B-88372, OCTOBER 11, 1949, 29 COMP. GEN. 175

B-88372: Oct 11, 1949

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

THE WORDS "ON THE BASIS OF THREE HUNDRED AND SIXTY DAYS PER YEAR" AS USED IN THAT SECTION ARE TO BE CONSIDERED AS MEANING A FULL YEAR'S SERVICE IN TOTALING PERIODS OF ACTIVE FEDERAL SERVICE. EVEN THOUGH AN INDIVIDUAL MAY HAVE COMPLETED A TOTAL OF 365 DAYS' ACTIVE FEDERAL SERVICE DURING ONE OR MORE CALENDAR YEARS. 1949: REFERENCE IS MADE TO YOUR LETTER OF JULY 26. REQUEST DECISION ON TWO QUESTIONS ARISING THEREUNDER AS FOLLOWS: (1) DOES THE PHRASE "ON THE BASIS OF THREE HUNDRED AND SIXTY DAYS PER YEAR" REFER TO WHOLE YEARS OR ONLY TO FRACTIONAL PARTS OF YEARS? (2)IF THE ANSWER TO QUESTION (1) IS THAT THE QUOTED PHRASE REFERS TO WHOLE YEARS. IS THREE HUNDRED AND SIXTY DAYS CONSIDERED TO BE THE NUMBER OF DAYS CONSTITUTING A YEAR.

B-88372, OCTOBER 11, 1949, 29 COMP. GEN. 175

PAY - RETIRED - MEMBERS OR FORMER MEMBERS OF RESERVE COMPONENTS OF ARMED FORCES - SERVICE CREDITS IN COMPUTING THE RETIRED PAY OF MEMBERS OR FORMER MEMBERS OF RESERVE COMPONENTS OF THE ARMED FORCES UNDER SECTION 303 OF THE ACT OF JUNE 29, 1948, THE WORDS "ON THE BASIS OF THREE HUNDRED AND SIXTY DAYS PER YEAR" AS USED IN THAT SECTION ARE TO BE CONSIDERED AS MEANING A FULL YEAR'S SERVICE IN TOTALING PERIODS OF ACTIVE FEDERAL SERVICE, EVEN THOUGH AN INDIVIDUAL MAY HAVE COMPLETED A TOTAL OF 365 DAYS' ACTIVE FEDERAL SERVICE DURING ONE OR MORE CALENDAR YEARS.

ASSISTANT COMPTROLLER GENERAL YATES TO THE SECRETARY OF THE NAVY, OCTOBER 11, 1949:

REFERENCE IS MADE TO YOUR LETTER OF JULY 26, 1949, WHEREIN YOU REFER TO SECTION 303 OF THE ACT OF JUNE 29, 1948, 62 STAT. 1088, AND REQUEST DECISION ON TWO QUESTIONS ARISING THEREUNDER AS FOLLOWS:

(1) DOES THE PHRASE "ON THE BASIS OF THREE HUNDRED AND SIXTY DAYS PER YEAR" REFER TO WHOLE YEARS OR ONLY TO FRACTIONAL PARTS OF YEARS?

(2)IF THE ANSWER TO QUESTION (1) IS THAT THE QUOTED PHRASE REFERS TO WHOLE YEARS, IN TOTALING PERIODS OF ACTIVE FEDERAL SERVICE AND CONVERTING SUCH SERVICE TO TERMS OF YEARS, IS THREE HUNDRED AND SIXTY DAYS CONSIDERED TO BE THE NUMBER OF DAYS CONSTITUTING A YEAR, EVEN THOUGH THE INDIVIDUAL CONCERNED MAY HAVE COMPLETED A TOTAL OF 365 DAYS ACTIVE FEDERAL SERVICE DURING ONE OR MORE CALENDAR YEARS? THE SAID SECTION 303 PERTAINS TO THE COMPUTATION OF THE RETIRED PAY OF MEMBERS OR FORMER MEMBERS OF RESERVE COMPONENTS WHO ARE ELIGIBLE TO RECEIVE SUCH PAY UNDER OTHER PROVISIONS OF TITLE III OF THE ACT OF JUNE 29, 1948, AND SUCH SECTION PROVIDES, IN PERTINENT PART, AS FOLLOWS:

ANY PERSON GRANTED RETIRED PAY PURSUANT TO THE PROVISIONS OF THIS TITLE SHALL RECEIVE SUCH PAY AT AN ANNUAL RATE EQUAL TO 2 1/2 PERCENTUM OF THE ACTIVE DUTY ANNUAL BASE AND LONGEVITY PAY WHICH HE WOULD RECEIVE IF SERVING, AT THE TIME GRANTED SUCH PAY, ON ACTIVE DUTY IN THE HIGHEST GRADE, TEMPORARY OR PERMANENT, SATISFACTORILY HELD BY HIM DURING HIS ENTIRE PERIOD OF SERVICE, MULTIPLIED BY A NUMBER EQUAL TO THE NUMBER OF YEARS AND ANY FRACTION THEREOF (ON THE BASIS OF THREE HUNDRED AND SIXTY DAYS PER YEAR) WHICH SHALL CONSIST OF THE SUM OF THE FOLLOWING:

"/I) ALL PERIODS OF ACTIVE FEDERAL SERVICE;

"/II) ONE DAY FOR EACH POINT CREDITED PURSUANT TO SUBPARAGRAPHS (2) AND (3) OF SUBSECTION (B) OF SECTION 302 OF THIS ACT, BUT NO MORE THAN SIXTY DAYS SHALL BE CREDITED ON THIS BASIS IN ANY ONE YEAR FOR THE PURPOSES OF THIS SECTION: "

AS THE BILL, H.R. 2744, WHICH BECAME THE ACT OF JUNE 29, 1948, WAS ORIGINALLY PASSED BY THE HOUSE OF REPRESENTATIVES ON MARCH 10, 1948, SECTION 303 PROVIDED THAT RETIRED PAY WOULD BE COMPUTED ON THE BASIS OF 2 1/2 PERCENTUM OF THE ACTIVE-DUTY ANNUAL BASE AND LONGEVITY PAY MULTIPLIED BY A NUMBER EQUAL TO THE SUM OF THE NUMBER OF YEARS OF ACTIVE FEDERAL SERVICE, PLUS ONE-HALF OF ONE PERCENTUM OF SUCH ACTIVE DUTY ANNUAL BASE AND LONGEVITY PAY, MULTIPLIED BY A NUMBER EQUAL TO THE SUM OF THE NUMBER OF YEARS OF FEDERAL SERVICE OTHER THAN ACTIVE FEDERAL SERVICE. HOWEVER, SUCH PROVISION WAS AMENDED BY THE SENATE TO READ AS QUOTED ABOVE, AND THE EFFECT OF THE PROVISION AS SO AMENDED WAS EXPLAINED IN REPORT NO. 1543, SENATE COMMITTEE ON ARMED SERVICES, DATED JUNE 8, 1948, AS FOLLOWS (PAGE 10):

SECTION 303 PROVIDES THE RATES OF RETIRED PAY WHICH PERSONS QUALIFYING FOR RETIREMENT UNDER THE PROVISIONS OF THIS TITLE SHALL RECEIVE. ALL POINTS ACCRUING TO THE CREDIT OF A RESERVIST, WHICH ARE EARNED DURING A YEAR OF SATISFACTORY FEDERAL SERVICES ARE CONVERTED INTO DAYS. THOSE EARNED FOR PERIODS OF ACTIVE FEDERAL SERVICE, INCLUDING TRAINING DUTY, ARE CONSIDERED IN ONE CATEGORY. THE BALANCE OF TIME WHICH CAN BE CREDITED IS LIMITED TO 60 DAYS IN ANY 1 YEAR OF SATISFACTORY FEDERAL SERVICE. THE TWO CATEGORIES ARE THEN ADDED TOGETHER AND THE SUM IS DIVIDED BY 360 DAYS TO ARRIVE AT THE NUMBER OF YEARS CREDITABLE FOR RETIREMENT PURPOSES. THE NUMBER OF YEARS IS THEN MULTIPLIED BY 2 1/2 PERCENT OF THE PAY IN THE HIGHEST RANK IN WHICH AN INDIVIDUAL HAS SERVED DURING HIS PERIOD OF SERVICE. THIS IS THE AMOUNT OF THE RETIRED PAY HE WILL RECEIVE STARTING AT AGE 60. ( ITALICS SUPPLIED.) SEE, ALSO, THE SIMILAR STATEMENT APPEARING AT PAGE 60 OF THE REPORT OF THE HEARINGS BEFORE THE SENATE COMMITTEE ON ARMED SERVICES ON THE BILL IN QUESTION.

IN VIEW OF THE FOREGOING EXPLANATION OF SECTION 303 AND THE LANGUAGE OF SUCH SECTION, IT SEEMS CLEAR THAT THE PARENTHETICAL EXPRESSION "ON THE BASIS OF THREE HUNDRED AND SIXTY DAYS PER YEAR" WAS INTENDED TO REFER TO THE ENTIRE CLAUSE IMMEDIATELY PRECEDING IT, AND THAT 360 DAYS OF ACTIVE FEDERAL SERVICE ARE TO BE CONSIDERED A FULL YEAR'S SERVICE FOR THE PURPOSE OF COMPUTING RETIRED PAY UNDER THE SAID SECTION. YOUR FIRST QUESTION IS ANSWERED ACCORDINGLY, AND YOUR SECOND QUESTION IS ANSWERED IN THE AFFIRMATIVE.