A-93396, JUNE 7, 1938, 17 COMP. GEN. 1055

A-93396: Jun 7, 1938

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IS NOT DUAL SERVICE WITHIN THE MEANING OF THE ACT OF MAY 10. IS AS FOLLOWS: THE COMMISSION IS IN RECEIPT OF AN APPLICATION FOR REFUND OF RETIREMENT DEDUCTIONS FILED BY GILBERT T. GUSTAFSON ON WHICH THE TOTAL AMOUNT DUE IS $176.90. IN WHICH POSITION HE IS STILL EMPLOYED. WHILE EMPLOYEES OF THE GENERAL AGENTS IN THE LAND BANK DISTRICTS ARE NOT REGARDED AS GOVERNMENT EMPLOYEES FOR RETIREMENT PURPOSES. IT IS POSSIBLE THAT ANY DUAL SALARY PAID FROM MAY 14 TO 21. A DECISION IS REQUESTED REGARDING THE LEGALITY OF THE DUAL SERVICE AND INSTRUCTIONS FOR A TRANSFER OF FUNDS IN THE EVENT THAT AN OVERPAYMENT OF SALARY HAS BEEN MADE. THERE ARE A FEDERAL LAND BANK. THE COST OF THE SERVICES RENDERED BY EACH GENERAL AGENT WAS APPORTIONED TO THE INSTITUTIONS SERVED PRO RATA ACCORDING TO THE BENEFITS DETERMINED TO HAVE BEEN DERIVED THEREFROM BY EACH INSTITUTION.

A-93396, JUNE 7, 1938, 17 COMP. GEN. 1055

COMPENSATION - DOUBLE - AGRICULTURE DEPARTMENT AND OFFICE OF GENERAL AGENT OF FEDERAL LAND BANK DISTRICT THE EMPLOYMENT OF AN AGRICULTURE DEPARTMENT EMPLOYEE FOR A SHORT TIME PRIOR TO HIS SEPARATION FROM THE SERVICE, IN THE OFFICE OF THE GENERAL AGENT OF A FEDERAL LAND BANK DISTRICT, WITH SALARY PAID FROM EARNINGS OF THE FEDERAL LAND BANK AND OTHER INSTITUTIONS IN THE DISTRICT UNDER THE SUPERVISION OF THE FARM CREDIT ADMINISTRATION, AND NOT FROM APPROPRIATED FUNDS, IS NOT DUAL SERVICE WITHIN THE MEANING OF THE ACT OF MAY 10, 1916, AS AMENDED BY THE ACT OF AUGUST 29, 1916, 39 STAT. 582.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE PRESIDENT, UNITED STATES CIVIL SERVICE COMMISSION, JUNE 7, 1938:

YOUR LETTER OF NOVEMBER 17, 1937 (FILE SRR:ELT:HO CSR-413849), IS AS FOLLOWS:

THE COMMISSION IS IN RECEIPT OF AN APPLICATION FOR REFUND OF RETIREMENT DEDUCTIONS FILED BY GILBERT T. GUSTAFSON ON WHICH THE TOTAL AMOUNT DUE IS $176.90.

ACCORDING TO THE RECORDS OF THIS OFFICE, MR. GUSTAFSON RECEIVED A PROBATIONAL APPOINTMENT AS JUNIOR ECONOMIST IN THE BUREAU OF AGRICULTURAL ECONOMICS, DEPARTMENT OF AGRICULTURE, MADISON, WISCONSIN, ON JANUARY 1, 1931, AT A SALARY OF $2,000 PER ANNUM (C-$300, F-$1,700) SERVING THEREUNDER UNTIL HIS RESIGNATION ON MAY 21, 1934. PRIOR TO HIS SEPARATION MR. GUSTAFSON ACCEPTED AN APPOINTMENT ON MAY 14, 1934, AS STATISTICIAN IN THE OFFICE OF THE GENERAL AGENT, FARM CREDIT ADMINISTRATION, ST. PAUL, MINNESOTA, AT A PER ANNUM SALARY OF $3,600, IN WHICH POSITION HE IS STILL EMPLOYED.

WHILE EMPLOYEES OF THE GENERAL AGENTS IN THE LAND BANK DISTRICTS ARE NOT REGARDED AS GOVERNMENT EMPLOYEES FOR RETIREMENT PURPOSES, IT IS POSSIBLE THAT ANY DUAL SALARY PAID FROM MAY 14 TO 21, 1934, MAY BE CONSIDERED AS HAVING BEEN PAID CONTRARY TO THE PROVISIONS OF THE ACT OF MAY 10, 1916, AS AMENDED (39 STAT. 120, 582).

A DECISION IS REQUESTED REGARDING THE LEGALITY OF THE DUAL SERVICE AND INSTRUCTIONS FOR A TRANSFER OF FUNDS IN THE EVENT THAT AN OVERPAYMENT OF SALARY HAS BEEN MADE.

IN RESPONSE TO AN INQUIRY FROM THIS OFFICE, THE FARM CREDIT ADMINISTRATION, BY LETTER OF MAY 27, 1938, ADVISED AS FOLLOWS:

IN EACH OF THE TWELVE FARM CREDIT DISTRICTS (KNOWN AS FEDERAL LAND BANK DISTRICTS PRIOR TO THE ENACTMENT OF SEC. 5 (A) OF THE FARM CREDIT ACT OF 1937, APPROVED ON AUGUST 19, 1937--- PUBLIC NO. 323), THERE ARE A FEDERAL LAND BANK, A FEDERAL INTERMEDIATE CREDIT BANK, A PRODUCTION CREDIT CORPORATION, AND A BANK FOR COOPERATIVES OPERATING UNDER THE SUPERVISION OF THE FARM CREDIT ADMINISTRATION. THE BOARD OF DIRECTORS OF EACH FEDERAL LAND BANK HAS THE POWER TO APPOINT NECESSARY OFFICERS AND EMPLOYEES AND TO FIX THEIR COMPENSATION, THE AMOUNT OF SAID COMPENSATION BEING SUBJECT TO THE APPROVAL OF THE FARM CREDIT ADMINISTRATION (U.S.C., TITLE 12, SEC. 676, PAR. 5TH, SEC. 683). THE BOARD OF DIRECTORS OF EACH FEDERAL INTERMEDIATE CREDIT BANK, PRODUCTION CREDIT CORPORATION, AND BANK FOR COOPERATIVES HAS THE POWER, SUBJECT TO THE APPROVAL OF THE GOVERNOR OF THE FARM CREDIT ADMINISTRATION, TO EMPLOY AND FIX THE COMPENSATION OF NECESSARY OFFICERS AND EMPLOYEES (U.S.C., TITLE 12, SEC. 1022, 1131, 1134).

PRIOR TO THE ENACTMENT OF THE FARM CREDIT ACT OF 1937 THE BOARDS OF DIRECTORS OF THESE FOUR INSTITUTIONS IN EACH FARM CREDIT DISTRICT APPOINTED A GENERAL AGENT TO SERVE THEM JOINTLY IN THE ATTAINMENT OF AN ECONOMIC AND EFFICIENT COORDINATION OF THEIR ACTIVITIES AND, WITH THEIR APPROVAL, TO APPOINT THE NECESSARY PERSONNEL FOR THE PERFORMANCE OF THIS WORK, INCLUDING THE SUPERVISION AND DIRECTION OF THE LEGAL, ACCOUNTING, PUBLIC RELATIONS, STATISTICAL, AND FIELD ACTIVITIES OF THE PRINCIPAL INSTITUTIONS. THE COST OF THE SERVICES RENDERED BY EACH GENERAL AGENT WAS APPORTIONED TO THE INSTITUTIONS SERVED PRO RATA ACCORDING TO THE BENEFITS DETERMINED TO HAVE BEEN DERIVED THEREFROM BY EACH INSTITUTION.

THE APPOINTMENT OF GILBERT T. GUSTAFSON TO THE POSITION OF ASSISTANT STATISTICIAN EFFECTIVE MAY 14, 1934, WAS MADE BY THE ACTION OF THE FEDERAL LAND BANK, FEDERAL INTERMEDIATE CREDIT BANK, PRODUCTION CREDIT CORPORATION, AND BANK FOR COOPERATIVES OF THE SEVENTH FARM CREDIT DISTRICT IN THE EXERCISE OF THE POWERS CONFERRED UPON EACH INSTITUTION, AS SET FORTH ABOVE, AND UNDER WHICH HE BECAME THE JOINT EMPLOYEE OF EACH OF THE FOUR INSTITUTIONS. HIS SALARY WAS PAID FROM THE EARNINGS OF THE FOUR INSTITUTIONS PRO RATA ACCORDING TO THE ESTIMATED BENEFITS DERIVED FROM HIS SERVICES BY EACH.

IN DECISION OF JULY 17, 1936, A-74111, IT WAS HELD:

AS SALARIES OF EMPLOYEES OF FEDERAL LAND BANKS ARE NOT PAID FROM APPROPRIATED FUNDS BUT ARE PAID BY THE BANKS FROM THEIR EARNINGS, THE RECEIPT BY MR. GATTON AT THE TIME OF HIS SEPARATION FROM THE SERVICE OF THE FEDERAL LAND BANK AT LOUISVILLE, KENTUCKY, OF AN AMOUNT EQUAL TO COMPENSATION FOR ABOUT TWO WEEKS AFTER HE WAS TAKEN UP ON THE ROLLS OF THE WAR DEPARTMENT WAS NOT IN CONTRAVENTION OF THE ABOVE QUOTED PROVISION OF THE ACT OF MAY 10, 1916, 39 STAT. 120, AS AMENDED BY THE ACT OF AUGUST 29, 1916, 39 STAT. 582. ACCORDINGLY, NO FURTHER ACTION WILL BE TAKEN BY THIS OFFICE IN THE MATTER.

THE SAME RULE IS APPLICABLE HERE, THAT IS, AS THE COMPENSATION OF GILBERT T. GUSTAFSON AS AN EMPLOYEE IN THE OFFICE OF THE GENERAL AGENT, FARM CREDIT ADMINISTRATION, DURING THE PERIOD IN QUESTION WAS NOT PAID FROM APPROPRIATED FUNDS, THE DUAL COMPENSATION STATUTE IS NOT APPLICABLE.