B-172788, JUN 3, 1971

B-172788: Jun 3, 1971

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CLAIMANT'S ENTITLEMENT TO SEVERANCE PAY IS GOVERNED BY USARPAC LETTER. BECAUSE THE SEPARATION WAS NOT INCIDENT TO A REDUCTION IN FORCE OR DISABILITY. THERE IS NO BASIS FOR ALLOWING THE CLAIM. ROSAL: THIS WILL REFER TO YOUR LETTER OF MARCH 26. THE FACTUAL CIRCUMSTANCES SUPPORTING YOUR CLAIM FOR SEVERANCE PAY ARE STATED IN THE SETTLEMENT CERTIFICATE OF FEBRUARY 12. THE GENERAL STATUTORY PROVISIONS REGARDING SEVERANCE PAY ARE CONTAINED IN TITLE 5. THE CANAL ZONE ARE EXPRESSLY EXCLUDED FROM COVERAGE UNDER THOSE PROVISIONS. PARAGRAPH 2E OF THAT LETTER STATES: "SEVERANCE PAY IS GRANTED ONLY WHEN SEPARATED BY REDUCTION IN FORCE (RIF). SEVERANCE PAY SHALL BE GRANTED ONLY WHEN SUCH RIF IS NOT RELATED TO THE DISESTABLISHMENT OF AN ACTIVITY OR COMMAND.".

B-172788, JUN 3, 1971

CIVILIAN EMPLOYEE - SEVERANCE PAY SUSTAINING PRIOR DECISION WHICH DISALLOWED CLAIM FOR SEVERANCE PAY INCIDENT TO INVOLUNTARY RESIGNATION FROM CIVILIAN EMPLOYMENT WITH THE DEPARTMENT OF THE ARMY. CLAIMANT'S ENTITLEMENT TO SEVERANCE PAY IS GOVERNED BY USARPAC LETTER, DECEMBER 12, 1964 ON THE SUBJECT OF "SEVERANCE PAY PLAN FOR FILIPINOS EMPLOYED OUTSIDE OF PHILIPPINES." BECAUSE THE SEPARATION WAS NOT INCIDENT TO A REDUCTION IN FORCE OR DISABILITY, AS REQUIRED UNDER THE SUBJECT PLAN, THERE IS NO BASIS FOR ALLOWING THE CLAIM.

TO MR. FELIPE L. ROSAL:

THIS WILL REFER TO YOUR LETTER OF MARCH 26, 1971, TO THE DIRECTOR OF OUR CLAIMS DIVISION IN WHICH YOU REQUEST RECONSIDERATION OF ITS SETTLEMENT DISALLOWING YOUR CLAIM FOR SEVERANCE PAY BASED UPON YOUR INVOLUNTARY RESIGNATION FROM CIVILIAN EMPLOYMENT WITH THE DEPARTMENT OF THE ARMY, OKINAWA DISTRICT, CORPS OF ENGINEERS.

THE FACTUAL CIRCUMSTANCES SUPPORTING YOUR CLAIM FOR SEVERANCE PAY ARE STATED IN THE SETTLEMENT CERTIFICATE OF FEBRUARY 12, 1971, AND NEED NOT BE REPEATED HERE. THE GENERAL STATUTORY PROVISIONS REGARDING SEVERANCE PAY ARE CONTAINED IN TITLE 5, SECTION 5595, OF THE UNITED STATES CODE. ALIEN EMPLOYEES WHO OCCUPY POSITIONS OUTSIDE THE SEVERAL STATES, THE DISTRICT OF COLUMBIA, AND THE CANAL ZONE ARE EXPRESSLY EXCLUDED FROM COVERAGE UNDER THOSE PROVISIONS.

YOUR ENTITLEMENT TO SEVERANCE PAY WOULD THEREFORE BE GOVERNED BY THE USARPAC LETTER DATED DECEMBER 12, 1964, ON THE SUBJECT OF A "SEVERANCE PAY PLAN FOR FILIPINOS EMPLOYED OUTSIDE OF PHILIPPINES." PARAGRAPH 2E OF THAT LETTER STATES:

"SEVERANCE PAY IS GRANTED ONLY WHEN SEPARATED BY REDUCTION IN FORCE (RIF), DISABILITY, OR DEATH, EXCEPT THAT IN REDUCTION IN FORCE CASES, SEVERANCE PAY SHALL BE GRANTED ONLY WHEN SUCH RIF IS NOT RELATED TO THE DISESTABLISHMENT OF AN ACTIVITY OR COMMAND." ALSO, PARAGRAPH 2J OF SUCH LETTER INDICATES THAT SEVERANCE PAY IS APPROPRIATE WHEN AN EMPLOYEE RESIGNS AFTER RECEIVING A REDUCTION-IN-FORCE NOTICE.

SINCE YOUR SEPARATION DOES NOT APPEAR TO HAVE BEEN INCIDENT TO A REDUCTION IN FORCE OR DISABILITY THERE IS NO BASIS FOR ALLOWING SEVERANCE PAY UNDER THE SUBJECT FILIPINO PAY PLAN. THIS CONCLUSION IS NOT ALTERED EITHER BY THE INVOLUNTARINESS OR THE VOLUNTARINESS OF YOUR RESIGNATION.

ACCORDINGLY, THE DISALLOWANCE OF YOUR CLAIM MUST BE SUSTAINED.