Entitlement to Retired Pay When Employed by Foreign Government

The Air Force requested GAO to clarify a prior decision. The issue presented concerned whether a retired Air Force officer was entitled to retired pay when he accepted employment and compensation from a foreign government after receiving approval from the Secretary of the Air Force but prior to the granting of approval by the Secretary of State, as required by federal legislation. In its prior decision, GAO held that the retiree must repay the United States an amount equal to the compensation received from the foreign government. However, GAO also held that, when final approval is given, withholding of retired pay is to be discontinued except to the extent that retired pay was paid for the period of unauthorized employment by a foreign government. Accordingly, the prior decision was affirmed.