Disposition of Unpaid Compensation

At the time of his death a Veterans Administration (VA) employee was subject to a wage earners' plan under the Bankruptcy Act. The Bankruptcy Judge issued an order requiring that unpaid compensation due the employee at the time of death be paid to the Trustee of the Plan. The VA also received a claim from his surviving children, seeking the same money. Since there was no waiver of sovereign immunity sufficient to permit enforcement of the order against the United States, and in the face of the competing claim based upon a specific statutorily granted right, VA should dispose of the unpaid compensation as required by law, not as specified by the order of the Bankruptcy Judge.