A-57221, AUGUST 29, 1934, 14 COMP. GEN. 174

A-57221: Aug 29, 1934

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ARE SUBJECT TO THE PROVISIONS OF THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS. EMPLOYEES OF THE RAILROAD RETIREMENT BOARD ARE ENTITLED TO TRAVELING EXPENSES UNDER THE PROVISIONS OF SECTION 9 (B) OF THE ACT OF JUNE 27. ARE SUBJECT TO THE CIVIL SERVICE LAWS AND REGULATIONS. INITIAL APPOINTMENTS OF PERSONNEL MADE BY THE BOARD WILL NOT REQUIRE PRESIDENTIAL APPROVAL UNDER SECTION 203 OF THE ECONOMY ACT. SAID MEMBERS AND EMPLOYEES ARE NOT REQUIRED TO CONTRIBUTE TO THE CIVIL SERVICE DISABILITY AND RETIREMENT FUND UNDER THE TERMS OF THE CIVIL RETIREMENT ACT. THE CARRIER CONTRIBUTION FOR MEMBERS AND EMPLOYEES OF THE RAILROAD RETIREMENT BOARD WHO ARE MADE SUBJECT TO THE RAILROAD RETIREMENT SYSTEM.

A-57221, AUGUST 29, 1934, 14 COMP. GEN. 174

RAILROAD RETIREMENT BOARD - TRAVELING EXPENSES - APPOINTMENTS - COMPENSATION - RETIREMENT WITH THE EXCEPTION THAT THERE MAY BE REIMBURSEMENT ON AN ACTUAL EXPENSE BASIS FOR SUBSISTENCE, MEMBERS OF THE RAILROAD RETIREMENT BOARD, CREATED BY THE ACT OF JUNE 27, 1934, 48 STAT. 1283, ARE SUBJECT TO THE PROVISIONS OF THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS. EMPLOYEES OF THE RAILROAD RETIREMENT BOARD ARE ENTITLED TO TRAVELING EXPENSES UNDER THE PROVISIONS OF SECTION 9 (B) OF THE ACT OF JUNE 27, 1934, 48 STAT. 1287, ONLY IN ACCORDANCE WITH THE PROVISIONS OF THE SUBSISTENCE EXPENSE ACT OF 1926, AS AMENDED BY THE ECONOMY ACT, AND THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS ISSUED PURSUANT THERETO. THE APPOINTMENT OR EMPLOYMENT OF, AND THE RATES OF COMPENSATION PAID TO, THE EMPLOYEES OF THE RAILROAD RETIREMENT BOARD UNDER THE TERMS OF THE ACT OF JUNE 27, 1934, 48 STAT. 1283, ARE SUBJECT TO THE CIVIL SERVICE LAWS AND REGULATIONS, THE CLASSIFICATION ACT OF 1823, AS AMENDED, AND THE APPLICABLE PROVISIONS OF THE ECONOMY ACT. INITIAL APPOINTMENTS OF PERSONNEL MADE BY THE BOARD WILL NOT REQUIRE PRESIDENTIAL APPROVAL UNDER SECTION 203 OF THE ECONOMY ACT. AS THE ACT OF JUNE 27, 1934, 48 STAT. 1283, SPECIFICALLY SUBJECTS THE MEMBERS AND EMPLOYEES OF THE RAILROAD RETIREMENT BOARD TO THE RETIREMENT SYSTEM THEREIN ESTABLISHED FOR RAILROAD EMPLOYEES, SAID MEMBERS AND EMPLOYEES ARE NOT REQUIRED TO CONTRIBUTE TO THE CIVIL SERVICE DISABILITY AND RETIREMENT FUND UNDER THE TERMS OF THE CIVIL RETIREMENT ACT. UNDER SECTION 5 OF THE ACT OF JUNE 27, 1934, 48 STAT. 1285, REQUIRING RAILROAD EMPLOYEES AND THE CARRIERS TO MAKE CONTRIBUTIONS INTO THE RAILROAD RETIREMENT FUND FOR THE COST OF OPERATING THE RAILROAD RETIREMENT SYSTEM, THERE SHOULD BE INCLUDED BY THE RAILROAD RETIREMENT BOARD, AS AN ELEMENT IN DETERMINING THE CONTRIBUTION PERCENTAGE, UNDER THE HEADING OF ADMINISTRATIVE EXPENSES, THE CARRIER CONTRIBUTION FOR MEMBERS AND EMPLOYEES OF THE RAILROAD RETIREMENT BOARD WHO ARE MADE SUBJECT TO THE RAILROAD RETIREMENT SYSTEM, AS WELL AS THE COMPENSATION AND EXPENSES OF SUCH MEMBERS AND EMPLOYEES. THE COMPENSATION OF BOTH MEMBERS AND EMPLOYEES OF THE RAILROAD RETIREMENT BOARD, CREATED BY THE ACT OF JUNE 27, 1934, 48 STAT. 1283, IS SUBJECT TO THE PERCENTAGE REDUCTION APPLICABLE TO FEDERAL PERSONNEL UNDER THE PROVISIONS OF THE ECONOMY ACT, AS AMENDED. THE RAILROAD RETIREMENT FUND IS ESTABLISHED UNDER THE ACT OF JUNE 27, 1934, 48 STAT. 1283, AND ALL PAYMENTS THEREFROM ARE SUBJECT TO AUDIT BY THE GENERAL ACCOUNTING OFFICE. ALL EXPENDITURES MADE FROM THE RAILROAD RETIREMENT FUND UNDER AUTHORITY OF THE ACT OF JUNE 27, 1934, 48 STAT. 1283, MAY BE MADE ONLY WHEN APPROVED BY THE RAILROAD RETIREMENT BOARD. THE APPROVAL OF THE BOARD MAY BE SHOWN ON THE VOUCHERS BY THE SIGNATURE OF ANY MEMBER OF EMPLOYEE OF THE BOARD DULY DESIGNATED AND AUTHORIZED TO PERFORM SUCH FUNCTION WITH THE WORDS "BY ORDER OF THE BOARD.' THE BOARD SHOULD DESIGNATE WHO MAY APPROVE VOUCHERS, ETC., IN THE ABSENCE OF THE ONE WHO IS DESIGNATED PRIMARILY TO PERFORM SUCH DUTY.

COMPTROLLER GENERAL MCCARL TO THE CHAIRMAN, RAILROAD RETIREMENT BOARD, AUGUST 29, 1934:

THERE HAS BEEN RECEIVED YOUR LETTER OF AUGUST 15, 1934, AS FOLLOWS:

THE RAILROAD RETIREMENT ACT (PUBLIC NO. 485, 73D CONGRESS) APPROVED BY THE PRESIDENT JUNE 27, 1934, ESTABLISHES THE RAILROAD RETIREMENT BOARD.

SECTION 9 (A) READS, IN PART, AS FOLLOWS:

"* * * AS AN INDEPENDENT AGENCY IN THE EXECUTIVE BRANCH OF THE GOVERNMENT * * *. EACH OF SAID MEMBERS SHALL RECEIVE A SALARY OF $10,000PER YEAR, TOGETHER WITH NECESSARY TRAVELING EXPENSES, OR PER DIEM ALLOWANCE IN LIEU THEREOF, WHILE AWAY FROM THE PRINCIPAL OFFICE OF THE BOARD ON DUTIES REQUIRED BY THIS ACT.'

ALSO SECTION 9 (A):

"THE MEMBERS AND EMPLOYEES OF THE BOARD SHALL BE INCLUDED AS EMPLOYEES UNDER THIS ACT AND TOGETHER WITH EMPLOYEES RECEIVING ANNUITIES SHALL BE FURNISHED FREE TRANSPORTATION IN THE SAME MANNER AS SUCH TRANSPORTATION IS FURNISHED TO EMPLOYEES.'

SECTION 9 (B):

"THE BOARD SHALL * * * EMPLOY SUCH PERSONS AND PROVIDE FOR THEIR COMPENSATION AND EXPENSES, AS MAY BE NECESSARY TO THE PROPER DISCHARGE OF ITS FUNCTIONS.'

FURTHERMORE, SECTION 5:

"EACH EMPLOYEE SHALL PAY AN EMPLOYEE CONTRIBUTION IN A PERCENTAGE UPON HIS COMPENSATION. EACH CARRIER SHALL PAY A CARRIER CONTRIBUTION EQUAL TO TWICE THE CONTRIBUTIONS OF EACH EMPLOYEE OF SUCH CARRIER * * *.THE CONTRIBUTION PERCENTAGE SHALL BE DETERMINED BY THE BOARD FROM TIME TO TIME * * *. UNTIL THE BOARD SHALL DETERMINE ON A DIFFERENT PERCENTAGE THE EMPLOYEE CONTRIBUTION PERCENTAGE SHALL BE 2 PERCENTUM.'

YOUR DECISION IS RESPECTFULLY REQUESTED REGARDING THE FOLLOWING QUESTIONS:

1. DOES THE ESTABLISHMENT OF THE BOARD "AS AN INDEPENDENT AGENCY IN THE EXECUTIVE BRANCH OF THE GOVERNMENT" SUBJECT ITS MEMBERS TO THE PROVISIONS OF THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS, AS REVISED, IN THE PAYMENT OF "NECESSARY TRAVELING EXPENSES OR PER DIEM ALLOWANCE IN LIEU THEREOF?

2. DOES THE TERM "EXPENSES" AS INCLUDED IN THAT PORTION OF SEC. 9 (B) QUOTED ABOVE, AUTHORIZE THE PAYMENT OF "TRAVELING EXPENSES" TO EMPLOYEES OF THE BOARD, AND IF IT DOES, ARE THEY TO BE GOVERNED BY THE SAME RULES AS APPLY TO MEMBERS OF THE BOARD?

3. AS THE BOARD IS AUTHORIZED TO (SEC. 9 (B) ( "EMPLOY SUCH PERSONS * * * AS MAY BE NECESSARY * * *," DO THE PROVISIONS OF SEC. 203, PART II, OF ECONOMY ACT OF 1933 (PUBLIC, NO. 212, 72D CONGRESS), AS CONTINUED AND MODIFIED BY SEC. 24 (A) OF THE INDEPENDENT OFFICES APPROPRIATION ACT, 1935 (PUBLIC, NO. 141, 73D CONGRESS), APPLY TO APPOINTMENTS TO THE STAFF, OR MAY APPOINTMENTS BE MADE WITHOUT PRESIDENTIAL AUTHORITY?

4. AS MEMBERS OF THE STAFF ARE "EMPLOYEES," AS DEFINED IN SEC. 1 (B) OF THE ACT, WILL THEY BE SUBJECT TO THE CIVIL SERVICE, AND AS SUCH BE REQUIRED TO CONTRIBUTE TO BOTH THE CIVIL-SERVICE AND RAILROAD RETIREMENT FUNDS?

5. DOES THE RAILROAD RETIREMENT BOARD MAKE CARRIER CONTRIBUTIONS FOR ITS EMPLOYEES? IF NOT, WHO MAKES SUCH CONTRIBUTIONS?

6. WILL SALARIES PAYABLE TO EMPLOYEES FROM THE RAILROAD RETIREMENT FUND BE SUBJECT TO THE 5-PERCENT REDUCTION REQUIRED UNDER SEC. 3 OF PUBLIC, NO. 2, 73D CONGRESS, AS AMENDED BY SEC. 21, SUBSEC. (A) (2), INDEPENDENT OFFICES APPROPRIATION ACT, 1935 (PUBLIC, NO. 141, 73D CONGRESS/?

IN VIEW OF THE FACT THAT THE SALARY EXPENSE OF THE BOARD WILL CONSTITUTE NO BURDEN ON THE PUBLIC TREASURY, WE DOUBT THAT THE DEDUCTION WILL SERVE ANY USEFUL PURPOSE.

7. THE SAME QUESTION IS ASKED REGARDING MEMBERS OF THE BOARD, AND YOUR ATTENTION IS INVITED TO THE FACT THAT THE SALARIES OF THE MEMBERS OF THE BOARD WERE FIXED SUBSEQUENTLY TO THE ENACTMENT OF THE INDEPENDENT OFFICES APPROPRIATION ACT, 1935, AND CONSTITUTE NO BURDEN ON THE PUBLIC TREASURY.

IN THIS CONNECTION, WE CALL YOUR ATTENTION TO YOUR LETTER NO. A 49565, DATED JUNE 20, 1933, ADDRESSED TO THE FEDERAL COORDINATOR OF TRANSPORTATION, WHEREIN YOU STATE THAT AT THE DATE OF THE APPROVAL OF THE ACT CREATING THE OFFICE OF FEDERAL COORDINATOR OF TRANSPORTATION,

"THERE WAS NO EXISTING LAW, SCHEDULE, EXECUTIVE ORDER OR DEPARTMENTAL ORDER BY WHICH THE COMPENSATION OF SUCH EMPLOYEES COULD BE DETERMINED. ACCORDINGLY, THERE IS NO BASIC COMPENSATION UPON WHICH TO APPLY THE PERCENTAGE REDUCTION ESTABLISHED BY THE EXECUTIVE ORDER ESTABLISHED UNDER SECTION 3, TITLE II, OF THE ACT OF MARCH 20, 1933.'

WE RESPECTFULLY SUBMIT THAT THE REASONING OF THIS LETTER WOULD APPLY TO THE QUESTION AS TO WHETHER DEDUCTIONS BE MADE FROM SALARIES OF THE RAILROAD RETIREMENT BOARD.

8. IN SEC. 9 (B) OF THE ACT,"THE BOARD IS EMPOWERED TO MAINTAIN OFFICES, PROVIDE NECESSARY EQUIPMENT," ETC., BUT NO PROVISION IS MADE FOR THE APPROVAL OF VOUCHERS COVERING THE EXPENDITURE OF FUNDS. AS THE CONGRESS HAS IN SEC. 8 "* * * APPROPRIATED SUCH SUMS NOT IN EXCESS OF THE AMOUNTS IN SAID FUNDS AS MAY BE NECESSARY TO PAY ALL ANNUITIES, OTHER DISBURSEMENTS AND EXPENSES OF ADMINISTRATION OF THIS ACT," IT WOULD SEEM THAT IT WAS ITS INTENTION THAT THE FUND SHOULD BE CONSIDERED AS A TRUST FUND SIMILAR IN CHARACTER TO THAT OF THE FEDERAL COORDINATOR OF TRANSPORTATION, AND SO SUBJECT TO AUDIT BY THE GENERAL ACCOUNTING OFFICE, AND TO THE SAME RULES AND REGULATIONS AS OTHER GOVERNMENT FUNDS. IF SUCH IS THE CASE, SHOULD EXPENDITURES BE APPROVED BY THE CHAIRMAN OF THE BOARD, OR BY SOME ONE DESIGNATED BY HIM TO APPROVE "BY DIRECTION OF THE CHAIRMAN," OR WILL IT BE NECESSARY TO HAVE A MAJORITY OF THE BOARD APPROVE ALL EXPENDITURES?

9. IF YOU DECIDE THAT THE LAW IS NOT CLEAR REGARDING THE APPROVAL OF VOUCHERS, CAN THE BOARD DESIGNATE ONE OF ITS MEMBERS OR SOME OTHER RESPONSIBLE PERSON TO APPROVE EXPENDITURES, AND IF SO, MUST THE BOARD NAME SOME ONE TO SERVE DURING THE ABSENCE OF THE FIRST NAMED, OR CAN THAT PERSON DESIGNATE A SUBSTITUTE OR DEPUTY?

UNLESS EXPRESSLY EXEMPTED BY STATUTE ALL FEDERAL OFFICERS AND EMPLOYEES ARE SUBJECT TO THE TERMS AND CONDITIONS OF THE SUBSISTENCE EXPENSE ACT OF 1926 AND THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS ISSUED THEREUNDER. THE TERMS OF SECTION 9 (A) OF THE ACT OF JUNE 27, 1934, SUPRA, ARE SUCH AS TO AUTHORIZE REIMBURSEMENT TO MEMBERS OF THE RAILROAD RETIREMENT BOARD FOR NECESSARY TRAVEL EXPENSES, THAT IS, SUBSISTENCE WHILE IN A TRAVEL STATUS AWAY FROM HEADQUARTERS OR OFFICIAL STATION, EITHER ON AN ACTUAL EXPENSE BASIS OR IN THE FORM OF A PER DIEM IN LIEU OF SUBSISTENCE, WHEREAS, THE SUBSISTENCE EXPENSE ACT OF 1926, AS AMENDED BY THE ECONOMY ACT, AND THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS, AS REVISED JANUARY 30, 1934, DO NOT AUTHORIZE REIMBURSEMENT OF SUBSISTENCE ON AN ACTUAL EXPENSE BASIS, BUT ONLY IN THE FORM OF A PER DIEM. REFERRING TO QUESTION NO. 1, YOU ARE ADVISED THAT, WITH THE EXCEPTION THERE MAY BE REIMBURSEMENT ON AN ACTUAL EXPENSE BASIS FOR SUBSISTENCE, MEMBERS OF THE RAILROAD RETIREMENT BOARD ARE SUBJECT TO THE PROVISIONS OF THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS.

REFERRING TO QUESTION NO. 2, THE TERM "EXPENSES" IN SECTION 9 (B) DOES AUTHORIZE THE PAYMENT OF TRAVEL EXPENSES OF EMPLOYEES OF THE BOARD, BUT ONLY IN ACCORDANCE WITH THE PROVISIONS OF THE SUBSISTENCE EXPENSE ACT OF 1926, AS AMENDED BY THE ECONOMY ACT, AND THE STANDARDIZED GOVERNMENT TRAVEL REGULATIONS ISSUED PURSUANT THERETO.

IT IS THE UNIFORM RULE THAT THE APPOINTMENT OR EMPLOYMENT OF FEDERAL PERSONNEL UNDER A NEWLY CREATED AGENCY IS SUBJECT TO THE TERMS AND CONDITIONS OF GENERAL PROVISIONS OF LAW CONTROLLING APPOINTMENTS AND EMPLOYMENTS OF FEDERAL PERSONNEL UNLESS EXPRESSLY EXEMPTED BY STATUTE. NO PROVISION APPEARS IN THE STATUTE CREATING THE RAILROAD RETIREMENT BOARD, OR OTHERWISE, MAKING ANY EXEMPTION WITH RESPECT THERETO, THE APPOINTMENT OR EMPLOYMENT OF ALL EMPLOYEES OF THE RAILROAD RETIREMENT BOARD IS SUBJECT TO THE CIVIL-SERVICE LAWS AND REGULATIONS, THE CLASSIFICATION ACT OF 1923, AS AMENDED, AND THE APPLICABLE PROVISIONS OF THE ECONOMY ACT. BUT IN VIEW OF THE PROVISIONS OF SECTION 9 (B) THE INITIAL APPOINTMENTS MADE BY THE BOARD WILL NOT REQUIRE PRESIDENTIAL APPROVAL UNDER THE TERMS OF SECTION 203 OF THE ECONOMY ACT AS EXTENDED THROUGH THE FISCAL YEAR 1935. QUESTION NO. 3 IS ANSWERED ACCORDINGLY.

THE CIVIL-SERVICE LAWS AND REGULATIONS AND THE CIVIL RETIREMENT ACT DO NOT HAVE THE SAME SCOPE. THERE ARE SEVERAL RETIREMENT ACTS IN FORCE AMONG PERSONNEL SUBJECT TO THE CIVIL-SERVICE LAWS AND REGULATIONS, SUCH AS THE CIVIL RETIREMENT ACT, THE PANAMA CANAL RETIREMENT ACT, THE LIGHTHOUSE SERVICE RETIREMENT ACT, ETC. NO EMPLOYEE IS SUBJECT TO MORE THAN ONE RETIREMENT ACT AT THE SAME TIME. WHILE THE EMPLOYEES OF THE RAILROAD RETIREMENT BOARD ARE SUBJECT TO THE CIVIL-SERVICE LAWS AND REGULATIONS, AS THE ACT OF JUNE 27, 1934, SUPRA, SPECIFICALLY SUBJECTS THEM TO THE RETIREMENT SYSTEM THEREIN ESTABLISHED FOR RAILROAD EMPLOYEES, THEY ARE NOT REQUIRED TO CONTRIBUTE TO THE CIVIL SERVICE DISABILITY AND RETIREMENT FUND UNDER THE TERMS OF THE CIVIL RETIREMENT ACT. QUESTION NO. 4 IS ANSWERED ACCORDINGLY.

SECTIONS 5 AND 8 OF THE ACT OF JUNE 27, 1934, PROVIDE:

CONTRIBUTION

SEC. 5. EACH EMPLOYEE SHALL PAY AN EMPLOYEE CONTRIBUTION IN A PERCENTAGE UPON HIS COMPENSATION. EACH CARRIER SHALL PAY A CARRIER CONTRIBUTION EQUAL TO TWICE THE CONTRIBUTIONS OF EACH EMPLOYEE OF SUCH CARRIER. THE EMPLOYEE COMPENSATION SHALL BE THE COMPENSATION FOR SERVICE PAID TO SUCH EMPLOYEE BY THE CARRIER EXCLUDING COMPENSATION IN EXCESS OF $300 PER MONTH. THE CONTRIBUTION PERCENTAGE SHALL BE DETERMINED BY THE BOARD FROM TIME TO TIME, AND SHALL BE SUCH AS TO PRODUCE FROM THE COMBINED EMPLOYEE AND CARRIER CONTRIBUTIONS, WITH A REASONABLE MARGIN FOR CONTINGENCIES, THE AMOUNT NECESSARY TO PAY THE ANNUITIES, OTHER DISBURSEMENTS AND THE EXPENSES BECOMING PAYABLE FROM TIME TO TIME. UNTIL THE BOARD SHALL DETERMINE ON A DIFFERENT PERCENTAGE THE EMPLOYEE CONTRIBUTION PERCENTAGE SHALL BE 2 PERCENTUM. EMPLOYEE CONTRIBUTIONS SHALL BE DEDUCTED BY THE CARRIER FROM THE COMPENSATION OF ITS EMPLOYEES AND SHALL BE PAID BY THE CARRIER, TOGETHER WITH THE CARRIER CONTRIBUTIONS, INTO THE TREASURY OF THE UNITED STATES QUARTERLY OR AT SUCH OTHER TIMES AS ORDERED BY THE BOARD.

RETIREMENT FUND

SEC. 8. ALL MONEYS PAID INTO THE TREASURY UNDER THE PROVISIONS OF THIS ACT, ALL INTEREST, AND OTHER RECEIPTS, AND ALL REFUNDS OF MONEYS PAID OUT UNDER THIS ACT, SHALL CONSTITUTE AND BE KEPT IN A SEPARATE FUND IN THE TREASURY TO BE KNOWN AS THE "RAILROAD RETIREMENT FUND.' AT THE REQUEST AND DIRECTION OF THE BOARD, THE TREASURER OF THE UNITED STATES, WITH THE APPROVAL OF THE SECRETARY OF THE TREASURY, IS AUTHORIZED TO INVEST SUCH FUNDS AS ARE NOT IMMEDIATELY REQUIRED FOR DISBURSEMENTS IN INTEREST- BEARING BONDS, NOTES, OR OTHER OBLIGATIONS OF THE UNITED STATES, AND TO COLLECT THE PRINCIPAL AND INTEREST OF SUCH SECURITIES AND TO SELL AND DISPOSE OF THE SAME AS IN THE JUDGMENT OF THE BOARD SHALL BE IN THE INTEREST OF SAID FUND. THERE IS HEREBY APPROPRIATED SUCH SUMS NOT IN EXCESS OF THE AMOUNTS IN SAID FUND AS MAY BE NECESSARY TO PAY ALL ANNUITIES, OTHER DISBURSEMENTS AND THE EXPENSES OF ADMINISTRATION OF THIS ACT.

IT IS CLEAR THAT THE STATUTE PROPOSES NO OBLIGATION ON THE FEDERAL GOVERNMENT FOR THE OPERATION OF THIS ACT BUT THAT ALL ADMINISTRATIVE EXPENSES ARE TO BE CHARGED TO THE RAILROAD RETIREMENT FUND. AS THE SALARIES AND EXPENSES OF MEMBERS AND EMPLOYEES OF THE RAILROAD RETIREMENT BOARD CONSTITUTE EXPENSES OF ADMINISTRATION AND CHARGEABLE TO THE RAILROAD RETIREMENT FUND, IT FOLLOWS THAT THE "CARRIER CONTRIBUTION" FOR MEMBERS AND EMPLOYEES OF THE BOARD LIKEWISE CONSTITUTES AN EXPENSE OF ADMINISTRATION AND CHARGEABLE TO THE RAILROAD RETIREMENT FUND. UNDER SECTION 5 THERE SHOULD BE INCLUDED AS AN ELEMENT IN DETERMINING THE CONTRIBUTION PERCENTAGE, UNDER THE HEADING OF ADMINISTRATIVE EXPENSES, THE CARRIER CONTRIBUTION FOR MEMBERS AND EMPLOYEES OF THE RAILROAD RETIREMENT BOARD, AS WELL AS THE COMPENSATION AND EXPENSES OF SUCH MEMBERS AND EMPLOYEES. QUESTION NO. 5 IS ANSWERED ACCORDINGLY.

QUESTIONS NOS. 6 AND 7 ARE ANSWERED IN THE AFFIRMATIVE. AS THE COMPENSATION OF THE EMPLOYEES OF THE BOARD IS SUBJECT TO THE SALARY SCHEDULE IN THE CLASSIFICATION ACT AS AMENDED, AND AS THE SALARY RATES OF THE MEMBERS OF THE BOARD ARE SPECIFICALLY FIXED AT $10,000 PER ANNUM IN THE ACT ITSELF, THERE DOES EXIST A LAW AND SCHEDULE OF RATES ON WHICH TO BASE THE 5 PERCENT REDUCTION. 13 COMP. GEN. 6, 7. THE CITED DECISION OF JUNE 20, 1933, A-49565, 12 COMP. GEN. 655, IS NOT APPLICABLE. THE SOURCE FROM WHICH THE SALARIES OF THE MEMBERS AND EMPLOYEES ARE PAID DOES NOT AFFECT THIS QUESTION, AS THEY ARE OFFICERS OR EMPLOYEES OF THE UNITED STATES WITHIN THE MEANING OF THE ECONOMY ACT AS AMENDED. 12 COMP. GEN. 580, ID. 666.

SECTION 8 OF THE ACT CREATING THE RAILROAD RETIREMENT FUND REQUIRES THAT ALL AMOUNTS SHALL BE PAID INTO THE FEDERAL TREASURY AND MAKES AN APPROPRIATION FOR PAYMENT OF "ALL ANNUITIES, OTHER DISBURSEMENTS AND THE EXPENSES OF THE ADMINISTRATION OF THIS ACT.' ACCORDINGLY, YOUR CONCLUSION IS CORRECT THAT THE FUND AND ALL PAYMENTS THEREFROM ARE SUBJECT TO AUDIT BY THIS OFFICE. SECTION 9 (B) PROVIDES: * * * THE BOARD SHALL RECEIVE AND TAKE SUCH STEPS AND INSTITUTE AND PROSECUTE SUCH PROCEEDINGS AND ACTIONS AS MAY BE NECESSARY TO ENFORCE THE PAYMENTS AND OBLIGATIONS REQUIRED UNDER THE ACT, MAKE AND CERTIFY AWARDS AND PAYMENTS, AND ACCOUNT FOR ALL MONEYS AND FUNDS NECESSARY THERETO. * *

UNDER THIS AUTHORITY, EXPENDITURES SHOULD BE MADE ONLY WHEN APPROVED BY THE BOARD. THE APPROVAL OF THE BOARD MAY BE SHOWN ON THE VOUCHERS BY THE SIGNATURE OF ANY MEMBER OR EMPLOYEE OF THE BOARD DULY DESIGNATED AND AUTHORIZED TO PERFORM SUCH FUNCTION WITH THE WORDS "BY ORDER OF THE BOARD.' THE BOARD SHOULD DESIGNATE WHO MAY APPROVE VOUCHERS, ETC., IN THE ABSENCE OF THE ONE WHO IS DESIGNATED PRIMARILY TO PERFORM SUCH DUTY. QUESTIONS 8 AND 9 ARE ANSWERED ACCORDINGLY.