Sakran v. United States

176 Ct. Cl. 831, 1966 U.S. Ct. Cl. LEXIS 58, 1966 WL 8886
CourtUnited States Court of Claims
DecidedJuly 15, 1966
DocketNo. 417-64
StatusPublished
Cited by2 cases

This text of 176 Ct. Cl. 831 (Sakran v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sakran v. United States, 176 Ct. Cl. 831, 1966 U.S. Ct. Cl. LEXIS 58, 1966 WL 8886 (cc 1966).

Opinion

Cowen, Chief Judge,

delivered tlie opinion of the court:

Plaintiff, a retired civilian employee of the Veterans Administration, brought this action to recover amounts withheld from bis annuity payments by the Civil Service Commission. The sums withheld represent deductions from [833]*833plaintiff’s annuity of 10 percent of the balance due on his retirement annuity account because of the fact that no retirement deductions were made from his salary from April 28, 1958 to December 27, 1963, or a deposit paid to the annuity account in lieu thereof. In resolving the issues before us, we are called upon to determine whether certain actions taken by the Civil Service Commission, pursuant to its interpretation of the Civil Service Retirement Act, comply with the decision of the United States District Court for the District of Columbia in a prior suit by plaintiff, Sakran v. Macy, 218 F. Supp. 756 (1963), and the law applicable to plaintiff’s case.

As of September 1, 1952, plaintiff retired voluntarily because of total disability at the age of 57 and was awarded a disability annuity. Upon recovery from the disability, he was reemployed by the same agency on April 28,1958, after having attained age 63. Acting upon its interpretation of 5 U.S.C. § 2263 (b) (1952 ed. Supp. V) ,1 the Commission continued to pay plaintiff the annuity he had received as a result of his 1952 retirement, made no deductions from his salary for the retirement fund, and reduced his salary by a sum equal to the annuity allocable to the period of his employment.

Plaintiff protested this action by contending that, since he was a disability annuitant who had recovered and had been reemployed, he should be carried on the rolls as a regular employee, that the annuity should be discontinued, and that retirement fund deductions should be made from his salary.

Upon the Commission’s refusal to comply with his request, plaintiff filed suit in the district court seeking a declaratory judgment to the effect that he was entitled “to have his name removed from the annuity rolls, to have annuity payments discontinued, to be classified as a ‘permanent’ rather than a [834]*834‘temporary’ employee, to receive bis full salary, and to home his annuity computed de novo when he again retires so that his annuity then will he computed on the basis of his total service, rather than on the basis of his service up to 195%? [Emphasis supplied.] On July 3, 1963, tbe district court granted plaintiff’s motion for summary judgment and remanded the case to the Commission for proceedings not inconsistent with the opinion. Sakran v. Macy, supra. On November 12,1963, the Bureau of [Retirement and Insurance of the Commission directed the Veterans Administration to begin making retirement deductions from plaintiff’s salary and matching agency contributions effective November 1, 1963. However, no employee contributions were made to plaintiff’s retirement annuity account for the period beginning April 28, 1958, and ending November 1, 1963. Plaintiff’s annuity was terminated as of October 31, 1963, and amounts equal to the annuity were not thereafter withheld from his salary. The Veterans Administration was also notified that when plaintiff retired, he would be entitled to have his annuity computed on the basis of his total service under the law in effect at the time of his retirement.

Because of injuries sustained as a result of an automobile accident, plaintiff again retired on December 27, 1963, after having served an additional period of almost 6 years. On February 14, 1964, he was notified by the Commission that, if he wished to receive a full annuity computed on his total service, he would be required to deposit the sum of $4,528 to cover the period of service during which no retirement deductions had been made from his salary. Plaintiff was asked to respond within 30 days and was notified that if he did not do so, the amount of his annuity would be reduced. On February 25, 1964, he wrote the Commission regarding survivor benefits but said nothing regarding the deposit. Accordingly, after the 30-day waiting period had expired, the Commission awarded him an annuity based upon his total service of 38 years, 10 months, and 17 days and his highest average salary over a 5-year period during his second tour of duty. As so computed, his annuity amounted to $753 per month, and this was reduced by 10 percent of the unpaid deposit, or to a monthly payment of $713.

[835]*835On April 15, 1964, plaintiff, through his attorney, wrote the Burean of Betirement and Insurance, requesting that the deductions from plaintiff’s annuity be discontinued by reason of the provisions of 5 U.S.C. § 2265 (b) (1952 ed. Supp. IY) and that the amounts previously withheld be refunded to plaintiff. The Bureau responded that there was no provision in the law which authorized the Civil Service Commission to waive the deposit requirement. That denial was affirmed on appeal by the Commission’s Board of Appeals and Beview on October 9,1964.

Plaintiff attacks the disposition of his case by the Commission on two grounds. First, he argues that his reinstatement was inconsistent with the district court’s order in that the Commission should have ordered his reinstatement as a permanent employee retroactive to April 28, 1958, rather than as of November 1,1963, and that the Veterans Administration should have made the deposits to plaintiff’s retirement annuity account that would have otherwise been deducted from his salary. From this premise, he contends that he was entitled to a full annuity without deduction for the unpaid deposit and upon the basis of his total period of service. The complete answer to this contention is that in calculating plaintiff’s annuity, the Commission complied fully with the decision of the district court and the applicable law.

The deduction from plaintiff’s annuity for failure to make the deposit of $4,528 was in strict accord with the command of 5 U.S.C. §§2254(c) and 2259(f) (1958 ed.). Section 2254(c) (Section 4(c) of the Civil Service Betirement Act) provides that:

Each employee or Member credited with civilian service after July 31, 1920, for which, for any reason whatsoever, no retirement deductions or deposits have been made, may deposit with interest an amount equal to the [prevailing] percentages of his basic salary received for such service.

Section 2259 (f) requires that:

The annuity as hereinbefore provided shall be reduced by 10’ per centum of any deposit described in section 2254(c) of this title remaining unpaid, unless the em[836]*836ployee or Member shall elect to eliminate the service involved for purposes of annuity computation.

The Civil Service retirement system requires joint deposits by employee and employer in order to build up over the years a fund out of which the annuities may be paid. Congress recognized that as a result of various contingencies that would arise, there would be employment periods during which no deductions would be made from an employee’s salary for deposit in the retirement fund.

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Bluebook (online)
176 Ct. Cl. 831, 1966 U.S. Ct. Cl. LEXIS 58, 1966 WL 8886, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sakran-v-united-states-cc-1966.