A-20424, NOVEMBER 15, 1927, 7 COMP. GEN. 335

A-20424: Nov 15, 1927

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1927: REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 29. THAT THE DEPARTMENT REPORTS THAT THE DEMAND ON THE SURETY RESULTED FROM ERROR AND THAT THE PAYMENT MADE BY THE SURETY HAS NOT BEEN DEPOSITED IN THE TREASURY BUT IS BEING HELD PENDING DECISION WHETHER THE AMOUNT IN THE RETIREMENT FUND MAY BE APPLIED IN REDUCTION OF THE INDEBTEDNESS OF THE FORMER EMPLOYEE TO THE UNITED STATES AND AN AMOUNT EQUAL THERETO MAY BE REFUNDED TO THE SURETY. WHEN THE SURETY PAID THE AMOUNT OF THE FORMER EMPLOYEE'S INDEBTEDNESS TO THE UNITED STATES UNDER HIS BOND THE INDEBTEDNESS WAS CANCELED. THERE IS NOW NOTHING DUE FROM THE EMPLOYEE TO THE UNITED STATES ON ACCOUNT OF THE INDEMNITIES PAID BY THE GOVERNMENT FOR LOSS OF MAIL MATTER FOR WHICH THE FORMER EMPLOYEE WAS ADMINISTRATIVELY HELD RESPONSIBLE.

A-20424, NOVEMBER 15, 1927, 7 COMP. GEN. 335

RETIREMENT DEDUCTIONS - REFUNDS - SUBROGATION OF SURETY RETIREMENT DEDUCTIONS MADE FROM THE PAY OF A CIVILIAN EMPLOYEE UNDER THE ACT OF MAY 22, 1920, 41 STAT. 619, SHOULD BE PAID TO THE EMPLOYEE UPON HIS SEPARATION FROM THE SERVICE, WHERE THE SURETY MADE GOOD THE LOSSES SUSTAINED BY THE GOVERNMENT FOR WHICH THE EMPLOYEE HAD BEEN FOUND ADMINISTRATIVELY RESPONSIBLE.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE INTERIOR, NOVEMBER 15, 1927:

REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 29, 1927, REQUESTING DECISION WHETHER THE AMOUNT OF $67.90 IN THE RETIREMENT FUND TO THE CREDIT OF FLOYD E. BILLETT, A FORMER POST-OFFICE CLERK, MAY BE APPLIED, AS REQUESTED BY THE POST OFFICE DEPARTMENT, ON THE INDEBTEDNESS OF THE FORMER EMPLOYEE TO THE UNITED STATES, AMOUNTING TO $86 FOR INDEMNITIES PAID FOR LOSSES RESULTING FROM HIS RIFLING OF MAIL MATTER.

IT APPEARS THAT THE FORMER EMPLOYEE'S SURETY HAS PAID THE AMOUNT OF THE LOSS TO THE POST OFFICE DEPARTMENT, BUT THAT THE DEPARTMENT REPORTS THAT THE DEMAND ON THE SURETY RESULTED FROM ERROR AND THAT THE PAYMENT MADE BY THE SURETY HAS NOT BEEN DEPOSITED IN THE TREASURY BUT IS BEING HELD PENDING DECISION WHETHER THE AMOUNT IN THE RETIREMENT FUND MAY BE APPLIED IN REDUCTION OF THE INDEBTEDNESS OF THE FORMER EMPLOYEE TO THE UNITED STATES AND AN AMOUNT EQUAL THERETO MAY BE REFUNDED TO THE SURETY.

WHEN THE SURETY PAID THE AMOUNT OF THE FORMER EMPLOYEE'S INDEBTEDNESS TO THE UNITED STATES UNDER HIS BOND THE INDEBTEDNESS WAS CANCELED, AND THERE IS NOW NOTHING DUE FROM THE EMPLOYEE TO THE UNITED STATES ON ACCOUNT OF THE INDEMNITIES PAID BY THE GOVERNMENT FOR LOSS OF MAIL MATTER FOR WHICH THE FORMER EMPLOYEE WAS ADMINISTRATIVELY HELD RESPONSIBLE. AS THE SURETY PAID NO MORE THAN IT WAS OBLIGATED TO PAY UNDER THE BOND, THERE IS NO AUTHORITY FOR REFUNDING TO IT ANY PART OF THE AMOUNT PAID, AND NO RIGHT OF SUBROGATION EXISTS IN FAVOR OF THE SURETY WITH RESPECT TO ANY MONEYS IN THE RETIREMENT FUND.

ACCORDINGLY, YOU ARE ADVISED THAT IF NO OTHER CLAIM OF THE UNITED STATES HAS BEEN ASSERTED AGAINST FLOYD E. BILLETT, THE AMOUNT OF RETIREMENT DEDUCTIONS AND INTEREST TO HIS CREDIT IN THE RETIREMENT FUND MAY BE PAID TO HIM. SEE 7 COMP. GEN. 136; DECISION OF NOVEMBER 2, 1927, A-19367, 7 COMP. GEN. 305.