B-104522, NOVEMBER 16, 1951, 31 COMP. GEN. 178

B-104522, NOVEMBER 16, 1951, 31 COMP. GEN. 178

INTEREST - SOLDIERS' SAVINGS DEPOSITS - REDEPOSIT UPON REENLISTMENT AN ENLISTED MAN WHO IS DISCHARGED AND REENLISTS IS REQUIRED TO FURNISH THE OFFICER HAVING CUSTODY OF HIS MILITARY PAY RECORD A WRITTEN ORDER REQUESTING TRANSFER OF HIS SAVINGS DEPOSITS, MADE IN HIS FORMER ENLISTMENT, TO A NEW ACCOUNT BEFORE INTEREST WILL ACCRUE ON SUCH DEPOSITS UNDER THE REENLISTMENT, SO THAT A SOLDIER WHO, UPON DISCHARGE AND REENLISTMENT, RECEIVED GENERAL ACCOUNTING OFFICER SETTLEMENT FOR SUCH DEPOSITS IS NOT ENTITLED TO INTEREST THEREON BETWEEN THE DATE OF REENLISTMENT AND THE DATE OF PAYMENT.

ASSISTANT COMPTROLLER GENERAL YATES TO SERGEANT ROBERT W. KOCHER, UNITED STATES ARMY, NOVEMBER 16, 1951:

REFERENCE IS MADE TO YOUR LETTER OF JUNE 21, 1951, REQUESTING REVIEW OF A SETTLEMENT OF THIS OFFICE DATED MAY 7, 1951, BY WHICH YOU WERE ALLOWED THE SUM OF $11,446.64 REPRESENTING SOLDIER'S DEPOSITS IN THE SUM OF $10,610 AND INTEREST THEREON IN THE SUM OF $836.64, COMPUTED TO THE DATE OF YOUR DISCHARGE FROM THE ARMY ON JANUARY 6, 1951.

YOU STATE THAT YOU REENLISTED IN THE ARMY ON JANUARY 7, 1951, FOLLOWING YOUR DISCHARGE THE PRECEDING DAY; THAT AT THE TIME OF DISCHARGE YOU WERE INFORMED BY THE FINANCE OFFICER THAT HE COULD NOT PAY YOUR SOLDIER'S DEPOSITS BECAUSE THE FIRST TWO DEPOSITS WERE RECORDED ON YOUR SERVICE RECORD BUT NOT ON YOUR MILITARY PAY CARD; THAT HE THEN WROTE TO THE ARMY FINANCE CENTER, ST. LOUIS, MISSOURI, FOR VERIFICATION OF THE AMOUNT OF THE DEPOSITS; THAT THE ST. LOUIS OFFICE SENT A CLAIM FORM WHICH YOU EXECUTED AND RETURNED WITH THE REQUEST THAT THE TOTAL AMOUNT DEPOSITED, TOGETHER WITH THE ACCRUED INTEREST, BE REDEPOSITED AS OF THE DATE OF YOUR REENLISTMENT; AND THAT PAYMENT WAS MADE ON YOUR CLAIM BY CHECK DATED MAY 28, 1951, ISSUED PURSUANT TO THE AFOREMENTIONED SETTLEMENT. YOU CONTEND THAT YOU ARE ENTITLED TO ADDITIONAL INTEREST IN THE AMOUNT OF APPROXIMATELY $163.56 FOR THE PERIOD JANUARY 7 TO MAY 28, 1951.

SECTION 1305, 1306 AND 1307, REVISED STATUTES, 10 U.S.C. 906, 907, AND 908, PROVIDE:

ANY ENLISTED MAN OF THE ARMY MAY DEPOSIT HIS SAVINGS, IN SUMS NOT LESS THAN $5, WITH ANY FINANCE OFFICER, WHO SHALL FURNISH HIM A DEPOSIT BOOK, IN WHICH SHALL BE ENTERED THE NAME OF THE FINANCE AND OF THE SOLDIER, AND THE AMOUNT, DATE, AND PLACE OF SUCH DEPOSIT. ANY AMOUNT HERETOFORE OR HEREAFTER SO DEPOSITED SHALL BE HELD DURING SUCH PERIOD OF HIS SERVICE AS MAY BE PRESCRIBED BY THE SECRETARY OF WAR; SHALL BE ACCOUNTED FOR IN THE SAME MANNER AS OTHER PUBLIC FUNDS; SHALL BE DEPOSITED IN THE TREASURY OF THE UNITED STATES AND KEPT AS A SEPARATE FUND, KNOWN AS PAY OF THE ARMY DEPOSIT FUND, REPAYMENT OF WHICH TO THE ENLISTED MAN, OR TO HIS HEIRS OR REPRESENTATIVES, SHALL BE MADE OUT OF THE FUND CREATED BY SAID DEPOSITS; SHALL NOT BE SUBJECT TO FORFEITURE BY SENTENCE OF COURT-MARTIAL, BUT SHALL BE FORFEITED BY DESERTION; AND SHALL BE EXEMPT FROM LIABILITY FOR SUCH SOLDIER'S DEBT: PROVIDED, THAT THE GOVERNMENT SHALL BE LIABLE FOR THE AMOUNT DEPOSITED TO THE PERSON SO DEPOSITING THE SAME.

FOR ANY SUMS NOT LESS THAN $5 SO DEPOSITED FOR THE PERIOD OF SIX MONTHS, OR LONGER, THE SOLDIER, ON HIS FINAL DISCHARGE OR AT SUCH TIME OR TIMES PRIOR THERETO AS MAY BE PRESCRIBED BY THE SECRETARY OF WAR, SHALL BE PAID INTEREST AT THE RATE OF 4 PERCENTUM PER ANNUM.

THE SYSTEM OF DEPOSITS HEREIN ESTABLISHED SHALL BE CARRIED INTO EXECUTION UNDER SUCH REGULATIONS AS MAY BE ESTABLISHED BY THE SECRETARY OF WAR.

DEPARTMENT OF THE ARMY SPECIAL REGULATION NO. 35-1550-1, DATED OCTOBER 10, 1950, PROVIDES IN PART:

9. REPAYMENT OF DEPOSITS.--- A. WHEN REPAYMENT AUTHORIZED.--- DEPOSITS WITH ACCRUED INTEREST ARE AUTHORIZED TO BE REPAID---

(1) UPON DISCHARGE OR RETIREMENT FROM THE SERVICE, UNLESS DISCHARGE RESULTS FROM THE ACT OF DESERTION OF WHICH THE DEPOSITOR HAS BEEN DULY CONVICTED; OR

10. INTEREST.--- A. GENERAL.--- FOR ANY SUMS NOT LESS THAN $5 DEPOSITED FOR A PERIOD OF 6 MONTHS OR LONGER, THE DEPOSITOR, UPON REPAYMENT, WILL BE PAID INTEREST AT THE RATE OF 4 PERCENT PER ANNUM ON THE AMOUNT REPAID TO INCLUDE DATE OF REPAYMENT. ACCRUED INTEREST WILL BE PAID AT THE SAME TIME THAT DEPOSITS ARE REPAID. FOR INTEREST TABLES, SEE SR 35-1550-5 AFR 173- 80.

B. PERIOD DURING WHICH INTEREST ACCRUES.

(1) IN COMPUTING INTEREST, THE DAY OF DEPOSIT SHOULD BE EXCLUDED AND THE DAY OF DISCHARGE OR RETIREMENT SHOULD BE INCLUDED (SEE 16 COMP. DEC. 30). THE DATES FOLLOWING THE DATES OF DEPOSIT, AS SHOWN IN THE DEPOSIT BOOK, WILL BE USED IN DETERMINING THE DATES OF COMMENCEMENT OF INTEREST.

(2) A DEPOSITOR IS ENTITLED TO INTEREST ON DEPOSITS TO INCLUDE DATE DISCHARGE OR RETIREMENT, BUT INTEREST DOES NOT ACCRUE ON AMOUNTS WHICH HAVE BEEN ON DEPOSIT LESS THAN 6 MONTHS AT DATE OF DISCHARGE OR RETIREMENT. SEE 8 COMP. DEC. 739.

12. REDEPOSIT ON REENLISTMENT.--- A DISCHARGED SOLDIER OR AIRMAN WHO AFTER REENLISTMENT DESIRES THAT ALL OR A PART OF THE MONEY (INCLUDING DEPOSITS AND INTEREST THEREON) DUE HIM ON DISCHARGE BE REDEPOSITED UNDER PARAGRAPH 1 MUST FURNISH TO THE DISBURSING OFFICER OR CLASS B AGENT OFFICER HAVING CUSTODY OF HIS MILITARY PAY RECORD A WRITTEN ORDER REQUESTING THAT SUCH PART OF THE AMOUNT DUE AS HE MAY DESIRE TO DEPOSIT BE TRANSFERRED TO HIS NEW MILITARY PAY RECORD. THE DISBURSING OFFICER WILL ATTACH THIS ORDER TO STANDARD FORM 1049 BY WHICH REPAYMENT WAS SO DEPOSITED WILL BE TREATED AS IF ACTUALLY REPAID IN CASH AND THEN DEPOSITED IN CASH. THE WRITTEN ORDER FOR DEPOSIT OF AN AMOUNT DUE ON SEPARATION WILL BE ACCEPTED AS A VALID ACKNOWLEDGMENT OF RECEIPT OF PAYMENT (SEE 14 COMP. DEC. 667). DEPOSITS RECEIVED UNDER THIS PARAGRAPH WILL BE ENTERED ON A NEW DEPOSIT BOOK AND ACCOUNTED FOR IN THE SAME MANNER AS PRESCRIBED IN THESE REGULATIONS FOR ALL DEPOSITS.

THE STATUTES AND REGULATIONS CONTEMPLATE THAT THE DEPOSITS MADE THEREUNDER WILL BE MADE DURING THE TERM OF THE ENLISTED MAN'S ENLISTMENT AND WILL BE PAID TO HIM UPON HIS DISCHARGE. THE RULE HAS BEEN ESTABLISHED AT LEAST SINCE 1885 THAT WHERE AN ENLISTED MAN FAILS TO RECEIVE HIS DEPOSITS AT THE TIME OF DISCHARGE HE IS ENTITLED TO INTEREST FROM THE DAY FOLLOWING THE DATE OF DEPOSIT UP TO AND INCLUDING THE DATE OF HIS DISCHARGE ONLY. IN A DECISION OF A COMPTROLLER OF THE TREASURY DATED APRIL 21, 1902, 8 COMP. DEC. 739, 741, THERE WAS CITED WITH APPROVAL A DECISION DATED SEPTEMBER 30, 1885, TO THE EFFECT THAT AFTER DISCHARGE A SOLDIER'S DEPOSITS REMAIN IN THE POSSESSION OF THE UNITED STATES WITHOUT INTEREST UNTIL PAID.

IN THE CASE OF AN ENLISTED MAN WHO IS DISCHARGED AND SUBSEQUENTLY REENLISTS, PARAGRAPH 12 OF THE ABOVE-QUOTED REGULATIONS DOES NOT REQUIRE THAT THE AMOUNT TO HIS CREDIT AS A DEPOSIT BE WITHDRAWN AND REDEPOSITED, BUT BEFORE THE AMOUNT OF THE DEPOSITS MADE IN HIS FORMER ENLISTMENT CAN BE TRANSFERRED TO A NEW ACCOUNT THE REGULATION REQUIRES THAT HE FURNISH THE OFFICER HAVING CUSTODY OF HIS MILITARY PAY RECORD A WRITTEN ORDER REQUESTING SUCH TRANSFER. HOWEVER, THE AMOUNT STANDING TO YOUR CREDIT WAS NOT DEPOSITED IN A NEW ACCOUNT AT THE TIME OF YOUR ENLISTMENT OF JANUARY 7, 1951, BUT WAS ALLOWED PURSUANT TO A CLAIMS DIVISION SETTLEMENT BASED UPON YOUR CLAIM THEREFOR. HENCE, THERE IS NO AUTHORITY FOR THE PAYMENT OF INTEREST FOR THE PERIOD COVERED BY YOUR CLAIM.