B-75433, SEPTEMBER 24, 1948, 28 COMP. GEN. 198

B-75433: Sep 24, 1948

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PAY - RETAINER - LONGEVITY CREDITS - INCLUSION OF INACTIVE SERVICE ENLISTED MEN OF THE REGULAR NAVY WHO TRANSFER TO THE FLEET RESERVE UNDER THE PROVISIONS OF SECTION 203 OR 204 OF THE NAVAL RESERVE ACT OF 1938 ARE ENTITLED TO COUNT PRIOR INACTIVE SERVICE IN THE NAVAL RESERVE AND THE NAVAL RESERVE FORCE FOR LONGEVITY PAY PURPOSES IN THE COMPUTATION OF RETAINER OR RETIRED PAY. 1948: REFERENCE IS MADE TO YOUR LETTER OF APRIL 12. WHEREIN DECISION IS REQUESTED AS TO WHETHER INACTIVE SERVICE IN THE NAVAL RESERVE OR THE NAVAL RESERVE FORCE OCCURRING PRIOR TO TRANSFER TO THE FLEET RESERVE MAY BE COUNTED FOR LONGEVITY PAY PURPOSES IN THE COMPUTATION OF RETAINER AND RETIRED PAY OF MEMBERS OF THE FLEET RESERVE.

B-75433, SEPTEMBER 24, 1948, 28 COMP. GEN. 198

PAY - RETAINER - LONGEVITY CREDITS - INCLUSION OF INACTIVE SERVICE ENLISTED MEN OF THE REGULAR NAVY WHO TRANSFER TO THE FLEET RESERVE UNDER THE PROVISIONS OF SECTION 203 OR 204 OF THE NAVAL RESERVE ACT OF 1938 ARE ENTITLED TO COUNT PRIOR INACTIVE SERVICE IN THE NAVAL RESERVE AND THE NAVAL RESERVE FORCE FOR LONGEVITY PAY PURPOSES IN THE COMPUTATION OF RETAINER OR RETIRED PAY.

ASSISTANT COMPTROLLER GENERAL YATES TO THE SECRETARY OF THE NAVY, SEPTEMBER 24, 1948:

REFERENCE IS MADE TO YOUR LETTER OF APRIL 12, 1948, ENCLOSING A LETTER DATED MARCH 23, 1948, FROM THE DISBURSING OFFICER, SPECIAL PAYMENTS DIVISION, FIELD BRANCH, BUREAU OF SUPPLIES AND ACCOUNTS, CLEVELAND, OHIO, WHEREIN DECISION IS REQUESTED AS TO WHETHER INACTIVE SERVICE IN THE NAVAL RESERVE OR THE NAVAL RESERVE FORCE OCCURRING PRIOR TO TRANSFER TO THE FLEET RESERVE MAY BE COUNTED FOR LONGEVITY PAY PURPOSES IN THE COMPUTATION OF RETAINER AND RETIRED PAY OF MEMBERS OF THE FLEET RESERVE.

THE APPLICABLE PROVISIONS OF THE NAVAL RESERVE ACT OF 1938 ARE, IN PERTINENT PART, AS FOLLOWS: SECTION 203 (52 STAT. 1178).

MEN SERVING IN THE REGULAR NAVY, WHO, HAVING ENLISTED THEREIN ON JULY 1, 1925, OR PRIOR THERETO, OR WHO HAVING BEEN DISCHARGED THEREFROM PRIOR TO JULY 1, 1925, AND REENLISTED IN THE REGULAR NAVY WITHIN THREE MONTHS FROM THE DATE OF DISCHARGE, OR WHO WERE SERVING IN THE NAVAL RESERVE FORCE ON JULY 1, 1925, IN AN ENROLLMENT ENTERED INTO WITHIN FOUR MONTHS FROM THE DATE OF THEIR DISCHARGE FROM THE REGULAR NAVY AND THEREAFTER REENLISTED IN THE REGULAR NAVY WITHIN THREE MONTHS FROM THE DATE OF THEIR DISCHARGE FROM THE NAVAL RESERVE CREATED BY THE ACT OF FEBRUARY 28, 1925, SHALL BE ENTITLED TO BE TRANSFERRED TO THE FLEET RESERVE ON THE COMPLETION OF SIXTEEN OR MORE YEARS' NAVAL SERVICE, AND WHEN SO TRANSFERRED SHALL, EXCEPT WHEN ON ACTIVE DUTY, BE ENTITLED TO RECEIVE, IF THEY HAVE HAD SIXTEEN BUT LESS THAN TWENTY YEARS' NAVAL SERVICE, PAY AT THE RATE OF ONE- THIRD THE BASE PAY THEY WERE RECEIVING AT THE TIME OF TRANSFER, PLUS ALL PERMANENT ADDITIONS THERETO, AND IF THEY HAVE HAD TWENTY OR MORE YEARS' NAVAL SERVICE, PAY AT THE RATE OF ONE-HALF OF THE BASE PAY THEY WERE RECEIVING AT THE TIME OF TRANSFER, PLUS ALL PERMANENT ADDITIONS THERETO *

SECTION 204, AS ORIGINALLY ENACTED (52 STAT. 1179):

MEN SERVING IN THE REGULAR NAVY ON THE DATE OF THE PASSAGE OF THIS ACT, WHO FIRST ENLISTED IN THE NAVY AFTER JULY 1, 1925, OR WHO REENLISTED THEREIN AFTER JULY 1, 1925, HAVING BEEN OUT OF THE REGULAR NAVY FOR MORE THAN THREE MONTHS, AND MEN WHO FIRST ENLIST IN THE REGULAR NAVY AFTER THE PASSAGE OF THIS ACT, MAY UPON THEIR OWN REQUEST BE TRANSFERRED TO THE FLEET RESERVE UPON THE COMPLETION OF AT LEAST TWENTY YEARS' NAVAL SERVICE. * * * AFTER SUCH TRANSFER, EXCEPT WHEN ON ACTIVE DUTY, THEY SHALL BE PAID AT THE RATE OF ONE-HALF OF THE BASE PAY THEY ARE RECEIVING AT THE TIME OF TRANSFER: PROVIDED FURTHER, THAT ALL ENLISTED MEN TRANSFERRED TO THE FLEET RESERVE IN ACCORDANCE WITH THE PROVISIONS OF SECTIONS 1 AND 203 OF THIS ACT SHALL, UPON COMPLETION OF THIRTY YEARS' SERVICE, BE TRANSFERRED TO THE RETIRED LIST OF THE REGULAR NAVY, WITH THE PAY THEY WERE THEN LEGALLY ENTITLED TO RECEIVE * * * AND PROVIDED FURTHER, THAT ALL ENLISTED MEN TRANSFERRED TO THE FLEET RESERVE IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION SHALL UPON COMPLETION OF THIRTY YEARS' SERVICE, BE TRANSFERRED TO THE RETIRED LIST OF THE REGULAR NAVY, WITH THE PAY THEY WERE THEN LEGALLY ENTITLED TO RECEIVE, PLUS ALL PERMANENT ADDITIONS THERETO * * *. SECTION 204 AS AMENDED BY SECTION 2 OF THE ACT OF AUGUST 10, 1946 (60 STAT. 993):

MEMBERS OF THE NAVY WHO FIRST ENLISTED IN THE NAVY AFTER JULY 1, 1925, OR WHO REENLISTED THEREIN AFTER JULY 1, 1925, HAVING BEEN OUT OF THE REGULAR NAVY FOR MORE THAN THREE MONTHS, MAY UPON THEIR OWN REQUEST BE TRANSFERRED TO THE FLEET RESERVE UPON THE COMPLETION OF AT LEAST TWENTY YEARS' ACTIVE FEDERAL SERVICE. AFTER SUCH TRANSFER, EXCEPT WHEN ON ACTIVE DUTY, THEY SHALL BE PAID AT THE ANNUAL RATE OF 2 1/2 PERCENTUM OF THE ANNUAL BASE AND LONGEVITY PAY THEY ARE RECEIVING AT THE TIME OF TRANSFER MULTIPLIED BY THE NUMBER OF YEARS OF ACTIVE FEDERAL SERVICE * * * PROVIDED FURTHER, THAT ALL ENLISTED MEN TRANSFERRED TO THE FLEET RESERVE IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION AND OF SECTIONS 1 AND 203 OF THIS ACT SHALL, UPON COMPLETION OF THIRTY YEARS' SERVICE, BE TRANSFERRED TO THE RETIRED LIST OF THE REGULAR NAVY, WITH THE PAY THEY WERE THEN LEGALLY ENTITLED TO RECEIVE * * *.

IT WILL BE NOTED THAT UNDER EACH OF THE STATUTORY PROVISIONS, QUOTED ABOVE, RETAINER PAY AND RETIRED PAY ARE TO BE COMPUTED ON THE PAY THE MAN WAS ENTITLED TO RECEIVE AT THE TIME OF HIS TRANSFER TO THE FLEET RESERVE AND, LIKEWISE, WHERE LONGEVITY PAY IS AUTHORIZED TO BE INCLUDED IN SUCH COMPUTATION, IT IS THE LONGEVITY PAY THE MAN WAS ENTITLED TO RECEIVE AT THE TIME OF SUCH TRANSFER. HENCE, ANY SERVICE WHICH THE MAN WAS AUTHORIZED TO COUNT IN THE COMPUTATION OF HIS PAY PRIOR TO TRANSFER MUST BE TAKEN INTO CONSIDERATION IN THE COMPUTATION OF HIS LONGEVITY PAY FOR THE PURPOSE OF DETERMINING HIS RETAINER OR RETIRED PAY. SINCE ON AND AFTER JUNE 1, 1942, ENLISTED MEN OF THE NAVY HAVE BEEN ENTITLED TO COUNT INACTIVE SERVICE IN THE NAVAL RESERVE AND THE NAVAL RESERVE FORCE FOR LONGEVITY PAY PURPOSES (SEE SECS. 3A AND 9 OF THE PAY READJUSTMENT ACT OF 1942, AS AMENDED, 37 U.S.C. 103A AND 109) IT NECESSARILY FOLLOWS THAT UPON TRANSFER TO THE FLEET RESERVE ON OR AFTER THAT DATE THEY WOULD BE ENTITLED TO CREDIT FOR SUCH SERVICE IN THE COMPUTATION OF THEIR RETAINER PAY, IF LONGEVITY PAY IS AUTHORIZED TO BE INCLUDED IN SUCH COMPUTATION, AND IN THE COMPUTATION OF THEIR RETIRED PAY. AND, THE SAME IS TRUE WITH RESPECT TO ENLISTED MEN TRANSFERRED TO THE FLEET RESERVE PRIOR TO JUNE 1, 1942, IN VIEW OF SECTION 15 OF THE SAID PAY READJUSTMENT ACT OF 1942, AS AMENDED, 37 U.S.C. 115, WHICH PROVIDES, INSOFAR AS HERE PERTINENT, THAT ON AND AFTER THE EFFECTIVE DATE OF THAT ACT ( JUNE 1, 1942) MEMBERS OF THE FLEET RESERVE SHALL HAVE THEIR RETAINER PAY AND RETIRED PAY COMPUTED AS AUTHORIZED BY LAW ON THE BASIS OF PAY PROVIDED IN THAT ACT. ACCORDINGLY, THE QUESTION PRESENTED IS ANSWERED IN THE AFFIRMATIVE.

IN CONNECTION WITH THE FOREGOING IT IS DESIRED TO POINT OUT THAT ONLY ACTIVE SERVICE MAY BE INCLUDED IN DETERMINING THE NUMBER OF YEARS BY WHICH THE PERCENTAGE RATE OF BASE AND LONGEVITY PAY IS TO BE MULTIPLIED TO DETERMINE THE RATE OF RETAINER PAY UNDER THE PROVISIONS OF THE SAID SECTION 204 OF THE NAVAL RESERVE ACT OF 1938, AS AMENDED, SUPRA. ..END :