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B-134614, SEP. 4, 1963

B-134614 Sep 04, 1963
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THE ACTING ASSISTANT SECRETARY FOR ADMINISTRATION REQUESTED OUR ADVICE WHETHER THERE WOULD BE ANY OBJECTION IF THE DEPARTMENT OF STATE WERE TO APPLY THE RATIONALE OF THE COURT OF CLAIMS' ORDER OF MAY 3. WE DO NOT HAVE COPIES OF THE OFFICIAL RECORDS OR OF THE DETAILED COMPUTATIONS WHICH WERE ADMINISTRATIVELY FURNISHED THE DEPARTMENT OF JUSTICE PRELIMINARY TO THE STIPULATION AGREEMENT WHICH WAS FILED APRIL 29. HOWEVER WE ARE INFORMED THAT THE JUDGMENT SUM OF $32. SERVICE WOULD HAVE ACCRUED AS THOUGH HE HAD A CONTINUITY OF SERVICE AS A FOREIGN SERVICE OFFICER. SERVICE SHOULD HAVE RECEIVED ON JULY 1. WHICH WAS CREDITED TO MR. WE ARE INFORMED THAT SUCH AMOUNT REPRESENTS THE TOTAL NET ADJUSTMENT DUE THE FUND.

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B-134614, SEP. 4, 1963

TO THE SECRETARY OF STATE:

ON JULY 15, 1963, THE ACTING ASSISTANT SECRETARY FOR ADMINISTRATION REQUESTED OUR ADVICE WHETHER THERE WOULD BE ANY OBJECTION IF THE DEPARTMENT OF STATE WERE TO APPLY THE RATIONALE OF THE COURT OF CLAIMS' ORDER OF MAY 3, 1963, IN THE CASE OF JOHN S. SERVICE V. THE UNITED STATES, CT.CL. NO. 562-57, TO ALL FUTURE RETIREMENT PAYMENTS DUE MR. SERVICE AFTER MAY 3, 1963, FROM THE FOREIGN SERVICE RETIREMENT AND DISABILITY FUND.

BY THAT ORDER OF MAY 3 THE COURT OF CLAIMS ENTERED JUDGMENT FOR $32,500 IN FAVOR OF THE PLAINTIFF. WE DO NOT HAVE COPIES OF THE OFFICIAL RECORDS OR OF THE DETAILED COMPUTATIONS WHICH WERE ADMINISTRATIVELY FURNISHED THE DEPARTMENT OF JUSTICE PRELIMINARY TO THE STIPULATION AGREEMENT WHICH WAS FILED APRIL 29, 1963, IN THE COURT OF CLAIMS. HOWEVER WE ARE INFORMED THAT THE JUDGMENT SUM OF $32,500 EMBRACES ALL OF THE IN-CLASS STEP INCREASES OF SALARY RATES (AS INCREASED BY THE GENERAL STATUTES) WHICH MR. SERVICE WOULD HAVE ACCRUED AS THOUGH HE HAD A CONTINUITY OF SERVICE AS A FOREIGN SERVICE OFFICER--- CLASS 2 FROM DECEMBER 15, 1951, TO JULY 8, 1957, WITHIN THE PURVIEW OF THE UNITED STATES DISTRICT COURT'S ORDER OF JULY 3, 1957, AND OF SECTION 625 OF THE FOREIGN SERVICE ACT OF 1946, 22 U.S.C. 995.

FURTHER, WE UNDERSTAND, THE COURT OF CLAIMS' JUDGMENT INCLUDES SIMILAR ADJUSTMENTS FOR THE PERIOD JULY 9, 1957, TO MAY 31, 1962, CORRESPONDING TO THE RATES OF THE CLASS 2 SIXTH AND SEVENTH STEP INCREASES MR. SERVICE SHOULD HAVE RECEIVED ON JULY 1, 1957, AND JULY 1, 1958, AS INCREASED BY THE GENERAL STATUTES, PUB.L. 85-462 AND PUB.L. 86-568, RESPECTIVELY.

AS TO THE $525 ITEM SET ASIDE IN THE COURT'S JUDGMENT, WHICH WAS CREDITED TO MR. SERVICE'S RETIREMENT ACCOUNT, WE ARE INFORMED THAT SUCH AMOUNT REPRESENTS THE TOTAL NET ADJUSTMENT DUE THE FUND, INCLUDING SERVICE CONSTRUCTIVE OR OTHERWISE IN THE SEVERAL STEPS REFERRED TO ABOVE.

THEREFORE, AS TO THE SPECIFIC QUESTION PRESENTED IN THE ACTING ASSISTANT SECRETARY'S LETTER OF JULY 15, 1963, OUR VIEW IS THAT MR. SERVICE'S ANNUITY SHOULD BE RECOMPUTED EFFECTIVE JUNE 1, 1962, THE DATE OF HIS RETIREMENT, SO AS TO INCLUDE THE IN-CLASS STEP INCREASES DISCUSSED ABOVE, NOTWITHSTANDING THAT THE SUM OF $525 WAS NOT ACTUALLY CREDITED TO HIS RETIREMENT ACCOUNT UNTIL AFTER THE COURT OF CLAIMS' JUDGMENT OF MAY 3, 1963.

THE PAPERS WHICH ACCOMPANIED THE LETTER OF JULY 15 ARE RETURNED HEREWITH.

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