B-106420, DECEMBER 3, 1951, 31 COMP. GEN. 199

B-106420: Dec 3, 1951

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AN EMPLOYEE WHO RECEIVED A LUMP-SUM PAYMENT FOR ACCRUED ANNUAL LEAVE UPON RESIGNATION AFTER THE EFFECTIVE DATE OF THE ACT AND WHO WAS REEMPLOYED AND IN THE SERVICE OF THE UNITED STATES ON THE ENACTMENT DATE OF THE ACT IS ENTITLED TO RECEIVE A RETROACTIVE ADJUSTMENT IN COMPENSATION FOR THE PERIOD OF ACTIVE DUTY PRIOR TO THE BREAK IN SERVICE AND ALSO TO AN ADJUSTMENT IN THE LUMP-SUM PAYMENT FOR ACCRUED LEAVE. 1951: REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 5. IT IS STATED THAT THE EMPLOYEE WAS IN AN ACTIVE-DUTY STATUS FROM JULY 8. ON WHICH DATE SHE WAS PAID A LUMP SUM FOR 88 HOURS ACCRUED ANNUAL LEAVE. SHE WAS REEMPLOYED ON SEPTEMBER 21. WAS IN THE ACTIVE SERVICE ON OCTOBER 24. DOUBT AS TO THE LEGALITY OF THE PROPOSED PAYMENT IS REFLECTED BY THE QUESTIONS STATED IN YOUR LETTER.

B-106420, DECEMBER 3, 1951, 31 COMP. GEN. 199

COMPENSATION - RETROACTIVE SALARY INCREASES - RECONSTRUCTION OF EMPLOYEES' PAY ACCOUNTS UNDER THE RETROACTIVE COMPENSATION PROVISION OF THE INCREASED COMPENSATION AMENDMENT TO THE CLASSIFICATION ACT OF 1949, AN EMPLOYEE WHO RECEIVED A LUMP-SUM PAYMENT FOR ACCRUED ANNUAL LEAVE UPON RESIGNATION AFTER THE EFFECTIVE DATE OF THE ACT AND WHO WAS REEMPLOYED AND IN THE SERVICE OF THE UNITED STATES ON THE ENACTMENT DATE OF THE ACT IS ENTITLED TO RECEIVE A RETROACTIVE ADJUSTMENT IN COMPENSATION FOR THE PERIOD OF ACTIVE DUTY PRIOR TO THE BREAK IN SERVICE AND ALSO TO AN ADJUSTMENT IN THE LUMP-SUM PAYMENT FOR ACCRUED LEAVE.

COMPTROLLER GENERAL WARREN TO ESTHER M. MAHONEY, DEPARTMENT OF THE INTERIOR, DECEMBER 3, 1951:

REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 5, 1951, FORWARDING A SUPPLEMENTAL PAY ROLL VOUCHER IN FAVOR OF VIRGILEE L. VAUGHN, AN EMPLOYEE OF THE PETROLEUM ADMINISTRATION FOR DEFENSE, PROPOSING PAYMENT OF ADDITIONAL SALARY AND LUMP-SUM ANNUAL LEAVE PAYMENTS UNDER THE PROVISIONS OF PUBLIC LAW 201, APPROVED OCTOBER 24, 1951, 65 STAT. 612, AND REQUESTING A DECISION WHETHER UNDER THE FACTS AND CIRCUMSTANCES HEREINAFTER RECITED THE SAID VOUCHER LEGALLY MAY BE CERTIFIED FOR PAYMENT.

IT IS STATED THAT THE EMPLOYEE WAS IN AN ACTIVE-DUTY STATUS FROM JULY 8, 1951, THE EFFECTIVE DATE OF PUBLIC LAW 201, UNTIL HER SEPARATION FROM THE SERVICE BY RESIGNATION ON JULY 20, 1951, ON WHICH DATE SHE WAS PAID A LUMP SUM FOR 88 HOURS ACCRUED ANNUAL LEAVE. SHE WAS REEMPLOYED ON SEPTEMBER 21, 1951, AND WAS IN THE ACTIVE SERVICE ON OCTOBER 24, 1951, THE ENACTMENT DATE OF THE SAID PUBLIC LAW 201.

DOUBT AS TO THE LEGALITY OF THE PROPOSED PAYMENT IS REFLECTED BY THE QUESTIONS STATED IN YOUR LETTER, AS FOLLOWS:

1. IS THE EMPLOYEE ENTITLED TO RETROACTIVE PAY FOR THE PERIOD OF EMPLOYMENT PRIOR TO THE BREAK IN SERVICE?

2. IF QUESTION (1) IS ANSWERED IN THE AFFIRMATIVE:

(A) SHOULD RETROACTIVE ADJUSTMENT BE MADE ONLY FOR THE PERIOD OF ACTIVE DUTY; I.E. JULY 6, 1951 THROUGH JULY 20, 1951?

(B) SHOULD RETROACTIVE ADJUSTMENT BE MADE FOR THE ENTIRE TERMINAL LEAVE PERIOD; OR

(C) SHOULD RETROACTIVE ADJUSTMENT DURING THE TERMINAL LEAVE PERIOD BE LIMITED TO THAT PORTION OF THE TERMINAL LEAVE WHICH ACCRUED BETWEEN JULY 8 AND JULY 29?

UNDER THE PROVISIONS OF SECTION 6 (B) OF PUBLIC LAW 201, 65 STAT. 615, EMPLOYEES WHO ARE IN THE SERVICE OF THE UNITED STATES ON OCTOBER 24, 1951, ARE ENTITLED TO HAVE THEIR PAY ACCOUNTS RECONSTRUCTED FROM THE EFFECTIVE DATE OF THE SAID ACT AND TO BE PAID THE DIFFERENCE BETWEEN THE COMPENSATION THEY RECEIVED FOR SERVICES RENDERED DURING THE RETROACTIVE PERIOD AND THE AMOUNTS WHICH WOULD HAVE BEEN PAID TO THEM HAD THE SAID LAW BEEN ENACTED ON THE DATE IT WAS MADE EFFECTIVE. ACCORDINGLY, IN ANSWER TO QUESTION (1) THE EMPLOYEE MAY BE PAID THE RETROACTIVE SALARY INCREASE FOR THE PERIODS JULY 8 TO JULY 20, 1951, AND SEPTEMBER 21 TO OCTOBER 24, 1951. SEE QUESTION AND ANSWER 3 IN OFFICE DECISION OF NOVEMBER 6, 1951, B -106337, 31 COMP. GEN. 166.

LUMP-SUM PAYMENTS FOR ACCRUED ANNUAL LEAVE, AS AUTHORIZED BY THE ACT OF DECEMBER 21, 1944, 58 STAT. 845, ARE REQUIRED TO BE MADE AT THE TIME OF SEPARATION IN ACCORDANCE WITH APPLICABLE LAWS AND REGULATIONS EXISTING AT THAT TIME WHICH WOULD HAVE AFFECTED THE EMPLOYEE'S COMPENSATION HAD HE REMAINED IN THE SERVICE FOR THE PERIOD COVERED BY HIS LEAVE. HOWEVER, IN MAKING THE PROVISIONS OF PUBLIC LAW 201 RETROACTIVELY EFFECTIVE AS TO EMPLOYEES WHO WERE IN THE SERVICE ON OCTOBER 24, 1951 (SEE B-106337 OF NOVEMBER 6, 1951, 31 COMP. GEN. 166), IT APPEARS THAT THE CONGRESS CONSTRUCTIVELY PLACED THE SAID STATUTE IN EXISTENCE DURING THE ENTIRE PERIOD OF ITS RETROACTIVITY AND CLEARLY INTENDED THAT THE EMPLOYEES COVERED THEREBY SHOULD RECEIVE ALL THE BENEFITS RESULTING FROM THE AMENDED COMPENSATION SCHEDULES TO THE SAME EXTENT AS SUCH BENEFITS WOULD HAVE ACCRUED IF THE LAW HAD BEEN ENACTED ON ITS EFFECTIVE DATE AND APPLIED CURRENTLY. THEREFORE, QUESTIONS 2 (A) AND 2 (C) ARE ANSWERED IN THE NEGATIVE, AND QUESTION 2 (B) IS ANSWERED IN THE AFFIRMATIVE. IN ARRIVING AT THIS CONCLUSION THERE HAS NOT BEEN OVERLOOKED THE ANSWER TO QUESTION 3, EMPLOYEE C, IN 29 COMP. GEN. 33.

ACCORDINGLY, IF THE AMOUNTS APPEARING ON THE SUBMITTED VOUCHER HAVE BEEN COMPUTED IN ACCORDANCE WITH THE FOREGOING AND INCLUDE PAYMENT FOR ADDITIONAL ANNUAL LEAVE REQUIRED TO BE RECREDITED TO THE EMPLOYEE'S ACCOUNT AS A RESULT OF THE RETROACTIVE REPEAL OF THE " DOUGLAS LEAVE RIDER," 65 STAT. 291 (B-106348 OF NOVEMBER 20, 1951, 31 COMP. GEN. 182), THE SAID VOUCHER, WHICH IS RETURNED HEREWITH, PROPERLY MAY BE CERTIFIED FOR PAYMENT.