B-64682, MAY 27, 1947, 26 COMP. GEN. 894

B-64682, MAY 27, 1947, 26 COMP. GEN. 894

COMPENSATION; LEAVES OF ABSENCE - INTERNS EMPLOYED ON STUDENT-TRAINING BASIS PERSONS EMPLOYED AS INTERNS ON A STUDENT-TRAINING BASIS WHOSE POSITIONS ARE EXCLUDED FROM THE PROVISIONS OF THE CLASSIFICATION ACT BY EXECUTIVE ORDER NO. 9750, PROVIDING THAT THE HEAD OF THE DEPARTMENT CONCERNED SHALL DETERMINE THE RATES OF COMPENSATION, THE TOTAL STIPENDS NOT TO EXCEED THE RATES APPROVED BY THE CIVIL SERVICE COMMISSION, MAY BE PAID THEIR FULL ANNUAL STIPEND ON THE BASIS OF 43 WEEKS' TRAINING AT THE "HOME" HOSPITAL, THE REMAINDER OF THE YEAR TO BE OCCUPIED ON AFFILIATION AT ANOTHER HOSPITAL. THE BASE STIPEND OF INTERNS EMPLOYED ON A STUDENT-TRAINING BASIS, WHOSE RATES OF COMPENSATION ARE DETERMINED BY THE HEAD OF THE DEPARTMENT CONCERNED PURSUANT TO EXECUTIVE ORDER NO. 9750, AT NOT TO EXCEED A MAXIMUM STIPEND APPROVED BY THE CIVIL SERVICE COMMISSION, MAY BE FIXED ADMINISTRATIVELY SO AS TO PERMIT ADDITIONAL PAYMENTS OF OVERTIME, NIGHT PAY DIFFERENTIAL, AND HOLIDAY PAY, UNDER SECTIONS 201, 301, AND 302, RESPECTIVELY, OF THE FEDERAL EMPLOYEES PAY ACT OF 1945, AS AMENDED, SO LONG AS THE TOTAL AMOUNT PAID DURING ANY ONE YEAR OF TRAINING DOES NOT EXCEED THE PRESCRIBED MAXIMUM. INTERNS EMPLOYED ON A STUDENT-TRAINING BASIS PURSUANT TO EXECUTIVE ORDER NO. 9750, WHO ARE ENTITLED TO LEAVE AS "PERMANENT" OR "TEMPORARY" EMPLOYEES, DEPENDING UPON THE TENURE OF EMPLOYMENT, ARE TO BE REGARDED AS IN A LEAVE-WITHOUT-PAY STATUS WHILE OUT ON AFFILIATION--- AN ABSENCE FOR WHICH NO COMPENSATION IS PAYABLE--- SO THAT, IN THE CASE OF "PERMANENT" EMPLOYEES, SUCH ABSENCE WOULD RESULT IN A REDUCTION IN LEAVE CREDITS, AND, WITH RESPECT TO "TEMPORARY" EMPLOYEES, WOULD RESULT IN A BREAK IN THE CONTINUITY OF SERVICE, THEREBY PRECLUDING THE CREDITING OF LEAVE NOT ONLY FOR SUCH PERIOD, BUT, ALSO, FOR THE MONTH OF SERVICE IN WHICH THE BREAK OCCURRED. THE MAXIMUM STIPEND PRESCRIBED BY THE CIVIL SERVICE COMMISSION PURSUANT TO EXECUTIVE ORDER NO. 9750 FOR INTERNS EMPLOYED ON A STUDENT TRAINING BASIS, WHICH COVERS ALL BENEFITS IN THE NATURE OF COMPENSATION, MAY NOT BE REGARDED AS INCLUDING LUMP-SUM ANNUAL LEAVE PAYMENTS AUTHORIZED UNDER THE ACT OF DECEMBER 21, 1944, SO THAT A TRAINEE MAY BE PAID A LUMP SUM FOR ALL ANNUAL LEAVE TO HIS CREDIT AT THE DATE OF SEPARATION FROM THE SERVICE, REGARDLESS OF THE FACT THAT DURING THE YEAR IN WHICH SUCH PAYMENT IS MADE HE HAD RECEIVED THE PRESCRIBED MAXIMUM STIPEND. INTERNS EMPLOYED ON A STUDENT-TRAINING BASIS UNDER AGREEMENTS PROVIDING FOR AN INITIAL 15-MONTH PERIOD OF TRAINING AT AN ANNUAL STIPEND IN EXCESS OF THE MAXIMUM WHICH WAS SUBSEQUENTLY PRESCRIBED BY THE CIVIL SERVICE COMMISSION PURSUANT TO EXECUTIVE ORDER NO. 9750 FOR SUCH TRAINING PERIOD WILL BE ELIGIBLE TO RECEIVE THE MAXIMUM STIPEND PRESCRIBED FOR THE SECOND YEAR, IN EXCESS OF THAT SET FORTH IN THE AGREEMENTS UPON THE COMPLETION OF THEIR FIRST YEAR OF TRAINING UNDER THE EXISTING AGREEMENTS--- IT BEING ASSUMED THAT IT IS THE ADMINISTRATIVE INTENT TO PAY THE MAXIMUM STIPEND PRESCRIBED.

COMPTROLLER GENERAL WARREN TO THE FEDERAL SECURITY ADMINISTRATOR, MAY 27, 1947:

THERE HAS BEEN CONSIDERED YOUR LETTER OF APRIL 8, 1947, AS FOLLOWS:

CERTAIN QUESTIONS HAVE ARISEN AT SAINT ELIZABETHS HOSPITAL IN APPLYING REGULATIONS AND AUTHORIZATIONS ISSUED PURSUANT TO THE PROVISIONS OF EXECUTIVE ORDER 9750 APPROVED JULY 10, 1946.

THE EXECUTIVE ORDER REFERRED TO EXCLUDES FROM THE PROVISIONS OF THE CLASSIFICATION ACT OF 1923 THE POSITIONS OF PERSONS WHOSE EMPLOYMENT IN GOVERNMENT HOSPITALS IS ON A STUDENT-EMPLOYEE BASIS. SECTION 2 THEREOF PROVIDES:

"UNLESS OTHERWISE PROVIDED BY LAW, THE RATES OF COMPENSATION INCLUDING MAINTENANCE ALLOWANCES AND OTHER PAYMENTS IN KIND FOR POSITIONS EXCLUDED BY THIS ORDER FROM THE PROVISIONS OF THE CLASSIFICATION ACT OF 1923, AS AMENDED AND EXTENDED, SHALL BE DETERMINED BY THE HEADS OF THE RESPECTIVE DEPARTMENTS OR INDEPENDENT ESTABLISHMENTS, OR BY THE COMMISSIONERS OF THE DISTRICT OF COLUMBIA. THE STIPENDS PAID SHALL NOT EXCEED MAXIMUM RATES APPROVED BY THE CIVIL SERVICE COMMISSION.'

THE APPLICATION OF U.S. CIVIL SERVICE COMMISSION DEPARTMENTAL CIRCULAR 565 (COPY ATTACHED) WHICH ESTABLISHED THE MAXIMUM STIPENDS PROVIDED FOR IN EXECUTIVE 9750, RESULTS IN INTERNS ON DUTY AT SAINT ELIZABETHS HOSPITAL ON JULY 13, 1947 BEING ELIGIBLE FOR A MAXIMUM OF $2,320 THROUGH THE APPLICATION OF THE "EXISTING AGREEMENT" PROVISO IN SECTION 2 OF DEPARTMENTAL CIRCULAR 565. A PERIOD OF AFFILIATION OF TWO CALENDAR MONTHS AT GALLINGER HOSPITAL IS NECESSARY TO RECEIVE TRAINING IN TWO PHASES OF MEDICINE NOT AVAILABLE AT SAINT ELIZABETHS HOSPITAL.

IN RESPONSE TO THE QUESTION: MAY THE MAXIMUM PER ANNUM PAYMENTS ESTABLISHED BY THE COMMISSION BE MADE OVER A PERIOD OF LESS THAN A YEAR COVERING THE TIME AT THE "HOME" HOSPITAL, BUT EXCLUDING THE TIME OUT ON AFFILIATION, THE FEDERAL SECURITY AGENCY HAS BEEN ADVISED BY LETTER FROM THE CIVIL SERVICE COMMISSION THAT "THE FIXING OF RATES OF PAY REMAINS A MATTER OF ADMINISTRATIVE DISCRETION IN THE EMPLOYING AGENCY, PROVIDED ONLY THAT THE TOTAL COMPENSATION OF SUCH A STUDENT EMPLOYEE DURING THE PERIOD SPECIFIED IN THE CIRCULAR, USUALLY A YEAR, DOES NOT EXCEED THE APPROVED MAXIMUM STIPEND.' (COPY OF LETTER IS ATTACHED.)

THIS AGENCY DOES NOT PROPOSE TO PAY INTERNS ON A 52-WEEK BASIS BUT TO PUT INTO EFFECT A BASIC STIPEND OF $1,325.71 TO BE PAID IN 43 FORTY HOUR WEEKS AND TO PAY OVERTIME OF $994.28 BASED ON AN ESTABLISHED WORK WEEK OF 60 HOURS. THE TOTAL STIPEND PROPOSED IS $2,319.99 AND HOURLY RATES HAVE BEEN PROPOSED SO THAT THIS AMOUNT WILL BE PAID IN 43 WEEKS. THE PROPOSED SALARY TABLE FOR THIS TYPE OF EMPLOYEE FOLLOWS: CHART

UNIT RATES

BIWEEKLY

STIPEND (PAID IN 43 WEEKS) REGULAR SALARY OVERTIME

HOURLY DAILY HOURLY BASE O/T GROSS BASE $1,325.71 ----

$0.7707616 $6.1660930 $1,1561424 $61.66 $46.24 $107.90 O/T $994.28 ------

I WOULD APPRECIATE A DECISION FROM YOUR OFFICE AS TO THE FOLLOWING:

1. IN VIEW OF THE PROVISIONS OF EXECUTIVE ORDER 9750, DEPARTMENTAL CIRCULAR 565, AND THE ABOVE INTERPRETATION BY THE CIVIL SERVICE COMMISSION, IS IT PERMISSIBLE TO PUT INTO EFFECT THE ABOVE SALARY TABLE FOR INTERNS?

2. ARE PERSONS COVERED BY EXECUTIVE ORDER 9750 SUBJECT TO THE PROVISIONS OF SECTIONS 301 AND 302 OF PUBLIC LAW 106, 79TH CONGRESS, DEALING WITH NIGHT DIFFERENTIAL AND HOLIDAY PAY?

3. IF THE ANSWER TO QUESTION 2 IS IN THE AFFIRMATIVE, AND IN VIEW OF THE PROVISION IN SECTION 2 OF EXECUTIVE ORDER 9750 THAT "THE STIPENDS PAID SHALL NOT EXCEED MAXIMUM RATES APPROVED BY THE CIVIL SERVICE COMMISSION," WOULD PAYMENT IN EXCESS OF THE MAXIMUM STIPEND SET BY THE CIVIL SERVICE COMMISSION, OCCASIONED BY NIGHT DIFFERENTIAL AND HOLIDAY PAY BE LEGAL, ASSUMING THAT BASIC STIPEND AND OVERTIME ALREADY AMOUNT TO THE MAXIMUM STIPEND ESTABLISHED BY THE COMMISSION?

4. IF THE ANSWER TO QUESTION 3 IS IN THE NEGATIVE, WOULD IT BE NECESSARY IN FIXING THE BASIC STIPEND, TO FIX IT AT A POINT SUFFICIENTLY LOW TO INSURE THAT AFTER ALL OVERTIME IS ADDED PLUS ALL CONCEIVABLE HOLIDAY PAY AND NIGHT DIFFERENTIAL, THE TOTAL STILL WOULD NOT EXCEED THE MAXIMUM ESTABLISHED BY THE COMMISSION?

THE PRACTICAL ADMINISTRATIVE OBJECTION TO THE LATTER IS THAT, BECAUSE OF THE EMERGENCY NATURE OF HOSPITAL WORK, IT WOULD BE IMPOSSIBLE TO PREDICT HOW MUCH NIGHT WORK, WITH CONSEQUENT NIGHT DIFFERENTIAL, WOULD BE REQUIRED OF THE INTERN DOING THE GREATEST AMOUNT OF WORK; AND TO FIX A BASIC STIPEND SO LOW THAT WITH THE ADDITION OF OVERTIME PLUS ALL CONCEIVABLE HOLIDAY PAY AND NIGHT DIFFERENTIAL THE TOTAL IS STILL WITHIN THE COMMISSION MAXIMUM, WOULD HAVE THE NET EFFECT OF MAKING THE STIPEND FOR THE BULK OF INTERNS LOWER THAN THAT WHICH OTHERWISE WOULD BE FIXED BY THE ADMINISTRATOR.

5. IF A FULL STIPEND IS PAID TO AN INTERN OVER A PERIOD OF 43 WEEKS AND HE IS SEPARATED FROM THE SERVICE, CAN LUMP SUM PAYMENT OF ACCUMULATED ANNUAL LEAVE BE MADE WITHOUT VIOLATING THE PROVISIONS OF CIVIL SERVICE COMMISSION DEPARTMENTAL CIRCULAR 565? IF SO, HOW AND UPON WHAT BASIS IS IT TO BE COMPUTED?

6. THE PRESENT GROUP OF INTERNS WAS EMPLOYED APRIL 1, 1946, WITH THE UNDERSTANDING THAT THEIR INTERNSHIP WOULD COVER A PERIOD OF 15 MONTHS AT AN ANNUAL STIPEND OF $2,320. AFTER A YEAR OF APPROVED POST GRADUATE TRAINING DO THESE INTERNS BECOME ELIGIBLE FOR THE STIPEND SET FOR THE SECOND YEAR APPROVED POST-GRADUATE TRAINING BY THE CIVIL SERVICE COMMISSION, OR SHOULD THE STIPEND FOR THE FIRST YEAR OF TRAINING BE CONTINUED?

CIVIL SERVICE COMMISSION DEPARTMENTAL CIRCULAR NO. 565 DATED AUGUST 8, 1946, REFERRED TO IN YOUR LETTER, READS IN PART AS FOLLOWS:

1. IN ACCORDANCE WITH THE PROVISIONS OF EXECUTIVE ORDER 9750, EFFECTIVE AT THE CLOSE OF BUSINESS ON JULY 13, 1946 (SEE ATTACHED COPY OF ORDER), THE FOLLOWING MAXIMUM STIPENDS (INCLUDING OVERTIME PAY, MAINTENANCE ALLOWANCES, AND OTHER PAYMENTS IN MONEY OR KIND) FOR MEDICAL AND DENTAL INTERNS AND RESIDENTS-IN-TRAINING, STUDENT NURSES, STUDENT DIETITIANS, AND STUDENT PHYSICAL THERAPISTS, EXCEPT AS OTHERWISE PROVIDED IN SECTION 2 OF THIS CIRCULAR, ARE HEREBY APPROVED:

MEDICAL AND DENTAL INTERNS AND RESIDENTS GALLINGER AND FREEDMEN'S HOSPITALS:

FIRST YEAR APPROVED POST-GRADUATE TRAINING ------------------- $1,600

SECOND YEAR APPROVED POST-GRADUATE TRAINING ------------------ 1,900

THIRD YEAR APPROVED POST-GRADUATE TRAINING ------------------- 2,200

FOURTH YEAR APPROVED POST-GRADUATE TRAINING ------------------ 2,500

FIFTH YEAR APPROVED POST-GRADUATE TRAINING ------------------- 3,400

SIXTH YEAR APPROVED POST-GRADUATE TRAINING ------------------- 4,150 ALL OTHER FEDERAL HOSPITALS:

FIRST YEAR APPROVED POST-GRADUATE TRAINING ----------------- 2,200

SECOND YEAR APPROVED POST-GRADUATE TRAINING ---------------- 2,400

THIRD YEAR APPROVED POST-GRADUATE TRAINING ----------------- 2,700

FOURTH YEAR APPROVED POST-GRADUATE TRAINING ---------------- 3,000

FIFTH YEAR APPROVED POST-GRADUATE TRAINING ----------------- 3,400

SIXTH YEAR APPROVED POST-GRADUATE TRAINING ----------------- 4,150

NOTE.--- MAXIMUM STIPENDS FOR PANAMA CANAL AND PANAMA RAILROAD ARE 25 PERCENT ABOVE THESE RATES.

DIETITIAN INTERNS ( STUDENT DIETITIANS/--- ONE YEAR APPROVED--- $1,470 POST-GRADUATE TRAINING.

PHYSICAL THERAPY INTERNS ( STUDENT PHYSICAL THERAPISTS/--- ONE YEAR APPROVED POST-GRADUATE TRAINING, $1,470.

2. STIPENDS (TOTAL AMOUNT PAID, INCLUDING MAINTENANCE ALLOWANCES AND OTHER PAYMENTS IN KIND) UNDER EXISTING AGREEMENTS WITH TRAINEES, WHICH ARE IN EXCESS OF MAXIMUMS IN THE ABOVE SCHEDULES, ARE HEREBY APPROVED AS MAXIMUMS FOR THE DURATION OF TRAINING UNDER SUCH AGREEMENTS, TO THE EXTENT THAT THE AMOUNT OF ANY SUCH MAXIMUMS DOES NOT EXCEED THE BASIC PAY RATE UNDER SUCH AGREEMENT INCLUDING THE VALUE OF MAINTENANCE ALLOWANCE AND OTHER PAYMENTS IN KIND, AND PROVIDED THAT STATEMENTS OF THE TERMS OF SUCH AGREEMENTS, WITH SCHEDULES OF STIPENDS AND ALLOWANCES, ARE FILED WITH THE COMMISSION BEFORE SEPTEMBER 1, 1946.

IN VIEW OF THE DETERMINATION MADE BY THE CIVIL SERVICE COMMISSION IN ITS LETTER OF SEPTEMBER 27, 1946, TO YOU, QUOTED IN PART IN YOUR LETTER, SUPRA, TO THE EFFECT THAT THE SAID DEPARTMENTAL CIRCULAR NO. 565 NOT ONLY DOES NOT PRECLUDE THE PAYMENT OF THE PRESCRIBED MAXIMUM STIPEND OVER A PERIOD LESS THAN A YEAR, COVERING THE TIME AT THE "HOME" HOSPITAL BUT EXCLUDING THE TIME OUT ON AFFILIATION, BUT, IN FACT, AUTHORIZES SUCH PRACTICE IN COMPENSATING STUDENT NURSES AT ST. ELIZABETHS HOSPITAL, THIS OFFICE WILL NOT BE REQUIRED TO OBJECT TO OTHERWISE PROPER PAYMENTS OF THE FULL STIPEND ON THE BASIS OF 43 WEEKS' TRAINING AT THE "HOME" HOSPITAL.

IT WILL BE NOTED THAT PARAGRAPH 1 OF THE ABOVE-QUOTED REGULATION SPECIFICALLY PROVIDES THAT THE MAXIMUM STIPENDS THEREIN AUTHORIZED SHALL INCLUDE "OVERTIME PAY, MAINTENANCE ALLOWANCES, AND OTHER PAYMENTS IN MONEY OR KIND.' HENCE, IT SEEMS CLEAR THAE MAXIMUM STIPENDS SO PRESCRIBED ARE INTENDED TO BE INCLUSIVE OF ANY AND ALL BENEFITS IN THE NATURE OF COMPENSATION PAYMENTS TO WHICH SUCH PERSONS ARE ENTITLED UNDER EXISTING FEDERAL STATUTES. THAT IS TO SAY, SUCH MAXIMA ARE INTENDED TO REPRESENT THE MAXIMUM AMOUNTS PAYABLE FOR EACH YEAR OF TRAINING--- LEAVING TO THE ADMINISTRATIVE OFFICIALS THE RESPONSIBILITY FOR DETERMINING THE VARIOUS ELEMENTS OF COMPENSATION CONSTITUTING THE TOTAL STIPEND. THE LANGUAGE OF SECTIONS 201, 301, AND 302, OF THE FEDERAL EMPLOYEES PAY ACT OF 1945, 59 STAT. 296, 297, 298, AS AMENDED, RESPECTING THE PAYMENT OF OVERTIME, NIGHT PAY DIFFERENTIAL, AND HOLIDAY PAY, RESPECTIVELY, IS SUFFICIENTLY BROAD TO INCLUDE THE INTERNS OR STUDENT TRAINEES HERE CONSIDERED. CONSEQUENTLY, SUCH EMPLOYEES ARE ENTITLED TO THE BENEFITS OF THOSE SECTIONS IN PROPER CASES PROVIDED THAT PAYMENT IN ACCORDANCE THEREWITH WOULD NOT CAUSE THE TOTAL STIPENDS RECEIVED BY THEM DURING ANY ONE YEAR OF TRAINING TO EXCEED THE MAXIMA PRESCRIBED FOR THEIR PARTICULAR STATUS BY THE SAID CIVIL SERVICE COMMISSION CIRCULAR. THUS, IT WILL BE SEEN THAT IT IS WITHIN ADMINISTRATIVE DISCRETION SO TO FIX THE "BASE" STIPEND AS TO PRECLUDE CONSIDERATION OF ANY OF THE REFERRED-TO SECTIONS OF THE FEDERAL EMPLOYEES PAY ACT OF 1945, AS AMENDED, OR, IF ADMINISTRATIVELY DEEMED DESIRABLE, THE "BASE" STIPEND MAY BE SO FIXED AS TO PERMIT ADDITIONAL PAYMENTS FOR ALL OF THE ABOVE ITEMS OR ANY COMBINATION OF THEM--- SO LONG AS THE TOTAL AMOUNT PAID DURING ANY ONE YEAR OF TRAINING, INCLUDING THE VALUE OF ALLOWANCES IN KIND, DOES NOT EXCEED THE PRESCRIBED MAXIMA. QUESTIONS 1 THROUGH 4 ARE ANSWERED ACCORDINGLY.

WITH RESPECT TO QUESTION 5, IT MAY BE STATED THAT PERSONS WITHIN THE PURVIEW OF THE SAID CIVIL SERVICE COMMISSION CIRCULAR NO. 565 ARE ENTITLED TO ANNUAL LEAVE UNDER THE PROVISIONS OF THE ACT OF MARCH 14, 1936, 49 STAT. 1161. AND, WHETHER THEY ARE ENTITLED TO SUCH LEAVE ON THE BASIS OF ,PERMANENT" EMPLOYEES, OR AS "TEMPORARY" EMPLOYEES, WOULD DEPEND UPON THE TENURE OF THEIR EMPLOYMENT. SEE THE DEFINITIONS OF THOSE TERMS AS USED IN THE CURRENT LEAVE REGULATIONS. IN THOSE CASES WHERE PAYMENT OF THE STIPEND ADMINISTRATIVELY IS AUTHORIZED ONLY FOR THE PERIOD OF TRAINING AT ST. ELIZABETHS HOSPITAL (43 WEEKS), THE PERIOD WHILE OUT ON AFFILIATION WOULD BE TANTAMOUNT TO A LEAVE-WITHOUT PAY STATUS AND, IN THE CASE OF THOSE INTERNS WHO ARE "PERMANENT EMPLOYEES" FOR LEAVE PURPOSES, SUCH PERIOD WOULD RESULT IN A REDUCTION IN LEAVE CREDITS IN ACCORDANCE WITH THE PROVISIONS OF THE LEAVE REGULATIONS. WHERE THE INTERNS ARE "TEMPORARY EMPLOYEES" FOR LEAVE PURPOSES, SUCH ABSENCE FROM THE "HOME" HOSPITAL WOULD RESULT IN A BREAK IN THE CONTINUITY OF THEIR SERVICE AND WOULD PRECLUDE THE CREDITING OF LEAVE NOT ONLY FOR THE PERIOD OF SUCH ABSENCE BUT, ALSO, FOR THE "MONTH OF SERVICE" IN WHICH THE BREAK OCCURRED.

SECTION 1 OF THE LUMP-SUM LEAVE PAYMENT ACT OF DECEMBER 21, 1944, 58 STAT. 845, SPECIFICALLY PROVIDES THAT "THE LUMP-SUM PAYMENT THEREIN AUTHORIZED SHALL NOT BE REGARDED, EXCEPT FOR PURPOSES OF TAXATION, AS SALARY OR COMPENSATION.' ACCORDINGLY, SINCE, AS STATED ABOVE, THE MAXIMUM STIPEND PRESCRIBED BY CIVIL SERVICE COMMISSION CIRCULAR NO. 565 IS INTENDED TO COVER ALL BENEFITS IN THE NATURE OF COMPENSATION ACCRUING TO PERSONS COVERED THEREBY, SUCH MAXIMUM STIPEND REASONABLY MAY NOT BE VIEWED AS INCLUDING LUMP-SUM ANNUAL LEAVE PAYMENTS WHICH MIGHT ACCRUE UNDER THE PROVISIONS OF THE SAID 1944 STATUTE. CONSEQUENTLY, A TRAINEE MAY BE PAID A LUMP SUM FOR ALL ANNUAL LEAVE TO HIS CREDIT AT THE DATE OF SEPARATION FROM THE SERVICE REGARDLESS OF THE FACT THAT DURING THE YEAR IN WHICH SUCH PAYMENT IS MADE HE HAD RECEIVED THE PRESCRIBED MAXIMUM STIPEND. THIS ANSWERS BOTH PARTS OF QUESTION 5. IN ANSWER TO QUESTION 6 YOU ARE ADVISED THAT SINCE IT IS THE APPARENT INTENT OF PARAGRAPH 2 OF CIRCULAR NO. 565, SUPRA, THAT OTHERWISE PROPER EXISTING AGREEMENTS ARE TO REMAIN IN EFFECT SO LONG AS THE STIPENDS UNDER SUCH AGREEMENTS EXCEED THE MAXIMUM PRESCRIBED BY THE CIRCULAR, AND ASSUMING IT IS THE ADMINISTRATIVE INTENT TO PAY THE MAXIMUM STIPEND PRESCRIBED BY THE SAID CIRCULAR FOR THE SECOND YEAR, THE TRAINEES REFERRED TO WILL BE ELIGIBLE FOR SUCH MAXIMUM STIPEND UPON THE COMPLETION OF THEIR FIRST YEAR OF TRAINING UNDER THE EXISTING AGREEMENTS.