Applicability of Dual Compensation Act to Peace Corps Volunteers

The Director of the Peace Corps requested a decision concerning the applicability of the dual compensation provisions to retired military officers who serve as Peace Corps volunteers. The Peace Corps has recruited a number of retired officers to serve as volunteers overseas. If regulations operate to reduce the retired pay of these volunteers, such recruitment would be seriously impeded. The Director of the Peace Corps concluded that the provisions do not apply to volunteers. The dual compensation provisions necessarily contemplate an employment relationship with the Government. GAO has also held that, for the purposes of certain travel allowances, Peace Corps volunteers are not considered employees of the United States. The Peace Corps Act provides that volunteers shall not be deemed officers or employees of the United States. Accordingly, GAO held that the restrictions on the receipt of retired pay for retired officers contained in the dual compensation provisions do not apply to Peace Corps volunteers.