B-148320, MAR. 20, 1962

B-148320: Mar 20, 1962

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LISBONY: REFERENCE IS MADE TO LETTER OF FEBRUARY 21. THE RECORD SHOWS THAT ELIZABETH GREENLEAF LISBONY WAS DESIGNATED BY THE DECEDENT UNDER THE PROVISIONS OF 10 U.S.C. 2771. THE DESIGNATION WAS EXECUTED BY LIEUTENANT LISBONY ON JANUARY 5. REPORTS THAT THERE WAS "NO LATER DESIGNATION OF BENEFICIARY.'. LISBONY CERTAIN DOCUMENTS WERE SENT TO THE NAVY DEPARTMENT SHOWING A DESIGNATION OF A NEW BENEFICIARY.'. WAS FORWARDED HERE BY THE NAVY FOR CONSIDERATION IN CONNECTION WITH YOUR CLAIM. PAYMENT OF THE AMOUNT DUE IN THE SETTLEMENT OF THE ACCOUNTS OF A DECEASED MEMBER OF THE ARMED FORCES IS GOVERNED BY 10 U.S.C. 2771. AN AMOUNT DUE FROM THE ARMED FORCE OF WHICH HE WAS A MEMBER SHALL BE PAID TO THE PERSON HIGHEST ON THE FOLLOWING LIST LIVING ON THE DATE OF DEATH: "/1) BENEFICIARY DESIGNATED BY HIM IN WRITING TO RECEIVE SUCH AN AMOUNT.

B-148320, MAR. 20, 1962

TO MRS. DORRIS S. LISBONY:

REFERENCE IS MADE TO LETTER OF FEBRUARY 21, 1962, FROM MR. RAYMOND E. EHRLICH, ATTORNEY AT LAW, REQUESTING RECONSIDERATION OF SETTLEMENT DATED FEBRUARY 12, 1962, DISALLOWING YOUR CLAIM FOR THE AMOUNT DUE AT DATE OF DEATH IN THE CASE OF YOUR LATE HUSBAND, IRVING R. LISBONY, LIEUTENANT, UNITED STATES NAVY, RETIRED.

THE RECORD SHOWS THAT ELIZABETH GREENLEAF LISBONY WAS DESIGNATED BY THE DECEDENT UNDER THE PROVISIONS OF 10 U.S.C. 2771, AS THE BENEFICIARY TO RECEIVE THE ENTIRE AMOUNT (100 PERCENTUM) OF THE RETIRED PAY DUE AND UNPAID HIM AT THE DATE OF HIS DEATH. THE DESIGNATION WAS EXECUTED BY LIEUTENANT LISBONY ON JANUARY 5, 1956, ON THE FORM PRESCRIBED FOR THAT PURPOSE AND FILED AS PROVIDED IN ACCORDANCE WITH THE REGULATIONS PROMULGATED BY THE SECRETARY OF THE NAVY. THE DEPARTMENT OF THE NAVY IN LETTER OF JANUARY 29, 1962, REPORTS THAT THERE WAS "NO LATER DESIGNATION OF BENEFICIARY.'

MR. EHRLICH STATES THAT "AFTER THE DEATH OF LIEUT. LISBONY CERTAIN DOCUMENTS WERE SENT TO THE NAVY DEPARTMENT SHOWING A DESIGNATION OF A NEW BENEFICIARY.' ON SEPTEMBER 15, 1961, MR. EHRLICH SENT TO THE U.S. NAVY FINANCE CENTER, CLEVELAND, OHIO, A THERMOFAX COPY OF A LETTER ADDRESSED TO THE CHIEF OF NAVAL PERSONNEL DATED JUNE 8, 1961 (THE ORIGINAL APPARENTLY SIGNED BY THE DECEDENT), REQUESTING A CHANGE IN THE DESIGNATION OF BENEFICIARY FROM ELIZABETH G. LISBONY TO YOU. THE COPY OF THE LETTER OF JUNE 8, 1961, WAS FORWARDED HERE BY THE NAVY FOR CONSIDERATION IN CONNECTION WITH YOUR CLAIM.

PAYMENT OF THE AMOUNT DUE IN THE SETTLEMENT OF THE ACCOUNTS OF A DECEASED MEMBER OF THE ARMED FORCES IS GOVERNED BY 10 U.S.C. 2771, WHICH, EFFECTIVE JANUARY 1, 1956, PROVIDES, IN PERTINENT PART:

"SEC. 2771.

"/A) IN THE SETTLEMENT OF THE ACCOUNTS OF A DECEASED MEMBER OF THE ARMED FORCES WHO DIES AFTER DECEMBER 31, 1955, AN AMOUNT DUE FROM THE ARMED FORCE OF WHICH HE WAS A MEMBER SHALL BE PAID TO THE PERSON HIGHEST ON THE FOLLOWING LIST LIVING ON THE DATE OF DEATH:

"/1) BENEFICIARY DESIGNATED BY HIM IN WRITING TO RECEIVE SUCH AN AMOUNT, IF THE DESIGNATION IS RECEIVED, BEFORE THE DECEASED MEMBER'S DEATH, AT THE PLACE NAMED IN REGULATIONS TO BE PRESCRIBED BY THE SECRETARY CONCERNED.

"/2) SURVIVING SPOUSE. * * *"

IT APPEARS FROM THE LETTER OF JUNE 8, 1961, THAT THE DECEDENT INTENDED TO MAKE A CHANGE IN HIS DESIGNATED BENEFICIARY. HOWEVER, THE RECORD FAILS TO ESTABLISH THAT SUCH NEW DESIGNATION WAS RECEIVED BY THE DEPARTMENT OF THE NAVY "BEFORE THE DECEASED MEMBER'S DEATH.' SINCE THE LAW GIVES EFFECT TO A DESIGNATION ONLY IF RECEIVED IN WRITING AT THE PROPER PLACE, BEFORE THE MEMBER'S DEATH, THE CORRESPONDENCE ADDRESSED TO THE NAVY BY MR. EHRLICH AFTER LIEUTENANT LISBONY'S DEATH DID NOT EFFECT A CHANGE IN THE PRIOR DESIGNATION PROPERLY MADE BY HIM AND FILED IN ACCORDANCE WITH THE LAW AND REGULATIONS. ACCORDINGLY, THE DISALLOWANCE OF YOUR CLAIM IS SUSTAINED.

WITH REFERENCE TO THE REQUEST FOR A FORM W-2 FOR INCOME TAX PURPOSES, YOU ARE ADVISED THAT YOUR ..END :