A-30108, JUNE 6, 1932, 11 COMP. GEN. 464

A-30108: Jun 6, 1932

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ACCOUNTING - CIVIL SERVICE RETIREMENT AND DISABILITY FUND AS THE CIVIL SERVICE COMMISSION IS CHARGED BY LAW TO MAINTAIN ACCOUNTS AND RECORDS OF DATA CONSIDERED NECESSARY TO DETERMINE INDIVIDUAL RIGHTS UNDER THE CIVIL SERVICE RETIREMENT AND DISABILITY ACT AND THE CANAL ZONE RETIREMENT AND DISABILITY ACT. APPLICATION FOR AND COLLECTION OF THE PURCHASE OF SERVICE CREDITS OR REDEPOSITS OF REFUNDS ARE TO BE MADE THROUGH THE ADMINISTRATIVE OFFICE. ARE PROPOSED. THE CIVIL SERVICE COMMISSION IS CHARGED WITH MAINTAINING ADEQUATE RECORDS AFFECTING INDIVIDUAL RIGHTS UNDER THE RETIREMENT LAWS. AMOUNTS DEPOSITED IN THE TREASURY ON ACCOUNT THEREOF ARE TO BE IDENTIFIED AND RECONCILED WITH. THE BASIC ACCOUNTS SO ESTABLISHED WILL BE USED AS THE OFFICIAL RECORD OF CIVIL EMPLOYEES' FEDERAL SERVICE AND OF CONTRIBUTIONS TO.

A-30108, JUNE 6, 1932, 11 COMP. GEN. 464

ACCOUNTING - CIVIL SERVICE RETIREMENT AND DISABILITY FUND AS THE CIVIL SERVICE COMMISSION IS CHARGED BY LAW TO MAINTAIN ACCOUNTS AND RECORDS OF DATA CONSIDERED NECESSARY TO DETERMINE INDIVIDUAL RIGHTS UNDER THE CIVIL SERVICE RETIREMENT AND DISABILITY ACT AND THE CANAL ZONE RETIREMENT AND DISABILITY ACT, SAID DATE MUST BE FURNISHED PROMPTLY TO THE VETERANS' ADMINISTRATION FOR THE ADJUDICATION OF CLAIMS ARISING UNDER THE ACTS AND FOR THE MAINTENANCE OF ACCOUNTS. INTEREST COMPUTATIONS ON TRANSACTIONS OF THE CIVIL SERVICE RETIREMENT AND DISABILITY FUND SHOULD BE ON THE BASIS OF A FULL YEAR OF 365 DAYS INSTEAD OF THE 360-DAY YEAR. APPLICATION FOR AND COLLECTION OF THE PURCHASE OF SERVICE CREDITS OR REDEPOSITS OF REFUNDS ARE TO BE MADE THROUGH THE ADMINISTRATIVE OFFICE. DETERMINATION OF THE AMOUNT OF THE LUMP-SUM OR INSTALLMENT PAYMENT SHALL BE MADE BY OR UNDER THE REGULATIONS PROMULGATED BY THE ADMINISTRATOR OF VETERANS' AFFAIRS.

COMPTROLLER GENERAL MCCARL TO THE ADMINISTRATOR OF VETERANS' AFFAIRS, JUNE 6, 1932:

FOR SOME TIME THIS OFFICE HAS HAD UNDER CONSIDERATION THE QUESTION OF AN APPROVED ACCOUNTING SYSTEM FOR THE CIVIL SERVICE RETIREMENT AND DISABILITY FUND AND THE CANAL ZONE RETIREMENT AND DISABILITY FUND THAT WOULD ENABLE THE VARIOUS OFFICES CONCERNED TO PERFORM THE DUTIES IMPOSED BY LAW AND FURNISH ADEQUATE DATE FOR PROPER ADMINISTRATION. AFTER VARIOUS CONFERENCES WITH OFFICIALS OF THE VETERANS' ADMINISTRATION AND CIVIL SERVICE COMMISSION, AND A CAREFUL STUDY OF THE QUESTIONS INVOLVED, THE FOLLOWING PROCEDURE AND SYSTEM OF ACCOUNTS, WITH DETAILS AS SET FORTH IN ATTACHED OUTLINE, ARE PROPOSED.

THE CIVIL SERVICE COMMISSION IS CHARGED WITH MAINTAINING ADEQUATE RECORDS AFFECTING INDIVIDUAL RIGHTS UNDER THE RETIREMENT LAWS, AND AMOUNTS DEPOSITED IN THE TREASURY ON ACCOUNT THEREOF ARE TO BE IDENTIFIED AND RECONCILED WITH, AND CREDITED TO, SUCH INDIVIDUAL ACCOUNTS.

THE BASIC ACCOUNTS SO ESTABLISHED WILL BE USED AS THE OFFICIAL RECORD OF CIVIL EMPLOYEES' FEDERAL SERVICE AND OF CONTRIBUTIONS TO, AND PAYMENTS FROM, THE CIVIL SERVICE RETIREMENT AND DISABILITY FUND. ALL MATTERS AFFECTING THE RETIREMENT RIGHTS OF EMPLOYEES AND ALL PAYMENTS FROM THE FUND ON ACCOUNT OF EMPLOYEES WILL BE PROPERLY RECORDED ON THE INDIVIDUAL ACCOUNTS AND RECORDS CONCERNED. SUCH ACCOUNTS WILL PROVIDE THE FULL HISTORY OF ALL TRANSACTIONS AFFECTING EACH INDIVIDUAL WITHIN THE PURVIEW OF THE RETIREMENT ACTS. IN ORDER THAT SUCH RECORDS MAY SERVE THE VETERANS' ADMINISTRATION FOR THE PROMPT ADJUDICATION OF CLAIMS, PARTICULARLY FOR INDIVIDUALS NEARING RETIREMENT AGE OR APPLYING FOR BENEFITS ON ACCOUNT OF DISABILITY, STEPS SHOULD BE TAKEN PROMPTLY BY THE CIVIL SERVICE COMMISSION TO VERIFY SUCH INDIVIDUAL RECORDS WITH A VIEW TO INSURING ACCURATE ACCOUNTS AND SERVICE RECORDS FOR THE EMPLOYEES CONCERNED.

REFERRING TO THE PROVISION OF PARAGRAPH 4 OF GENERAL REGULATIONS NO. 59, SUPPLEMENT NO. 1, OF FEBRUARY 28, 1929, WHICH PROVIDES THAT, WHEN ADVANCES OF PUBLIC FUNDS ARE MADE TO EMPLOYEES UNDER PROVISIONS OF THE SUBSISTENCE EXPENSE ACT OF 1926, 44 STAT. 688, UPON THE SECURITY OF, AND UP TO THE AMOUNT THAT HAS BEEN DEDUCTED FROM, THE SALARY, PAY, OR COMPENSATION OF THE APPLICANT FOR CREDIT IN THE CIVIL SERVICE RETIREMENT AND DISABILITY FUND,"APPROPRIATE NOTATIONS OF AMOUNTS ADVANCED AND SUBSEQUENTLY ACCOUNTED FOR WILL BE MADE ON STANDARD FORM NO. 1056, RETIREMENT RECORD CARD.' VIEW OF THE FACT THAT STANDARD FORM NO. 1056 HAS BEEN SUPERSEDED BY CIVIL SERVICE FORM 2806, THE REQUIRED NOTATION SHOULD BE ENTERED ON THE INDIVIDUAL ACCOUNT (FORM 2806) OF THE EMPLOYEE CONCERNED.

THE FOLLOWING FORMS ARE PROPOSED FOR USE IN CONNECTION WITH THE PLAN:

FORM TITLE EXHIBIT NO. 2806 INDIVIDUAL ACCOUNT AND RETIREMENT RECORD ---- ----- 1 NO. ---- APPLICATION FOR REFUND --------------------------- 2 NO. 1055 ESTATE APPLICATION ------------------------------- 3 NO. ---- SCHEDULE OF REFUND AND/OR ESTATE CLAIMS ---------- 4 NO. ---- APPLICATION FOR RETIREMENT ----------------------- 5 NO. ---- APPLICATION FOR DISABILITY RETIREMENT ------------ 6 NO. ---- SCHEDULE OF RETIREMENT CLAIMS -------------------- 7 NO. ---- FILE AND CHECK CARD --------- ----- --------------- 8 NO. 1070 SCHEDULES OF CIVIL SERVICE RETIREMENT AND DISABILITY

FUND CREDITS --------------------------- 9

IF THE ABOVE FORMS THAT HAVE NOT BEEN STANDARDIZED PROVE TO BE SUFFICIENT FOR THE PURPOSES SUBMITTED, IT IS CONTEMPLATED TO STANDARDIZE SAME IN DUE COURSE.

A GENERAL SYSTEM OF ACCOUNTS WILL BE MAINTAINED TO SHOW THE STATUS OF THE FUND AT ALL TIMES. CONTRIBUTION ACCOUNTS WILL BE MAINTAINED IN DETAIL BY THE CIVIL SERVICE COMMISSION AND EXPENDITURE ACCOUNTS BY THE VETERANS' ADMINISTRATION. IN BOTH OFFICES SUMMARY ACCOUNTS WILL BE ESTABLISHED FOR CONTROL AND REPORT PURPOSES.

THE FOLLOWING ACCOUNTS WITH THE SUBSIDIARY RECORDS AND POSTING MEDIA OUTLINED IN DETAIL ON EXHIBIT 10 ARE CONSIDERED NECESSARY FOR PROPER CONTROL AND REPORT PURPOSES:

TABLE

01. TREASURY CASH.

03. DISBURSING OFFICER'S CASH.

04. DEDUCTIONS AND COLLECTIONS IN TRANSIT. 09.06 INVESTMENTS--- CONTROL.

10. INTEREST EARNED BY NOT RECEIVED.

45.1. ANNUITY EXPENSE ACCRUED--- RETIRED EMPLOYEES.

45.2. ANNUITY PAYMENTS.

46.1. INTEREST EXPENSE ACCRUED.

46.2. INTEREST ON REFUNDS.

46.3. INTEREST ON ANNUITY CLAIMS.

47. ANNUITY EXPENSE ACCRUED--- ACTIVE EMPLOYEES.

60.1. CURRENT CLAIM PENDING.

61. RETIRED EMPLOYEES' EQUITY.

62. LIABILITY RESERVE--- RETIRED EMPLOYEES.

62.6. RETIRED EMPLOYEES' EQUITY USED TO PURCHASE HIGHER ANNUITIES.

63.1. FORMER EMPLOYEES' CONTRIBUTIONS.

63.2. RETIRED EMPLOYEES' ESTATES.

64.1. EMPLOYEES' CONTRIBUTIONS.

64.2. INTEREST LIABILITY.

65. LIABILITY RESERVE--- ACTIVE EMPLOYEES.

69. CURRENT CONTRIBUTIONS.

75.1. TONTINE CONTRIBUTIONS.

75.2. INTEREST INCOME.

75.3. GIFTS.

75.4. GOVERNMENT CONTRIBUTIONS.

80. SURPLUS.

ALL CLAIMS CONSIST OF THREE PARTS: (1) APPLICATION. (2) PROOF OF CLAIM, AND (3) AWARD.

APPLICATIONS ORIGINATE FROM (1) FORMER EMPLOYEES SEEKING REFUNDS, (2) EMPLOYEES SEEKING RETIREMENT ON ACCOUNT OF AGE, (3) EMPLOYEES SEEKING RETIREMENT ON ACCOUNT OF DISABILITY, (4) HEADS OF DEPARTMENTS REQUESTING THE RETIREMENT OF EMPLOYEES ON ACCOUNT OF DISABILITY, (5) ESTATES OF FORMER EMPLOYEES, AND (6) ESTATES OF FORMER ANNUITANTS. IN THE CASES OF (2) TO (5), INCLUSIVE, THE COMPLETED APPLICATIONS WILL BE FILLED OUT BY THE APPLICANTS AND FORWARDED THROUGH THE ADMINISTRATIVE OFFICES TO THE CIVIL SERVICE COMMISSION FOR INFORMATION AND/OR PROOF OF THE CLAIM. IT IS NECESSARY TO PROVE DISABILITY BEFORE ORDERING THE RETIREMENT AND REQUESTING THE ACCOUNT OF SUCH EMPLOYEES TO DETERMINE THE AMOUNT OF THE ANNUITY. APPLICATIONS FROM (6) ESTATES OF FORMER ANNUITANTS WILL BE FILED WITH THE VETERANS' ADMINISTRATION AND PAID ON A SEPARATE SCHEDULE OF REFUNDS (FORM------) BY CHANGING THE COLUMN HEADED "TONTINE DEDUCTIONS" TO "ACCRUED ANNUITY.'

WHEN APPLICANTS ARE RECEIVED IN THE CIVIL SERVICE COMMISSION, THE INDIVIDUAL ACCOUNTS AND RETIREMENT RECORDS, DULY CERTIFIED, WILL BE ATTACHED TO THE APPLICATIONS CONCERNED, RECORDED ON THEIR RELATED SCHEDULES BY ENTERING THE NAME AND TOTAL OF THE DEDUCTIONS, AND FORWARDED TO THE VETERANS' ADMINISTRATION FOR ADJUDICATION. THE APPLICATION FOR DISABILITY RETIREMENT SERVES AUTOMATICALLY AS A NOTICE TO THE CIVIL SERVICE COMMISSION TO SATISFY ITSELF THAT THE ACCOUNTS AND RECORDS CONCERNED ARE COMPLETE IN EVERY WAY.

WHEN THE APPLICATIONS WITH ATTACHED PROOFS ARE RECEIVED IN THE VETERANS' ADMINISTRATION, THE ACCOUNTS WILL BE COMPLETED BY ENTERING THEREON, WHEN NECESSARY, COLLECTIONS MADE FROM CLAIMANTS FOR THE PURCHASE OF SERVICE CREDITS NOT PREVIOUSLY ENTERED, ETC., INTEREST ACCRUED TO SUCH CLAIMANTS, OTHER DATA NECESSARY TO DETERMINE THE CLAIMANTS' EQUITY IN THE FUND, AND THE FINAL ACTION OF THE OFFICE IN CONNECTION WITH THE CLAIMS. IN THE CASE OF ANNUITY, THE AMOUNTS THEREOF AND MONTHLY INSTALLMENTS WILL BE STATED ON THE INDIVIDUAL ACCOUNTS BY SHOWING THE ANNUITY AND THE PORTIONS CHARGEABLE TO THE GOVERNMENT AND THE EMPLOYEES' EQUITY, RESPECTIVELY.

COMPLETED SCHEDULES WILL BE FORWARDED IN TRIPLICATE, TOGETHER WITH ALL RELATED PAPERS, TO THE GENERAL ACCOUNTING OFFICE FOR PREAUDIT. WHEN THE AUDIT HAS BEEN COMPLETED, THE GENERAL ACCOUNTING OFFICE WILL RETURN THE SCHEDULES AND RELATED PAPERS TO THE VETERANS' ADMINISTRATION FOR PAYMENT, AS FOLLOWS:

1. TWO COPIES OF THE SCHEDULES OF ANNUITY CLAIMS, TOGETHER WITH THE RELATED PAPERS, WILL BE RETURNED DIRECTLY TO THE VETERANS' ADMINISTRATION.

2. THE THIRD COPY OF THE SCHEDULE OF ANNUITY CLAIMS WILL BE FORWARDED TO THE CIVIL SERVICE COMMISSION FOR USE AS POSTING MEDIA.

3. ORIGINAL COPY OF THE SCHEDULE COVERING REFUNDS WILL BE RETURNED DIRECTLY TO THE VETERANS' ADMINISTRATION.

4. TWO COPIES OF THE SCHEDULE COVERING REFUNDS, TOGETHER WITH ALL ACCOUNTS AND RELATED PAPERS, WILL BE FORWARDED TO THE CIVIL SERVICE COMMISSION.

5. THE CIVIL SERVICE COMMISSION WILL WITHDRAW THE ORIGINAL ACCOUNT AND ONE COPY OF THE SCHEDULE FOR ITS FILE, MAKE A PHOTOSTATIC COPY OF THE ORIGINAL ACCOUNT, AND SEND SUCH PHOTOSTATIC COPY WITH ONE COPY OF THE SCHEDULE AND RELATED PAPERS TO THE VETERANS' ADMINISTRATION.

IT IS NOTED THAT THE PRESENT INTEREST TABLES AND PROCEDURE ARE PREDICATED UPON A 360-DAY YEAR AND A 30-DAY MONTH AND COMPUTED ON EVEN DOLLARS ONLY. IN VIEW OF THE FACT THAT THE LAW CITES THE RATE OF INTEREST TO BE COMPUTED ON THE AMOUNTS DEDUCTED FROM THE SALARY, PAY, OR COMPENSATION OF EMPLOYEES FOR CREDIT TO THE CIVIL SERVICE RETIREMENT AND DISABILITY FUND AND FIXES THE PERIOD FOR COMPOUNDING THE SAME, IT IS CONSIDERED PROPER TO FOLLOW THE UNITED STATES RULE BY COMPUTING THE INTEREST ON THE FULL AMOUNT AND FOR A FULL YEAR.

THE ANNUITANT'S RECORD WILL CONSIST OF THE ORIGINAL INDIVIDUAL ACCOUNTS (CIVIL SERVICE FORM 2806), ARRANGED IN NUMERICAL OR ALPHABETICAL ORDER, AND A RECORD OF THE MONTHLY PAYMENTS. ANNUALLY OR UPON DEATH THE EQUITY OF THE ANNUITANT AS SHOWN BY THE INDIVIDUAL ACCOUNT WILL BE REDUCED BY THE AMOUNT CHARGEABLE THERETO, AND THE CONTROL AND EXPENSE ACCOUNTS WILL BE ADJUSTED BY THE SUMMARY OF SUCH POSTINGS. THE PAID CHECKS WILL BE FILED IN THE GENERAL ACCOUNTING OFFICE IN CLAIM NUMBER ORDER AS SHOWN BY THE "FILE AND CHECK CARD," EXHIBIT 8. ACCOUNTS OF DECEASED ANNUITANTS WILL BE TRANSFERRED FROM THE ACCOUNT "61. RETIRED EMPLOYEES' EQUITY" TO THE ACCOUNT ,63.2. RETIRED EMPLOYEES' ESTATES," EITHER THROUGH THE USE OF A REGISTER OR BY LISTING DIRECTLY IN THE ACCOUNTS.

EMPLOYEES DESIRING TO PURCHASE SERVICE CREDITS OR TO REDEPOSIT AMOUNTS PREVIOUSLY REFUNDED WILL MAKE APPLICATION THEREFOR TO THEIR RESPECTIVE ADMINISTRATIVE OFFICERS. THE AMOUNT DUE THE CIVIL SERVICE RETIREMENT AND DISABILITY FUND IN SUCH CASES WILL BE DETERMINED IN ACCORDANCE WITH REGULATIONS AND/OR INSTRUCTIONS PROMULGATED BY THE VETERANS' ADMINISTRATION. COLLECTIONS OF SUCH AMOUNTS WILL BE MADE IN CASH OR BY DEDUCTIONS ON THE PAY ROLLS BY THE OFFICE HAVING THE CUSTODY OF THE INDIVIDUAL ACCOUNT AT THE TIME THE TRANSACTIONS OCCUR. IF RECEIVED IN CASH, THE AMOUNTS WILL BE TAKEN UP ON THE SCHEDULE OF CIVIL SERVICE RETIREMENT AND DISABILITY FUND CREDITS, STANDARD FORM 1070, BY LISTING THE NAME AND AMOUNT WITH APPROPRIATE NOTATIONS. IF DEDUCTED ON THE PAY ROLL, THE RETIREMENT FUND DEDUCTION WILL BE INCREASED BY THE AMOUNT OF SUCH DEDUCTION AND APPROPRIATE ENTRY MADE IN THE "REMARKS" COLUMN OF THE PAY ROLL. IN EITHER CASE APPROPRIATE NOTATION WILL BE MADE IN THE ACCOUNT OF THE INDIVIDUAL CONCERNED AND INCLUDED IN AMOUNT CREDITED TO SUCH INDIVIDUAL'S ACCOUNT AND RECONCILED WITH TREASURY DEPOSITS. A COPY OF A SUGGESTED VETERANS' ADMINISTRATION REGULATION (EXHIBIT 11) COVERING AN ACCEPTABLE PROCEDURE TO INSTALL THIS PROCEDURE IS FURNISHED FOR YOUR CONSIDERATION.

INASMUCH AS IT IS DESIRED TO INSTALL THIS PROCEDURE AND SYSTEM OF ACCOUNTS ON JULY 1, 1932, FOR THE CIVIL SERVICE RETIREMENT AND DISABILITY FUND, AND THE CANAL ZONE RETIREMENT AND DISABILITY FUND, YOUR EARLIER COMMENTS THEREON WILL BE APPRECIATED.

A SIMILAR LETTER OF EVEN DATE IS WRITTEN TO THE CIVIL SERVICE COMMISSION.