shall be reduced by the amount such deposit would purchase if made, unless the employee shall elect to eliminate such service entirely from credit under this Act. Sec. 9, act of July 3, 1926 (44 Stat. 910); sec. 9, act of May 29, 1930 (46 Stat. 475); act of June 23, 1938 (52 Stat. 943); 5 U. S. C. 736b.

688. Retirement deductions and contributions to fund.-Beginning as of July 1, 1926, 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 31⁄2 per centum of such employee's basic salary, pay, or compensation. The amounts so deducted and withheld from the basic salary, pay, or compensation of each employee shall, in accordance with such procedure as may be prescribed by the Comptroller General of the United States, be deposited in the Treasury of the United States to the credit of the "civil-service retirement and disability fund," created by the act of May 22, 1920, and said fund is hereby appropriated for the payment of annuities, refunds, and allowances as provided in this Act.

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.

Every employee coming within the provisions of this Act shall be deemed to consent and agree to the deduction from salary, pay, or compensation as provided herein, and payment less such deduction 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 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. Sec. 10, act of July 3, 1926 (44 Stat. 910); sec. 10, act of May 29, 1930 (46 Stat. 475); 5 U. S. C. 719, 721, 722. R. S. 169 is found in 636, ante.

A sum of money is annually placed to the credit of the "civil-service retirement and disability fund," by a recurring provision in the independent offices appropriation act.

689. Retirement and disability fund; investment and accounting. The Secre tary of the Treasury shall invest from time to time, in interest-bearing securities of the United States or Federal farm-loan bonds, such portions of the "civil-service retirement and disability fund" 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 12 of this Act.

The Comptroller General shall establish and maintain an account showing the annual liabilities of the Government under this Act, and shall keep such other accounts as may be deemed necessary for a proper administration of the Act. Sec. 11, act of July 3, 1926 (44 Stat. 910); sec. 11, act of May 29, 1930 (46 Stat. 476); 5 U. S. C. 720.

690. Retirement deductions; accounting and refund on separation or decease.— (a) Under such regulations as may be prescribed by the Civil Service Commission the amounts deducted and withheld from the basic salary, pay, or compensation of each employee for credit to the "civil-service retirement and disability fund" created by the Act of May 22, 1920, covering service during the period from August 1,

1920, to the effective date of this Act, shall be credited to an individual account of such employee, to be maintained by the department or office by which he is employed, and the amounts deducted and withheld from the basic salary, pay, or compensation of each employee for credit to the "civil-service retirement and disability fund" covering service from and after the effective date of this Act, less the sum of $1 per month or major fraction thereof, shall similarly be credited to such individual account.

(b) In the case of any employee to whom this Act applies who shall be transferred to a position not within the purview of the Act, or who shall become absolutely separated from the service before becoming eligible for retirement on annuity, the amount credited to his individual account shall be returned to such employee together with interest at 4 per centum per annum compounded on June 30 of each year: Provided, That when any employee becomes involuntarily separated from the service, not by removal for cause on charges of misconduct or delinquency, the total amount of his deductions with interest thereon shall be paid to such employee: And provided further, That all money so returned to an employee must, upon reinstatement, retransfer, or reappointment to a position coming within the purview of this Act, be redeposited with interest before such employee may derive any benefits under this Act, except as provided in this section, but interest shall not be required covering any period of separation from the service.

(c) In case an annuitant shall die without having received in annuities purchased by the employee's contributions as provided in (2) of section 4 of this Act an amount equal to the total amount to his credit at time of retirement, the amount remaining to his credit and any accrued annuity shall be paid, upon the establishment of a valid claim therefor, in the following order of precedence: First, to the beneficiary or beneficiaries designated in writing by such annuitant and recorded on his individual account;

Second, if there be no such beneficiary, to the duly appointed executor or administrator of the estate of such annuitant;

Third, if there be no such beneficiary, or executor or administrator, payment may be made, after the expiration of thirty days from the date of the death of the annuitant, to such person or persons as may appear in the judgment of the Civil Service Commission to be legally entitled thereto, and such payment shall be a bar to recovery by any other person.

In the case of an annuitant who has elected to receive an increased annuity as provided in section 4 of this Act, the amount to be paid under the provisions of this subsection shall be only the accrued annuity.

(d) In case an employee shall die without having attained eligibility for retirement or without having established a valid claim for annuity, the total amount of his deductions with interest thereon shall be paid, upon the establishment of a valid claim therefor, in the following order of precedence:

First, to the beneficiary or beneficiaries designated in writing by such employee and recorded on his individual account;

Second, if there be no such beneficiary, to the duly appointed executor or administrator of the estate of such employee;

Third, if there be no such beneficiary or executor or administrator, payment may be made, after the expiration of thirty days from the date of the death of the employee, to such person or persons as may appear in the judgment of the Civil Service Commission to be legally entitled thereto, and such payment shall be a bar to recovery by any other person.

(e) In case a former employee entitled to the return of the amount credited to his individual account shall become legally incompetent, the total amount

due may be paid to a duly appointed guardian or committee of such former employee. If the amount of refund due such former employee does not exceed $1,000, and if there has been no demand upon the Civil Service Commission by a duly appointed guardian or committee, payment may be made, after the expiration of thirty days from date of separation from the service, to such person or persons, in the discretion of the Commission, who may have the care and custody of such former employee, and such payment shall be a bar to recovery by any other person.

(f) Each employee or annuitant to whom this Act applies may, under regulations prescribed by the Civil Service Commission, designate a beneficiary or beneficiaries to whom shall be paid, upon the death of the employee or annuitant any sum remaining to his credit (including any accrued annuity) under the provisions of this Act. Sec. 12, act of July 3, 1926 (44 Stat. 911); sec. 12, act of May 29, 1930 (46 Stat. 476); act of June 22, 1934 (48 Stat. 1201); 5 U. S. C. 724.

Notes of Decisions

In general. The plaintiff, an employee of, the Government, was entitled upon resignation from the service to have returned to him the amount deducted from his salary and credited to the civil-service retirement fund, with interest thereon at 4%, compounded

on June 30th of each year, and same may not be withheld on account of disability compensation paid by the Government in the absence of proof of fraud. O'Leary v. U. S. (1936), 82 Ct. Cl. 305.

691. Retirement annuities; application and payment.-Annuities granted under the terms of this Act shall be due and payable in monthly installments 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 issued by the 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.

Applications for annuity shall be in such form as the Commissioner of Pensions may prescribe, and shall be supported by such certificates from the heads of departments, branches, or independent offices of the Government in which the applicant has been employed as may be necessary to the determination of the rights of the applicant. Upon receipt of satisfactory evidence the Commissioner of Pensions shall forthwith adjudicate the claim of the applicant, and if title to annuity be established, a proper certificate shall be issued to the annuitant under the seal of the Department of the Interior.

Annuities granted under this Act for retirement under the provisions of section 1 of this Act shall commence from the date of separation from the service and shall continue during the life of the annuitant. Annuities granted under the provisions of sections 6 and 7 hereof shall be subject to the limitations specified in said sections. Sec. 13, act of July 3, 1926 (44 Stat. 912); sec. 13, act of May 29, 1930 (46 Stat. 477); 5 U. S. C. 716, 717, 718, 725.

For sections 6 and 7, see 684 and 685, ante, respectively.

692. Retirement act; credit for unclassified service.-Employees who have gone from employment within the purview of this act to other employment under the Government and have returned to a position under the purview of this act shall have the time of such other service included in the computation for his retirement: Provided, That such employee shall contribute to the retirement fund upon reentering such employment within the purview of this act an

amount, including interest, equivalent to that which would have been paid if such employee had continued in such employment. Sec. 14, act of July 3, 1926 (44 Stat. 912); sec. 14, act of May 29, 1930 (46 Stat. 477) ; 5 U. S. C. 723. See also 683, ante.

693. Retirement act; functions of the Civil Service Commission.-The Civil 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 Commissioner of Pensions such reports therefrom as he shall from time to time request as necessary to the proper adjustment of any claim for annuity hereunder; and shall prepare and keep all needful tables and records required for carrying out the provisions of this Act, including data showing the mortality experience of the employees in the service and the percentage of withdrawals 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. Sec. 15, act of July 3, 1926 (44 Stat. 912); sec. 15, act of May 29, 1930 (46 Stat. 478); 5 U. S. C. 727.

694. Retirement act; Board of Actuaries.-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 their judgment may be deemed necessary to protect the public interest and maintain the system upon a sound financial basis, and they shall make a valuation of the "civil-service retirement and disability fund" at intervals of five years, or oftener, if deemed necessary by the Commissioner of Pensions; they shall also prepare such tables as may be required by the Commissioner of Pensions for the purpose of computing annuities under this Act. 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. Sec. 16, act of July 3, 1926 (44 Stat. 912); sec. 16, act of May 29, 1930 (46 Stat. 478); 5 U. S. C. 731.

Sec. 1, independent offices appropriation act of February 2, 1935 (49 Stat. 8), authorizes the Civil Service Commission to expend not to exceed $2,100 during the fiscal year 1936 for actuarial services pertaining to the civil service and Canal Zone retirement and disability funds. Similar provisions have appeared in subsequent appropriation acts. 695. Retirement act; administration. 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. The Commissioner of Pensions shall make a detailed comparative report annually showing all receipts and disbursements on account of annuities, refunds, and allowances, together with the total number of persons receiving annuities and the total amounts paid them, and he shall transmit to Congress,

through the Secretary of the Interior, the reports and recommendations of the Board of Actuaries.

The Secretary of the Interior shall submit annually to the Bureau of the Budget estimates of the appropriations necessary to finance the retirement and disability fund and to continue this Act in full force and effect. Sec. 17, act of July 3, 1926 (44 Stat. 913); sec. 17, act of May 29, 1930 (46 Stat. 478); 5 U. S. C. 709, 728.

The administration of the Civil Service Retirement Act, transferred to the Veterans' Administration under 1059a, post, was transferred to the Civil Service Commission by Executive Order No. 6670, April 7, 1934, as amended by Executive Order No. 6731, June 5, 1934, under authority of Title IV, Part II, act of June 30, 1932 (47 Stat. 413) as amended.

696. Retirement funds; assignment or attachment prohibited. 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. Sec. 18, act of July 3, 1926 (44 Stat. 913); sec. 18, act of May 29, 1930 (46 Stat. 479); 5 U. S. C. 729.

697. Rewards for suggestions of improved processes or economy. That the Secretary of War is hereby authorized to offer periodically at such of the establishments of the Ordnance Department as he may select a cash reward for the suggestion, or series of suggestions, for an improvement or economy in manufacturing processes or plant, submitted within the period by one or more employees of the establishment which shall be deemed the most valuable of those submitted and adopted for use: Provided, That to obtain this reward the winning suggestion must be one that will clearly effect a material economy in production or increase efficiency or enhance the quality of the product in comparison with its cost and in the opinion of the Secretary shall be so worthy as to entitle the employee making the same to receive the reward: Provided further, That the sums awarded to employees in accordance with this Act shall be paid them in addition to their usual compensation and shall constitute part of the general or shop expense of the establishment: Provided further, That the total amount paid under the provisions of this Act shall not exceed one thousand dollars for any one month: And provided further, That no employee shall be paid a reward under this Act until he has properly executed an agreement to the effect that the use by the United States of the suggestion, or series of suggestions, made by him shall not form the basis of a further claim of any nature upon the United States by him, his heirs, or assigns, and that application for patent has not been made for the invention. Act of July 17, 1912 (37 Stat. 193); 50 U. S. C. 58.

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698. For text of this section as published in the 1929 Edition, see 1607, post. 699. Voluntary service.Nor shall any department or any officer of the Government accept voluntary service for the Government or employ personal service in excess of that authorized by law, except in cases of sudden emergency involving the loss of human life or the destruction of property.

R. S. 3679; sec. 3, act of Feb. 27, 1906 (34 Stat. 48); 31 U. S. C. 665.

A similar provision is found in the urgent deficiency appropriation act of May 1, 1884 (23 Stat. 17).

700. Witnesses before committees of Congress.-Every person who having been summoned as a witness by the authority of either House of Congress to give testimony or to produce papers upon any matter under inquiry before either House, or any joint committee established by a joint or concurrent resolution of the two Houses of Congress, or any committee of either House of Congress,