B-123151, JUNE 3, 1955, 34 COMP. GEN. 657

B-123151: Jun 3, 1955

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FOR AN EMPLOYEE WHO HAD BOTH GOVERNMENT AND OTHER EMPLOYMENT DURING THE INTERIM PERIOD BETWEEN A REDUCTION-IN-FORCE REMOVAL AND RETROACTIVE RESTORATION IS TO BE COMPUTED AT THE RATE RECEIVED ON THE DATE OF THE REMOVAL. IN EVENT THE AMOUNT DUE IS INSUFFICIENT TO COVER THE REQUIRED DEDUCTIONS. MANIAN WHO WAS RESTORED TO THE ROLLS OF THE BUSINESS AND DEFENSE SERVICES ADMINISTRATION AS A RESULT OF THE APPEAL OF HIS SEPARATION TO THE UNITED STATES CIVIL SERVICE COMMISSION. WHO WAS EMPLOYED BY THE NATIONAL PRODUCTION AUTHORITY AS A GS-14. HIS NAME WAS NOT REMOVED FROM THE ROLLS. HE WAS CARRIED IN A "STATUS DING.'. HE WAS RESTORED TO DUTY ON AUGUST 3. HE WAS CARRIED ON ANNUAL LEAVE THROUGH THE CLOSE OF BUSINESS ON NOVEMBER 16.

B-123151, JUNE 3, 1955, 34 COMP. GEN. 657

COMPENSATION - DISCHARGES AND DISMISSALS - COMPENSATION FOR PERIOD BETWEEN SEPARATION AND REINSTATEMENT THE BACK PAY AUTHORIZED BY THE ACT OF AUGUST 24, 1912, AS AMENDED BY THE ACT OF JUNE 10, 1948, FOR AN EMPLOYEE WHO HAD BOTH GOVERNMENT AND OTHER EMPLOYMENT DURING THE INTERIM PERIOD BETWEEN A REDUCTION-IN-FORCE REMOVAL AND RETROACTIVE RESTORATION IS TO BE COMPUTED AT THE RATE RECEIVED ON THE DATE OF THE REMOVAL, LESS THE AMOUNTS EARNED FOR ALL EMPLOYMENT, AMOUNTS FOR RETIREMENT DEDUCTION ADJUSTMENT AND FOR LIQUIDATION OF THE LUMP-SUM LEAVE PAYMENT, AND, IN EVENT THE AMOUNT DUE IS INSUFFICIENT TO COVER THE REQUIRED DEDUCTIONS, COLLECTION OF THE DIFFERENCE SHOULD BE MADE FROM THE EMPLOYEE PRIOR TO THE RECREDITING OF LEAVE.

ASSISTANT COMPTROLLER GENERAL WEITZEL TO MRS. MURIEL B. SCOTT, DEPARTMENT OF COMMERCE, JUNE 3, 1955:

IN YOUR LETTER OF MARCH 3, 1955, YOU REQUEST OUR DECISION ON CERTAIN QUESTIONS CONCERNING THE BACK PAY OF MR. SAMUEL H. MANIAN WHO WAS RESTORED TO THE ROLLS OF THE BUSINESS AND DEFENSE SERVICES ADMINISTRATION AS A RESULT OF THE APPEAL OF HIS SEPARATION TO THE UNITED STATES CIVIL SERVICE COMMISSION.

THE RECORD SHOWS THAT MR. MANIAN, WHO WAS EMPLOYED BY THE NATIONAL PRODUCTION AUTHORITY AS A GS-14, $9,800 PER ANNUM, RECEIVED A REDUCTION IN -FORCE NOTICE EFFECTIVE AT CLOSE OF BUSINESS JUNE 30, 1953; HOWEVER, HIS NAME WAS NOT REMOVED FROM THE ROLLS, AND HE WAS CARRIED IN A "STATUS DING.' HE WAS RESTORED TO DUTY ON AUGUST 3, 1953, AS A GS-13, $9,360 PER ANNUM, AND RECEIVED BACK PAY FOR THE PERIOD JULY 1, TO AUGUST 2, 1953, AS HIS LAST DAY OF ACTIVE DUTY; HOWEVER, HE WAS CARRIED ON ANNUAL LEAVE THROUGH THE CLOSE OF BUSINESS ON NOVEMBER 16, 1953, AT WHICH TIME HE WAS SEPARATED AND PAID A LUMP SUM FOR 477 HOURS ACCRUED ANNUAL LEAVE WHICH COVERED THE PERIOD FROM NOVEMBER 17, 1953, THROUGH 7 HOURS ON FEBRUARY 11, 1954. AS THE RESULT OF AN APPEAL, THE UNITED STATES CIVIL SERVICE COMMISSION ON DECEMBER 22, 1954, RECOMMENDED THAT MR. MANIAN BE RESTORED TO A GS-14 POSITION RETROACTIVELY EFFECTIVE TO JULY 1, 1953. PURSUANT TO THIS RECOMMENDATION HE WAS RESTORED TO THE ROLLS ON JANUARY 17, 1955, AS A GS-14, WITH SALARY RATE OF $10,000 PER ANNUM. IN EFFECTING THIS RESTORATION THE FOLLOWING NOTATION WAS ENTERED ON STANDARD FORM 50:

RESTORATION REQUIRED BY THE CIVIL SERVICE COMMISSION RETROACTIVELY AS COMMODITY INDUSTRY ANALYST IN GS-14 AT $9,800 PER ANNUM FROM 7-1 53 THROUGH 1-16-55, INCLUSIVE,"... AND SHALL FOR ALL PURPOSES EXCEPT THE ACCUMULATION OF ANNUAL LEAVE BE DEEMED TO HAVE RENDERED SERVICE DURING SUCH PERIOD.' FROM 8-3-53 THROUGH 11-16-53 MR. MANIAN WAS EMPLOYED WITH BUSINESS AND DEFENSE SERVICES AT GS-13, $9,360 P.A. CREDIT ALLOWED FOR PERIODIC STEP INCREASE EFFECTIVE 3-28-54 FROM GS 14, $9,800 TO $10,000 P.A. MR. MANIAN TRANSFERRED TO THE FOREIGN OPERATIONS ADMINISTRATION EFFECTIVE FEBRUARY 7, 1955.

ON THE BASIS OF THE FIRST RESTORATION ON AUGUST 3, 1953, MR. MANIAN'S SALARY DURING THE PERIOD JULY 1, 1953, TO NOVEMBER 16, 1953, WAS PAID AT THE RATE OF $9,360 PER ANNUM. THE GROSS SALARY FOR THAT PERIOD AMOUNTED TO $3,564, AND HE RECEIVED THAT AMOUNT LESS $213.84 DEPOSITED TO HIS RETIREMENT ACCOUNT, AND $453 WITHHELD FOR FEDERAL INCOME TAX. HE ALSO RECEIVED A LUMP-SUM PAYMENT FOR ACCRUED ANNUAL LEAVE IN THE GROSS AMOUNT OF $2,254.50, LESS $450.90 WHICH WAS WITHHELD FOR FEDERAL INCOME TAX. MR. MANIAN HAS CERTIFIED THAT HE RECEIVED $11,089.76 FROM THE NATIONAL RESEARCH COUNCIL DURING THE PERIOD DECEMBER 7, 1953, TO JANUARY 14, 1955.

THE SEVERAL QUESTIONS PRESENTED BY YOU RELATE PRINCIPALLY TO (1) THE METHOD OF COMPUTING THE AMOUNT DUE THE EMPLOYEE, INCLUDING THE PROPER DEDUCTIONS, (2) THE AMOUNT OF LEAVE TO BE RECREDITED TO THE EMPLOYEE'S LEAVE ACCOUNT, AND (3) WHETHER A WITHHELD SALARY CHECK MAY BE CANCELED TO MAKE THE NECESSARY ADJUSTMENTS IN HIS RETIREMENT ACCOUNT.

THE EMPLOYEE IS ENTITLED, UNDER SECTION 6 (B) (3) OF THE ACT OF AUGUST 24, 1912, AS ADDED BY THE ACT OF JUNE 10, 1948, 62 STAT. 354, TO COMPENSATION FOR THE PERIOD JULY 1, 1953, TO JANUARY 16, 1955, COMPUTED AT THE GS-14 RATE OF $9,800 PER ANNUM, WHICH HE WAS RECEIVING ON THE DATE OF REMOVAL, LESS THE AMOUNTS EARNED THROUGH OTHER EMPLOYMENT AND THE AMOUNT NECESSARY TO MAKE THE PROPER ADJUSTMENT FOR RETIREMENT DEDUCTIONS. SEE 28 COMP. GEN. 563, AND 32 ID. 390. THERE SHOULD ALSO BE DEDUCTED OR COLLECTED FROM THE EMPLOYEE THE GROSS AMOUNT OF THE LUMP SUM PAYMENT FOR 477 HOURS ACCUMULATED LEAVE AND UPON RECOVERY OF THAT AMOUNT THE LEAVE SHOULD BE RECREDITED TO THE EMPLOYEE'S LEAVE ACCOUNT. ANY QUESTION CONCERNING EXCESS TAX WITHHOLDING IS FOR ADJUSTMENT BETWEEN THE EMPLOYEE AND THE BUREAU OF INTERNAL REVENUE. SEE 24 COMP. GEN. 522, AND 33 ID. 191. QUESTIONS ONE AND TWO ARE ANSWERED ACCORDINGLY.

CONCERNING QUESTION THREE, IN THE EVENT THERE IS AN INSUFFICIENT AMOUNT DUE THE EMPLOYEE TO COVER THE REQUIRED DEDUCTIONS, THE WITHHELD CHECK MAY BE CANCELED AND ITS PROCEEDS APPLIED TO MAKE THE NECESSARY ADJUSTMENTS IN HIS CASE.