Y <■/. PVi /IDS s %sy 3 DOC. - Y4.P84/10: D85/3 [COMMITTEE PRINT] DUAL COMPENSATION ACT REPORT DECEMBER 1, 1964, THROUGH SEPTEMBER 30, 1965 COMMUNICATION FROM THE PRESIDENT OE THE UNITED STATES TRANSMITTING REPORT ON THE OPERATIONS OF THE EXECUTIVE BRANCH UNDER TITLE II OF THE DUAL COMPENSATION ACT COMMITTEE ON POST OFFICE AND CIVIL SERVICE HOUSE OF REPRESENTATIVES iQ VTi2fi: YHAH8IJ 2I0PI1TJI ^ UM ***® 1 * 1 M>R it ' 966 Printed for the use of the Committee on Post Office and Civil Service 59-333 U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 1966 COMMITTEE ON POST OFFICE AND CIVIL SERVICE TOM MURRAY, Tennessee, Chairman ROBERT J. CORBETT, Pennsylvania H. R. GROSS, Iowa GLENN CUNNINGHAM, Nebraska EDWARD J. DERWINSK1, Illinois ROBERT F. ELLSWORTH, Kansas ALBERT W. JOHNSON, Pennsylvania JOHN H. BUCHANAN, Jr., Alabama JAMES T. BROYHILL, North Carolina JAMES H. MORRISON, Louisiana TIIADDEUS J. DULSKI, New York DAVID N. HENDERSON, North Carolina ARNOLD OLSEN, Montana MORRIS K. UDALL, Arizona DOMINICK V. DANIELS, New Jersey L1NDLEY BECKWORTH, Texas ROBERT N. C. NIX, Pennsylvania JOE R. POOL, Texas WILLIAM J. GREEN, Pennsylvania SPARK M. MATSUNAGA, Hawaii PAUL J. KREBS, New Jersey RAYMOND F. CLEVENGER, Michigan JAMES M. HANLEY, New York JOHN V. TUNNEY, California CHARLES H. WILSON, California Charles E. Johnson, Staff Director B. Benton Bray, Associate Staff Director John H. Martiny, Counsel 1 uy .... .. William A. Irvine, Assistant Staff Director JH • *if Yff/iypi [ -y Theodore J. Kazy, Senior Staff Assistant ^r . •‘W L / }/? fil UNIVERSITY OF ILLINOIS LIBRARY M URBANA-CHAMPAIGN LETTER OF TRANSMITTAL The White House, February 21, 1966. To the Congress oj the United States: As provided by section 205 of title II of the Dual Compensation Act (Public Law 88-448, approved August 19, 1964), I am transmitting a comprehensive report of the operations under that title of the depart¬ ments and agencies in the executive branch. Lyndon B. Johnson. hi Digitized by the Internet Archive in 2019 with funding from University of Illinois Urbana-Champaign Alternates https://archive.org/details/dualcompensationOOunit CONTENTS Page I. Introduction_ 1 II. Summary_ 1 III. Implementation_ 3 A. Information to agencies. B. Reports on hires of retired members of the uniformed services. C. Exceptions from reduction-in-retirement-pay provisions. D. Elections under section 201(f). E. Military service as a basis for veteran preference and as credit for annual leave purposes. F. Employment of retired military personnel in the Department of Defense. IV. Operations of the executive branch under title II_ 4 A. Section 201. B. Sections 202 and 203. C. Section 204. V. Statistics on appointments of retired personnel in the executive branch_ 12 VI. Appraisal_ 21 VII. Attachments_ 22 v - - . -- .’I ■ . '' - ■ ' ■ . ;o. "v, irv *1 > 'fi'jqc t ri) >.*ii - - . . ...» _ - . . . i :iO IA . •<. U / . i ! • REPORT ON THE OPERATIONS OF THE EXECUTIVE BRANCH UNDER TITLE II OF THE DUAL COMPENSATION ACT I. Introduction This report is submitted in accordance with section 205 of the Dual Compensation Act, Public Law 88-448, which provides that the President shall transmit to the Congress on or before January 1, 1966, a comprehensive report of the operations under title II of the act of the departments and agencies in the executive branch. The report covers operations under title II during the period from December 1, 1964, the effective date of the act, through September 30, 1965. All actions and operations mentioned in the report occurred within this period unless otherwise specified. The Dual Compensation Act simplified and consolidated many old and complex laws on employment of retired military personnel, made it possible to employ retired regular officers without unreasonable sacrifice, reduced unfair advantage in employment, leave, and re¬ tention that some employed retirees enjoyed, and otherwise introduced more rationality into this area of Federal personnel policy. II. Summary Most Federal agencies report that title II of the Dual Compensation Act has had little immediate effect on their operations. But there have been some agencies and some instances where the act has had significant impact already. The National Aeronautics and Space Administration and the Atomic Energy Commission, for example, report that the act has made it possible for them to recruit a number of retired Regular officers whose skills are of substantial value to the Government but who would not have been available to them under prior laws. During the 10-month period covered by this report, there were 7,458 appointments of retired members of the uniformed services to positions in the executive branch. Of this total, 5,827 were retired enlisted men, and 1,631 were retired officers, warrant and commissioned. A total of 547 of the officers were identified as Regular officers. For the most part, the only retired Regular officers who would have been eligible for Federal employment under laws in effect prior to the Dual Compensation Act were those retired because of disability. The majority of the retired servicemen hired during the period covered were employed in “blue collar” occupations, many of them in occupations where their specialized military training was particularly valuable. For example, 178 retirees were employed in the field of electronic equipment installation and maintenance; 41 were employed as instrument maintenance workers; and 105 were hired as ammunition and armament workers. 1 2 DUAL COMPENSATION REPORT Of the other retirees hired, a substantial number were employed in professional or other hard-to-fill positions. There were, for example, 27 doctors employed, 14 nurses, 91 engineers, 13 attorneys, 25 physical scientists, and 44 professional accountants. A number of actions to implement section 201 of the act, which governs reductions in the retirement pay of retired Regular officers employed by Federal agencies, were required even before the act went into effect. This was necessary to assure that the required reductions could be made on the effective date of the act and to implement section 201(f), which permitted retired Regular officers already on agency rolls to elect either to remain subject to previous dual compensation laws or to come under the provisions of section 201. The required actions were completed on schedule. To enable the uniformed services to meet their continuing responsibility for implementation of the reduction-in-retirement-pay provisions, pro¬ cedures were set up which require Federal agencies to report each appointment of a retired Regular officer to the appropriate uniformed service. The authorization in section 201(e) to approve exceptions to the reduction-in-retirement-pay provisions has been sparingly used. Ten exceptions have been approved thus far. No significant problems have arisen in implementing or administering the provisions of section 201. The provisions of the act (secs. 202 and 203) which reduce somewhat the reduction-in-force and annual-leave-earnings benefits of most retired servicemen employed by the Government since December 1, 1964, appear to be operating satisfactorily. A number of agencies report that the morale of other employees has improved as a result of the new policy. Understandably, there has been some resentment on the part of retirees adversely affected, but there is no evidence that anyone has declined Federal employment because of these provisions. With certain exceptions specified in the law, section 204 of the act permits employment of retired military personnel in positions in the competitive service in the Department of Defense within 180 days of their retirement only when the appointment is authorized by the Secretary concerned and the Civil Service Commission gives its approval. During the period covered by this report, 207 cases were forwarded to the Commission for approval. The Commission ap¬ proved 180 of these. Of the appointments approved, 143 involved retired enlisted men, most of them appointed from civil service ex¬ aminations to blue-collar jobs or to Classification Act positions in grade GS-9 and below. The military departments themselves may authorize appointment of retired military personnel to positions not in the competitive service during the first 180 days after their retirement. From Decem¬ ber 1, 1964, through September 30, 1965, the military departments authorized 270 such appointments, 224 of them to positions in non- appropriated fund activities. In summary, it may be said that all provisions of title II of the act have been fully implemented in a timely manner and without sub¬ stantial operating difficulties. The experience thus far of the execu¬ tive branch under title II suggests that the act is adequately fulfilling the purposes for which it was enacted. No changes in the law are being recommended now in the light of this limited experience. DUAL COMPENSATION REPORT 3 III. Implementation Regulations^ instructions, and informational issuances have been developed to implement all provisions of title II of the Dual Compen¬ sation Act as follows: A. Information to agencies Shortly after the enactment of the Dual Compensation Act on August 19, 1964, the Civil Service Commission prepared and distrib¬ uted to all departments and agencies an informational issuance on the act. It discussed briefly the scope of the act and summarized each of its provisions for the guidance of agency officials. (See Bulletin No. 550-9, dated Sept. 10, 1964, pt. VII, below.) B. Reports on hires of retired members of the uniformed services Under the act, the responsibility for carrying out the reduction-in- retirement-pay provisions of section 201 lies with the uniformed services. In order to help them carry out this responsibility most effectively, the Civil Service Commission worked with the services to develop special reporting procedures for retirees employed by the Government. C. Exceptions from reduction-in-retirement-pay provisions In accordance with section 201(e), the Civil Service Commission prescribed regulations under which agencies may request exceptions from the reduction-in-retirement-pay provisions of the act. The Commission may approve an exception if an agency can demonstrate that an exception is warranted on the basis of special or emergency needs which otherwise cannot be readily met. Agencies were informed of the regulations by FPM Letter No. 550-12, a copy of which is in part VII. D. Elections under section 201 ( f ) Well before the effective date of the act, the uniformed services had set up systems to carry out the “elections” provision of section 201(f). This provision permitted retired Regular commissioned or warrant officers already employed in a Federal agency on the day preceding the effective date of the act to elect to be covered by the reduction-in- retirement-pay provisions of the new law or to remain subject to previous dual-compensation statutes. On November 18, 1964, Bulletin No. 550-10 was distributed to all departments and agencies, outlining the procedures established by the uniformed services to give effect to section 201(f). Although Federal agencies, generally, were not required to take any action under this section, they received a large number of inquiries from their employees concerning the elections provisions. The issuance made it easier for them to respond correctly. A copy of Bulletin 550-10 is in part VII. E. Military service as a basis for veteran preference and as credit for annual leave purposes To help agencies give effect to sections 202 and 203, which place certain restrictions on the crediting of retirees’ military service for reduction-in-force and leave-accrual-rate purposes, the Civil Service Commission included detailed information on the provisions in the Federal Personnel Manual. The Commission also worked out arrangements with the uniformed services to assure that required 59-333—66-2 4 DUAL COMPENSATION REPORT information on the military service of apppointees is furnished to employing agencies as promptly as possible. F. Employment of retired military personnel in the Department of Defense To implement section 204 of the act, the Civil Service Commission and the Department of Defense set up procedures for acting on requests for approval to appoint retired military personnel during the first 180 days after their retirement. The Commission also developed policies and procedures to assure that military retirees would not be deprived of consideration for positions in the competitive service in the Department of Defense when their employment would not be contrary to the purposes of section 204. IV. Operations of the Executive Branch Under Title II A. Section 201 This section provides, with certain exceptions, that a retired warrant or commissioned officer shall receive the full salary of any civilian office he holds, but that during a period for which he receives salary, his retirement pay shall be reduced to an annual rate equal to the first $2,000 of such pay plus one-half of the remainder, if any. The reduction in retirement pay does not apply to retired enlisted men, non-Regular officers, or Regular officers whose retirement was based on disability (1) resulting from injury or disease received in line of duty as a direct result of armed conflict or (2) caused by an instrumentality of war and incurred in line of duty during a period of war. Further, the reduction does not apply to the first 30 days, in any fiscal year, of temporary, part-time, or intermittent employment. Subsection (e) authorizes the National Aeronautics and Space Administration to grant exceptions to the reduction-in-retirement-pay provisions for up to 30 of its employees at any one time. It also authorizes the Civil Service Commission to issue regulations under which additional exceptions can be granted. Subsection (f) provides that any person otherwise subject to the reduction-in-retirement-pay provisions of the act who was employed in a civilian office on November 30, 1964, could elect to be covered by these provisions or to remain subject to the provisions of prior laws governing dual compensation. Subsections (g) and (h) provided relief for certain retired warrant officers and Reserve officers who had been adversely affected by Comptroller General decisions arising from previous laws. The uniformed services report that 756 retired Regular officers—- including officers who were employed when the act took effect and who elected to be subject to section 201 as well as officers appointed since December 1, 1964—have had their retirement pay reduced under section 201. The following summary shows how many of the 756 retired from each service: Army_ 159 Navv_349 Marine Corps_ 80 Air Force_ 133 Coast Guard_ 16 Public Health Service_ 17 Coast and Geodetic Survey_ 2 DUAL COMPENSATION REPORT 5 Retired Regular officers apparently have been well informed con¬ cerning the reduction-in-retirement-pay provisions of the act. It is impossible to know the number who have not applied for Federal employment because of the provisions. It is known, however, that a substantial number have accepted employment, and only a very small number have cited these provisions as the basis for declining Federal employment. Few exceptions to the reduction-in-retirement-pay provisions per¬ mitted by section 201 (e) of the act have been approved in the executive branch. The Civil Service Commission has approved only two exceptions thus far. One of these was for Adm. W. F. Raborn, Director of the Central Intelligence Agency; the other was for Gen. Maxwell Taylor, special consultant to the President. The Administrator of the National Aeronautics and Space Adminis¬ tration has exercised his authority to grant exceptions from the reduction-in-retirement-pay provisions on eight occasions. Details on these exceptions are shown in table I. Table I .—Exceptions from reduction-in-retired-pay provisions of Dual Compen¬ sation Act made by the Administrator of NASA under authority of sec. 201(e) NASA employment Ap- proxi- Military rank Branch Title Grade Salary mate retire¬ ment pay Date excepted Civilian OED date General 1 _ USAF Assistant Administra¬ tor, Management Development. Excepted. $24, 500 $16,000 Dec. 1,1964 Sept. 1,1964 Lieutenant general. USAF Deputy Associate Administrator, Manned Space Flight. _do. 23, 000 15,000 _do_ Dec. 1,1964 Admiral_ USN Deputy Associate Administrator, Defense Affairs. _do. 24, 500 16, 000 _do_ Dec. 1,1962 Vice admiral. USN Director, Policy Planning Division. _do_ 23, 000 14,000 _do_ Apr. 1,1964 Commander. USN Chief, Guidance and Control Division, Manned Spacecraft Center. _do. 22, 000 5, 250 Feb. 18,1965 July 1,1965 Do_ USN Deputy Director, Electronics Re¬ search Center. _do. 24, 500 5, 250 Apr. 26,1965 June 1,1965 Brigadier general. USAF Assistant to Associate Administrator, Manned Space Flight. _do_ 22, 000 10, 750 June 15,1965 July 12,1965 Captain_ USN Chief, Operations Planning, Manned Space Flight. _do. 20, 000 7, 500 July 7,1965 Aug. 2,1965 i Left NASA July 1,1965, for new appointment as Administrator, Federal Aviation Agency. Section 201(f) had the effect of preserving any benefits accorded by previous laws which were enjoyed by retired officers already employed in the Federal civil service when the Dual Compensation Act went into effect. Each officer so employed was permitted to make one of three elections within 90 days after the effective date of the act: Election A .—To remain subject to and continue under any limi¬ tations on compensation imposed by previous laws; Election B .—To remain subject to and continue under any exemptions from limitations on compensation imposed by pre¬ vious laws; or 6 DUAL COMPENSATION REPORT Election C .—To be subject to the reduction-in-retirement-pay provisions of the Dual Compensation Act. In accordance with the act, retired servicemen to whom section 201(f) was applicable but who did not indicate their election were pre¬ sumed to have elected to retain their previous status. The elections of retirees who indicated their preference were as follows: Service from which retired Election A Election B Election C Army_ _ 35 30 72 Navy _ _ - __ 53 211 113 Air Force.. __ _ . ___ 8 67 64 Coast Guard . .. . . . . ... 1 18 9 Marine Corps. _. _ __ . __ . .. ... 26 126 30 Public Health Service_ _ ..... 17 0 17 B. Sections 202 and 203 Section 202 provides, in effect, that a retired member of the uni¬ formed services is not to be considered a veteran for reduction-in-force purposes unless he was— (a) Retired for disability incurred in line of duty as a result of armed conflict, or ( b ) Retired for disability caused by an instrumentality of war and incurred in line of duty during a period of war, or (c) Retired with less than 20 years of active service, or (d) Employed in a civilian office on November 30, 1964, and continuously thereafter without a break in service of more than 30 days. Further, the section provides that in computing length of military service for the purpose of retention standing in reduction in force unless one or more of the conditions stated in (a), ( b ), (c), and (cl), above, are met, a retired member may receive credit only for military service performed during a war or in a campaign or expedition for which a campaign badge has been issued. Similarly, section 203 provides that in determining the annual-leave- accrual rate of a retired member of the uniformed services, the only military service counted is that performed during a war or in a campaign or expedition for which a campaign badge has been issued, unless the retired member was— (a) Retired for disability incurred in line of duty as a result of armed conflict, or (b) Retired for disability caused by an instrumentality of war and incurred in line of duty during a period of war, or (c) Employed in a civilian office on November 30, 1964, and continuously thereafter without a break in service of more than 30 days. There has been little reaction reported from agencies, retired per¬ sonnel, and other interested groups since these provisions went into effect. Some agencies report evidence of resentment from employees who are adversely affected by the provisions but at the same time they see an improvement in morale among other employees. There is no indication that the provisions have affected the willingness of retired personnel to accept Federal employment. DUAL COMPENSATION REPORT 7 C. Section 204 Section 204 places certain restrictions on the employment of retired military personnel in the Department of Defense. Specifically, the section permits such employment within 180 days immediately follow¬ ing a member's retirement only if— (1) the proposed appointment is authorized by the Secretary concerned (or his designee for the purpose), and, if such civilian office is in the com¬ petitive civil service, after approval by the United States Civil Seevice Commission; or (2) the minimum rates of basic compensation for such civilian office have been increased under authority of section 504 of the Federal Salary Reform Act of 1962 (5 U.S.C. 1173); or (3) a state of national emergency exists. The section further provides that a request by an appropriate official for the authorization, or the authorization and approval, for an exception based on the first condition listed above shall be accom¬ panied by a statement which shows the action taken to assure that—* (1) Full consideration, in accordance with placement and pro¬ motion procedures of the department concerned, was given to eligible career employees; and (2) When selection is by other than certification from an established register, the vacancy has been publicized to give all interested candidates an opportunity to apply; and (3) Qualification requirements for the position have not been written in a manner designed to give advantage to such retired member; and (4) The position has not been held open pending the retire¬ ment of such retired member. Section 204 is designed to prevent employment of retired military personnel under conditions which might lend credence to charges that they are given preferential treatment for employment in Defense installations. Prior to the enactment of the Dual Compensation Act, there were frequent charges to this effect, particularly from employee organizations. In carrying out its responsibility under this section, the Civil Service Commission established policies and procedures to assure that in the employment of retired military personnel there is compliance both in spirit and in practice with the merit system principle of open competition. It requires sufficient documentation in each case to permit it to reach a conclusion on this point. During the period from December 1, 1964, through September 30, 1965, the Civil Service Commission acted on 207 cases under section 204. The Commission approved 180 of the proposed appointments and disapproved 27. Table II gives pertinent details. 8 DUAL COMPENSATION REPORT Table II .—Actions by the Civil Service Commission on requests for approval of appointment in the Department of Defense under sec. 204 Approved Disapproved Requesting agency: Army____ 36 4 Navy___ _ 110 10 Air Force _. - _ 27 9 Marine Corps .. ... ______ 1 0 Office of Secretary of Defense_ 6 4 Officers and enlisted personnel: Officers__ i 37 i 17 Regular. __ _ ___ (18) (15) 143 (6) (7) 10 Non-Regular___ Enlisted personnel_ Appointment basis: Civil service register_ _____ 135 18 Temporary pending establishment of register__ 15 0 Reinstatement_ ___ 4 1 Overseas limited_ __ 4 ■ 2 Term. . _ __ 1 0 Temporary limited . ._ _ 19 2 Civil service rule III_ 1 3 Public Law 80-313__ _ 1 1 Pay basis: Classification Act____ 92 23 GS-1 to GS-5_ (23) (32) (17) (18) (2) 88 (1) (7) (2) (9) (4) 4 GS-6 to GS-10_ GS-11 to GS-12_ GS-13 to GS-15_ GS-16 to GS-18_ Wage board.. _ _ __ ... ... .. _ Installation: Proposed appointment at same installation at which retired. 60 16 Proposed aVpointment at installation different from that from which retired__ . __ _ _ _ __ __ 120 11 Location: Washington, D.C., metropolitan area_ _ 36 11 United States (other) __ _ _ _ 138 13 Overseas _ .. _ . _ 6 3 Total____!_ 180 27 i 8 officers were not identified as Regular or non-Regular. 4 were approved and 4 were disapproved. Source: Civil Service Commission. The Department of Defense reports that eight additional requests submitted to the Secretaries of the military departments under section 204 and involving competitive positions were disapproved without submission to the Civil Service Commission. Under section 204, the only cases that must be approved by the Civil Service Commission are those involving appointments to positions in the competitive service. Appointments to other positions can be authorized by the Secretary concerned or his designee. Among the positions not requiring Commission approval are those of experts and consultants appointed under 5 U.S.C. 55a or some other special statute; positions in schedules A, B, and C; and positions in the nonappropriated fund activities under the jurisdiction of the military departments. In connection with positions not in the competitive service (but excluding nonappropriated fund activities), the military departments processed 48 requests under section 204 during the period from December 1, 1964, through September 30, 1965. Of this number, 46 were approved and 2 were disapproved. Table III shows details on each request. 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Pi r-o 8 Si © 00 V. a "53 -to © 5- CO •M © 8 • 1 1 1 1 1 1 1 1 1 1 ) 1 1 1 1 l 1 1 1 1 > 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 o3 1 1 1 1 1 1 1 1 1 1 1 1 >5 rj 1 1 1 1 05 rH 1 1 1 1 1 O H I 1 1 <1 1 1 1 1 1 1 o'tdog i io r> h 5 O CM ^ hp o o o *, £ o 10 0*0 K ' ' (M O N A 03 Q m W H P< O H Pi S H W O <1 £ r* H Pi t> O W Q £ ◄ P fc £ Pi w Pi OOT(l®tDt-NT)t0)HQ000lNO001l00>1l)0i tOOCffllOiMOaNO HHN o o o © o o < < 00 CM i ;ooc > o o < > o © < CM CO CO CO o CM O CO © CO CO r- s o © CO 05 © 00 05 T3 H0JC0^©CDN00 03OH(MC0^iO H H H H rH H H H rH CM CM CM CM CM CM -rH ooooooooooooooo^o HP HP -+-5 HP HP HP HP HP HP HP HP HP HP HP HP H > o ) o ;S8S8888j ^ 3 h cm' co*^©*©"p-TcxToT CM H rH rH rH r —1 rH rH rH rH rH rH rH rH rH rH €/9- O O O O © O O O O O © O O O O t S . °°o°oq°°°.55S5S §3 £ OH(MC0^©©N00 05OHCMC0^ > "~C rH rH rH rH rH rH rH rH rH rH CM CM CM CM CM . O <&■ v~ m- ee- co c3 HP o Table VI .—Appointments of retired personnel: Employing agency and age, Dec. 1, 1964, through Sept. SO, 1965 DUAL COMPENSATION REPORT 15 C3 O HNNH<^OCCOOHOHNOOO!«'®OiN'1IO(NOI'10iOh 2§ u 1 1 1 1 © CMCOCMCOCM^^COCOCOCOCMfHrHCOCMCM 'CO 'rH i i 1 1 -H i i it 1 Tt< 03 i i ii 1 H> m i i it i i ii 1 1 H M«®^®OOOOaNNMHn»COHHNHHIMiO 1 1 1 O rH rH 1 o £•£ 1 rH t-H g -H 1 1 <© H^iOiOOHHOiiONiOOOOSiNHCKNMCOCOMWH 1 1 h d rH H 1 o bJQ-^ 1 O 1 1 III 1 OCl»0C005NNTtC0HC: ICO 1 1 IH i 1 1 to 1o ° H rH H rH rH rH 1 III 1 1 Tt< se 1 III 1 1 rH 1 III 1 1 III 1 1 III 1 1 1 1 £ ^■^HO^NOs^ajcoiooiiON'Xxxiccioo • i ^ t» 1 1 CO H rH rH rH rH rH rH rH 1 1 1 a> H 1 1 1 rH w 1 1 1 1 1 1 1 1 1 1 NOHO^iOOiONW^GOCOOOCOCOCOHiMHTf^N 1 1 CO C3 >» 0 > H HHHHH^rHHHH 1 1 05 rH h 3 Eh 3 1 1 -H ^ 1 1 1 1 rH °0 1 1 1 1 1 1 © 0>HC001C005HNC0C0(NNC000^OO(N00HO05N 1 1 CO is 2 ^^00H(MONH?0NiCH05NiO^i0(NC0> OOONHiOOSHCOCO^OO^^NOOOTfKM^OJCOiOCO rH ■HOcDCiCON^(M^005NCDiOCOTfC^(M(NH CM to cs rH rH rH rH rH rH rH rH rH rH 05 fc rH >> COOiOiGOCOiOiOOSdHC^OOCOOHCOOCOCONOJH^ 1 1 rH WCOIONGOOCOOOOOJNION^COWCIWCOHHC^ 1 s rH rH rH rH rH 1 CO t-H 1 •« *< 1 1 rH CO o cm nd <£> O P, a c3 r* <0 H £ © be £ O O r rt hC H w C3^ c3 H> o Eh r Xj . .... . _ _ ____ WCO^'^Tfr^'^^’^Tf^’^»OiO‘C»OiO‘OiOiOiOiOCO Table VII .—Appointments of retired personnel: Employing agency and rank when retired, Dec. 1, 1964, through Sept. 30, 1965 16 DUAL COMPENSATION REPORT 00 05 40 CD t- o ^ CO oo oo co 03 05 05 rH • 40 rH 03 t i 2 7 53 03 CO 3 r—* CO 03 rH 03 co o O GO 40 rH 1 rH T*H 40 03 »H rH rH rH CO rH CO 1 4 1 rH CO o 40** 1 1 1 1 1 1 CO vi E-i 1 1 4 1 1 1 l 1 1 Sh CO 03 ^ 40 rH 03 CO CO CO rH 00 rH CO 1 03 i 1 1 rH 1 rH 1 1 rH 1 rH rH 03 rH co rH 03 rH rH i t I 4 1 1 • 03 i 05 CO co i 1 1 i o I i 4 1 1 1 1 4 t i i i CO ^ 03 rH 1 1 1 1 1 1 1 1 i i co rH 40 ^ 00 1 1 1 *1 *4 1 1 1 1 1 1 l I 4 1 II I rH Tf 05 CO ■< 40 rH 1 1 1 1 i 1 1 1 1 1 1 1 l 1 CO CO o GO rH 1 1 1 1 i 1 1 1 1 1 1 1 1 1 rH 03 C5 1 1 1 1 1 1 1 1 1 1 1 1 i i i 1 1 1 4 1 1 1 1 1 1 4 4 1 1 1 1 1 1 1 1 1 ^ 40 T*4 03 H 1 1 1 1 1 1 1 1 1 1 rH 05 4 23 40 05 1 rH 1 1 1 1 1 .4 1 1 1 rH I 1 1 1 1 1 1 1 1 1 1 11 1 rH 1 1 1 00 00 IO Tf CO o ◄ 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 rH 1 1 1 1 1 1 1 1 1 1 1 1 1 1 l 1 1 1 1 1 1 l 1 l 1 1 1 1 1 1 1 1 1 1 1 1 4 1 1 05 rH i CO 1 1 1 1 1 1 1 1 1 1 rH 1 rH 40 03 03 CO 03 1 1 1 1 1 rH 1 1 1 1 1 II II II II co o CO m rH 1 1 1 1 1 1 rH y—i 1 • 1 l 1 II II 03 CO < 1 1 1 1 1 1 1 » 1 1 1 II II Z 1 1 1 1 1 1 1 1 4 1 1 1 1 1 1 1 4 -I 1 t 1 l II II II II o CO 03 1 1 1 1 1 1 03 03 40 CO ^ rH 03 1 CO ' 1 1 1 1 1 f l 1 I 1 4 II 1 H 03 CO 00 ◄ co 1 1 1 1 1 1 1 1 1 1 1 1 40 03 co 1 1 1 1 1 1 1 1 1 1 1 1 CO co > 1 1 1 1 1 1 1 1 1 1 1 1 1 1 4 1 1 1 1 1 1 1 1 1 1 1 1 4 1 l 1 1 1 1 1 t 4 1 1 1 1 1 1 1 1 1 t''* 1 ^ rH 1 1 1 1 1 1 1 1 rH rH rH 40 CO CO 40 03 1 1 1 1 1 rH 1 1 1 1 1 II II II J 1 40 03 4-3 rH 1 1 1 1 1 1 1 1 1 1 II II CO rH S3 1 1 1 1 1 1 1 1 1 1 II II 4-3 CO 1 J 1 1 1 1 1 1 1 1 1 1 4- 1 1 4 1 1 1 4 II II II II Ih CO ID rH 03 ( J 1 1 « 1 1 1 rH 03 CO Tf 40 i . i i 1 1 1 1 1 1 1 1 1 1 1 1 II I rH CO rH 1 o 1 1 1 1 i i 1 1 1 1 1 1 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Table X .—Appointments of retired personnel: Employing agency and selected occupations, Dec. 1, 1964, through Sept. 30, 1965 20 DUAL COMPENSATION REPORT c3 O Eh ^rHC0^O©Tt<00COCOC000O5G0O5CMC0C©T-HCOC000T-HCOe0O5 0500'• GO H o CO M ^H r* r>« cm 05 c cm 00 CM Other agencies i i 1 CM 05 1 CM 40 i i I I i i i i l i i i • T-H cm 1 1 1 1 1 1 1 II 1 i t-h i i t-h i CO CM CO 1 1 I 00 1 1 II 1 1 II 1 1 II 1 1 If 1 1 II 1 1 1 T-T 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 CO 1 1 1 i W N i CM i i i i i i i it li i 1 l 05 1 1 t-H | t-h Tit' t-h 1 II III 1 1 1 1 i i i CM < i i i 11 lilt i i i 00 i » i i i i CM i T-H 02 1 II III 1 i i i O i i i I i i I i i i i i t i i i i i II 1 1 1 l II till II till 1 II III 1 1 II III 1 1 II III 1 i i i i i i i i i i r i 1 1 N H rH 1 i i 1 1 t-H 1 1 1 1 • 1 1 1 1 1 1 140 1 t-H cm 1 II 1 1 1 1 r-H 1 1 CM 1 T-H 1 t-h 1 i i • mf CM T-H ■*C 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 II 1 1 1 i i Pm 1 1 1 1 1 1 1 ( ( 1 1 1 1 1 1 1 1 1 1 1 1 1 I 1 1 1 1 1 1 1 1 1 1 1 1 1 - 1 II 1 1 1 1 II 1 1 1 1 II 1 1 1 i i i i i i <1 II III 1 i N 1 1 I 1 1 1 1 t-H 1 III iHGON i i 1 1 1 l t-h 1 1 II III 1 CO 1 1 1 1 1 CO CM iiii iiii T-H ZD 1 1 i ill 1 1 1 II III iiii < II III 1 1 l til 1 1 1 II III iiii % II III II III 1 1 4 1 i ill i ill 1 1 1 1 1 II III 1 It III iiii IIII 1 1 l H t-h o i 1 00 CO CO 1 1 1 I r-H 1 1 t-H CO 1 t-H 1 1 1 1 til 1 1 i 1 1 T-h o 1 CCNh 1 1 1 1 i iCO ■ < CO 1 1 1 1 05 i 1 1 1 1 1 1 1 1 1 1 1 1 1 40 1 1 III 1 1 i i i > 1 1 1 1 1 1 1 1 1 1 < 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 III 1 1 III 1 1 III 1 1 III 1 1 i i i i i i i i i i i i 1 III 1 III I i i t 1 1 1 1 4 1 1 1 IIII 1 II IIII 1 II i i i i i i © II 11 1 1 CO t-h 1 1 i i i i 1 1 1 1 1 IHCOHN CM i t-h IIII IIII III iiii O iiii cO i i i 1 1 'C 3 1 1 1—1 II i i III t-H 1 1 1 1 l rH I 1 1 1 T-H 1 1 1 1 bjo+f I 1 1 U 5 HOJ 1 1 Tf CS CO 1 OhhCMCOhNC^HH IIII 1 1 1 1 1 1 1 l iCO 1 1 1 I 1 IIII IIII 1 1 > rH 1 I t-H i—H 1 40 IIII 1 1 1 1 1 IIII 1 H 1 1 IIII 1 f 1 1 1 IIII 1 1 1 1 1 IIII IIII 1 1 W 1 1 1 1 i 1 till 1 1 1 1 1 IIII 1 1 1 1 1 IIII 1 1 1 1 1 IIII IIII 1 ♦ 1 1 1 1 1 i 1 1 1 CO ^ CO 1 1 4 1 i CO i ?-H O 1 1 Tt< 05 r-H t-H 1 II III 1 iCO i i O i i i Tf i 1 1 1 1 1 rH 1 rH S >, i H i 1 1 1 t-H 1 1 r-H 1 1 1 T-H 1 1 1 1 1 1 1 © Ui -- y 3 E-t I i i i 1 1 1 1 1 1 1 1 1 1 f It III 1 1 II III 1 : i ! © i i i 1 1 1 4 1 1 II I 1 i i i (-M W O 10 ICO 1 1 CM 05 T-H 1 t-h 1 T-H 40 CM 1 t-H 1 1 CO 1 T"H 1 T-h t-h 1 ICO 1 CO 2 d t-H 1 CO 1 1 1 1 1 1 1 1 1 l T-H 1 1 1 1 t-h 1 ft , 0 ) 1 1 1 1 1 1 II 1 1 t i i HH> ^T* l 1 1 1 1 1 1 1 °Q 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 II 1 4 1 II 1 1 1 II 1 1 i i i i i i i i i © 40 05 05 *0 00 CM CO CM 1 rJlOOTf W^OSHON® CO ^ ^O 40 CO CM © H h- ^ i ^ 00 00 ft 8 HCOrJ^ r—t t-h CM CM t>- 05 rH T-H H CO CM T-H ' 05 o t-h > l O Ci 05 © »C 1 1 1 1 lO 1 i i 1 iO **tl r-H TH 00 4 CO 40 00 conconohonoo^ 1 1 rH 00 CO CO 1 1 CO CM 05 CM CO CM 40 CM CO CO • CO 05 rH 40 P* i cS 1 £ 1 l I 1 1 1 1 1 1 1 1 1 1 1 1 l 1 l ■^OCiNOOOiJiiOHlOHCOOCOM'H-rtuoOJN N©MC 0 C 0 ©©O 00 ^ 1 1 O CO rH 05 t-h t-h t-h CM r-H rH CM CM CM CM CM t"- T— t-H rH CM 1 CM 05 00 a CM t-h 1 u. 1 < 1 1 a o •M 03 ft s 8 o &H ^ CO © T 3 CO m *. <2 2 £ £ 2 O ft £> = ft-i=>«H 3 «p*j — ftOftlZIO^Oft Mr ,-r- CO C 3 .3 w d CO E>> CP ft® OT 3 ° gftft 1:3 2 t - 1 „ „ . (h o o.—i a? 03 ■+- 1 £ £ sf 2 § 2d o’ca'C ® -9 -9 .2 O ,Q -tJ O d bJO bX) £ 03 s®O®nClM- ti fl c ®'C® ft +-> ft i“2o bfi ft d rt O’d'O ft H o d s aft a oft © ft * ® ® 0 } t-i •■-« >-g d O.Q 03 03 .2 O d DUAL COMPENSATION REPORT 21 VI. Appraisal One of the purposes of the Dual Compensation Act was to simplify and consolidate the laws governing the employment by Federal agencies of retired members of the uniformed services. It replaced a large number of dual compensation and dual employment laws that created complex problems of administration and gave rise to many unfortunate errors. Experience thus far indicates that the Dual Compensation Act is considerably easier to administer properly than the statutes it replaced. The act has made a significant con¬ tribution on this basis alone. Another purpose of the Dual Compensation Act was to make it possible for the Government to employ Regular officers retired for length of service, thus making available a major source of valuable skills and experience generally unavailable under the restrictions in prior law. This purpose has been adequately fulfilled. During the first 10 months after the act became effective, about 550 Regular officers were hired, many of them in hard-to-fill positions. Most of these officers would not have been available to the Government under prior law. A third purpose of the Dual Compensation Act was to establish a more equitable arrangement for retention of retirement pay by Regular officers taking Federal employment. Under the former $10,000 limitation, many retired Regular officers had to give up all or most of their retirement pay upon accepting Federal employment. The new formula for retention of retirement pay permits retention of more than half of the pay in all cases and has undoubtedly improved the position of the Federal Government in competing for the services of retired Regular officers. Additionally, the Dual Compensation Act has reduced considerably the very substantial advantage over other Federal employees that retired military personnel formerly enjoyed in reductions in force, thanks to veteran preference and the fact that their many years of military service were creditable for tenure purposes. Now most retired personnel who begin a second career in the civil service do not have these special advantages in reductions in force. They are not considered veterans for this purpose, and they are given credit for only that part of their military service which was performed during a war or in a campaign or expedition. This change has given greater protection to career employees, veterans and nonveterans alike. Under previous statutes, retired personnel employed in civil service positions were given credit for all their active military service for the purpose of establishing the rate at which annual leave is earned. Since most retired personnel have more than 15 years of such service, they were eligible for immediate placement in the top group for annual-leave-earning purposes (26 days of annual leave a year). Under the Dual Compensation Act, retired servicemen who are not retired for combat disability receive credit for only that part of their military service performed during a war or in a campaign or expedition. The new arrangement is more equitable than the previous one. Section 204 of the Dual Compensation Act has provided valuable safeguards on the hiring of retired military personnel in Defense installations within 180 days of their retirement. Although there have been a considerable number of inquiries arising from this section of the 22 DUAL COMPENSATION REPORT act, there have been no serious operating difficulties, and the purpose of the section appears to have been accomplished. To summarize, the experience of the executive branch during the first 10 months of operations under title II indicates that this portion of the Dual Compensation Act is achieving effectively what it was designed to achieve. All provisions of title II have been fully imple¬ mented, and there have been only relatively few operating difficulties of the type expected in implementing a new law of this scope. VII. Attachments Attachment A: Bulletin No. 550-9, issued September 10, 1964. Discusses in detail all the provisions of the Dual Compensation Act. Attachment B: FPM Letter No. 300-5, issued November 17, 1964. Specifies reports to be submitted to the finance centers of the uniformed services. Attachment C: Bulletin No. 550-10, issued November 18, 1964. Informs Federal agencies of action taken by' the uniformed services to implement section 201(f), the elections provisions. Attachment D: FPM Letter No. 296-8, issued December 30, 1964. Specifies the reports to be submitted to the Civil Service Commis¬ sion in connection with employment of retired members of the uniformed services. Attachment E: FPM Letter No. 550-02, issued September 22, 1965. Establishes regulations under which exceptions may be granted to the reduction-in-retirement-pay provisions under section 201(e). Attachment F: Letter of September 14, 1964, from Hon. John W. Macy, Jr., Chairman, U.S. Civil Service Commission, to Hon. Norman S. Paul, Assistant Secretary of Defense (Manpower). Proposes policy for administration of section 204. Attachment G: Letter of September 21, 1964, from Mr. Paul to Chair¬ man Macy. Concurs in proposed policy on administration of section 204. Attachment A [Bulletin No. 550-9] United States Civil Service Commission BULLETIN Washington, D.C., 20415 September 10, 1964 Bulletin No. 550-9. Subject: The Dual Compensation Act. Heads of Departments and Independent Establishments: PURPOSE The Dual Compensation Act, approved by the President on August 19, 1964, is effective December 1, 1964, except for subsections 201(g) and 201(h), which are effecive immediately. This bulletin provides information about the provisions of the act for agency officials who will be concerned with operations under the law. Commission and Department of Defense regulations and instructions needed to implement the law are being developed and will be issued as far in advance of the effective date as possible. A more detailed summary of the provisions of new act is attached. DUAL COMPENSATION REPORT 23 SCOPE OF THE LEGISLATION The Dual Compensation Act embodies to a major extent a legislative proposal submitted to the Congress by the Commission on June 25, 1963. Its provisions are the result of more than 10 years of study and discussion within the executive and legislative branches. The purposes of the law are to aid the Government in obtaining well qualified people for civilian positions through elimination of prohibitions on the hiring of certain retired military officers; to provide reasonably uniform and fair treatment for retired military personnel with respect to their employment in civilian posi¬ tions; to provide appropriate safeguards so that the civilian employment of retired military personnel will not grant such personnel unfair advantage over civilian employees or unduly hamper career opportunities for civilian employees; and to consolidate and simplify the present numerous and complex statutes on dual compensation and dual employment. Title II of the Dual Compensation Act establishes the Government’s policy governing the civilian employment of retired members of the uniformed services. Bulletin expires January 1, 1965 Section 201 places a limitation on the amount of military retired pay certain retired Regular officers may receive while employed as civilians in the Federal or District of Columbia Governments and without reduction in their civilian pay. Section 201(f) provides that Regular retired officers employed on Novem¬ ber 30, 1964, may elect within 90 days after December 1, 1964, to come under the new provisions or to remain under the former provisions. Section 201 (g) 1 and (h) 2 provide relief to certain retired temporary officers from the adverse effects of Comptroller General decisions B-136459 1 of July 9, 1962, and B-141989 2 of April 2, 1963. (See Bulletins 550-7 of Dec. 27, 1963, and 550-8 of Apr. 24, 1964.) Section 202 amends section 12 of the Veterans’ Preference Act to curtail the advantages which retired career military personnel employed in the future would otherwise have over career civilian employees in reductions in force. Section 203 amends the Annual and Sick Leave Act of 1951 to limit the amount of active military service of retired members employed in the future which can be credited for annual leave purposes. Section 204 incorporates into law in a somewhat expanded form certain existing administrative procedures of the Department of Defense which are intended to insure that retured military personnel will not be given preferen¬ tial treatment in filling positions in the Department of Defense. Title III of the act establishes the Government’s policy with respect to the concurrent employment of civilian personnel in more than one civilian office. Title IV of the act repeals or amends numerous statutory provisions relating to dual employment and dual compensation. The three major laws repealed are: the Dual Office Holding Act of July 31, 1894, as amended (5. U.S.C. 62); the Dual Compensation Act of May 10, 1916, as amended (5 U.S.C. 58); and section 212 of the Economy Act of June 30, 1932, as amended (5 U.S.C. 59a). Warren B. Irons, Executive Director . Attachment. 1 Retired temporary commissioned officers who were the subjects of the Comptroller General’s decision of July 9, 1962 (B-136459), will be entitled to have their military retired pay adjusted because of the exem- tion provided by sec. 201(g) of the new law. The appropriate military finance office will advise retirees who have had military retired pay withheld since Oct. 1,1962, in compliance with the Comptroller General’s decision of the procedure by which such retirees may file claims for the amount of retired pay withheld. 2 Agencies will not have to take any action with respect to those retired temporary warrant officers to xvhom the Comptroller General’s decision of Apr. 2, 1963 (B-141989), applies. Sec. 201(h) of the new law will, insofar as the Dual Office Holding Act is concerned, legalize their civilian employment from the effective date of their appointments. 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C 0 o ^ g d O o ^2 ^•^-O t - *S « H 33 O .3 !h 3 Oh Hh O O O o %—< d'd d! c3 o d ffl'H w d 03 JO m JEO O S O.b d 03 O,^ 03 H* fn O ^H pd O u Oh (-H ^ • i-H 03 > o ^£2 d <1 03 bJD d d n, 03 +3 “7 d 03' *d > d o -d a hh d ~ ^ d, -d •0^“d3 oc d • o d d ” o ’> - d 2 H H> O 03 03 jh O 02 Ch G H OO G3 o (M 03 03 72 03 03 pQ 03 O 03 Q 03 > pO X3 .'O 03 ! d 73 d o •rH GO • rH > O Hh Oh «H-I 03 •PH 'o Ph 03 pd 03 — d »H d ° Oh tn dj rj Oh^ 03 M a !H d io d^Soo-^ ■g O 10 lO hH 03 • • .O dOOo^ 2 C3 to ^ LO o «hh ——03 O^JHp ® m 2 5 ° ^ -+H g d 72 d 03 • a-d d ^o « a o -h -*e d Ohs: 03 o 03 X 03 d d 03 o Oh d . »—i a co —. i s B f l • H u/ 0700 Cd C3 p- 03 > 03 o pO 03 d fc g ® 03 03 $-< d pd 03 03 'Q PQ tZJ z o M 72 M >• o « 02 03 d O tH 72 dH O O' T2 CO 0 d 03 03 w z d t— i m GC s * ^3 m O in. > 72 A ►H d 03 rH H ,G "d • • pH -t-i 03 03 5tJ w PQ 30 DUAL COMPENSATION REPORT Attachment B [FPM Letter 300-5] United States Civil Service Commission FEDERAL PERSONNEL MANUAL SYSTEM LETTER Washington, D.C. 20415 November 17, 1964 FPM Letter No. 300-5. Subject: Employment of retired officers of the uniformed services. Heads of Departments and Independent Establishments: The new Dual Compensation Act will have important effects upon the civilian employment of retired members of the uniformed service, starting December 1, 1964. The provisions of the act were outlined in Bulletin 550-9, dated Septem¬ ber 10, 1964. The purpose of this letter is to discuss the provisions of section 201 of the act, which relate to the reduction in retired pay of certain retired officers employed in civilian positions, and to specify a reporting procedure that will aid in the administration of this section. Briefi}’', section 201 provides that a retired Regular commissioned or warrant officer of the uniformed services who is hired in a civilian position will receive the full salary of that position, but will have his retired pay reduced to an annual rate of $2,000 plus one-half of any remainder. A total exemption from this reduction in retired pay is provided for Regular officers retired for combat dis¬ ability; a “first-30-day” exemption is provided for retired Regular officers em¬ ployed on a temporary, part-time, or intermittent basis. Retired Reserve officers and retired enlisted men are not subject to any reduction in retired pay under the act, whatever the basis for their retirement. For the purposes of the Dual Compensation Act, “uniformed services” means the Army, Navy, Air Force, Marine Corps, Coast Guard, Coast and Geodetic Survey, and Public Health Service. “Civilian office” (or position) means a civilian office or position (including a temporary, part-time, or intermittent position), appointive or elective, in the legislative, executive, or judicial branch of the Government of the United States (including each corporation owned or controlled by the Government and including nonappropriated fund instrumentali¬ ties under the jurisdiction of the Armed Forces) or in the municipal Government of the District of Columbia. Subsection 201(e) of the act authorizes the President of the Senate with respect to the Senate, the Speaker of the House with respect to the House of Representa¬ tives, the Architect of the Capitol with respect to his Office, and the Civil Service Commission (subject to the supervision and control of the President) with respect to all other civilian offices, as defined above, to provide exceptions to the reduction- in-retired-pay provisions of the act whenever warranted on the basis of special or emergency employment needs which otherwise cannot be readily met. Effective administration of the reduction-in-retired-pay provisions requires that the several finance centers of the uniformed services know when retired officers are hired in civilian positions. To this end, the following reporting requirements are established. They are applicable whenever a retired officer of the uniformed services is employed in any civilian position covered by the Dual Compensation Act. REPORTING TO FINANCE CENTERS What to report Beginning December 1, 1964, agencies will report promptly to the appropriate finance center each accession of a retired officer of the uniformed services to a civilian position. An accession, for this purpose, means any addition to the agency’s rolls, whatever the personnel action involved. An agency should be able to tell whether an appointee is a retired officer from his Application for Federal Employment (SF-57 or 60) and from his Appointment Affidavits (SF-61). If an appointee does not complete any of these forms, the agency will seek to determine his retired status through other appropriate means; for example, from interviews with the appointee, investigative forms, background resumes, etc. Agencies will not report the employment of retired enlisted men, but they must report the employment of all retired officers, whether or not the officers are subject to the reduction-in-retired-pay provisions (that is, whether they are Regular or DUAL COMPENSATION REPORT 31 Reserve officers and whatever the basis for their retirement.) If there is any doubt about an appointee’s status as a retired enlisted man or officer, the agency will report the appointment to the appropriate finance center with the assumption that he is a retired officer. The finance center will determine his retired status and will make all necessary determinations on the effect of the act to his situation. With regard to employees on the rolls on November 30, 1964, agencies are not required to initiate any reports to the finance centers. However, this does not preclude agencies from entering into arrangements with finance centers for report¬ ing information on employees subject to compensation limitations, or from con¬ tinuing existing arrangements of this sort. How to report A copy of the Standard Form 50 (Notification of Personnel Action) must be sent by the employing agency to the appropriate finance center whenever the agency employs a retired officer. Agencies which do not use the Standard Form 50 (or a modification of it) will send the finance centers a copy of an equivalent form used to record accessions. A list of the seven finance centers and their coverage is attached to this letter. Because employment of retired officers will constitute a very small fraction of the total employment, the Standard Form 50 will not be revised to add a special copy for submission to the finance centers. Instead, when a copy of the Stand¬ ard Form 50 must be sent to a finance center, the agency will make an extra— and legible —carbon copy for the finance center. As an alternative, the agency may send the finance center a photostat, xerox, or other permanent-type copy. In addition to the information normally required on the Standard Form 50 (or its equivalent) by the nature of the personnel action, agencies will— Under “Nature of Action,” add “RETO.” This will identify the appointee as a retired officer; Under “Remarks,” add the retired officer’s service number; When the accession is into a position excepted under section 201(e) from the reduction-in-retired-pay provisions, state this fact under “Remarks.” Suitable language would be: “Position excepted under authority of 201(e) of Public Law 88-448.” Temporary, part-time, and intermittent appointments As already indicated, the act excepts from reduction in retired pay the first 30 days for which salary is received when a retired officer is employed on a temporary, part-time, or intermittent basis. Moreover, for retired officers employed on a part-time or intermittent basis, retired pay is subject to reduction only on days for which salary is received. For the purposes of the Dual Compensation Act, temporary, part-time, and intermittent have the following meanings: “temporary” means appointments limited to 1 year or less; “part-time” means employment on less than a full-time basis under a prescheduled regular tour of duty; and “intermittent” means employment on less than a full-time basis with no prescheduled regular tour of duty. Individual requests Finance centers may find it necessary to ask agencies for information about individual employees. As an example, a finance center may ask an agency to certify to the days of the month a retired officer received salary. Information should be provided in the form requested. Nicholas J. Oganovic, Acting Executive Director. 32 DUAL COMPENSATION REPORT [Attachment to FPM Letter 300-5] Finance Centers of the 7 Uniformed Services Army_ Commanding General, Finance Center, U.S. Army. Attn: Chief, Retired Pay Division, Indianapolis, Ind., 46249. Navy_ Commanding Officer, Retired Pay Department. U.S. Navy Finance Center, Cleveland, Ohio, 44114. Marine Corps_Commandant of the Marine Corps (CDH), Head¬ quarters, Marine Corps, Washington, D.C., 20380. Air Force_Air Force Accounting and Finance Center, Direc¬ torate of Allotment of Retired Pay, 3800 York Street, Denver, Colo., 80205. Coast Guard_ Commandant (FP-4), U.S. Coast Guard Head¬ quarters, Washington, D.C., 20226. Coast and Geodetic Survey. U.S. Coast and Geodetic Survey, Chief Officer, Personnel. Attn: C-5, Department of Com¬ merce, Washington, D.C., 20230. Public Health Service_Commissioned Officers’ Pay Unit, Central Payroll Division (DHEW), Post Office Box 1620, Wash¬ ington, D.C., 20013. Attachment C [Bulletin No. 550-10] United States Civil Service Commission BULLETIN Washington, D.C. 20415 November 18, 1964 Bulletin No. 550-10. Subject: Section 201(f) of the Dual Compensation Act, Public Law 88-44S. Heads of Departments and Independent Establishments: PURPOSE In Bulletin 550-9, September 10, 1964, we outlined the purposes and scope of the Dual Compensation Act and summarized its provisions. The purpose of this bulletin is to provide current information about actions being taken to implement section 201(f) of the act—the election provisions. GENERAL PROVISIONS OF SECTION 201 (f) Section 201(f) provides that a retired Regular commissioned or warrant officer of the uniformed services who is employed in a civilian office or position on the day immediately preceding the effective date of the act (November 30, 1964) may elect to remain subject to, or exempt from, any applicable compensation limitations in effect on that date, or may elect to become subject to the applicable limitations and exemptions to receipt of retired pay in the new Dual Compensa¬ tion Act. Section 201(f) further provides that these elections are irrevocable and must be filed with the department concerned not later than March 1, 1965, the 90th day after the effective date of the act. Retired officers who fail to make an election on or before March 1, 1965, are considered to have elected to remain in the status they occupied on November 30, 1964. PROCEDURES FOR IMPLEMENTING SECTION 201 (f) The responsibility for establishing procedures and administering the provisions of section 201(f) rests with the several finance centers of the uniformed services. The Armed Forces (Army, Navy, Air Force, Marine Corps, and Coast Guard) have developed uniform procedures under which retired officers of these services will make their elections. The Public Health Service and the Coast and Geo¬ detic Survey, who have relatively few retired officers eligible to make elections under section 201(f), have developed separate procedures to carry out their re¬ sponsibility. The procedures discussed here are those developed by the Armed Forces. DUAL COMPENSATION REPORT 33 The Armed Forces have developed a form on which retired officers will make their elections. This form is reproduced immediately below: CIVIL EMPLOYMENT CERTIFICATE 1. Public L»w 88-448 effective 1 December 1964 provide* th»t » retired officer of any regular component of the uniform aervice* em¬ ployed under the U. S. Government, Government owned or controlled corporation, municipal Government of the District of Columbia, or nonappropriated fund instrumentalities under the jurisdiction of the Armed Forces is subject to limitations on the amount of retired psy he may receive while so employed. You arc required to complete the certificate below: . I 1 *• I certify I am not employed in any position described in para 1 above. Further, I will notify the Commandant of the Marine Corps (Code CD II), Headquarters U. S. Marine Corps, Washington, D. C., 20380, if 1 accept such a position. I 1 b. I certify 1 am employed in a position described In para 1 above, as follows: FULL NAME ANO ADDRESS OF AGENCY OR DEPARTMENT BY WHOM EMPLOYED DATE EMPLOYEO SALARY RATE POSITION TITLE 2. If you are federally employed, on 30 November 1964, you are required to elect one of the following: 1 | a. I elect to remain subject to my present exemption or present limitation of $10,000.00 a year rate for combined aalary of civilian office plus retired pay. I | b. I elect to become subject to limitation of retired pay rate of $2,000.00 a year plus one half of the remainder aa provided by Public Law 88-448. OATE SIGNATURE RANK SERVICE NUMBER This election is irrevocable. In the event of any appointment, reinstatement, or reemployment on or after 1 December 1964 which fol-. lows a break in service of more than thirty days, retired officer shall be subject to limitations of Public Law 88-448. If an election i* not filed within 90 days from 1 December 1964, member shall remain under exemption or limitation in effect before enactment of Public Law 88-448. NOTE: Do not use this form for reporting address changes, requesting information, etc. The form shown above is that of the Marine Corps and contains the corps address under item la. The other services will use the same form but will show their own addresses. The forms are preaddressed and can be mailed postage free. The several finance centers will mail the election forms, along with instructions and advice to complete them, to the current home address of every retired com¬ missioned and warrant officer of a Regular component of the Armed Forces. Mailing will be done on or about December 1, 1964. If an employee who should make an election does not receive an election form by January 1, 1965, he should be advised to contact his finance center immediately. This is most important in the light of the provision that failure to make a timely election constitutes an irrevocable election in itself. Questions and Answers Below are several questions and answers which agencies may find useful in providing information to employees eligible to make elections under section 201(f): 1. Q. With regard to the department with which the officers must file their elections, is this the department in which they are employed or the department from which they retired?—A. Elections must be filed with the department from which the officers retired. As an example, a retired Army officer who is employed on November 30, 1964, in the Navy Department will file his election with the Army. Actually, if an employee simply mails the election form he receives from his finance center, it will get to the correct place. 2. Q. Is an election made before December 1, 1964 (the effective date of Public Law 88-448) a valid election?—A. No. The Comptroller General has decided (B-155184, Oct. 5, 1964) that valid elections cannot be made before December 1, 1964. (To avoid such invalid elections, the Armed Forces plan to time the mailing of election forms so that retired officers do not receive them before December 1, 1964.) 3. Q. How long does a retired officer have to file his election?—A. He must make his election and mail it in sufficient time so that the department receives it on or before March 1, 1965. In B-155184, the Comptroller General held that even though an election is postmarked before March 1, 1965, it will not be a valid election unless it is received by the department concerned on or before that date. 4. Q. When will a valid election become effective?—A. All valid elections will become effective on Decembei 1, 1964, no matter when they are made (B-155184). 5. Q. How can agencies advise their employees what election they should make?—A. In most cases, it would be best for agencies not to attempt to tell an employee what election is “best” for him because the “best” election depends entirely upon each employee’s situation and what is best today may not be best in some future situation. 34 DUAL COMPENSATION REPORT Officers presently exempt from limitations on their compensation (e.g., retired Regular warrant officers, officers retired because of “combat” disability, and officers working for nonappropriated fund activities of the military departments) probably will find it advantageous to elect to stay exempt under the old law. The problem may be more complex for an officer subject to the 1932 act whose combined civilian salary and retired pay is less than $10,000. If he elects to come under the new act he will lose money immediately if his retired pay exceeds $2,000. However, he will undoubtedly want to consider the prospects for increases in both his civilian salary and his retired pay in deciding upon his election. In each case, this is a personal judgment that the officer concerned will have to make for himself on the basis of the best available information. If employees ask about their status under dual compensation laws in effect on November 30, 1964, or about what their status will be if they elect to become subject to the new act, they should be advised to direct their questions to their finance center. Nicholas J. Oganovic, Acting Executive Director. Attachment D [FPM Letter 296-8] United States Civil Service Commission FEDERAL PERSONNEL MANUAL SYSTEM LETTER Washington, D.C., 20415 December 30, 1964 FPM Letter No. 296-8 Subject: Reporting on accessions of retired members of the uniformed services. Heads of Departments and Independent Establishments: PURPOSE Section 204 of the Dual Compensation Act, Public Law 88-448, effective December 1, 1964, provides that the President shall send to Congress on or before January 1, 1966, a comprehensive report on the operations under title II of the act (employment of retired members of uniformed services). Additionally, the Commission itself must keep informed about the employment of retired members of the uniformed services in the Federal service. This letter establishes special reporting requirements that will provide information needed for both purposes. In the material that follows, “uniformed services” means the Army, Navy, Air Force, Marine Corps, Coast Guard, Coast and Geodetic Survey, and Public Health Service. “Civilian position” means a civilian office or position (including a temporary, part-time, or intermittent position), appointive or elective, in the legislative, executive, or judicial branch of the Federal Government (including each corporation owned or controlled by the Federal Government and including nonappropriated fund instrumentalities under the jurisdiction of the Armed Forces) or in the municipal Government of the District of Columbia. REPORTING REQUIREMENTS Effective December 1, 1964, each agency will record the information listed below on a Standard Form 50 (or a modification of this form), or its equivalent, whenever a retired member of the uniformed services is added to the agency’s rolls, whatever the personnel action involved. If a copy of the form would not be sent to the Civil Service Commission under standard reporting instructions, one is to be sent nevertheless. In addition to the information required on the Standard Form 50, or its equiva¬ lent, by the nature of the personnel action involved, agencies will: A. Under “Nature of Action,” add “RETO” (for retired commissioned or warrant officers) or “RETM” (for retired enlisted men). B. Under “Remarks,” add as the last item the following information in the order listed. If possible, separate this information from the balance DUAL COMPENSATION REPORT 35 of remarks by one typewriter space. (See the attached sample Standard Form 50.) 1. RETO or RETM; 2. The uniformed service from which the member retired; 3. The effective date of his retirement; 4. The member’s service number; 5. The rank held when the member retired; 6. Whether the member had 20 or more years of active service; 7. Whether the member was a regular or nonregular; 8. Whether the member’s retirement was based upon “combat” disability; 9. Where the member was a regular officer, whether he is excepted under section 201(e) of Public Law 88-448 from reduction in retired pay. (NB: This item applies only to regular commissioned and warrant officers.) EXPLANATORY MATERIAL To assist agencies in recording the required information, the following explana¬ tory material is provided: 1. RETO or RETM. —This ties in with the “Nature of Action” entry to facilitate Commission data processing operations. 2. Uniformed service. —The service in which the appointee served will be abbreviated as “A” for Army, “N” for Navy, “AF” for Air Force, “MC” for Marine Corps, “CG” for Coast Guard, “CGS” for Coast and Geodetic Survey, and “PIi” for Public Health Service. This information will normally be revealed in the appointee’s description of his employment history. 3. Retirement date. —This information probably can be obtained most easily directly from the appointee. 4. Service number. —This information will be ascertained directly from the appointee. 5. Rank. —Rank at the time the member retired is to be recorded in terms of pay grade. (See attachment B, which lists pay grades and titles.) This information can readily be obtained from (1) the appointee’s employment history, (2) the appointee’s military records (e.g., his Form DD 214), or (3) from the appointee himself. 6. Regular or nonregular. —If the appointee says he was a member of a regular component of a uniformed service, record “reg”; otherwise record “nonreg”. All reservists are nonregulars; all retired members of the Coast and Geodetic Survey are regulars. Other uniformed services have both regular and nonregular personnel. What is recorded here will have to rest entirely upon the appointee’s understanding of whether he was a regular or nonregular. It is appreciated that this information may not be entirely accurate, but for these purposes it will suffice. 7. Years of active service. —Record “20” if the appointee retired from his uniformed service with 20 or more vears of active service; record “less 20” if he had less than 20 years of such service. Total years of full-time active service will be counted regardless of when performed but periods of active duty for training will not be counted. 8. “ Combat ” disability retirement. —Record “smbt” (standing for for combat disability) when retirement was based on disability (A) resulting from injury or disease received in line of duty as a direct result of armed conflict, or (B) caused by an instrumentality of war and incurred in the line of duty during a period of war. Record “nonembt” when retirement was not based on disability under (A) or (B). 9. Exce-pted under section 201(e). —This item applies only to appointees who say they are retired regular commissioned officers or warrant officers of the uniformed services. This item is designed to show which retired regular officers are excepted from the reduction-in-retired-pay provisions in section 201(a) of the Dual Compensation Act by section 201(e) of the act; the section that authorizes the Commission to provide for exceptions and grants the National Aeronautics and Space Administration up to 30 exceptions. For regular officers, record “201e” when the appointee is excepted under section 201(e); record “not 201e” when the appointee is not excepted under section 201(e). In addition, when “201e” is recorded to reflect an exception granted by the Commission, the authority for the exception will be cited too 36 DUAL COMPENSATION REPORT (e.g., “201e CS Reg. . . NASA will cite only “201e” when the excep¬ tion is made under its direct authority in the act. For nonregular officers and enlisted men, this item will be left unanswered. Attached to this letter is a sample Form 50 which illustrates how this informa¬ tion will be recorded. SUBSEQUENT REPORTS On or about October 1, 1965, agencies will be asked for their narrative comments on the general effects of the Dual Compensation Act. More specifically, they will be asked to state the benefits derived from the new law and to identify any prob¬ lems encountered in operating under specific provisions of the act. REPORTS TO FINANCE CENTERS As pointed out in FPM Letter 300-5, finance centers of the uniformed services will want to know whenever a retired officer is added to an agency’s rolls. Em¬ ploying agencies will continue to send a copy of the Standard Form 50, or its equivalent, to the appropriate finance center whenever they employ a retired officer. (Standard Form 50’s on retired enlisted men will not be sent to the finance centers.) Standard Form 50’s sent to finance centers should be completed in accordance with the instructions given in this Letter. Warren B. Irons, Executive Director. Attachments. DUAL COMPENSATION REPORT 37 Sf.*»«Hrrl f rum Rev. Dee. IftCI U S. Civil SrrVKe Commiuion FPM K-l (For aftncy ui() NOTIFICATION OF PERSONNEL ACTION (EMPLOYEE—S«e General Information on Reverse) Attachment A to FPM LET. 296-8 50-116 1. NAME (CAPS) LAST-FIRST-MIDDLE MR.—MISS—MRS. 2 (For a$tn