MARCH 17, 1924, 3 COMP. GEN. 654

MARCH 17, 1924, 3 COMP. GEN. 654

RETIREMENT DEDUCTIONS - QUARTERS IN KIND AS THE UNITED STATES PUBLIC HEALTH SERVICE REGULATIONS PRESCRIBE AN ANNUAL RATE OF PAY FOR PHARMACISTS WHEN NOT FURNISHED QUARTERS AND A LESSER RATE WHEN FURNISHED QUARTERS, THE 2 1/2 PERCENTUM DEDUCTION PRESCRIBED BY SECTION 8 OF THE ACT OF MAY 22, 1920, 41 STAT. 618, SHOULD BE COMPUTED ON THE ANNUAL BASIS OF PAY TO WHICH A PHARMACIST WOULD BE ENTITLED WHEN NOT FURNISHED QUARTERS, WHETHER OR NOT HE IS ACTUALLY FURNISHED QUARTERS IN KIND.

DECISION BY COMPTROLLER GENERAL MCCARL, MARCH 17, 1924:

THERE IS BEFORE THIS OFFICE THE QUESTION AS TO THE PROPER BASIS UPON WHICH TO COMPUTE THE 2 1/2 PERCENTUM DEDUCTION UNDER THE ACT OF MAY 22, 1920, 41 STAT., 614, AS IT INVOLVES THE PAYMENT OF COMPENSATION TO R. E. KNOUSE, A PHARMACIST OF THE FIRST CLASS, UNITED STATES PUBLIC HEALTH SERVICE.

THE RATES OF COMPENSATION FOR PHARMACISTS ARE PRESCRIBED IN ARTICLE 123 1/2, REGULATIONS FOR THE GOVERNMENT OF THE UNITED STATES PUBLIC HEALTH SERVICE, 1920:

THE COMPENSATION OF A PHARMACIST SHALL CONSIST OF (1) PAY, (2) ADDITIONAL ALLOWANCES FOR TRAVEL.

1. THE PAY OF PHARMACISTS SHALL BE AT THE FOLLOWING ANNUAL RATES: PHARMACISTS OF THE FIRST CLASS SHALL RECEIVE $3,500 PER ANNUM, * * * WITHOUT CONGRESSIONAL BONUS OR ALLOWANCES OF ANY KIND, EXCEPT FOR TRAVEL ON PERMANENT CHANGE OF STATION * * *.

3. THE PAY OF PHARMACISTS WHO ARE FURNISHED QUARTERS SHALL BE AT THE FOLLOWING ANNUAL RATES: PHARMACISTS OF THE FIRST CLASS, $2,960 * * *.

SECTION 8 OF THE ACT OF MAY 22, 1920, 41 STAT., 618, PROVIDES IN PART:

THAT BEGINNING ON THE FIRST DAY OF THE THIRD MONTH NEXT FOLLOWING THE PASSAGE OF THIS ACT AND MONTHLY THEREAFTER THERE SHALL BE DEDUCTED AND WITHHELD FROM THE BASIC SALARY, PAY, OR COMPENSATION OF EACH EMPLOYEE TO WHOM THIS ACT APPLIES A SUM EQUAL TO 2 1/2 PERCENTUM OF SUCH EMPLOYEE'S BASIC SALARY, PAY, OR COMPENSATION.

THE QUESTION PRESENT IS WHETHER THE MONETARY VALUE OF QUARTERS IN KIND FURNISHED A PHARMACIST OF THE FIRST CLASS IS REPRESENTED BY THE DIFFERENCE BETWEEN $3,500 AND $2,960 PER ANNUM, AND WHETHER WITHIN THE MEANING OF SECTION 8 OF THE ACT OF MAY 22, 1920, THERE SHOULD BE DEDUCTED FROM THE PAY OF A PHARMACIST OF THE FIRST CLASS, WHO IS FURNISHED QUARTERS, 2 1/2 PERCENTUM OF $3,500 OR OF $2,960.

THE ANSWER TO THE QUESTION IS FOUND IN THE FOLLOWING PROVISION IN SECTION 2 OF THE SAID ACT OF MAY 22, 1920, 41 STAT., 615:

THE TERM "BASIC SALARY, PAY, OR COMPENSATION" WHEREVER USED IN THIS ACT SHALL BE SO CONSTRUED AS TO EXCLUDE FROM THE OPERATION OF THE ACT ALL BONUSES, ALLOWANCES, OVERTIME PAY, OR SALARY, PAY, OR COMPENSATION GIVEN IN ADDITION TO THE BASE PAY OF THE POSITIONS AS FIXED BY LAW OR REGULATION.

AS FIXED BY THE REGULATIONS OF THE PUBLIC HEALTH SERVICE, THERE IS ONE BASIC SALARY RATE FOR PHARMACISTS OF THE FIRST CLASS, THAT IS "THE COMPENSATION OF A PHARMACIST SHALL CONSIST OF (1) PAY, (2) ADDITIONAL ALLOWANCES FOR TRAVEL.' PAY INCLUDES QUARTERS, AND THE FACT THAT THERE EXISTS ONE RATE WHEN QUARTERS ARE NOT FURNISHED AND ONE RATE WHEN QUARTERS ARE FURNISHED IS NOT MATERIAL, THE BASIC SALARY, PAY, OR COMPENSATION BEING INCLUSIVE OF QUARTERS.

ACCORDINGLY PAYMENT SHOULD BE MADE TO A PHARMACIST OF THE FIRST CLASS, FURNISHED QUARTERS, AT THE RATE OF $2,960 PER ANNUM LESS $87.50, 2 1/2 PERCENTUM OF $3,500, OR $2,872.50 PER ANNUM.