B-130506, MAR. 4, 1957

B-130506, MAR. 4, 1957

TO MR. CORNELIUS J. LELAND:

REFERENCE IS MADE TO YOUR LETTER DATED JANUARY 3, 1957, CONCERNING YOUR INDEBTEDNESS TO THE UNITED STATES IN THE AMOUNT OF $50 AND THE INDEBTEDNESS OF YOUR DECEASED AUNT, MARGARET M. LELAND, TO THE UNITED STATES IN THE AMOUNT OF $250.

YOUR INDEBTEDNESS ARISES OUT OF THE NONDEDUCTION FROM YOUR PAY AS AN ENLISTED MAN, UNITED STATES NAVY, OF YOUR CONTRIBUTION OF $22 A MONTH FOR FAMILY ALLOWANCE PAID TO YOUR DEPENDENT AUNT IN LOCO PARENTIS, MARGARET M. LELAND, FOR THE MONTHS OF SEPTEMBER 1945 THROUGH NOVEMBER 1945, OR $66, LESS A CREDIT OF $16 RECEIVED BY US FROM YOU. THE INDEBTEDNESS OF MARGARET M. LELAND REPRESENTS THE ERRONEOUS PAYMENT TO HER, AFTER YOUR DISCHARGE IN NOVEMBER 1945, OF FAMILY ALLOWANCE AT THE RATE F $50 A MONTH FOR DECEMBER 1945 THROUGH MARCH 1946 AND FOR JUNE 1946.

IT APPEARS THAT WHILE YOU WERE SERVING AS APPRENTICE SEAMAN (SEVENTH PAY GRADE) A CLASS B FAMILY ALLOWANCE WAS AUTHORIZED IN FAVOR OF YOUR DEPENDENT AUNT IN LOCO PARENTIS, EFFECTIVE JUNE 1, 1943, AND THAT PAYMENT OF SUCH ALLOWANCE WAS MADE TO HER FOR THE MONTHS OF JUNE 1943 THROUGH SEPTEMBER 1943. PAYMENT WAS DISCONTINUED AFTER PAYMENT FOR THE LATTER MONTH, YOU HAVING BEEN PROMOTED TO SPECIALIST, 2D CLASS (THIRD PAY GRADE) ON SEPTEMBER 4, 1943. ON SEPTEMBER 12, 1945, YOU MADE APPLICATION TO THE NAVY DEPARTMENT FOR FAMILY ALLOWANCE BENEFITS ON BEHALF OF YOUR AUNT IN LOCO PARENTIS, RETROACTIVE TO OCTOBER 1, 1943, SAYING THAT YOUR APPLICATION FILED ON THE LATTER DATE FOR MONETARY ALLOWANCE IN LIEU OF QUARTERS HAD BEEN DISALLOWED AND THAT IT WAS YOUR IMPRESSION THAT ARE SUBMISSION OF AN APPLICATION FOR CLASS B FAMILY ALLOWANCE WAS NOT NECESSARY. BY LETTER DATED FEBRUARY 5, 1946, FROM LIEUTENANT COMMANDER E. R. VINSON, USNR, OFFICER IN CHARGE, DEPENDENT BENEFITS SECTION, BUREAU OF NAVAL PERSONNEL, YOU WERE ADVISED THAT FAMILY ALLOWANCE WAS AUTHORIZED IN FAVOR OF YOUR AUNT EFFECTIVE WITH SEPTEMBER 1945 AND THAT YOUR REQUEST FOR RETROACTIVE AUTHORIZATION COULD NOT BE GRANTED. BY LETTER DATED DECEMBER 11, 1956, OUR CLAIMS DIVISION ADVISED YOU THAT AN APPLICATION FOR FAMILY ALLOWANCE COULD NOT BE AUTHORIZED PRIOR TO THE MONTH IN WHICH IT WAS FILED. IN YOUR LETTER OF JANUARY 5, 1957, YOU ASK WHY, IF YOUR AUNT WAS YOUR DEPENDENT IN JUNE 1943 THROUGH SEPTEMBER 1943 AND FROM SEPTEMBER 1945 THROUGH NOVEMBER 1945, SHE WAS NOT YOUR DEPENDENT FROM OCTOBER 1943 THROUGH AUGUST 1945.

SECTION 101 OF THE SERVICEMEN'S DEPENDENTS ALLOWANCE ACT OF 1942, 56 STAT. 381, SPECIFICALLY PROVIDED FOR PAYMENT OF THE FAMILY ALLOWANCE ONLY TO DEPENDENTS OF ENLISTED MEN SERVING IN THE FOURTH, FIFTH, SIXTH, OR SEVENTH PAY GRADES. THE DEPENDENTS OF ENLISTED MEN OF THE FIRST THREE PAY GRADES FIRST BECAME ELIGIBLE TO RECEIVE FAMILY ALLOWANCE BENEFITS ON AND AFTER NOVEMBER 1, 1943, PURSUANT TO SECTION 1 OF THE ACT OF OCTOBER 26, 1943, 57 STAT. 577. SECTION 104 OF THE 1942 ACT, AND AS AMENDED BY THE ACT OF OCTOBER 26, 1943, PROVIDED THAT MONTHLY FAMILY ALLOWANCE SHOULD BE GRANTED OR PAID UPON WRITTEN APPLICATION TO THE DEPARTMENT CONCERNED MADE BY THE ENLISTED MAN OR BY OR ON BEHALF OF HIS DEPENDENTS.

THUS, AFTER YOU WERE ADVANCED TO SPECIALIST 2D CLASS (THIRD PAY GRADE) ON SEPTEMBER 4, 1943, YOUR DEPENDENT WAS NO LONGER ENTITLED TO FAMILY ALLOWANCE BENEFITS AFTER PAYMENT FOR THAT MONTH. UPON THE ENACTMENT OF THE ACT OF OCTOBER 26, 1943, YOU AGAIN BECAME ELIGIBLE TO MAKE APPLICATION FOR FAMILY ALLOWANCE. HOWEVER, SINCE AN APPLICATION FOR SUCH ALLOWANCE WAS NOT MADE UNTIL SEPTEMBER 12, 1945, PAYMENT COULD ONLY BE AUTHORIZED BEGINNING WITH THAT MONTH, SECTION 107 OF THE 1942 ACT AS AMENDED BY THE ACT OF OCTOBER 26, 1943, PROVIDING THAT MONTHLY FAMILY ALLOWANCE SHOULD BE PAID FOR THE PERIOD BEGINNING WITH THE FIRST DAY OF THE MONTH IN WHICH THE APPLICATION WAS FILED. HENCE, THERE IS NO LEGAL BASIS TO ALLOW YOU ANY AMOUNT FOR THE PERIOD FROM OCTOBER 1943 THROUGH AUGUST 1945 BECAUSE FAMILY ALLOWANCE WAS NOT PAID TO YOUR AUNT FOR SUCH PERIOD.

SINCE YOUR CONTRIBUTION TO FAMILY ALLOWANCE AT THE RATE OF $22 A MONTH FOR SEPTEMBER 1945 THROUGH NOVEMBER 1945, WAS NOT DEDUCTED FROM YOUR PAY YOU ARE INDEBTED TO THE UNITED STATES IN THE AMOUNT OF $66, LESS THE SUM OF $16 PREVIOUSLY REMITTED BY YOU.

ACCORDINGLY, YOU ARE REQUESTED TO REMIT THE SUM OF $50 WITHIN 30 DAYS FROM THE DATE OF THIS DECISION OR WITHIN THAT TIME MAKE SUITABLE ARRANGEMENTS FOR ITS LIQUIDATION. SAID SUM SHOULD BE REMITTED TO USBY CHECK, DRAFT OR MONEY ORDER PAYABLE TO THE U.S. GENERAL ACCOUNTING OFFICE, P. O. BOX 2610, WASHINGTON 13, D.C. ..END :