B-121243, MAR 21, 1955

B-121243: Mar 21, 1955

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THE VOUCHER IS STATED IN THE AMOUNT OF $13.70 AS A PROPOSED REFUND OF THE DIFFERENCE. IT APPEARS THAT MAJOR OEDER WAS GRANTED RETIRED PAY OCTOBER 31. IS $74.30. THE AMOUNT OF THE REDUCTION IN HIS RETIRED PAY FOR PURPOSES OF PROVIDING THE ANNUITY TO BE PAID TO HIS DEPENDENT WAS COMPUTED ON THE BASIS OF SUCH RETIRED PAY OF $74.30 PER MONTH. IT IS INDICATED THAT IF THE DEDUCTIONS FROM MAJOR OEDER'S RETIRED PAY WERE TO BE BASED ON GROSS MONTHLY RETIRED PAY COMPUTED WITHOUT GIVING HIM CREDIT FOR SERVICE OF THE TYPE INVOLVED IN THE PRICE CASE. MAJOR OEDER'S CORRECT MONTHLY RETIRED PAY PRIOR TO AND AT THE DATE OF HIS ELECTION WAS $74.30. THE REDUCTION IN HIS RETIRED PAY PROPERLY WAS COMPUTED ON THAT BASIS.

B-121243, MAR 21, 1955

PRECIS-UNAVAILABLE

LIEUTENANT COLONEL EUGENE PALETZ, FC, DEPARTMENT OF THE ARMY:

BY FIRST INDORSEMENT DATED AUGUST 25, 1954, THE CHIEF OF FINANCE FORWARDED YOUR LETTER OF JULY 22, 1954, SUBMITTING FOR ADVANCE DECISION A VOUCHER IN FAVOR OF LAMBERT R. OEDER, MAJOR, UNITED STATES ARMY RESERVE, RETIRED. THE VOUCHER IS STATED IN THE AMOUNT OF $13.70 AS A PROPOSED REFUND OF THE DIFFERENCE, FOR THE PERIOD FEBRUARY 1 TO JUNE 30, 1954, BETWEEN THE COST OF AN ANNUITY UNDER THE UNIFORMED SERVICES CONTINGENCY OPTION ACT OF 1953, 67 STAT. 501, BASED UPON $63.87, MONTHLY GROSS RETIRED PAY, AND THE COST OF SUCH AN ANNUITY BASED ON $74.30, MONTHLY GROSS RETIRED PAY.

IT APPEARS THAT MAJOR OEDER WAS GRANTED RETIRED PAY OCTOBER 31, 1952, UNDER THE PROVISIONS OF TITLE III, PUBLIC LAW 810, 62 STAT. 1087, AS AMENDED. IT FURTHER APPEARS THAT HIS CORRECT RETIRED PAY BASED ON ALL OF HIS SERVICE, INCLUDING SERVICE UNDER THE DICK ACT OF JANUARY 21, 1903, IN CONSONANCE WITH THE HOLDING OF THE COURT OF CLAIMS IN THE CASE OF PRICE V. UNITED STATES, 121 C. CLS. 664, IS $74.30, MONTHLY.

EFFECTIVE FEBRUARY 1, 1954, THE OFFICER EXERCISED AN ELECTION OF OPTION, AS PROVIDED BY THE UNIFORMED SERVICES CONTINGENCY OPTION ACT OF 1953. ELECTED OPTION 1 (WITH A ONE-HALF ANNUITY) SO AS TO PROVIDE AN ANNUITY FOR HIS WIDOW IN AN AMOUNT EQUAL TO ONE-HALF OF HIS REDUCED RETIRED PAY BASED ON A GROSS RETIRED PAY OF $74.30, MONTHLY, THE MONTHLY PREMIUM COST TO BE $19.46 AND THE RESULTING MONTHLY BENEFIT TO THE WIDOW TO BE $27.42. THE AMOUNT OF THE REDUCTION IN HIS RETIRED PAY FOR PURPOSES OF PROVIDING THE ANNUITY TO BE PAID TO HIS DEPENDENT WAS COMPUTED ON THE BASIS OF SUCH RETIRED PAY OF $74.30 PER MONTH. IT IS INDICATED THAT IF THE DEDUCTIONS FROM MAJOR OEDER'S RETIRED PAY WERE TO BE BASED ON GROSS MONTHLY RETIRED PAY COMPUTED WITHOUT GIVING HIM CREDIT FOR SERVICE OF THE TYPE INVOLVED IN THE PRICE CASE, SUCH DEDUCTIONS WOULD AMOUNT TO $16.72 PER MONTH (BASED ON GROSS MONTHLY RETIRED PAY OF $63.87) AND WOULD BUY A WIDOW'S ANNUITY OF $23.58 PER MONTH.

UNDER THE RULE ESTABLISHED BY THE COURT OF CLAIMS IN THE PRICE CASE, AND PRESENTLY BEING FOLLOWED BY THIS OFFICE, MAJOR OEDER'S CORRECT MONTHLY RETIRED PAY PRIOR TO AND AT THE DATE OF HIS ELECTION WAS $74.30. HENCE, THE REDUCTION IN HIS RETIRED PAY PROPERLY WAS COMPUTED ON THAT BASIS. COMPARE DECISION OF OCTOBER 4, 1954, 34 COMP. GEN. 151.

PAYMENT ON THE VOUCHER, WHICH IS RETAINED IN THIS OFFICE, IS NOT AUTHORIZED.