B-154477, AUG. 31, 1964

B-154477, AUG. 31, 1964

TO COMMANDER M. L. CONNER, SC, USN, DEPARTMENT OF THE NAVY:

REFERENCE IS MADE TO YOUR REQUEST, FORWARDED UNDER DEPARTMENT OF DEFENSE MILITARY PAY AND ALLOWANCE COMMITTEE CONTROL NUMBER DO-N-778, FOR DECISION AS TO WHETHER THE RETIRED PAY OF COMMANDER CARL. E. RUNDQUIST, USNR, RETIRED, SHOULD BE COMPUTED EFFECTIVE OCTOBER 1, 1963, BASED ON SERVICE CREDITS ACCRUED ON MARCH 9, 1963, OR ON THE TOTAL ACCRUED THROUGH SEPTEMBER 30, 1963.

YOU STATE THAT COMMANDER RUNDQUIST REACHED THE AGE OF 60 YEARS ON MARCH 8, 1963, THEREBY QUALIFYING FOR RETIRED PAY UNDER 10 U.S.C. 1331, HAVING PREVIOUSLY COMPLETED 20 YEARS OF SATISFACTORY FEDERAL SERVICE; THAT HE WAS THEN SERVING ON ACTIVE DUTY AND WAS RETAINED ON ACTIVE DUTY BY ORDER OF THE SECRETARY OF THE NAVY PURSUANT TO 10 U.S.C. 676; THAT THE RETENTION IS SCHEDULED TO TERMINATE JUNE 30, 1965; AND THAT HE SELECTED OCTOBER 1, 1963, AS THE EFFECTIVE DATE OF HIS RETIREMENT UNDER 10 U.S.C. 1331. SINCE HE HAD FILED AN ELECTION UNDER 10 U.S.C. 1431 TO ACCEPT A REDUCED AMOUNT OF RETIRED PAY IN ORDER TO PROVIDE A SURVIVOR'S ANNUITY FOR HIS DEPENDENTS, IT IS NECESSARY TO DETERMINE THE CORRECT NUMBER OF POINTS ON WHICH HIS RETIRED PAY IS COMPUTED AS OF OCTOBER 1, 1963, IN ORDER TO ESTABLISH THE PROPER REDUCTION. YOU STATE THAT PENDING RECEIPT OF OUR DECISION THE ANNUITY COST IS BEING WITHHELD FROM COMMANDER RUNDQUIST'S ACTIVE DUTY PAY AT THE RATE APPLICABLE IF HIS RETIRED PAY IS COMPUTED ON 6930 POINTS, THE TOTAL ACCRUED THROUGH SEPTEMBER 30, 1963.

ALTHOUGH THE MEMBER MET THE AGE AND SERVICE REQUIREMENTS AND THEREFORE WAS ELIGIBLE TO APPLY FOR RETIRED PAY UNDER 10 U.S.C. 1331 ON MARCH 8, 1963, THERE IS NO REQUIREMENT IN THE LAW THAT HIS RETIRED PAY ENTITLEMENT BE ESTABLISHED AS OF THAT DATE. WE HAVE HELD THAT A PERSON WHO IS QUALIFIED FOR SUCH RETIRED PAY MAY ELECT TO HAVE THAT RETIRED PAY ACCRUE EFFECTIVE AS OF THE DATE OF QUALIFICATION OR AS OF ANY SUBSEQUENT DATE. 38 COMP. GEN. 647.

SINCE COMMANDER RUNDQUIST WAS RETAINED ON ACTIVE DUTY UNDER 10 U.S.C. 676 FROM THE DATE OF QUALIFICATION TO OCTOBER 1, 1963, THE EFFECTIVE DATE OF RETIREMENT, AND SERVICE DURING A PERIOD OF SUCH RETENTION IS CREDITABLE TO THE MEMBER FOR ALL PURPOSES, THE COMPUTATION OF HIS RETIRED PAY AS OF OCTOBER 1, 1963, SHOULD BE BASED ON THE TOTAL POINTS EARNED THROUGH SEPTEMBER 30, 1963. ALTHOUGH THE RETIRED PAY TO BE RECEIVED BY HIM AFTER HIS RELEASE FROM ACTIVE DUTY WILL BE RECOMPUTED AS OF THE DATE HIS RETENTION UNDER 10 U.S.C. 676 TERMINATES, THE REDUCTION IN THAT RETIRED PAY FOR SURVIVOR ANNUITY WILL BE MADE AT THE RATE DETERMINED AS OF OCTOBER 1, 1963. 33 COMP. GEN. 491.