B-136631, JUL. 21, 1958

B-136631, JUL. 21, 1958

TO CHIEF WARRANT OFFICER CONSTANTINE COVETNOS:

THE FINANCE CENTER, U.S. ARMY, INDIANAPOLIS, INDIANA, FORWARDED HERE YOUR LETTER OF APRIL 4, 1958, WITH ENCLOSURES, CONCERNING YOUR INDEBTEDNESS TO THE UNITED STATES IN THE AMOUNT OF $300, REPRESENTING MUSTERING-OUT PAY PAID TO YOU AT THE TIME OF YOUR RELEASE FROM ACTIVE DUTY AS A CAPTAIN, ARMY OF THE UNITED STATES, ON NOVEMBER 30, 1957. YOU SAY THAT YOU ARE CURRENTLY LIQUIDATING YOUR INDEBTEDNESS AT THE RATE OF $50 A MONTH, EFFECTIVE WITH THE MONTH OF FEBRUARY 1958, AND YOU REQUEST THAT YOUR LETTER BE CONSIDERED AS A CLAIM FOR CONSIDERATION IN OUR OFFICE.

SINCE YOUR INDEBTEDNESS WILL NOT BE LIQUIDATED UNTIL THE LAST OF THIS MONTH, YOUR CLAIM FOR REFUND OF THE $300 IS NOT PROPERLY FOR CONSIDERATION AT THIS TIME. YOU MAY BE ADVISED, HOWEVER, THAT ON THE RECORD BEFORE US, IT APPEARS THAT THE ACTION TAKEN BY THE DEPARTMENT OF THE ARMY ON YOUR CASE WAS PROPER. IN THAT CONNECTION, IT APPEARS THAT THE DEPARTMENT OF THE ARMY HAS DETERMINED THAT SINCE YOU REVERTED TO YOUR REGULAR ARMY WARRANT OFFICER STATUS FROM YOUR STATUS AS A COMMISSIONED OFFICER (CAPTAIN, ARMY OF THE UNITED STATES), YOU WERE NOT ENTITLED TO MUSTERING- OUT PAY SINCE YOUR RELEASE FROM ACTIVE DUTY ON NOVEMBER 30, 1957, WAS NOT FOR THE PURPOSE OF ACCEPTING A REGULAR ARMY WARRANT APPOINTMENT.

MUSTERING-OUT PAY AS AUTHORIZED UNDER TITLE V OF THE ACT OF JULY 16, 1952, 66 STAT. 688, IS PAYABLE IN INSTALLMENTS OR IN A LUMP SUM AS PROVIDED IN SECTION 502 OF THAT ACT ON AND AFTER "THE TIME OF FINAL DISCHARGE OR ULTIMATE RELIEF FROM ACTIVE SERVICE, OR AT THE OPTION OF THE PERSON SO ELIGIBLE, AT THE TIME OF DISCHARGE OR RELEASE FOR THE PURPOSE OF ENLISTMENT, REENLISTMENT, OR APPOINTMENT IN A REGULAR COMPONENT OF THE ARMED FORCES.' IF A PERSON ACCEPTS AN APPOINTMENT AS AN OFFICER IN THE REGULAR ARMY, NO RIGHT TO MUSTERING-OUT PAY CAN ACCRUE IN CONNECTION WITH THAT ACTION UNLESS SUCH PERSON IS DISCHARGED OR RELEASED FROM ACTIVE DUTY FOR THE PURPOSE OF ACCEPTING THE REGULAR ARMY COMMISSION. THE RECORD INDICATES THAT WHILE SERVING AS AN OFFICER IN THE ARMY OF THE UNITED STATES, YOU ACCEPTED AN APPOINTMENT AS A REGULAR ARMY WARRANT OFFICER BUT CONTINUED TO SERVE ON ACTIVE DUTY AS A COMMISSIONED OFFICER IN THE ARMY OF THE UNITED STATES. PURSUANT TO SPECIAL ORDERS NO. 204, DATED OCTOBER 17, 1957, HEADQUARTERS DEPARTMENT OF THE ARMY, WASHINGTON 25, D.C., YOU WERE RELEASED FROM ACTIVE DUTY AS A CAPTAIN, ARMY OF THE UNITED STATES, EFFECTIVE NOVEMBER 30, 1957, AND YOUR AUS APPOINTMENT WAS TERMINATED ON THAT DATE AS PROVIDED IN THE ORDERS. THE ORDERS FURTHER PROVIDED THAT YOU WOULD "REVERT" TO YOUR REGULAR ARMY CHIEF WARRANT OFFICER STATUS AND YOU CONTINUED TO SERVE IN THAT STATUS. HENCE, IT DOES NOT APPEAR THAT YOU WERE DISCHARGED OR RELEASED WITHIN THE MEANING OF THE STATUTE SO AS TO BE ENTITLED TO MUSTERING-OUT PAY. COMPARE OUR DECISION OF JULY 3, 1957, B- 131444, COPY ATTACHED.

YOU ARE FURTHER ADVISED, HOWEVER, THAT IF UPON REFUNDING THE FULL AMOUNT OF YOUR INDEBTEDNESS YOU STILL BELIEVE YOU ARE ENTITLED TO MUSTERING-OUT PAY, YOU MAY FILE A CLAIM THEREFOR IN OUR OFFICE ADDRESSED TO THE CLAIMS DIVISION, GENERAL ACCOUNTING OFFICE, WASHINGTON 25, D.C., SETTING FORTH ALL PERTINENT FACTS AND ANY EVIDENCE AND ARGUMENTS YOU MAY CARE TO PRESENT IN SUPPORT OF YOUR CLAIM.