A-5307, OCTOBER 1, 1924, 4 COMP. GEN. 343

A-5307: Oct 1, 1924

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RETIREMENT DEDUCTIONS - EMPLOYEES OF NAVAL ESTABLISHMENTS THE DIFFERENCE IN THE RATE OF COMPENSATION FOR A POSITION IN THE REGULAR TRADE OR OCCUPATION OF AN EMPLOYEE OF THE NAVAL ESTABLISHMENT AND THAT OF A POSITION REQUIRING SPECIAL QUALIFICATIONS TO WHICH A REGULAR EMPLOYEE MAY BE TEMPORARILY ASSIGNED OR DETAILED IS NOT ADDITIONAL COMPENSATION ATTACHING TO THAT OF THE REGULAR TRADE OR OCCUPATION. SUCH AS IS EXPECTED FROM THE PROVISIONS OF THE RETIREMENT ACT OF MAY 22. THE HIGHER RATE PAID FOR A POSITION REQUIRING SPECIAL QUALIFICATIONS IS ITSELF THE "BASIC SALARY. OR COMPENSATION" OF A DIFFERENT AND HIGHER-CLASSED POSITION TEMPORARILY FILLED BY THE EMPLOYEE AND THE TOTAL AMOUNT THEREOF IS SUBJECT TO RETIREMENT DEDUCTIONS.

A-5307, OCTOBER 1, 1924, 4 COMP. GEN. 343

RETIREMENT DEDUCTIONS - EMPLOYEES OF NAVAL ESTABLISHMENTS THE DIFFERENCE IN THE RATE OF COMPENSATION FOR A POSITION IN THE REGULAR TRADE OR OCCUPATION OF AN EMPLOYEE OF THE NAVAL ESTABLISHMENT AND THAT OF A POSITION REQUIRING SPECIAL QUALIFICATIONS TO WHICH A REGULAR EMPLOYEE MAY BE TEMPORARILY ASSIGNED OR DETAILED IS NOT ADDITIONAL COMPENSATION ATTACHING TO THAT OF THE REGULAR TRADE OR OCCUPATION, SUCH AS IS EXPECTED FROM THE PROVISIONS OF THE RETIREMENT ACT OF MAY 22, 1920, 41 STAT. 614, BUT THE HIGHER RATE PAID FOR A POSITION REQUIRING SPECIAL QUALIFICATIONS IS ITSELF THE "BASIC SALARY, PAY, OR COMPENSATION" OF A DIFFERENT AND HIGHER-CLASSED POSITION TEMPORARILY FILLED BY THE EMPLOYEE AND THE TOTAL AMOUNT THEREOF IS SUBJECT TO RETIREMENT DEDUCTIONS. UNDER THE PROVISIONS OF THE RETIREMENT ACT OF MAY 22, 1920, 41 STAT. 615, THE RETIREMENT DEDUCTIONS FROM COMPENSATION OF NAVAL ESTABLISHMENT EMPLOYEES PAID BY THE PIECE SHOULD BE BASED ON THE TOTAL AMOUNT EARNED BY THE EMPLOYEES DURING THE REGULAR WORKING HOURS, EXCLUDING EARNINGS DURING OVERTIME.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE NAVY, OCTOBER 1, 1924:

I HAVE YOUR LETTER OF SEPTEMBER 17, 1924, REQUESTING DECISION WHETHER ADDITIONAL PAY OF CIVILIAN EMPLOYEES IN THE NAVAL ESTABLISHMENT FOR WORK NOT ORDINARILY REQUIRED OF AN EMPLOYEE IN HIS REGULAR TRADE OR OCCUPATION IS "BASIC SALARY, PAY, OR COMPENSATION" SUBJECT TO RETIREMENT DEDUCTIONS, AND ALSO UPON WHAT BASIS RETIREMENT DEDUCTIONS SHOULD BE MADE FROM THE COMPENSATION OF EMPLOYEES PAID BY THE PIECE.

YOU HAVE SUBMITTED A SCHEDULE OF WAGES FOR CIVILIAN EMPLOYEES IN THE NAVAL ESTABLISHMENT WHICH PROVIDES, IN ADDITION TO THE REGULAR RATE OF COMPENSATION FOR SPECIFIED TRADES AND OCCUPATIONS, ADDITIONAL PAY FOR WORK NOT ORDINARILY REQUIRED OF AN EMPLOYEE IN THOSE TRADES AND OCCUPATIONS.

YOU CITE THE FOLLOWING EXAMPLE AND MAKE COMMENT THEREON AS FOLLOWS:

A MECHANIC, WHETHER HE IS RATED MACHINIST, BLACKSMITH, PATTERN MAKER, OR JOINER, WHEN ASSIGNED AS PLANNER AND ESTIMATOR OR PROGRESSMAN DOES NOT PERFORM THE REGULAR DUTIES OF HIS TRADE BUT THOSE OF A PLANNER AND ESTIMATOR OR PROGRESSMAN, IS THE DIFFERENCE IN VALUE OF THE SERVICES OF EMPLOYEES WHEN WORKING AT THEIR TRADES AND AS PLANNERS AND ESTIMATORS OR PROGRESSMEN.

IT IS THE PRACTICE OF THE DEPARTMENT TO DETAIL THOSE EMPLOYEES WHO HAVE THE REQUISITE QUALIFICATIONS AND WHO ARE WILLING TO PERFORM THE SPECIAL SERVICE COVERED BY THE ABOVE-MENTIONED NOTES. * * * THIS PRACTICE OF IMPOSING ADDITIONAL PAY FOR SPECIAL SERVICE ON THE FLAT RATE OF PAY FOR THE TRADE OR OCCUPATION OBVIATES THE NECESSITY FOR ESTABLISHING RATINGS FOR EACH SPECIAL EMPLOYMENT REQUIRING THE MAINTENANCE OF ELIGIBLE REGISTERS FOR NUMEROUS POSITIONS FOR WHICH THERE IS ONLY OCCASIONAL NEED.

THE RETIREMENT ACT OF MAY 22, 1920, 41 STAT. 614, 615, PROVIDES THAT RETIREMENT DEDUCTIONS SHALL BE MADE FROM THE "BASIC SALARY, PAY, OR COMPENSATION" OF EMPLOYEES WHO ARE SUBJECT TO THE PROVISIONS OF THE ACT, WHICH PHRASE HAS BEEN DEFINED IN SECTION 2 AS FOLLOWS:

THE TERM "BASIC SALARY, PAY, OR COMPENSATION" WHEREVER USED IN THIS ACT SHALL BE SO CONSTRUED AS TO EXCLUDE FROM THE OPERATION OF THE ACT ALL BONUSES, ALLOWANCES, OVERTIME PAY, OR SALARY, PAY OR COMPENSATION GIVEN IN ADDITION TO THE BASE PAY OF THE POSITIONS AS FIXED BY LAW OR REGULATION.

UNDER THE PROCEDURE ADOPTED FOR PAYING CIVILIAN EMPLOYEES OF THE NAVAL ESTABLISHMENT THE INCREASED RATE FOR THE EMPLOYMENT OR POSITION REQUIRING SPECIAL QUALIFICATIONS TO WHICH AN EMPLOYEE MAY BE ASSIGNED OR DETAILED IS NOT IN FACT PAY OR COMPENSATION GIVEN IN ADDITION TO THE BASIC PAY OF THE REGULAR POSITION HELD BY THE EMPLOYEE, BUT A HIGHER OR INCREASED RATE FOR A DIFFERENT POSITION. THE BASE PAY OF THE REGULAR POSITION IS USED ONLY FOR THE PURPOSE OF COMPUTING A HIGHER RATE OF PAY FOR A HIGHER-CLASSED POSITION. ACCORDINGLY, THE DIFFERENCE IN THE RATE FOR THE TWO POSITIONS DOES NOT ATTACH AS COMPENSATION TO THE REGULAR POSITION OF THE EMPLOYEE, BUT FOR THE TIME BEING THE EMPLOYEE IS IN ANOTHER POSITION WITH A DIFFERENT AND HIGHER BASE PAY, THE TOTAL AMOUNT OF WHICH IS SUBJECT TO RETIREMENT DEDUCTIONS.

THE "BASIC SALARY, PAY, OR COMPENSATION" OF EMPLOYEES PAID BY THE PIECE IS THE TOTAL AMOUNT EARNED BY THE EMPLOYEES DURING THE REGULAR HOURS OF WORK, WHICH IN THE CASE OF EMPLOYEES OF THE NAVAL ESTABLISHMENTS, IT IS UNDERSTOOD, IS EIGHT HOURS PER DAY. HENCE RETIREMENT DEDUCTIONS SHOULD BE BASED ON THE TOTAL AMOUNT EARNED BY THE EMPLOYEES DURING EIGHT HOURS PER DAY, EXCLUDING EARNINGS DURING OVERTIME.