Federal workers, some retired employes and some survivors of civil servants demoted over the last two years soon will be able to apply for restoration of grade, pay and benefits due them.

Under the civil service reform act, the Carter administration agreed to restore grades to workers who were demoted because of agency reorganizations or RIFs (layoffs), in their agencies.

The new law also is designed to protect federal workers in pay and grade as their agencies are reorganized, or as RIFs cause job disruption.

Victims of so-called no-fault demotions (since January 1977), soon will be able to fill out forms at their agencies applying for their old, higher grades. Some employes also will get payments for money they lost, but would have recived if the nofault demotion law had been in effect.

Some workers who have retired also will be able to apply for retroactive payments if they were hit by no-fault demotions during the last two years and have money coming to them. The same applies for survivors of federal workers, or retirees who would be entitled to grade and pay restoration.

Agencies do not yet have the forms. When they are available, they will be classified "OPM Form 1367. Claim for retroactive pay entitlement under the CS Reform Act of 1978."

It is important to bear in mind that individuals must make their own claims, or claims on behalf of a deceased spouse. Agencies will not search out employes hit by no-fault demotions and notify them. If you think someone you know is entitled, tell them about it and give them the number of the form. Forms should be available at agency personnel offices within the next couple of weeks.

How The Other Half Lives. Abraham Friedman, the American-educated civil service commissioner of Israel, is finishing up a whirlwind tour of U.S. government operations. Friedman is something like a oneman onbudsman for Israel's bureaucracy which employs nearly one of every two adults in some capacity.

Friedman says Israeli government workers are further along than their U.S. counterparts in that they are more unionized, and they have -- and exercise -- the right to strike. But their average salary in terms of equivalent buying power is around $10,000, Friedman says, and they definitely are paid less than most private industry counterparts.