A-48395, APRIL 15, 1933, 12 COMP. GEN. 595

A-48395: Apr 15, 1933

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

ARE REQUIRED TO BE REDUCED 15 PERCENT EFFECTIVE APRIL 1. WHETHER THE INJURY WAS SUSTAINED BEFORE OR AFTER APRIL 1. YOU ARE REQUESTED TO ADVISE THE COMMISSION AT THE EARLIEST POSSIBLE DATE WHETHER DISABILITY COMPENSATION PAID UNDER THE ACT OF SEPTEMBER 7. IT WAS HELD (QUOTING FROM THE SYLLABUS): THE MONTHLY RATE OF PAY OF AN EMPLOYEE INJURED DURING THE CURRENT FISCAL YEAR. IS TO BE DETERMINED BY THE REGULAR RATE OF HIS COMPENSATION WITHOUT REGARD TO DEDUCTIONS REQUIRED BY THE ECONOMY ACT. HAVE BEEN DIMINISHED). FOR THAT PORTION OF THE FISCAL YEAR 1933 BEGINNING WITH THE FIRST DAY OF THE CALENDAR MONTH FOLLOWING THE MONTH DURING WHICH THIS ACT IS ENACTED. THESE PROVISIONS ARE ESSENTIALLY DIFFERENT FROM THE PROVISIONS OF THE ECONOMY ACT OF JUNE 30.

A-48395, APRIL 15, 1933, 12 COMP. GEN. 595

ECONOMY ACT, AMENDED - EMPLOYEES' COMPENSATION COMMISSION - REDUCTION IN DISABILITY COMPENSATION ALL DISABILITY COMPENSATION PAYMENTS UNDER THE EMPLOYEES' COMPENSATION ACT OF SEPTEMBER 7, 1916, AS AMENDED, ARE REQUIRED TO BE REDUCED 15 PERCENT EFFECTIVE APRIL 1, 1933, WHETHER THE INJURY WAS SUSTAINED BEFORE OR AFTER APRIL 1, 1933. THE RATE OF DISABILITY COMPENSATION SHOULD BE DETERMINED AS HERETOFORE ON THE BASIC RATE OF COMPENSATION OF THE EMPLOYEE AS REQUIRED TO BE FIXED UNDER SECTION 2 (A), TITLE II, OF THE ACT OF MARCH 20, 1933, 48 STAT. 12, AND THE RATE SO DETERMINED REDUCED 15 PERCENT AS REQUIRED BY THE PROVISIONS OF SECTION 2 (B) AND SECTION 3 OF THE ACT, THE AMOUNT OF THE REDUCTION TO BE IMPOUNDED IN THE TREASURY UNDER THE TERMS OF SECTION 8 OF THE ACT.

COMPTROLLER GENERAL MCCARL TO THE CHAIRMAN OF THE UNITED STATES EMPLOYEES' COMPENSATION COMMISSION, APRIL 15, 1933:

CONSIDERATION HAS BEEN GIVEN TO YOUR LETTER OF APRIL 7, 1933, AS FOLLOWS:

WITH REFERENCE TO YOUR DECISION OF NOVEMBER 25, 1932, (A-45640), AND TO THE ACT TO MAINTAIN THE CREDIT OF THE UNITED STATES GOVERNMENT, APPROVED MARCH 20, 1933 (PUBLIC, NO. 2, 73D CONGRESS), YOU ARE REQUESTED TO ADVISE THE COMMISSION AT THE EARLIEST POSSIBLE DATE WHETHER DISABILITY COMPENSATION PAID UNDER THE ACT OF SEPTEMBER 7, 1916, ON ACCOUNT OF INJURIES SUSTAINED ON OR AFTER APRIL 1, 1933, SHOULD BE BASED ON THE EMPLOYEE'S RATE OF PAY AS DETERMINED UNDER TITLE 2, SECTION 2,SUBPARAGRAPH (A) OF THE ACT OF MARCH 20, 1933, OR ON THE RATE AFTER REDUCTION PURSUANT TO THE EXECUTIVE ORDER, AS PROVIDED IN TITLE 2, SECTION 2, SUBPARAGRAPH (B) AND SECTION 3, PARAGRAPH (B) OF THE ACT.

IN THE DECISION OF NOVEMBER 25, 1932, 12 COMP. GEN. 454, IT WAS HELD (QUOTING FROM THE SYLLABUS):

THE MONTHLY RATE OF PAY OF AN EMPLOYEE INJURED DURING THE CURRENT FISCAL YEAR, FOR THE PURPOSE OF COMPUTING DISABILITY COMPENSATION UNDER THE EMPLOYEES' COMPENSATION ACT, AS AMENDED, IS TO BE DETERMINED BY THE REGULAR RATE OF HIS COMPENSATION WITHOUT REGARD TO DEDUCTIONS REQUIRED BY THE ECONOMY ACT.

SECTIONS 1 (B) AND 2, TITLE II, OF THE ACT OF MARCH 20, 1933, PROVIDE AS FOLLOWS:

SEC. 1. WHEN USED IN THIS TITLE---

(B) THE TERM "COMPENSATION" MEANS ANY SALARY, PAY, WAGE, ALLOWANCE (EXCEPT ALLOWANCES FOR TRAVEL), OR OTHER EMOLUMENT PAID FOR SERVICES RENDERED IN ANY CIVILIAN OR NONCIVILIAN OFFICE, POSITION, OR EMPLOYMENT; AND INCLUDES THE RETIRED PAY OF JUDGES (EXCEPT JUDGES WHOSE COMPENSATION, PRIOR TO RETIREMENT OR RESIGNATION, COULD NOT, UNDER THE CONSTITUTION, HAVE BEEN DIMINISHED), AND THE RETIRED PAY OF ALL COMMISSIONED AND OTHER PERSONNEL OF THE COAST AND GEODETIC SURVEY, THE LIGHTHOUSE SERVICE, AND THE PUBLIC HEALTH SERVICE, AND THE RETIRED PAY OF ALL COMMISSIONED AND OTHER PERSONNEL OF THE ARMY, NAVY, MARINE CORPS, AND COAST GUARD; BUT DOES NOT INCLUDE PAYMENTS OUT OF ANY RETIREMENT, DISABILITY, OR RELIEF FUND MADE UP WHOLLY OR IN PART OF CONTRIBUTIONS OF EMPLOYEES.

SEC. 2. FOR THAT PORTION OF THE FISCAL YEAR 1933 BEGINNING WITH THE FIRST DAY OF THE CALENDAR MONTH FOLLOWING THE MONTH DURING WHICH THIS ACT IS ENACTED, AND FOR THE FISCAL YEAR ENDING JUNE 30, 1934, THE COMPENSATION OF EVERY OFFICER OR EMPLOYEE SHALL BE DETERMINED AS FOLLOWS:

(A) THE COMPENSATION WHICH SUCH OFFICER OR EMPLOYEE WOULD RECEIVE UNDER THE PROVISIONS OF ANY EXISTING LAW, SCHEDULE, REGULATION, EXECUTIVE ORDER, OR DEPARTMENTAL ORDER SHALL FIRST BE DETERMINED AS THOUGH THIS TITLE (EXCEPT SECTION 4) HAD NOT BEEN ENACTED.

(B) THE COMPENSATION AS DETERMINED UNDER SUBPARAGRAPH (A) OF THIS SECTION SHALL BE REDUCED BY THE PERCENTAGE, IF ANY, DETERMINED IN ACCORDANCE WITH SECTION 3 OF THIS TITLE.

THESE PROVISIONS ARE ESSENTIALLY DIFFERENT FROM THE PROVISIONS OF THE ECONOMY ACT OF JUNE 30, 1932, ON THE BASIS OF WHICH THE QUOTED DECISION WAS RENDERED. THE EXPRESS EXCEPTION FROM THE DEFINITION OF "COMPENSATION" OF "PAYMENTS OUT OF ANY RETIREMENT, DISABILITY, OR RELIEF FUND MADE UP WHOLLY OR IN PART OF CONTRIBUTIONS OF EMPLOYEES" IMPLIES, PURSUANT TO THE LEGAL MAXIM ,EXPRESSIO UNIUS EST EXCLUSIO ALTERIUS" THAT ANY PAYMENT IN THE FORM OF AN "ALLOWANCE" OR GRATUITY OUT OF "ANY RETIREMENT, DISABILITY, OR RELIEF FUND" NOT MADE UP "WHOLLY OR IN PART OF CONTRIBUTIONS OF EMPLOYEES" IS SUBJECT TO THE REDUCTIONS REQUIRED UNDER THE ACT. THIS IS IN LINE WITH THE PROVISIONS OF TITLE I OF THE ACT REQUIRING REDUCTIONS IN THE DISABILITY BENEFITS TO VETERANS FOR MILITARY AND NAVAL SERVICE, AND, ALSO, WITH THE PROVISIONS OF SECTION 5, TITLE II, OF THE ACT REQUIRING A REDUCTION IN THE RETIRED PAY OF THE MILITARY AND NAVAL PERSONNEL. FURTHERMORE, AS STATED IN DECISION OF APRIL 7, 1933, 12 COMP. GEN. 580,"SECTIONS 1, 2, AND 3 (TITLE II) OF THE ACT OF MARCH 20, 1933, PRESCRIBES A DEFINITE BASIS FOR FIXING THE COMPENSATION OF EVERY FEDERAL OFFICER AND EMPLOYEE, AS OF APRIL 1, 1933, AND NO EXCEPTIONS BY IMPLICATION MAY BE RECOGNIZED.' IT IS ONLY REASONABLE TO CONCLUDE THAT DISABILITY BENEFITS--- WITH THE ONE EXCEPTION NOTED IN THE ACT--- BASED ON THE SALARY RATES OF EVERY OFFICER AND EMPLOYEE, PAID FOR CIVILIAN SERVICE, SHOULD LIKEWISE BE REDUCED.

YOU ARE ADVISED, THEREFORE, THAT ALL DISABILITY COMPENSATION PAYMENTS UNDER THE ACT OF SEPTEMBER 7, 1916, AS AMENDED, ARE REQUIRED TO BE REDUCED 15 PERCENT, EFFECTIVE APRIL 1, 1933, WHETHER THE INJURY WAS SUSTAINED BEFORE OR AFTER APRIL 1, 1933. THAT IS TO SAY, THE RATE SHOULD BE FIRST DETERMINED AS HERETOFORE ON THE BASIC RATE OF COMPENSATION OF THE EMPLOYEE AS REQUIRED TO BE FIXED UNDER SECTION 2 (A), TITLE II, OF THE ACT OF MARCH 20, 1933, AND THE RATE SO DETERMINED SHOULD THEN BE REDUCED BY 15 PERCENT THEREOF AS REQUIRED BY THE PROVISIONS OF SECTION 2 (B) AND SECTION 3 OF THE ACT, THE AMOUNT OF THE REDUCTION TO BE IMPOUNDED IN THE TREASURY UNDER THE TERMS OF SECTION 8 OF THE ACT.