B-146505, AUG. 18, 1961

B-146505: Aug 18, 1961

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IS SERVICE IN FARM CREDIT BANKS WHICH IS COVERED BY THE RETIREMENT ACT CREDITABLE TOWARD . IF QUESTION 1 IS ANSWERED IN THE NEGATIVE. IS RETROACTIVE ADJUSTMENT REQUIRED? (WE ARE TOLD THAT ON OCCASION FORMER FARM CREDIT BANK EMPLOYEES HAVE BEEN APPOINTED IN THE FARM CREDIT ADMINISTRATION. 1960 (THE DATE FROM WHICH NEW BANK APPOINTEES HAVE BEEN EXEMPT FROM THE RETIREMENT ACT). HAS BEEN CREDITED IN DETERMINING THEIR ANNUAL LEAVE-EARNING CATEGORY.)" THE STATUS OF THE EMPLOYEES OF FARM CREDIT INSTITUTIONS AS FEDERAL OR NON -FEDERAL EMPLOYEES WAS IN DOUBT UNDER SECTION 6 OF THE FARM CREDIT ACT OF 1937. UNTIL THAT SECTION WAS AMENDED BY SECTION 201 OF THE FARM CREDIT ACT OF 1959. - CONTAINS THE FOLLOWING: "THE PRINCIPAL PURPOSES OF THE DRAFT BILL IS TO PROVIDE THAT OFFICERS AND EMPLOYEES OF THE LENDING INSTITUTIONS UNDER THE SUPERVISION OF THE FARM CREDIT ADMINISTRATION SHALL NO LONGER BE CONSIDERED AS FEDERAL EMPLOYEES FOR ALL PERSONNEL PURPOSES OTHER THAN RETIREMENT. * * *" THE FEDERAL RETIREMENT COVERAGE FOR CERTAIN EMPLOYEES OF FARM CREDIT INSTITUTIONS IS BASED UPON THE FARM CREDIT ACT OF 1959.

B-146505, AUG. 18, 1961

TO CHAIRMAN, UNITED STATES CIVIL SERVICE COMMISSION:

ON JULY 21, 1961, YOU REQUESTED OUR DECISION WHETHER PRIOR EMPLOYMENT WITH FARM CREDIT INSTITUTIONS SUPERVISED BY THE FARM CREDIT ADMINISTRATION MAY BE COUNTED IN DETERMINING THE RATE AT WHICH FEDERAL EMPLOYEES ACCRUE ANNUAL LEAVE UNDER SECTION 203 (A) OF THE ANNUAL AND SICK LEAVE ACT OF 1951, 65 STAT. 679, 5 U.S.C. 2062 (A).

YOU ASK THE FOLLOWING QUESTIONS:

"1. IS SERVICE IN FARM CREDIT BANKS WHICH IS COVERED BY THE RETIREMENT ACT CREDITABLE TOWARD ,YEARS OF SERVICE" UNDER SECTION 203 (A) OF THE ANNUAL AND SICK LEAVE ACT, IF AN EMPLOYEE MOVES TO A POSITION SUBJECT TO THE LEAVE ACT?

"2. IF QUESTION 1 IS ANSWERED IN THE NEGATIVE, TO WHAT EXTENT, IF ANY, IS RETROACTIVE ADJUSTMENT REQUIRED? (WE ARE TOLD THAT ON OCCASION FORMER FARM CREDIT BANK EMPLOYEES HAVE BEEN APPOINTED IN THE FARM CREDIT ADMINISTRATION, AND THAT BANK SERVICE UNDER THE RETIREMENT ACT, WHETHER BEFORE OR AFTER JANUARY 1, 1960 (THE DATE FROM WHICH NEW BANK APPOINTEES HAVE BEEN EXEMPT FROM THE RETIREMENT ACT), HAS BEEN CREDITED IN DETERMINING THEIR ANNUAL LEAVE-EARNING CATEGORY.)"

THE STATUS OF THE EMPLOYEES OF FARM CREDIT INSTITUTIONS AS FEDERAL OR NON -FEDERAL EMPLOYEES WAS IN DOUBT UNDER SECTION 6 OF THE FARM CREDIT ACT OF 1937, 50 STAT. 706, 12 U.S.C. 640 (LETTER) 1, UNTIL THAT SECTION WAS AMENDED BY SECTION 201 OF THE FARM CREDIT ACT OF 1959, 73 STAT. 387. 39 COMP. GEN. 445 WE HELD THAT SUCH EMPLOYEES WOULD BE CONSIDERED FEDERAL EMPLOYEES PRIOR TO JANUARY 1, 1960, THE EFFECTIVE DATE OF THE 1959 AMENDMENT, BUT WOULD NOT BE CONSIDERED FEDERAL EMPLOYEES AFTER THAT DATE. IN THAT CONNECTION THE LETTER OF THE THEN CHAIRMAN OF THE CIVIL SERVICE COMMISSION DATED APRIL 23, 1959, TO THE CHAIRMAN OF THE SENATE AGRICULTURE AND FORESTRY COMMITTEE CONCERNING S. 1512, 86TH CONGRESS, WHICH BECAME THE FARM CREDIT ACT OF 1959--- PRINTED ON PAGE 13924 OF THE CONGRESSIONAL RECORD FOR AUGUST 6, 1959--- CONTAINS THE FOLLOWING:

"THE PRINCIPAL PURPOSES OF THE DRAFT BILL IS TO PROVIDE THAT OFFICERS AND EMPLOYEES OF THE LENDING INSTITUTIONS UNDER THE SUPERVISION OF THE FARM CREDIT ADMINISTRATION SHALL NO LONGER BE CONSIDERED AS FEDERAL EMPLOYEES FOR ALL PERSONNEL PURPOSES OTHER THAN RETIREMENT. * * *"

THE FEDERAL RETIREMENT COVERAGE FOR CERTAIN EMPLOYEES OF FARM CREDIT INSTITUTIONS IS BASED UPON THE FARM CREDIT ACT OF 1959, AND NOT UPON SECTION 3 OF THE CIVIL SERVICE RETIREMENT ACT, 5 U.S.C. 2253, AS REQUIRED BY SECTION 203 (A) OF THE ANNUAL AND SICK LEAVE ACT OF 1951, SUPRA, FOR ANNUAL LEAVE ACCRUAL PURPOSES. THEREFORE, SERVICE WITH FARM CREDIT INSTITUTIONS AFTER JANUARY 1, 1960, MAY NOT BE COUNTED TO DETERMINE AN EMPLOYEE'S RATE OF ANNUAL LEAVE ACCRUAL EVEN THOUGH THE EMPLOYEE INVOLVED WAS COVERED BY FEDERAL RETIREMENT DURING SUCH SERVICE. 40 COMP. GEN. 412. SERVICE WITH SUCH INSTITUTIONS PRIOR TO JANUARY 1, 1960, IS CREDITABLE TOWARD "YEARS OF SERVICE" UNDER SECTION 203 (A). YOUR FIRST QUESTION IS ANSWERED ACCORDINGLY.

IN ANSWER TO YOUR SECOND QUESTION WE FEEL THAT RETROACTIVE ADJUSTMENT IS NECESSARY ONLY IN THOSE CASES WHERE EMPLOYEES ARE STILL ON THE ROLLS AND HAVE BEEN CREDITED WITH FEDERAL SERVICE FOR EMPLOYMENT WITH FARM CREDIT INSTITUTIONS AFTER JANUARY 1, 1960.