ACCOUNTING PROCEDURE FOR THE HANDLING OF WITHHOLDINGS AND CONTRIBUTIONS MADE FOR FEDERAL EMPLOYEES' GROUP LIFE INSURANCE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00065A000200020006-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 11
• Document Creation Date: December 12, 2016
• Document Release Date: June 7, 2002
• Sequence Number: 6
• Publication Date: September 14, 1954
• Content Type: MF

-
Approved
kEM. s C
!NT-
lit 1
ef$, Finance Division
p cosi Divis $011
FROM g Deputy Cumptsoller
AT-00111A002006rY
Is
SUBJEUT -g Accounting Procedure for the Xona15tng a2 Withholdings
me, C touti We for Fedp,ral Employees? Group
Life Xsasurance
Cgril
* t
REMMERS 8 1. ?u1ic lav 54 8 83rd c rg or. cog p 250-61 see 102,
-2. Fedezsl &Oster 'cb,ted 27-A
3 Civil Sonic C @Mtn iOrk Feder 1 Employees woo
Life Insuranoep PreilmtensPy-Draft JfInstructions
for Withho1ding9 Reporting agrl Depositing Emplwce
Deducti%is and Agency Contributions
1. NEP
The purpose of this instruction
procedures gumming thi it iing of 'ice
Group Life Insurance from the c nsation
seque t to 28 August 1934 and the premium payme
the Azency from Ate afxrcpristjoms.
to
et forth autkity and
ums for Federal a,Toloyee
F eral 0,,.1oyees earned
ts contributed by
2. AUTHORITY
The Federal vfo?loyees? Group Lift Insurance Act 1954 (PUblio LEH
5948, 83rd Congres 02nd 3e) extends vith certain enceptionso the
ivilege of fcrchas roup life insurance to officer mni ca,4loyees
of the .Federal and the District cof Colli is Governments.
3
oofil
LX
FROM C
? '70
Employe s the talovilhe
under 'We insurance plan:
pups 6101111 be encluded fr
(.1:7
C =Wag
o N -citizen employees wh e permanent duty station is located
outside a state or the United States or the istrict of Col
b.. C sioned officers and enlisted personnel (#.. active duty in
or vith the Army's, Navy., Air Ftrce, Karina Corys9 or Coast Guard
t Stetea0
( V 1 1 W j
loyee
erring under appointRente lted to one year or les
s or emergency logees.vhase employment is ,,, uncertain
or purely temporsoy duratic., or who are emp1.lt4 for brief
pawl?a at intervals.
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ONF DENT A
ea ttip llarre loyal*
Inviszg reepaer to of duty.
intermittent employees
f. 1.cgrees whose salaryD pay, ccwensation on an annawa
$1.P.Co a year co less.
DO 40
Zad11441u3loyaid on a c(ktract cr gee basis.
oyees serving in ccoperationwith non-Vederal agencies
o ere paAa 41e or in part from aw.-Yederal
'ved.c1t3
loyeas e duties involve tiv security ng the Unitek
- States and preclude tefr identification Q0 ftloyees of the
ederal Sorvernment.
Retired t7floyee gee loyed under conditions not teominatinS
their title to annuities.
EMS COATI
i.
a) BE
TOY
KA"
kArdiM:A7
:2!AnNual CcEVansgta :shall ,g(00=ist q01: the annual basic salary:, ygy
Or? ctiktril fized by law or rewdation. Uhder this definition there
wouldbe iocluded as part GE the basic salaw tbQ ollocolciam in-
crements:
a. 2.0t differential pay far ?wage bout
arch 193k.)
ro,
loyees. (Act of 28
.? b. Overseas service differeatimX pay for employees1 25X1
(waririu,, statutes).
(Eyolded would be such increment as naOt d*emmtiga V:AY of
loyees stbjeCt to the ClassificationActs cgemiAtwa pan bcaa.',
Aray pagp.overceas service differential pay.for euwloyeas other
thAn those I hazardous duty pay and in-
centive pay.s
Err:
OLDIEGS
!gpgmees t_-0.ef,t3e_a
(1) Deductions in the full amount will be withheld fr
loyeee salaoy when the .c.,,tloyee is 0. a pay statill, for
.the whole ar at r pay period. (If salary
&mitt:. the ray' period lee deductions f*J1 retirement or
PICAD end income tayes Is less than the amount of the ital.
inslorance deducti t emainder will. be withheld as the
insurance deduction.
-,11, ?
(2) Men ea employee returns to duty from a non'VBAT status which
cover entire pay periolp deducti*a.t; for insurance will
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be freak Ma future salgry fog the period
such. non-sagy status.
4-1
(3) DIMUMWS deducti Y3111 be made fgwr an employees smaxgy
for
I licb1p3ypericds end the related amount of
Insurance c*-v,, aa_Le os shoun in the folloffins table:
Attneual
Amt. af
pemance
unt of
Per
Peri&?
More Man
Zeit Nara Tiona
gl@K
1-Weeklt
nroi
tAg.
RiagtW
.54
$
$ 29 444
$ 1,414
.13
.25
.27
19000
29000,
? 2, 444
.25
.50
.5111.
1.
29000
39000
3DC04
.38
.75
.81
1.63
39000
4.9 444
4,000
.50
1. I ii
1.
2.17.
49000
59000
5,000
.63
1.25
1.35
2.71
59000
69000
6,000
.75
1.50
1.63
S*P5
69000
7 440,
7,000
? ?
1.75
1..4
3.79
7,000
89000
9,000
a, 444
99000
109000
89
99000
10,000
1. 14
1.13
1.25
2.00
2.25
2050
2.17
2.41*
2.71
k033
k.
5.2e
109000
119000
11,000
1.38
2.75
2. 44;
5.
110000
12,000
120=
1.50
-3.00
3.25
6.50
19000
13,003
13,000
1.63
3.25
3.52
7,
13,003
lk, 44
lh #44,
1.75
3.50
3.79
7.58
Ik9.000
15, 40;*
15: 444
1.
3.75
h.
8.13
15,000
1.? 44*
160 (044
2. 041
4.00
4.33
-$.67
260000
17,000
17,000
2.13
k025
k.60
9.21
17,000
189000
189000
2.25
k.50
4
943
0000
199
19,000
2.38
4.75
5.15
10.29
19,030
20,000
2.50
5.00
5)42
10.83
ror alaY Pay period other -_41. stated in the above table, 4-AP amount
deductim4 ,a-& pay pariv4 is determined at !j rate 1,170YPotimomte
to the rate 0225 cent biuees4 for each 1,000 doLtre of inwmIce
juste to the nearest
1
b. g_e_el_65a040114er
(1) Insurance deductions ce se at the end of.the pay perica
lately reeeing t one in 7:'b1ah the ego.e reaches
his 65th birthday.
(2) 1n the c se of employees liho are age 65 pno deduc-
tions will be made.
I 7- ? ?
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M1&4Rrreneous React/cm for lzmumnce Etreidv--4A
Ehen grouvlifeinsurence?deductions have been'erroneously
taken frw. the salary of a currently eimployed individual
74.ho has Ave miritten notice that he -4es .*.t desire to be
insured, or from the salary of an empll, ee iolo I Ineligible
for this insurance refund the erroneous deductions rill
be:adjusted on a Asequent payroll on uhl his name Nears.
Refund of erroneous deductions to the individual by means of
Guth payroll adjustment uill automatically correct the excess
portion co,. ributed by the Agescy from its appropriation as a
result of the erroneous dsduet4p,? from the employee.
(2) Ehen an incerrect ar? of-group lift 125101Y2Dge deductions
has been taken fram the salary :of am insured empl ee am s
reset -f at erroneous ammi-Ation of such deductionsp adjust-
ment ulallitsuise be mTde ma Subsequent payroll on thich
hi name appears.
( 3 )
(4)
Ehan iadivi&al has se tedubo ma not covered by
Yederal? Group Lift Znsurance during his ma.cLoyment 'elth the
Agencys adjustment of spy amount erroneously tiit.i.eld for
110e insurance premiums zIll be corrected in the nent pay-
roll mnA 7114.1 be.roilected in the final Nicsiext to.
the individgal or to Mi s beneficiary or estate late is.
deceased. As suCh adjustmentilldecrease the gross mount
00 iMSBUnglOP deductions for the pay period in izbieh the
adjustment Is processed, ,11 excess amount previously con-
tributed by the Acncy 'All automatically be adjusted in
the sams pay period.
Adjustmont iU also be effected in the manner outlined in
the preceding paragra.)., here an excess amount no Identified
zith opecifielndividuals has beer&deposited to the Life
Xnsurance YUnd as a result of errors in sehedul 11.4 etc.
6 . &lam' COMEMTME
The amount for insurance to be contributed by the Agency Oran its
appropriation IU be equal to 50 percent of the m4zAg-egmbs of the employees?
Insurance deductions ohms on their pay records.
70 ACC0172=T0BMEEMEIMS3 CCTZRIMUCM
e foliming pemedures OW the recording of ulthh*1
and contributions by th Agency are pTescribed ena apply to c
earned subsequent to 28 August l95k.
11.1g
frmn e491loyees
0cupekgation
13
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a. . 's C tribut oon. n
( 1 )
e Agency's contributions will be charged to the same
llotment accounts lzie the salaries of the employees from
whom related insurance deductions ,--ve been .ep will be
distributed to sub-Object classification 07.0 - Federal
Employees' Group Lift Insurance., Age%cy's Comtribution.
Vii41
b. Confidential Funds Payroll
(1) The Payroll and Travel leiremehs, ot the completion of ?ich
payrollp will 1.c1ude in the postis4 voucher (POEM 33-10)
prepared to record the payrollp the following entry with
respect to iince premiums withheld fr.m empleTees and
contributions by the Aency:
Debit: Account Bo. 600.1 - Current Cats - Direct Allotment
(a)
Appro.late of Object classes 01.1 throngh 01.4 with
amounts deducted from larie o employees.
(b) ject Class 07.0 with the amoUnt of the Agency's
contribution (4. of ( ) bove). This amount will
be c ed to the same iUotente that tr related
deductions mentioned in (a) above are charged.
Credit: *Account No. 310.4 - Due to U. 8 Treasury -
Federal Group Life Insurance Withho'ins
and Contributions4, with sum of the above
debits.
Whis is a /Aew account; see EA/bit
de cription of this account.
e Accounts Branch will record
Payroll and Travel Branch in the
of the Finance Div Ion.
. _
'
entry prepared by the
eral ledger accounts
At the c1.4e of each accounting period the Accounts ranch
will prepare a memorandAu to the eftry Br eh requesting
an agent cashier' check payable to the Treasurer of the
United States for the amount of the withholdings ansa contri-
butions recorded in account No 310.4. The memorandum will
be prepared in, pm or ,iral P
SP&t.ree copies which will
distributed As follows:
Original )
) 20
iplicate)
Quadruplicate -
1:r
Nonetexy Branch
To be ld in the Accounts Aol &o.ch
until a copy of the alemerancl is
re-tunnel by the ilonetary Branch.
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(5)
S Monetary Bra ch
(a) Prepare a check s requested and post on the originals,
duplicates, and triplicate *f the requesting memorandum
the check issue este indicated on Exhibit A.
(b) Forward the Checks with a simple Memorw,nm of tr na-
mittals to the Fiscal Division (Accounting Branch).
(c) Deliver the triplicate of the requesting msmor ndum
to the Finance Diviion (Payroll and tvei Branch).
(d) Prepare and deliver to the Finance Division (Accounts
)ranch) posti voucher des enting the nt c shier's
account on which the check was drawns upported by t
duplic te of the requesting memorsnaum.
IlLor
,
W01 e Accounts Branch will complete the posting voucher received
from the Monetary Branch, destroy the follow-up copy (qvad-
ruplicate) of the requesting memorandums and record the
followi entry in the c-neral ledger:
Debit: Account Eo. 310.4 - Due to U. S. Treasury - Federal
Group Lift Insurance WithhOldings and Contributions
Credit: Bank account indicated by the MOnetary Branch.
Post media: Posting Voucher (Form 33-10).
ALSO
Debit: *Account No. 715 - Lode Insurance Deductions and
Contributiokl Deposited
Credit: *Account Bo. 716 - Lift Insurance Deductions
Co%tributions (Control)
: -
P sting media: Posting Voucher (Forgn 33-10).
0 This Is -t nee account's seeBOokibit
of this account0
for description
(6) The Fisctz. s4
1 Divi ion (Accountif Branch) upon receipt of
the checks will prepare Standard Form. No. 1159, Schedule
of Collections for Available Special aci Trust Fund Receipts,
and deposit the check in the accounts of the Treasurer of
the U. S. (see paragraph 8 below). Al authenticated copy
of S.F. 1159 viii be furnished (a) to the Finance Divisi.n
(Accounts Branch) and (b) to the Finance Division (Payroll
and Travel Branch) as evidence that the deposit cgs been
made.
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c. Vouchere42eyra4
(1)
e Payroll ranch will prepare Standard Peens 1228 and 1128Ap
yroll For Persol Services Payroll Certification and Summaryp
include therein the Aitounts of *romp life insurance with-
holdings and c ntributions for the payroll period. Standard
Nina 1128 will be prepared in an iginal only and forwarded
to the Fiscal Processing Branch. Three copies of Standard
pmaw 112k will be prepared a.,4 distributed as follows:
( U28A is at by-product f the preparation of SF 1128)
let Copy - To Budget Division
2nd Copy - To Accounti.g, Branch
3rd Copy e1i in the Payroll Branch.
(2) Upon receipt of the SN 1128 the Fiscal Processing Branchiliil
qpi4ti
prepare sr 11669 Voucher tr.., Schedule of Payments from
the Information stated on lf 1128. The Voucher a...4 Sch,.ule
of Payments will be prepared in an original five cies
which will be distributed as followeg
(3)
inai ) To Disburei Office of the U.S.
licate ) Treasury located within CIA.
Tr4p1iote)
Quadruplicate
Quintuplictite
Sext -*let
- To the Accounting vvanch
- TO the General Accounting Office
epresentative 1 cated within CIA.
- TO DiAmroix4 Officer of the U.S.
Treasury located within MA for
receipti.6,:9 qo-return to Pica].
Processing Brancho
on. receipt (4 1166 the Accounting Brqnch will record
the following entries with respect to insurEance premiums
withheld from employees end c.Atributed by the Agency in
the general 1eer ace unto of the Fiscal Division:
Debit: Account
(a)
o. 600.1 - Current Costs
ropriate of Object classes 01.1p 01.3 and 01.4
With amounts deducted from salaries of eAtloyees.
(b) ject class 07.0 with tv mount f A ncy's contribution
ti of (a) above).
416
Credit: Account M0 106 Dieburel Yurde CE,y Sole
na Titles) with the um
f the above debits.
Posting Nadia: journsl Vouc r 101712 Revised) supported
by Voucher a Schedule of ymante (S7 1166)
ALSO
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Debits cAccount Oo 715 - Life Insurance Deductions
nd Contributions Depcoited
Credits qAccount Eb. 716 - Life Insurance Deductions
ani Contributions (Control)
Posting Medi s j0ur*.1 Voucher ( 10170 Revised)
supported by Voucher and Schedule of
Paws to (L'S, 1166).
0Tb-1s ie ew ccount3 see Exhibit M for ieecriition
-of this account.
8. DISPOSITI
OF 14=00 xxas
UTZ
4V6
The amounts withhe from the salary of each employee :.,. the
contribution the AdeAcy will be deposited lvto the Treasury of the
United States to the credit of account 2416424(21) - Employees? Lige
insurance Fund Civil Service CvTil'ssion.
9. REP:MIMEO
At the close of eiach Calendar year the Fiscal Divi ion (AccountiRS
sac ) will report to the Civil Service Commission the total iiurange
withholdings ? contributio,z depo ited by this A ncy during the year
into, the Employees? Life Insurance nnd Civil Service-Compiesio . %le
report will reflect the followl informations
.1 'I
Accumulated 29 August 1954 through e
current calendar year (19 )
Accumulated through prior-calerdor year
Deposit duri?v current calendar year (19 )
Th2 1._(9zi5LcIKw far ttio EGxEt viii be eltaiR-a ft bic;- pgmlNerg
. a... The Finance Division (Accounts Branch) will direct g mmora5.um
?to the Fl cal Division (Accountix_4 )ranch) ytichwill contain the
? above ing*,-.4tio taken from general le41.--r account no. 715 of the.
'Finance Division.
$ 00000000000
0'0.0 0 CO 0 0 0 0 0
00.00 00 0 0 0
00
b. The Fiscal Division (Accounting Branch) will consolidate the infor7
tion contained in the memorandum mentioned in a above with the
oeeWaleIntiOn taken from general ledger account No. 715 *f the
Fiscal Division (Accountit Branch). The Fiscal Divi2lon (Accounting
',.)1Branch) viii then submit the consolidated .Wormation to th Civil
.'Service Commi4sion.
11,1
At ,-4chmente
Exhibits A
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DENT AL sit, I. IT A
Date
?
TO: Monetary Branch:41= Division
FR . Accounts Branchs, Finance Division
bUBJECT: Federal Employees Life ins
Contributions Deposits
be
11)
educti
It Is requested that q check in the amount of $
e payable to the Treasurer of the United States. The amount
this check represents the net f the amounts of oup life in-
surance deductions from empl es' salaries and the amounts of the
contributions to -,, insurance Fund by the ncy from its appropcia-
? tion on the folloolg. confidential ,,.ws payrolls for the 4-yro11
penl
10.c
? 11
indicated belous
Period Amount
Total
Accounts ranch
FlAqnce Division
Check Issued:
te
Amount
S igned
netary
Finance Division
qQIVC1L11
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Tr A LW
Art 11:
1.
DESCR X
OF
LOTEErGa0UP
T1"
ACC
XIS
*Ai
I tAN
:141
TO
WITEKOLDIEGS
VI)
onm ccum -F ,ruCE DIFXBIOE
;#4E:AN
FEDERAL
IBUTIONS
?,?i
310.4 - Feder 1 Oro Li.Xneurance
Wit o1e Cntibutioxe
2. G
.1-4047,A
01
This credit balance (liability)account represents the
amount due the U. S. Trv:Lsurry for insurance ?erJe
deducted from employees' salaries sc.' contributed from
the Agency's ap,-opriation foe Federal Group Life
Xnsurance.
L LEM
ACCOMS
715 - Life Insurance Deducti
Ut If
if; z
FISCAL MIMEO
and Contributi
@,
Itoi
This debit balance (otatistical) account represents the
amounts of lift insurance ?remdume deducted from t
os)Aries employees and the amounts of insurance
premiJe_ contributed by the Agency from its qppropriati
el,wi deposited to the credit of the Federal Employees'
Group Lift Insurance
EME: Ae total deposits t* the Insurance Fund by the
Agency during the current Tionth v1.11 be reconciled
with the Department of Yreasury account current by
the Fiscal. Division (Accounting: Branch).
716 - Life Insurance Deductions and C _tributi (Control)
Thi credit balance (statistical) account represents the
eE te of the amounts of life InsuraLAce emiums deducted
from the s laries of employees nd the kaounts of I 4nce
premiums coAributed tv the Agency from its approgri tion.
At the end of oh c londar qua5ner the aggregate *4: the
unto credited to thls :ccount ohall agree with the sum
Of (1) the insurance premi deducti**.= reflected on
employees' earnings reco,xls (2) Agency's contributio
e reflected on the payrcll documents., for the same peri
MWo
rj
GOAFFDLNMAL
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