B-106546, DECEMBER 18, 1951, 31 COMP. GEN. 230

B-106546: Dec 18, 1951

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IS ENTITLED TO THE RETROACTIVE SALARY INCREASE EVEN THOUGH CLAIM FOR ANNUITY MAY NEVER BE PRESENTED. 1951: REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 31. REQUESTING A DECISION AS TO WHAT CONSTITUTES A "RETIRED OFFICER OR EMPLOYEE" WITHIN THE MEANING OF THAT TERM AS IT IS USED IN SECTION 6 (B) OF THE ACT OF OCTOBER 24. DOUBT AS TO THE FIRST MATTER PRESENTED ARISES BECAUSE OF THE SEVERAL TYPES OF CIRCUMSTANCES UNDER WHICH ANNUITIES ARE PROVIDED BY THE CIVIL SERVICE RETIREMENT ACT WHICH ARE LISTED IN YOUR LETTER AS FOLLOWS: 1. IT IS POINTED OUT THAT IN EACH OF THE FIVE SITUATIONS LISTED ABOVE THERE HAS ARISEN A QUESTION INVOLVING PERSONS ELIGIBLE FOR ANNUITIES WHO HAD FILED CLAIM THEREFOR ON OR BEFORE OCTOBER 24.

B-106546, DECEMBER 18, 1951, 31 COMP. GEN. 230

COMPENSATION - RETROACTIVE SALARY INCREASES - RETIRED OFFICERS AND EMPLOYEES UNDER THE INCREASED COMPENSATION AMENDMENT TO THE CLASSIFICATION ACT OF 1940 PROVIDING FOR RETROACTIVE COMPENSATION PAYMENT TO RETIRED OFFICERS AND EMPLOYEES ANY PERSON WHO SEPARATED FROM THE SERVICE PRIOR TO OCTOBER 24, 1951, AND HAD MET ALL THE REQUIREMENTS OF THE CIVIL SERVICE RETIREMENT ACT FOR IMMEDIATE ANNUITY, IS ENTITLED TO THE RETROACTIVE SALARY INCREASE EVEN THOUGH CLAIM FOR ANNUITY MAY NEVER BE PRESENTED. THE RETROACTIVE SALARY INCREASE AUTHORIZED IN THE CLASSIFICATION ACT OF 1949, AS AMENDED, FOR RETIRED OFFICERS OR EMPLOYEES FOR SERVICES RENDERED DURING THE PERIOD BEGINNING WITH THE FIRST DAY OF THE FIRST PAY PERIOD WHICH BEGAN AFTER JUNE 30, 1951, AND ENDING WITH THE DATE OF THEIR RETIREMENT WOULD BE FOR PAYMENT IN THE CASE OF A RETIRED OFFICER OR EMPLOYEE WHO DIED ON OR BEFORE OCTOBER 24, 1951 (ENACTMENT DATE OF THE ACT), OR AFTER THAT DATE BUT PRIOR TO RECEIPT OF THE INCREASE.

ACTING COMPTROLLER GENERAL YATES TO THE CHAIRMAN, UNITED STATES CIVIL SERVICE COMMISSION, DECEMBER 18, 1951:

REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 31, 1951, RECEIVED HERE NOVEMBER 14, REQUESTING A DECISION AS TO WHAT CONSTITUTES A "RETIRED OFFICER OR EMPLOYEE" WITHIN THE MEANING OF THAT TERM AS IT IS USED IN SECTION 6 (B) OF THE ACT OF OCTOBER 24, 1951, PUBLIC LAW 201; AND, ALSO, WHETHER PAYMENT OF THE RETROACTIVE INCREASE AUTHORIZED BY THE SAID ACT WOULD BE DUE IN THE CASE OF A RETIRED OFFICER OR EMPLOYEE WHO DIED "/A) ON OR BEFORE OCTOBER 24, 1951, OR (B) AFTER THAT DATE BUT PRIOR TO RECEIPT OF THE INCREASE.'

DOUBT AS TO THE FIRST MATTER PRESENTED ARISES BECAUSE OF THE SEVERAL TYPES OF CIRCUMSTANCES UNDER WHICH ANNUITIES ARE PROVIDED BY THE CIVIL SERVICE RETIREMENT ACT WHICH ARE LISTED IN YOUR LETTER AS FOLLOWS:

1. COMPULSORY RETIREMENT AT AGE 70 (IN CERTAIN CASES 62) AFTER 15 YEARS' SERVICE.

2. OPTIONAL RETIREMENT (A) AGE 62 WITH 15 YEARS' SERVICE, (B) 60 WITH 30 YEARS' SERVICE, (C) 55 WITH 30 YEARS' SERVICE ON REDUCED ANNUITY, AND (D) 50 WITH 20 YEARS' SERVICE FOR CERTAIN LAW ENFORCEMENT OFFICERS.

3. DISABILITY RETIREMENT AFTER 5 YEARS' SERVICE.

4. INVOLUNTARY SEPARATION AFTER 25 YEARS' SERVICE ON REDUCED ANNUITY.

5. ANY SEPARATION AFTER 5 YEARS' SERVICE, ANNUITY TO BEGIN UPON ATTAINMENT OF AGE 62.

SECTION 6 (B) OF THE SAID ACT OF OCTOBER 24, 1951, 65 STAT. 615, PROVIDES AS FOLLOWS:

RETROACTIVE COMPENSATION OR SALARY SHALL BE PAID UNDER THIS ACT ONLY IN THE CASE OF AN INDIVIDUAL IN THE SERVICE OF THE UNITED STATES (INCLUDING SERVICE IN THE ARMED FORCES OF THE UNITED STATES) OR OF THE MUNICIPAL GOVERNMENT OF THE DISTRICT OF COLUMBIA ON THE DATE OF ENACTMENT OF THIS ACT, EXCEPT THAT SUCH RETROACTIVE COMPENSATION OR SALARY SHALL BE PAID A RETIRED OFFICER OR EMPLOYEE FOR SERVICES RENDERED DURING THE PERIOD BEGINNING WITH THE FIRST DAY OF THE FIRST PAY PERIOD WHICH BEGAN AFTER JUNE 30, 1951, AND ENDING WITH THE DATE OF HIS RETIREMENT.

IT IS POINTED OUT THAT IN EACH OF THE FIVE SITUATIONS LISTED ABOVE THERE HAS ARISEN A QUESTION INVOLVING PERSONS ELIGIBLE FOR ANNUITIES WHO HAD FILED CLAIM THEREFOR ON OR BEFORE OCTOBER 24, 1951, AS WELL AS THOSE WHO WERE ELIGIBLE BUT HAD NOT FILED CLAIM BY SUCH DATE. ALSO, CASES ARE CITED UNDER ITEM 5, (1) WHERE THE PERSON HAD NOT ATTAINED THE AGE OF 62 ON OR PRIOR TO OCTOBER 24, AND THEREFORE WAS NOT ELIGIBLE FOR IMMEDIATE ANNUITY, AND (2) WHERE THE EMPLOYEE WAS ELIGIBLE BUT HAVING SERVED LESS THAN 20 YEARS HAD THE RIGHT OF ELECTION BETWEEN AN ANNUITY AND A REFUND OF HIS RETIREMENT DEDUCTIONS.

THE CIVIL SERVICE RETIREMENT ACT, 46 STAT. 468, DEFINES THE TERM,"ANNUITANT," AS ANY EMPLOYEE WHO HAS MET ALL THE REQUIREMENTS OF THE ACT FOR AN ANNUITY AND HAS FILED CLAIM THEREFOR. HOWEVER, SINCE THE EXCEPTION PROVIDED BY SECTION 6 (B), SUPRA, EXPRESSLY RELATES TO "RETIRED OFFICERS OR EMPLOYEES" AS DISTINGUISHED FROM "ANNUITANTS" IT REASONABLY APPEARS THAT THE CONGRESS INTENDED THE PROVISION TO HAVE A BROADER APPLICATION THAN WOULD BE PERMITTED UNDER THE FOREGOING DEFINITION OF ANNUITANT. THEREFORE, IT IS CONCLUDED THAT THE TERM,"RETIRED OFFICER OR EMPLOYEES," AS IT IS USED IN THE SAID SECTION 6 (B), INCLUDES ALL PERSONS WHO RECEIVE ANNUITIES UNDER THE CIVIL SERVICE RETIREMENT ACT AS WELL AS THOSE WHO ARE ELIGIBLE TO RECEIVE ANNUITIES EFFECTIVE FROM THE DATE OF THEIR SEPARATION FROM THE SERVICE REGARDLESS OF WHETHER CLAIM THEREFOR WAS FILED PRIOR OR SUBSEQUENT TO THE ENACTMENT DATE OF PUBLIC LAW 201. FOLLOWS, THEREFORE, THAT ANY PERSON WHO SEPARATED FROM THE SERVICE PRIOR TO OCTOBER 24, 1951, AND HAD MET ALL THE REQUIREMENTS OF THE CIVIL SERVICE RETIREMENT ACT FOR IMMEDIATE ANNUITY, IS ENTITLED TO THE RETROACTIVE SALARY INCREASE EVEN THOUGH CLAIM FOR ANNUITY MAY NEVER BE PRESENTED.

THE PROVISION OF PUBLIC LAW 201 RELATING TO RETIRED EMPLOYEES CONSTITUTES AN EXCEPTION TO THE GENERAL REQUIREMENT THAT RETROACTIVE SALARY INCREASES MAY BE PAID ONLY TO INDIVIDUALS WHO WERE IN THE SERVICE OF THE UNITED STATES ON THE ENACTMENT DATE OF THE ACT. THEREFORE, SINCE THE RIGHT TO THE RETROACTIVE INCREASE IN SUCH CASES VESTS AS OF THE DATE OF SEPARATION FROM THE SERVICE, PAYMENT THEREOF WOULD BE DUE THE DESIGNATED BENEFICIARY OR THE ESTATE OF ANY SUCH EMPLOYEE WHO DIED AT ANY TIME PRIOR TO RECEIPT OF THE INCREASE.