B-147895, JAN. 25, 1962

B-147895, JAN. 25, 1962

TO MR. WALTER J. REZNICEK:

ON DECEMBER 30, 1961, YOU REQUESTED REVIEW OF OUR OFFICE SETTLEMENTS OF AUGUST 15 AND OCTOBER 18, 1961, WHICH ALLOWED YOU THE NET AMOUNTS OF $421.63 AND $28.80, RESPECTIVELY. THOSE AMOUNTS WERE ALLOWED FOR ANNUAL LEAVE AND LUMP SUM LEAVE IN CONNECTION WITH SEPARATION BY RETIREMENT FROM SERVICE WITH THE GENERAL SERVICES ADMINISTRATION.

THE RECORD BEFORE US SHOWS THAT ALTHOUGH YOU SHOULD HAVE BEEN SEPARATED BY RETIREMENT ON SEPTEMBER 8, 1960, YOUR REGULAR COMPENSATION WAS PAID FOR THE PAY PERIODS ENDING SEPTEMBER 17 AND OCTOBER 1. AT THAT POINT PAYMENT OF REGULAR COMPENSATION WAS DISCONTINUED AND THE AMOUNT PAID YOU FOR SERVICE AFTER SEPTEMBER 8 WAS DEDUCTED FROM LUMP SUM LEAVE PAYMENT YOU SUBSEQUENTLY RECEIVED FROM THE GENERAL SERVICES ADMINISTRATION. PURSUANT TO OUR SETTLEMENT OF AUGUST 15, 1961, AND THE ACTION OF THE GENERAL SERVICES ADMINISTRATION, THE DATE OF YOUR SEPARATION WAS CHANGED FROM SEPTEMBER 8 TO OCTOBER 3, 1960, TO ALLOW YOU THE BENEFIT OF THE ANNUAL LEAVE YOU HAD ACCRUED DURING THE CURRENT LEAVE YEAR WHICH WAS NOT INCLUDED IN THE LUMP SUM LEAVE PAYMENT YOU RECEIVED FROM THE AGENCY.

OUR SETTLEMENT OF OCTOBER 18, 1961, ALLOWED PAYMENT FOR ONE DAY ADDITIONAL LUMP SUM LEAVE SINCE THE NEW RETIREMENT DATE EXTENDED THE PERIOD COVERED BY SUCH PAYMENT TO INCLUDE AN ADDITIONAL HOLIDAY.

YOUR PRESENT REQUEST FOR REVIEW IS BASED UPON YOUR BELIEF THAT YOU HAVE MADE DUPLICATE PAYMENTS FOR FEDERAL EMPLOYEES GROUP LIFE INSURANCE, FEDERAL EMPLOYEES HEALTH BENEFITS, U.S. SAVINGS BOND DEDUCTIONS, AND FEDERAL AND NEW YORK STATE WITHHOLDING TAXES.

IN ORDER TO ILLUSTRATE THE EXACT PAYMENTS AND DEDUCTIONS MADE FOR THE PERIOD IN QUESTION A RECOMPUTATION OF THE PAYMENTS TO YOU AND THE DEDUCTIONS MADE FROM THE GROSS AMOUNT DUE YOU FROM SEPTEMBER 4, 1960, TO THE END OF THE PERIOD COVERED BY YOUR LUMP SUM LEAVE IS SET OUT BELOW:

CHART

PAYMENTS MADE $ 211.20 - PAY CHECK FOR PAY PERIOD ENDING 9-17-60

211.20 - PAY CHECK FOR PAY PERIOD ENDING 10-1-60

152.54 - LUMP SUM LEAVE PAYMENT PAID BY GSA

676.99 - LUMP SUM LEAVE PAYMENT PAID BY GSA

421.63 - PAID PURSUANT TO GAO SETTLEMENT 8-15-61

28.80 - PAID PURSUANT TO GAO SETTLEMENT 10-18-61 $ 1,702.36 - TOTAL CASH PAYMENTS.

DEDUCTIONS FROM GROSS AMOUNT DUE (FOLLOWING COMPUTATION OF "GROSS AMOUNT DUE" ($2,449.62) ARE EXPLANATIONS OF FIGURES BELOW) $ 47.95 CIVIL SERVICE RETIREMENT

7.50 - FEDERAL EMPLOYEES LIFE INSURANCE

4.22 - FEDERAL EMPLOYEES HEALTH BENEFITS

75.00 - U.S. SAVINGS BONDS

434.19 - U.S. WITHHOLDING TAX

140.90 - NEW YORK STATE WITHHOLDING TAX $ 709.76 - TOTAL DEDUCTIONS

GROSS PAID $1,702.36 - PAYMENTS

709.76 - DEDUCTIONS $2,412.12

GROSS AMOUNT DUE - SEPTEMBER 4 THROUGH DECEMBER 9, 1960 (6 HOURS) SEPTEMBER 5 - HOLIDAY

8 HOURS SEPTEMBER 6 - 8 - SICK LEAVE 24 DO. SEPTEMBER 9 - OCTOBER 3 - ANNUAL LEAVE 136 DO. OCTOBER 4 - DECEMBER 9 (6 HOURS) - 374 HOURS LUMP

SUM LEAVE PLUS 16 HOURS FOR HOLIDAYS

WITHIN PERIOD 390 DO.

TOTAL: 558 HOURS 558 HOURS

EQUALS 6 PAY PERIODS

PLUS 78 HOURS $351.20 PER PAY PERIOD TIMES 6 EQUALS $ 2,107.20

4.39 PER HOUR TIMES 78 EQUALS 342.42

TOTAL DUE: $2,449.62

ANALYSIS OF DEDUCTIONS CIVIL SERVICE RETIREMENT DEDUCTIONS MADE: $ 22.83 - CHECK FOR PAY PERIOD ENDING 9-17-60

22.83 - CHECK FOR PAY PERIOD ENDING 10-1-60 $ 45.66 - TOTAL

36.52 - LESS REFUND IN GSA LUMP SUM LEAVE SETTLEMENT $ 9.14 - TOTAL FOR PERIOD 9-4 TO 9-8-60

38.81 - DEDUCTED FROM GAO SETTLEMENT 8-15-61 $ 47.95 - TOTAL PAID FROM 9- 4 TO 10-3-60, FINAL RETIREMENT DATE.

DEDUCTIONS REQUIRED: PAY TABLE REQUIRES DEDUCTION OF $22.83 FROM BI- WEEKLY PAY OF GS-11X--- 6 1/2 PERCENT OF GROSS INCOME. $ 22.83 - FOR PAY PERIOD ENDING 9-17-60

22.83 - FOR PAY PERIOD ENDING 10-1-60

2.29 - FOR 10-3-60 $ 47.95 - TOTAL REQUIRED DEDUCTION FOR RETIREMENT

FEDERAL EMPLOYEES GROUP LIFE INSURANCE DEDUCTIONS MADE: $ 2.50 - CHECK FOR PAY PERIOD ENDING 9-17-60

2.50 - CHECK FOR PAY PERIOD ENDING 10-1-60 $ 5.00 - TOTAL

2.50 - LESS REFUND IN GSA LUMP SUM LEAVE SETTLEMENT $ 2.50 - TOTAL

5.00 - FROM GAO SETTLEMENT OF 8-15-61 $ 7.50 - TOTAL DEDUCTIONS FOR LIFE INSURANCE

DEDUCTIONS REQUIRED: TOTAL DEDUCTION REQUIRED FOR EACH PAY PERIOD DURING WHICH AN EMPLOYEE RECEIVES COMPENSATION. 5 C.F.R. 37.4 $ 2.50 - FOR PAY PERIOD BEGINNING 9-4-60

2.50 - FOR PAY PERIOD BEGINNING 9-18-60

2.50 - FOR PAY PERIOD BEGINNING 10-2-60 $ 7.50 - TOTAL REQUIRED DEDUCTION FOR INSURANCE

HEALTH BENEFITS DEDUCTIONS MADE: $ 2.11 - FROM CHECK FOR PAY PERIOD ENDING

9-17-60

2.11 - FROM CHECK FOR PAY PERIOD ENDING 10-1-1-60 $ 4.22 - TOTAL

2.11 - LESS REFUND IN GSA LUMP SUM LEAVE SETTLEMENT $ 2.11 - TOTAL

2.11 - DEDUCTED FROM GAO SETTLEMENT OF 8-15-61 $ 4.22 - TOTAL HEALTH BENEFITS DEDUCTIONS DEDUCTIONS REQUIRED: $ 2.11 - PAY PERIOD BEGINNING 9-4 -60

2.11 - PAY PERIOD BEGINNING 9-18-60

.00 - PAY PERIOD BEGINNING 10-2-60 $ 4.22 - TOTAL HEALTH BENEFITS DEDUCTIONS REQUIRED

BOND DEDUCTIONS DEDUCTIONS MADE: $ 37.50 - FROM CHECK FOR PAY PERIOD ENDING

9-17-60

37.50 - FROM CHECK FOR PAY PERIOD ENDING10-1-60

37.50 - FROM GSA LUMP SUM LEAVE SETTLEMENT $ 112.50 - TOTAL DEDUCTIONS BONDS ISSUED: $ 37.50 - FOR PAY PERIOD ENDING 9-17-60

37.50 - FOR PAY PERIOD ENDING 10-1-60 $ 75.00 YOU ARE DUE A REFUND OF $37.50 FOR EXCESS BOND DEDUCTIONS. FEDERAL TAX $ 63.22 - FROM CHECK FOR PAY PERIOD ENDING 9-17-60

63.22 - FROM CHECK FOR PAY PERIOD ENDING 10-1-60

193.96 - FROM GSA LUMP SUM LEAVE SETTLEMENT

107.47 - FROM GAO SETTLEMENT OF 8-15-61

6.32 - FROM GAO SETTLEMENT OF 10-17-61 $ 434.19 - TOTAL FEDERAL WITHHOLDING TAX DEDUCTIONS NEW YORK STATE TAX $ 11.84 - FROM CHECK FOR PAY PERIOD ENDING 9-17-60

11.84 - FROM CHECK FOR PAY PERIOD ENDING 10-1-60

95.20 - FROM GSA LUMP SUM LEAVE SETTLEMENT

22.02 - FROM GAO SETTLEMENT OF 8-15-61 $ 140.90 - TOTAL DEDUCTIONS FOR NEW YORK STATE TAX

THE DEDUCTIONS MADE FOR INCOME TAX--- BOTH FEDERAL AND STATE--- ARE DEPOSITED TO YOUR CREDIT FOR ADJUSTMENT AT THE END OF THE TAX YEAR IN QUESTION. AS WE INFORMED YOU IN OUR LETTER OF DECEMBER 21, 1961, THE DEDUCTIONS FOR TAXES MAY NOT BE REFUNDED BY US BUT ARE SUBJECT TO REFUND BY THE TREASURY DEPARTMENT, INTERNAL REVENUE SERVICE AND BY THE STATE OF NEW YORK AS APPROPRIATE, IF IT PROVES THAT THE TOTAL WITHHOLDING TAXES DEDUCTED FROM YOUR PAY WERE IN EXCESS OF YOUR TAX LIABILITY. THE GENERAL SERVICES ADMINISTRATION HAS INFORMALLY ADVISED US THAT WITHHOLDING TAX FORMS, FORM W-2, WERE SENT TO YOU SHOWING THE TAXES DEDUCTED FROM THE SETTLEMENTS HERE IN QUESTION. IF YOU DO NOT HAVE THOSE FORMS THE GENERAL SERVICES ADMINISTRATION WOULD BE THE APPROPRIATE OFFICE TO CONTRACT TO SECURE COPIES.

IN SUMMARY, THE TOTAL OF PAYMENTS TO YOU AND DEDUCTIONS AS OUTLINED ABOVE FROM SEPTEMBER 4, 1960, TO THE END OF THE PERIOD COVERED BY YOUR LUMP SUM LEAVE WAS $2,412.12, WHEREAS THE GROSS AMOUNT DUE YOU FOR THAT PERIOD WAS $2,449.62. THE DIFFERENCE, $37.50, IS ACCOUNTED FOR BY THE FACT THAT $37.50 WAS IMPROPERLY DEDUCTED FROM THE GENERAL SERVICES ADMINISTRATION LUMP SUM LEAVE SETTLEMENT IN THE BELIEF THAT SUCH DEDUCTION WAS NECESSARY TO REIMBURSE THE GOVERNMENT FOR BONDS ALREADY ISSUED.

WE ARE TODAY INSTRUCTING THE CLAIMS DIVISION OF OUR OFFICE TO ISSUE SETTLEMENT TO YOU FOR $37.50. WE TRUST THAT THE ABOVE EXPLANATION AND THE ADDITIONAL PAYMENT WHICH YOU WILL RECEIVE WILL RESOLVE ALL YOUR QUESTIONS REGARDING THE PAYMENTS IN QUESTION.