B-182519, APR 2, 1975

B-182519, APR 2, 1975

CHILD OF DECEASED EMPLOYEE OF DEPARTMENT OF THE NAVY IS NOT ENTITLED TO UNPAID COMPENSATION WHERE BENEFICIARIES HAVE BEEN DESIGNATED SINCE BENEFICIARIES DESIGNATED HAVE SUPERIOR RIGHTS TO DECEASED EMPLOYEE'S CHILDREN UNDER 5 U.S.C. 5582 (1970) TO THE EXCLUSION OF ALL OTHERS.

JOSEPH J. WHITE, JR. - UNPAID COMPENSATION:

THIS ACTION IS A RECONSIDERATION OF SETTLEMENT CERTIFICATE Z-2552238, BY THE TRANSPORTATION AND CLAIMS DIVISION OF THE UNITED STATES GENERAL ACCOUNTING OFFICE DISALLOWING THE CLAIM OF JOSEPH J. WHITE, III, FOR UNPAID COMPENSATION DUE JOSEPH J. WHITE, JR., DECEASED, A FORMER EMPLOYEE OF THE DEPARTMENT OF THE NAVY, NORFOLK NAVY SHIPYARD BRANCH, PORTSMOUTH, VIRGINIA.

THE STATUTE GOVERNING SETTLEMENT OF ACCOUNTS OF DECEASED EMPLOYEES IS CONTAINED IN 5 U.S.C. 5582(B);

"IN ORDER TO FACILITATE THE SETTLEMENT OF THE ACCOUNTS OF DECEASED EMPLOYEES, MONEY DUE AN EMPLOYEE AT THE TIME OF HIS DEATH SHALL BE PAID TO THE PERSON OR PERSONS SURVIVING AT THE DATE OF DEATH, IN THE FOLLOWING ORDER OF PRECEDENCE, AND THE PAYMENT BARS RECOVERY BY ANOTHER PERSON OF AMOUNTS SO PAID:

"FIRST, TO THE BENEFICIARY OR BENEFICIARIES DESIGNATED BY THE EMPLOYEE IN A WRITING RECEIVED IN THE EMPLOYING AGENCY BEFORE HIS DEATH.

"SECOND, IF THERE IS NO DESIGNATED BENEFICIARY, TO THE WIDOW OR WIDOWER OF THE EMPLOYEE.

"THIRD, IF NONE OF THE ABOVE, TO THE CHILD OR CHILDREN OF THE EMPLOYEE AND DESCENDANTS OF DECEASED CHILDREN BY REPRESENTATION.

"FOURTH, IF NONE OF THE ABOVE, TO THE PARENTS OF THE EMPLOYEE OR THE SURVIVOR OF THEM.

"FIFTH, IF NONE OF THE ABOVE, TO THE DULY APPOINTED LEGAL REPRESENTATIVE OF THE ESTATE OF THE EMPLOYEE.

"SIXTH, IF NONE OF THE ABOVE, TO THE PERSON OR PERSONS ENTITLED UNDER THE LAWS OF THE DOMICILE OF THE EMPLOYEE AT THE TIME OF HIS DEATH."

IT IS APPARENT FROM THE APPLICABLE STATUTE THAT AN EMPLOYEE HAS THE RIGHT TO DESIGNATE A BENEFICIARY OR BENEFICIARIES TO RECEIVE HIS UNPAID COMPENSATION AT THE TIME OF HIS DEATH. ONCE AN EMPLOYEE HAS COMPLETED THE PRESCRIBED FORM, THE DESIGNATION OF BENEFICIARIES IS BINDING UNLESS AFFIRMATIVE ACTION IS TAKEN ON THE PART OF THE EMPLOYEE TO EFFECT A CHANGE THEREIN.

THE RECORD INDICATES THAT JOSEPH J. WHITE, JR., ON STANDARD FORM NO. 1152 ENTITLED DESIGNATION OF BENEFICIARY, UNPAID COMPENSATION OF DECEASED CIVILIAN EMPLOYEE, DESIGNATED RICKIE P. WHITE AND KATHRYN G. WHITE TO EACH TAKE 50 PERCENT SHARE.

JOSEPH J. WHITE, III, THE SON OF THE DECEASED EMPLOYEE, CHALLENGED THE RIGHT OF RICKIE P. WHITE (WEEKS) TO INHERIT HIS SHARE BECAUSE HE IS NOT A MEMBER OF THE FAMILY OF JOSEPH WHITE, JR., NOR AN ADOPTED CHILD. HOWEVER, IT IS NOT NECESSARY THAT THE BENEFICIARY DESIGNATED UNDER THE PROVISIONS OF 5 U.S.C. 5582 BE RELATED TO THE DECEASED EMPLOYEE. THEREFORE, THE DESIGNATED BENEFICIARIES ARE ENTITLED TO ANY SUMS DUE THE DECEASED EMPLOYEE FROM THE GOVERNMENT AS COMPENSATION TO THE EXCLUSION OF ALL OTHERS.

AS TO THE DESIGNATION OF A BENEFICIARY OR BENEFICIARIES UNDER THE FEDERAL EMPLOYEES' GROUP LIFE INSURANCE (FEGLI) PROGRAM AS PROVIDED IN 5 U.S.C. 8705, SUCH DESIGNATION IS SEPARATE AND DISTINCT FROM THE DESIGNATION OF A BENEFICIARY TO RECEIVE UNPAID COMPENSATION UNDER 5 U.S.C. 5582. FOR THIS REASON, A BENEFICIARY DESIGNATED UNDER THE FEGLI PROGRAM MAY NOT BE CONSIDERED AS A BENEFICIARY TO RECEIVE UNPAID COMPENSATION. FURTHERMORE, THE UNITED STATES GENERAL ACCOUNTING OFFICE DOES NOT HAVE JURISDICTION IN CLAIMS FOR FEGLI. ANY CLAIM FOR FEGLI SHOULD BE ADDRESSED TO FEDERAL EMPLOYEES' GROUP LIFE INSURANCE, 4 EAST 24TH STREET, NEW YORK, NEW YORK 10010.

ACCORDINGLY, NO PAYMENT CAN BE MADE TO JOSEPH J. WHITE, III, CHILD OF THE DECEASED, SINCE THE DESIGNATED BENEFICIARIES' RIGHTS ARE SUPERIOR TO THOSE OF THE DECEASED EMPLOYEE'S CHILDREN. THEREFORE, THE DENIAL OF THE CLAIM OF MAY 23, 1974, BY THE TRANSPORTATION AND CLAIMS DIVISION WAS PROPER AND IS HEREBY SUSTAINED.