from the employee's personnel history.

Canceling a WGI or Denial of WGI

If the WGI or a denial of WGI needs to be canceled after the processing of PAYE for the current processing PP, Agencies must process a cancellation personnel action in the applicable entry application (EmpowHR or Web-based Entry, Processing, Inquiry, and Correction System (EPIC Web)) during a subsequent PP to correct the employee's personnel history.

Agencies must also submit a Web-based Special Payroll Processing System (SPPS Web) request to establish a debt for any overpayment the employee must return/repay to the Agency.

Correcting a WGI or Denial of WGI

If the WGI or a Denial of WGI needs to be changed after the processing of PAYE for the current processing PP, Agencies must process a correction to the personnel action in the applicable entry application (EmpowHR or EPIC Web) during a subsequent PP to correct the employee's personnel history.

Agencies must also submit an SPPS Web request to establish a debt for any overpayment the employee must return/repay to the Agency.