B-138417, JUN 1, 1959

B-138417, JUN 1, 1959

PRECIS-UNAVAILABLE

R. A. WILSON, DEPARTMENT OF THE NAVY:

BY SECOND ENDORSEMENT DATED FEBRUARY 17, 1959, THE OFFICE OF THE COMPTROLLER OF THE NAVY FORWARDED YOUR LETTER OF FEBRUARY 2, 1959, REQUESTING A DECISION (ASSIGNED SUBMISSION NO. DO-N-400) AS TO THE PROPER RATES OF RETIRED PAY PAYABLE TO CUTHBERT MENGE, BMGC, USN (RETIRED), 227 69 36 (FORMERLY CHBOSN, 198 961) - ONE OF FOUR RETIRED MEMBERS REFERRED TO IN YOUR LETTER - IN THE CIRCUMSTANCES DISCLOSED.

YOU ASK WHETHER THE RETIRED PAY SHOULD BE COMPUTED FROM THE DAY FOLLOWING THE DATE THROUGH WHICH SETTLEMENT WAS MADE BY OUR OFFICE AT THE RATES SET FORTH IN THAT SETTLEMENT, OR AT THE RATES TO WHICH THE MEMBER IS ENTITLED UNDER APPLICABLE LAWS.

THE SETTLEMENT IN FAVOR OF MR. MENGE, TO WHICH YOU REFER, IS DATED JUNE 5, 1958. IN THAT SETTLEMENT, MR. MENGE'S RETIRED PAY WAS COMPUTED INCORRECTLY FOR THE PERIOD COMMENCING OCTOBER 1, 1949, ON THE ERRONEOUS ASSUMPTION THAT HE HAD 26 YEARS' ACTIVE SERVICE FOR PERCENTAGE MULTIPLE PURPOSES. WE REVIEWED THE SETTLEMENT OF JUNE 5, 1958, AND IN OUR DECISION TO MR. MENGE DATED MARCH 3, 1959, B-138417, COPY ENCLOSED, WE POINTED OUT THAT THE SETTLEMENT INADVERTENTLY INCLUDED, IN THE COMPUTATION OF YEARS OF SERVICE, A 27 DAY PERIOD WHILE HE WAS IN AN INACTIVE STATUS. WE FOUND THAT MENGE HAD 25 YEARS INSTEAD OF 26 YEARS FOR PERCENTAGE MULTIPLE PURPOSES.

THE SETTLEMENT OF JUNE 5, 1958, WAS CANCELLED AND THE RETIRED PAY RECOMPUTED ON A SAVED PAY BASIS UNDER THE LAWS IN EFFECT ON SEPTEMBER 30, 1949, PLUS THE PERCENTAGE INCREASES PROVIDED BY LAW, AS SET FORTH IN THE NEW SETTLEMENT OF MARCH 16, 1959. THE RATES IN THE NEW SETTLEMENT ARE IN ACCORD WITH THE RATES SET OUT IN YOUR LETTER. ACCORDINGLY, YOU ARE AUTHORIZED TO ADJUST MR. MENGE'S RETIRED PAY EFFECTIVE MAY 1, 1958, ON THE BASIS INDICATED ABOVE.