A-81112, DECEMBER 1, 1936, 16 COMP. GEN. 543

A-81112: Dec 1, 1936

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A SUPPLEMENTAL ADJUSTED SERVICE CERTIFICATE IS ISSUED FOR AN ADDITIONAL AMOUNT SUBSEQUENT TO THE APPLICATION OF THE VETERAN FOR AND PAYMENT TO HIM OF THE AMOUNT DUE ON THE ORIGINAL CERTIFICATE UNDER THE TERMS OF THE ADJUSTED COMPENSATION PAYMENT ACT OF JANUARY 27. THE PROCEEDS OF THE SUPPLEMENTAL CERTIFICATE ARE FOR PAYMENT TO THE BENEFICIARY ORIGINALLY DESIGNATED UNDER THE WORLD WAR ADJUSTED COMPENSATION ACT AND NOT TO THE ESTATE OF THE VETERAN. ADJUSTED SERVICE CERTIFICATE NO. 391773 WAS ISSUED TO THE VETERAN. THIS CERTIFICATE WAS PLEDGED AS COLLATERAL SECURITY FOR A LOAN IN THE AMOUNT OF $135.00 WITH THE OFFICE OF THIS ADMINISTRATION OF PHILADELPHIA. CERTIFICATION FOR SETTLEMENT WAS MADE BY THE OFFICE AT PHILADELPHIA.

A-81112, DECEMBER 1, 1936, 16 COMP. GEN. 543

VETERANS' ADMINISTRATION - ADJUSTED COMPENSATION PAYMENTS - SUPPLEMENTAL CERTIFICATE ISSUED AFTER CASHING OF ORIGINAL CERTIFICATE AND DEATH OF VETERAN WHERE, BECAUSE OF ADMINISTRATIVE ERROR IN CERTIFICATION OF ADJUSTED SERVICE CREDIT DUE A VETERAN, A SUPPLEMENTAL ADJUSTED SERVICE CERTIFICATE IS ISSUED FOR AN ADDITIONAL AMOUNT SUBSEQUENT TO THE APPLICATION OF THE VETERAN FOR AND PAYMENT TO HIM OF THE AMOUNT DUE ON THE ORIGINAL CERTIFICATE UNDER THE TERMS OF THE ADJUSTED COMPENSATION PAYMENT ACT OF JANUARY 27, 1936, 49 STAT. 1099, AND SUBSEQUENT TO THE VETERAN'S DEATH, THE PROCEEDS OF THE SUPPLEMENTAL CERTIFICATE ARE FOR PAYMENT TO THE BENEFICIARY ORIGINALLY DESIGNATED UNDER THE WORLD WAR ADJUSTED COMPENSATION ACT AND NOT TO THE ESTATE OF THE VETERAN.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE ADMINISTRATOR OF VETERANS' AFFAIRS, DECEMBER 1, 1936:

THERE HAS BEEN CONSIDERED THE QUESTION PRESENTED IN YOUR LETTER OF OCTOBER 16, 1936, AS OLLOWS:

PURSUANT TO APPLICATION FILED BY JACK GOLDBERG, A-1201896, FOR ADJUSTED COMPENSATION BENEFITS AND CERTIFICATION OF ADJUSTED SERVICE CREDIT IN THE AMOUNT OF $108.00 TO THE VETERANS' ADMINISTRATION, ADJUSTED SERVICE CERTIFICATE NO. 391773 WAS ISSUED TO THE VETERAN, EFFECTIVE JANUARY 1, 1925, IN THE AMOUNT OF $270.00. THE VETERAN NAMED HIS MOTHER, MRS. IDA GOLDBERG, AS BENEFICIARY. THIS CERTIFICATE WAS PLEDGED AS COLLATERAL SECURITY FOR A LOAN IN THE AMOUNT OF $135.00 WITH THE OFFICE OF THIS ADMINISTRATION OF PHILADELPHIA, PENNSYLVANIA, ON JULY 17, 1931.

THE VETERAN COMPLETED APPLICATION (FORM 1701) ON FEBRUARY 4, 1936, FOR SETTLEMENT OF HIS ADJUSTED SERVICE CERTIFICATE UNDER THE ADJUSTED COMPENSATION PAYMENT ACT, 1936, AND CERTIFICATION FOR SETTLEMENT WAS MADE BY THE OFFICE AT PHILADELPHIA, PENNSYLVANIA, ON JUNE 15, 1936, THE BONDS AND CHECK AGGREGATING $133.77 AFTER DEDUCTING THE LOAN WITH INTEREST THEREON UP TO AND INCLUDING SEPTEMBER 30, 1931.

THE ADJUTANT GENERAL MADE A RECERTIFICATION OF ADJUSTED SERVICE CREDIT TO THE VETERANS' ADMINISTRATION ON JULY 3, 1936, WHICH ENTITLED THE VETERAN TO AN ADJUSTED SERVICE CREDIT OF $148.00 INSTEAD OF $108.00, AS ORIGINALLY CERTIFIED. BASED ON THE INCREASED CREDIT, A SUPPLEMENTAL ADJUSTED SERVICE CERTIFICATE NO. 3974260 WAS ISSUED ON SEPTEMBER 21, 1936, IN THE AMOUNT OF $101.00. THE VETERAN DIED ON AUGUST 6, 1936, AT THE UNITED STATES NAVAL HOSPITAL AT PHILADELPHIA, PENNSYLVANIA. THE VETERAN WAS NOT INFORMED OF THE INCREASE IN HIS ADJUSTED SERVICE CREDIT PRIOR TO HIS DEATH AND, NATURALLY, THERE IS NO RECORD OF AN APPLICATION (FORM 1701) HAVING BEEN SUBMITTED BY HIM FOR SETTLEMENT OF THE SUPPLEMENTAL ADJUSTED SERVICE CERTIFICATE. SECTION 3 (B) OF THE ADJUSTED COMPENSATION PAYMENT ACT, 1936, PUBLIC, NO. 425, 74TH CONGRESS, READS IN PART:

"IF THE VETERAN DIES AFTER THE APPLICATION IS MADE AND BEFORE IT IS FILED IT MAY BE FILED BY ANY PERSON. IF THE VETERAN DIES AFTER THE APPLICATION IS MADE, IT SHALL BE VALID IF THE ADMINISTRATOR OF VETERANS' AFFAIRS FINDS THAT IT BEARS THE BONAFIDE SIGNATURE OF THE APPLICANT, DISCLOSES AN INTENTION TO CLAIM THE BENEFITS OF THIS ACT, AND IS FILED BEFORE PAYMENT IS MADE TO THE BENEFICIARY. IF THE DEATH OCCURS AFTER THE APPLICATION IS FILED BUT BEFORE THE RECEIPT OF THE PAYMENT UNDER THIS ACT, OR IF THE APPLICATION IS FILED AFTER THE DEATH OCCURS BUT BEFORE MAILING OF THE CHECK IN PAYMENT TO THE BENEFICIARY UNDER SECTION 501 OF THE WORLD WAR ADJUSTED COMPENSATION ACT, AS AMENDED, PAYMENT UNDER THIS ACT SHALL BE MADE TO THE ESTATE OF THE VETERAN IRRESPECTIVE OF ANY BENEFICIARY DESIGNATION.'

IN YOUR DECISION DATED JULY 28, 1936, A-77280, IT WAS STATED:

"IT WOULD APPEAR AND IT MUST BE SO UNDERSTOOD THAT THE SUPPLEMENTAL PAYMENTS PROPOSED TO BE MADE ON ADJUSTED SERVICE CERTIFICATES SHALL BE MADE "UPON APPLICATION THEREFOR TO THE ADMINISTRATOR OF VETERANS' AFFAIRS * * * AND UPON SURRENDER OF THE CERTIFICATES AND ALL RIGHTS THEREUNDER," AS PROVIDED IN SECTION 1 OF THE ADJUSTED COMPENSATION PAYMENT ACT, 1936, 49 STAT. 1099; AND THAT SAID SUPPLEMENTAL PAYMENTS CERTIFIED TO THE SECRETARY OF THE TREASURY PURSUANT TO SECTION 1 OF SAID ACT SHALL BE PAID TO THE VETERAN OR HIS ESTATE STRICTLY IN THE MANNER SPECIFICALLY PROVIDED IN SECTION 4 OF SAID ACT, SUPRA. IN OTHER WORDS, FOR EACH SUPPLEMENTAL PAYMENT IN EXCESS OF THE PAID CERTIFICATE THERE WILL BE A NEW VOLUNTARY DEMAND (APPLICATION) AND THE VOUCHERED ITEM WILL BE SUPPORTED BY AN ADJUSTED SERVICE CERTIFICATE IN THE AMOUNT DUE, FOR WHICH THE TOTAL CASH PAID BY CHECK TO THE VETERAN ON ACCOUNT OF HIS CERTIFICATES WILL NOT EXCEED $50.00 AS LIMITED IN SECTION 4, SUPRA.'

WHILE IT IS CLEAR FROM THE LANGUAGE OF THE ACT THAT THE VETERAN IS FILING APPLICATION (FORM 1701) FOR SETTLEMENT OF HIS ADJUSTED SERVICE CERTIFICATE DIVESTED HIS MOTHER AS BENEFICIARY OF ANY RIGHTS IN THE PROCEEDS OF THAT PARTICULAR ADJUSTED SERVICE CERTIFICATE, THERE HAS BEEN NO LEGAL EXPRESSION RELATIVE TO THE RIGHTS OF THE BENEFICIARY AND HEIRS OF THE VETERAN UNDER CIRCUMSTANCES WHICH OBTAIN IN THIS PARTICULAR CASE. THE MATTER IS REFERRED FOR YOUR CONSIDERATION AND DECISION AS TO WHETHER SETTLEMENT OF THE SUPPLEMENTAL ADJUSTED SERVICE CERTIFICATE IN THE AMOUNT OF $101.00 SHOULD BE MADE WITH THE DESIGNATED BENEFICIARY OR TO THE ESTATE OF THE VETERAN UPON RECEIPT OF PROPER APPLICATION.

IN YOUR DECISION DATED JULY 28, 1936, A-77280, IT WAS HELD THAT "IT WOULD APPEAR AND IT MUST BE SO UNDERSTOOD THAT THE SUPPLEMENTAL PAYMENTS PROPOSED TO BE MADE ON ADJUSTED SERVICE CERTIFICATES SHALL BE MADE "UPON APPLICATION THEREFOR TO THE ADMINISTRATOR OF VETERANS' AFFAIRS * * * AND UPON SURRENDER OF THE CERTIFICATES AND ALL RIGHTS THEREUNDER," AS PROVIDED IN SECTION 1 OF THE ADJUSTED COMPENSATION PAYMENT ACT, 1936, 49 STAT. 1099

THERE IS ALSO FOR CONSIDERATION THE QUESTION AS TO WHETHER OR NOT, IN VIEW OF THE FACT THAT THE VETERAN IS DEAD AND NO APPLICATION CAN BE MADE FOR SETTLEMENT OF THE SUPPLEMENTAL ADJUSTED SERVICE CERTIFICATE AS PROVIDED IN SECTION 1 OF THE ADJUSTED COMPENSATION PAYMENT ACT, 1936, SETTLEMENT MAY BE MADE ON THE BASIS OF THE APPLICATION (FORM 1701) FILED BY THE VETERAN FOR SETTLEMENT OF THE ADJUSTED SERVICE CERTIFICATE ORIGINALLY ISSUED TO HIM.

PAYMENT UNDER THE ADJUSTED COMPENSATION PAYMENT ACT OF JANUARY 27, 1936, 49 STAT. 1099, IS AUTHORIZED TO BE BASED ONLY ON AN ADJUSTED SERVICE CERTIFICATE. SEE SECTION 1. AN APPLICATION FOR THE BENEFITS OF THE ACT BASED ON A CERTIFICATE IS REQUIRED TO BE FILED BY OR ON BEHALF OF THE VETERAN. SEE SECTION 3 (A). IN THIS CASE, TWO CERTIFICATES ISSUED IN FAVOR OF THE VETERAN, THE ORIGINAL AND A SUPPLEMENTAL. THE VETERAN FILED APPLICATION FOR THE BENEFITS OF THE ACT ON THE BASIS OF HIS ORIGINAL CERTIFICATE AND IT IS UNDERSTOOD THAT PAYMENT THEREON WAS MADE TO HIM, BUT HE DIED BEFORE THE SUPPLEMENTAL CERTIFICATE WAS ISSUED AND, THEREFORE, DID NOT AND COULD NOT FILE APPLICATION FOR PAYMENT OF THE SUPPLEMENTAL CERTIFICATE.

THE THIRD SENTENCE OF SECTION 3 (B) OF THE ACT PROVIDES AS FOLLOWS:

* * * IF THE VETERAN DIES WITHOUT MAKING A VALID APPLICATION UNDER THIS ACT, NO PAYMENT UNDER THIS ACT SHALL BE MADE. * * *

THEREFORE, PAYMENT ON THE BASIS OF THE SUPPLEMENTAL CERTIFICATE MAY NOT BE MADE UNDER THE TERMS OF THE ADJUSTED COMPENSATION PAYMENT ACT BUT ONLY UNDER THE PROVISIONS OF THE WORLD WAR ADJUSTED COMPENSATION ACT, AS AMENDED, THE SAME AS THOUGH THE ADJUSTED COMPENSATION PAYMENT ACT HAD NOT BEEN ENACTED. SEE THE LAST SENTENCE OF SECTION 3 (B) OF THE LATER ACT.

SECTION 302 (A) OF THE WORLD WAR ADJUSTED COMPENSATION ACT OF MAY 19, 1924, 43 STAT. 123, PROVIDES FOR AN APPLICATION BY THE VETERAN "CLAIMING THE BENEFITS OF THIS ACT.' IN THE INSTANT CASE THE VETERAN FILED AN APPLICATION CLAIMING THE BENEFITS OF THE ACT AND SAID BENEFITS CONSISTED OF AN ADJUSTED SERVICE CERTIFICATE ISSUED ON THE BASIS OF THE FULL AMOUNT OF HIS ADJUSTED SERVICE CREDIT PROPERLY COMPUTED UNDER THE TERMS OF THE ACT. HENCE, THE ORIGINAL CERTIFICATE ISSUED IN THIS CASE DID COVER ALL THE BENEFITS THE VETERAN HAD CLAIMED. SECTION 501 OF THE ACT AUTHORIZED THE VETERAN TO DESIGNATE A BENEFICIARY OF HIS ADJUSTED SERVICE CERTIFICATE; THAT IS, FOR THE ENTIRE AMOUNT BASED ON HIS ADJUSTED SERVICE CREDIT PROPERLY COMPUTED. WHILE APPLICATION OF THE VETERAN UNDER THE ADJUSTED COMPENSATION PAYMENT ACT OF PAYMENT OF HIS ORIGINAL CERTIFICATE, REPRESENTING ONLY PART OF HIS BENEFITS UNDER THE WORLD WAR ADJUSTED COMPENSATION ACT, DIVESTED THE DESIGNATED BENEFICIARY OF ALL RIGHTS UNDER THAT CERTIFICATE, SINCE THE ORIGINAL DESIGNATION OF A BENEFICIARY WAS FOR THE FULL AMOUNT DUE THE VETERAN PROPERLY COMPUTED--- BUT WHICH THE VETERAN DID NOT RECEIVE DUE TO ADMINISTRATIVE ERROR--- AND SINCE THE FILING OF AN APPLICATION FOR PAYMENT OF THE AMOUNT OF THE ORIGINAL CERTIFICATE DID NOT DIVEST THE BENEFICIARY OF HER RIGHTS AS TO THE REMAINDER OF THE BENEFITS PROPERLY DUE UNDER THE WORLD WAR ADJUSTMENT COMPENSATION ACT, AS AMENDED, PAYMENT UNDER THE SUPPLEMENTAL ADJUSTMENT SERVICE CERTIFICATE SHOULD BE MADE TO THE DESIGNATED BENEFICIARY, RATHER THAN TO THE ESTATE OF THE VETERAN.