their salaries and to their credit in the retirement fund; determines the legality of such claims and the amount payable; develops and appraises the evidence, documents, and records required to substantiate the actions taken.

(5) Correspondence Section. This section conducts correspondence with present and former Government employees or their representatives with respect to refund rights and claims. It answers correspondence of a general nature not relating to the processing of annuity, service credit, voluntary contributions, or death claims.

(6) Fiscal Section. This section prepares schedules and vouchers covering payments on all retirement claims for use by the Disbursing Office of the Treasury in the preparation of checks and for use by the General Accounting Office in the audit of claim payments. It certifies all disbursements made from the retirement funds; maintains the administrative accounting controls for the retirement and disability funds; prepares the periodic financial statements for use by the officials of the Division, the Board of Actuaries, and the Commission in the administration of the Retirement Acts and for submission to the Congress in the Annual Reports and Budget Estimates; receives and records cash, check, or money order remittances of voluntary deposits and issues receipts thereon; deposits remittances to the appropriate accounts in the Treasury of the United States; accepts and records payments from employees covering the purchase of service credits, or redeposits of amounts withdrawn or overpayments, and issues receipts thereon; deposits remittances in the Treasury of the United States to the credit of the proper retirement fund; maintains the individual annuity award accounts; maintains the individual retirement accounts (Form 2806) on all separated employees.

(7) Agency Accounting Section. This section conducts studies of the procedures used and practices followed by agencies in the maintenance of individual retirement accounts (Form 2806) and submits reports and recommendations for improvements whenever deemed necessary. It makes periodical inspections to the extent necessary to determine whether the retirement records in the agencies are maintained currently and in accordance with laws, regulations, and instructions; and makes periodical reports to the Commission on the status of retirement records in each agency. It develops training material for use by agencies in training new employees on the maintenance of individual retirement accounts and in the preparation of retirement applications and forms; maintains liaison with agencies. giving advice and instructions to officials and employees in the agencies who are assigned to and are responsible for the agency's retirement work, and advice on the procedures for the submission of applications, claims, account records, reports, and forms to the Commission; and renders technical and legal advice with

respect to the Retirement Act and regulations.

(8) Accounting Systems and Reports Analysis Section. This section conducts studies of the over-all control accounts maintained by the Division in connection with the administration of the retirement system to determine their sufficiency; recommends such changes and improvements in the retirement accounting system and practices as are considered necessary to protect the employees covered by the system, the Government, and the Commissioners who serve as trustees of the retirement funds; and directs the installation of such changes. It studies the financial statements and reports now prepared to determine the adequacy of the accounts and reports and the effectiveness of the protection thereby afforded to the Commission and to present and prospective annuitants. It secures clearance with the General Accounting Office of all suggested new systems or proposed revisions of existing accounting methods and procedures and conducts conferences with representatives of agencies, the General Accounting Office, and other interested groups for the purpose of assisting in the installation of retirement accounting systems and the development of improvements in the procedures followed in the agencies and in the Division.

(9) Congressional Services Section. This section furnishes information to Members of Congress with respect to rights and benefits of their constituents on telephonic request. It furnishes data by telephone on the status of individual claims to Members of Congress in those cases where inquiry has been received by them from claimants for retirement benefits. It furnishes former and present employees with information regarding their rights and benefits, status of their claims, and procedures or instructions to be followed in presenting their claims.

(10) Office of the Legal Adviser. This office serves in an advisory capacity to the staff officials of the Division with respect to the analysis of legal aspects of proposed changes in retirement laws and regulations and makes specific recommendations with respect thereto. It analyzes retirement and related laws to interpret the intent of Congress and decisions of the Comptroller General and of the Attorney General for the purpose of advising the Commission and its staff officials, employing agencies and their officers and employees, and representatives of employee organizations. It renders opinions and decisions on questions requiring the application of provisions of the retirement and related laws and administrative rulings; prepares cases for submission to the Board of Appeals and Review, to the Attorney General, or to the Comptroller General; collaborates with the Department of Justice in the preparation and trial of suits arising under the retirement laws; prepares drafts of bills and reports of the Commission on proposed legislation concerning retirement, for the use in consideration of Congressional Committees;

drafts rules and regulations with respect to the administration of the retirement laws, for promulgation by the Commission.

(11) Office of the Actuary. This office conducts actuarial studies, periodic valuations of retirement funds, and longevity investigations of annuitants. It conducts studies to determine relation of service and contributions to benefits at the different ages of retirement; confers with the Board of Actuaries for the purpose of presenting to the Board members new developments, proposals, reports and data, and for the purpose of securing their advice and consultation with respect to such reports and proposals; makes actuarial studies and recommends improvements and simplification in retirement systems and policies; prepares the annual retirement reports; prepares special interest tables, and similar types of aids to facilitate the speedy and economical performance of retirement activities.

(12) Procedures and Control Section. This section conducts surveys of and studies existing procedures, regulations, policies, and methods followed in the Division, and prepares process charts and reports analyzing them and recommending changes designed to improve operations and reduce costs. It assembles and analyzes management control data on the operations of the Division, and recommends ways or methods of correcting or adjusting procedures to eliminate or correct bad situations before they become a problem; studies and recommends changes in policies, regulations, or laws to conform to new developments or requirements and to changing patterns or circumstances; establishes controls which will indicate when corrective actions are needed with respect to receipts, productions, backlogs, personnel assignments, delays, or unsatisfactory conditions generally; installs changes as approved by the Division officials or the Commission and follows through to assure compliance with authorized instructions, policies, laws, regulations, and procedures.

(13) Personnel Section. This section develops programs and provides the leadership to get them into operation, for full utilization of personnel; administration of the efficiency-rating system; selection, placement and promotion of personnel; handling of the work assignment program; handling of employee relations and employee counseling; handling of reductions in force programs; administration of leave regulations and instructions. It prepares personnel forms and supporting documents for submission to the Director of Personnel to effect personnel appointments, changes, and separations; prepares job descriptions and recommends grade allocations for positions in the Division and presents necessary explanatory material and information as required to justify recommendations; initiates and conducts conferences with operating officials to explain new programs and the methods to be followed in putting them into effect.

(14) Miscellaneous Services Section. This section makes a continuous study of forms and form letters in use in the Division with a view to the elimination of obsolete and unnecessary forms, and the simplification and consolidation of remaining forms and form letters. It procures supplies and equipment for the Division, and prepares the periodical inventory reports; studies space assignments, requirements, and utilization to insure the most effective allocation; reports on work conditions, sufficiency of lighting, compliance with fire regulations, and acceptability of appearance of the building occupied by the Division.

(15) Budget and Reports Section. This section compiles the statistical statements, trend charts, and justifications for the Division's annual and supplemental budget estimates. It prepares the summaries and analyses of work reports, calling attention to increases or decreases in work receipts, work performance, work on hand, and unit costs and to repeated instances of non-compliance with established quantity work standards. It recommends revision of work report forms when it is found that they do not satisfactorily provide the work control data essential for management purposes. It develops and maintains cost data and cost records on all significant activities of the Division.

(16) Mail and Files Section. This section receives and distributes all incoming mail. It dispatches outgoing mail. It maintains the General Index Records and the closed files on all annuity claims, death claims, refund claims, and service credit applications adjudicated, and furnishes records and information as requested from these files. It furnishes the general messenger service for the Division. [Paragraph (a) amended June 10, 1947, 12 F.R. 3795]

[Preceding paragraph, in small type, superseded by following paragraph during period covered by this Supplement]

§ 01.12 Retirement Division-(a) Organization. The Retirement Division is charged with responsibility for interpreting and administering the Civil Service Retirement Act of May 22, 1920 (41 Stat. 614), as amended (5 U. S. C. 691738), the Canal Zone Retirement Act of March 2, 1931 (46 Stat. 1471), as amended (48 U. S. C. 1371), and the Alaska Railroad Retirement Act of June 29, 1936 (49 Stat. 2017), as amended (5 U. S. C. 745). Jurisdiction over the administration of the act of May 29, 1944 (58 Stat. 257), is also vested in the division. This act provides for the payment of annuities to United States citizen employees (or to their unremarried widows under prescribed conditions) who served on the Isthmus of Panama during the construction period of the Panama Canal from May 4, 1904, to March 31, 1914, inclusive,

who were not included in the recognition and the benefits accorded by the act of March 4, 1915 (38 Stat. 1190).

CROSS REFERENCE: For regulations relative to retirement, see Part 29 of this chapter. The operating sections of the division are as follows:

(1) Claims Section. This section adjudicates claims for annuities under the Civil Service Retirement Act, the Canal Zone Retirement Act, and the Alaska Railroad Retirement Act, on age, optional and disability retirements, and discontinued service; determines whether legal and medical title has been established; determines the amount payable and the date payments are to begin; and develops and appraises all evidence, documents, and records required to substantiate the actions taken. It adjudicates claims for gratuity benefits under the Panama Canal Construction Annuity Act. It advises employees and prospective annuitants on their annuitable rights and obligations, maintains a record of all annuitants retired on disability, and orders the annual medical examinations as required.

(2) Service Credit Section. This section examines service credit applications and makes formal decisions with respect to the service credits to which present or former employees are entitled under the retirement laws and the amounts which must be paid in order to obtain title to annuity or to secure full annuity for such periods of service. It answers correspondence relating to the processing of service credit claims and voluntary contributions. It adjudicates claims filed by the beneficiaries, legal representatives, or next of kin of deceased employees or annuitants for the accrued annuity, the unexpended balance, or the accumulated deductions in the retirement funds. It adjudicates claims submitted in behalf of former employees who are incompetent, for accumulated deductions to their credit in the retirement funds. It examines the designation of beneficiary forms for completeness and compliance with regulations and instructions. It conducts correspondence with respect to death claims and designation of beneficiary forms and maintains the files of designation of beneficiary forms. It prepares certifications of information contained in designation of beneficiary forms for use by the General Accounting Office in the administration of the act of December 21, 1944 (58 Stat. 845).

728472-48-SUPP. X-BK. 1 -15

(3) Refund Section. This section adjudicates refund claims filed by former employees for the refund of deductions made from their salaries and to their credit in the retirement fund; determines the legality of such claims and the amount payable; develops and appraises the evidence, documents, and records required to substantiate the actions taken. This

(4) Correspondence Section. section conducts correspondence with present and former Government employees or their representatives with respect to refund rights and claims. It answers correspondence of a general nature not relating to the processing of annuity, service credit, voluntary contributions, or death claims.

(5) Fiscal Section. This section prepares schedules and vouchers covering payments on all retirement claims for use by the Disbursing Office of the Treasury in the preparation of checks and for use by the General Accounting Office in the audit of claim payments. It certifies all disbursements made from the retirement funds; maintains the administrative accounting controls for the retirement and disability funds; prepares the periodic filnancial statements for use by the offiIcials of the division, the Board of Actuaries, and the Commission in the administration of the retirement acts and for submission to the Congress in the Annual Reports and Budget Estimates; receives and records cash, check, or money order remittances of voluntary deposits and issues receipts thereon; deposits remittances to the appropriate accounts in the Treasury of the United States; accepts and records payments from employees covering the purchase of service credits, or redeposits of amounts withdrawn or overpayments, and issues receipts thereon; deposits remittances in the Treasury of the United States to the credit of the proper retirement fund; maintains the individual annuity award accounts; maintains the individual retirement accounts (Form 2806) on all separated employees.

(6) Agency Accounting Section. This section conducts studies of the procedures used and practices followed by agencies in the maintenance of individual retirement accounts (Form 2806) and submits reports and recommendations for improvements whenever deemed necessary. It makes periodical inspections to the extent necessary to determine whether the retirement records in the agencies are

Page 215

maintained currently and in accordance with laws, regulations, and instructions; and makes periodical reports to the Commission on the status of retirtment records in each agency. It develops training material for use by agencies in training new employees on the maintenance of individual retirement accounts and in the preparation of retirement applications and forms; maintains liaison with agencies, giving advice and instructions to officials and employees in the agencies who are assigned to and are responsible for the agency's retirement work, and advice on the procedures for the submission of applications, claims, account records, reports, and forms to the Commission; and renders technical and legal advice with respect to the Retirement Act and regulations.

(7) Accounting Systems and Reports Analysis Section. This section conducts studies of the over-all control accounts maintained by the division in connection with the administration of the retirement system to determine their sufficiency; recommends such changes and improvements in the retirement accounting system and practices as are considered necessary to protect the employees covered by the system, the Government, and the Commissioners who serve as trustees of the retirement funds; and directs the installation of such changes. It studies the financial statements and reports now prepared to determine the adequacy of the accounts and reports and the effectiveness of the protection thereby afforded to the Commission and to present and prospective annuitants. It secures clearance with the General Accounting Office of all suggested new systems or proposed revisions of existing accounting methods and procedures and conducts conferences with representatives of agencies, the General Accounting Office, and other interested groups for the purpose of assisting in the installation of retirement accounting systems and the development of improvements in the procedures followed in the agencies and in the division.

(8) Congressional Services Section. This section furnishes information to Members of Congress with respect to rights and benefits of their constituents on telephonic request. It furnishes data by telephone on the status of individual claims to Members of Congress in those cases where inquiry has been received by them from claimants for retirement

benefits. It furnishes former and present employees with information regarding their rights and benefits, status of their claims, and procedures or instructions to be followed in presenting their claims.

(9) Office of the Legal Adviser. This office serves in an advisory capacity to the staff officials of the division with respect to the analysis of legal aspects of proposed changes in retirement laws and regulations and makes specific recommendations with respect thereto. It analyses retirement and related laws to interpret the intent of Congress and decisions of the Comptroller General and of the Attorney General for the purpose of advising the Commission and its staff officials, employing agencies and their officers and employees, and representatives of employee organizations. It renders opinions and decisions on questions requiring the application of provisions of the retirement and related laws and administrative rulings; prepares cases for submission to the Board of Appeals and Review, to the Attorney General, or to the Comptroller General; collaborates with the Department of Justice in the preparation and trial of suits arising under the retirement laws; prepares drafts of bills and reports of the Commission on proposed legislation concerning retirement, for the use in consideration of Congressional Committees; drafts rules and regulations with respect to the administration of the retirement laws, for promulgation by the Commission.

(10) Office of the Actuary. This office conducts actuarial studies, periodic valuations of retirement funds, and longevity investigations of annuitants. It conducts studies to determine relation of service and contributions to benefits at the different ages of retirement; confers with the Board of Actuaries for the purpose of presenting to the Board members new developments, proposals, reports, and data, and for the purpose of securing their advice and consultation with respect to such reports and proposals; makes actuarial studies and recommends improvements and simplification in retirement systems and policies; prepares the annual retirement reports; prepares special interest tables, and similar types of aids to facilitate the speedy and economical proformance of retirement activities.

(11) Procedures and Control Section. This section conducts surveys of and studies existing procedures, regulations,

policies, and methods followed in the division, and prepares process charts and reports analyzing them and recommending changes designed to improve operations and reduce costs. It assembles and analyzes management control data on the operations of the division, and recommends ways or methods of correcting or adjusting procedures to eliminate or correct bad situations before they become a problem; studies and recommends changes in policies, regulations, or laws to conform to new developments or requirements and to changing patterns or circumstances; establishes controls which will indicate when corrective actions are needed with respect to receipts, productions, backlogs, personnel assignments, delays, or unsatisfactory conditions generally; installs changes as approved by the division officials or the Commission and follows through to assure compliance with authorized instructions, policies, laws, regulations, and procedures.

(12) Personnel Section. This section develops programs and provides the leadership to get them into operation, for full utilization of personnel; administration of the efficiency-rating system; selection, placement and promotion of personnel; handling of the work assignment program; handling of employee relations and employee counseling; handling of reductions in force programs; administration of leave regulations and instructions. It prepares personnel forms and supporting documents for submission to the Director of Personnel to effect personnel appointments, changes, and separations; prepares job descriptions and recommends grade allocations for positions in the division and presents necessary explanatory material and information as required to justify recommendations; initiates and conducts conferences with operating officials to explain new programs and the methods to be followed in putting them into effect.

(13) Miscellaneous Services Section. This section makes a continuous study of forms and form letters in use in the division with a view to the elimination of obsolete and unnecessary forms, and the simplification and consolidation of remaining forms and form letters. It procures supplies and equipment for the division, and prepares the periodical inventory reports; studies space assignments, requirements, and utilization to insure the most effective allocation; reports on work conditions, sufficiency of

lighting, compliance with fire regulations, and acceptability of appearance of the building occupied by the division.

(14) Budget and Reports Section. This section compiles the statistical statements, trend charts, and justifications for the division's annual and supplemental budget estimates. It prepares the summaries and analyses of work reports, calling attention to increases or decreases in work receipts, work performance, work on hand, and unit costs and to repeated instances of non-compliance with established quantity work standards. It recommends revision of work report forms when it is found that they do not satisfactorily provide the work control data essential for management purposes. It develops and maintains cost data and cost records on all significant activities of the division.

(15) Mail and Files Section. This section receives and distributes all incoming mail. It dispatches outgoing mail. It maintains the General Index Records and the closed filed on all annuity claims, death claims, refund claims, and service credit applications adjudicated, and furnishes records and information as requested from these files. It furnishes the general messenger service for the division. [Paragraph (a) amended Dec. 26, 1947, 12 F.R. 8803]

(b) Delegation of authority. The Commission with the concurrence of the Comptroller General of the United States (letters B-45488, dated November 11, 1944 and March 24, 1945) has approved a temporary plan for the duration of the emergency, unless terminated prior thereto, whereby local disbursing officers of the War Department, under certain conditions, are authorized to issue checks in payment of amounts due as refunds of civil service retirement deductions to former civilian employees of the War Department. The responsibility making refunds of retirement deductions so authorized is lodged with local certifying officers of civilian pay rolls and applies only when the following conditions exist:

for

(1) The employee must have received an original appointment in the War Department on July 1, 1942, or subsequent thereto.

(2) The employee must have been officially separated on July 1, 1945 or subsequent thereto.

(3) The employee must have had no prior Federal or military service other