JK ^i-^^r;-.. DECISIONS RELATING TO PENSIONS AND RETIREMENT ANNUITY. RETIREMENT ACT. Public — No. 215 — 66tli Congress. S. 1699. An Act For the retirement of employees in the classified civil service, and for other purposes. Be it enacted hy the Senate and House of Representatives of the United States of America in Congress assembled^ That beginning at the expiration of ninety days next following the passage of this- act, all employees in the classified civil service of the United States who have on that date, or shall have on any date thereafter, reached the age of seventy years and rendered at least fifteen years of service computed as prescribed in section 3 of this act, shall be eligible for retirement on an annuity as provided in section 2 hereof : Provided^ That mechanics, city and rural letter carriers, and post-office clerks shall be eligible for retirement at sixty-five years of age, and railway postal clerks at sixty-two years of age, if said mechanics, city and rural letter carriers, post-office clerks, and railway postal clerks shall have rendered at least fifteen years of service computed as prescribed in section 3 of this act. The provisions of this act shall include superintendents of United States national cemeteries, employees of the Superintendent of the United States Capitol Buildings and Grounds, the Library of Con- gress, and the Botanic Gardens, excepting persons appointed by the President and confirmed by the Senate, and may be extended by Executive order, upon recommendation of the Civil Service Com- mission, to include any employee or group of employees in the civil service of the United States not classified at the time of the passage of this act. The President shall have power, in his discretion, to exclude from the operation of this act any employee or group of employees in the classified civil service whose tenure of office or employment is intermittent or of uncertain duration. All regular annual employees of the municipal government of the District of Columbia, appointed directly by the commissioners, or by other competent authority including those receiving per diem com- 16028° — 22 — VOL 21 1 pensation paid out of general appropriations, but whose services are continuous, and including public-school employees, excepting school officers and teachers, shall be included in the provisions of this act, but members of the police and fire departments shall be excluded therefrom. Postmasters, and such employees of the Lighthouse Service as come within the provisions of section 6 of the act of June 20, 1918, entitled, " An act to authorize aids to navigation and for other works in the Lighthouse Service, and for other purposes," shall not be included in the provisions of this act. Sec. 2. That for the purpose of determining the amount of annuity which retired employees shall receive, the following classifications and rates shall be established : Class A shall include all employees to whom this act applies who shall have served the United States for a total period of thirty years or more. The annuity to a retired employee in this class shall equal 6'0 per centum of such eniployee's average annual basic salary, pay, or compensation from the United States for the ten years next preced- ing the date on which he or she shall retire : Provided, That in no case shall an annuity in this class exceed $720 per annum or be less than $360 per annum. Class B shall include all employees to whom this act applies who shall have served the United States for a total period of twenty-seven years or more, but less than thirty years. The annuity to a retired employee in this class shall equal 54 per centum of such employee's average annual basic salary, pay, or compensation from the United States for the ten years next preceding the date on which he or she shall retire : Provided, That in no case shall an annuity in this class exceed $648 per annum, or be less than $324 per annum. Class C shall include all employees to whom this act applies who shall have served the United States for a total period of twenty-four years or more, but less than twenty-seven years. The annuity to a retired employee in this class shall equal 48 per centum of such em- ployee's average annual basic salary, pay, or compensation from the United States for the ten years next preceding the date on which he or she shall retire : Provided, That in no case shall an annuity in this class exceed $576 per annum, or be less than $288 per annum. Class D shall include all employees to whom this act applies who shall have served the United States for a total period of twenty-one years or more, but less than twenty-four years. The annuity to a retired employee in this class shall equal 42 per centum of such em- ployee's average annual basic salary, pay, or compensation from the United States for the ten years next preceding the date on which he or she shall retire : Provided, That in no case shall an annuity in this class exceed $504 per annum, or be less than $252 per annum. LliRAffy.Cf CONQRfSS NOV 21«2r ^v'> Class E shall include all employees to whom this act applies who shall have served the United States for a total period of eighteen years or more, but less than twenty-one years. The annuity to a retired employee in this class shall equal 36 per centum of such employee's average annual basic salary, pay, or compensation from the United States for the ten years next preceding the date on which he or she shall retire : Provided, That in no case shall an annuity in this class exceed $432 per annum, or be less than $216 per annum. Class F shall include all employees to whom this act applies who shall have served the United States for a total period of fifteen years or more, but less than eighteen years. The annuity to a retired employee in this class shall equal 30 per centiun of such employee's average annual basic salary, pay, or compensation from the United States for the ten years next preceding the date on which he or she shall retire : Provided, That in no case shall an annuity in this class exceed $360 per annum, or be less than $180 per annum. The term "basic salary, pay, or compensation" wherever used in this act shall be so construed as to exclude from the operation of the act all bonuses, allowances, overtime pay, or salary, pay, or compensation given in addition to the base pay of the positions as fixed by law or regulation. Sec. 3. That for the purpose of this act and subject to the pro- visions of section 10 hereof, the period of service shall be computed from the date of original employment, whether as a classified or unclassified employee in the civil service of the United States, and shall include periods of service at different times and services in one or more departments, branches, or independent oiRces of the Government, and shall also include service performed under author- ity of the United States beyond seas, and honorable service in the Army, Navy, Marine Corps, or Coast Guard of the United States: Provided, That in the case of an employee who is eligible for and elects to receive a pension under any law, or compensation under the war risk insurance act, the period of his or her military or naval service upon which such pension or compensation is based shall not be included for the purpose of assignment to classes defined in section 2 hereof, but nothing contained in this act shall be so construed as to affect in any manner his or her right to a pension, or to compensation under the war risk insurance act, in addition to the annuity herein provided. It is further provided that in computing length of service for the purposes of this act all periods of separation from the service and' so much of any period of leave of absence as may exceed six months shall be excluded, and that in the case of substitutes in the Postal Service only periods of active employment shall be included. Sec. 4. That for the purpose of administration, except as otherwise provided herein, the Commissioner of Pensions, under the direction of the Secretary of the Interior, be, and is hereby, authorized and directed to perform, or cause to be performed, any and all acts and to make such rules and regulations as may be necessary and proper for the purpose of carrying the provisions of this act into full force and effect. An appeal to the Secretary of the Interior shall lie from the final action or order of the Commissioner of Pensions affecting the rights or interests of any person or of the United States under this act, the procedure on appeal to be as prescribed by the Commissioner of Pensions, with the approval of the Secretary of the Interior. Sec. 5. That any employee to whom this act applies who shall have served for a total period of not less than fifteen years, and who, before reaching the retirement age as fixed in section 1 hereof, be- comes totally disabled for useful and efficient service by reason of disease or injury not due to vicious habits, intemperance, or willful misconduct on the part of the employee, shall upon his or her own application or upon the request or order of the head of the depart- ment, branch, or independent office concerned, be retired on an annuity under the provisions of section 2 hereof : Provided^ however^ That no employee shall be retired under the provisions of this sec- tion until examined by a medical officer of the United States or a duly qualified physician or surgeon or board of physicians or sur- geons designated by the Commissioner of Pensions for that purpose and found to be disabled in the degree and in the manner specified herein. Every annuitant retired under the provisions of this section, unless the disability for which retired is permanent in character, shall, at the expiration of one year from the date of such retirement and annually thereafter until reaching the retirement age as defined in section 1 hereof, be examined under direction of the Commis- sioner of Pensions by a medical officer of the United States, or a duly qualified physician or surgeon or board of physicians or surgeons designated by the Commissioner of Pensions for that purpose, in order to ascertain the nature and degree of the annuitant's disability, if any ; if the annuitant recovers and is restored to his or her former earning capacity before reaching the retirement age, payment of the annuity shall be discontinued from the date of the medical examination showing such recovery ; if the annuitant fails to appear for examination as required under this section, payment of the annuity shall be suspended until continuance of the disability has been satisfactorily established. The Commissioner of Pensions is hereby authorized to order or direct at any time such medical or other examination as he shall deem necessary to determine the facts relative to the nature and degree of disability of any employee retired on an annuity under this section. Fees for examinations made under the provisions of this section by physicians or surgeons who are not medical officers of the United, States shall be fixed by the Commissioner of Pensions, and such fees, together with the employee's reasonable traveling and other expenses incurred in order to submit to such examinations, shall be paid out of the appropriations for the cost of administering this act. In all cases where the annuity is discontinued under the provi- sions of this section before the annuitant has received a sum equal to the total amount of his or her contributions with accrued interest, the difference shall be paid to the retired employee, or to his or her estate, upon application therefor in such form and manner as the Commissioner of Pensions may direct. No person shall be entitled to receive an annuity under the pro- visions of this act, and compensation under the provisions of the act of September 7, 1916, entitled, " An act to provide compensa- tion for employees of the United States suffering injuries while in the performance of their duties, and for other purposes," covering the same period of time ; but this provision shall not be so construed as to bar the right of any claimant to the greater benefit conferred by either act for any part of the same period of time. Sec. 6. That all employees to whom this act applies shall, upon the expiration of ninety days next succeeding its passage, if of retirement age, or thereafter on arriving at retirement age as defined in section 1 hereof, be automatically separated from the service, and all salary, pay, or compensation shall cease from that date, and it shall be the duty of the head of each department, branch, or independent office of the Government to notify such employees under his direction of the date of such separation from the service at least sixty days in advance thereof : Provided^ That no person employed in the executive depart- ments within the District of Columbia, retired under the provisions of this act during the fiscal year ending June 30, 1921, shall be re- placed by additional employees, but if the exigencies of the service so require, places made vacant by such retirement may be filled by pro- motion or transfer of eligible employees already in the service : Pro- vided^ That if within sixty days after the passage of this act or not less than thirty days before the arrival of an employee at the age of retire- ment, the head of the department, branch, or independent office of the Government in which he or she is employed certifies to the Civil Service Commission that by reason of his or her efficiency and willing- ness to remain in the civil service of the United States the continuance of such employee therein would be advantageous to the public service, such employee may be retained for a term not exceeding two years 6 upon approval and certification by the Civil Service Commission, and at the end of the two years he or she may, by similar approval and certification, be continued for an additional term not exceeding two years, and so on : Provided, however, That at the end of ten years after this act becomes effective no employee shall be continued in the civil service of the United States beyond the age of retirement de- fined in section 1 hereof for more than four years. Sec. 7. That every employee who is or hereafter becomes eligible for retirement because of age as provided in this act, shall, within sixty days after its passage or thirty days before reaching the retire- ment age, or at any time thereafter, file with the Commissioner of Pensions, in such form as he may prescribe, an application for an annuity, supported by a certificate from the head of the department, branch, or independent office of the Government in which the appli- cant has been employed, stating the age and period or periods of service of the applicant and salary, pay, or compensation received during such periods, as shown by the official records : Provided, how- ever, That in the case of an employee who is to be continued in the civil service of the United States beyond the retirement age as pro- vided in section 6 hereof, he or she may make application for retire- ment at any time within such period of continuance in the service; but nothing contained in this act shall be construed to prevent the compulsory retirement of such employee when in the judgment of the head of the department, branch, or independent office in which he or she is employed such retirement would promote the best interests of the service. Upon receipt of satisfactory evidence the Commissioner of Pen- sions shall forthwith adjudicate the claim of the applicant, and if title to annuity be established, a proper certificate shall be issued to the annuitant under the seal of the Department of the Interior. Annuities granted under this act for retirement on account of age shall commence from the date of separation from the service on or after the date this act shall take effect, and shall continue dur- ing the life of the annuitant. Annuities granted for disability under the provisions of section 5 hereof shall be subject to the limitations specified in said section. Sec. 8. That beginning on the first day of the third month next following the passage of this act and monthly thereafter there shall be deducted and withheld from the basic salary, pay, or compensa- tion of each employee to whom this act applies a sum equal to 2^ per centum of such employee's basic salary, pay, or compensation. The Secretary of the Treasury shall cause the said deductions to be withheld from all specific appropriations for the particular salaries or compensation from which the deductions are made and from all allotments out of lump-sum appropriations for payments of such salaries or compensation for each fiscal year, and said sums shall be transferred on the books of the Treasury Department to the credit, of a special fund to be known as " the civil service retirement and disability fund," and said fund is hereby appropriated for the pay- ment of annuities, refunds, and allowances as provided in this act. The Secretary of the Treasury is hereby directed to invest from time to time, in interest-bearing securities of the United States, such portions of the " civil service retirement and disability fund " hereby created as in his judgment may not be immediately required for the payment of annuities, refunds, and allowances as herein pro- vided, and the income derived from such investments shall constitute a part of said fund for the purpose of paying annuities and of carry- ing out the provisions of section 11 of this act. The Secretary of the Treasury is hereby authorized and empow- ered in carrying out the provisions of this act to supplement the individual contributions of employees with moneys received in the form of donations, gifts, legacies, bequests, or otherwise, and to receive, invest, and disburse for the purposes of this act all moneys which may be contributed by private individuals or corporations or organizations for the benefit of civil service employees generally or any special class of employees. Sec. 9. That every employee coming within the provisions of this act shall be deemed to consent and agree to the deductions from salary, pay, or compensation as provided in section 8 hereof, and payment less such deductions shall be a full and complete discharge and acquittance of all claims and demands whatsoever for all regu- lar services rendered by such employee during the period covered by such payment, except the right to the benefits to which he or she shall be entitled under the provisions of this act, notwithstanding the provisions of sections 167, 168, and 169 of the Ee vised Statutes of the United States, and of any other law, rule, or regulation affect- ing the salary, pay, or compensation of any person or persons em- ployed in the civil service to whom this act applies. Sec. 10. That upon the transfer of any employee from an unclassi- fied to a classified status, or upon the reinstatement of a former employee, credit for past service rendered subsequent to the date this act shall take effect, or for any part thereof, shall be granted only upon deposit with the Treasurer of the United States of the amount of such deductions with interest as provided in this act as would have been made for the periods of actual service, or part thereof, for which credit is to be given, but such interest shall not be computed for periods of separation from the service : Provided^ That failure to make such deposit shall not deprive the employee of credit for any past service rendered prior to the date this act shall become operative, and to which he or she would otherwise be entitled. Sec. 11. That in the case of an employee in the classified civil service of the United States who shall be transferred to an unclassi- 8 fied position, and in the case of any employee to whom this act applies . who shall become absolutely separated from the service before be- coming eligible for retirement on an annuity, the total amount of deductions of salary, pay, or compensation with accrued interest com- puted at the rate of 4 per centum j)er annum, compoundied on June 30 of each fiscal year, shall, upon application, be returned to such em- ployee : Provided^ That all money so returned to an employee must be redeposited with interest before such employee may derive any benefit under the provisions of this act, upon reinstatement or retransfer to a classified position ; and in case an annuitant shall die without having received in annuities an amount equal to the total amount of the deductions from his or her salary, pay, or compensa- tion, together with interest thereon at 4 per centum per annum com- pounded as herein provided up to the time of his or her death, the excess of the said accumulated deductions over the said annuity payments shall be paid in one sum to his or her legal representatives upon the establishment of a valid claim therefor; and in case an employee shall die without having reached the retirement age or without having established a valid claim for annuity, the total amount of deductions with accrued interest as herein provided shall be paid to the legal representatives of such employee : Provided^ That if in case of death the amount of deductions to be paid under the provisions of this section does not exceed $300, and if there has been no demand upon the Commissioner of Pensions by a duly appointed executor or administrator, the payment may be made, after the expiration of three months from date of death, to such person or persons as may appear in the judgment of the Commissioner of Pen- sions to be legally entitled to the proceeds of the estate, and such pay- ment shall be a bar to recovery by any other person. Sec. 12. That annuities granted under the terms of this act shall be due and payable monthly on the first business day of the month following the month or other period for which the annuity shall have accrued, and payment of all annuities, refunds, and allowances granted hereunder shall be made by checks drawn and issued by the disbursing clerk for the payment of pensions in such form and man- ner and with such safeguards as shall be prescribed by the Secretary of the Interior in accordance with the laws, rules, and regulations governing accounting that may be found applicable to such payments. Sec. 13. That it shall be the duty of the head of each executive department and the head of each independent establishment of the Government not within the jurisdiction of any executive department to report to the Civil Service Commission in such manner as said commission may prescribe, the name and grade of each employee to whom this act applies in or under said department or establishment who shall be at any time in a nonpay status, showing the dates such employee was in a nonpay status, and the amount of salary, pay, or compensation lost by the employee by reason of such absence. The Civil Service Commission shall keep a record of appointments, transfers, changes in grade, separations from the service, reinstate- ments, loss of pay, and such other information concerning individual service as may be deemed essential to a proper determination of rights under this act, and shall furnish the Commissioner of Pensions such reports therefrom as he shall from time to time request as necessary to the proper adjustment of any claim hereunder, and shall prepare and keep all needful tables and records required for carrying out the provisions of this act, including data showing the mortality experience of the employees in the service and the percentage of withdrawal from such service, and any other information that may serve as a guide for future valuations and adjustments of the plan for the retirement of employees under this act. The Commissioner of Pensions shall make a detailed comparative report annually showing all receipts and disbursements on account of refunds, allowances, and annuities, together with the total number of persons receiving annuities and the amounts paid them. Sec. 14. That none of the moneys mentioned in this act shall be assignable, either in law or equity, or be subject to execution, levy, or attachment, garnishment, or other legal process. Sec. 15. That there is hereby authorized to be appropriated, from any moneys in the Treasury not otherwise appropriated, the sum of $100,000 for salaries and for clerical and other services, the purchase of books, office equipment, stationery, and other supplies, and all other expenses necessary in carrying out the provisions of this act, including traveling expenses and expenses of medical and other examinations as provided in section 5 hereof. The Secretary o:^ the Interior shall submit annually to the Secre- tary of the Treasury estimates of the appropriations necessary to continue this act in full force and effect. Sec. 16. That the Commissioner of Pensions, with the approval of the Secretary of the Interior, is hereby authorized and directed to select three actuaries, one of whom shall be the Government actuary, to be known as the Board of Actuaries, whose duty it shall be to annually report upon the actual operations of this act, with authority to recommend to the Commissioner of Pensions such changes as in its judgment may be deemed necessary to protect the public interest and maintain the system upon a sound financial basis. It shall be the duty of the Commissioner of Pensions to submit with his annual report to Congress the recommendations of the Board of Actuaries. It shall be the duty of the Board of Actuaries to make a valuation of 10 the " civil-service retirement and disability fund " at the end of the first year following the passage of this act and at intervals of every five years thereafter, or oftener, if deemed necessary by the Com- missioner of Pensions. The compensation of the members of the Board of Actuaries, exclusive of the Government actuary, shall be fixed by the Commissioner of Pensions with the approval of the Secretary of the Interior. Sec, 17. That all laws and parts of laws inconsistent with this act are hereby repealed. Approved, May 22, 1920. AMENDMENTS TO RETIREMENT ACT. AMENDMENT TO RETIREMENT ACT. Public — No. 142 — 67th Congress. S. 2802. An Act To amend an Act entitled "An act for the retirement of employees in the classified civil service, and for other purposes," approved May 22, 1920. Be it enacted hy the Senate and House of Representatives of the United States of America in Congress assembled^ That section 11 of the act entitled "An act for the retirement of employees in the classified civil service, and for other* purposes," approved May 22, 1920, is hereby amended by adding at the end thereof three new paragraphs to read as follows : " Each executive department, and each independent establishment of the Government not within the jurisdiction of any executive de- partment, shall establish and maintain such record as will enable it to determine the amount deducted within each fiscal year from the basic salary, pay, or compensation of each employee within its juris- diction to whom this act applies. When such employee is trans- ferred from one office to another a certified abstract of his official record shall be transmitted to the office to which the transfer is made. " When application is made to the Commissioner of Pensions for return of deductions and accrued interest, as provided in this section, such application shall be accompanied by a certificate from the proper officer showing the complete record of deductions, by fiscal years, and other data necessary to the proper adjustment of the claim. " The Commissioner of Pensions, with the approval of the Secre- tary of the Interior, shall establish rules and regulations for credit- ing and reporting deductions and for computing interest hereunder." Sec. 2. That section 13 of such act of May 22, 1920, is amended to read as follows: " Sec. 13. That it shall be the duty of the head of each executive department and the head of each independent establishment of the Government not within the jurisdiction of any executive depart- ment to report to the Civil Service Commission, in such manner as said commission may prescribe, the name and grade of each employee (11) 12 to whom this act applies in or under said department or establish- ment who shall be at any time in a nonpay status, showing the dates such employee was in a nonpay status, and the amount of salary, pay, or compensation lost by the employee by reason of such absence. The Civil Service Commission shall keep a record of appointments, transfers, changes in grade, separations from the service, reinstate- ments, loss of pay, and such other information concerning individual service as may be deemed essential to a proper determination of rights under this act, and shall furnish the Commissioner of Pensions such reports therefrom as he shall from time to time request as necessary to the proper adjustment of any claim for annuity here- under, and shall prepare and keep all needful tables and records required for carrying out the provisions of this act, including data showing the mortality experience of the employees in the service and the percentage of withdrawal from such service, and any other information that may serve as a guide for future valuations and adjustments of the plan for the retirement of employees under this act. " The Commissioner of Pensions shall make a detailed comparative report annually showing all receipts and disbursements on account of refunds, allowances, and annuities, together with the total number of persons receiving annuities and the amounts paid them." Approved, February 14, 1922. Public — No. 182 — 67th Congress. S. 3263. An Act Construing the expression " all employees in the classified civil service of the United States," as used in section 1 of the act of May 22, 1920, entitled " An act for the retirement of employees in the classified civil service, and for other purposes." Be it enacted hy the Senate and House of Representatives of the United States of America in Co7igress assemhled^ That in the admin- istration of the civil service retirement act approved May 22. 1920, the expression " all employees in the classified civil service of the United States," as used in section 1 thereof shall be construed to include all persons who have been heretofore or who may hereafter be given a competitive status in the classified civil service, with or without competitive examination, by legislative enactment, or under the civil service rules promulgated by the President, or by Executive orders covering groups of employees with their positions into the competitive classified service or authorizing the appointment of indi- viduals to positions within such service. The expression " classified civil service " as the same occurs in other acts of Congress shall receive a like construction to that herein given. Approved, March 27, 1922. 13 Public — No. 243 — 67th Congress. H. R. 11407. An act to amend an act entitled "An Act for the retirement of employees in the classified civil service, and for other purposes," approved May 22, 1920. Be it enacted T)y the Senate and House of Representatives of the United States of America in Congress assembled^ That section 2 of the act entitled "An act for the retirement of employees in the classi- fied civil service, and for other purposes," approved May 22, 1920, is hereby amended by inserting after the seventh paragraph the following : " Class G shall include charwomen, laborers, and other employees whether classified or unclassified, who are employed on a regular annual basis and whose basic salary, pay, or compensation is at a rate less than $600 per annum. The annuity to any retired employee shall be determined according to the method prescribed in the fore- going schedules, except that no annuitj^ shall hereafter be granted to exceed the percentum nor the maximum provided for the respec- tive periods of service. It is provided that this class of employees shall otherwise be subject to the provisions of the act of May 22, 1920." Approved, June 17, 1922. EXECUTIVE ORDERS. EMPLOYEES OF THE EXECUTIVE OFFICE EXCEPT SECRETARY TO THE PRESIDENT INCLUDED IN THE PROVISIONS OF THE RETIREMENT ACT. EXECUTIVE ORDER. In the exercise of discretion conferred by the civil service retire- ment act, approved May 22, 1920, and upon recommendation of the Civil Service Commission, the provisions of said act are hereby extended to include employees of the Executive office, with the excep- tion of the Secretary to the President. WooDRow Wilson. The White House, 3 August, 1920. EXCLUSION OF EMPLOYEES OF THE ALASKAN ENGINEERING COMMISSION FROM PROVISIONS OF RETIREMENT ACT. EXECUTIVE ORDER. In the exercise of discretion conferred by the civil service retire- ment act, approved May 22, 1920, and upon the recommendation of the Secretary of the Interior and the Civil Service Commission, employees of the Alaskan Engineering Commission are hereby excluded from the provisions of said act. WooDRow Wilson. The White House, 24 September, 1920. EXCLUSION OF CERTAIN EMPLOYEES OF THE RECLAMATION SERVICE FROM THE PROVISIONS OF THE RETIREMENT ACT. EXECUTIVE ORDER. There are hereby excluded from the operation of the retirement act of May 22, 1920, noneducational employees in the Reclamation Service, intermittently and irregularly employed, and educational employees on daily rates, similarly employed, and the continuance of the present practice of making no deductions from their pay is hereby approved. This action is deemed necessary because of the intermittent character of the employment and the exceedingly fre- quent changes in personnel. WooDROw Wilson. The White House, 1 March, 1921. (14) 15 RETIREMENT ACT TO INCLUDE POSITIONS IN SCHEDULES A AND B OF CIVIL SERVICE RULES. EXECUTIVE ORDER. In pursuance of the authority granted by the act of May 22, 1920, " for the retirement of employees in the classified civil service," and upon recommendation of the Civil Service Commission, the pro- visions of said act are hereby extended to include employees ap- pointed to positions named in schedules A and B of the civil service rules through open competitive examination, and all former com- petitive classified employees serving in such positions to which they were or could have been promoted or transferred in accordance with the principles laid down in section 3 of civil service Rule II, that " the proper appointing officer may fill an excepted position as com- petitive positions are filled, in which case the person appointed will receive all the rights of a competitive employee." WooDROw Wilson. The White House, ^^ December^ 1920. EXTENSION OF THE RETIREMENT ACT TO UNCLASSIFIED LABORERS. EXECUTIVE ORDER OE JUNE 7, 192 2. (1) Under authority conferred by section 1 of the act of May 22, 1920, for the retirement of employees in the classified civil service, and for other purposes, and upon recommendation of the Civil Serv- ice Commission, the provisions of said act are hereby extended, effective September 1, 1922, to include groups of employees in the executive civil service as follows : {a) Unclassified laborers in all cities and in establishments or offices in which appointments are made under labor regulations ap- proved by the President. (6) Unclassified laborers in all offices in which appointments are made from subclerical or other registers for the classified service. (c) Unclassified laborers who have been transferred from classi- fied positions. (2) An employee to whom this extension applies shall, in order to receive credit for service rendered since August 1, 1920, deposit with the Treasurer of the United States an amount equivalent to such de- ductions, with interest, as would have been made from his salary, pay, or compensation during such period had he been subject to the act; but failure to make such deposit shall not deprive the employee of credit for service to which he would otherwise be entitled. 16 (3) The provisions of this Executive order shall not extend to un- classified laborers employed in parts of the service in which classified employees have been excluded from the provisions of the retirement act by Executive order under section 1 of the act, nor shall they apply to employees who are in receipt of basic salary, pay, or compensation at a rate less than $600 per annum. * * * Warren G. Harding. The White House, June 7, 1922. POSITIONS AFFECTED BY THE RETIREMENT ACT. To Heads of DepartTnents, Branches, and Offices: Inquiries have been received concerning the application of the re- tirement act of May 22, 1^20, to certain classes of positions. The title of the act, namely, "An act for the retirement of em- ployees in the classified civil service, and for other purposes," con- tains words which are repeated several times in the act. The defini- tion of the chissified civil service contained in section 1 of civil service rule II excludes presidential appointees and mere unclassified la- borers. The Attorney General, in an opinion of June 23, 1913 (30 Op. 181), held that the term " classified civil service " in section 6 of the act of August 24, 1912, relating to removals was used in the more popular sense of the competitive service, and therefore should not be held to include excepted positions, unless the occupants were ap- pointed competitively as permitted by the civil service rules. The commission is of the opinion, and so holds, that all employees appointed without competitive examination under schedules A and B of the civil service rules, section 10 of the civil service rule II, the Executive order of March 27, 1917, and any other employees ap- pointed without competitive tests are not covered by the retirement act with the exceptions noted hereinafter. However, a former com- petitive classified employee who has been promoted or transferred to a position excepted under schedule A to which he could have been appointed or who was appointed in accordance with section 3 of civil service rule II, namely, " but the proper appointing officer may fill an excepted position as competitive positions are filled, in which case the person appointed will receive all the rights of a competitive em- ployee," is an employee in the classified civil service of the United States and is covered by fehe retirement act. Persons included in the competitive classified service with their positions by general Execu- tive order or appointed to such positions by individual Executive order are included. Temporary appointees under sections 1, 2, 3, and 4 of civil service rule VIII are held not to be covered by the act, since they are not persons in the classified civil service of the United 16028°— 22— VOL 21 2 (17) 18 States; that is, in the more restricted sense of competitive classified service. They are not appointed regularly after meeting all require- ments of competition, if any of them. This is indicated by the fact that temporary appointments in the departments at Washington are made without regard to the apportionment. Temporary employees are outside the scope of the law governing removals. Temporary employees do not have the full benefit of leave or other privileges allowed competitive employees. By direction of the commission. Very respectfully, Mapt^in a. Morrison", President. United States Civil Service Commission , June Jj-, 1920. RULES OF PROCEDURE. Regulations Governing the Administration of the Retirement Act of May 22, 1920. Under authority conferred upon the Commissioner of Pensions and the Secretary of the Interior by section 4 of the act of May 22, 1920, 41 Stat. 614, the following regulations are. promulgated for the guidance of all concerned in the administration of the said act. organization. To administer the retirement act, there is created in the Bureau of Pensions a division which shall be called the Retirement Division. The division shall have charge of filing, jacketing, and numbering all claims for annuity, refund, and allowances, and the custody of the records thereof. All claims shall be numbered consecutively in the order of filing, the same number to be retained after issue of certifi- cate. The flat filing system shall be used for all claims and an alpha- betical card record shall be kept. discipline. The regulations governing the Pension Bureau heretofore or here- after adopted shall, in so far as in their nature they are applicable, govern the Retirement Division in all things relating to discipline. FUNCTIONS. The Retirement Division shall have sole charge of the adjudication of claims for annuities, refunds, and allowances, and all matters di- rectly or indirectly connected with such adjudication. This contemplates no change in the prescribed duties of the Finance Division and the Disbursing Division, with respect to pay- ments from " the civil service retirement and disability fund." CLAIMS AND EVIDENCE. Claims for annuities, refunds, and allowances shall be by applica- tion for the same filed in the Bureau of Pensions. Such application must be in a form prescribed by the Commissioner of Pensions. Printed forms have been prepared for use in making application for annuity, sections 1 and 6, refund, and accumulated deductions, (19) 20 section 11, accrued annuity, sections 5 and 7^, and service credit, section 10, such forms being designated by suitable numbers and containing such provisions for service record and such instructions for preparation, execution, and course of transmission to the Bureau as to materially speed the adjudication of all claims in case the in- structions are fully followed. These forms must be used as a basis for all claims. Claims shall first go to the mail section, which shall place thereon a stamp indicating the date of receipt in the bureau, and from there be sent directly to the Eetirement Division, which will determine the validity of the application. In event the application is lacking in essential elementSj, it may be returned to the proper party for com- pletion or correction, with a new blank, if necessary. However, the omission or defect may be supplied by affidavit if such a course is deemed preferable. Applications should be supported by a certificate from the head of the department, branch, or independent office of the Government in which the applicant has been last employed, stating the age and period or periods of service of the applicant, and salary, pay, or compensation received during such period or periods, as shown by the official records. An appropriate schedule form with full instruc- tions is made a part of the official application form itself. For further evidence in claims, inquiry should be made of the head of any department, branch, or independent office where the claimant was formerly employed, requesting information as to such employment. When loss or destruction or incompleteness of official records is shown, inferior or secondary evidence is then admissible and should be called for. The certificate from the head of the department, branch, or in- dependent office referred to in this act, must, in the case of the executive departments, be made by the head of the department or by one of the assistant heads, and in the case of a branch or independent office of the Government not within the jurisdiction of an executive department, the certificate must be made by the head of the branch or independent office or the acting head of such branch or inde- pendent office. In accordance with section 13 of the retirement act, such inquiry as may be deemed essential to the proper adjudication of the rights of applicants must be made of the Civil Service Commission in every case concerning the service of individuals. The Civil Service Commission is to keep a record showing all in- formation with reference to any employee, required in the adminis- tration of the retirement act, as provided in section 13 thereof. 21 Said commission will likewise advise as to the "status of employees under the act, and will determine who, under the act, are mechanics, city and rural letter carriers, and post-office clerks eligible for re- tirement at 65 years of age and railway postal clerks eligible for re- tirement at 62 years of age, in a particular case. Age and length of service will be determined from the reports of the department, branch, or independent office where applicant was last employed, supplemented by reports from other places of em- ployment and the Civil Service Commission. Where the facts are evident and computations arc required to determine the length of service, they will be made in the Bureau of Pensions. The Pension Bureau will concern itself only with the questions left to its determination by the act, viz, adjudication and payment of annuities, refunds, and allowances, and in ascertaining the facts necessary upon which to base its action in obtaining a result. Hypo- thetical questions or cases will not receive consideration. Under the provisions of said law and the comity between depart- ments, fullest faith and credence should be given to reports from ad- ministrative offices and the Civil Service Commission; however, should it come to the knowledge of the Bureau of Pensions that facts are probably otherwise than as stated in said reports, investi- gation may be made and the truth ascertained. In considering evidence and applying it to any case, the orders, in- structions, and regulations governing the Pension Bureau, in so far as their nature renders them applicable, shall apply. The right to annuity and the determination of the amount thereof shall depend upon eligibility for retirement, age, pay, and length of service. Each of. these facts must be determined from the evidence in the particular case. Annuities granted for retirement on account of age shall commence from the date of separation from the service and continue during the life of the annuitant, unless otherwise ter- minated by law. The average annual basic salary, pay, or compensation from the United States for the 10 years next preceding the date on which an employee shall retire will be the basis of computation for fixing the percentage of salary, such 10 years meaning allowable service years, as decided by the Comptroller of the Treasury, June 30, 1920. When the requisite service and age are shown entitling an appli- cant to the benefits of class A, periods of service and age beyond the requirement need not be fully developed at the expense of material delay in the adjudication of the claim. When, however, no such de- lay will occur, the complete service should be determined for future use in case legislative enactment may make such additional service of value. 22 The per cent of an employee's annual basic salary, pay, or compen- sation is calculated upon an annual salary of $1,200 for the last 10 years of service to produce the maximum amount of the annuity. Although average salary in excess of $1,200 is immaterial in its ef- fect upon the annuity rate in such cases, such salary should be defi- nitely determined to meet future exigencies, such as change in an- nuity rates based upon exact salary, etc., and as a basis for the re- quirements of the Board of Actuaries provided by section 16 of the act. An employee's annual basic salary, pay, or compensation, for the last 10 years of service, when less than $1,200, must be accurately fletermined in order to arrive at a proper conclusion as to the exact amount of annuity to which such employee may be entitled. DISABILITY. An application for retirement on account of total disability under section 5 of the retirement act may be executed and filed at any time. An application under this section must be accompanied by certificate of the applicant's physician, if there be such, fully describing all physical signs of any existing disease or injury, with an expression of opinion as to the degree to which the applicant is disabled for useful and efficient service. In addition to the above requirement, a state- ment of the applicant's superior officer who may have personal knowl- edge of the facts by reason of close contact with the employee must be furnished, showing whether, in the opinion of such officer, the ap- plicant, on account of disease or injury, is totally disabled for useful and efficient service in the position held, and if not able to perform his present duties but able to perform the work of some other posi- tion, whether such other position has been offered the employee, to- gether with a description of the character of the duties of such other position and its attendant compensation. Such statement should also disclose whether the existing disease or injury is the result of vicious habits, intemperance, or willful misconduct on the part of the em- ployee. The Retirement Division, after determining that an employee has made proper claim, and such prima facia showing as is required by section 5 of the act of May 22, 1920, and that no legal grounds for rejection exist, shall cause the claimant to be examined by a medical officer of the United States or a duly qualified physician or surgeon or board of physicians or surgeons designated by the Commissioner of Pensions for that purpose. Said annuity shall commence from the date of inception of total disability for useful and efficient service, but not prior to termination of pay status. 23 Fees for examinations made under the provisions of the retirement act by physicians or surgeons who are not medical officers of the United States shall be allowed in the same amount, manner, and ex- tent as now allowed to them for making examinations in pension cases. All such fees shall be paid out of the appropriation for the cost of administering the retirement act, and a careful and separate account of such items shall be kept and report thereof made by the Commissioner of Pensions. APPLICAlTrON FOR REFUND OF DEDUCTIONS. Applications of claimants for return of deductions of salary, pay, or compensation, with accrued interest, under the provisions of sec- tion 11 of the act of May 22, 1920, as amended by the act of February 14, 1922, shall be executed before some officer authorized to administer oaths for general purposes. If such officer is not required by law to have and use a seal, his official character, signature, and term of office must be certified by the proper State, county, or city officer un- der his official seal unless a certificate has been filed in the Bureau of Pensions for general reference. Applications shall be supported by a certificate which may be pre- pared and signed by any person who has custody of official records, showing deductions from the employee's basic salary, pay, or compen- sation, but the certificate must be countersigned by the head of the department or by one of the assistant heads, and in the case of a branch or independent office of the Government not within the juris- diction of an executive department, it may be countersigned by the head or acting head of such branch or independent office. The au- thority to countersign, however, may be delegated by the head of the department or independent establishment to some other person or persons, provided the one so designated files with the Commissioner of Pensions a duly authenticated certificate showing his authority to act. The commissioner may, in his judgment, limit the number of persons designated in each department or independent establishment. The certificate of the administrative officer shall include sufficient data to completely identify the claimant, and it shall show the actual amount deducted for the "civil service retirement and disability fund" from the basic salary, pay, or compensation earned during each fiscal year whether the employee's compensation is now, or has been since August 1, 1920, on an annual monthly, daily, hourly, or piecework basis, as well as other data necessary to the proper adjust- ment of the claim. Applications for return of deductions under the provisions of sec- tion 11 will no longer be forwarded to the Civil Service Commission for certification, but after completion should be mailed directly to the Commissioner of Pensions, Washington, D. C. .24 COMPUTATION OF INTEREST UNDER ACT OF MAT 22, 1920. In computing interest under the provisions of the retirement act the following practice will be observed, attention being invited to a relevant decision of the Comptroller of the Treasury dated September 15, 1920, and his supplementary decision dated October 5, 1920. The commercial method — 30 days to the month — is adopted. Inter- est shall be computed " for the actual time involved in each case," but when applicable the rule of average will obtain. When an annuity based on disability is discontinued, requiring refund of surplus with interest to the annuitant, interest on accumu- lated deductions, as affected by annuity payments, shall terminate with date of death or, in the event of recovery, with date of retirement. In case an employee is transferred from an unclassified to a classi- fied status and elects to make contribution to the retirement fund, nunc pro tunc, compute deductions with interest retroactively, cover- ing the service for which credit is desired, but not including periods of separation. In case of separation of an employee from the classified service, requiring refund of deduction with interest, the interest will termi- nate with last day of such service. However, as suggested by the Comptroller of the Treasury in decision of September 15, 1920, no interest will be allowed on refunds when fractional parts of a year only are involved. Reinstatement to a classified position merely requires the employee to redeposit the amount refunded to him on separation from the service, no interest accruing during the interval of separation. All money returned to an employee upon transfer to an unclassified position must be redeposited with interest upon retransfer to a classi- fied position before such employee may derive any benefit under the provisions of the act. In such case the employee must also deposit the amount of such deductions with interest as would have been made for such periods had he remained in a classified position at the salary received in the unclassified position before credit may be accorded, as provided in rule 3. In case of death of an annuitant, requiring payment of surplus with interest to the legal' representative, compute interest on average bala»ce to date of death. The compounding of interest on June 30 of each year is interpreted as the addition of simple interest to deductions for current fiscal year, the sum to be treated as principal on which interest will be computed at the close of th^ next fiscal year or interest period, when deductions for such period with simple interest will also be added. 25 For example, in case of a present employee computation will be made June 30, 1921, at the average rate of 2 per cent simple interest on deductions for the current fiscal year; the principal thus pro- duced to be augmented 4 per cent June 30, 1922, also by the deductions for the fiscal year July 1, 1921 to June 30, 1922, plus simple interest thereon computed by the rule of average. SPECIAL EXAMINATIONS. If it be determined by the Retirement Division that a claim is prima facie established, request may be made upon the Special Examination Division for such examination as may be deemed proper, but before any case is submitted for special examination such action must be approved by the Commissioner of Pensions. In conducting special examinations under the retirement act the orders, instructions, and regulations pertaining to the conduct of examinations in pension claims, in so far as they are applicable, shall govern. GENERAL. Where, for the purpose of annuity, claimant alleges honorable service in the Army, Navy, Marine Corps, or Coast Guard of the United States, a statement of the facts must be obtained by calls on the War, Navy, or other department, "according to circumstances. When an employee includes such service in his statement as a ground for annuity, and it is shown by report from the War, Navy, or other department, that he has performed such service, whether pension has been allowed therefor shall be shown by report from the Bureau of Pensions; whether compensation has been allowed therefor shall be shown by report from the United States Veterans' Bureau. An applicant under the act of May 22, 1920, who is in receipt of pension or war-risk compensation, or is eligible to receive either, may elect to have his term of honorable service in the Army, Navy, Marine Corps, or Coast Guard of the United States added to his period of civil service for the purpose of computation under the provisions of section 3 of the act. Should it appear in the adjudication of a claim for annuity that the claimant will benefit by the inclusion of military or naval service and the relinquishment of pension or compensation, he should be so advised and permitted to exercise the right of election. Information shall be called for from the United States Em- ployees' Compensation Commission in cases affected by the provi- sions of the final paragraph of section 5 of the retirement act. 26 INSTRUCTIONS KEL,ATIVE TO PAYMENT OF ANNUITIES, REFUNDS, AND ALLOWANCES. Section 12 of the act of Congress approved May 22, 1920, entitled, " An act for the retirement of employees in the classified civil service, and for other purposes," provides : That annuities granted under the terms of this act shall be due and payable monthly on the first business day of the month following the month or other period for which the annuity shall have accrued, and payment of all annuities, refunds, and allowances granted hereunder shall be made by checks drawn and issued by the disbursing clerk for the payment of pensions in such form and manner and with such safeguards as shall be prescribed by the Secretary of the Interior in accordance with the laws, rules, and regulations governing accounting that may be found applicable to such payments. In accordance with the provisions of the above section it is hereby directed that checks in payment of annuities, refunds, and allow- ances shall be issued and mailed to the last known address of the payee without separate vouchers. A check mailed on account of an annuity shall constitute payment in case the annuitant is alive on the date of its issue but shall be void if death occurs prior thereto. It is f-urther directed that the checks shall show " Interior," " Ee- tirement," and the number of the annuitant's certificate on their face and have instructions printed on their back as follows : IMPORTANT. This check must be indorsed in ink by the person in whose favor it is drawn, and the name must be spelled exactly the same as it is on the face of the check. If indorsement is made by mark (x), it must be witnessed by two persons who can write, giving their places of residence in full. Pencil indorsements will not be accepted. Sign on this line. APPEAL. Appeal to the Secretary of the Interior lies from the final action or order of the Commissioner of Pensions affecting the rights or in- terests of any person or the United States under the retirement act. In the event that the final action or order of the Commissioner of Pensions adversely affects the rights or interests of any person under this act, such rejection will conclude with notice to the claimant of his right of appeal to the department, accompanied by a copy of these rules. Service thereof will be made by registered mail with request that receipt card be returned. Such appeal must be filed with the Commissioner of Pensions with- in 30 days from the date of service of notice of such final action or order. The commissioner will thereupon consider and determine whether the action or order from which the appeal is taken shall be 27 adhered to; and if he shall determine not to recede therefrom he shall, within a period of 30 days from receipt, forward said appeal, together with the record in the case, to the department with a report stating his reasons for so adhering to the previous action ; and said appeal shall thereupon be entered upon a docket kept for that pur- pose. Thereafter the jurisdiction of the commissioner shall cease and determine and the case will be adjudicated by the secretary on the record. When a decision thereon is rendered, copy of same will be duly served by the secretary's office upon appellant or his counsel by registered mail. Motion for rehearing before the secretary must be filed within 30 days after receipt of the notice of the decision complained of, and will act as a supersedeas of the decision until otherwise directed by the secretary. Such motion must state concisely and specifically the grounds upon which it is based. Thereafter the cause will be again considered and appropriate action taken, which may consist either of adhering to the former decision or modifying or vacating the same, or the making of any other order deemed warranted. Notice thereof will be given by ordinary mail and the record will be at once re- turned to the files of the Pension Office for appropriate action under such final decision. In computing time under these rules the first day shall be ex- cluded and the last included: Provided^ however^ That where the last day falls on Sunday or a legal holiday or half-holiday such time shall include the next following business day. An appeal by an attorney will be entertained if he has filed a duly executed power of attorney for this purpose from the ap- pellant or is entitled under the rules to recognition; and no appeal, brief, motion, pleading, or other paper or communication relative to *a case on appeal, filed by a firm of attorneys or agents, shall be received or docketed unless the same be signed individually by one or more duly qualified members of such firm. An appeal taken on behalf of a claimant by or through a suspended or disbarred attorney will not be entertained. ATTOKNEYS. The retirement act contains no provision respecting the employ- ment or recognition of attorneys in the prosecution of claims there- under. The services of an attorney are seldom needed in such cases, as the evidence upon which such claims are adjudicated is usually a matter of official record. However, a claimant may be represented by an agent or attorney if desired. In order to be ac- corded recognition to appear in such case, an agent or attorney 28 must have complied with departmental regulations of September 27, 1917, Vol. 46, Land Decisions, 206, issued under the authority of section 6 of the act of July 4, 1884, 23 Stat. 98-101. Washington Gardner, G oTrhmissioTier. June 16, 1922. Approved : E. C. Finney, Acting Secretary, O LIBRARY OF CONGRESS 012 263 753 (^