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B-125037 1 (1979-05-09)

handle is hein.gao/gaobabjnm0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON, D.C. 2064 B-125037 FPC-96-1-3 MAY 9 1979 The Honorable James M. Hanley Chairman, Committee on Post Office and Civil Service House of Representatives Dear Mr. Chairman: Your letter of February 15, 1979, rj Ue. -t!our viewszon H.R. 145, a-4 to provide that payments for military retired pay s.a. be made by the e Ccmm Office of Personnel Management.5(OPM). H.R. 145 proposes to: (1) remove retired pay from the Department of Defense (DOD) budget; (2) reflect military re- tired pay appropriations in the OPM budget; (3) authorize OPM to pay retired pay; and (4) identify military retired pay as Income Security in the Federal budget. We cannot support the concept of removing retired pay costs from the DOD budget without adequately reflecting mili- tary retirement accrued liabilities in the respective service accounts. Properly recording and recognizing retirement costs in the services' accounts should improve force management decisions by making retirement costs, and changes in those costs that would result from proposed changes in the retirement system, more visible to decision makers. H.R. 145 would make major changes in the method of appro- priating and paying military retired pay by requiring that appropriations be made to OPM which would then make payments to military retirees. OPM does not presently have a system designed to execute the payment of military retired pay. (Transferring military retired pay from DOD to OPM could involve considerable time and expense, and it could create an unnecessary hardship upon the retirees concerned until the operation was functioning properly. However, there would be certain advantages to trans- ferring military retired pay functions to the Veterans Administration (VA) since he military retired pay is inter- related with VA pay items.)'Current laws and regulations require that a member who receives retirement, disability retirement, disability severance pay, or readjustment pay benefits from the services must offset, all or part of, disability compensation

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