B-154605, SEP. 4, 1964

B-154605: Sep 4, 1964

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USN: REFERENCE IS MADE TO YOUR LETTER OF JUNE 9. RETIRED MEMBERS WHO WERE TRANSFERRED TO THE FLEET RESERVE PRIOR TO OCTOBER 1. EACH OF THE ABOVE-NAMED MEMBERS WAS LAST RELEASED FROM ACTIVE DUTY IN 1952 OR 1953 WITH A TOTAL OF MORE THAN 21 1/2 BUT LESS THAN 22 YEARS OF ACTUAL ACTIVE SERVICE OR SERVICE CREDITABLE FOR BASIC PAY PURPOSES UNDER 37 U.S.C. 233. IT IS REPORTED THAT THEIR RETIRED PAY ACCOUNTS HAVE BEEN ADJUSTED ADMINISTRATIVELY FROM OCTOBER 1. THE ADJUSTMENT WAS COMPUTED ON 22 YEARS BOTH FOR BASIC PAY AND FOR PERCENTAGE MULTIPLE WHEREAS IN THE CLAIMS DIVISION CERTIFICATES COVERING THE PERIODS PRIOR TO THE ADMINISTRATIVE ADJUSTMENTS. THE USE OF 22 YEARS IN DETERMINING THE PROPER RATE OF BASIC PAY UNDER THE CAREER COMPENSATION ACT WAS DENIED FOR THE STATED REASON THAT A FRACTION OF A YEAR OF SIX MONTHS OR MORE WAS CONSIDERED CREDITABLE ONLY FOR PERCENTAGE MULTIPLE PURPOSES UNDER THE PROVISIONS OF SECTION 516 OF THE 1949 LAW.

B-154605, SEP. 4, 1964

TO COMMANDER M. L. CONNER, SC, USN:

REFERENCE IS MADE TO YOUR LETTER OF JUNE 9, 1964, XAA:39:38, RELATIVE TO SETTLEMENT CERTIFICATES RECENTLY ISSUED BY OUR CLAIMS DIVISION IN THE CASE OF JAMES A. BARKLEY, 385 57 82, MOSES H. DESONIE, 204 37 32, AND JOHN G. KATZMAN, 336 60 14, RETIRED MEMBERS WHO WERE TRANSFERRED TO THE FLEET RESERVE PRIOR TO OCTOBER 1, 1949, AND SERVED ON ACTIVE DUTY AFTER THAT DATE.

EACH OF THE ABOVE-NAMED MEMBERS WAS LAST RELEASED FROM ACTIVE DUTY IN 1952 OR 1953 WITH A TOTAL OF MORE THAN 21 1/2 BUT LESS THAN 22 YEARS OF ACTUAL ACTIVE SERVICE OR SERVICE CREDITABLE FOR BASIC PAY PURPOSES UNDER 37 U.S.C. 233. IT IS REPORTED THAT THEIR RETIRED PAY ACCOUNTS HAVE BEEN ADJUSTED ADMINISTRATIVELY FROM OCTOBER 1, 1963, IN THE CASES OF BARKLEY AND DESONIE AND FROM JUNE 1, 1958, IN THE CASE OF KATZMAN, TO REFLECT CREDIT FOR THE ACTIVE SERVICE PERFORMED AFTER TRANSFER TO THE FLEET RESERVE IN ACCORDANCE WITH THE PROVISIONS OF SECTION 516 OF THE CAREER COMPENSATION ACT OF 1949, APPROVED OCTOBER 12, 1949, CH. 681, 63 STAT. 832. THE ADJUSTMENT WAS COMPUTED ON 22 YEARS BOTH FOR BASIC PAY AND FOR PERCENTAGE MULTIPLE WHEREAS IN THE CLAIMS DIVISION CERTIFICATES COVERING THE PERIODS PRIOR TO THE ADMINISTRATIVE ADJUSTMENTS, THE USE OF 22 YEARS IN DETERMINING THE PROPER RATE OF BASIC PAY UNDER THE CAREER COMPENSATION ACT WAS DENIED FOR THE STATED REASON THAT A FRACTION OF A YEAR OF SIX MONTHS OR MORE WAS CONSIDERED CREDITABLE ONLY FOR PERCENTAGE MULTIPLE PURPOSES UNDER THE PROVISIONS OF SECTION 516 OF THE 1949 LAW.

IN 37 COMP. GEN. 57 WE HELD THAT A MEMBER WHO HAD BEEN TRANSFERRED TO THE FLEET RESERVE ON JULY 26, 1950, AND ELECTED TO HAVE HIS RETAINER PAY COMPUTED UNDER SECTION 204 OF THE NAVAL RESERVE ACT OF 1938, APPROVED JUNE 25, 1938, CH. 690, 52 STAT. 1179, AS AMENDED BY THE ACT OF AUGUST 10, 1946, CH. 952, 60 STAT. 993, AND WHO THEREAFTER SERVED ON ACTIVE DUTY UNTIL RELEASED ON JUNE 20, 1953, WAS ENTITLED UNDER SECTION 516 TO HAVE HIS RETAINER PAY RECOMPUTED ON THE TOTAL ACTIVE SERVICE WITH WHICH HE WAS CREDITED AT THE TIME OF RELEASE FROM ACTIVE DUTY WITH A FRACTION OF A YEAR OF SIX MONTHS OR MORE COUNTED AS A FULL YEAR IN DETERMINING BOTH HIS RATE OF BASIC PAY AND HIS PERCENTAGE MULTIPLE FACTOR.

THE THREE MEMBERS NOW UNDER CONSIDERATION WERE TRANSFERRED TO THE FLEET RESERVE PRIOR TO OCTOBER 1, 1949, AND EFFECTIVE THAT DATE, THEIR RETAINER OR RETIRED PAY WAS GOVERNED BY SECTION 511 OF THE CAREER COMPENSATION ACT, WHICH AUTHORIZED COUNTING A FRACTION OF A YEAR OF SIX MONTHS OR MORE AS A FULL YEAR FOR PERCENTAGE MULTIPLE PURPOSES ONLY. BY VIRTUE OF THEIR ACTIVE SERVICE AFTER SEPTEMBER 30, 1949, HOWEVER, THEIR RETAINER OR RETIRED PAY WAS REMOVED FROM OPERATION OF SECTION 511 AND FROM THE RESPECTIVE DATES OF THEIR RELEASES THEY BECAME ENTITLED TO HAVE THEIR RETAINER OR RETIRED PAY COMPUTED UNDER SECTION 516 AS SPECIFIED IN 37 COMP. GEN. 57. ACCORDINGLY THERE IS NO REASON TO QUESTION THE ADMINISTRATIVE ADJUSTMENTS PREVIOUSLY MADE BY YOU. SETTLEMENT VOUCHERS ALLOWING ADJUSTMENTS FOR THE EARLIER PERIODS WILL BE PROCESSED BY OUR CLAIMS DIVISION FOR PAYMENT IN THE NEAR FUTURE, IF OTHERWISE CORRECT.