14 + REPORT OF THE GOVERNOR OF THE VIRGIN ISLANDS

Virgin Islands, in addition to providing departmental personnel
services for the operating agencies of the executive branch. It also
administers the local Retirement Law, and acts as liaison agency
between the Territorial Government and the Federal Social Secur-
ity Administration in matters relating to coverage of government
employees.
 During the past year the Division of Personnel was transferred
by legislative action from the Office of the Government Secretary
to the Office of the Governor, a change which had been contem-
plated by several past administrations.
 Several significant pieces of legislation affecting personnel ad-
ministration were enacted during the past year. A local unem-
ployment insurance system was created, although employee benefit
payments will not begin until 2 years hence. The powers of the
five-member Government Employees Service Commission were ex-
panded considerably so that the Commission now has final author-
ity in deciding on employee appeals from dismissal, demotion, or
suspension for more than 30 days. Veterans' preference in com-
petitive examinations for employment was liberalized to permit
claiming the 5 percent perference without first having to pass the
particular examination. Another important piece of legislation
permits any department head to recommend and the Governor to
approve, the issuance of a noncompetitive classified service appoint-
ment to anyone who has served satisfactorily for a minimum of
60 days in an emergency or provisional capacity.
 The Retirement Law was amended to provide a form of life
insurance benefit whereby the surviving beneficiary who is not en-
titled to other benefits under the law is granted a cash payment,
the amount of which is related to length of service and last salary
of the deceased employee. The maximum payment is one full
year's salary up to a maximum of $7,500, where the employee had
served for 10 years or more. Due to financial restrictions, no action
has as yet been taken to relieve underfinancing of the retirement
system by raising from 4 percent to 7.63 percent the Government's
contribution as has been recommended by the consulting actuary.
 The results of a pay plan study for which the Government con-
tracted with a consulting firm are now available, and legislation is
being prepared. The study, based upon community wage data, is
the first of its kind in almost 10 years, and only the second such
study since creation of the Personnel Division. Also included in
the contract was a study for up-dating the personnel rules and
regulations.