A-49429, JUNE 23, 1933, 12 COMP. GEN. 661

A-49429: Jun 23, 1933

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SUCH TOTAL COMPENSATION FOR THE FOURTH QUARTER IS REQUIRED TO BE REDUCED 15 PERCENT UNDER THE PROVISIONS OF SECTIONS 2 AND 3 OF THE ACT OF MARCH 20. CLAIM AS MUCH OF THE EXCESS AS IS NECESSARY. MAY THIS EXCESS NOT BE CONSIDERED IN THE QUARTER IN WHICH IT IS CLAIMED AS DEFERRED COMPENSATION PAID. HELD AS FOLLOWS: IT IS NOTED THAT IT IS PROPOSED TO PAY FOURTH-CLASS POSTMASTERS (APPROXIMATELY 3. 400 IN NUMBER) WHO ARE ENTITLED TO A MAXIMUM COMPENSATION OF $1. 008.33 THAT WILL BE RECEIVED BY THEM AFTER DEDUCTING 8 1/3 PERCENT ON ACCOUNT OF FURLOUGH. THE PLAN OF MAKING THE NECESSARY ADJUSTMENTS IN THE JUNE QUARTER OF THE FISCAL YEAR IS APPROVED. WILL BE DETERMINED WHEN THE SETTLEMENT OF THE ACCOUNTS FOR THE JUNE QUARTER OF 1933 IS MADE.

A-49429, JUNE 23, 1933, 12 COMP. GEN. 661

ECONOMY ACT, AMENDED - COMPENSATION OF FOURTH-CLASS POSTMASTERS EVEN THOUGH THE TOTAL AMOUNT OF COMPENSATION OF FOURTH-CLASS POSTMASTERS FOR THE FOURTH QUARTER OF THE FISCAL YEAR 1933 MAY BE BASED ON POSTAL RECEIPTS AND CANCELLATIONS DURING A PRIOR QUARTER OF THE YEAR, SUCH TOTAL COMPENSATION FOR THE FOURTH QUARTER IS REQUIRED TO BE REDUCED 15 PERCENT UNDER THE PROVISIONS OF SECTIONS 2 AND 3 OF THE ACT OF MARCH 20, 1933, 48 STAT. 12, 13, AND EXECUTIVE ORDER OF MARCH 28, 1933.

COMPTROLLER GENERAL MCCARL TO THE POSTMASTER GENERAL, JUNE 23, 1933:

THE FOLLOWING LETTER HAS BEEN RECEIVED FROM THE POSTMASTER AT NEW YORK CITY:

AN INQUIRY MADE BY A DISTRICT POSTMASTER HAS BROUGHT UP A QUESTION WHICH IT MAY BE WELL TO MAKE CLEAR AS THE POINT MAY BE RAISED BY OTHER FOURTH- CLASS POSTMASTERS.

FOURTH-CLASS POSTMASTERS WHO EARN COMPENSATION IN SOME QUARTERS IN EXCESS OF THE AMOUNT THEY MAY CLAIM FOR THE LAPSED PERIOD, MAY IN SUCCEEDING QUARTERS, CLAIM AS MUCH OF THE EXCESS AS IS NECESSARY, THE TOTAL COMPENSATION NOT TO EXCEED $550 FOR THE TWO QUARTERS ENDING DECEMBER 31, $825 FOR THE THREE QUARTERS ENDING MARCH 31, AND $1,100 FOR THE FISCAL YEAR. MAY THIS EXCESS NOT BE CONSIDERED IN THE QUARTER IN WHICH IT IS CLAIMED AS DEFERRED COMPENSATION PAID, EARNED IN A PREVIOUS QUARTER? SO, SHOULD THE EXCESS COMPENSATION EARNED IN THE PRESENT FISCAL YEAR PRIOR TO APRIL 1 BY A FOURTH-CLASS POSTMASTER BUT CLAIMED IN THE JUNE QUARTER 1933, BE SUBJECT TO 15 PERCENT DEDUCTION?

THE ACT OF JUNE 4, 1926, 44 STAT. 695, PROVIDES AS FOLLOWS:

* * * THAT IN ADJUSTING THE QUARTERLY COMPENSATION OF POSTMASTERS OF THE FOURTH CLASS THE GENERAL ACCOUNTING OFFICE SHALL ALLOW SUCH COMPENSATION AS MAY BE SHOWN BY THE QUARTERLY RETURNS TO BE DUE, NOT EXCEEDING $275 FOR THE QUARTER ENDING SEPTEMBER 30, NOT EXCEEDING $550 FOR THE TWO QUARTERS ENDING DECEMBER 31, NOT EXCEEDING $825 FOR THE THREE QUARTERS ENDING MARCH 31, AND NOT EXCEEDING $1,100 FOR THE WHOLE FISCAL YEAR, EXCLUSIVE OF 3 CENTS COMMISSION ON EACH MONEY-ORDER ISSUED. * * *

THIS ACT FIXES A SPECIFIC LIMITATION ON THE TOTAL AMOUNT OF COMPENSATION AUTHORIZED TO BE RECEIVED BY FOURTH-CLASS POSTMASTERS FOR EACH OF THE FOURTH QUARTERS OF THE FISCAL YEAR. IN OTHER WORDS, THE ACT SIMPLY FIXES THE METHOD OR MEASURE FOR PAYING THE QUARTERLY INSTALLMENTS OF COMPENSATION.

DECISION OF AUGUST 1, 1932, A-15450, HELD AS FOLLOWS:

IT IS NOTED THAT IT IS PROPOSED TO PAY FOURTH-CLASS POSTMASTERS (APPROXIMATELY 3,400 IN NUMBER) WHO ARE ENTITLED TO A MAXIMUM COMPENSATION OF $1,100 PER ANNUM SUBJECT TO 8 1/3 PERCENT FURLOUGH DEDUCTION (SECTION 105 (D) (5) OF THE ACT OF JUNE 30, 1932, PUBLIC 212) A FIXED PROPORTIONATE AMOUNT OF THEIR COMPENSATION DURING THE FIRST THREE QUARTERS OF THE FISCAL YEAR 1933 AND ADJUST THE FURLOUGH DEDUCTIONS IN THE FOURTH AND LAST QUARTER. IN VIEW OF THE SMALL SPREAD BETWEEN $1,000, BELOW WHICH FOURTH- CLASS POSTMASTERS CAN NOT BE REDUCED, AND THE MAXIMUM OF $1,008.33 THAT WILL BE RECEIVED BY THEM AFTER DEDUCTING 8 1/3 PERCENT ON ACCOUNT OF FURLOUGH, THE PLAN OF MAKING THE NECESSARY ADJUSTMENTS IN THE JUNE QUARTER OF THE FISCAL YEAR IS APPROVED. UNDER THE PLAN THE AMOUNT OF THE APPROPRIATION "COMPENSATION TO POSTMASTERS" TO BE IMPOUNDED UNDER THE PROVISIONS OF SECTION 110 OF THE ACT OF JUNE 30, 1932, SUPRA, WILL BE DETERMINED WHEN THE SETTLEMENT OF THE ACCOUNTS FOR THE JUNE QUARTER OF 1933 IS MADE.

SECTION 2, TITLE II, OF THE ACT OF MARCH 20, 1933, 48 STAT. 12, 13, PROVIDES AS FOLLOWS:

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.

NOTE THE SECTION REQUIRES THAT THERE FIRST BE DETERMINED THE COMPENSATION WHICH THE EMPLOYEE WOULD "RECEIVE UNDER THE PROVISIONS OF ANY EXISTING LAW.' THE TOTAL AMOUNT OF COMPENSATION OF FOURTH-CLASS POSTMASTERS AUTHORIZED TO BE RECEIVED BY THE ACT OF 1926, FOR SERVICES RENDERED DURING THE FOURTH QUARTER, IS "RECEIVED UNDER * * * EXISTING LAW" EVEN THOUGH BASED ON POSTAL RECEIPTS OR CANCELLATIONS DURING A PRIOR QUARTER. THEREFORE, THE TOTAL AMOUNT OF COMPENSATION OF FOURTH CLASS POSTMASTERS FOR THE FOURTH QUARTER OF THE FISCAL YEAR 1933, THAT IS, FOR APRIL, MAY AND JUNE, 1933, IS REQUIRED TO BE REDUCED 15 PERCENT, SUBJECT, ALSO, TO SUCH FURTHER ADJUSTMENT AS MAY BE REQUIRED TO EFFECT THE 8 1/3 PERCENT REDUCTION OF THE COMPENSATION IN EXCESS OF THE RATE OF $1,000 PER ANNUM FOR THE FIRST THREE QUARTERS OF THE FISCAL YEAR, IF SUCH ADJUSTMENT PREVIOUSLY HAS NOT BEEN MADE.