B-112180, NOV 12, 1952

B-112180: Nov 12, 1952

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

TEXAS REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 19. BY WHICH YOU WERE ALLOWED THE SUM OF $624.61. YOU CONTEND THAT THE INTEREST SHOULD BE COMPUTED OVER THE ENTIRE PERIOD THAT THE DEPOSITS WERE HELD BY THE GOVERNMENT. THAT HAD PAYMENT BEEN MADE AT THE TIME OF DISCHARGE YOU COULD HAVE REDEPOSITED THE MONEY. THAT IF INTEREST IS NOT TO BE PAID TO THE DATE OF SETTLEMENT THAT ARRANGEMENTS BE MADE TO REDEPOSIT THE AMOUNT AS OF MARCH 7. THAT UPON REPAYMENT INTEREST WILL BE PAID AT THE RATE OF 4 PERCENT A YEAR ON THE AMOUNT REPAID TO INCLUDE DATE OF DISCHARGE OR RETIREMENT. THE STATUTES AND REGULATIONS CONTEMPLATE THAT THE DEPOSITS MADE THEREUNDER WILL BE MADE DURING THE TERM OF THE ENLISTED MAN'S ENLISTMENT AND WILL BE PAID TO HIM UPON HIS DISCHARGE.

B-112180, NOV 12, 1952

PRECIS-UNAVAILABLE

MASTER SERGEANT THOMAS P. SMITH, USAF:

2029 DALWORTH STREET

GRAND PRAIRIE, TEXAS

REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 19, 1952, CONCERNING GENERAL ACCOUNTING OFFICE SETTLEMENT DATED SEPTEMBER 5, 1952, BY WHICH YOU WERE ALLOWED THE SUM OF $624.61, REPRESENTING SOLDIER'S DEPOSITS IN THE SUM OF $604 AND INTEREST THEREON IN THE SUM OF $20.61, COMPUTED TO THE DATE OF YOUR DISCHARGE FROM THE AIR FORCE ON MARCH 6, 1952. YOU CONTEND THAT THE INTEREST SHOULD BE COMPUTED OVER THE ENTIRE PERIOD THAT THE DEPOSITS WERE HELD BY THE GOVERNMENT; THAT HAD PAYMENT BEEN MADE AT THE TIME OF DISCHARGE YOU COULD HAVE REDEPOSITED THE MONEY, AND THAT IF INTEREST IS NOT TO BE PAID TO THE DATE OF SETTLEMENT THAT ARRANGEMENTS BE MADE TO REDEPOSIT THE AMOUNT AS OF MARCH 7, 1952.

SECTION 1305, 1306, AND 1307, REVISED STATUTES, 10 U.S.C. 906, 907, AND 908, PROVIDE, AMONG OTHER THINGS, THAT ANY ENLISTED MAN OF THE ARMY (NOW ALSO APPLICABLE TO THE AIR FORCE) MAY DEPOSIT HIS SAVINGS, IN SUMS NOT LESS THAN $5, WITH ANY FINANCE OFFICER, WHO SHALL FURNISH HIM A DEPOSIT BOOK IN WHICH SHALL BE ENTERED THE NAME OF THE FINANCE OFFICER AND OF THE SOLDIER, AND THE AMOUNT, DATE, AND PLACE OF SUCH DEPOSIT; THAT ANY AMOUNT SO DEPOSITED SHALL BE HELD DURING SUCH PERIOD OF HIS SERVICE AS MAY BE PRESCRIBED BY THE SECRETARY OF WAR (NOW SECRETARIES OF THE ARMY AND THE AIR FORCE); THAT FOR ANY SUMS NOT LESS THAN $5 SO DEPOSITED FOR A PERIOD OF SIX MONTHS, OR LONGER, THE SOLDIER, ON HIS FINAL DISCHARGE OR AT SUCH TIME OR TIMES PRIOR THERETO AS MAY BE PRESCRIBED BY THE SECRETARY, SHALL BE PAID INTEREST AT THE RATE OF 4 PERCENT A YEAR, AND THAT THE SYSTEM OF DEPOSITS SO ESTABLISHED SHALL BE GOVERNED BY SUCH REGULATIONS AS MAY BE ESTABLISHED BY THE SECRETARY.

PARAGRAPHS 9 AND 10 OF SPECIAL REGULATIONS NO. 35-1550-1, AIR FORCE REGULATION NO. 173-77, DATED OCTOBER 10, 1950, ISSUED BY THE SECRETARIES OF THE ARMY AND THE AIR FORCE, PROVIDE FOR REPAYMENT OF DEPOSITS UPON DISCHARGE OR RETIREMENT FROM THE SERVICE, AND THAT UPON REPAYMENT INTEREST WILL BE PAID AT THE RATE OF 4 PERCENT A YEAR ON THE AMOUNT REPAID TO INCLUDE DATE OF DISCHARGE OR RETIREMENT. PARAGRAPH 12 OF SAID REGULATIONS PROVIDES THAT A DISCHARGED SOLDIER OR AIRMAN WHO AFTER REENLISTMENT DESIRES THAT ALL OR A PART OF THE MONEY (INCLUDING DEPOSITS AND INTEREST THEREON) DUE HIM ON DISCHARGE BE REDEPOSITED UNDER THE PROVISIONS OF PARAGRAPH 1 OF SUCH REGULATIONS MUST FURNISH A DISBURSING OFFICER HAVING CUSTODY OF HIS MILITARY PAY RECORD A WRITTEN ORDER REQUESTING THAT SUCH PART OF THE AMOUNT DUE AS HE MAY DESIRE TO DEPOSIT BE TRANSFERRED TO HIS NEW MILITARY PAY RECORD.

THE STATUTES AND REGULATIONS CONTEMPLATE THAT THE DEPOSITS MADE THEREUNDER WILL BE MADE DURING THE TERM OF THE ENLISTED MAN'S ENLISTMENT AND WILL BE PAID TO HIM UPON HIS DISCHARGE. THE RULE HAS BEEN ESTABLISHED AT LEAST SINCE 1885 THAT WHERE AN ENLISTED MAN FAILS TO RECEIVE HIS DEPOSITS AT THE TIME OF DISCHARGE HE IS ENTITLED TO INTEREST FROM THE DAY FOLLOWING THE DATE OF DEPOSIT UP TO AND INCLUDING THE DATE OF HIS DISCHARGE ONLY. IN A DECISION OF A COMPTROLLER OF THE TREASURY DATED APRIL 21, 1902, 8 COMP.GEN. 739, 741, THERE WAS CITED WITH APPROVAL A DECISION DATED SEPTEMBER 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 THE CASE OF AN ENLISTED MAN WHO IS DISCHARGED AND SUBSEQUENTLY REENLISTS, PARAGRAPH 12 OF THE ABOVE-CITED REGULATIONS DOES NOT REQUIRE THAT THE AMOUNT TO HIS CREDIT AS A DEPOSIT BE WITHDRAWN AND REDEPOSITED, BUT BEFORE THE AMOUNT OF THE DEPOSITS MADE IN HIS FORMER ENLISTMENT CAN BE TRANSFERRED TO A NEW ACCOUNT THE REGULATION REQUIRES THAT HE FURNISH THE OFFICER HAVING CUSTODY OF HIS MILITARY PAY RECORD A WRITTEN ORDER REQUESTING SUCH TRANSFER. HOWEVER, THE AMOUNT STANDING TO YOUR CREDIT WAS NOT DEPOSITED IN A NEW ACCOUNT AT THE TIME OF YOUR ENLISTMENT OF MARCH 7, 1952, BUT WAS CERTIFIED FOR PAYMENT TO YOU PURSUANT TO A CLAIMS DIVISION SETTLEMENT BASED UPON YOUR CLAIM THEREFOR. HENCE, THERE IS NO AUTHORITY FOR THE PAYMENT OF INTEREST SUBSEQUENT TO MARCH 6, 1952, THE DATE OF YOUR DISCHARGE, AND ANY ACTION TO REDEPOSIT THE AMOUNT ALLOWED BY THE SAID SETTLEMENT MUST BE INITIATED BY YOU.

THE SETTLEMENT OF SEPTEMBER 5, 1952, WAS CORRECT AND UPON REVIEW IS SUSTAINED.