B-151523, JUN. 28, 1963

B-151523: Jun 28, 1963

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WAS EMPLOYED AS A SUBSTITUTE CARRIER AT PFS-4. WAS CONVERTED TO AN ANNUAL RATE OF $5. HIS ANNUAL ANNUITY OF $864 WAS DEDUCTED FROM THE $5. 438.08 WAS DIVIDED BY 2. 1962 HE WAS CHANGED TO REGULAR CITY CARRIER AT PFS-4. 405 PER ANNUM AND HE WAS PAID AT THE ANNUAL RATE OF $4. SCHARNWEBER WAS PAID $5. 337.21 HE WOULD HAVE RECEIVED IF HIS SALARY HAD NOT BEEN REDUCED BY THE AMOUNT OF HIS ANNUITY. SINCE HIS ANNUITY WAS ONLY $864 AND THE DIFFERENCE BETWEEN THE AMOUNT HE WAS PAID $5. 351.57 AND THE AMOUNT HE WOULD HAVE BEEN PAID AT THE FULL RATE. IS $985.64. HE FEELS THAT HE IS DUE A REFUND OF $121.64. HIS SALARY WAS REDUCED BY MORE THAN HIS ANNUITY. SCHARNWEBER IS ENTITLED TO THE BACK PAY.

B-151523, JUN. 28, 1963

TO MR. LEROY P. AFDEM, AUTHORIZED CERTIFYING OFFICER, POST OFFICE DEPARTMENT:

YOUR LETTER OF MAY 10, 1963, REFERENCE AIR:LPA, REQUESTS OUR DECISION WHETHER YOU MAY CERTIFY FOR PAYMENT THE ENCLOSED VOUCHER FOR $121.64 IN FAVOR OF MR. WALTER C. SCHARNWEBER OF ROCHESTER, MINNESOTA.

YOUR LETTER SETS FORTH THE FACTS IN THE CASE AND YOUR QUESTIONS CONCERNING IT, AS FOLLOWS:

"MR. SCHARNWEBER, A REEMPLOYED ANNUITANT WITH AN ANNUITY OF $864 PER ANNUM, WAS EMPLOYED AS A SUBSTITUTE CARRIER AT PFS-4, STEP-7, $2.63 PER HOUR IN THE ROCHESTER, MINNESOTA POST OFFICE. HIS HOURLY RATE, $2.63 PER HOUR, WAS CONVERTED TO AN ANNUAL RATE OF $5,302.08 BY MULTIPLYING BY ,016; HIS ANNUAL ANNUITY OF $864 WAS DEDUCTED FROM THE $5,302.08 AND THE REMAINDER OF $4,438.08 WAS DIVIDED BY 2,016 TO DETERMINE THE ACTUAL HOURLY RATE OF PAY, $2.20 PER HOUR (SEE 28 COMP. GEN. 693). ON JULY 7, 1962 HE WAS CHANGED TO REGULAR CITY CARRIER AT PFS-4, STEP-7A, $5,405 PER ANNUM AND HE WAS PAID AT THE ANNUAL RATE OF $4,541 ($5,405 LESS $864).

"DURING THE YEAR 1962 MR. SCHARNWEBER WAS PAID $5,351.57 INSTEAD OF THE $6,337.21 HE WOULD HAVE RECEIVED IF HIS SALARY HAD NOT BEEN REDUCED BY THE AMOUNT OF HIS ANNUITY. SINCE HIS ANNUITY WAS ONLY $864 AND THE DIFFERENCE BETWEEN THE AMOUNT HE WAS PAID $5,351.57 AND THE AMOUNT HE WOULD HAVE BEEN PAID AT THE FULL RATE, $6,337.21, IS $985.64, HE FEELS THAT HE IS DUE A REFUND OF $121.64. MR. SCHARNWEBER WORKED MORE THAN 80 HOURS A PAY PERIOD WHILE EMPLOYED AS A SUBSTITUTE. THEREFORE, HIS SALARY WAS REDUCED BY MORE THAN HIS ANNUITY.

"IF MR. SCHARNWEBER IS ENTITLED TO THE BACK PAY, SHOULD WE HAVE PAID HIM AT THE FULL RATE FOR THE HOURS WORKED IN EXCESS OF 80 EACH PAY PERIOD OR SHOULD WE HAVE PAID HIM AT THE FULL RATE FOR ALL HOURS IN EXCESS OF 2,016 DURING THE YEAR?

"MAY THE ATTACHED VOUCHER FOR THE DIFFERENCE BETWEEN THE AMOUNT WITHHELD FROM MR. SCHARNWEBER'S SALARY ($985.64) AND HIS ANNUITY ($864) BE CERTIFIED FOR PAYMENT?

THE DECISION IN 28 COMP. GEN. 693, REFERRED TO BY YOU, CONCERNS PRIMARILY EMPLOYEES HAVING FIXED ANNUAL RATES OF COMPENSATION AND ESTABLISHED TOURS OF DUTY. A SUBSTITUTE POSTAL EMPLOYEE HAS NO FIXED BASIC WORKWEEK. THE STATUTE DOES REQUIRE, HOWEVER, THAT THE HOURLY RATE FOR SUBSTITUTES SHALL BE COMPUTED BY DIVIDING THE PER ANNUM RATES PRESCRIBED IN THE POSTAL FIELD SERVICE SCHEDULE BY 2,016. 39 U.S.C. 3542 (FORMERLY 971 (B) ). IN A CASE WHERE THE HOURS OF DUTY PER PAY PERIOD OF A SUBSTITUTE VARY FROM LESS THAN 80 TO MORE THAN 80, AND THE REDUCED RATE IS PAID BIWEEKLY ONLY FOR 80 HOURS AND LESS DURING A 2,016-HOUR YEAR, THE TOTAL HOURS AT THE REDUCED RATE WOULD AGGREGATE LESS THAN 2,016 IN A YEAR EVEN THOUGH THE EMPLOYEE MAY HAVE WORKED 2,016 HOURS AND AN OVERPAYMENT WOULD RESULT.

THEREFORE, IN ANSWER TO YOUR FIRST QUESTION, MR. SCHARNWEBER IS ENTITLED TO THE FULL HOURLY RATE ONLY FOR THOSE HOURS WORKED IN EXCESS OF 2,016 DURING THE YEAR.

REGARDING YOUR SECOND QUESTION, THE VOUCHER, WHICH IS RETURNED HEREWITH, REPRESENTS A REFUND OF COMPENSATION WITHHELD IN EXCESS OF THAT REQUIRED BY LAW. THEREFORE, IT MAY BE CERTIFIED FOR PAYMENT, IF OTHERWISE CORRECT.