B-157665, JUN. 19, 1970
Highlights
SECRETARY: FURTHER REFERENCE IS MADE TO LETTER DATED MARCH 30. LENGTH OF SERVICE AND RATE OF BASIC PAY AT THE TIME OF RETIREMENT ARE IDENTICAL WILL BE ENTITLED TO RECEIVE THE SAME RATE OF RETIRED PAY. THE QUESTION IS STATED AND DISCUSSED IN DEPARTMENT OF DEFENSE MILITARY PAY AND ALLOWANCE COMMITTEE ACTION NO. 440. THE QUESTION PRESENTED IS AS FOLLOWS: "DOES SECTION 1401A OF TITLE 10 U.S.C. LENGTH OF SERVICE AND RATE OF BASIC PAY AT THE TIME OF RETIREMENT ARE IDENTICAL WILL RECEIVE THE SAME RATE OF RETIRED PAY?". THE QUESTION AND THE DISCUSSION IN THE COMMITTEE ACTION IS PREMISED ON THE RATES OF ACTIVE DUTY PAY THAT WERE IN EFFECT ON JULY 1. AS YOU ARE AWARE. SINCE WE HAVE BEEN INFORMALLY ADVISED THAT THE PROBLEMS DISCUSSED IN THE COMMITTEE ACTION DO NOT NOW EXIST BECAUSE OF THE NEW MILITARY PAY INCREASE.
B-157665, JUN. 19, 1970
TO MR. SECRETARY:
FURTHER REFERENCE IS MADE TO LETTER DATED MARCH 30, 1970, FROM THE DEPUTY ASSISTANT SECRETARY OF DEFENSE (COMPTROLLER) REQUESTING A DECISION WHETHER UNDER 10 U.S.C. 1401A TWO MEMBERS OF THE UNIFORMED SERVICES WHOSE GRADE, LENGTH OF SERVICE AND RATE OF BASIC PAY AT THE TIME OF RETIREMENT ARE IDENTICAL WILL BE ENTITLED TO RECEIVE THE SAME RATE OF RETIRED PAY. THE QUESTION IS STATED AND DISCUSSED IN DEPARTMENT OF DEFENSE MILITARY PAY AND ALLOWANCE COMMITTEE ACTION NO. 440.
THE QUESTION PRESENTED IS AS FOLLOWS:
"DOES SECTION 1401A OF TITLE 10 U.S.C. INSURE THAT TWO MILITARY MEMBERS WHOSE GRADE, LENGTH OF SERVICE AND RATE OF BASIC PAY AT THE TIME OF RETIREMENT ARE IDENTICAL WILL RECEIVE THE SAME RATE OF RETIRED PAY?"
THE PROVISIONS OF 10 U.S.C. 1401AB) CURRENTLY IN EFFECT (AS AMENDED OCTOBER 31, 1969, BY PUBLIC LAW 91-179) REQUIRE THAT RETIRED PAY AND RETAINER PAY BE ADJUSTED UNDER THE FORMULA THERE PRESCRIBED WHEN THE CONSUMER PRICE INDEX HAS SHOWN FOR 3 CONSECUTIVE MONTHS AN INCREASE OF AT LEAST 3 PERCENT OVER THE BASE INDEX (THAT USED AS THE BASIS FOR THE MOST RECENT ADJUSTMENT).
THE QUESTION AND THE DISCUSSION IN THE COMMITTEE ACTION IS PREMISED ON THE RATES OF ACTIVE DUTY PAY THAT WERE IN EFFECT ON JULY 1, 1969, FOR THE PURPOSE OF COMPUTING AND ADJUSTING RETIRED PAY UNDER THE CONSUMER PRICE INDEX FORMULA AND ON AN EXPECTED GENERAL MILITARY PAY INCREASE EFFECTIVE JANUARY 1, 1971.
AS YOU ARE AWARE, SINCE THE SUBMISSION OF COMMITTEE ACTION NO. 440 THERE HAS BEEN AUTHORIZED A GENERAL MILITARY PAY INCREASE, RETROACTIVE TO JANUARY 1, 1970, PURSUANT TO SECTION 8(A) OF THE ACT OF DECEMBER 16, 1967, PUBLIC LAW 90-207, 81 STAT. 649, 654, THE FEDERAL EMPLOYEES SALARY ACT OF 1970, PUBLIC LAW 91-231, APRIL 15, 1970, 84 STAT. 195, AND EXECUTIVE ORDER 11525 DATED APRIL 15, 1970.
SINCE WE HAVE BEEN INFORMALLY ADVISED THAT THE PROBLEMS DISCUSSED IN THE COMMITTEE ACTION DO NOT NOW EXIST BECAUSE OF THE NEW MILITARY PAY INCREASE, WE SEE NO REASON TO CONSIDER THOSE PROBLEMS AT THIS TIME. IF, AT A LATER DATE, SIMILAR PROBLEMS ARISE IN APPLYING THE CONSUMER PRICE INDEX FORMULA, WE WILL BE GLAD TO CONSIDER SUCH MATTERS AT THAT TIME.