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THE PARTICULAR CASE PRESENTED IS THAT OF T. 131.55 WAS TO BE PAID TO THE RETIREMENT FUND AND $382.50 TO THE INSURANCE FUND. AT THE TIME OF SEPARATION PLAINTIFF WAS AN EMPLOYEE OF THE RECONSTRUCTION FINANCE CORPORATION. THE CORPORATION WAS ABOLISHED AT THE CLOSE OF JUNE 30. AN EQUAL SUM SHALL ALSO BE CONTRIBUTED FROM THE RESPECTIVE APPROPRIATION OR FUND WHICH IS USED FOR PAYMENT OF HIS SALARY. * * *" SIMILAR PROVISION IS MADE BY SECTION 5 (B) OF THE FEDERAL EMPLOYEES' GROUP LIFE INSURANCE ACT OF 1954. 000 IN ANY ONE CASE ARE PAID UNDER AUTHORITY OF SECTION 1302 OF THE SUPPLEMENTAL APPROPRIATION ACT. AS FOLLOWS: "THERE ARE APPROPRIATED. 000 IN ANY ONE CASE) RENDERED BY THE DISTRICT COURTS AND THE COURT OF CLAIMS AGAINST THE UNITED STATES WHICH HAVE BECOME FINAL.

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B-124720, MAY 15, 1961

TO CHAIRMAN, UNITED STATES CIVIL SERVICE COMMISSION:

ON FEBRUARY 28, 1961, THE ACTING CHAIRMAN REQUESTED OUR DECISION CONCERNING THE AVAILABILITY OF APPROPRIATIONS OR FUNDS FOR THE PAYMENT OF GOVERNMENT CONTRIBUTIONS TO THE CIVIL SERVICE RETIREMENT AND DISABILITY FUND AND THE EMPLOYEES LIFE INSURANCE FUND WHEN THE UNITED STATES COURT OF CLAIMS RENDERS JUDGMENT FOR SALARY COVERING PERIODS OF ERRONEOUS SEPARATION FROM SERVICE AND PROVIDES IN THE JUDGMENT FOR PAYMENT INTO THE RESPECTIVE FUNDS OF THE PLAINTIFF'S SHARE OF THE CONTRIBUTIONS.

THE PARTICULAR CASE PRESENTED IS THAT OF T. MICHAEL SMITH V. UNITED STATES, CT.CL.NO. 261-55, DECIDED NOVEMBER 2, 1960, IN WHICH THE COURT ON JANUARY 13, 1961, ENTERED A JUDGMENT FOR $67,051.08 IN PLAINTIFF'S FAVOR, OF WHICH $4,131.55 WAS TO BE PAID TO THE RETIREMENT FUND AND $382.50 TO THE INSURANCE FUND. THE JUDGMENT COVERED A PERIOD OF SEPARATION FROM JULY 6, 1953, TO NOVEMBER 2, 1960. AT THE TIME OF SEPARATION PLAINTIFF WAS AN EMPLOYEE OF THE RECONSTRUCTION FINANCE CORPORATION. THE CORPORATION WAS ABOLISHED AT THE CLOSE OF JUNE 30, 1957 (REORGANIZATION PLAN NO. 1 OF 1957, 71 STAT. 647), AND ITS REMAINING FUNCTIONS TRANSFERRED TO OTHER AGENCIES, PRIMARILY FOR LIQUIDATION.

SECTION 4 (A) OF THE CIVIL SERVICE RETIREMENT ACT, AS AMENDED, 5 U.S.C. 2254 (A), AFTER PROVIDING FOR EMPLOYEE CONTRIBUTIONS TO THE RETIREMENT FUND, PROVIDES, IN PERTINENT PART, AS FOLLOWS:

"* * * FROM AND AFTER THE FIRST DAY OF THE FIRST PAY PERIOD WHICH BEGINS AFTER JUNE 30, 1957, AN EQUAL SUM SHALL ALSO BE CONTRIBUTED FROM THE RESPECTIVE APPROPRIATION OR FUND WHICH IS USED FOR PAYMENT OF HIS SALARY, PAY OR COMPENSATION, * * *"

SIMILAR PROVISION IS MADE BY SECTION 5 (B) OF THE FEDERAL EMPLOYEES' GROUP LIFE INSURANCE ACT OF 1954, 5 U.S.C. 2094 (B), FOR GOVERNMENT CONTRIBUTIONS TO THE INSURANCE FUND IN AN AMOUNT NOT TO EXCEED ONE-HALF OF THE EMPLOYEE'S CONTRIBUTION.

THE LONG-ESTABLISHED GENERAL POLICY OF CONGRESS HAS BEEN TO APPROPRIATE FUNDS SPECIFICALLY FOR THE PAYMENT OF JUDGMENTS OF THE COURT OF CLAIMS (AS WELL AS FEDERAL DISTRICT COURTS) AGAINST THE UNITED STATES, THUS INSULATING AGENCY APPROPRIATIONS FROM THE IMPACT OF SUCH JUDGMENTS. COMP. DEC. 261; 11 ID. 169; 14 ID. 316; AND 5 COMP. GEN. 203. WHEN SALARY HAS BEEN PAID BY WAY OF A JUDGMENT FROM AN APPROPRIATION FOR THE PAYMENT OF JUDGMENTS, NO AGENCY APPROPRIATION HAS BEEN USED TO PAY THE SALARY SO AS TO CONSTITUTE A BASIS UNDER THE TERMS OF THE CONTRIBUTION PROVISION OF THE RETIREMENT AND INSURANCE LAWS, SUPRA, FOR CHARGING CONTRIBUTION AGAINST THE AGENCY APPROPRIATION OR FUND.

JUDGMENTS OF THE COURT OF CLAIMS NOT IN EXCESS OF $100,000 IN ANY ONE CASE ARE PAID UNDER AUTHORITY OF SECTION 1302 OF THE SUPPLEMENTAL APPROPRIATION ACT, 1957, 70 STAT. 694, PROVIDING, IN PERTINENT PART, AS FOLLOWS:

"THERE ARE APPROPRIATED, OUT OF ANY MONEY IN THE TREASURY NOT OTHERWISE APPROPRIATED, AND OUT OF THE POSTAL REVENUES, RESPECTIVELY, SUCH SUMS AS MAY HEREAFTER BE NECESSARY FOR THE PAYMENT, NOT OTHERWISE PROVIDE/D) FOR, AS CERTIFIED BY THE COMPTROLLER GENERAL, OF JUDGMENTS (NOT IN EXCESS OF $100,000 IN ANY ONE CASE) RENDERED BY THE DISTRICT COURTS AND THE COURT OF CLAIMS AGAINST THE UNITED STATES WHICH HAVE BECOME FINAL, TOGETHER WITH SUCH INTEREST AND COSTS AS MAY BE SPECIFIED IN SUCH JUDGMENTS OR OTHERWISE AUTHORIZED BY LAW: * * *"

THAT STATUTE APPROPRIATES FUNDS ONLY FOR PAYMENTS TO, OR FOR THE ACCOUNTS OF, JUDGMENT CREDITORS. IN VIEW OF THE CONSTITUTIONAL PROHIBITION AGAINST THE WITHDRAWAL OF FUNDS FROM THE TREASURY EXCEPT IN CONSEQUENCE OF APPROPRIATIONS MADE BY LAW (ART. I, SEC. 9, CL. 7), WE MAY NOT CONSTRUE THE STATUTE AS EFFECTING AN APPROPRIATION OF FUNDS TO BE USED FOR GOVERNMENT CONTRIBUTIONS TO THE RETIREMENT AND INSURANCE FUNDS, WHICH ARE NOT OBLIGATIONS OF AN EMPLOYEE JUDGMENT-CREDITOR.

UPON THE BASIS OF THE FOREGOING DISCUSSION, WE CONCLUDE THAT NO APPROPRIATION OR FUND IS AVAILABLE FOR THE CONTRIBUTIONS IN QUESTION.

IF YOU BELIEVE THAT, UNDER PRESENT FUNDING PROCEDURES, A SERIOUS IMPAIRMENT OF THE FUNDS IS LIKELY TO RESULT FROM THE CUMULATIVE EFFECT OF JUDGMENT CASES OF THE NATURE HERE INVOLVED, WE SUGGEST THAT THE MATTER BE REPORTED TO CONGRESS FOR CONSIDERATION OF THE ADVISABILITY OF REMEDIAL MEASURES.

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