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35,868

3. Inspections.-The Commission inspects agency personnel operations to insure compliance with civil service laws and regulations and to encourage improvement in 3,174 personnel personnel practices. The Commission also conducts classification reviews to insure compliance with classification standards.

1969

610

1. Recruiting and examining.-Most appointments in the competitive civil service are made under the open competitive merit system through examinations held by the offices of the Commission, interagency boards, and agency boards of examiners operating under the supervision of the Commission. In order to insure that Federal agencies are staffed with well-qualified people and that information about Federal employment opportunities is made known to all citizens, the Commission supplies information to and carries out a program of visits to colleges, junior colleges, high schools, business schools, veterans' organizations, military separation centers, and other likely sources of manpower supply.

The interagency board network was established at the President's direction and has made possible the modernization of the recruiting and examining system. There is at least one interagency board in each State; in the larger States with a high concentration of Federal employment there are two or more. The interagency boards announce and rate examinations and provide the public with onthe-spot comprehensive information and advisory service about Federal job opportunities and examinations. A higher percentage of positions under the merit system will be covered by civil service examinations when the interagency board system becomes fully operational. Previously it was necessary to authorize agencies to recruit for many positions without competitive examination of the candidates.

All agency boards of examiners except those of the Post Office will be merged into the new interagency board system by June 30, 1968. The new system will then provide full examination coverage for all except post office positions.

Workloads in the new system are reflected in the following table:

Applications processed by:
Commission offices...

Interagency boards..
Agency boards..

Total.......

PRODUCTION COUNT

1967 actual 1968 estimate 1969 estimate 99,867 66,760 66.800 1,210,676 1,775,460 2,168,000 1,638,040 930,500 790,500 2,948,583 2,772,720 3,025,300

2. Investigation of character and fitness for employment.The Commission conducts most of the investigations required for security determinations of persons being employed in sensitive positions, and fitness investigations of all persons entering nonsensitive positions. The Commission also conducts other investigations connected with appeals and the merit system. Included are investigations of U.S. citizens for employment by international organizations required by Executive Order 10422 as amended.

4. Federal executive manpower.-The Commission will expand its program to develop and use the talent and competency existing within and outside the Government to help staff agency executive positions throughout the Federal service within full merit principles. It will meet and work with agencies to develop the most effective top-level position structure related to present and future agency missions.

5. Developing policies and standards.-The Commission develops programs, devises tests, issues standards and regulations, and proposes legislation to improve the Federal personnel system for both competitive and nonstandards and wage policies to insure that equitable and competitive positions. It will develop common job valid wages are paid to all wage-board employees.

6. Appellate functions.-These consist of hearing and taking action on appeals, reviewing and processing of discrimination complaints under authority of Executive Order 11246, and providing advice to agencies and individuals regarding rights of appeal.

7. Training.-The Commission makes overall and individual agency appraisals of training operations, and coordinates interagency training programs to achieve full utilization and to avoid duplication and, where it is more economical to do so, conducts training programs for agency personnel on a reimbursable basis. Also, it promotes and coordinates the incentive awards program authorized by 5 U.S.C. 4501-4506.

9. Administration of the Voting Rights Act of 1965.—The Commission provides examiners to prepare and maintain lists of eligible voters and to observe election procedures in States or other political subdivisions designated by the Attorney General. The Commission receives complaints, hears and determines challenges, and assists in the defense prescribed by the act. of challenge cases filed in U.S. circuit courts of appeals as

10. Enforcement of restrictions on political activity.— Under chapter 15 and subchapter III of chapter 73 of title 5, U.S.C., and the Civil Service Rules, the Civil Service Commission administers and enforces political activity restrictions as applied to Federal civil service employees, as well as to officers and employees of State or local agencies whose principal employment is in connection with a federally financed activity.

11. Administration of the retirement and insurance programs. The Commission administers retirement, group life insurance, and health benefits programs for Federal employees. It is required to adjudicate annuity, death, benefit, refund, and deposit claims; make payments to annuitants and other claimants; collect and account for moneys received; maintain control accounts and systems for the funds; negotiate with private carriers to provide the insurance and health benefits authorized; determine eligibility in certain cases; audit the records of insurance underwriters; and maintain the trust funds established for financing the programs.

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separate transmittal.

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Expenditures..

Expenditures are distributed as follows: 01 Out of current authorizations...

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This appropriation covers (1) the Government's share of the cost of health insurance for certain annuitants as defined in sections 8901 and 8906 of title 5, United States Code; (2) the Government's share of the cost of health insurance for employees who were retired when the Federal Employees Health Benefits Law became effective, as defined in the Retired Federal Employees Health Benefits Act of 1960 (Public Law 86-724); and (3) the Government's contribution for payment of administrative expenses of the Civil Service Commission in administration of the Retired Federal Employees Health Benefits Act of

1960.

The use of these funds is reflected in the schedules for the Employees health benefits fund and the Retired employees health benefits fund.

Object Classification (in thousands of dollars)

40 New obligational authority (proposed supplemental appropriation) –.

78

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This fund finances, on a reimbursable basis, full field security investigations performed at the request of other departments and agencies of the Government (5 U.S.C. 1304(e)).

Budget program.-Because work on some investigations will be started in one year and completed in another, work-in-process is recognized as an asset of the fund. Agency estimates of investigations to be requested in 1968 and 1969 as compared to 1967 experience, are presented below. In addition, the table relates estimated workload receipts to estimates of production, average positions, and unit costs.

grams.

2,448

4,031

5,710

3. Miscellaneous services to other ac

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11.3

11.5

Positions other than permanent. Other personnel compensation.....

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2,362

3,060

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294

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This fund is used to pay annuities to retired employees or their survivors, to make refunds to former employees who have left the service, and to pay claims for employees who have died before retirement or before their annuities are paid in full (subch. III of ch. 83 of title 5, U.S.C.), and to pay for expenses incurred by the Commission in the administration of that subchapter. It is estimated that as of June 30, 1969, there will be 917,796 persons on the annuity roll, compared with 872,165 as of June 30, 1968 and 829,848 as of June 30, 1967. The estimated unfunded liability of the Civil Service Retirement System as of June 30, 1967, is $48.1 billion.

The status of the fund is as follows (in thousands of dollars):

U.S. securities brought forward (par).. 16, 603, 062
Cash (unexpended balance)..

Balance of fund brought forward. 16,749, 347

17,607, 571

1969 estimate 18,890,475 192,752

1967 actual

1968 estimate

146, 285

156,893

17,764, 464

19,083, 227

Average GS grade..

7.0

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Average GS salary..

$7,963

$8,473

$8,454

Payment from other funds:

Federal agencies...

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D.C. Government.

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