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B-138302, SEP. 24, 1959

B-138302 Sep 24, 1959
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SINCE THE FACTS INVOLVED AND THE LEGAL AUTHORITY SUPPORTING THE DEDUCTIONS WERE SET FORTH IN OUR DECISION B 138302. A FULL DISCUSSION OF THE MATTER AT THIS TIME IS UNNECESSARY. EXECUTIVE ORDER NO. 10000 IS NOT TO BE CONSIDERED PART OF BASIC COMPENSATION FOR THE PURPOSE OF DETERMINING AN EMPLOYEE'S HIGHEST PREVIOUS RATE UNDER FEDERAL EMPLOYEES PAY REGULATIONS. IT IS CONSIDERED BASIC COMPENSATION ONLY AT THE LOCATION OF THE OVERSEAS POSITION AND CANNOT BE CONSIDERED SUCH FOR THE PURPOSE OF SALARY DETERMINATION AT ANOTHER STATION. 24 COMP. WHICH IS CITED AS AUTHORITY FOR THIS HOLDING. PERMIT THE USE OF YOUR PREVIOUS SALARY PLUS 25 PERCENT DIFFERENTIAL UPON YOUR REEMPLOYMENT AT ANOTHER FOREIGN POST WOULD BE INCONSISTENT WITH THE PURPOSE FOR WHICH THE DIFFERENTIAL WAS AUTHORIZED AND WOULD BE INCONSISTENT WITH THE PURPOSE OF THE CIVIL SERVICE COMMISSION REGULATIONS ALLOWING THE CONSIDERATION OF A PREVIOUS RATE IN DETERMINING THE RATE OF PAY UPON REEMPLOYMENT.

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B-138302, SEP. 24, 1959

TO MISS EUNICE C. MADISON:

ON SEPTEMBER 8, 1959, YOU RETURNED CHECK NO. 15,572,384 FOR $1,022.21, THE AMOUNT DUE YOU AS A RESULT OF EIGHT SALARY CHECKS YOU REFUSED TO ACCEPT BETWEEN SEPTEMBER 26, 1954, AND JANUARY 15, 1955, LESS INVOLUNTARY DEDUCTIONS FOR OVERPAYMENTS MADE IN CONNECTION WITH AN ILLEGAL RATE OF PAY ESTABLISHED AT THE TIME OF YOUR REEMPLOYMENT IN MAY 1951. YOU ENCLOSED A DECLARATION OF THE SAME DATE WHICH EXPLAINS WHY YOU CONTINUE TO REFUSE THE CHECK AND SUMMARIZES THE LENGTHY ARGUMENTS PUT FORWARD IN YOUR LETTER OF DECEMBER 10, 1958, REGARDING THE INVOLUNTARY DEDUCTIONS. SINCE THE FACTS INVOLVED AND THE LEGAL AUTHORITY SUPPORTING THE DEDUCTIONS WERE SET FORTH IN OUR DECISION B 138302, FEBRUARY 12, 1959 (COPY ENCLOSED), A FULL DISCUSSION OF THE MATTER AT THIS TIME IS UNNECESSARY.

WE HELD IN THAT DECISION THAT THE 25 PERCENT DIFFERENTIAL PAID TO OVERSEAS EMPLOYEES BEFORE THE EFFECTIVE DATE OF SECTION 207 OF THE INDEPENDENT OFFICES APPROPRIATION ACT OF 1949, AND EXECUTIVE ORDER NO. 10000 IS NOT TO BE CONSIDERED PART OF BASIC COMPENSATION FOR THE PURPOSE OF DETERMINING AN EMPLOYEE'S HIGHEST PREVIOUS RATE UNDER FEDERAL EMPLOYEES PAY REGULATIONS, SECTION 25.103/B) (1). ALTHOUGH 25 PERCENT OVERSEAS DIFFERENTIAL HAS BEEN DETERMINED TO BE BASIC COMPENSATION IN CERTAIN INSTANCES, SEE 22 COMP. GEN. 769, IT IS CONSIDERED BASIC COMPENSATION ONLY AT THE LOCATION OF THE OVERSEAS POSITION AND CANNOT BE CONSIDERED SUCH FOR THE PURPOSE OF SALARY DETERMINATION AT ANOTHER STATION. 24 COMP. GEN. 181, WHICH IS CITED AS AUTHORITY FOR THIS HOLDING, INVOLVED A TRANSFER OF EMPLOYEES BETWEEN A TERRITORIAL DUTY STATION AND A DUTY STATION IN THE UNITED STATES. HOWEVER, THE REASONING CONTAINED THEREIN APPLIES EQUALLY TO THE DETERMINATION OF YOUR HIGHEST PREVIOUS RATE UPON REEMPLOYMENT. PERMIT THE USE OF YOUR PREVIOUS SALARY PLUS 25 PERCENT DIFFERENTIAL UPON YOUR REEMPLOYMENT AT ANOTHER FOREIGN POST WOULD BE INCONSISTENT WITH THE PURPOSE FOR WHICH THE DIFFERENTIAL WAS AUTHORIZED AND WOULD BE INCONSISTENT WITH THE PURPOSE OF THE CIVIL SERVICE COMMISSION REGULATIONS ALLOWING THE CONSIDERATION OF A PREVIOUS RATE IN DETERMINING THE RATE OF PAY UPON REEMPLOYMENT.

THEREFORE, YOUR CLAIM FOR AMOUNTS IN EXCESS OF $1,022.21 MUST BE DISALLOWED, AND AS YOU HAVE REPEATEDLY REFUSED TO ACCEPT PAYMENT OF THIS AMOUNT, CHECK NO. 15,572,384 WILL BE RETAINED IN OUR OFFICE PENDING A DETERMINATION BY YOU AS TO THE COURSE OF ACTION YOU PROPOSE TO PURSUE.

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