B-87980, SEPTEMBER 7, 1949, 29 COMP. GEN. 119

B-87980: Sep 7, 1949

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RETIREMENT - CIVILIAN - SALARY DEDUCTIONS UPON REEMPLOYMENT - COST-OF LIVING ALLOWANCE IN COMPUTING THE AGGREGATE AMOUNT OF COMPENSATION PAYABLE TO AN ANNUITANT WHO IS REEMPLOYED FOR DUTY OUTSIDE THE CONTINENTAL UNITED STATES. FOR WHICH ADDITIONAL COMPENSATION IN THE FORM OF A COST-OF LIVING ALLOWANCE IS PAYABLE. IS NOT TO BE REGARDED SOLELY AS A REDUCTION IN THE BASIC RATE OF COMPENSATION FOR THE POSITION. IS TO BE REGARDED AS A DEDUCTION FROM THE AMOUNT OF "COMPENSATION OTHERWISE PAYABLE" TO THE ANNUITANT. 1949: REFERENCE IS MADE TO YOUR LETTER OF JULY 15. REQUESTING A DECISION AS TO THE PROPER METHOD OF COMPUTING THE ANNUAL COMPENSATION PAYABLE TO A CIVIL-SERVICE ANNUITANT WHO IS REEMPLOYED FOR DUTY OUTSIDE THE CONTINENTAL UNITED STATES AND ENTITLED TO A COST-OF-LIVING ALLOWANCE EQUAL TO 25 PERCENT OF HIS BASE PAY.

B-87980, SEPTEMBER 7, 1949, 29 COMP. GEN. 119

RETIREMENT - CIVILIAN - SALARY DEDUCTIONS UPON REEMPLOYMENT - COST-OF LIVING ALLOWANCE IN COMPUTING THE AGGREGATE AMOUNT OF COMPENSATION PAYABLE TO AN ANNUITANT WHO IS REEMPLOYED FOR DUTY OUTSIDE THE CONTINENTAL UNITED STATES, FOR WHICH ADDITIONAL COMPENSATION IN THE FORM OF A COST-OF LIVING ALLOWANCE IS PAYABLE, THE REDUCTION REQUIRED TO BE MADE FROM THE SALARY OF SAID ANNUITANT UNDER SECTION 2 (B) OF THE ACT OF FEBRUARY 28, 1948, IS NOT TO BE REGARDED SOLELY AS A REDUCTION IN THE BASIC RATE OF COMPENSATION FOR THE POSITION, BUT, RATHER, IS TO BE REGARDED AS A DEDUCTION FROM THE AMOUNT OF "COMPENSATION OTHERWISE PAYABLE" TO THE ANNUITANT, WHICH INCLUDES BASIC COMPENSATION AS WELL AS ADDITIONAL COMPENSATION.

COMPTROLLER GENERAL WARREN TO THE ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION, SEPTEMBER 7, 1949:

REFERENCE IS MADE TO YOUR LETTER OF JULY 15, 1949, REQUESTING A DECISION AS TO THE PROPER METHOD OF COMPUTING THE ANNUAL COMPENSATION PAYABLE TO A CIVIL-SERVICE ANNUITANT WHO IS REEMPLOYED FOR DUTY OUTSIDE THE CONTINENTAL UNITED STATES AND ENTITLED TO A COST-OF-LIVING ALLOWANCE EQUAL TO 25 PERCENT OF HIS BASE PAY. IN VIEW OF CERTAIN LANGUAGE APPEARING IN OFFICE DECISION OF JUNE 7, 1949, B-81063 (28 COMP. GEN. 693), YOU ARE IN DOUBT WHETHER THE COMPUTATION SHOULD BE IN ACCORDANCE WITH THAT USED IN EXAMPLE A OR IN EXAMPLE B, SET FORTH IN YOUR LETTER AS FOLLOWS: CHART

EXAMPLE A

BASIC SALARY RATE -------------------------------------- $6,000.00

ADD - COST OF LIVING ALLOWANCE--- 25 PERCENT OF

$6,000.00 ---------------------------------------------- 1,500.00

$7,500.00

LESS--- AMOUNT OF RETIREMENT ANNUITY ------------------- 1,400.00

AMOUNT OF ANNUAL COMPENSATION PAYABLE TO EMPLOYEE ------ 6,100.00EXAMPLE B

BASIC SALARY RATE -------------------------------------- $6,000.00

LESS--- AMOUNT OF RETIREMENT ANNUITY ------------------- 1,400.00

4,600.00

ADD - COST OF LIVING ALLOWANCE--- 25 PERCENT OF

$4,600.00 ---------------------------------------------- 1,150.00

AMOUNT OF ANNUAL COMPENSATION PAYABLE TO EMPLOYEE ------ 5,750.00

THE REDUCTION REQUIRED TO BE MADE FROM THE SALARY OF A REEMPLOYED ANNUITANT UNDER SECTION 2 (B) OF THE ACT OF FEBRUARY 28, 1948, PUBLIC LAW 426, 62 STAT. 49, IS NOT TO BE REGARDED SOLELY AS A REDUCTION IN THE BASIC RATE OF COMPENSATION FIXED BY LAW FOR THE POSITION, BUT, RATHER, AS SPECIFICALLY REQUIRED BY THE LANGUAGE OF THAT SUBSECTION, IS TO BE REGARDED AS A DEDUCTION FROM THE AMOUNT OF "COMPENSATION OTHERWISE PAYABLE" TO THE INDIVIDUAL INVOLVED, WHICH INCLUDES BASIC COMPENSATION AS WELL AS ADDITIONAL COMPENSATION PAYABLE TO THE EMPLOYEE. SUCH WAS THE HOLDING IN THE SAID DECISION OF JUNE 7, 1949 (B 81063), AND I FIND NOTHING THEREIN WHICH INDICATES A VIEW THAT ADDITIONAL COMPENSATION IS TO BE COMPUTED UPON THE BASIC COMPENSATION AS REDUCED BY THE ANNUITY AS ILLUSTRATED IN " EXAMPLE B," SUPRA.IN LINE WITH THE FOREGOING, AND SINCE A COST-OF-LIVING ALLOWANCE IS ADDITIONAL COMPENSATION, REPRESENTING A FIXED PERCENTAGE--- NOT TO EXCEED 25 PERCENT--- OF THE BASIC SALARY RATE FOR THE POSITION (CF. 28 COMP. GEN. 377), THE AGGREGATE AMOUNT OF COMPENSATION PAYABLE TO AN ANNUITANT, REEMPLOYED FOR DUTY OUTSIDE THE CONTINENTAL UNITED STATES, SHOULD BE COMPUTED IN ACCORDANCE WITH EXAMPLE A, SUPRA.