A-15133, JULY 31, 1926, 6 COMP. GEN. 95

A-15133: Jul 31, 1926

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RETIREMENT FUND - ADJUSTMENT OF DEDUCTIONS ERRONEOUSLY MADE WHEN DEDUCTIONS ARE MADE ON ACCOUNT OF THE RETIREMENT FUND FROM THE PAY OF AN EMPLOYEE NOT SUBJECT TO THE RETIREMENT LAW AND THE DISBURSING OFFICER MAKING SUCH DEDUCTIONS HAS PAID THE AMOUNT THEREOF TO THE BUREAU OF PENSIONS PURSUANT TO THE PROVISION OF PARAGRAPH 4 OF GENERAL ACCOUNTING OFFICE REGULATIONS NO. 54. WHEN THERE IS DOUBT AS TO WHETHER THE DEDUCTION WAS ERRONEOUS. 1926: I HAVE YOUR LETTER OF JULY 16. SUBMITTING FOR DECISION A QUESTION AS TO THE PROPER PROCEDURE TO BE FOLLOWED IN THE MATTER OF EFFECTING ADJUSTMENTS WHERE RETIREMENT DEDUCTIONS FROM THE PAY OF EMPLOYEES OF THE CUSTODIAN SERVICE OF THE TREASURY DEPARTMENT ARE MADE FROM THE COMPENSATION OF TEMPORARY EMPLOYEES OR OTHER EMPLOYEES NOT SUBJECT TO THE PROVISIONS OF THE RETIREMENT LAWS.

A-15133, JULY 31, 1926, 6 COMP. GEN. 95

RETIREMENT FUND - ADJUSTMENT OF DEDUCTIONS ERRONEOUSLY MADE WHEN DEDUCTIONS ARE MADE ON ACCOUNT OF THE RETIREMENT FUND FROM THE PAY OF AN EMPLOYEE NOT SUBJECT TO THE RETIREMENT LAW AND THE DISBURSING OFFICER MAKING SUCH DEDUCTIONS HAS PAID THE AMOUNT THEREOF TO THE BUREAU OF PENSIONS PURSUANT TO THE PROVISION OF PARAGRAPH 4 OF GENERAL ACCOUNTING OFFICE REGULATIONS NO. 54, THE PROPER PROCEDURE IN ADJUSTING THE MATTER SHOULD BE AS FOLLOWS: 1. THE DISBURSING OFFICER SHOULD INCLUDE THE AMOUNT OF THE ERRONEOUS DEDUCTIONS IN THE AMOUNT PAID TO THE EMPLOYEE ON THE NEXT REGULAR PAY ROLL WITH REQUEST TO THIS OFFICE TO RESTORE THE AMOUNT FROM THE RETIREMENT FUND TO THE APPROPRIATION. 2. WHEN THERE IS DOUBT AS TO WHETHER THE DEDUCTION WAS ERRONEOUS, OR WHEN FOR SOME REASON THE ADJUSTMENT CAN NOT PROPERLY AND ADEQUATELY BE MADE UPON A SUBSEQUENT REGULAR PAY ROLL, THE EMPLOYEE SHOULD SUBMIT CLAIM FOR THE AMOUNT OF THE ERRONEOUS DEDUCTIONS TO THIS OFFICE FOR DIRECT SETTLEMENT.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE TREASURY, JULY 31, 1926:

I HAVE YOUR LETTER OF JULY 16, 1926, SUBMITTING FOR DECISION A QUESTION AS TO THE PROPER PROCEDURE TO BE FOLLOWED IN THE MATTER OF EFFECTING ADJUSTMENTS WHERE RETIREMENT DEDUCTIONS FROM THE PAY OF EMPLOYEES OF THE CUSTODIAN SERVICE OF THE TREASURY DEPARTMENT ARE MADE FROM THE COMPENSATION OF TEMPORARY EMPLOYEES OR OTHER EMPLOYEES NOT SUBJECT TO THE PROVISIONS OF THE RETIREMENT LAWS.

PURSUANT TO THE PROVISIONS OF SECTION 10, ACT OF JULY 3, 1926, 44 STAT. 910, THERE WAS PROMULGATED BY THIS OFFICE UNDER DATE OF JULY 6, 1926, GENERAL REGULATIONS NO. 54, PARAGRAPH 4 OF WHICH PROVIDES:

AT THE END OF EACH MONTH EACH DISBURSING OFFICER MAKING DEDUCTIONS ON ACCOUNT OF THE RETIREMENT FUND WILL TRANSMIT HIS CHECK FOR THE AMOUNT DEDUCTED TO THE DISBURSING CLERK, BUREAU OF PENSIONS, AND WILL TRANSMIT WITH HIS ACCOUNT TO THE GENERAL ACCOUNTING OFFICE A LIST OF THE PAY ROLLS AND VOUCHERS ON WHICH RETIREMENT FUND DEDUCTIONS HAVE BEEN MADE, SHOWING THEREIN THE AMOUNT, NUMBER, AND DATE OF THE CHECK DRAWN IN FAVOR OF THE DISBURSING CLERK, BUREAU OF PENSIONS.

WITH REFERENCE TO SAID REGULATION, YOU PRESENT THE FOLLOWING:

EMPLOYEES OF THE CUSTODIAN SERVICE OF THE TREASURY DEPARTMENT ARE PAID BY SPECIAL DISBURSING AGENTS UPON PAY ROLLS PREPARED AND CERTIFIED BY CUSTODIANS. IT HAS HAPPENED, AND IN ALL PROBABILITY WILL CONTINUE TO BE THE CASE, THAT CUSTODIANS INADVERTENTLY MAKE DEDUCTIONS ON ACCOUNT OF THE RETIREMENT FUND FROM THE COMPENSATIONS OF TEMPORARY EMPLOYEES, WHO ARE NOT SUBJECT TO THE PROVISIONS OF THE RETIREMENT LAW. IT HAS BEEN THE PRACTICE IN THE PAST, IN SUCH INSTANCES, TO INSTRUCT THE CUSTODIAN TO SUBMIT TO THE SPECIAL DISBURSING AGENT A SUPPLEMENTAL ROLL COVERING THE UNDERPAYMENT, AND ATTACH COPIES OF THE LETTER OF INSTRUCTIONS TO THE ROLL UPON WHICH SAID UNDERPAYMENT WAS MADE, FOR THE INFORMATION OF THE ACCOUNTING OFFICE.

HERETOFORE, THERE HAS BEEN DEPOSITED TO THE CREDIT OF THE CIVIL SERVICE RETIREMENT AND DISABILITY FUND AT THE BEGINNING OF EACH FISCAL YEAR, THE ESTIMATED DEDUCTIONS DURING THAT YEAR AND AT THE CLOSE OF THE YEAR, IF THE AMOUNT SO DEPOSITED WAS NOT EQUAL TO THE ACTUAL DEDUCTIONS, AN AMOUNT SUFFICIENT TO BALANCE THE SAME WAS DEPOSITED. THIS PERMITTED THE DEPARTMENT TO ADJUST UNDERPAYMENTS OF THIS CHARACTER.

UNDER THE NEW REGULATIONS DEPOSIT WILL BE MADE AT THE END OF EACH MONTH BY THE SPECIAL DISBURSING AGENT. IF HE DOES NOT CORRECT THE ERROR OF THE CUSTODIAN IN THE CASE OF A TEMPORARY EMPLOYEE, THEN THERE IS DEPOSITED TO THE FUND MENTIONED AN AMOUNT TO WHICH IT IS NOT ENTITLED. A DECISION WILL BE APPRECIATED AS TO HOW SUCH DISCREPANCIES WILL BE CORRECTED. THE DEPARTMENT CAN NOT BE EXPECTED TO CORRECT THE SAME THROUGH THE SUBMISSION OF SUPPLEMENTAL PAY ROLLS, PAYABLE FROM THE SALARY APPROPRIATION, WHEN A LIKE AMOUNT HAS ALREADY BEEN PAID THEREFROM.

IT IS NOT APPARENT HOW ANY DIFFICULTY SHOULD ARISE IN CONNECTION WITH THE ADJUSTMENT OF RETIREMENT DEDUCTIONS ERRONEOUSLY MADE FROM THE PAY OF AN EMPLOYEE NOT SUBJECT TO THE RETIREMENT LAWS. THE TERMS OF PARAGRAPH 4 OF THE REGULATIONS, SUPRA, ARE SPECIFIC IN PROVIDING THAT THE DISBURSING OFFICER WILL TRANSMIT HIS CHECK FOR THE AMOUNT OF RETIREMENT DEDUCTIONS MADE BY HIM DURING THE MONTH TO THE DISBURSING CLERK, BUREAU OF PENSIONS.

IF, AFTER PAYMENT HAS BEEN MADE ON THE ROLL AND THE AMOUNT OF THE RETIREMENT DEDUCTIONS HAS BEEN TURNED OVER TO THE BUREAU OF PENSIONS, IT IS FOUND THAT THE EMPLOYEE SHOULD HAVE BEEN PAID THE FULL AMOUNT OF HIS SALARY WITHOUT DEDUCTION ON ACCOUNT OF THE RETIREMENT FUND, THE DISBURSING OFFICER SHOULD PAY THE EMPLOYEE UPON THE NEXT REGULAR PAY ROLL THE AMOUNT PREVIOUSLY DEDUCTED FROM THE EMPLOYEE'S PAY IF THERE IS NO ROOM FOR DOUBT THAT THE DEDUCTION ON THE PREVIOUS ROLL WAS ERRONEOUS,AND IN THE SUBMISSION OF HIS ACCOUNTS FOR AUDIT THE DISBURSING OFFICER SHOULD REQUEST THIS OFFICE TO ADJUST THE TRANSACTION BY RESTORING THE AMOUNT FROM THE RETIREMENT FUND TO THE APPROPRIATION OR APPROPRIATIONS TWICE CHARGED WITH THE AMOUNT OF SUCH ERRONEOUS DEDUCTIONS.

IN CASES WHERE THERE MAY BE DOUBT AS TO WHETHER THE DEDUCTION WAS ERRONEOUS, OR WHERE IT IS NOT POSSIBLE FOR THE DISBURSING OFFICER TO ADJUST THE MATTER WITH THE EMPLOYEE ON THE NEXT REGULAR PAY ROLL DUE TO SEPARATION FROM THE SERVICE OR ANY OTHER REASONS, THE EMPLOYEE SHOULD BE INSTRUCTED TO SUBMIT CLAIM FOR THE AMOUNT OF THE ERRONEOUS DEDUCTIONS TO THIS OFFICE FOR DIRECT SETTLEMENT, IN WHICH EVENT THE NECESSARY AND PROPER ADJUSTMENT WITH RESPECT TO THE RETIREMENT FUND WILL BE MADE.