B-98701, JANUARY 22, 1952, 31 COMP. GEN. 318

B-98701: Jan 22, 1952

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THE DEDUCTIONS FOR EARNINGS THROUGH OTHER EMPLOYMENT DURING THE PERIOD INVOLVED ARE NOT FOR TRANSFER TO MISCELLANEOUS RECEIPTS BUT SHOULD REMAIN TO THE CREDIT OF THE SALARY APPROPRIATION FROM WHICH PAYMENT IS MADE. 1952: REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 20. IT IS REPORTED THAT MR. FRAIN WAS SUSPENDED WITHOUT PAY FOR THE PERIOD MARCH 18. WHICH ACTION WAS BASED UPON THE POST OFFICE DEPARTMENT LOYALTY BOARD'S FINDING THAT REASONABLE GROUNDS EXISTED FOR BELIEVING THE EMPLOYEE DISLOYAL TO THE UNITED STATES. THAT FINDING SUBSEQUENTLY WAS REVERSED BY THE LOYALTY REVIEW BOARD OF THE CIVIL SERVICE COMMISSION. FRAIN WAS RESTORED TO DUTY ON JULY 12. THE VOUCHER COVERS PAYMENT OF COMPENSATION AT THE RATE THE EMPLOYEE WAS RECEIVING ON THE DATE OF HIS SUSPENSION FROM THE SERVICE LESS AMOUNTS EARNED FROM OTHER EMPLOYMENT DURING THE PERIOD OF SUSPENSION.

B-98701, JANUARY 22, 1952, 31 COMP. GEN. 318

COMPENSATION - DISCHARGES, SUSPENSIONS, ETC. - RESTORATION - DISPOSITION OF DEDUCTIONS FOR OUTSIDE EARNINGS IN MAKING PAYMENT OF COMPENSATION FOR PERIODS OF EMPLOYEE'S UNJUSTIFIED SUSPENSION FROM THE SERVICE UNDER THE ACT OF AUGUST 24, 1912, AS AMENDED BY THE ACT OF JUNE 10, 1948, THE DEDUCTIONS FOR EARNINGS THROUGH OTHER EMPLOYMENT DURING THE PERIOD INVOLVED ARE NOT FOR TRANSFER TO MISCELLANEOUS RECEIPTS BUT SHOULD REMAIN TO THE CREDIT OF THE SALARY APPROPRIATION FROM WHICH PAYMENT IS MADE.

COMPTROLLER GENERAL WARREN TO H. W. BRESNAHAN, POST OFFICE DEPARTMENT, JANUARY 22, 1952:

REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 20, 1951, ENCLOSING A VOUCHER IN FAVOR OF MR. JOHN G. FRAIN, A FORMER EMPLOYEE OF THE DEPARTMENT, FOR COMPENSATION UNDER THE ACT OF JUNE 10, 1948, 62 STAT. 354, AMENDING THE ACT OF AUGUST 24, 1912, 5 U.S.C. 652, AND REQUESTING A DECISION WHETHER THE VOUCHER MAY BE CERTIFIED FOR PAYMENT UNDER THE FOLLOWING FACTS AND CIRCUMSTANCES.

IT IS REPORTED THAT MR. FRAIN WAS SUSPENDED WITHOUT PAY FOR THE PERIOD MARCH 18, 1949, TO AND INCLUDING JULY 11, 1950, UNDER THE PROVISIONS OF EXECUTIVE ORDER 9835, MAR. 21, 1947, WHICH ACTION WAS BASED UPON THE POST OFFICE DEPARTMENT LOYALTY BOARD'S FINDING THAT REASONABLE GROUNDS EXISTED FOR BELIEVING THE EMPLOYEE DISLOYAL TO THE UNITED STATES. THAT FINDING SUBSEQUENTLY WAS REVERSED BY THE LOYALTY REVIEW BOARD OF THE CIVIL SERVICE COMMISSION, UPON THE BASIS OF WHICH MR. FRAIN WAS RESTORED TO DUTY ON JULY 12, 1950; HOWEVER, HE RESIGNED FROM THE SERVICE ON JULY 23, 1950.

THE VOUCHER COVERS PAYMENT OF COMPENSATION AT THE RATE THE EMPLOYEE WAS RECEIVING ON THE DATE OF HIS SUSPENSION FROM THE SERVICE LESS AMOUNTS EARNED FROM OTHER EMPLOYMENT DURING THE PERIOD OF SUSPENSION, WHICH ACTION IS IN ACCORDANCE WITH THE PROVISIONS OF THE ABOVE MENTIONED ACT. HOWEVER, A DOUBT HAS ARISEN WHETHER THE AMOUNT OF THE DEDUCTION REPRESENTING OUTSIDE EARNINGS SHOULD BE DEPOSITED TO THE CREDIT OF THE SALARY APPROPRIATION INVOLVED OR DEPOSITED TO MISCELLANEOUS RECEIPTS.

WHILE NOT SO STATED IN YOUR LETTER, IT APPEARS FROM OTHER CORRESPONDENCE ENCLOSED THEREWITH THAT MR. FRAIN HAS BROUGHT SUIT IN THE COURT OF CLAIMS FOR RECOVERY OF COMPENSATION DURING THE PERIOD OF HIS SUSPENSION, WHICH CASE IS STILL PENDING. HOWEVER, INFORMATION INFORMALLY, OBTAINED FROM THE DEPARTMENT OF JUSTICE IS TO THE EFFECT THAT THAT DEPARTMENT IS AGREEABLE TO PAYMENT OF MR. FRAIN'S CLAIM ADMINISTRATIVELY UPON THE AUTHORITY OF THE RECENT CASE OF MENDEZ V. UNITED STATES, 119 C.1CLS. 345, AND WILL MAKE THE NECESSARY ARRANGEMENTS FOR DISMISSAL OF MR. FRAIN'S SUIT IN THE COURT OF CLAIMS AT THE TIME THE PAYMENT IS PROCESSED.

ASSUMING THAT MR. FRAIN OTHERWISE MEETS THE CONDITIONS OF THE ACT OF AUGUST 24, 1912, AS AMENDED BY THE ACT OF JUNE 10, 1948, SUPRA, THERE IS PERCEIVED NO OBJECTION TO THE PAYMENT AS PROPOSED AND YOU MAY BE ADVISED THAT THE DEDUCTION FOR EARNINGS THROUGH OTHER EMPLOYMENT DURING THE PERIOD INVOLVED SHOULD REMAIN TO THE CREDIT OF THE SALARY APPROPRIATION INVOLVED, THERE BEING NO REQUIREMENT FOR TRANSFER OF SAID DEDUCTION TO MISCELLANEOUS RECEIPTS.

ACCORDINGLY, THE VOUCHER, WHICH IS RETURNED HEREWITH, MAY BE CERTIFIED FOR PAYMENT WITH THE UNDERSTANDING, AS PREVIOUSLY INDICATED, THAT ARRANGEMENTS WILL BE MADE WITH THE DEPARTMENT OF JUSTICE FOR DISMISSAL OF MR. FRAIN'S SUIT IN THE COURT OF CLAIMS AT THE TIME SAID PAYMENT IS RELEASED TO THE CLAIMANT.