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B-195265 1 (1979-08-17)

handle is hein.gao/gaobadhnd0001 and id is 1 raw text is: DECISION FILE: B-195265 THE COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON. .C. 20548 DATE: August 17, 1979 MATTER OF: Interest on delayed payment of benefits to health and welfare trust DIGEST: Department of Labor may not pay interest to employees' health and welfare trust, even though delayed payment of benefits under Redwood National Park expansion act caused trust to lose income on its funds. There is no agreement by Department to pay interest, and neither authorizing nor appropriation acts provide for interest A/for late payment of benefits. In the absence of express contractual or statutory authorization, United States may not pay interest on its unpaid accounts. The Acting Assistant Secretary of Labor for hLa at Relations requested a decision on whether the Department of Labor (Department) may properly pay interest to the G-P/L-P and LPIW Health and Welfare Trust (Trust) for benefit payments advanced by the Trust and reimbursed by the Department 5 to 13 months late. The payments were due under Title II of Public Law 95-250, for employees who lost their jobs because of the expansion of Redwood Nationalak For the reasons indicated below, we conclude that the Department may not pay interest to the Trust for these delayed payments. Title II of Public Law 95-250 (March 27, 1978), 92 Stat. 163, requires the Secretary of Labor to provide for the retention of health, welfare, and other benefits of employees who lose their jobs in the economic disruption caused by the expansion of Redwood -National Park. The Secretary is to accomplish this end by entering into agreements with the employees, their employers, their labor unions, or their pension and welfare trust funds, and by paying to the trust funds, or directly to insurance companies, the amounts that would have been paid by the employer or labor union had the employees not lost their jobs. During the effective period of the Act, the Louisiana Pacific Corporation closed its Samoa Plywood Plant and the employees of the plant lost their jobs. These employees were entitled to health and welfare benefits administered by the Trust. ) (Y4LTH onJ-Lt7 --frV-0

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