B-64919, MAY 15, 1947, 26 COMP. GEN. 878

B-64919, MAY 15, 1947, 26 COMP. GEN. 878

CIVILIAN RETIREMENT DEDUCTIONS - DESIGNATION OF U.S. GOVERNMENT AS BENEFICIARY A DECEASED EMPLOYEE WHO HAD UNQUALIFIEDLY DESIGNATED THE UNITED STATES GOVERNMENT AS THE BENEFICIARY OF THE AMOUNT TO HIS CREDIT IN THE RETIREMENT FUND, AS PERMITTED BY THE CIVIL SERVICE RETIREMENT ACT, AS AMENDED (5 U.S.C. 724 (F) (, AND REGULATION THEREUNDER, IS TO BE REGARDED AS HAVING INTENDED TO MAKE A DONATION "FOR THE BENEFIT OF CIVIL-SERVICE EMPLOYEES GENERALLY" WITHIN THE MEANING OF SECTION 10 OF SAID ACT; AND THE AWARD OF THE GOVERNMENT'S CLAIM IN SUCH AMOUNT SHOULD BE APPROVED UNDER THE TRUST FUND APPROPRIATION ACCOUNT," CIVIL SERVICE RETIREMENT AND DISABILITY FUND," WITH DIRECTION THAT CHECK BE DRAWN IN FAVOR OF THE TREASURER OF THE UNITED STATES FOR DEPOSIT TO THE RECEIPT ACCOUNT,"DONATIONS, CIVIL SERVICE RETIREMENT AND DISABILITY FUND.'

COMPTROLLER GENERAL WARREN TO THE PRESIDENT, UNITED STATES CIVIL SERVICE COMMISSION, MAY 15, 1947:

REFERENCE IS MADE TO YOUR LETTER OF MARCH 25, 1947, AS FOLLOWS:

IT HAS COME TO THE ATTENTION OF THIS COMMISSION THAT IN INSTANCES INVOLVING DEATHS OF TWO EMPLOYEES COMING UNDER THE PURVIEW OF THE CIVIL SERVICE RETIREMENT ACT THE UNITED STATES GOVERNMENT IS SPECIFICALLY DESIGNATED AS BENEFICIARY OF THE AMOUNTS REMAINING TO THE CREDIT OF THESE INDIVIDUALS IN THE CIVIL SERVICE RETIREMENT AND DISABILITY FUND.

AN OPINION IS, THEREFORE, REQUESTED WHETHER THESE BALANCES SHOULD REMAIN IN THE RETIREMENT TRUST FUND UNDER THE PROVISIONS OF SECTION 10 OF THE CIVIL SERVICE RETIREMENT ACT. IF NOT, IT IS REQUESTED THAT THIS COMMISSION BE INFORMED AS TO THE PROPER DISPOSITION OF THESE FUNDS AND FURNISHED WITH THE NECESSARY ACCOUNTING INSTRUCTIONS.

SECTION 10 OF THE CIVIL SERVICE RETIREMENT ACT OF 1930, 46 STAT. 475, REFERRED TO IN YOUR LETTER, PROVIDES, IN PERTINENT PART, AS FOLLOWS:

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, OR BEQUESTS, OR OTHERWISE AND TO RECEIVE, DEPOSIT, AND INVEST FOR THE PURPOSES OF THIS ACT ALL MONEYS WHICH MAY BE CONTRIBUTED BY PRIVATE INDIVIDUALS OR CORPORATIONS OR ORGANIZATIONS FOR THE BENEFIT OF CIVIL-SERVICE EMPLOYEES GENERALLY.

ALSO, THE CIVIL SERVICE RETIREMENT ACT, AS AMENDED, AUTHORIZES AN EMPLOYEE TO DESIGNATE A BENEFICIARY IN ACCORDANCE WITH REGULATIONS OF THE CIVIL SERVICE COMMISSION TO RECEIVE ANY AMOUNT STANDING TO HIS CREDIT IN THE RETIREMENT FUND AT TIME OF DEATH (5 U.S.C. 724 (F) ). BY REGULATION, THE COMMISSION HAS PROVIDED THAT AN EMPLOYEE MAY DESIGNATE ANY PERSON, FIRM, CORPORATION, OR LEGAL ENTITY AS BENEFICIARY OF THE AMOUNT TO HIS CREDIT IN THE RETIREMENT FUND. THE SPECIFIC AND UNQUALIFIED DESIGNATION (BY AN EMPLOYEE) OF THE UNITED STATES GOVERNMENT AS THE BENEFICIARY OF SUCH AMOUNT APPEARS PROPER UNDER THE COMMISSION'S REGULATIONS, AND I AM NOT AWARE OF ANY OTHER REGULATION OR STATUTE WHICH WOULD PRECLUDE SUCH A DESIGNATION OF BENEFICIARY.

SINCE THE CONGRESS HAS SPECIFICALLY AUTHORIZED THE ACCEPTANCE OF DONATIONS AND BEQUESTS FOR THE BENEFIT OF CIVIL SERVICE EMPLOYEES GENERALLY IT APPEARS REASONABLE TO CONCLUDE THAT WHERE AN EMPLOYEE UNQUALIFIEDLY DESIGNATES THE UNITED STATES GOVERNMENT AS THE BENEFICIARY OF HIS RETIREMENT FUND ACCOUNT, HE INTENDS TO MAKE A DONATION OF THE AMOUNT IN THAT ACCOUNT "FOR THE BENEFIT OF CIVIL SERVICE EMPLOYEES GENERALLY" WITHIN THE MEANING OF THOSE WORDS AS USED IN SECTION 10 OF THE STATUTE, SUPRA. SINCE, UPON DEATH, SUCH A DESIGNATION MATURES INTO A DEFINITE OBLIGATION UNDER THE TRUST FUND APPROPRIATION ACCOUNT," CIVIL SERVICE RETIREMENT AND DISABILITY FUND," SOUND ACCOUNTING WOULD REQUIRE THAT THE AWARD OF THE GOVERNMENT'S CLAIM BE APPROVED UNDER SAID TRUST APPROPRIATION WITH DIRECTION THAT, IN PAYMENT OF THE AWARD, CHECK BE DRAWN IN FAVOR OF THE TREASURER OF THE UNITED STATES FOR DEPOSIT TO THE RECEIPT ACCOUNT, 8135.1 " DONATIONS, CIVIL SERVICE RETIREMENT AND DISABILITY FUND.' COMPARE A-49382 DATED JUNE 26, 1933.