A-17364, FEBRUARY 18, 1927, 6 COMP. GEN. 541

A-17364: Feb 18, 1927

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FROM THE SALARY OF AN EMPLOYEE OF THE PANAMA CANAL WHO IS IN RECEIPT OF MARINE CORPS RETIRED PAY. THE AMOUNT OF WHICH IS DEDUCTED FROM THE SALARY. FRANK FRAZIER IS EMPLOYED AS A WATCHMAN IN THE SERVICE OF THE PANAMA CANAL. THE SALARY FOR HIS POSITION IS FIXED AT $175 PER MONTH BUT HE IS ACTUALLY PAID FROM THE CANAL APPROPRIATIONS ONLY $80.50 PER MONTH UNDER AUTHORITY OF YOUR DECISIONS IN 3 COMP. IT APPEARS THAT RETIREMENT DEDUCTIONS OF 3 1/2 PERCENT HAVE BEEN MADE SINCE JULY 1. BASED ON A SALARY RATE OF $175 PER MONTH ON THE ASSUMPTION THAT THE LATTER IS THE BASIC PAY OF MR. I HAVE THE HONOR TO REQUEST YOUR DECISION IN THE PREMISES. OR COMPENSATION OF EMPLOYEES PAID PARTLY BY THE UNITED STATES AND PARTLY BY A STATE UNDER COOPERATIVE AGREEMENTS IS THE TOTAL SALARY RATE FIXED FOR THE POSITION HELD BY THE COOPERATIVE EMPLOYEE.

A-17364, FEBRUARY 18, 1927, 6 COMP. GEN. 541

RETIREMENT DEDUCTIONS - PANAMA CANAL EMPLOYEE RECEIVING MARINE CORPS RETIRED PAY RETIREMENT DEDUCTIONS, UNDER THE ACT OF JULY 3, 1926, 44 STAT. 904, FROM THE SALARY OF AN EMPLOYEE OF THE PANAMA CANAL WHO IS IN RECEIPT OF MARINE CORPS RETIRED PAY, THE AMOUNT OF WHICH IS DEDUCTED FROM THE SALARY, SHOULD BE COMPUTED ON THE BASIS OF THE TOTAL SALARY RATE FIXED FOR THE CIVILIAN POSITION HELD BY THE EMPLOYEE, AND THE TOTAL AMOUNT OF SUCH RETIREMENT DEDUCTIONS SHOULD BE CHARGED TO THE SALARY APPROPRIATION.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE INTERIOR, FEBRUARY 18, 1927:

CONSIDERATION HAS BEEN GIVEN TO YOUR LETTER OF FEBRUARY 7, 1927, AS FOLLOWS:

MR. FRANK FRAZIER IS EMPLOYED AS A WATCHMAN IN THE SERVICE OF THE PANAMA CANAL. THE SALARY FOR HIS POSITION IS FIXED AT $175 PER MONTH BUT HE IS ACTUALLY PAID FROM THE CANAL APPROPRIATIONS ONLY $80.50 PER MONTH UNDER AUTHORITY OF YOUR DECISIONS IN 3 COMP. GEN. 164 AND 4 COMP. GEN. 510, HE BEING A RETIRED MARINE ON RETIRED PAY OF $94.50 PER MONTH.

SUBDIVISION C OF SECTION 3 OF THE AMENDATORY CIVIL SERVICE RETIREMENT ACT OF JULY 3, 1926 (44 STAT. 904), INCLUDED WITHIN ITS PROVISIONS EMPLOYEES OF THE PANAMA CANAL AS THEREIN DEFINED, AND IT APPEARS THAT RETIREMENT DEDUCTIONS OF 3 1/2 PERCENT HAVE BEEN MADE SINCE JULY 1, 1926, BASED ON A SALARY RATE OF $175 PER MONTH ON THE ASSUMPTION THAT THE LATTER IS THE BASIC PAY OF MR. FRAZIER.

QUESTION HAS BEEN RAISED AS TO WHETHER THE DEDUCTIONS SHOULD BE BASED ON A SALARY OF $80.50 PER MONTH OR ON $175 PER MONTH, AND, IF THE FORMER, THE PROPER METHOD FOR ADJUSTMENT OF THE EXCESS DEDUCTIONS. IN ORDER THAT PROPER PRACTICE MAY BE DEFINITELY ESTABLISHED IN CASES OF THIS KIND, I HAVE THE HONOR TO REQUEST YOUR DECISION IN THE PREMISES.

SECTION 10 OF THE RETIREMENT ACT CITED IN YOUR SUBMISSION PROVIDES THAT THERE SHALL BE ,DEDUCTED AND WITHHELD FROM THE BASIC SALARY, PAY, OR COMPENSATION OF EACH EMPLOYEE TO WHOM THIS ACT APPLIES A SUM EQUAL TO 3 1/2 PERCENT OF SUCH EMPLOYEE'S BASIC SALARY, PAY, OR COMPENSATION.' SEE ALSO SECTION 4 OF THE SAME STATUTE PROVIDING THAT THE "BASIC SALARY, PAY, OR COMPENSATION" SHALL BE USED IN COMPUTING THE AMOUNT OF THE ANNUITY OF RETIRED EMPLOYEES.

IT HAS BEEN HELD UNDER THE FORMER RETIREMENT ACT OF MAY 22, 1920, 41 STAT. 614, CONTAINING SIMILAR PROVISIONS, THAT THE BASIC SALARY, PAY, OR COMPENSATION OF EMPLOYEES PAID PARTLY BY THE UNITED STATES AND PARTLY BY A STATE UNDER COOPERATIVE AGREEMENTS IS THE TOTAL SALARY RATE FIXED FOR THE POSITION HELD BY THE COOPERATIVE EMPLOYEE, INCLUDING THE AMOUNTS RECEIVED FROM BOTH SOURCES, ON THE BASIS OF WHICH THE RETIREMENT DEDUCTIONS SHOULD BE COMPUTED. 27 COMP. DEC. 59. IT HAS ALSO BEEN HELD THAT THE SALARY RATE FOR THE POSITION HELD BY AN EMPLOYEE FIXED UNDER THE PROVISIONS OF THE CLASSIFICATION ACT OF 1923 IS THE BASIC SALARY, PAY, OR COMPENSATION ON WHICH RETIREMENT DEDUCTIONS ARE TO BE COMPUTED, ALTHOUGH THE EMPLOYEE RECEIVES ONLY A PORTION OF SUCH SALARY RATE IN CASH UNDER THE SALARY APPROPRIATION, AND THE REMAINDER IN THE FORM OF ALLOWANCES FURNISHED IN KIND CHARGEABLE TO ANOTHER APPROPRIATION. IN SUCH A CASE THE TOTAL AMOUNT OF RETIREMENT DEDUCTIONS COMPUTED ON THE BASIS OF THE SALARY RATE FOR THE POSITION IS CHARGEABLE TO THE SALARY APPROPRIATION, AND NONE TO THE APPROPRIATION CHARGEABLE WITH THE COST OF THE ALLOWANCES FURNISHED IN KIND. 4 COMP. GEN. 1051. SEE ALSO 6 ID. 161, 164.

LIKEWISE IN THE PRESENT CASE THE "BASIC SALARY, PAY, OR COMPENSATION" OF THE PANAMA CANAL EMPLOYEE IS $175 PER MONTH, THE SALARY RATE FIXED FOR THE CIVILIAN POSITION HELD BY THE EMPLOYEE, ON THE BASIS OF WHICH THE RETIREMENT DEDUCTIONS SHOULD BE COMPUTED, ALTHOUGH THE EMPLOYEE RECEIVES ONLY A PORTION OF SUCH SALARY RATE UNDER THE SALARY APPROPRIATION. THE TOTAL AMOUNT OF THE RETIREMENT DEDUCTIONS SO COMPUTED SHOULD BE CHARGED TO THE SALARY APPROPRIATION AND NONE TO THE APPROPRIATION CHARGEABLE WITH THE MARINE RETIRED PAY RECEIVED BY THE EMPLOYEE.