as a credit to the retirement fund without any credit to the employee's individual account. An employee who is on the rolls in a pay status for one-half month or less shall receive credit in his individual account for the full amount of retirement deductions taken for such period.

§ 53.106 Reemployed annuitants. When an annuitant receiving annuity under any provision of the Retirement Act is reemployed, the Commission shall be immediately informed of that fact, and advised as to the date of reemployment and whether such reemployment is of a permanent or temporary nature. This is imperative in order to prevent concurrent payment of annuity and salary.

§ 53.107 Reports of retirement fund transactions-(a) Reports to be submitted. In addition to the individual retirement account, each department or independent agency shall maintain a register of employees appointed thereunder, a register of employees separated therefrom, and a register of adjustments, and shall submit annually a summary of retirement fund transactions. The annual summary of retirement fund transactions, Form 2807-2, shall be submitted as soon as possible after the close of each fiscal year, accompanied by a register of adjustments on Form 2807-1, where adjustments of prior reports are necessary. Such records shall be made in duplicate, the original forwarded to the Commission and the carbon retained by the office maintaining the record. In the event a department finds it expedient to maintain its individual retirement accounts in the various bureaus and submit its reports accordingly, the procedures prescribed shall apply to such bureaus in the same manner as to a department or independent agency.

(b) Register of appointments. A register of appointments shall be maintained on Form 2807, or acceptable substitute, recording the unrefunded deductions to the credit of the employees appointed during the year as shown on any individual retirement accounts (Form 2806) received for such employee. (If no individual retirement account is received, no entry on the appointment register is necessary.) If Form 2807 is used no entry shall be made in columns 2, 3, and 4. The name of the employee shall be entered in column 1 and the amount of unrefunded retirement deductions to his

credit at the time of appointment as shown by his individual account shall be entered in column 5. The total of all entries in column 5 for the fiscal year shall be used to support the entry "Register of Appointments" on the annual summary and must be in agreement therewith.

(c) Register of separations. A register shall be maintained on Form 2807, or acceptable substitute, of all separations during the fiscal year. When Form 2807 is used as a register of separations the name of the employee separated shall be entered in column 1 and the total deductions remaining to the credit of the employee at separation as shown by the last entry on his individual account shall be entered in column 5. (Columns 2, 3, and 4 may be used by those offices which desire to so record the information regarding current deductions.) In no case shall tontine be included in the net credit of the employee, either on his retirement account or on the register of separations, regardless of the cause of separation. The final total of column 5 shall be used to support the entry "Register of separations" on the annual summary, and must be in agreement therewith. In case of transfer from one bureau to another in the same department no entry shall be made on either the appointment or separation register unless the accounts are maintained and reports submitted by bureaus as specified in paragraph (a) of this section.

(d) Register of adjustments. The register of adjustments (Form 2807-1) is prescribed to provide an adequate medium for posting in the control accounts any corrections of prior reports. Any correction of individual retirement accounts necessitating a change in any of the amounts shown on a previous annual summary of retirement fund transactions shall be noted on the register of adjustments so as to show the name of the employee concerned, any increase or decrease in gross deductions or tontine and the resulting net increase or decrease in the net balance of the employee's individual account in each case, together with a citation as to the fiscal year in which the error occurred. The character of the error in each case shall be recorded in the explanation column of the register in sufficient detail to afford a basis for the proper bookkeeping entry. When an adjustment of the account is occasioned by an adjustment of the

retirement fund, the explanation shall include citations of the appropriation symbols of the accounts affected, and the dates and numbers of vouchers or other documents used as posting media, It is preferable that increases be shown in black and decreases in red, but any other distinct method will be acceptable. The final result of the net deductions column shall be used to support the fourth item on the annual summary, and shall be in agreement therewith.

(e) Annual summary of retirement fund transactions. The annual summary of retirement fund transactions (Form 2807-2) has been prescribed to provide a uniform method of summarizing retirement fund transactions. For the present the first and second columns will be used only in reporting items 6, 7, and 8.

The summary for each fiscal year shall bring forward in the third column the balance at the close of the preceding fiscal year as shown by the last entry on the summary submitted for that year. Item 2, "Register of appointments" shall be posted from the register of appointments and shall agree therewith. The total adjustments of prior fiscal year reports shall be posted in the third column under item 4. Under item 6 "Current fiscal year payroll deductions" there shall be entered in the first column all deductions taken on the payroll during the fiscal year for credit to the retirement fund; the amount of tontine included therein shall be entered in column 2, and the net credit extended to column 3. Under item 7 there shall be entered in the first column the sum of all amounts submitted by employees for the purchase of service credit, including items posted to the employees' individual retirement accounts from information furnished by the Commission on Form 3055, for the current year. The amount of tontine included therein shall be entered in the second column and the net amount extended to the third column. Items 6 and 7 shall be totaled for all three columns under item 8. These totals shall agree with the total current year's postings to the individual retirement accounts of employees, including the accounts of employees separated during the year.

Any adjustment for the current fiscal year which cannot be properly taken care of under some fiscal year item may be entered under item 9, in which event a separate adjustment register shall be

submitted to cover this item. The total as shown on the register of separations shall be entered under item 12 as a deduction from the total to be accounted for, and the balance brought down under item 13, which item shall agree with the aggregate of balances on the individual accounts of employees still on the rolls at the close of the fiscal year for which the report is submitted.

§ 53.108 Set-off on account of indebtedness to the Government. It is incumbent upon the Civil Service Commission when adjudicating claims for retirement credits due former employees to make proper set-offs from the total amounts due, for repayment to the appropriation or appropriations involved, of any unliquidated amounts chargeable to such employees on account of advance payments for unearned annual or sick leave, overpayment of salary, or other indebtedness to the Government.

In filing claims for reimbursement on account of overdrawn leave the agencies concerned shall execute Form 3037 (Statement of Account of Overdrawn Annual and/or Sick Leave) in duplicate. In all cases involving withholding tax the amount of tax deductions included in the overpayment shall be entered directly below the space provided for gross indebtedness so that the form will show the total amount due the appropriation, the amount of tax deductions, and the balance for recovery from the retirement fund. The report shall show whether the amount of tax deductions has been taken up as Internal Revenue Collections or is being held in a special deposit account, in which case the special deposit account shall be fully identified. In each case involving withholding tax one copy of Form 3037 shall be forwarded to the General Accounting Office, Claims Division, at the same time the claim against the retirement fund is forwarded to the Commission. In all other cases both copies shall be forwarded to the Commission. Claims forwarded to the Commission should be attached to Form 2806 whenever possible.

Claims for set-off on account of indebtedness to the Government for reasons other than overdrawn leave shall be submitted to the Commission in letter form, in duplicate, setting forth all pertinent facts in the case, including the amount to be recovered and the symbol and title of the appropriation to be credited.

Part

01

3

01.3 Settlement of indebtedness.

01.4 Investigations and findings.

01.5

Delegation of authority.

01.6 Forms and records.

01.7 Departmental Review Committee. 01.8 Penalties.

01.9 Indebtedness referred to Secretary of the Treasury or the Attorney General. 01.10 Scope of the act.

AUTHORITY: §§ 01.1 to 01.10, inclusive, issued under 58 Stat. 836; 12 U.S.C. 1150-1150c.

SOURCE: §§01.1 to 01.10, inclusive, contained in Regulations, Secretary of Agriculture and War Food Administrator, Jan. 20, 1945, 10 F.R. 807.

§ 01.1 Purposes of the act and regulations. The principal purposes of the act and of the regulations in this part are to provide means of: (a) Settling, by compromise, adjustment or cancellation, relatively small debts long past due and owing to the Government arising from loans or payments made under farm programs administered by the Department; (b) recovering by the Department of substantial sums which are found uncollectible when the indebtednesses are treated as full obligations, and which otherwise would probably never be collected; (c) clearing the accounts of balances so small as not to warrant continued efforts of collection; and (d) the clearing of the accounts of the records of indebtedness made uncollectible by reason of the death or disappearance of the debtors.

The existence of the act will neither serve as grounds for any relaxation in the general collection policy of the De

partment nor should it serve as grounds for any lessening of the efforts of farmers to pay their indebtedness.

§ 01.2 Definitions. (a) "Department" means Department of Agriculture including the War Food Administration.

(b) "Indebtedness" with respect to any person, means his debt to the Government under each of the acts and programs listed in § 01.10.

(c) "Compromise" means final liquidation of the indebtedness through the immediate payment of a portion thereof, and acceptance by the United States of such payment in full satisfaction of the indebtedness.

(d) "Adjustment" means the scaling down of the amount of the indebtedness including interest, conditioned upon the payment of the adjusted amount at some specified future time or times; such adjustment is not to be considered as effective as a settlement under this act until the provisions of the adjustment arrangement have been carried out.

(e) "Cancellation" means the complete discharge, without payment, of the indebtedness and the debtor.

§ 01.3 Settlement of indebtedness. (a) Indebtedness will be compromised, adjusted, or cancelled, upon application by the debtor, and upon the making of all the following findings:

(1) That said indebtedness has been due and payable for five years or more;

(2) That the debtor is unable to pay said indebtedness in full and has no reasonable prospect of being able to do so; officers of the Department shall not make such findings on the basis of mere un