B-175125, JUN 20, 1972

B-175125, JUN 20, 1972

MILITARY PERSONNEL - SOLDIERS' DEPOSITS ACCOUNT - INTEREST AFTER DISCHARGE - ENTITLEMENT DECISION SUSTAINING PRIOR DISALLOWANCE OF A CLAIM OF LEON B. TAYLOR, FOR INTEREST ON SAVINGS IN A SOLDIERS' DEPOSITS ACCOUNT SUBSEQUENT TO HIS DISCHARGE FROM THE ARMY. INTEREST ON CLAIMS AGAINST THE UNITED STATES ARE NOT RECOVERABLE ABSENT EXPRESS STATUTORY AUTHORITY THEREFOR. UNITED STATES V. TILLAMOOKS, 341 U.S. 48 (1951). SINCE THE AUTHORITY CONTAINED IN 10 U.S.C. 906, 907, AND 908 (1952 ED.) PROHIBITS THE ACCRUAL OF INTEREST AFTER THE DISCHARGE DATE, THERE EXISTS NO BASIS FOR PAYMENT OF THE SUBJECT CLAIM. FURTHER, THE CIRCUMSTANCES OF MR. TAYLOR'S CASE REVEAL NO SPECIAL EQUITY WHICH MIGHT WARRANT RECOMMENDATION OF PRIVATE LEGISLATION IN HIS BEHALF.

TO MR. LEON B. TAYLOR:

REFERENCE IS MADE TO YOUR LETTER OF JANUARY 14, 1972, REQUESTING FURTHER CONSIDERATION OF YOUR CLAIM FOR INTEREST ON YOUR SAVINGS DEPOSITED IN A SOLDIERS' DEPOSITS ACCOUNT FOR THE PERIOD JUNE 22, 1952, THROUGH OCTOBER 29, 1952, SUBSEQUENT TO YOUR DISCHARGE FROM THE ARMY ON JUNE 21, 1952. YOUR CLAIM WAS DISALLOWED BY SETTLEMENT DATED JANUARY 12, 1972, FOR THE REASON THAT INTEREST DOES NOT ACCRUE AFTER AN ENLISTED MEMBER'S DISCHARGE.

IT APPEARS THAT YOU WERE DISCHARGED ON JUNE 21, 1952, FOR THE PURPOSE OF COMMENCING ACTIVE DUTY AS A COMMISSIONED OFFICER, AT WHICH TIME YOU HAD $10,000 IN SOLDIERS' DEPOSITS. AT THE TIME OF DISCHARGE YOUR DEPOSIT BOOK COULD NOT BE LOCATED ALTHOUGH IT HAD BEEN GIVEN TO ARMY PERSONNEL FOR SAFEKEEPING AND, CONSEQUENTLY, PAYMENT OF THE FUNDS COULD NOT BE MADE. SUBSEQUENTLY, THE DEPOSIT BOOK WAS LOCATED AND PAYMENT OF YOUR DEPOSITS WITH INTEREST THEREON UNTIL THE DATE OF YOUR DISCHARGE, JUNE 21, 1952, WAS MADE BY A CHECK DATED OCTOBER 29, 1952. YOU NOW CONTEND THAT ADDITIONAL INTEREST ON SUCH FUNDS IS DUE YOU FOR THE PERIOD JUNE 22 TO OCTOBER 29, 1952.

THE STATUTORY AUTHORITY FOR SOLDIERS' DEPOSITS IN 1952 WAS CONTAINED IN 10 U.S.C. 906, 907 AND 908 (1952 ED.).

SECTION 907 ENTITLED "INTEREST ON DEPOSITS" PROVIDED:

"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 THE ARMY, SHALL BE PAID INTEREST AT THE RATE OF 4 PER CENTUM PER ANNUM."

SECTION 908 ENTITLED "REGULATIONS GOVERNING DEPOSITS" PROVIDED:

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

THE IMPLEMENTING REGULATIONS DURING THE PERIOD CONCERNED WERE SET FORTH IN ARMY SPECIAL REGULATION NO. 35-1550-1 DATED OCTOBER 10, 1950, WHICH PROVIDED 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;

"10. INTEREST. - A. GENERAL. - FOR ANY SUMS 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 OR DISCHARGE, WHICHEVER DATE IS EARLIER. ACCRUED INTEREST WILL BE PAID AT THE SAME TIME DEPOSITS ARE REPAID. *** "

INTEREST ON CLAIMS AGAINST THE UNITED STATES CANNOT BE RECOVERED IN THE ABSENCE OF AN EXPRESS PROVISION THEREFOR IN THE RELEVANT STATUTE OR CONTRACT. UNITED STATES V. TILLAMOOKS, 341 U.S. 48 (1951).

THE STATUTE AND REGULATIONS ABOVE QUOTED PROVIDE FOR THE PAYMENT OF INTEREST ONLY UNTIL THE ENLISTED MAN'S DISCHARGE. IT HAS LONG BEEN HELD THAT UNDER THE ABOVE PROVISIONS INTEREST DOES NOT ACCRUE ON AN ENLISTED MAN'S DEPOSITS AFTER THE DATE OF HIS DISCHARGE. AS WAS STATED BY THE COMPTROLLER OF THE TREASURY IN 1902 (8 COMP. DEC. 739, AT 741) -

"THE RULE IS WELL ESTABLISHED THAT INTEREST ON A SOLDIER'S DEPOSITS CAN NOT BE ALLOWED BEYOND THE DATE OF HIS DISCHARGE FROM THE SERVICE, NOTWITHSTANDING THE TIME WHICH MAY INTERVENE BETWEEN THE DATE OF DISCHARGE AND THE DATE OF FINAL PAYMENT."

THIS RULING HAS BEEN CONSISTENTLY UPHELD BY THIS OFFICE. SEE 31 COMP. GEN. 178 (1951); 37 COMP. GEN. 681 (1958).

WE ARE NOT AWARE OF ANY LAW WHICH WOULD AUTHORIZE PAYMENT OF INTEREST ON YOUR DEPOSITS FOR ANY PERIOD AFTER YOUR DISCHARGE ON JUNE 21, 1952. THE STATUTES AND REGULATIONS IN EFFECT AT THE TIME OF YOUR DISCHARGE DID NOT PERMIT THE PAYMENT TO YOU OF INTEREST AFTER DISCHARGE. WE THEREFORE FIND NO AUTHORITY FOR THE PAYMENT OF YOUR CLAIM AND THE DISALLOWANCE OF YOUR CLAIM IS SUSTAINED.

YOU ASK IN EFFECT WHETHER THIS OFFICE WOULD COOPERATE IN YOUR OBTAINING "ONE-TIME" LEGISLATION AUTHORIZING PAYMENT OF YOUR CLAIM. THIS OFFICE DOES NOT FAVOR LEGISLATION WHICH WOULD GRANT PREFERENTIAL TREATMENT TO ONE INDIVIDUAL OVER OTHER PERSONS SIMILARLY SITUATED AND WE FIND NO SPECIAL EQUITY IN YOUR CASE WHICH WOULD WARRANT OUR RECOMMENDING FAVORABLE CONSIDERATION OF SUCH LEGISLATION WITH RESPECT TO YOUR CLAIM.