$ I'l^^o Form 3368. . . i -V- 1. i Dec, 1921. \J\ , >j. IquoJS , .•■i,tt»XMAl.i , xTt, UNITBO STATES CIVIIi SERVICE COMMISSION. "Wasnington, ». C. RETIREMENT ACT OF MAY 22, 1920, WITH NOTES. It is reasonable to assume that every employee in the classified civil service is more or less interested in the operation of the civil service retirement act. Many important questions have naturally arisen under a law of such a novel and extensive character, which have called for opinions by legal officers and for decisions by officers charged with its administration. This pamphlet is an attempt to compile a reference book of the most important of these opinions and decisions without giving more than a brief statement of their general effect. Decisions which can necessarily apply to a very limited number of cases, those comparatively unimportant, and some not differing greatly from others in effect have been omitted. This pamphlet is. not a manual for adjudication of claims. Of course, the proper administrative officers consider cases in the light of com- plete opinions or decisions. Suggestions and criticisms are invited, with a view to making future editions more valuable. The following information may be helpful as indicating the course of pro- cedure necessary in filing claims under the act: 1. Retirement by reason of age is automatic, and an employee can not be retained beyond the retirement age against his wUl, but all he can do is to express to his superior officer his willingness to remain in the service. Should his retention be desired, the officer under whom he serves should recommend his retention in time for the head of the department, branch, or office to request the commission's approval of his retention at least 30 days before he reaches retire- ment age. 2. Claims for annuity by reason of age or disability are addressed to the Commissioner of Pensions, on forms provided for the purpose, copies of which are distributed among administrative officers. These forms contain full instruc- tions and should be forwarded in accordance with the instructions. 3. Application for refund of deductions made from the salary of employees separated from the classified civil service is addressed to the Commissioner of Pensions, through the Civil Service Commission. Copies of the application form are distributed to administrative officers. 4. There are special forms for application for refund of deductions in the case of deceased persons. 5. The Civil Service Commission distributes no forms for the use of applicants for any of the benefits under the Retirement Act, but it furnishes forms, on request, upon which officers request continuance of employees in the service beyond the retirement age, and for report of dates of separation from the service and other information necessary for use by the Bureau of Pensions in adjudicating claims. Z'2^-'^ t Z' 5~ 4p section I. 1. Be it enacted hy the Senate and House of Representatives of the United States of A^merica in Congress assembled, That beginning at the expiration of ninety days next following the passage of this act, all employees in the classi- fied 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, 79454°— 22 1 w ■'^- That mectianics, city and rural letter carriers, and i)ost-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. Date of Retirement. — In accordance with the practice of excluding one terminal date an employee is regarded as reaching age of retirement at the close of business on the day preceding his birthday anniversary. The rule is not inexoi'able or without its exceptions. Like all fictions of the law it is for the promotion of justice and is not to be invoked to work an in- jury. (Secretary of the Interior, July 21, 1921.) STATUS OF EMPLOYEES ON LEAVE WITHOUT PAY EOK MOEE THAN A YEAR PEIOE TO AUGUST 21, 1920. The exact question with which the commission is confronted is as to whether or not an employee rendering no service but excused from actual service under " leave without pay " is an " employee in the classified civil service of the United States " within the meaning of that expression as used in the retirement act. The commission does not find the status of such person clearly defined by statute or by the civil service rules established by the President under the powers conferred upon him by statute. Section 7 of the act of March 15, 1898 (30 Stat., 816) provides for "leave with pay," in the discretion of the head of a department, for not more than thirty days in one calendar year to any or all employees. A proviso of the same section vests in the head of a department the further discretionary power to grant an employee, under certain conditions, an additional leave of absence with pay for a second period of not more than thirty days in any calendar year. It is to be noted that the periods above provided for are both " leaves with pay." No leave icitJiout pay is expressly provided for or defined. The only reference to such a status is the negative provision that an employee borne on the rolls of the department after the expiration of such leave with pay shall not be entitled to pay " during the period of such excessive absence." The case of an employee who desires to be absent from actual service and who is not cared for by the statute above referred to providing for leave with pay is expressly provided for under Rule IX of the President's rules governing the classified civil service, under which such employee, assuming separation from the service without delinquency or misconduct, may be reinstated by the department within one year from the date of such separation. This gives to the employee a status for reinstatement and to the department the discretionary power to reinstate, the initiative resting solely with the department. Both status and right are limited to one year from date of separation, actual rein- statement requiring a precedent ascertainment and certification by the Civil Service Commission that the employee is eligible for reinstatement under the rule. Cases arose in which the employee did not desire to accept a status in which restoration to the service was to be dependent on the affirmative exercise of a purely discretronary power at a future time by the then head of the depart- ment, and in which the head of the department was willing at the time of the contemplated separation to exercise his discretionary power in the present to become effective at a fixed time in the future. This was contrived as a means of creating a distinct status of nonservice and nonpay to be terminated within the time limit by the mere return of the employee to actual service. So long as leave without service or pay was limited to one year from date of separation from service, it constituted an anticipatory exercise of a right that would in every case be approved by the Civil Service Commission and was deemed to be no substantial variance from the rule. The departments desired in many cases to give to employees about to leave the service the sense of security that was carried by " leave without pay " as distinguished from formal separation from the service and formal reinstatement on the initiative of the department at a future time. The practice was resorted to from time to time in the several departments; By common consent it was limited to a maximum period of one year so as to respect the limitation irr-H3fe-i'ei-»8tatem«ftt-Pule-.^..By like common consent in case the employee faile^ toljif8fWifiYtOFaCSji(Bii^3gE a(^ual service within a ^RECEIVED Kmnmt DOCUMENTS DIVISION 1^^^. 6 >*: period of one year from such separation from pay and duty, the anticipatory reinstatement was deemed to have been ineffectual and the separation was regarded as absolute. It was the universal practice, after the expiration of one year without return to actual service, and upon a desire by the department to make a formal reinstatement, to send the case to the Civil Service Commis- sion to ascertain and certify the employee's status for reinstatement. This practice did in a sense respect the reinstatement rule, while in practical effect it enabled a department to give to an employee a full year of absence in addi- tion to the year provided for by Rule IX. It doubled the period of absence and reinstatement by departmental practice and common consent. This was deemed to be the utmost limit of liberality possible under the law. On July 28, 1916, the Congress enacted a statute in relation to employees of the Post Office Department, which is a legislative recognition of the depart- mental practice of "leave without pay." Since it carries the same limit of one year from separation, this act merely gave express direction for the main- tenance in one department of a practice long continued in all departments, and did not modify the attitude or practice of the Civil Service Commission in any case. In so far as the rights of employees absent on " leave without pay " rest on a departmental practice, they are confined within the limitations of the prac- tice, which make the separation absolute at the end of one year. Rights of postal employees created by the act above referred to are expressly limited to the period of one year. Before and at the time when the retirement act was passed the most liberal possible view of the status of employees on "leave without pay " under existing law and practice was : (1) That an employee separated from actual service on " leave without pay " was constructively in the civil service, to wit : In a status of nonservice and non- pay to be terminated by return to actual service within the year, or to become absolute by failure to return to actual service within the year. (2) That an employee separated from actual service, without delinquency or misconduct, to whom " leave without pay " was not granted or whose period of permissible leave without pay had expired, was not in the civil service, and retained only a status for reinstatement to the service, on the initiative of the department within one year from the date on which such separation became absolute. The exact question remaining is as to whether there is anything in the retirement act to warrant a modification of the views above expressed as ap- plied to the rights under that act of employees absent from actual service on " leave without pay," and whose full year from date of actual service has expired. The primary and principal purpose of the retirement act was to separate from the Federal service on partial pay Federal employees who were on full pay but who, by reason of advanced years, were capable of rendering but par- tial or no service. No proposed amendment to make the provisions of the retirement act ap- plicable to former employees who had been separated from the Federal service within a limited time before the passage was accepted by the Congress. On the contrary the act is expressly limited to " employees in the classified' civil service of the United States " " beginning at the expiration of 90 days next following the passage " of the act. Under all other law and practice, a former employee who is granted one year's leave without pay and who fails to return to a status of actual service within the year, is fully separated from the service and, unless and until re- instated, is not " in the service " of the United States. The primary purpose of the act can not well be said to be effectuated by changing a former employee's status of nonservice and nonpay to a status of nonservice and partial pay. One no longer in the service can not well be separated from the service. Nor can such former employee be said to "be automatically separated from the service " as provided in section 6 of the act by the mere change of his nonservice status without pay to a status of nonservice with partial pay. The only reference to leave without pay is in the last sentence of section 3, and it is consistent with the views above expressed. The power of a department to grant leave without pay was subject to certain limitations inherent in the general law of the case. For example, in case an employee holding a statutory position was granted leave of absence from service other than leave toith pay it was necessary to deem such status a separation from the service to the extent at least of creating a vacancy in the position. otherwise, the department would not be authorized to appoint a successor even temporarily and would lose the benefit of the appropriation available for the position. While the commission is committed to the theory that an employee on leave without pay for a period of not more than one year is constructively in the Federal service, unless and until the time limit shall expire without the em- ployee's return to actual service, there is found no basis for an extension of the period of such constructive service. The commission is of the opinion, therefore, that under the retirement act a former employee who was granted one year's leave without pay a full year before August 21, 1920, and who did not return to a status of actual service, is not within the provisions of the retirement act, (Minute 4, Dec. 23, 1920.) (The commission believes the foregoing views to be correct and just and equitable alike to employees and the Government, but calls attention to decisions which follow with which it does not agree. ) An Employee on Indefinite leave at the time the retirement act of May 22, 1920, became effective was at that time " in the classified civil service of the United States " within the meaning of those words as used in the retirement act. (Attorney General, Feb. 25, 1921.) leave Without Pay Exceeding One Year. — Departments are not restricted in allowance of leave without pay to a period of one year, but an employee remains in the service so long as his name is properly borne on the rolls of his department, and not contrary to specific directions. (No. 16, Secretary of the Interior, Mar. 11, 1921.) Status of Employees on "Furlough" or "Laid Off." — ^Employees in the engi- neer department at large of the War Department who are on " furlough " are in the service within the meaning of the retirement act during the life of the furlough as provided for in the regulations for that service. Employees in said service who have been " laid off " also have a like status so long as they are eligible to resume active duty without taking a new oath, vnthout a new ap- pointment and without any form of approval by the Civil Service Commission. " This appears to be not only the reasonable and logical effect of the law, regu- lations, and practice, but it is also highly desirable from an administrative point of view, forming a rule applicable alike throughout the service so that the benefits of the retirement act may be uniformly applied to different employees having the same status, except perhaps only in a merely technical sense, without unjust discrimination against employees in a particular department." (No. 17, Secretary of the Interior, May 16, 1921.) Employees in Positions Excepted by law from the requirements of the civil service act and rules are not " employees in the classified civil service " within the meaning of those words as used in the retirement act. (Attorney General, July 19, 1920.) Mechanics. — ^A mechanic who has ceased to do work of a mechanic and is on the rolls as a desk clerk is not subject to retirement until he has reached the age of 70. Retirement age is to be determined by years of life and character of present work of employee. (Solicitor, Interior Department, July 2, 1920.) The duties of an employee are to determine in each case whether he is a mechanic retirable at 65, or other than a mechanic, retirable at 70. (Minute June 19, 1920, Minute Oct. 4, 1920.) 2. 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 Congress, 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 Commission, 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. Superintendent, TTnited States Capitol Building and Grounds — Employees. — Un- skilled laborers and employees paid from an appropriation spent under the supervision and control of the Senate Committee on Rules are subject to the retirement act. (Attorney General, Sept. 29, 1920.) Extension of Act to Executive Office. — Employees of the Executive office were made subject to the retirement act by Executive order of August 3, 1920. Extension to Unskilled Laborers. — " I think the provisions under consideration confer upon the President authority to extend the act to individuals occupying unclassified positions." (Attorney General, June 14, 1920.) Retirement Act Applies to Certain Classified Excepted Employees. — " The provisions of said act [Retirement Act] are hereby extended to include em- ployees appointed to positions named in Schedules A and B of the Civil Service Rules through open competitive examination, and all former competitive classi- fied 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 jwsition as competitive positions are filled, in which case the person appointed will receive all the rights of a competitive employee.' " (Ex- ecutive order of Dec. 24, 1920.) Exclusion. — Alaskan Engineering Commission are excluded from the pro- visions of the act. (Executive order of September 24, 1920.) Exclusions. — There are hereby excluded from the operation of the retirement act noneducational employees in the Reclamation Service intermittently and irregularly employed, and educational employees on daily rates similarly em- ployed. (Order of Mar. 1, 1921.) 3. 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 compensation 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 pro- visions of this act, but members of the police and fire departments shall be ex- cluded therefrom. Police Court Employees. — ^The retirement act applies to employees of the police court of the District of Columbia. (Minutes, Sept. 9, 1920.) Employees of Probation Oificer. — The retirement act does not apply to em- ployees of the office of the probation officer, supreme court of the District of Columbia. (Minutes, Nov. 15, 1920.) 4. 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 au- thorize 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. Acting Postmasters. — The retirement act does not apply to acting postmasters and deduction should not be made from the salary of an acting postmaster. Should a classified employee be transferred to the position of acting postmaster, he may, upon retransfer to a classified position, by making proper deposit of funds, receive the benefits of the retirement act. (Minutes, Apr. 21, 1921.) SECTION II. 1. That for the purpose of determining the amount of annuity which retired em- ployees 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 30 years or more. The annuity to a retired employee in this class shall equal 60 per centum of such employee's average annual basic salary, pay, or compensation from the United States for the 10 years next preceding the date on which he or she shall retire : Provided, That in nc 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 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 $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 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 $504 per annum, or be less than $252 per annum. 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 centum of such employee's average annual basic salary, pay, or com- pensation 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 la this class exceed $360 per annum, or be less than $180 per annum. Ten- Year Period. — " The ' 10 j^ears next preceding the date of retirement,' for the purpose of computing average salary, etc., relates to the 10 years of service immediately preceding retirement. * * * As the enactment requires that the varying periods of service be counted in determining the length of service, the proper average of salary, etc., must be obtained from the last 10 years of such service." (Comptroller of the Treasury, June 30, 1920.) Determining Average Salary of Injured Employee. — For that part of the 10- year period during which an injured employee received no pay except under an injured Federal employees' compensation act, the employee.'s basic pay on the basis of which the injuries compensation was allowed should be taken as the basic pay for the period involved and be included in ascertaining the average for the 10 years. (Comptroller of the Treasury, June 30, 1920.) 2. 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. Basic Pay of Post Office Clerks, Carriers, and Special Clerks. — Basic pay does not include increase of compensation generally provided annually for several years in addition to otherwise fixed compensation. (Comptroller of the Treas- ury, Aug. 12, 1920.) SECTION III. 1. That for the purposes of this act and subject to the provisions of section 10 hereof, the period of service shall be computed from the date of original em- ployment, whether as a classified or unclassified employee in the civil service of the United States, and sliall include periods of service at different times and services in one or more departments, branclies, or independent offices of tlie Government, and shall also include service performed under authority 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. Service in the Philippines is Included in computing length of service. (Min- utes, Oct. 5, 1920.) Credit for Service as Postmaster. — A postal clerk automatically retired is entitled to credit in computing period of service, for service performed as post- master. (No. 3, Secretary of the Interior, Sept. 11, 1920.) Credit not Allowed for Service in the Legislative Branch. — A skilled laborer under the clerk to the House of Representatives is not in the civil service but in the legislative branch of the service. (No. 4, Secretary of the Interior, Sept. 14, 1920.) Evidence of Service. — When official records of alleged service for which crec^t is claimed have been destroyed or lost, inferior or secondary evidence is then admissible. (No. 9, Secretary of the Interior, Jan. 22, 1921.) 2., 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. Leave with Pay Excluded in Certain Cases. — ^Where an excess of six months' absence is a combined pay and nonpay absence, the whole of such absence must be excluded in computing service. (Comptroller of the Treasury, June 30, 1920.) Period of Unused Leave. — The period of unused leave for which compensation was received can not be included in determining length of service. (No. 22, Secretary of the Interior, June 6, 1921.) SECTION IV. 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. SECTION V. 1. 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 retire- ment age as fixed in section 1 hereof, becomes totally disabled for useful and efficient service by reason of disease or injury not due to vicious habits, intem- perance, or willful misconduct on the part of the employee, shall upon his or her 8 own application or upon tlie request or order of the head of the department, branch, or independent office concerned, be retired on an annuity under the provisions of section 2 hereof: Provided, Jiowever, That no employee shall be retired under the provisions of this section until examined by a medical officer of the United States or a duly qualified physician or surgeon or board of physi- cians or surgeons designated by the Commissioner of Pensions for that purpose and found to be disabled in the degree and in the manner specified herein. Date of Beginning of Annuity. — Annuity begins from the date that the claimant is found to have been totally disabled for useful and efficient service and not from the date on which the claimant was found to be totally disabled. (No. 20, Secretary Interior, June 3, 1921.) Application for Disability Annuity Need not Precede Separation. — Failure of an applicant for annuity under section 5 of the act to execute his application prior to separation from the service does not work forfeiture of title to annuity, but right to annuity is to be determined as of the date of separation from the service rather than from the date of application in such cases, if total disability be established as of that date. (Secretary Interior, Aug. 17, 1921.) Evidence of Total Disability. — Report of medical examiners is not necessarily final, but the Commissioner of Pensions and the Secretary of the Interior are to arrive at their conclusions from the entire record. (No. 19, Secretary In- terior, Feb. 21, 1921.) "^ 2. Every annuitant retired under the provisions of this section, unless the dis- ability for which retired is permanent in character, shall, at the expiration of one year from the date of such retirement and annually thereafter until reach- ing the retirement age as defined in section 1 hereof, be examined under direc- tion of the Commissioner 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 ascer- tain 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 neces- sary to determine the facts relative to the nature and degree of disability of any employee retired on an annuity under this section. Reinstatement, Disability Having Ceased. — A person retired on annuity for total disability will be regarded as eligible for reinstatement to an appropriate position upon certificate of the commission requested by his department within one year of the date that annuity ceases on the ground that total disability no longer exists. (Minutes, May 24, 1921.) 3. Fees for examinations made under the provisions of this section by physi- cians 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 em- ployee'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 admin- istering this act. 4. In all cases where the annuity is discontinued under the provisions 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. 5. No person shall be entitled to receive an annuity under the provisions of this act, and compensation under the provisions of the act of September 7, 1916, entitled "An act to provide compensation tor employees of the United States suffering injuries while in the performance of their duties, and for other' pur- poses," 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. SECTION VI. Sec. 6. That all employees to whom this act applies shall, upon the expira- tion of ninety days next succeeding its passage, if of retirement age, or there- after on arriving at retirement age as defined in section 1 hereof, be automat- ically 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 replaced by additional em- ployees, but if the exigencies of the service so require, places made vacant by such retirement may be filled by promotion or transfer of eligible employees already in the service: Provided, 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 retirement, 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 willingness 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 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 defined in section 1 hereof for more than four years. Automatic Separation. — Under section 6 every employee of the classes enu- merated in section 1 is automatically separated from the service upon arriving at the age of retirement regardless of his length of service unless by certification of the head of his department and the approval of the Civil Service Commission he is continued in the service as provided in said section 6. Those who have rendered 15 years or more of service are entitled to an annuity under section 1, and those who have rendered less service are not. (Attorney General, June 14, 1920.) Automatic Retirement. — An employee whose continuance has not been re- quested at least 30 days prior to his reaching retirement age is automatically separated as a classified employee upon reaching age of retirement. If he con- tinues to serve he serves merely as a temporary employee. (Minutes, Dec. 6, 1920.) Failure to Give 60 Days' Notice of Retirement. — Failure to give the notice specified by the act can not continue the employee in the service or in a pay status. (Comptroller of the Treasury, .June 30, 1920.) No Replacement by Additional Employees,— Section 6 prohibiting retired em- ployees to be " replaced by additional employees " in effect prevents appointing by reason of retirement anyone from outside the Government service. The law contemplates a vacancy somewhere among those actually in the service, and 10 wherever it may fall by reason of promotions or transfer there it must finally rest. (Comptroller of the Treasury, June 30, 1920.) Filling After July 1, 1921, a Vacancy Occasioned hy Retirement Before that Date. — The Comptroller of the Treasury decided that a vacancy caused by retirement from a departmental position during the fiscal year ended June 30, 1921, could not be filled after July 1. (May 25, 1921.) The commission is of the opinion that the qualified inhibition against filling a position resulting from the retirement of an employee ceases to be operative on June 30, 1921; and therefore holds that its own office, at least (not being an executive department), will be free from such inhibition after June 30. (Minutes, June 21, 1921.) Certification for Continuance.— " The object of the 30-day provision appar- ently was to afford the Civil Service Commission that length of time for con- sideration of the proposed retention of an employee. But if the commission in fact takes favorable action it will be sufficient even though within less than 30 days, if prior to the date when the employee would otherwise be retired. (Solicitor, Interior Department, July 2, 1920.) The commission has held that a request for continuance made less than 30 days before the employee reached retirement age was contrary to the statutory requirement and that approval of continuance was not warranted. (Minutes, Dec. 4, 1920.) Continuance at a Lesser Salary.— The Comptroller of the Treasury inclines to the view that the retention of an employee at a lesser salary, based upon certification, is not authorized, the fact of such reduction being an implication of inefficiency. (May 25, 1921.) The commission is of opinion that an employee in a higher grade, for ex- ample, may be considered inefficient as compared with employees in the same class and line of work, but that compared with clerks of a lower grade he may be found to equal or surpass the standard of such lower grade employees — the term efficiency being relative and not absolute. (Minutes, June 17, 1921.) Promotion of Continued Employee. — The promotion of an employee retained beyond retirement age is possible with the prior approval of the commission. (Minutes, Dec. 29, 1920.) Uncertainty Regarding Retirement Age. — Supervisor of telephone lines. Coast Guard Service, was regarded by department as retirable at 70'. " His position having now been definitely fixed as in the class retirable at 65, it is as though the act would begin to run when the decision is communicated to the depart- ment. (Minutes, Mar. 7, 1921.) SECTION VII. 1. 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 retirement 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 ap- plicant 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, however, That in the case of an em- ployee who is to be continued in the civil service of the United States beyond the retirement age as provided in section 6 hereof, he or she may make appli- cation for retirement at any time within such period of continuance in the serv- ice; but nothing contained in this act shall be construed to prevent the com- pulsory 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. Separation of a Continued Employee. — " * * * It is not believed that any- thing in the retirement act requires 60 days' notice in advance of the removal of an employee who has been continued for a term not exceeding two years. A contrary interpretation would work to the detriment of the service in case it was desired to remove such an employee on charges at the earliest possible 11 date. As the continuance of an employee beyond retirement age rests upon tlie reciprocal agreement of the department, the employee, and the commission, and as his tenure is terminable at any time if either he or the department chooses, it is not believed that the provisions of civil service Rule XII as to removal should be applied in his case. * * * The department will be further in- formed that a reasonable notice — say ten days or two weeks — to a continued employee whose separation is desired, with the advice that he may apply for retirement, will be sufficient, and that it is optional with the department whether any statement of reasons be furnished him." (Minutes, May 24, 1921.) 2. Upon receipt of satisfactory evidence the Commissioner of Pensions shall forthwith adjudicate the claim of the applicant, and if title to annuity be estab- lished, a proper certificate shall be issued to the annuitant under the seal of the Department of the Interior. Determination of Annuity or Refund. — " * * * It is the duty of the Com- missioner of Pensions under section 13 of the act to determine the annuity pay- able or the refund to be made. * * * " (Comptroller of the Treasury, July 2, 1920.) 3. 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 during 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. SECTION VIII. 1. That beginning on the first day of the third month next following the pas- sage of this act and monthly thereafter there shall be deducted and withheld from the basic salary, pay, or compensation of each employee to whom this act applies a sum equal to 2^ per cent 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 payment of annuities, refunds, and allowances as provided in this act. No Deductions from Pay for Temporary Services. — Retirement deductions are not required to be made from pay received by a permanent einployee for per- formance at the same time of the duties of a temporary position. (Comptroller of the Treasury, June 30, 1920.) Deductions to Be Made from Combined Salaries. — Where the employee has more than one permanent position * * * retirement deductions should be made from the compensation of each. (Comptroller of the Treasury, June 30, 1920.) Deductions from Salaries Paid by States. — Deductions are to be made from salaries of employees paid by States while they are on furlough from the Geo- logical Survey doing work paid for jointly by the Survey and the States. (Comp- troller of the Treasury, July 20, 1920.) Disbursing Officers May Not Withdraw Retirement Deductions from the Appro- priations. — " * * * The enactment specifically imposes upon the Secretary of the Treasury the duty of transferring retirement deductions from appropri- ations to the civil-service retirement and disability fund, and no disbursing officer is authorized to withdraw such deductions from the appropriations. * * *." (Op., Comptroller of the Treasury, June 25, 1920.) Disbursing Officers May Pay Only 97^ per cent of Basic Salary. — " * * * The disbursmg officers are authorized to pay only 97^ per cent of basic salary, pay, or compensation earned beginning August 1, 1920, whenever the employee is paid, 12 the monthly requirement not being such as to restrict such action to one month only. * * * (Op., Comptroller of the Treasury, June 30, 192,0.) 2. 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 provided, and the income derived from such investments shall constitute a part of said fund for the purpose of paying annuities and of carrying out the provisions of section 11 of this act. 3. The Secretary of the Treasury is hereby authorized and empowered 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 purpose of this act all moneys which may be contributed by private individuals or corpo- rations or organizations for the benefit of civil-service employees generally or any special class of employees. SECTION" IX. That every employee coming within the provisions of this act shall be deemed to consent and agree to the deductions from salary, pay, or compen- sation 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 regular 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 Revised Statutes of the United States, and of any other law, rule, or regulation affecting the salary, pay, or compensation of any person or persons employed in the civil service to whom this act applies. SECTION X. Sec. 10. That upon the transfer of any employee from an unclassified 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 "svith 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. Deposit to Obtain Credit for Unclassified Service. — A classified employee who fomerly had an unclassified status for a period subsequent to the effective date of the retirement act may receive an annuity without making the deposit for said period. He may make the deposit and receive credit for that time, but if he does not he merely loses credit for that period of service and does not forfeit his right to annuity nor lose credit for the period of prior service nor for later service. (Solicitor, Interior, January 22, 1921.) SECTION XI.. That in the case of an employee in the classified civil service of the United States who shall be transferred to an unclassified position, and in the case of any employee to whom this act applies who shaU become absolutely separated from the service before becoming eligible for retirement on an 13 annuity, the total amount of deductions of salary, pay, or compensation with accrued interest computed at tlie rate of 4 per centum per annum, compounded on June 30 of each fiscal year, shall, upon application, be returned to such employee: Provided, That all money so returned to an employee must be re- deposited with interest before such employee may derive any benefit under the provisions of this act, upon reinstatement or retransfer to a classified posi- tion ; 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 compensation, together with interest thereon at 4 per centum per annum compounded as herein provided up to the time of his or her death, the excess of the said accumulated deductions over the said ajmuity payments shall be paid in one sum to his or her legal representatives upon the establish- ment 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 pro- visions 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 ad- ministrator, 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 Pensions to be legally entitled to the proceeds of the estate, and such payment shall be a bar to recovery by any other person. Each executive department, and each independent establishment of the Gov- ernment not within the jurisdiction of any executive department, shall estab- lish and. maintain such record as will enable it to determine the amount de- ducted within each fiscal year from the basic salary, pay, or compensation of each employee within its jurisdiction to whom this Act applies. When such em- ployee is transferred fi'om 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 de- ductions 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 proi)er adjustment of the claim. The Commissioner of Pensions, with the approval of the Secretary of the Interior, shall establish rules and regulations for crediting and reporting de- ductions and for computing interest hereunder. Computation of interest. — See decisions of the Comptroller of the Treasury, September 15, 1920, October 5, 1920, and February 5, 1921. Redeposit of Refund. — ^A former employee in order to be reinstated need not redeposit the deductions refunded to him. Redeposit may be made at any time together with interest thereon for the elapsed period since the refund, except periods of separation from the service, if any. Redeposit is merely a condition precedent to allowance of benefit under the act. The 2^ per cent deduction from salary, pay, or compensation must be taken during the period of service after the reinstatement even though the employee may never qualify for annuity by making redeposit of funds theretofore returned to him. (Solicitor, Interior, January 22, 1921.) SECTION XII. 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 14 issued by tlie 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. SECTION XIII. 1. 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 Com- mission 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 CivU Service Commission shall keep a record of appointments, transfers, changes in grade, separations from the service, reinstatements, 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 Com- missioner 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 ex- perience 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. Reports from Departments. — " The heads of the executive departments and independent establishments are directed to furnish to the United States Civil Service Commission, at such time and in such form and manner as it may pre- scribe, information to complete or to supplement its records, to enable it to carry out the requirements of the retirement act approved May 22, 1920, and to enable it to prepare and keep timely statistical and other information which experience has shown to be of value to the President, the Congress, executive officials, and the public." (Executive order, June 10, 1920.) 2. The Commissioner of Pensions shall make a detailed comparative report annually showing all receipts and disbursements on account of refunds, allow- ances, and annuities, together with the total number of persons receiving annuities and the amounts paid them. SECTION XIV. 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. SECTION XV. 1. 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, sta- tionery, 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. 2. The Secretary of the Interior shall submit annually to the Secretary of the Treasury estimates of the appropriations necessary to continue this act in full force and effect. 15 SECTION XVI. 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 Congi-ess the recommendations of the board of actuaries. It shall be the duty of the board of actuaries to make a valuation of 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 neces- sary by the Commissioner 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. SECTION XVII. That all laws and parts of laws inconsistent with this act are hereby repealed. MISCELLANEOUS. Certification. — Eligibles who have reached retirement age will not be certified except for temporary appointment. (Minutes, July 24, 1920.) Continuance. — The Public Printer requested the reinstatement and continu- ance of an employee. No request for extension was made as provided by the act, and he was automatically separated. Reinstatement denied. The Com- mission has uniformly disallowed requests for extension made subsequent to July 21, 1920, of employees who had reached retirement age at that time, except Avhen it was stated that the initiative had been taken prior to that date. (Min- utes, Sept. 22, 1920.) Continuance requested less than 30 days before retirement age disapproved. (Minutes, Dec. 4, 1920.) Deputy Marshals. — All deputy marshals are outside the " classified civil serv- ice " within the meaning of those w«rds as they occur in the retirement act. (Attorney General, Mar. 30, 1921.) Examination. — ^Applicants of retirement age not admitted. (Minute 4, July 24, 1921.) False Statement. — Request for retirement on annuity would not be favorably considered in case of an employee whose entire service was based on his false statement as to age. (Minutes, Sept. 18, 1920.) Laborers, Custodian Service. — Classified employees transferred to unclassified positions are subject to the retirement act, employees appointed to unclassified positions from classified registers are not subject to that act. (Minutes, June 23, 1921.) Navy Yards. — Furlough, reemployment. (Minutes, Oct. 30, 1920.) Porto Rico customs employees are in the classified competitive service and are therefore subject to the retirement act. (Minutes, Sept. 7, 1920.) Postal Agent at Shanghai. — The postal agent at Shanghai, China, is a post- master and therefore excluded from the operation of the retirement act. (Min- utes, Aug. 4, 1920.) Reemployment of Retired Employee. — The commission sees no obstacle so far as age is concerned to the reinstatement of a railway mail clerk retired at 62 to some position with a higher retirement age. (Minutes, Oct. 1, 1920.) A person who is receiving retired pay may not at the same time hold a posi- tion under the Government carrying compensation out of Government funds. (Minutes, Oct. 29, 1920.) Reinstatement of a person retired for age can not be made. (Minutes, Nov. 18, 1920.) 16 Retirement Age — Examination and Certification. — ^Admission to examination of person who has reached retirement age is forbidden as is also certification except for temporary appointment. (Minutes, July 24, 1920.) Secret Service Employees are subject to retirement act. (Minutes, Sept. 2, 1920.) Storekeeper-Gangers.— Their classified status is not affected by their tem- porary appointment in the excepted position of warehouse agents. (Minutes, Feb. 4, 1921.) Substitutes in Postal Service are within the provisions of the retirement act. (Minutes, Dec. 29, 1920.) procedure: in continuance, retirement, and refund. An employee who does not wish to be separated from the service should make an early written request for retention upon his official superiors, as the official request for retention must be made at least 30 days before the employee reaches retirement age. An employee desiring to be retired for age or total disability makes appli- cation through his official superiors upon the prescribed form which, after the addition of certain data by the department, goes to the Bureau of Pen- sions, which then obtains his service record from the Civil Service Commission and adjudicates the case. An employee passing beyond the provisions of the retirement act by sepa- ration or transfer, to secure the refund of deductions made from his salary, makes application through his official superiors, upon a prescribed form which, after the addition of certain data, first by the department and then by the Civil Service Commission, goes to the Bureau of Pensions for determination and payment of the amount. One about to reenter the service in a position subject to the retirement act should not apply for a refund. WASHINGTON : GOVERNMENT PRINTING OFFICE : 1922 LIBRARY OF CONGRESS 012 263 752 9 Hollinger Corp. pH8.5