A-9223, JUNE 19, 1925, 4 COMP. GEN. 1051

A-9223: Jun 19, 1925

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CIVILIAN RETIREMENT DEDUCTIONS - EMPLOYEES OF THE DISTRICT OF COLUMBIA FURNISHED QUARTERS AND SUBSISTENCE THE 2 1/2 PERCENT CIVIL RETIREMENT DEDUCTIONS FROM THE SALARY OF EMPLOYEES OF THE DISTRICT OF COLUMBIA WHO ARE SUBJECT TO CLASSIFICATION ARE REQUIRED TO BE MADE ON THE BASIS OF THE TOTAL RATE OF COMPENSATION FIXED BY THE ADMINISTRATIVE OFFICE IN THE GRADE IN WHICH THE POSITION HAS BEEN ALLOCATED. SUCH 2 1/2 PERCENT DEDUCTIONS ARE CHARGEABLE TO THE APPROPRIATIONS FOR PAYMENT OF SALARIES TO THE EMPLOYEES RATHER THAN THE APPROPRIATIONS FOR FURNISHING QUARTERS AND SUBSISTENCE. 925: IN THE AUDIT OF YOUR ACCOUNTS FOR THE FISCAL YEAR 1925 THERE IS FOR CONSIDERATION WHETHER THE 2 1/2 PERCENT CIVIL RETIREMENT DEDUCTIONS FROM THE SALARY OF EMPLOYEES UNDER THE DISTRICT OF COLUMBIA SUBJECT TO CLASSIFICATION SHOULD BE MADE ON THE BASIS OF THE CASH SALARY PAID TO THE EMPLOYEES WHO ARE ALSO PROVIDED WITH QUARTERS AND SUBSISTENCE IN KIND.

A-9223, JUNE 19, 1925, 4 COMP. GEN. 1051

CIVILIAN RETIREMENT DEDUCTIONS - EMPLOYEES OF THE DISTRICT OF COLUMBIA FURNISHED QUARTERS AND SUBSISTENCE THE 2 1/2 PERCENT CIVIL RETIREMENT DEDUCTIONS FROM THE SALARY OF EMPLOYEES OF THE DISTRICT OF COLUMBIA WHO ARE SUBJECT TO CLASSIFICATION ARE REQUIRED TO BE MADE ON THE BASIS OF THE TOTAL RATE OF COMPENSATION FIXED BY THE ADMINISTRATIVE OFFICE IN THE GRADE IN WHICH THE POSITION HAS BEEN ALLOCATED, INCLUDING CASH SALARY PAID, PLUS THE MONETARY VALUE OF QUARTERS AND SUBSISTENCE, AS DETERMINED BY THE PERSONNEL CLASSIFICATION BOARD UNDER SECTION 3 OF THE CLASSIFICATION ACT OF MARCH 4, 1923, 42 STAT. 1489. SUCH 2 1/2 PERCENT DEDUCTIONS ARE CHARGEABLE TO THE APPROPRIATIONS FOR PAYMENT OF SALARIES TO THE EMPLOYEES RATHER THAN THE APPROPRIATIONS FOR FURNISHING QUARTERS AND SUBSISTENCE.

COMPTROLLER GENERAL MCCARL TO J. R. LUSBY, DISBURSING CLERK, DISTRICT OF COLUMBIA, JUNE 19, 925:

IN THE AUDIT OF YOUR ACCOUNTS FOR THE FISCAL YEAR 1925 THERE IS FOR CONSIDERATION WHETHER THE 2 1/2 PERCENT CIVIL RETIREMENT DEDUCTIONS FROM THE SALARY OF EMPLOYEES UNDER THE DISTRICT OF COLUMBIA SUBJECT TO CLASSIFICATION SHOULD BE MADE ON THE BASIS OF THE CASH SALARY PAID TO THE EMPLOYEES WHO ARE ALSO PROVIDED WITH QUARTERS AND SUBSISTENCE IN KIND, OR WHETHER THE DEDUCTIONS SHOULD BE MADE ON THE BASIS OF THE RATE FIXED FOR THE POSITIONS HELD BY THE EMPLOYEES UNDER THE CLASSIFICATION ACT IN THE GRADE TO WHICH THE POSITIONS HAVE BEEN ALLOCATED, INCLUDING NOT ONLY THE CASH SALARY PAID, BUT ALSO THE MONETARY VALUE OF QUARTERS AND SUBSISTENCE FURNISHED IN KIND FIXED BY THE PERSONNEL CLASSIFICATION BOARD.

AS AN ILLUSTRATION, PARTICULAR REFERENCE IS MADE TO THE PAY ROLLS FOR THE PERIOD FEBRUARY 1 TO 15, 1925, FOR THE GALLINGER MUNICIPAL HOSPITAL, WORKHOUSE AND REFORMATORY, INDUSTRIAL HOME FOR COLORED CHILDREN, AND HOME FOR AGED AND INFIRM. THESE EMPLOYEES ARE SUBJECT TO CLASSIFICATION AND THEIR POSITIONS HAVE BEEN ALLOCATED TO VARIOUS GRADES AND THE SALARIES OF EMPLOYEES FIXED AT THE RATES OF PAY IN THE GRADES. MOST OF THE EMPLOYEES ARE PAID A PORTION OF THE TOTAL RATE FOR THEIR POSITIONS IN CASH, AND THE DIFFERENCE BETWEEN THE AMOUNT OF CASH RECEIVED AND THE RATE FIXED UNDER THE CLASSIFICATION ACT FOR THEIR POSITIONS IS REPRESENTED BY THE COMMUTATION OR MONETARY VALUE OF THE QUARTERS AND SUBSISTENCE FURNISHED THEM IN KIND. THE PAY ROLLS SHOW THE PROPER GRADE TO WHICH ALLOCATED, THE AMOUNT OF THE SALARY PAID IN CASH, AND THE COMMUTATION VALUE OF QUARTERS AND SUBSISTENCE. THIS VALUE IS GIVEN AS $240 PER ANNUM FOR SUBSISTENCE, $180 PER ANNUM FOR HOUSE, AND $60 PER ANNUM FOR QUARTERS (BED IN DORMITORY). THE RETIREMENT DEDUCTIONS HAVE BEEN COMPUTED ONLY ON THE BASIS OF THE ACTUAL CASH PAYMENT MADE TO THE EMPLOYEES, EXCLUDING THE VALUE FIXED FOR SUBSISTENCE AND QUARTERS. IT IS UNDERSTOOD THE SAME RULE HAS BEEN FOLLOWED SINCE JULY 1, 1924, THE EFFECTIVE DATE OF CLASSIFICATION.

SECTION 8 OF THE ACT OF MAY 22, 1920, 41 STAT. 618, PROVIDES THAT THE RETIREMENT DEDUCTION SHALL EQUAL 2 1/2 PERCENT OF THE EMPLOYEE'S "BASIC SALARY, PAY, OR COMPENSATION.' SECTION 2 OF THE ACT, 41 STAT. 615, CONSTRUES THIS TERM BY EXCLUDING 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.' THE RATES FIXED IN THE CLASSIFICATION ACT FOR THE GRADE IN WHICH THE POSITION HAS BEEN ALLOCATED, WHETHER THE MINIMUM OR ONE OF THE HIGHER RATES IN THE GRADE, CONSTITUTE THE "BASE PAY OF THE POSITIONS AS FIXED BY LAW.' SECTION 3 OF THE CLASSIFICATION ACT OF MARCH 4, 1923, 42 STAT. 1489, PROVIDES IN PART "THE BOARD SHALL MAKE NECESSARY ADJUSTMENTS IN COMPENSATION FOR POSITIONS CARRYING MAINTENANCE.' IT HAS BEEN ASCERTAINED THAT THE BOARD HAS TAKEN SUCH ACTION WITH REGARD TO EMPLOYEES UNDER THE DISTRICT OF COLUMBIA AND THAT THE COMMUTATION OR MONETARY VALUE OF SUBSISTENCE, HOUSE AND QUARTERS ABOVE STATED, WAS DETERMINED BY THE PERSONNEL CLASSIFICATION BOARD AFTER AGREEMENT WITH THE DISTRICT AUTHORITIES.

THIS PROVISION IN THE CLASSIFICATION ACT DOES NOT MEAN THAT THE ALLOCATION OF THE POSITION SHALL BE AFFECTED, NECESSITATING PLACING SAME IN A LOWER GRADE WHEN MAINTENANCE IS PROVIDED IN KIND, BUT IT MEANS THAT THE COMMUTATION OR MONETARY VALUE OF MAINTENANCE MUST BE DETERMINED BY THE PERSONNEL CLASSIFICATION BOARD AND THAT AMOUNT OF CASH DEDUCTED FROM THE RATE FIXED BY THE ADMINISTRATIVE OFFICE IN THE GRADE TO WHICH COMPENSATION HAS BEEN ALLOCATED. SUBSTITUTION OF MAINTENANCE IN KIND FOR CASH SALARY DOES NOT CHANGE THE "BASIC SALARY, PAY, OR COMPENSATION" WITHIN THE MEANING OF THE RETIREMENT ACT, WHICH REMAINS THE RATE FIXED BY THE ADMINISTRATIVE OFFICE IN THE GRADE TO WHICH THE POSITION HAS BEEN ALLOCATED. SEE GENERALLY, 3 COMP. GEN. 654.

THERE WILL BE TRANSFERRED FROM THE APPROPRIATIONS FOR SALARIES FOR THE VARIOUS SERVICES INVOLVED FOR THE FISCAL YEAR 1925, TO THE CIVIL RETIREMENT FUND, AN ADDITIONAL AMOUNT EQUAL TO 2 1/2 PERCENT OF THE AGGREGATE SUMS REPRESENTED BY THE DIFFERENCE BETWEEN THE CASH SALARIES PAID THE EMPLOYEES AND THE RATES OF COMPENSATION FIXED BY THE ADMINISTRATIVE OFFICES IN THE GRADES TO WHICH THE POSITIONS HAVE BEEN ALLOCATED, AND CORRESPONDING DEDUCTIONS WILL BE MADE FROM THE SALARIES OF THE EMPLOYEES ON THE NEXT PAY DAY SUBSEQUENT TO THE DATE OF THIS DECISION. THE EMPLOYEES WILL NOT BE REQUIRED TO PAY INTEREST ON THE AMOUNT TO BE SO DEDUCTED. 2 COMP. GEN. 506. TRANSFER FROM SALARY APPROPRIATIONS TO THE CIVIL RETIREMENT FUND AT THE BEGINNING OF THE FISCAL YEAR 1926, WILL BE MADE ACCORDINGLY. 26 COMP. DEC. 948. IT WILL BE NOTED THAT ALTHOUGH THE COST OF FURNISHING QUARTERS AND SUBSISTENCE IN KIND IS CHARGEABLE TO A DIFFERENT APPROPRIATION THAN THE CASH SALARY OF THE EMPLOYEES, THERE IS TO BE NO DEDUCTION OR TRANSFER TO THE RETIREMENT FUND FROM THE APPROPRIATIONS PROVIDED FOR QUARTERS AND SUBSISTENCE, BUT THE FULL AMOUNT OF THE RETIREMENT DEDUCTIONS IS TO BE TRANSFERRED FROM THE APPROPRIATIONS FOR SALARIES. THE REASON FOR THIS IS THAT THE ENTIRE AMOUNT OF RETIREMENT DEDUCTIONS IS TO BE TRANSFERRED FROM THE APPROPRIATIONS IS EQUIVALENT TO CASH RECEIVED BY THE EMPLOYEES AND THE TOTAL AMOUNT THEREOF IS NECESSARY TO BE TRANSFERRED FROM THE SALARY APPROPRIATIONS WHICH ARE THE ONLY APPROPRIATIONS FROM WHICH CASH IS PAID TO THE EMPLOYEES.