An employee's pay within the converted GS grade is set by converting the CAPS rate to GS pay rates in accordance with the following rules:

a.  The pay conversion is done before any geographic movement or other pay-related action that coincides with the employee's movement out of the CAPS.

b.  An employee's CAPS rate is converted to a rate on the highest applicable rate range for the converted GS grade (including a rate range in the GS base schedule or LEO special base schedule, a rate range in the applicable locality rate schedule, or a rate range in a special rate schedule for the employee's occupation).

c.  If the highest applicable rate range is a locality pay rate range, the CAPS rate is converted to a GS locality rate of pay. If this rate falls between two steps in the locality-adjusted schedule, the rate must be set at the higher step. The converted GS rate of basic pay is the GS base rate or LEO special base rate corresponding to the converted GS locality rate (i.e., same step position).

d.  If the highest applicable rate range is a special rate range, the CAPS rate is converted to a special rate. If this rate falls between two steps in the special rate schedule, the rate must be set at the higher step. The converted GS rate of basic pay will be the GS rate corresponding to the converted special rate (i.e., same step position).

e.  Exception: If an employee's CAPS rate exceeds the maximum rate of the highest applicable rate range upon conversion to GS, the affected employee's rate will be converted to a retained rate under Title 5, United States Code (U.S.C.) § 5363.