FEBRUARY 14, 1923, 2 COMP. GEN. 506
Highlights
RETIREMENT DEDUCTIONS WHERE OWING TO ERROR OR INADVERTENCE OF THE ADMINISTRATIVE OFFICERS AN EMPLOYEE SUBJECT TO THE CIVIL RETIREMENT LAW HAS BEEN PAID HIS SALARY WITHOUT RETIREMENT DEDUCTIONS HE SHOULD BE REQUIRED TO DEPOSIT THE NET AMOUNT OF DEDUCTIONS THAT WOULD HAVE ACCRUED TO DATE. UNLESS HIS SALARY WAS NOT INCLUDED IN THE ESTIMATED DEDUCTION TRANSFERRED TO THE RETIREMENT FUND. 1923: I HAVE YOUR LETTER OF JANUARY 18. WHO WAS APPOINTED A COMMISSIONER OF CONCILIATION UNDER YOUR DEPARTMENT AT A COMPENSATION OF $8 PER DIEM. IS DUE FROM HIM AS INTEREST ON THE AMOUNTS NOT DEDUCTED. BROWN NO RETIREMENT FUND DEDUCTIONS FROM HIS COMPENSATION WERE MADE. ASSUMING THAT HE IS SO ENTITLED THE QUESTION FOR DECISION IS WHAT DISPOSITION SHALL BE MADE OF THE PROCEEDS OF A CHECK FOR $170.76 WHICH MR.
FEBRUARY 14, 1923, 2 COMP. GEN. 506
RETIREMENT DEDUCTIONS WHERE OWING TO ERROR OR INADVERTENCE OF THE ADMINISTRATIVE OFFICERS AN EMPLOYEE SUBJECT TO THE CIVIL RETIREMENT LAW HAS BEEN PAID HIS SALARY WITHOUT RETIREMENT DEDUCTIONS HE SHOULD BE REQUIRED TO DEPOSIT THE NET AMOUNT OF DEDUCTIONS THAT WOULD HAVE ACCRUED TO DATE, WITHOUT INTEREST; PROPER NOTATIONS SHOULD BE MADE ON THE RECORDS, AND IN THE EVENT OF SUBSEQUENT REFUNDING TO THE EMPLOYEE NO INTEREST SHOULD BE COMPUTED THEREON PRIOR TO DATE OF DEPOSIT. DEPOSITS BY A CIVILIAN EMPLOYEE TO COVER RETIREMENT DEDUCTIONS WHICH HAD NOT BEEN DEDUCTED FROM HIS SALARY DUE TO ADMINISTRATIVE ERROR SHOULD BE CREDITED TO THE APPROPRIATION AVAILABLE FOR SUCH SALARY, UNLESS HIS SALARY WAS NOT INCLUDED IN THE ESTIMATED DEDUCTION TRANSFERRED TO THE RETIREMENT FUND, IN WHICH CASE THE DEPOSIT SHOULD BE TO THE RETIREMENT FUND.
ACTING COMPTROLLER GENERAL GINN TO THE SECRETARY OF LABOR, FEBRUARY 14, 1923:
I HAVE YOUR LETTER OF JANUARY 18, 1923, REQUESTING DECISION AS TO THE PROCEDURE TO BE FOLLOWED IN ADJUSTING THE RETIREMENT FUND ACCOUNT WITH MR. HOMER J. BROWN, WHO WAS APPOINTED A COMMISSIONER OF CONCILIATION UNDER YOUR DEPARTMENT AT A COMPENSATION OF $8 PER DIEM, WHEN ACTUALLY EMPLOYED, AND WHO HAS BEEN PAID HIS COMPENSATION WITHOUT DEDUCTION ON ACCOUNT OF THE RETIREMENT FUND. ALSO AS TO WHAT ADDITIONAL AMOUNT, IF ANY, IS DUE FROM HIM AS INTEREST ON THE AMOUNTS NOT DEDUCTED.
IT APPEARS THAT THROUGH A MISAPPREHENSION OF YOUR DEPARTMENT AS TO THE RETIREMENT STATUS OF MR. BROWN NO RETIREMENT FUND DEDUCTIONS FROM HIS COMPENSATION WERE MADE. YOUR SUBMISSION DOES NOT DISCLOSE WHETHER MR. BROWN HAS BEEN AUTHORITATIVELY AND FINALLY HELD TO BE ENTITLED TO THE BENEFIT OF THE RETIREMENT LAW, AND UPON THE FACTS SUBMITTED NO CONCLUSION UPON THAT POINT CAN BE REACHED BY THIS OFFICE. ASSUMING THAT HE IS SO ENTITLED THE QUESTION FOR DECISION IS WHAT DISPOSITION SHALL BE MADE OF THE PROCEEDS OF A CHECK FOR $170.76 WHICH MR. BROWN HAS TENDERED TO YOUR DEPARTMENT IN REFUND OF AMOUNTS PAID TO HIM FROM TIME TO TIME WHICH SHOULD HAVE BEEN DEDUCTED FROM HIS COMPENSATION ON ACCOUNT OF THE RETIREMENT FUND.
IT APPEARS THAT YOUR DEPARTMENT FORWARDED THE CHECK TO THE COMMISSIONER OF PENSIONS, WHO RETURNED IT UPON THE GROUND THAT HIS OFFICE HAD NO AUTHORITY UNDER THE RETIREMENT ACT OF MAY 22, 1920, 41 STAT., 614, TO COLLECT THIS MONEY.
UNDER THE RETIREMENT ACT AND THE PRACTICE ESTABLISHED THEREUNDER IT IS THE DUTY OF THE ADMINISTRATIVE OFFICES TO ESTIMATE IN ADVANCE AT THE BEGINNING OF THE YEAR THE AMOUNT TO BE DEDUCTED FROM SALARY ROLLS FOR A FISCAL YEAR AND TRANSFERRED TO THE RETIREMENT FUND AND TO MAKE PROPER DEDUCTIONS FROM SALARY PAYMENTS THROUGHOUT THE YEAR. FAILURE TO MAKE PROPER DEDUCTIONS IS AN ERROR OF THE ADMINISTRATIVE OFFICE, AND THE DUTY OF CORRECTING ANY SUCH ERROR IS UPON THAT OFFICE.
IF THE ESTIMATES AND TRANSFERS TO THE RETIREMENT FUND FOR THE SEVERAL FISCAL YEARS INVOLVED IN THIS CASE INCLUDED THE ESTIMATED COMPENSATION TO BE PAID TO MR. BROWN THE RETIREMENT FUND HAS RECEIVED ITS FULL CREDIT, AND THE MONEY REFUNDED BY HIM SHOULD BE DEPOSITED TO THE CREDIT OF THE SEVERAL APPROPRIATIONS UNDER WHICH IT WAS ERRONEOUSLY PAID. IF THE ESTIMATES AND TRANSFERS DID NOT INCLUDE HIS ESTIMATED COMPENSATION THE REFUND SHOULD BE DEPOSITED TO THE CREDIT OF THE RETIREMENT FUND.
SECTION 10 OF THE RETIREMENT ACT PROVIDES FOR COLLECTION OF INTEREST ON AMOUNTS COLLECTED FROM EMPLOYEES WHO ARE TRANSFERRED TO A CLASSIFIED STATUS OR REINSTATED THEREIN, AS A BASIS FOR SERVICE CREDIT IN A FORMER STATUS, BUT THERE APPEARS IN THE LAW NO PROVISION FOR COLLECTION OF INTEREST ON REFUND OF THE AMOUNT OF SALARY DEDUCTIONS OF THOSE IN A CLASSIFIED STATUS WHICH SHOULD HAVE BEEN MADE BY THE ADMINISTRATIVE OFFICE BUT WERE NOT SO MADE. THE ERROR IN NOT MAKING THE DEDUCTION IN THIS CASE, ASSUMING THAT IT WAS AN ERROR, WAS THE ERROR OF THE ADMINISTRATIVE OFFICE FOR WHICH THE EMPLOYEE IS NOT RESPONSIBLE. NO INTEREST ON THE AMOUNTS REFUNDED SHOULD BE COLLECTED IN THIS CASE AT THIS TIME. IN CASE OF CLAIM FOR REFUND OR RETIREMENT HEREAFTER, THE EMPLOYEE HAVING HAD THE MONEY NOW REFUNDED UNTIL THE TIME OF ITS DEPOSIT, INTEREST IN HIS FAVOR SHOULD BE COMPUTED ONLY FROM THE DATE OF DEPOSIT.