B-130074, FEBRUARY 6, 1957, 36 COMP. GEN. 580

B-130074: Feb 6, 1957

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DEPARTMENTS AND ESTABLISHMENTS - HEADS - COUNCIL OF ECONOMIC ADVISERS - SALARY PAYMENT BASIS THE COUNCIL OF ECONOMIC ADVISERS AS DISTINGUISHED FROM THE CHAIRMAN IS CONSIDERED THE HEAD OF THE AGENCY. THE SALARY OF EACH MEMBER IS FOR COMPUTATION ON A SEMIMONTHLY BASIS AS PROVIDED IN 5 U.S.C. 84 FOR HEADS OF DEPARTMENTS AND AGENCIES WHO ARE EXEMPT BY 5 U.S.C. 902 FROM THE BIWEEKLY SALARY PROVISIONS IN THE CLASSIFICATION ACT OF 1949. THE VOUCHER IS FOR $468.97 AND REPRESENTS THE DIFFERENCE BETWEEN PAYMENTS ACTUALLY MADE ON A BIWEEKLY BASIS AND THE AMOUNT WHICH WOULD HAVE BEEN PAID IF PAYMENTS HAD BEEN MADE ON A SEMIMONTHLY BASIS. THE PAY OF FEDERAL EMPLOYEES IS COVERED BY THE PROVISIONS OF 5 U.S.C. 901 WHICH APPLY GENERALLY TO ALL CIVILIAN OFFICERS AND EMPLOYEES IN OR UNDER THE EXECUTIVE BRANCH OF THE GOVERNMENT.

B-130074, FEBRUARY 6, 1957, 36 COMP. GEN. 580

DEPARTMENTS AND ESTABLISHMENTS - HEADS - COUNCIL OF ECONOMIC ADVISERS - SALARY PAYMENT BASIS THE COUNCIL OF ECONOMIC ADVISERS AS DISTINGUISHED FROM THE CHAIRMAN IS CONSIDERED THE HEAD OF THE AGENCY, AND, THEREFORE, THE SALARY OF EACH MEMBER IS FOR COMPUTATION ON A SEMIMONTHLY BASIS AS PROVIDED IN 5 U.S.C. 84 FOR HEADS OF DEPARTMENTS AND AGENCIES WHO ARE EXEMPT BY 5 U.S.C. 902 FROM THE BIWEEKLY SALARY PROVISIONS IN THE CLASSIFICATION ACT OF 1949.

TO E. JEANNE MULLOY, EXECUTIVE OFFICE OF THE PRESIDENT, FEBRUARY 6, 1957:

YOU LETTER OF DECEMBER 12, 1956, REQUESTS OUR DECISION WHETHER THE ENCLOSED VOUCHER IN FAVOR OF MR. WALTER W. STEWART, A FORMER MEMBER OF THE COUNCIL OF ECONOMIC ADVISERS MAY BE CERTIFIED FOR PAYMENT. THE VOUCHER IS FOR $468.97 AND REPRESENTS THE DIFFERENCE BETWEEN PAYMENTS ACTUALLY MADE ON A BIWEEKLY BASIS AND THE AMOUNT WHICH WOULD HAVE BEEN PAID IF PAYMENTS HAD BEEN MADE ON A SEMIMONTHLY BASIS. THE DIFFERENCE IN SALARY ARISES IN THIS CASE BECAUSE OF PERIODS OF LEAVE WITHOUT PAY-- THE DAILY RATE BEING LESS UNDER THE SEMIMONTHLY PAYMENT PLAN.

THE PAY OF FEDERAL EMPLOYEES IS COVERED BY THE PROVISIONS OF 5 U.S.C. 901 WHICH APPLY GENERALLY TO ALL CIVILIAN OFFICERS AND EMPLOYEES IN OR UNDER THE EXECUTIVE BRANCH OF THE GOVERNMENT, INCLUDING GOVERNMENT-OWNED OR CONTROLLED CORPORATIONS. SEE 5 U.S.C. 944 FOR METHOD OF COMPUTATION OF THEIR PAY. CERTAIN EXEMPTIONS FROM THE COVERAGE OF SECTION 901 ARE LISTED IN 5 U.S.C. 902 ONE OF WHICH EXEMPTS THE HEADS OF DEPARTMENTS OR OF INDEPENDENT ESTABLISHMENTS OR AGENCIES OF THE FEDERAL GOVERNMENT. WHEN THE SALARY OF THOSE OFFICIALS "IS ANNUAL OR MONTHLY" IT IS COMPUTED IN ACCORDANCE WITH 5 U.S.C. 84.

THE COUNCIL OF ECONOMIC ADVISERS TO THE PRESIDENT WAS ORIGINALLY CREATED BY THE EMPLOYMENT ACT OF 1946, 60 STAT. 24, 15 U.S.C. 1023. SECTION 4 (A), 15 U.S.C. 1023 (A), LIMITS THE COMPOSITION OF THE COUNCIL TO THREE MEMBERS WHO SHALL BE APPOINTED BY THE PRESIDENT, BY AND WITH THE ADVICE AND CONSENT OF THE SENATE. THE PRESIDENT DESIGNATES ONE OF THE MEMBERS AS CHAIRMAN AND ONE AS VICE CHAIRMAN. PARAGRAPH (B), 15 U.S.C. 1023 (B), AUTHORIZES THE COUNCIL TO EMPLOY AND FIX THE COMPENSATION OF SPECIALISTS AND OTHER EXPERTS AND TO EMPLOY OTHER OFFICERS AND EMPLOYEES AS MAY BE NECESSARY FOR CARRYING OUT ITS FUNCTIONS. PARAGRAPH (C), 15 U.S.C. 1023 (C), PRESCRIBES THE DUTY AND FUNCTION OF THE COUNCIL, AND PARAGRAPH (D), 15 U.S.C. 1023 (D), REQUIRES THE COUNCIL TO MAKE AN ANNUAL REPORT TO THE PRESIDENT.

THE ABOVE-CITED STATUTE CLEARLY VESTS THE MANAGEMENT AND CONTROL OF THE COUNCIL IN ITS THREE MEMBERS, AND THE DUTIES AND RESPONSIBILITIES THUS IMPOSED UPON THE COUNCIL ARE THE DUTIES AND RESPONSIBILITIES OF ALL THE MEMBERS OF THE COUNCIL ACTING AS A BODY. THEREFORE, NO ONE MEMBER MAY EXERCISE ANY GREATER AUTHORITY THAN THAT EXERCISED BY THE OTHER MEMBERS CONCERNING THE MANAGEMENT, CONTROL, AND POLICIES OF THE COUNCIL, NOTWITHSTANDING ONE OF THE MEMBERS HAS BEEN DESIGNATED AS CHAIRMAN. HENCE, UNDER THE ORIGINAL 1946 ACT THE COUNCIL ITSELF, AND NOT ITS CHAIRMAN IS THE HEAD OF THE AGENCY WITHIN THE MEANING OF 5 U.S.C. 902.

REORGANIZATION PLAN NO. 9 OF 1953, 67 STAT. 644, 5 U.S.C. 133Z-15, EFFECTIVE AUGUST 1, 1953, MADE THE FOLLOWING CHANGES IN THE FUNCTIONS AND RESPONSIBILITIES OF THE COUNCIL:

THE FUNCTIONS VESTED IN THE COUNCIL OF ECONOMIC ADVISERS BY SECTION 4 (B) OF THE EMPLOYMENT ACT OF 1946 (60 STAT. 24), AND SO MUCH OF THE FUNCTIONS VESTED IN THE COUNCIL BY SECTION 4 (C) OF THAT ACT AS CONSISTS OF REPORTING TO THE PRESIDENT WITH RESPECT TO ANY FUNCTION OF THE COUNCIL UNDER THE SAID SECTION 4 (C), ARE HEREBY TRANSFERRED TO THE CHAIRMAN OF THE COUNCIL OF ECONOMIC ADVISERS. THE POSITION OF VICE CHAIRMAN OF THE COUNCIL OF ECONOMIC ADVISERS, PROVIDED FOR IN THE LAST SENTENCE OF SECTION 4 (A) OF THE SAID ACT, IS HEREBY ABOLISHED.

THE ACTUAL EFFECT OF THE REORGANIZATION PLAN WAS TO ABOLISH THE POSITION OF VICE CHAIRMAN AND TO VEST THE CHAIRMAN OF THE COUNCIL WITH BROAD AUTHORITY FOR THE GENERAL ADMINISTRATIVE AND MANAGEMENT FUNCTIONS OF THE COUNCIL, INCLUDING THE REPORTING TO THE PRESIDENT ON THE FUNCTIONS OF THE COUNCIL. THE PLAN, AS WE SEE IT, DID NOT AFFECT THE DUTIES AND RESPONSIBILITIES OF THE COUNCIL, IMPOSED UPON IT BY THE ORIGINAL ACT, TO ANALYZE AND INTERPRET ECONOMIC DEVELOPMENTS, TO APPRAISE PROGRAMS AND ACTIVITIES OF THE GOVERNMENT, AND TO FORMULATE AND RECOMMEND NATIONAL ECONOMIC POLICY TO PROMOTE EMPLOYMENT, PRODUCTION, AND PURCHASING POWER UNDER FREE COMPETITIVE ENTERPRISE. THEREFORE, WHILE THE REORGANIZATION PLAN IMPOSES UPON THE CHAIRMAN THE RESPONSIBILITY FOR THE GENERAL ADMINISTRATIVE AND MANAGEMENT FUNCTIONS OF THE COUNCIL, THE DUTIES AND RESPONSIBILITIES OTHERWISE VESTED IN EACH MEMBER OF THE COUNCIL ARE EQUAL UNDER THE STATUTE.

ACCORDINGLY, UNDER THE REORGANIZATION PLAN, THE COUNCIL ITSELF, AND NOT ITS CHAIRMAN, REMAINS THE HEAD OF THE AGENCY WITHIN THE MEANING OF 5 U.S.C. 902--- COMPARE 25 COMP. GEN. 467--- AND THE PAY OF MR. STEWART IS FOR COMPUTING IN ACCORDANCE WITH 5 U.S.C. 84.

THE VOUCHER WHICH, TOGETHER WITH RELATED PAPERS, IS RETURNED HEREWITH, MAY BE CERTIFIED FOR PAYMENT IF OTHERWISE CORRECT.