B-140030, DEC. 14, 1959

B-140030: Dec 14, 1959

Additional Materials:

Contact:

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

 

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

THE RAVENNA ARSENAL INFORMED YOU THAT THE NET AMOUNT DUE WAS $599.29. YOUR CLAIM IN THAT AMOUNT WAS DISALLOWED BY THE ARSENAL BECAUSE YOUR OUTSIDE EARNINGS EXCEEDED THE AMOUNT YOU WOULD HAVE EARNED HAD YOU NOT BEEN SEPARATED FOR THE PERIOD INVOLVED. NO AMOUNT WAS FOUND DUE YOU. AS $326.84 FROM WHICH AMOUNT WE WERE REQUIRED TO WITHHOLD AS TAX THE SUM OF $58.83 AND FOR SOCIAL SECURITY PURPOSES THE AMOUNT OF $8.17. THAT AMOUNT WAS PAID TO YOU IN OUR SETTLEMENT OF YOUR CLAIM. THAT ANY PERSON WHOSE EMPLOYMENT IS SO * * * TERMINATED * * * MAY. IF SO * * * THE PERIOD OF SUCH * * * TERMINATION IN AN AMOUNT NOT TO EXCEED THE DIFFERENCE BETWEEN THE AMOUNT SUCH PERSON WOULD NORMALLY HAVE EARNED DURING THE PERIOD OF SUCH * * * TERMINATION.

B-140030, DEC. 14, 1959

TO MR. ROBERT L. PORTER:

ON NOVEMBER 18, 1959, MR. D. R. PELTON WHO ASSISTED YOU IN YOUR CLAIM FOR BACK PAY FOR THE PERIOD OCTOBER 21, 1950 THROUGH MARCH 16, 1952 AS AN EMPLOYEE OF THE DEPARTMENT OF THE ARMY, RAVENNA ARSENAL, APCO, OHIO, REQUESTED THAT WE ADVISE YOU WHY OUR SETTLEMENT, DATED AUGUST 7, 1959 IN YOUR FAVOR, AMOUNTED TO ONLY $326.84--- $259.84 REPRESENTING THE AMOUNT PAID TO YOU--- WHEREAS INFORMATION PREVIOUSLY RECEIVED SHOWED THE AMOUNT DUE AS $599.29.

OUR RECORD SHOWS THAT ON JUNE 9, 1952, THE RAVENNA ARSENAL INFORMED YOU THAT THE NET AMOUNT DUE WAS $599.29. FURTHER, THE RECORD SHOWS THAT ON SEPTEMBER 26, 1952, YOUR CLAIM IN THAT AMOUNT WAS DISALLOWED BY THE ARSENAL BECAUSE YOUR OUTSIDE EARNINGS EXCEEDED THE AMOUNT YOU WOULD HAVE EARNED HAD YOU NOT BEEN SEPARATED FOR THE PERIOD INVOLVED. THUS, NO AMOUNT WAS FOUND DUE YOU. HOWEVER, THE ARSENAL RECOMPUTED YOUR COMPENSATION AND FORWARDED TO US A PAYROLL SHOWING THE GROSS AMOUNT DUE YOU AS BACK PAY UNDER THE PROVISIONS OF THE ACT OF AUGUST 26, 1950 (PUBLIC LAW 733) 5 U.S.C. 22-1, AS $326.84 FROM WHICH AMOUNT WE WERE REQUIRED TO WITHHOLD AS TAX THE SUM OF $58.83 AND FOR SOCIAL SECURITY PURPOSES THE AMOUNT OF $8.17, LEAVING A NET AMOUNT DUE YOU OF $259.84. THAT AMOUNT WAS PAID TO YOU IN OUR SETTLEMENT OF YOUR CLAIM.

THE PERTINENT PROVISIONS OF THE ACT OF AUGUST 26, 1950, WHICH PRESCRIBES THE BACK PAY FORMULA, READS AS FOLLOWS:

"PROVIDED FURTHER, THAT ANY PERSON WHOSE EMPLOYMENT IS SO * * * TERMINATED * * * MAY, IN THE DISCRETION OF THE AGENCY HEAD CONCERNED, BE * * * RESTORED TO DUTY, AND IF SO * * * THE PERIOD OF SUCH * * * TERMINATION IN AN AMOUNT NOT TO EXCEED THE DIFFERENCE BETWEEN THE AMOUNT SUCH PERSON WOULD NORMALLY HAVE EARNED DURING THE PERIOD OF SUCH * * * TERMINATION, AT THE RATE HE WAS RECEIVING ON THE DATE OF * * * TERMINATION * * * AND THE INTERIM NET EARNINGS OF SUCH PERSON * * *.'

YOU WILL SEE FROM THE LANGUAGE OF THE LAW JUST QUOTED, WHICH IS THE LAW THAT GOVERNS HERE, THAT OUR SETTLEMENT ACCORDS WITH THAT LAW. THAT LAW REQUIRES THAT THE AMOUNT IS TO BE COMPUTED UPON THE BASIS OF THE RATE OF COMPENSATION RECEIVED AT THE TIME YOUR SERVICES WERE TERMINATED. WHILE YOU WERE INFORMED BY THE RAVENNA ARSENAL THAT THE AMOUNT WAS $599.29, WE FIND THAT NO BASIS EXISTED FOR THAT COMPUTATION BECAUSE IT TOOK INTO CONSIDERATION INCREASES IN THE RATE OF COMPENSATION WHICH OCCURRED DURING THE PERIOD OF YOUR SEPARATION. THOSE INCREASES ARE PRECLUDED FROM THE COMPUTATION OF THE AMOUNT DUE BY THE PORTION OF THE LAW WHICH IS UNDERSCORED IN THE QUOTATION ABOVE.

FURTHER, YOU MAY BE ADVISED THAT INTEREST ON CLAIMS AGAINST THE UNITED STATES, MAY BE ALLOWED ONLY WHEN PROVIDED FOR BY LAW OR CONTRACT. U.S.C. 2516 (A). NEITHER OF THE REQUIRED CONDITIONS ARE PRESENT IN YOUR CASE. HENCE, THE INTEREST CLAIMED CANNOT BE ALLOWED.

IN VIEW OF THE FOREGOING COMMENTS, OUR SETTLEMENT OF AUGUST 7, 1959 MUST BE SUSTAINED.