Claim for Federal Reimbursement of State Disability Payments

The Army requested an advance decision as to the propriety of paying a claim for reimbursement arising from a contract between the Department of Defense and the State of New York for certain support functions to the 1980 Winter Olympic Games. The contract provided for the reimbursement of certain benefits including disability payments, hospitalization, medical payments, and pensions paid to military personnel who are members of the New York militia who incurred injury or death during performance of the contract. The payments could not entail expenditures which exceeded the appropriation for assistance to the 1980 Olympic Winter Games which were available at the time of the event which gave rise to the claim. A State militiaman was severely injured in an auto accident while on duty providing military support to the Olympics. The militiaman was awarded a disability pension which was projected to equal $182,422.62 during his lifetime. The State of New York filed a claim with the Army for reimbursement. GAO found that the claim was valid according to the applicable legislation and contract and that sufficient funds remained available for obligation at the time the State filed its claim. However, the amount claimed for repayment should be reduced to present value and any portion of the lump-sum which is not disbursed by the State of New York to the claimant must be refunded to the Federal Government.