A-3551, OCTOBER 12, 1964, 44 COMP. GEN. 208

A-3551, OCTOBER 12, 1964, 44 COMP. GEN. 208

PAY - RETIRED - CERTIFICATES OF EXISTENCE THE REQUIREMENT TO OBTAIN REPORTS OF EXISTENCE PRIOR TO THE RELEASE OF RETIRED PAY CHECKS, WHEN CHECKS ARE MADE PAYABLE TO A THIRD PARTY FOR A MEMBER WHO IS MENTALLY INCOMPETENT, SENT TO A FOREIGN ADDRESS, OR MAILED TO A THIRD PERSON FOR NEGOTIATION UNDER A POWER OF ATTORNEY, RESULTING IN DELAYED RELEASE OF CHECKS, DISRUPTION OF MECHANIZED OPERATIONS, AND INCREASED EXPENSES, THE PROCEDURE MAY BE SIMPLIFIED AND THE REPORTS OF EXISTENCE OBTAINED ON A "ONE MONTH BEHIND BASIS," THE ADVANTAGE TO BE GAINED IN PERMITTING CHECKS TO BE MAILED AT THE END OF EACH MONTH, FOLLOWED BY RECEIPT OF THE REPORT VERIFYING THE RETIRED MEMBER'S EXISTENCE, OUTWEIGHING THE POSSIBLE RISK OF 1 MONTH'S OVERPAYMENT OF RETIRED PAY.

TO THE SECRETARY OF DEFENSE, OCTOBER 12, 1964:

REFERENCE IS MADE TO THE LETTER OF SEPTEMBER 22, 1964, FROM THE ASSISTANT SECRETARY OF DEFENSE (COMPTROLLER) REQUESTING A DECISION AS TO WHETHER REPORTS OF EXISTENCE WHICH NOW ARE REQUIRED TO BE OBTAINED PRIOR TO THE RELEASE OF RETIRED PAY CHECKS FOR CERTAIN RETIRED MILITARY PERSONNEL MAY BE OBTAINED EACH MONTH AFTER RELEASE OF THE RETIRED PAY CHECKS. DISCUSSION PERTAINING TO THE MATTER IS CONTAINED IN COMMITTEE ACTION NO. 346 OF THE DEPARTMENT OF DEFENSE MILITARY PAY AND ALLOWANCE COMMITTEE.

IN THE COMMITTEE ACTION IT IS STATED THAT REPORTS OF EXISTENCE ARE NOW REQUIRED PRIOR TO RELEASE OF RETIRED PAY CHECKS FOR CERTAIN RETIRED MEMBERS BY OUR DECISIONS OF APRIL 6, 1931, JUNE 23, 1931, MARCH 9, 1951, AND FEBRUARY 3, 1964, A-3551, (A) WHEN SUCH CHECKS ARE PAYABLE TO A THIRD PARTY FOR A MEMBER WHO IS MENTALLY INCOMPETENT, (B) WHEN CHECKS ARE MAILED TO A FOREIGN ADDRESS AND ARE DELIVERED THROUGH FOREIGN POSTAL CHANNELS, AND (C) WHEN CHECKS ARE MAILED TO THE ADDRESS OF A THIRD PERSON (OTHER THAN BANKS) AND NEGOTIATED UNDER POWER OF ATTORNEY, SUCH AS WIFE FOR SUPPORT OF CHILDREN, ETC.

IT IS STATED THAT UNDER PROCEDURES NOW IN EFFECT PAYMENTS ARE NOT MADE UNTIL REPORTS OF EXISTENCE ARE RECEIVED PROVING THAT RETIRED MEMBERS WERE ALIVE ON THE LAST DAY OF THE PERIOD FOR WHICH PAYMENT IS DUE. THE REPORT OF EXISTENCE IS MAILED WITH A CURRENT CHECK WITH INSTRUCTIONS TO COMPLETE IT NOT EARLIER THAN THE LAST DAY OF THE NEXT PAY PERIOD AND RETURN IT. THE RETIRED PAY CHECK FOR THAT PERIOD IS NOT RELEASED UNTIL THE FORM IS RETURNED. IT IS FURTHER STATED THAT THIS NOT ONLY RESULTS IN A DELAY IN THE RELEASE OF CHECKS, BUT ALSO RESULTS IN DISRUPTION OF THE HIGH VOLUME MECHANIZED OPERATION NOW IN USE BY THE SERVICES, INCREASES HANDLING COSTS AND OFTEN RESULTS IN EXPENDITURE OF TIME AND EFFORT IN INITIATING AND HANDLING CORRESPONDENCE. THE COMMITTEE ACTION CALLS ATTENTION TO THE FACT THAT, SINCE RETIRED PAY ACCOUNTS ARE STEADILY INCREASING, THE NUMBER OF RETIREES FOR WHOM REPORTS OF EXISTENCE ARE REQUIRED IS ALSO INCREASING PROPORTIONATELY.

IT IS PROPOSED THAT REPORTS OF EXISTENCE BE OBTAINED ON A "ONE MONTH BEHIND" BASIS, THAT IS, CHECKS WOULD BE MAILED AT THE END OF EACH MONTH AND LATER A RECEIPT OF THE REPORT WOULD VERIFY THE RETIRED MEMBER'S EXISTENCE. A REPORT WOULD BE ENCLOSED WITH EACH CHECK WITH INSTRUCTIONS TO COMPLETE AND RETURN IT. THUS, REPORTS OF EXISTENCE WOULD STILL BE REQUIRED ON A MONTHLY BASIS, BUT THERE WOULD BE AN AFTER-THE-FACT VERIFICATION OF THE MEMBER'S EXISTENCE, WHICH WOULD ELIMINATE THE DELAY IN RELEASE OF THE CHECKS, REDUCE HANDLING COSTS, SIMPLIFY PROCEDURES, AND THE MAXIMUM OVERPAYMENT WHICH COULD RESULT WOULD BE 1 MONTH'S RETIRED PAY. IS STATED THAT IT IS BELIEVED THAT THE ADVANTAGE TO BE GAINED WOULD OUTWEIGH THE SMALL RISK INVOLVED AND THAT SUCH A PROCEDURE WOULD NOT BE MUCH DIFFERENT THAN THAT EMPLOYED WHEN RETIRED PAY CHECKS ARE FORWARDED TO RETIRED MEMBERS RESIDING IN THE UNITED STATES WITHOUT A PRIOR VERIFICATION OF THE MEMBER'S EXISTENCE, THE RETIRED MEMBER'S PERSONAL ENDORSEMENT ON THE CHECK BEING CONSIDERED SUFFICIENT EVIDENCE OF HIS CONTINUED EXISTENCE.

IN VIEW OF THE TECHNOLOGICAL IMPROVEMENTS IN METHODS OF PAYMENT, RECORD KEEPING, AND COMMUNICATIONS WHICH HAVE OCCURRED IN RECENT YEARS, THERE IS NO OBJECTION TO THE CHANGE IN PROCEDURES SUGGESTED ABOVE. YOUR QUESTION IS ANSWERED IN THE AFFIRMATIVE.