B-107269, JANUARY 28, 1952, 31 COMP. GEN. 338

B-107269: Jan 28, 1952

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THE BENEFICIARY OF A DECEASED MARINE IS NOT ENTITLED TO INTEREST ON HIS SAVINGS DEPOSITS FOR THE PERIOD BETWEEN THE DATE OF HIS DEATH AND THE DATE OF PAYMENT. 1952: REFERENCE IS MADE TO A LETTER DATED DECEMBER 3. IT IS CONTENDED IN THE SAID LETTER THAT INTEREST ON THE AMOUNT OF THE DEPOSITS TO THE CREDIT OF THE DECEDENT'S ESTATE SHOULD HAVE BEEN COMPUTED TO SEPTEMBER 6. THAT THERE IS DUE YOU THE ADDITIONAL SUM OF $210.43. WITH THE PAYMASTER UPON WHOSE BOOKS HIS ACCOUNT IS BORNE. ARE AS FOLLOWS: 80000 PERSONNEL ELIGIBLE 1. PERSON WILL BE COMPELLED TO MAKE DEPOSITS. NOR WILL ANY PERSON BE PERMITTED TO START A NEW DEPOSIT ACCOUNT WITHIN THE 6 MONTHS' PERIOD IMMEDIATELY PRECEDING THE NORMAL DATE OF EXPIRATION OF ENLISTMENT.

B-107269, JANUARY 28, 1952, 31 COMP. GEN. 338

INTEREST - DECEASED MARINES' SAVINGS DEPOSITS INTEREST ON ENLISTED MEN'S SAVINGS DEPOSITS CANNOT BE ALLOWED BEYOND THE DATE OF SEPARATION FROM THE SERVICE, NOTWITHSTANDING THE TIME WHICH MAY INTERVENE BETWEEN THE DATE OF SEPARATION AND THE DATE OF FINAL PAYMENT, AND THEREFORE, THE BENEFICIARY OF A DECEASED MARINE IS NOT ENTITLED TO INTEREST ON HIS SAVINGS DEPOSITS FOR THE PERIOD BETWEEN THE DATE OF HIS DEATH AND THE DATE OF PAYMENT.

ASSISTANT COMPTROLLER GENERAL YATES TO SOPHIE K. BIEDKA, JANUARY 28, 1952:

REFERENCE IS MADE TO A LETTER DATED DECEMBER 3, 1951, WRITTEN IN YOUR BEHALF BY ASKOW AND STEVENS, ATTORNEYS AT LAW, REQUESTING REVIEW OF THAT PORTION OF A SETTLEMENT OF THIS OFFICE DATED SEPTEMBER 6, 1951, WHICH ALLOWED YOU AS WIDOW OF MATTHEW JOHN BIEDKA, LATE TECHNICAL SERGEANT, UNITED STATES MARINE CORPS, DEPOSITS IN THE AMOUNT OF $5,000 TO THE CREDIT OF THE DECEDENT PLUS INTEREST THEREON IN THE SUM OF $92.83 COMPUTED TO THE DATE OF HIS DEATH, OCTOBER 27, 1950.

IT IS CONTENDED IN THE SAID LETTER THAT INTEREST ON THE AMOUNT OF THE DEPOSITS TO THE CREDIT OF THE DECEDENT'S ESTATE SHOULD HAVE BEEN COMPUTED TO SEPTEMBER 6, 1951, THE DATE OF THE AFOREMENTIONED SETTLEMENT, AND THAT THERE IS DUE YOU THE ADDITIONAL SUM OF $210.43.

THE ACT OF FEBRUARY 9, 1889, 25 STAT. 657, 658, 34 U.S.C. 933, 934, AND 935, PROVIDES, INTER ALIA, THAT ANY ENLISTED MAN OF THE NAVY, WHICH INCLUDES THE MARINE CORPS, MAY DEPOSIT HIS SAVINGS, IN SUMS NOT LESS THAN $5, WITH THE PAYMASTER UPON WHOSE BOOKS HIS ACCOUNT IS BORNE; THAT THE MONEY SO DEPOSITED SHALL NOT BE PERMITTED TO BE PAID UNTIL FINAL PAYMENT ON DISCHARGE, OR TO THE HEIRS OR REPRESENTATIVES OF A DECEASED ENLISTED MAN; THAT FOR SUMS SO DEPOSITED FOR THE PERIOD OF SIX MONTHS OR LONGER, THE ENLISTED MAN, ON HIS FINAL DISCHARGE, SHALL BE PAID INTEREST AT THE RATE OF FOUR PERCENTUM PER ANNUM, AND THAT SUCH SYSTEM OF DEPOSITS SHALL BE CARRIED INTO EXECUTION UNDER REGULATIONS ESTABLISHED BY THE SECRETARY OF THE NAVY.

ARTICLE 1923 OF THE UNITED STATES NAVY REGULATIONS 1948, PROVIDES:

ENLISTED PERSONS SHALL BE PERMITTED, UPON THEIR APPLICATION, TO DEPOSIT MONEY IN SAVINGS ACCOUNTS WITH THE OFFICER HAVING CUSTODY OF THEIR PAY ACCOUNTS IN ACCORDANCE WITH INSTRUCTIONS IN THE BUREAU OF SUPPLIES AND ACCOUNTS MANUAL OR THE MARINE CORPS MANUAL, BUT THEY SHALL NOT BE COMPELLED TO MAKE DEPOSITS IN SUCH SAVINGS ACCOUNTS.

PERTINENT REGULATIONS SET FORTH IN THE MARINE CORPS MANUAL, 1949, ARE AS FOLLOWS:

80000 PERSONNEL ELIGIBLE

1. AN ENLISTED MEMBER OF THE MARINE CORPS, INCLUDING A RETIRED OR RESERVE ENLISTED PERSON WHEN ON ACTIVE DUTY OTHER THAN ACTIVE DUTY FOR TRAINING, MAY, WITH THE APPROVAL OF HIS COMMANDING OFFICER, MAKE DEPOSITS OF HIS SAVINGS WITH THE DISBURSING OFFICER HAVING CUSTODY OF HIS PAY RECORD. PERSON WILL BE COMPELLED TO MAKE DEPOSITS, NOR WILL ANY PERSON BE PERMITTED TO START A NEW DEPOSIT ACCOUNT WITHIN THE 6 MONTHS' PERIOD IMMEDIATELY PRECEDING THE NORMAL DATE OF EXPIRATION OF ENLISTMENT. OFFICER MAY MAKE DEPOSITS UNDER THESE REGULATIONS.

80002 INTEREST

1. SUMS DEPOSITED FOR A PERIOD OF 6 MONTHS OR LONGER WILL DRAW INTEREST AT THE RATE OF 4 PERCENT PER ANNUM, BASED ON A YEAR OF 360 DAYS.

80150 BASIS OF INTEREST COMPUTATION

1. IN COMPUTING TIME FOR CREDIT OF INTEREST, THE EFFECTIVE DATE OF DEPOSIT SHOULD BE EXCLUDED; AND THE DATE OF DISCHARGE, RELEASE FROM ACTIVE DUTY, TRANSFER TO FLEET MARINE CORPS RESERVE, OR THE DATE PRIOR TO EFFECTIVE DATE OF FIRST EXTENSION OF ENLISTMENT, RETIREMENT, OR APPOINTMENT TO WARRANT OR COMMISSIONED RANK, SHOULD BE INCLUDED. IF A DEPOSITOR IS DISCHARGED OTHER THAN ON THE DATE OF EXPIRATION OF ENLISTMENT, INTEREST WILL BE COMPUTED TO AND INCLUDING THE DATE OF DISCHARGE, NOT THE DATE OF EXPIRATION OF ENLISTMENT.

UPON THE DEATH IN THE SERVICE OF THE DECEDENT, THE AMOUNT DUE HIS ESTATE FROM THE GOVERNMENT, INCLUDING ARREARS OF PAY AND SAVINGS DEPOSITS, BECAME SUBJECT TO SETTLEMENT AS A CLAIM BY THIS OFFICE UNDER THE ACT OF FEBRUARY 25, 1946, 60 STAT. 30. SUCH ACT PROVIDES THAT IN THE SETTLEMENT OF THE ACCOUNTS OF DECEASED OFFICERS OR ENLISTED PERSONS OF THE NAVY OR MARINE CORPS, WHERE NO DEMAND IS PRESENTED BY A DULY APPOINTED LEGAL REPRESENTATIVE OF THE ESTATE, THAT IS, AN EXECUTOR OR ADMINISTRATOR, THE AMOUNT FOUND DUE MAY BE ALLOWED TO THE WIDOW OR LEGAL HEIRS AS HEREIN SPECIFIED IN THE ORDER OF PRECEDENCE DESIGNATED. THE STATUTE MAKES NO PROVISION FOR PAYMENT OF INTEREST ON THE AMOUNT FOUND DUE, AND IN THAT CONNECTION IT MAY BE STATED THAT IT IS THE ESTABLISHED RULE THAT UNLESS THE GOVERNMENT HAS STIPULATED TO PAY INTEREST OR IT IS GIVEN BY EXPRESS STATUTORY PROVISION, INTEREST DOES NOT RUN ON CLAIMS AGAINST THE GOVERNMENT. SEE SMYTH V. UNITED STATES, 302 U.S. 329, AND AUTHORITIES CITED THEREIN.

MOREOVER, THE RULE IS WELL ESTABLISHED THAT INTEREST ON ENLISTED MEN'S DEPOSITS CANNOT BE ALLOWED BEYOND THE DATE OF SEPARATION FROM THE SERVICE NOTWITHSTANDING THE TIME WHICH MAY HAVE INTERVENED BETWEEN THE DATE OF SEPARATION AND THE DATE OF FINAL PAYMENT. THIS RULE, INSOFAR AS DEPOSITS OF ENLISTED MEN OF THE ARMY ARE CONCERNED, UNDER SECTIONS 1305, 1306, AND 1307 OF THE REVISED STATUTES, FROM WHICH THE ACT OF 1889, SUPRA, WAS DERIVED, HAS BEEN RECOGNIZED AND FOLLOWED AT LEAST SINCE 1885. IN A DECISION OF A FORMER COMPTROLLER OF THE TREASURY, DATED APRIL 21, 1902, 8 COMP. DEC. 739, 742, THERE WAS CITED WITH APPROVAL A DECISION DATED DECEMBER 30, 1885, TO THE EFFECT THAT AFTER DISCHARGE A SOLDIER'S DEPOSITS REMAIN IN THE POSSESSION OF THE UNITED STATES WITHOUT INTEREST UNTIL PAID. IN 16 COMP. DEC. 30, IT WAS HELD THAT SECTION 2 OF THE ACT OF FEBRUARY 9, 1889, CLEARLY IMPLIES THAT INTEREST SHALL BE PAID ON DEPOSITS OF ENLISTED MEN OF THE NAVY ONLY TO THE DATE OF DISCHARGE. IN A DECISION DATED APRIL 24, 1937, 16 COMP. GEN. 960, THE RULE PREVIOUSLY ENUNCIATED WITH RESPECT TO THE PAYMENT OF INTEREST WAS FOLLOWED IN THE CASE OF MEMBERS OF THE NAVAL RESERVE, IT BEING STATED THEREIN THAT THERE IS NO AUTHORITY FOR THE CONTINUANCE OF INTEREST ON DEPOSITS AFTER RELEASE FROM ACTIVE DUTY. THEREFORE, SINCE YOUR LATE HUSBAND WAS SEPARATED FROM THE SERVICE BY REASON OF HIS DEATH ON OCTOBER 27, 1950, THERE IS NO AUTHORITY FOR THE PAYMENT OF INTEREST ON HIS DEPOSITS FOR ANY PERIOD SUBSEQUENT TO THAT DATE. ACCORDINGLY, THE SETTLEMENT OF SEPTEMBER 6, 1951, WHICH ALLOWED INTEREST TO THE DATE OF HIS DEATH WAS CORRECT AND IS SUSTAINED.