B-131845, OCT. 1, 1959

B-131845, OCT. 1, 1959

TO MRS. ALICE P. GRAY, NORTH CAROLINA VETERANS COMMISSION:

REFERENCE IS MADE TO A LETTER DATED AUGUST 27, 1959, AND ENCLOSURES, WRITTEN ON YOUR BEHALF BY MR. STEPHEN H. ALFORD, REGARDING YOUR CLAIM FOR THE ARREARS OF RETIRED PAY DUE YOUR LATE FATHER, WILLIAM MCKINLEY PRICE, ON THE DATE OF HIS DEATH, AUGUST 22, 1956, AS BOATSWAIN'S MATE FIRST CLASS, UNITED STATES COAST GUARD, RETIRED.

UNDER DATE OF NOVEMBER 22, 1956, THE UNITED STATES COAST GUARD FORWARDED HERE FOR DIRECT SETTLEMENT A CLAIM BY YOU AS DESIGNATED BENEFICIARY FOR THE ARREARS OF RETIRED PAY DUE YOUR LATE FATHER, THE SAME BEING ACCOMPANIED BY A COPY OF FORM NO. 2529 "DESIGNATION OF BENEFICIARIES FOR DEATH GRATUITY," SHOWING THAT ON AUGUST 27, 1940, HE HAD DESIGNATED HIS WIFE, EDNA CHARLOTTE PRICE, HIS CHILDREN, ALICE WESSLEY PRICE AND SALBY PRICE, AND HIS STEP-CHILDREN, BILLY SAUNDERS PRICE AND ANDREE PRICE, TO RECEIVE PAYMENT OF SIX MONTHS' PAY IN THE EVENT OF HIS DEATH WHILE SERVING ON ACTIVE DUTY. ALSO TRANSMITTED WITH THE CLAIM WAS FORM CGHQ- 9964,"REPORT OF DEATH," CONTAINING A CERTIFICATE TO THE EFFECT THAT THE RECORDS OF THE COAST GUARD SHOW THAT THE DECEASED DID NOT DESIGNATE A BENEFICIARY OR BENEFICIARIES IN ACCORDANCE WITH THE PROVISIONS OF PUBLIC LAW 147, 84TH CONGRESS, APPROVED JULY 12, 1955, TO RECEIVE ANY UNPAID PAY OR ALLOWANCES THAT MIGHT BE DUE.

IN DECISION OF JULY 8, 1957, B-131845, WE EXPLAINED TO YOU THE LAWS GOVERNING PAYMENT OF THE ACCRUED RETIRED PAY AND ADVISED YOU THAT UNLESS IT BE SHOWN THAT MRS. EDNA C. PRICE WAS NOT THE LAWFUL WIFE OF THE DECEDENT AT THE TIME OF HIS DEATH, HER RIGHTS TO ARREARS OF RETIRED PAY WOULD TAKE PRECEDENCE OVER YOURS. THE ENCLOSURES TO MR. ALFORD'S LETTER SHOW THAT YOUR LATE FATHER WAS NOT MARRIED TO MRS. EDNA C. PRICE IN 1940 AND THAT SHE IS NOT HIS WIDOW.

AS YOU HAVE BEEN INFORMED, SECTION 2 OF THE ACT OF JULY 12, 1955, PUBLIC LAW 147, 84TH CONGRESS, 69 STAT. 295 (37 U.S.C. 362), PROVIDES THAT IN THE SETTLEMENT OF THE ACCOUNTS OF DECEASED MEMBERS OF THE UNIFORMED SERVICES THE AMOUNT DUE SHALL BE PAID TO THE PERSON OR PERSONS SURVIVING AT THE DATE OF DEATH IN THE FOLLOWING ORDER OF PRECEDENCE:

"* * * FIRST, TO THE BENEFICIARY OR BENEFICIARIES NAMED TO RECEIVE ANY SUCH AMOUNT IN A WRITTEN DESIGNATION EXECUTED BY THE MEMBER AND RECEIVED, PRIOR TO HIS DEATH, IN THE PLACE DESIGNATED FOR SUCH PURPOSE IN THE REGULATIONS OF THE DEPARTMENT CONCERNED;

"SECOND, IF THERE BE NO SUCH BENEFICIARY, TO THE WIDOW OR WIDOWER OF SUCH MEMBER;

"THIRD, IF THERE BE NO BENEFICIARY OR SURVIVING SPOUSE, TO THE CHILD OR CHILDREN OF SUCH MEMBER, AND DESCENDANTS OF DECEASED CHILDREN, BY REPRESENTATION;

"FOURTH, IF NONE OF THE ABOVE, TO THE PARENTS OF THE MEMBER, OR THE SURVIVOR OF THEM; AND

"FIFTH, IF THERE BE NONE OF THE ABOVE, TO THE DULY APPOINTED LEGAL REPRESENTATIVE OF THE ESTATE OF THE DECEASED MEMBER, OR IF THERE BE NONE, TO THE PERSON OR PERSONS DETERMINED TO BE ENTITLED THERETO UNDER THE LAWS OF THE DOMICILE OF THE DECEASED MEMBER.'

SECTION 4 OF THAT ACT PROVIDES THAT ANY DESIGNATION OF BENEFICIARY FOR PURPOSES OF ANY SIX MONTHS' DEATH GRATUITY, RECEIVED IN THE DEPARTMENT CONCERNED BEFORE THE EFFECTIVE DATE OF THE PAYMENT PROVISIONS OF THE ACT-- - JANUARY 1, 1956--- SHALL BE CONSIDERED AS A DESIGNATION OF BENEFICIARY FOR THE PURPOSE OF THE ACT IN THE ABSENCE OF A DESIGNATION UNDER THE ACT. WHEN APPLICABLE, THIS SECTION ADOPTS FOR PURPOSES OF SECTION 2 OF THE ACT ANY DESIGNATION FOR THE PURPOSES OF ANY SIX MONTHS' DEATH GRATUITY AND YOUR LATE FATHER'S 1940 DESIGNATION IS SUCH A DESIGNATION. REASONABLY, HOWEVER, SECTION 4 REFERS TO A VALID DESIGNATION OF A BENEFICIARY AUTHORIZED BY LAW TO RECEIVE THE SIX MONTHS' DEATH GRATUITY.

THE ACT OF JUNE 4, 1920, 41 STAT. 824, AS AMENDED, WHICH PROVIDED THE SIX MONTHS' DEATH GRATUITY BENEFIT FOR COAST GUARD MEMBERS AT THE TIME THE INVOLVED DESIGNATION WAS COMPLETED, MADE SUCH A GRATUITY AVAILABLE ONLY TO THE WIDOW, CHILDREN, OR OTHER DESIGNATED DEPENDENT RELATIVE OF THE MEMBER. SINCE THE DECEDENT THEN WAS NOT MARRIED TO MRS. EDNA C. PRICE AND SHE IS NOT HIS WIDOW AND, THEREFORE, IS NOT AN ELIGIBLE BENEFICIARY FOR PURPOSES OF THE DEATH GRATUITY PAYMENT, SHE MAY NOT BE REGARDED AS A DESIGNATED BENEFICIARY FOR PURPOSES OF THEACCRUED RETIRED PAY. ALSO, SINCE WHATEVER RELATIONSHIP BY AFFINITY THERE WAS BETWEEN YOUR LATE FATHER AND THE NAMED STEP-CHILDREN APPEARS TO HAVE BEEN TERMINATED AND THEY WERE NOT BEING CARED FOR BY HIM, THEY ARE NOT ELIGIBLE TO RECEIVE THE DEATH GRATUITY PAYMENT AND MAY NOT BE REGARDED AS DESIGNATED BENEFICIARIES FOR PURPOSES OF THE ACCRUED RETIRED PAY. AS THE ONLY VALIDLY DESIGNATED BENEFICIARIES FOR SIX MONTHS' DEATH GRATUITY PURPOSES, YOU AND YOUR BROTHER, SALBY PRICE, ARE EACH ENTITLED TO ONE-HALF OF THE ACCRUED RETIRED PAY AS DESIGNATED BENEFICIARIES.

THE RECORD INDICATES THAT YOUR BROTHER MAY BE AN INCOMPETENT AND THAT HE PRESENTLY MAKES HIS HOME WITH YOU. IF YOUR BROTHER IS COMPETENT, PAYMENT MAY ONLY BE MADE ON THE BASIS OF A CLAIM SIGNED BY HIM. IF HE IS INCOMPETENT PAYMENT MUST BE MADE TO HIS LEGAL GUARDIAN IF ONE HAS BEEN APPOINTED. IF HE HAS NO LEGAL GUARDIAN, PAYMENT MAY BE MADE TO YOU FOR HIS BENEFIT UPON RECEIPT OF A STATEMENT BY YOU THAT HE IS IN YOUR CUSTODY AND THAT THE FUNDS WILL BE APPLIED FOR HIS BENEFIT.

A BALANCE OF $102.30 IS DUE IN THIS CASE AND A SETTLEMENT FOR ONE-HALF OF THAT AMOUNT, OR $51.15 WILL ISSUE IN YOUR FAVOR IN DUE COURSE. THE BALANCE WILL BE RESERVED PENDING THE RECEIPT OF CLAIM FROM YOUR BROTHER, HIS GUARDIAN, OR THE STATEMENT FROM YOU THAT HE IS IN YOUR CUSTODY AND THAT THE RESERVED BALANCE WILL BE APPLIED FOR HIS BENEFIT, AS MAY BE APPROPRIATE.