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B-152588, DEC. 4, 1964

B-152588 Dec 04, 1964
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YOU SAY IN YOUR LETTER: "AN ADJUSTMENT WAS MADE TO REDUCE HIS RETIREMENT ACCOUNT IN THE AMOUNT OF THE CIVIL SERVICE RETIREMENT DEDUCTION ($32.88) WHICH IN EFFECT RETURNED IT TO THE MARITIME ADMINISTRATION APPROPRIATION. THIS ACTION WAS TAKEN IN ACCORDANCE WITH INSTRUCTIONS CONTAINED IN F.P.M. A REPRESENTATIVE OF THE CIVIL SERVICE COMMISSION HAS INFORMALLY ADVISED THAT THE $32.88 WHICH WAS RETURNED TO THE MARITIME ADMINISTRATION DOES NOT PROPERLY BELONG IN THE CIVIL SERVICE RETIREMENT FUND UNLESS THE FORMER ERRONEOUS SALARY RATE WAS LEGALIZED FOR THE PERIOD COVERING THE OVERPAYMENT. * * * ADVICE IS DESIRED AS TO WHETHER IT WAS CORRECT TO CERTIFY TO THE DEPARTMENT OF THE TREASURY (SEE LETTER ATTACHED) ONLY THE NET AMOUNT OF $469.52 WHICH WAS MR.

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B-152588, DEC. 4, 1964

TO MR. RICHARD K. COLLINS, AUTHORIZED CERTIFYING OFFICER, MARITIME ADMINISTRATION:

ON NOVEMBER 18, 1964, YOU REQUESTED ADVICE CONCERNING THE AMOUNT DUE PATRICK J. CLYNE IN ACCORDANCE WITH PRIVATE LAW 88-341.

THE LAW RELIEVED MR. CLYNE OF THE GROSS AMOUNT OF SALARY OVERPAYMENTS MADE TO HIM BY REASON OF HIS HAVING BEEN ADVANCED TO THE FIRST LONGEVITY STEP OF GRADE GS-6 PRIOR TO HIS ATTAINING ELIGIBILITY THEREFOR. YOU SAY IN YOUR LETTER:

"AN ADJUSTMENT WAS MADE TO REDUCE HIS RETIREMENT ACCOUNT IN THE AMOUNT OF THE CIVIL SERVICE RETIREMENT DEDUCTION ($32.88) WHICH IN EFFECT RETURNED IT TO THE MARITIME ADMINISTRATION APPROPRIATION. THIS ACTION WAS TAKEN IN ACCORDANCE WITH INSTRUCTIONS CONTAINED IN F.P.M. SUPPLEMENT 831-1- RETIREMENT, SUBCHAPTER S21-1-ADJUSTING ERRORS. A REPRESENTATIVE OF THE CIVIL SERVICE COMMISSION HAS INFORMALLY ADVISED THAT THE $32.88 WHICH WAS RETURNED TO THE MARITIME ADMINISTRATION DOES NOT PROPERLY BELONG IN THE CIVIL SERVICE RETIREMENT FUND UNLESS THE FORMER ERRONEOUS SALARY RATE WAS LEGALIZED FOR THE PERIOD COVERING THE OVERPAYMENT, * * * ADVICE IS DESIRED AS TO WHETHER IT WAS CORRECT TO CERTIFY TO THE DEPARTMENT OF THE TREASURY (SEE LETTER ATTACHED) ONLY THE NET AMOUNT OF $469.52 WHICH WAS MR. CLYNE'S OUT-OF-POCKET REFUND, OR WHETHER HE IS ENTITLED TO THE GROSS AMOUNT OF OVERPAYMENT WHICH WAS $502.40. IF HE IS ENTITLED ONLY TO THE NET AMOUNT, IT IS ASSUMED NO FURTHER ACTION IS NECESSARY IN CONNECTION WITH THE $32.88 PREVIOUSLY DEDUCTED FROM FOR CIVIL SERVICE RETIREMENT, WHICH WAS RECREDITED TO THE MARITIME ADMINISTRATION APPROPRIATION.'

H.R. 8596 (SUBSEQUENTLY ENACTED AS PRIVATE LAW 88-341) AS ORIGINALLY INTRODUCED WOULD HAVE RELIEVED MR. CLYNE IN THE NET AMOUNT OF $469.52 RATHER THAN THE GROSS AMOUNT ($502.40) OF THE COMPENSATION ERRONEOUSLY PAID MR. CLYNE DURING THE PERIOD IN QUESTION. IN OUR REPORT UPON THAT BILL DATED OCTOBER 21, 1963, TO THE CHAIRMAN, COMMITTEE ON THE JUDICIARY, HOUSE OF REPRESENTATIVES, WE SAID THAT:

"SHOULD YOU DETERMINE THAT ENACTMENT OF THE BILL IS DESIRABLE, YOU MAY WISH TO RELIEVE THE BENEFICIARY OF THE GROSS AMOUNT OF THE OVERPAYMENT RECEIVED BY HIM WHICH WE UNDERSTAND IS $502.40 RATHER THAN THE NET AMOUNT ($469.52) STATED IN THE BILL. UNLESS RELIEF IS GRANTED IN THE GROSS AMOUNT THERE WOULD BE SOME QUESTION WHETHER THERE PROPERLY COULD BE RETAINED TO THE CREDIT OF THE BENEFICIARY IN THE CIVIL SERVICE RETIREMENT AND DISABILITY FUND THE RETIREMENT DEDUCTIONS ($32.88) WHICH WERE WITHHELD FROM THE ERRONEOUS COMPENSATION PAYMENTS AND DEPOSITED IN THAT FUND.'

THE TEXT OF OUR FULL REPORT IS PRINTED IN HOUSE REPORT NO. 1669, 88TH CONGRESS AND SENATE REPORT NO. 1550, 88TH CONGRESS. APPARENTLY AS A RESULT OF THE RECOMMENDATIONS CONTAINED IN OUR REPORT OF OCTOBER 21, QUOTED ABOVE, THE HOUSE COMMITTEE ON THE JUDICIARY AMENDED THE BILL TO PROVIDE RELIEF IN THE FULL AMOUNT OF $502.40. THIS OBVIOUSLY WAS DONE FOR THE PURPOSE OF ALLOWING THE $32.88 TO REMAIN TO THE CREDIT OF MR. CLYNE IN THE CIVIL SERVICE RETIREMENT AND DISABILITY FUND AND FOR PURPOSES OF YOUR SUBMISSION WAS TANTAMOUNT TO LEGALIZING THE SALARY RATE OF $5,540 PER ANNUM FOR THE PERIOD COVERED BY THE RELIEF BILL.

UNDER THE CIRCUMSTANCES OUR VIEW IS THAT THE $32.88 SHOULD BE REDEPOSITED TO THE CREDIT OF MR. ..END :

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