[Implementation of a Conciliation Agreement]

GAO was asked to decide two questions regarding the implementation of a conciliation agreement that settled a lawsuit filed by a National Guard technician alleging discriminatory conduct by the New Mexico National Guard. The questions were whether: (1) an employee may receive interest on backpay awarded him under an agreement entered into for the purpose of settling a discrimination suit brought under 42 U.S.C. 2000e et seq.; and (2) interest may be waived upon redeposit of money into the Civil Service Retirement and Disability Fund. The conciliation agreement awarded backpay to the claimant for the period of separation and provided that he was entitled to interest on his backpay at a rate of 12 percent. However, since the National Guard lacks the authority to pay interest, no interest could be paid under the agreement. Therefore, the claimant presented his claim for interest to the Comptroller General. GAO held that: (1) there is no authority to allow interest on backpay provided for in a conciliation agreement entered in the settlement of a law suit which alleged discriminatory conduct by Government official; and (2) under 5 U.S.C. 8334(d) payment of interest is required upon redeposit of contributions to the Civil Service Retirement Fund which were refunded to an employee. However, since the Office of Personnel Management (OPM) has full authority to administer the Civil Service Retirement Act, any question regarding the conditions under which service may be credited for retirement purposes should be referred to OPM. Accordingly, the claim should be referred to OPM.