B-171832, FEB 24, 1971

B-171832, FEB 24, 1971

MUSTERING-OUT PAY DENIAL OF CLAIM FOR MUSTERING-OUT PAY BELIEVED DUE INCIDENT TO DISCHARGE FROM THE PHILIPPINE SCOUTS ON BASIS THAT CLAIM NOT ASSERTED WITHIN 10- YEARS FROM THE DATE IT ACCRUED IS BARRED BY THE ACT OF OCTOBER 9, 1940, 31 U.S.C. 71A.

TO MR. EMANUEL R. AYCARDO:

FURTHER REFERENCE IS MADE TO YOUR LETTER DATED OCTOBER 13, 1970, ADDRESSED TO THE UNITED STATES ARMY FINANCE CENTER, INDIANAPOLIS, INDIANA, WHICH WAS FORWARDED TO OUR OFFICE FOR REPLY, CONCERNING YOUR CLAIM FOR MUSTERING-OUT PAY IN THE AMOUNT OF $3,600 BELIEVED DUE INCIDENT TO YOUR DISCHARGE FROM THE PHILIPPINE SCOUTS IN MARCH 1949.

OUR FILE SHOWS THAT THIS MATTER WAS THE SUBJECT OF LETTERS FROM OUR CLAIMS DIVISION DATED NOVEMBER 26, 1962, AND JANUARY 8, 1963, IN WHICH YOU WERE ADVISED THAT CONSIDERATION OF YOUR CLAIM FOR SUCH PAY WAS BARRED BY THE ACT OF OCTOBER 9, 1940, CH. 788, 54 STAT. 1061, 31 U.S.C. 71A. THAT ACT PROVIDES IN PERTINENT PART:

"(1) EVERY CLAIM OR DEMAND *** AGAINST THE UNITED STATES COGNIZABLE BY THE GENERAL ACCOUNTING OFFICE *** SHALL BE FOREVER BARRED UNLESS SUCH CLAIM *** SHALL BE RECEIVED IN SAID OFFICE WITHIN TEN FULL YEARS AFTER THE DATE SUCH CLAIM FIRST ACCRUED *** ."

IN CONNECTION WITH THE ABOVE-QUOTED ACT, SECTION 305 OF THE ACT OF JUNE 10, 1921, CH. 18, 42 STAT. 24, 31 U.S.C. 71, PROVIDES THAT ALL CLAIMS AGAINST THE UNITED STATES SHALL BE ADJUSTED AND SETTLED IN THIS OFFICE (GENERAL ACCOUNTING OFFICE).

IN SUPPORT OF YOUR CLAIM FOR MUSTERING-OUT PAY YOU CONTEND THAT SUCH PAY IS AUTHORIZED BY ACT NO. 263, 88TH U.S. CONGRESS, DATED 9 JANUARY 1963, AND "DULY APPROVED 30 SEPTEMBER 1965M." YOU ALSO REFER TO THE PROVISIONS OF "PARAGRAPH 311-322 OF TM 502."

WE ARE UNABLE TO IDENTIFY THE LAW TO WHICH YOU REFER. NEITHER PUBLIC LAW 88-263 (WHICH WAS APPROVED JANUARY 31, 1964), NOR ANY LAW ENACTED ON SEPTEMBER 30, 1965, IN ANY WAY RELATES TO MUSTERING-OUT PAY. NO LAW WAS ENACTED OR APPROVED ON JANUARY 9, 1963.

THE PROVISIONS OF LAW GOVERNING MUSTERING-OUT PAY AT THE TIME YOU WERE DISCHARGED FROM THE PHILIPPINE SCOUTS WERE CONTAINED IN THE MUSTERING-OUT PAYMENT ACT OF 1944, CH. 9, 58 STAT. 8, AS AMENDED, 38 U.S.C. 691, ET SEQ. (1946 ED.). APPLICABLE REGULATIONS ISSUED BY THE DEPARTMENT OF THE ARMY UNDER AUTHORITY OF THAT ACT ARE CONTAINED IN PARAGRAPHS 313-322, T.M. 14- 502. CLAIMS FOR MUSTERING-OUT PAY UNDER THOSE PROVISIONS ARE SUBJECT TO 10-YEAR LIMITATION IMPOSED BY THE ACT OF OCTOBER 9, 1940, WHICH PRECLUDES US FROM TAKING ANY ACTION ON YOUR CLAIM.

SECTION 2(A)(1) OF THE 1944 ACT PROVIDED FOR THE MAXIMUM PAYMENT OF $300 TO PERSONS WHO SERVED 60 DAYS OR MORE AND SERVED OUTSIDE THE CONTINENTAL LIMITS OF THE UNITED STATES OR IN ALASKA. IN CONNECTION WITH THIS ACT, TITLE II OF THE ACT OF MAY 27, 1946, CH. 271, 60 STAT. 223, PROVIDED THAT THE MUSTERING-OUT PAYMENT ACT OF 1944 SHOULD BE DEEMED APPLICABLE TO PERSONS WHO PERFORMED SERVICES IN THE PHILIPPINE SCOUTS UNDER SECTION 14 OF THE ACT OF OCTOBER 6, 1945, CH. 393, 59 STAT. 543, BUT PAYMENT WAS TO BE MADE AT THE RATE OF ONE PHILIPPINE PESO FOR EACH DOLLAR AUTHORIZED BY THE 1944 ACT. IN OTHER WORDS, UNDER THE PROVISIONS OF THOSE LAWS, THE MAXIMUM AMOUNT THAT COULD BE PAID AS MUSTERING-OUT PAY TO A PHILIPPINE SCOUT UPON DISCHARGE, EVEN THOUGH HE MAY HAVE SERVED MORE THAN 60 DAYS, INCLUDING SERVICE OUTSIDE THE PHILIPPINES ON OR AFTER OCTOBER 6, 1945, WAS 300 PESOS.

IT APPEARS THAT THE RATE OF EXCHANGE ON THE CONVERSION FROM DOLLARS TO PESOS AT THE TIME OF YOUR DISCHARGE WAS TWO PESOS FOR EACH DOLLAR. SINCE YOU WERE ENTITLED TO 300 PESOS, YOU WERE TO RECEIVE THAT AMOUNT, OR ITS EQUIVALENT IN DOLLARS ($150). IN YOUR LETTER TO THE U.S. ARMY FINANCE CENTER, DATED OCTOBER 16, 1962, YOU SAY YOU RECEIVED $150 AT THE TIME OF YOUR DISCHARGE AS MUSTERING-OUT PAY.

ACCORDINGLY, ASIDE FROM THE APPLICABILITY OF THE BARRING ACT TO YOUR SITUATION, SINCE YOU INDICATE HAVING RECEIVED THE MAXIMUM AMOUNT OF MUSTERING-OUT PAY PERMITTED BY LAW UPON YOUR DISCHARGE FROM THE PHILIPPINE SCOUTS IN 1949, THERE WOULD BE NO AUTHORITY FOR THE PAYMENT OF YOUR CLAIM IN ANY EVENT.