A-50153, AUGUST 3, 1933, 13 COMP. GEN. 38

A-50153: Aug 3, 1933

Additional Materials:

Contact:

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

 

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

IS SUBJECT TO THE PERCENTAGE REDUCTION FIXED BY THE EXECUTIVE ORDER ISSUED PURSUANT TO THE ACT OF MARCH 20. WHICH IS 15 PERCENT UP TO AND INCLUDING DECEMBER 31. IF THE MONTHLY PAYMENT TO THE BENEFICIARY IS LESS THAN $5 A MONTH. OR IF THE BENEFICIARY IS OR IS ABOUT TO BECOME A NONRESIDENT OF THE UNITED STATES. OR IF THE COMMISSION DETERMINES THAT IT IS FOR THE BEST INTERESTS OF THE BENEFICIARY. 1933: * * * SAID SECTION WAS MERELY DECLARATORY OF THE THERETOFORE EXISTING LAW AS CONSTRUED IN DECISION OF APRIL 15. IN WHICH IT WAS HELD (QUOTING FROM THE SYLLABUS): ALL DISABILITY COMPENSATION PAYMENTS UNDER THE EMPLOYEES' COMPENSATION ACT OF SEPTEMBER 7. ARE REQUIRED TO BE REDUCED 15 PERCENT EFFECTIVE APRIL 1.

A-50153, AUGUST 3, 1933, 13 COMP. GEN. 38

ECONOMY ACT, AMENDED - EMPLOYEES' DISABILITY COMPENSATION - LUMP-SUM AWARDS THE TOTAL AMOUNT OF EACH LUMP-SUM AWARD OF EMPLOYEES' DISABILITY COMPENSATION PAID DURING THE FISCAL YEAR 1934, COMPUTED IN ACCORDANCE WITH THE TERMS OF SECTION 14 OF THE EMPLOYEES' COMPENSATION ACT, IS SUBJECT TO THE PERCENTAGE REDUCTION FIXED BY THE EXECUTIVE ORDER ISSUED PURSUANT TO THE ACT OF MARCH 20, 1933, WHICH IS 15 PERCENT UP TO AND INCLUDING DECEMBER 31, 1933.

COMPTROLLER GENERAL MCCARL TO THE CHAIRMAN OF THE UNITED STATES EMPLOYEES' COMPENSATION COMMISSION, AUGUST 3, 1933:

THE CHIEF OF ACCOUNTS, UNITED STATES EMPLOYEES' COMPENSATION COMMISSION, HAS FORWARDED TO THIS OFFICE FOR PREAUDIT ADMINISTRATIVELY APPROVED VOUCHER IN FAVOR OF EMMETT C. SPICER, FOR THE PAYMENT OF A LUMP-SUM AWARD OF DISABILITY COMPENSATION UNDER SECTION 14 OF THE EMPLOYEES' COMPENSATION ACT OF SEPTEMBER 7, 1916, 39 STAT. 743, 746, IN THE TOTAL AMOUNT OF $523.61, LESS 15 PERCENT OF THE PRESENT VALUE OF THAT PART OF THE AWARD COVERING THE FISCAL YEAR 1934, OR THE NET AMOUNT OF $519.40, APPARENTLY ON THE THEORY THAT SECTION 14 OF THE INDEPENDENT OFFICES' APPROPRIATION ACT, 1934, APPROVED JUNE 16, 1933, 48 STAT. 307, REQUIRES 15 PERCENT REDUCTION FROM THE LUMP-SUM AWARDS ONLY TO THE EXTENT OF THE AMOUNT THAT WOULD BE PAYABLE IN THE 12 MONTHLY INSTALLMENTS DURING THE FISCAL YEAR 1934, HAD THE LUMP-SUM AWARD NOT BEEN MADE.

SECTION 14 OF THE EMPLOYEES' COMPENSATION ACT OF SEPTEMBER 7, 1916, SUPRA, PROVIDES IN PART AS FOLLOWS:

THAT IN CASES OF DEATH OR OF PERMANENT TOTAL OR PERMANENT PARTIAL DISABILITY, IF THE MONTHLY PAYMENT TO THE BENEFICIARY IS LESS THAN $5 A MONTH, OR IF THE BENEFICIARY IS OR IS ABOUT TO BECOME A NONRESIDENT OF THE UNITED STATES, OR IF THE COMMISSION DETERMINES THAT IT IS FOR THE BEST INTERESTS OF THE BENEFICIARY, THE LIABILITY OF THE UNITED STATES FOR COMPENSATION TO SUCH BENEFICIARY MAY BE DISCHARGED BY THE PAYMENT OF A LUMP SUM EQUAL TO THE PRESENT VALUE OF ALL FUTURE PAYMENTS OF COMPENSATION COMPUTED AT FOUR PERCENTUM TRUE DISCOUNT COMPOUNDED ANNUALLY. * * *

SECTION 14 OF THE INDEPENDENT OFFICES' APPROPRIATION ACT, 1934, DATED JUNE 16, 1933, PROVIDES IN PART AS FOLLOWS:

THE COMPENSATION AUTHORIZED BY SECTIONS 3, 4, AND 10 OF THE ACT OF SEPTEMBER 7, 1916, AS AMENDED, ACCRUING DURING THE FISCAL YEAR 1934, SHALL BE REDUCED BELOW THE AMOUNTS PRESCRIBED BY THE SAID ACT BY THE SAME PERCENTAGE AS THAT PRESCRIBED FOR THE REDUCTION OF COMPENSATION OF OFFICERS AND EMPLOYEES UNDER SECTION 3 OF TITLE II OF THE ACT ENTITLED "AN ACT TO MAINTAIN THE CREDIT OF THE UNITED STATES GOVERNMENT," APPROVED MARCH 20, 1933: PROVIDED FURTHER, THAT THE MONTHLY PAY AS DEFINED IN SECTION 40 OF THE ACT OF SEPTEMBER 7, 1916, SHALL BE DETERMINED WITHOUT REGARD TO THE TEMPORARY REDUCTIONS IN PAY REQUIRED BY THE ACT OF MARCH 20, 1933: * * *

SAID SECTION WAS MERELY DECLARATORY OF THE THERETOFORE EXISTING LAW AS CONSTRUED IN DECISION OF APRIL 15, 1933, 12 COMP. GEN. 595, IN WHICH IT WAS HELD (QUOTING FROM THE SYLLABUS):

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.

THE REDUCTIONS IN THE AMOUNT OF DISABILITY COMPENSATION PAYABLE UNDER THE EMPLOYEES' COMPENSATION ACT, REQUIRED BY THE ACT OF MARCH 20, 1933, AS CONSTRUED BY SAID DECISION OF APRIL 15, 1933, AND BY SECTION 14 OF THE INDEPENDENT OFFICES' APPROPRIATION ACT OF JUNE 16, 1933, ARE A PART OF THE GENERAL ECONOMY PROGRAM TO BALANCE THE BUDGET FOR THE FISCAL YEAR 1934. THE PHRASE ,ACCRUING DURING THE FISCAL YEAR 1934" AS USED IN SECTION 14 OF THE INDEPENDENT OFFICES ACT, WHILE REFERRING PRIMARILY TO THE MONTHLY PAYMENTS OF DISABILITY COMPENSATION MADE DURING THE FISCAL YEAR 1934, INCLUDES ANY PAYMENT, EITHER IN MONTHLY INSTALLMENTS OR IN A LUMP SUM, UNDER APPROPRIATIONS PROVIDED FOR THE FISCAL YEAR 1934 FOR DISABILITY COMPENSATION AWARDED UNDER THE EMPLOYEES' COMPENSATION ACT. THIS APPLICATION OF THE LAW IS REQUIRED BECAUSE IT MAY NOT NOW ACCURATELY BE DETERMINED WHETHER "ALL FUTURE PAYMENTS OF COMPENSATION" WITHIN THE MEANING OF SECTION 14 OF THE EMPLOYEES' COMPENSATION ACT ON THE BASIS OF WHICH THE "PRESENT VALUE" IS REQUIRED BY THAT STATUTE TO BE COMPUTED, WILL OR WILL NOT BE SUBJECT TO A PERCENTAGE REDUCTION, OR, IF SO, WHAT THE RATE THEREOF WILL BE AFTER DECEMBER 31, 1933. THUS, IT WILL BE SEEN THAT THE ADMINISTRATIVE COMPUTATION WOULD NOT BE CORRECT EVEN IF THE PERCENTAGE REDUCTION ON "FUTURE PAYMENTS OF COMPENSATION" WERE LIMITED TO THE FISCAL YEAR 1934 IN COMPUTING THE LUMP SUM AWARD, FOR THE REASON THAT THE RATE OF PERCENTAGE REDUCTION AFTER DECEMBER 31, 1933, MAY OR MAY NOT BE 15 PERCENT.

YOU ARE ADVISED, THEREFORE, THAT THE TOTAL AMOUNT OF EACH LUMP-SUM AWARD PAID DURING THE FISCAL YEAR 1934, COMPUTED IN ACCORDANCE WITH THE TERMS OF SECTION 14 OF THE EMPLOYEES' COMPENSATION ACT, IS SUBJECT TO THE PERCENTAGE REDUCTION FIXED BY EXECUTIVE ORDER ISSUED PURSUANT TO THE ACT OF MARCH 20, 1933, WHICH IS 15 PERCENT UP TO AND INCLUDING DECEMBER 31, 1933. THAT IS TO SAY, WITH RESPECT TO SUCH LUMP-SUM AWARDS TO BE MADE DURING THE PERIOD FROM APRIL 1 TO DECEMBER 31, 1933, THE AMOUNT OF THE AWARD SHOULD BE COMPUTED IN THE SAME MANNER AS BEFORE APRIL 1, 1933, AND THEN THE AMOUNT AS THUS DETERMINED SHOULD BE REDUCED BY 15 PERCENT THEREOF.