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B-201118 1 (1982-03-23)

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TA-201118


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March 23, 1982


MATTll F31 OF;

DIGr-T:


    Maury L, Hanson, Jr., M.D.

A medical officer of the Public ealth
Service tigned a 1-year variable
incentive prpy aJreient, but voluntarily
left tie s4u'vicu to accept employment
in a civilian capnoity with a different
agency before completing the agreed-upon
service. Since regulations, pgrulated
under 37 US.C. 313, apply only to the
uniformed services an4 do njot apply to
other Gover iwunt service aiid since they
provide tiat no part of the Payment is
enrnied unless the rcdical officocr
serves a minimn of 1 year with the
Public Health Service, the payihletit made
upon e:ecutton of the agreement wwt b,
refunded.


     Tfh.is action ib in renponne to a letter fro~i !aury L.
1innvon, Jr#, t.D,, requcstincj reconsideration of tiecision
li-201118, Mlay 21, 1981, rendered in bis case, In that ccisirn
wLI beld that where   Pu1blic lealth1 Service rmedical ofticr
exectted it -year variable incentive pay agreement and volun-
tarily louvos the service befcre completion of that I yar,
oven though he tranuforred to another Government agency, the
entire amount of the patyotent must be refunded. We munt nffirm
that decision.

     T'h baz.u upon whieh Pr. ilanson appeals are;  that he
wan never ineformcd of the pertinent regulations concerning
repaymenct; that 37 U.S.C. 31  irdiciates that repayment
should b. prorated on te bazsiv of sovice performed; that
the armed 'orvtcca' raguationn require only a prorated
repnywmnt basod on service petforied and that since le was
allowed r:red'it for unused annial lctvu in his now agency,
..ndielttintj oontinuinq |'der',l sor-vice, lie should also bo
nllotnd the variable incentiv'el pay'

     i)r. hanson, a formei officer of thbe Conmiosiaoned Corps
of tho PuM,'Aic He |alth Service on iactive duty, executed an
agrerwenIt on !4'y 25, 1979, to ron-in in the varvice for 1 year,
in oxchanttci for variable incntive pay of $11,000 in addition


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