The Defense Finance and Accounting Service announced that on Saturday it will begin processing a retroactive pay increase for general schedule employees.

Congress passed the raise in its 2004 omnibus appropriations package, which Bush signed into law Jan. 23. The raise could not go into effect, however, until the president issued the executive order to implement it. During this hiatus, federal employees have been receiving a 2 percent pay raise implemented under a stopgap executive order Bush issued on Dec. 30, 2003.

Federal agencies must now adjust their pay systems, implement the higher pay rate and reimburse employees for the salary boost that went into effect the beginning of 2004.

As soon as DFAS receives authorization from civilian personnel offices, it will process the pay increase and provide retroactive pay to Jan. 11.

For the pay period ending March 20, DFAS expects to have the retroactive pay adjustment in place for civilian Defense Department employees in the Executive Office of the President, Naval shipyards, the Army Corps of Engineers, the Army Medical Command, Army Training and Doctrine Command, National Guard Units, Air Force Material Command, Air National Guard Units, Naval Sea Systems Command, Naval Air Systems Command, the Atlantic Fleet and the Marine Corps.

DFAS plans to process the pay adjustment for Energy Department employees and all other civilian Defense Department employees in time for the pay period ending April 3.