Schrader v. United States

20 Cl. Ct. 161, 1990 U.S. Claims LEXIS 140, 1990 WL 48681
CourtUnited States Court of Claims
DecidedApril 23, 1990
DocketNo. 45-89C
StatusPublished
Cited by1 cases

This text of 20 Cl. Ct. 161 (Schrader 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
Schrader v. United States, 20 Cl. Ct. 161, 1990 U.S. Claims LEXIS 140, 1990 WL 48681 (cc 1990).

Opinion

OPINION

MARGOLIS, Judge.

BACKGROUND

On July 30,1945, the plaintiff, Leonard J. Schrader, retired from active duty in the Army Air Corps as a result of a service-related disability. At the time of his retire[162]*162ment, he held the rank of first lieutenant, second pay period. Since that time, Schrader has received military retirement pay every month. Pursuant to Congressional authorizations, the amount of that pay has increased from $125 per month in 1945, to $737 per month as of December 1988. Schrader filed suit in this court on January 30,1989, alleging that he has been underpaid by the government for an unspecified period of time, and in an unspecified amount. Plaintiff sues for back retirement pay plus interest, seeks a declaratory judgment to correct his records, and moves for summary judgment. The defendant has filed a motion to dismiss for failure to state a claim or, in the alternative, for summary judgment.

The dispute in this case stems from a disagreement as to how plaintiffs retirement pay should be calculated. There is no dispute over the circumstances of his retirement, his rank at that time, or the amount he has in fact been paid over the past 45 years. Plaintiff believes that he should be receiving approximately $1,309 per month, an amount which represents 75 percent of the salary currently being paid to an active-duty first lieutenant, second pay period. Defendant argues that the amount of plaintiffs retirement compensation — $737 per month at the time the suit was filed — was properly computed by adding to the original $125 per month, the periodic cost of living adjustments voted by Congress and determined by the Secretary of Defense over the intervening years.

DISCUSSION

Because there are no genuine issues as to any material facts, the sole determination to be made by this court is whether the government properly calculated plaintiffs retirement pay in accordance with governing statutes.

The Law Governing at the Time of Plaintiff’s Retirement

After a little more than two years of active service, plaintiff was retired from the Army Air Corps on July 30, 1945 because of a service-related disability. Under the law then in effect, officers retiring from the Army due to a disability were entitled to disability retirement pay regardless of the percentage of their disability. Act of April 3, 1939, ch. 35, § 5, 53 Stat. 555, 557. Therefore, at the time of his retirement, plaintiff was entitled to retirement pay computed on the basis “of seventy-five per centum of the pay of the rank upon which [he] retired.” Act of July 15, 1870, ch. 294, § 24, 16 Stat. 315, 320. Plaintiffs entitlement at retirement was $125 per month, or 75 percent of the monthly pay of an active-duty first lieutenant, second pay period.

Career Compensation Act of 1949

In 1949, the Congress enacted the Career Compensation Act, ch. 681, 63 Stat. 802 (CCA or Act). The CCA changed the method by which disability retirement pay is determined. Under that statute, members of the armed services retired because of disability are ineligible for retirement pay unless their disability is rated at 30 percent or more. CCA, § 402(b)(3). When the Career Compensation Act was passed, the records of all members retired prior to passage of the Act were reviewed, and disability ratings were established for them. At that time, Schrader’s disability rating was established at ten percent. Because of his minimal disability rating, Schrader was ineligible for disability retirement pay under the CCA. Plaintiff could have elected to receive disability severance pay under § 411 of the Act, but he did not do so.

However, the CCA also included a saving provision (§ 519) which provided that persons retired prior to the enactment of the CCA could elect to continue receiving the retirement benefits to which they were previously entitled. Because the 1939 Act under which plaintiff retired provided more generous benefits for a retiree with a disability rated at less than 30 percent, Schrader exercised his right to remain under the 1939 law.

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Related

Flowers v. United States
80 Fed. Cl. 201 (Federal Claims, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
20 Cl. Ct. 161, 1990 U.S. Claims LEXIS 140, 1990 WL 48681, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schrader-v-united-states-cc-1990.