B-152774, NOVEMBER 8, 1963, 43 COMP. GEN. 440

B-152774: Nov 8, 1963

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1964 THE LUMP-SUM PAYMENT DUE THE SURVIVING SPOUSE OF A DECEASED CIVILIAN EMPLOYEE FOR A PERIOD OF ANNUAL LEAVE THAT EXTENDS INTO 1964 IS FOR COMPUTATION AT THE INCREASED PER ANNUM RATE OF COMPENSATION PROVIDED BY SCHEDULE II OF THE FEDERAL SALARY REFORM ACT OF 1962. HIS WIDOW IS ENTITLED TO THE INCREASED SALARY RATE OF SCHEDULE II FOR THE PERIOD OF ANNUAL LEAVE EXTENDING BEYOND THE FIRST PAY PERIOD IN 1964. THE ENTIRE LUMP-SUM WAS COMPUTED AT THIS RATE EVEN THOUGH THE PERIOD COVERED EXTENDED INTO 1964. PROVIDES IN PART AS FOLLOWS: THAT WHENEVER ANY CIVILIAN OFFICER OR EMPLOYEE OF THE FEDERAL GOVERNMENT * * * SEPARATED FROM THE SERVICE * * * HE SHALL BE PAID COMPENSATION IN A LUMP SUM FOR ALL ACCUMULATED AND CURRENT ACCRUED ANNUAL OR VACATION LEAVE TO WHICH HE IS ENTITLED UNDER EXISTING LAW.

B-152774, NOVEMBER 8, 1963, 43 COMP. GEN. 440

LEAVES OF ABSENCE - LUMP-SUM PAYMENTS - RATE AT WHICH PAYABLE - PERIOD EXTENDING BEYOND JANUARY 1, 1964 THE LUMP-SUM PAYMENT DUE THE SURVIVING SPOUSE OF A DECEASED CIVILIAN EMPLOYEE FOR A PERIOD OF ANNUAL LEAVE THAT EXTENDS INTO 1964 IS FOR COMPUTATION AT THE INCREASED PER ANNUM RATE OF COMPENSATION PROVIDED BY SCHEDULE II OF THE FEDERAL SALARY REFORM ACT OF 1962, APPROVED OCTOBER 11, 1962 (5 U.S.C. 1171 NOTE), SECTION 1 OF THE ACT OF DECEMBER 21, 1944 (5 U.S.C. 61B) PROVIDING FOR A LUMP-SUM PAYMENT COMPUTED ON THE BASIS OF AN EMPLOYEE'S RIGHTS AT THE TIME OF SEPARATION AND THE FEDERAL SALARY REFORM ACT INCREASING THE BASIC SALARY PROVIDED BY SECTION 603 (B) OF THE CLASSIFICATION ACT OF 1949, AS AMENDED (5 U.S.C. 1113 (B) (, EFFECTIVE ON THE FIRST DAY OF THE FIRST PAY PERIOD BEGINNING ON OR AFTER JANUARY 1, 1964; THEREFORE, THE EMPLOYEE HAVING DIED SEPTEMBER 21, 1963, AFTER THE ENACTMENT OF THE FEDERAL SALARY REFORM ACT, HIS WIDOW IS ENTITLED TO THE INCREASED SALARY RATE OF SCHEDULE II FOR THE PERIOD OF ANNUAL LEAVE EXTENDING BEYOND THE FIRST PAY PERIOD IN 1964, JANUARY 5.

TO JOHN B. REALE, UNITED STATES TREASURY DEPARTMENT, NOVEMBER 8, 1963:

THIS REFERS TO YOUR LETTER OF OCTOBER 24, 1963, REFERENCE FMO:PO, WITH ENCLOSURE, REQUESTING OUR DECISION WHETHER YOU MAY CERTIFY FOR PAYMENT THE ENCLOSED VOUCHER IN FAVOR OF MRS. ELIZABETH V. BORDEN FOR THE AMOUNT OF $67.32 UNDER THE CIRCUMSTANCES RELATED BELOW.

YOU SAY THAT A VOUCHER IN THE AMOUNT OF $5,720.18 FOR 120 HOURS BASIC COMPENSATION, AND 804 HOURS LUMP-SUM ANNUAL LEAVE PAYMENT AT THE PER ANNUM RATE OF $13,340, GRADE 13, STEP 7, HAS BEEN PROCESSED AND FORWARDED TO THE TREASURY DISBURSING OFFICE FOR PAYMENT TO MRS. ELIZABETH V. BORDEN, AS THE SURVIVING SPOUSE OF MR. BORDEN, A FORMER EMPLOYEE OF THE INTERNAL REVENUE SERVICE, WHO DIED SEPTEMBER 21, 1963. THE ENTIRE LUMP-SUM WAS COMPUTED AT THIS RATE EVEN THOUGH THE PERIOD COVERED EXTENDED INTO 1964.

THE FEDERAL SALARY REFORM ACT OF 1962, PUBLIC LAW 87-793, 76 STAT. 841, 5 U.S.C. 1171 NOTE, PROVIDES THAT COMPENSATION SCHEDULE II SHALL BECOME EFFECTIVE WITH THE FIRST PAY PERIOD BEGINNING AFTER JANUARY 1, 1964, THE EFFECTIVE DATE FOR THE INTERNAL REVENUE SERVICE BEING JANUARY 5, 1964.

THE VOUCHER HAS BEEN COMPUTED FOR 204 HOURS FOR THE PERIOD JANUARY 5 THROUGH FEBRUARY 10, 1964, AFTER 4 HOURS, AT THE RATE OF $0.33 PER HOUR; THE DIFFERENCE BETWEEN THE HOURLY RATE OF $6.75, THE PER ANNUM RATE OF $14,035 FOR SCHEDULE II, EFFECTIVE JANUARY 5, 1964, AND THE HOURLY RATE OF $6.42, THE PER ANNUM RATE OF $13,340 FOR SCHEDULE I NOW IN EFFECT.

SECTION 1 OF THE ACT OF DECEMBER 21, 1944, 58 STAT. 845, 5 U.S.C. 61B, AS AMENDED, PROVIDES IN PART AS FOLLOWS:

THAT WHENEVER ANY CIVILIAN OFFICER OR EMPLOYEE OF THE FEDERAL GOVERNMENT * * * SEPARATED FROM THE SERVICE * * * HE SHALL BE PAID COMPENSATION IN A LUMP SUM FOR ALL ACCUMULATED AND CURRENT ACCRUED ANNUAL OR VACATION LEAVE TO WHICH HE IS ENTITLED UNDER EXISTING LAW. SUCH LUMP-SUM PAYMENT SHALL EQUAL THE COMPENSATION THAT SUCH EMPLOYEE WOULD HAVE RECEIVED HAD HE REMAINED IN THE SERVICE UNTIL THE EXPIRATION OF THE PERIOD OF SUCH ANNUAL OR VACATION LEAVE * * *

THE LUMP-SUM PAYMENT IS TO BE COMPUTED ON THE BASIS OF THE EMPLOYEE'S RIGHTS AT THE TIME OF SEPARATION UNDER ALL APPLICABLE LAWS AND REGULATIONS AT THAT TIME WHICH WOULD HAVE AFFECTED HIS COMPENSATION HAD HE REMAINED IN THE SERVICE FOR THE PERIOD COVERED BY HIS LEAVE. SEE 26 COMP. GEN. 102. THE FEDERAL SALARY REFORM ACT OF 1962, PUBLIC LAW 87-793, 76 STAT. 841, INCREASED THE EXISTING RATES OF BASIC COMPENSATION PROVIDED BY SECTION 603 (B) OF THE CLASSIFICATION ACT OF 1949, AS AMENDED, 5 U.S.C. 1113 (B). THAT ACT WAS APPROVED OCTOBER 11, 1962, AND COMPENSATION SCHEDULE II WAS TO BE EFFECTIVE ON THE FIRST DAY OF THE FIRST PAY PERIOD BEGINNING ON OR AFTER JANUARY 1, 1964. HENCE, WITH RESPECT TO EMPLOYEES SEPARATED FROM THE SERVICE AFTER THE DATE OF THE FEDERAL SALARY REFORM ACT OF 1962, AND WHOSE UNUSED ANNUAL LEAVE COVERS A PERIOD EXTENDING BEYOND THE EFFECTIVE DATE OF COMPENSATION SCHEDULE II, IT IS CLEAR THAT, HAD THEY REMAINED IN THE SERVICE UNTIL THE EXPIRATION OF SUCH ANNUAL OR VACATION LEAVE, THEY WOULD HAVE RECEIVED COMPENSATION AT THE INCREASED RATES PROVIDED BY COMPENSATION SCHEDULE II, FOR SO MUCH OF THE PERIOD AS EXTENDS BEYOND THE FIRST PAY PERIOD BEGINNING ON OR AFTER JANUARY 1, 1964. THEREFORE, THE LUMP-SUM PAYMENT OF THE DECEASED EMPLOYEE PROPERLY SHOULD REFLECT THE COMPENSATION CHANGE EFFECTED BY COMPENSATION SCHEDULE II OF THE FEDERAL SALARY REFORM ACT OF 1962, BEGINNING JANUARY 5, 1964.

THE VOUCHER WHICH IS RETURNED HEREWITH MAY BE CERTIFIED FOR PAYMENT IF OTHERWISE CORRECT.