BILLS INTRODUCED

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP71B00364R000500120001-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 28
• Document Creation Date: December 9, 2016
• Document Release Date: August 29, 2000
• Sequence Number: 1
• Publication Date: April 3, 1968
• Content Type: OPEN

Approved For Release 2001/08/28 : CIA-RDP71B00364R000500120001-9
April 3, 1968 CONGRESSIONAL RECORD - SENATE-
filled the letter and spirit of these new
provisions.
Congress directed that the Food for
Freedom program should encourage in-.
ternational trade.
-In 1967 world trade in agricultural
products reached an all-time high
of $33.9 billion, nearly 20 percent
higher than in 1966.
Congress directed that the Food for
Freedom program should encourage an
expansion of export markets for our own
agricultural commodities.
-In the past two years, this nation
has enjoyed unparalleled prosperity
in agricultural exports. Since 1960
our agricultural exports have grown
from $3.2 billion to $5.2 billion-a
gain of 62 percent.
Congress directed that we should con-
tinue to use our abundance to wage an
unrelenting war on hunger and malnu-
trition.
-During 1967 we dispatched more
than 15 million metric tons of food
to wage the war on hunger-the
equivalent of 10 pounds of food for
every member of the human race.
Congress determined that our Food for
Freedom program should encourage gen-
eral economic progress in the developing
countries.
.-Our food aid has helped Israel, Tai-
wan, the Philippines, and Korea
build a solid record of economic
achievement. With our help, these
nations have now moved into the
commercial market, just as Japan,
Italy, Spain and others before them.
Congress determined that our food aid
should help first and foremost those
countries that help themselves.
-Every one of our 39 food aid agree-
ments in 1967 committed the receiv-
ing country to a far-reaching pro-
gram of agricultural self-help. Many
of these, programs are, already
bringing record results.
Congress directed that. we should move
as rapidly as possible from sales for
foreign currency to sales for dollars.
-Of the 22 countries participating in
the Food for Freedom program in
1967, only four had no dollar pay-
ment provision. Last year, six coun-
tries moved to payments in dollars
or convertible local currencies, _
Congress directed. that we should use
Food for Freedom to promote the foreign
policy of the United States.
Statistics alone cannot measure how
Food for Freedom has furthered Amer-
ica's goals in the world. Its real victories
lie in the minds of millions who now
know that America cares. Hope is alive.
Food for Freedom gives men an alterna-
tive to despair.
Last year was a record year in world
farm output. With reasonable weather,
1908 can be even beater. New agricultural
technology is spreading rapidly in the
developed countries. New ceretal varie-
ties are bringing unexpectedly high
yields in the developing lands. An agri-
cultural revolution is in the making.
This report shows clearly how much
we have contributed to that revolution
in the past year. But the breakthrough
is only beginning. The pride in accom-
plishments today will seem small beside
the progress we can make tomorrow.
LYNDON B. JOHNSON.
THE WHITE HOUSE, April 3, 1968.
MESSAGE FROM THE HOUSE
A message from the House of Repre-
sentatives by Mr. Bartlett, one of its
reading clerks, announced that the
House had disagreed to the amendments
of the Senate to the bill (H.R. 15414)
to continue the existing excise tax rates
on communication services and on auto-
mobiles, and to apply more generally
the provisions relating to payments of
estimated tax by corporations, agreed to
the conference asked by the Senate on
the disagreeing votes of the two Houses
thereon, and that Mr. MILLS, Mr. KING
of California, Mr. BOGGS, Mr. BYRNES
of Wisconsin, and Mr. CURTIS were ap-
pointed managers on the part of the
House at the conference.
The message also announced that the
House had passed the following bills, in
which it requested the concurrence of
the Senate:
H.R. 12119. An act for the relief of Joseph
M. Hepworth;
H.R. 15591. An act for the relief of Pfc.
John Patrick Collopy, US51615166; and
H.R. 15979. An act to amend the act of
August 1, 1958, in order to prevent or mini-
mize injury to fish and wildlife from the use
of insecticides, herbicides, fungicides, and
pesticides, and for other purposes.
ENROLLED BILLS SIGNED
The message further announced that
the Speaker had affixed his signature to
the following enrolled bills, and they were
signed by the Vice President:
S. 109. An act to prohibit unfair trade
practices affecting producers of agricultural
products, and for other purposes;
S. 172. An act for the relief of Mrs. Daisy G.
Merritt;
S. 1580. An act for the relief of John W.
Rogers;
H.R. 7325, An act to authorize the Secretary
of the Interior to exchange certain Federal
lands for certain lands owned by Mr. Robert
S. Latham, Albany, Oreg.; , ary 14, 1931, relating to the acceptance of
H.R. 10599. An act relating to the Tiwaa_gifts for the benefit of Indians; to the Com-
Indians of Texas; and ,,, l A mittee on Interior and Insular Affairs.
HOUSE BILLS REFERRED
twice by their titles and referred
indicated:
H.R. 12119. An act for the relief of Joseph
M. Hepworth; and
H.R. 15591. An act for the relief of Pfc.
John Patrick Collopy, US51615166; to the
Committee on the Judiciary.
H.R,.15979. An act to amend the act of
August 1, 1958, in order to prevent or mini-
maze of Injury to des, herbicides, fish and wildlife from the use
fungicides, and
pesticides, and for other purposes; to the
Committee on Commerce.
The following reports of committees
were submitted:
By Mr. ANDERSON, from the Joint Com-
mittee on Atomic Energy, without amend-
ment.
S 3803
S. 32.62. A bill to authorize appropriations
to the Atomic Energy Commission in accord-
ance with section 261 of the Atomic Energy
Act of 1954, as amended, and for other pur-
poses (Rept. No. 1074).
By Mr. BIBLE, from the Committee on the
District of Columbia, without amendment:
H.R. 5799. An act to amend the District of
Columbia Uniform Gifts to Minors Act to
provide that gifts to minors made under such
act may be deposited in savings and loan
associations and related institutions, and for
other purposes (Rept. No. 1075).
By Mr. BIBLE, from the Committee on the
District of Columbia, with an amendment:
S. 2015. A bill to amend section 11-1902,
District of Columbia Code, relating to the
duties of the coroner of the District of
Columbia (Rept. No. 1076).
By Mr. BIBLE, from the Committee on the
District of Columbia, with amendments:
S. 2496. A bill to authorize the Commis-
sioner of the District of Columbia to enter
into and renew reciprocal agreements for
police mutual aid on behalf of the District of
Columbia with the local governments in the
Washington metropolitan area '(Rept. No.
1077).
EXECUTIVE REPORTS OF
COMMITTEES
As in executive session,
The following favorable reports
nominations were submitted:
By Mr. EASTLAND, from the Committee
on the Judiciary:
William C. Keady, of Mississippi, to be
U.S. district judge for the northern district
of Mississippi.
By Mr. MONRONEY, from the Committee
on Post Office and Civil Service: ,
John H. Johnson, of Illinoia,'to be a mem-
ber of the Advisory Boardtfor the Post Office
Department; and 1~1
Two hundred apd"twenty-nine postmaster
BILLS INTRODUCED
By Mr. JACKSON (by request) :
S. 3275. A bill to amend the act of Febru-
(See the remarks of Mr. JACKSON when he
introduced the above bill, which appear
and for other purposes; to the Committee
on Post Office and Civil Service.
. 3277. A bill to strengthen the criminal
penalties for the mailing, importing, or
transporting of obscene matter, and for other
purposes; to the Committee on the Judiciary.
(See the remarks of Mr. BREWSTER when he
introduced the above bills, which appear
under separate headings.)
By Mr. MAGNUSON (by request) :
S. 3278. A bill to provide for the authority
for passenger vessels to operate as trade-fair
exhibition ships; to the Committee on Com-
merce.
(See the remarks of Mr. MAGNUSON when he
introduced the above bill, which appear
under a separate heading.)
By Mr. RIBICOFF:
S. 3279. A bill for the relief of Col. Heinz
Eisenberg, U.S. Army Reserve (retired); to
the Committee on the Judiciary.
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 S3804
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CONGRESSIONAL RECORD - SENATE April 3, 1968
S. 3275-INTRODUCTION OF BILL RE-
LATING'TO THE ACCEPTANCE OF
GIFTS FOR THE BENEFIT OF
INDIANS
Mr. JACKSON. Mr. President, I intro-
d,ace, for appropriate reference, a bill to
amend the act of February 14, 1931, re-
lating to the acceptance of gifts for the
benefit of Indians.
The Department of the Interior, by
letter of December 11, 1967, requested
the introduction of this legislation. I ask
unanimous consent that the letter from
Assistant Secretary Harry R. Anderson
explaining the need for the legislation
be printed in the RECORD fqillkw lg my
remarks.
The PRESIDING OFFI
The letter, presented by Mr. JACKSO
I,, as follows:
U.S. DEPARTMENT OF THE INTERIOR,
OFFICE OF THE SECRETARY,
Washington, D.C., December 11, 1967.
lion. HvBrRT- I, HIJXSFIIiIEY,
President of the Senate,
Washington;D.C.
DEAR MR. PasnmzrsT: Enclosed is a draft of
a proposed bill "To amend the Act of Febru-
a:^y 14, 1931, relating to the acceptance of
gifts for the benefit of Indians."
We recommend that the bill be referred to
tine appropriate committee for considera-
tion, and we recommend that it be enacted.
The 1931 Act reads as follows:
'The Secretary of the Interior be, and he
is hereby authorized in his discretion to ac-
au-pt contributions or donations of funds or
other property, real, personal, or mixed, which
may be tendered to, or for the benefit of,
Federal Indian schools, hospitals, or other
institutions conducted for the benefit of In-
dians, or for the advancement of the Indian
race, and to apply or dispose of such dona-
tions for the use and benefit of such school,
hospital, or other Institution or for the bene-
fit of individual Indians."
The Act permits the acceptance of dona-
t' ons for the benefit of Indian institutions
or for the advancement of the Indian race.
I; permits the donations to be used only for
tine benefit of an Indian institution or for the
benefit of individual Indians.
The requirement that the donations be
used for the benefit of ,in Indian institution
or individual Indians raises doubts about
tine use of the donations for such things as
research on educational curriculum to meet
the special needs of Indian children; research
on the special social adjustment problems of
Indian families and individuals; projects to
develop Indian communities and community
leadership; museums to preserve Indian cul-
tare and promote understanding of Indian
people andaooperative projects for housing
improvement or resource development.
In order to clarify the Act and to permit
the use of donations for any purpose that
wild contribute to the advancement of the
Indian people within the framework of pro-
grams otherwise authorized by law, the Act
should be rephrased. Our proposed bill would
accomplish this result.
At the present time about $35,000 of do-
made to charitable organizations or to tribal
governments when they were best able to
administer the gift, and that practice will
be continued. When the gift needs to be ad-
ministered by the Secretary, however, he
should have broader authority than is now
contained in the 1931 Act.
The Bureau of the Budget has advised
that there is no objection to the presenta-
tion of this draft bill from the standpoint of
the Administration's program.
Sincerely yours,
HARRY R. ANDERSON,
Assistant Secretary of the Interior.
S. 3275
A bill to amend the Act of February 14, 1931,
relating to the accepteflee of gifts for the
benefit of Indians
Be it enacted by the Senate and House
of Representatives of the United States of
America in Congress assembled, That the Act
of February 14, 1931 (46 Stat. 1106, 25 U.S.C.
451), is amended to read as follows:
"The Secretary of the Interior may accept
donations of funds or other property for the
advancement of the Indian race, and he may
use the donated property in accordance with
the terms of the donation in furtherance
of any program authorized by other provi-
sion of law for the benefit of Indians."
S. 3276-INTRODUCTION OF BILL TO
MODERNIZE CERTAIN PROVISIONS
OF THE CIVIL SERVICE RETIRE-
MENT ACT
Mr. BREWSTER. Mr. President, each
year various laws are enacted which
benefit our Federal employees either
through direct pay increases, or in im-
proved and extended fringe benefits.
Over the years, too, there have been a
variety of bills introduced which would
make liberal changes in the benefits af-
fecting our Federal employees when they
retire. However, these individual bills
have stayed in committee without action
and have been reintroduced session after
session. I think our retirees, after serv-
ing; their Government for nearly a life-
time, deserve better than this.
Individually, these bills affect only a
small part of the retirement system. To-
gether, they form the basis for a signifi-
cant overhaul and modernization of the
regulations governing retirees.
creased whenever the cost of living goes
up as much as 3 percent and stays up
for 3 months in a row. Such annuity in-
creases equal the percentage rise in the
cost of living. My bill would cut down
on the time a retiree has to wait to re-
ceive an increase in anwifties by making
the automatic adjustment formula go in-
to effect after the price index has risen
by 2 percent for 2 consecutive months.
The definition of basic pay is changed
by this bill to include in the computation
of annuities overtime or premium pay
earned by an employee. The employee
certainly works for this extra pay, and
I believe should have it. credited to his
account when he retires.
The present penalty for survivorship
annuities works much too hard a burden
on the retiree. I propose that the 21,>.-
percent reduction now applied only up
to $3,600 be changed to apply up to $4,-
800. Then the 10-percent reduction
would apply to annuities over $4,800
rather than all amounts over $3,600 as it
now does.
My bill further raises survivorship
benefits for children a at provides for
increased contributions by covered em-
ployees, with matching agency contribu-
tions, to guarantee the necessary funding
for this liberalized prof, earn.
This brill has already been introduced
in the House of Representatives by the
Honorable THADDEUS J. DULSKI, chair-
man of the House Post Office and Civil
Service Committee. I feel that with his
able leadership and with support in the
Senate committee for this long overdue
legislation, we can soon realize a new,
workable and certainly beneficial pro-
gram for our retired Federal employees.
The PRESIDING OFFICER. The bill
will be received and appropriately re-
ferred.
The bill (S. 3276) to modernize cer-
tain provisions of the Civil Service Re-
tirement Act, and for other purposes, in-
troduced by Mr. BREWSTER, was received,
read twice by its title, and referred to tile
Committee on Post Office and Civil
First, the bill I introduce today will S. 3277--INTRODUCTION OF BILL
change the computation formula on RELATING TO CRIMINAL PENAL-
annuities by providing that after an em- TIES FOR MAILING, IMPORTING,
ployee completes 10 years of service, all OR TRANSPORTING OF OBSCENE
past and future service will be creditable MATTER
at a 2-percent rate. Presently it is 1?i2
percent for the first 5 years and 1% per- Mr. BREWSTER. Mr. President, I am
cent for the next 5. These figures would sure that everyone of our distinguished
apply only to service of fewer than 10 colleagues has had the problem of por-
years. nography in the mails brought to his at-
Second, a surviving spouse would re- tention at one time or another by angered
ceive 60 percent of the employee's constitutents, demanding that something
earned annuity rather than the 55 per- be done by the Federal Government to
cent provided for under today's regula- have their names removed from the mail-
tions. This percentage has not been in- ing lists of these peddlers of of filth. I
creased since 1962 and would, I feel, be know that the residents of Maryland find
completely justified in view of the rise in the receipt of unsolicited pornographic
the cost of living in the past 6 years. It publications and similar smut an in-
would also tend to equalize annuity pay- vasion of the privacy of their homes.
ments with the adjustments made last Personally, I find the situation deplor-
year in the Social Security Act. able and was proud to have had a part
The automatic cost-of-living formula in support title III of last year's Postal
for the adjustment of annuities has been Revenue and Federal Salary Act. In that
most recently attacked by retirees who measure, the President wisely enacted in-
claim that they do not receive as regular to law provisions which would make it
or as high an increase as the Federal possible for an addressee to judge a piece
has in the past enc urn pied do ns e th ill c l t its aece?ptability. If the
Qppi-oveore~ease 1~'11~2
 Approved For Release 2001/08/28:'CIA-RDP71B00364R000500120001-9
October 7, 1969 CONGRESSIONAL RECORD - HOUSE
(By unanimous consent, Mr. HALL was
allowed to proceed for 2 additional min-
utes.)
Mr. HALL. Mr. Chairman, the Navy is
authorized to invest and fund 76 percent
of all oceanographic studies. There is a
separate Institute on Oceanography, it is
chaired by the Navy. Then we have the
Oceanographic Institutes..I believe there
is one in San Diego, and f. think there is
one additional one which we use as a
laboratory, and which we f d in author-
ized appropriations for co siltation to
the Oceanographic Institu , and the
intergovernmental oceanographic agen-
To go on down the list here 1 perhaps
useless. I think I have made point,
and I simply throw out a warnin that in
the blessed name of science and earth,
and in spite of the importance an need'
of garnering onto ourselves line iteli re-
view of essential projects-and I conlpli-
The CHAIRMAN. Under the rule, the
Committee rises.
Accordingly, the Committee rose; and
the. Speaker having resumed the chair,
Mr. CHARLES H. WILSON, Chairman Of
the Committee of the Whole House on
the State of the Union, reported that
that Committee having had under con-
sideration the bill (H.R. 10878) to au-
thorize appropriations for activities of
the National Science Foundation, and for
other purposes, pursuant to House Reso-
lution 475, he reported the bill back to
the House with sundry amendments
adopted by the Committee of the Whole.
The SPEAKER. Under the rule, the
previous question is ordered.
Is a separate vote demanded on any
amendment? If not, the Chair will put
them en gros.
The amendments were agreed to.
The SPEAKER. The question is on the
engrossment and third reading of the
bill.
The bill was ordered to be engrossed
and read a third time, and was read the
third time.
The SPEAKER. The question is on the
research that redownds without produc f, passage of the bill.
Ing benefit. t The question was taken; and. the
I believe that one cannot go further Speaker announced the ayes appeared
this time, although one can continue
going through item by item as, indeed,
I have in the report, and marked pluses
or minuses on every one of the authoriza-
tions that are set Out here, I think it
serves no purpose except to alert and
put on notice those who have garnered
unto themselves that they must at all
',Mr. FULTON of Pennsylvania. Mr.
Speaker, I object to the vote on the
'ground that a quorum is not present and
malee the point of order that a quorum
is not,present.
The SPEAKER. Evidently a quorum is
not present.
expenses avoid duplication, additive work, The 13porkeeper will close the doors,
unnecessary research that overlaps, and, the Serge nt at Arms will notify absent
above all, read history to see if the needed Members, d the Clerk will call the roll,
knowledge is available before the re- The ques 'on was taken; and there
search is authorized. were-yeas 344, nays 5, not voting 42,
Chairman, will the gentleman yield?
Mr. HALL. I yield to the gentleman
from Pennsylvania.
Mr. FULTON of Pennsylvania. Mr.
Chairman, I would like to compliment
the gentleman on making an excellent
point. Our Committee on Science and
Astronautics has tried to prevent over-
lap, particularly in the Department of
Defense, and the National Institutes of
Health, and some progress has been made
by the new Secretary of the Air Force.
We have been so much opposed toward
putting a program under the DOT and
the Air Force for a manned orbiting
laboratory, and then a program of very
similar nature under NASA for a manned
orbiting laboratory. That manned orbit-
ing laboratory program has not been
canceled. I believe we should go forward,
as the gentleman said, and make sure on
these line-,y-line items that we will pro-
vide adequate research but no duplica-
tion.
Mr. HALL. Mr. Chairman, I thank the
gentleman for his contribution. I would
only add one sentence, and that is that
the statement of the gentleman from
Pennsylvania is true if, it is within the
bounds of military security, which can-
not be here discussed,
(Mr. HALL asked and was given per-
mission to revise and extend his re-
marks.)
The CHAIRMAN. The time of the gen-
tleman from Missouri has expired.
Abernethy
Adair
Adams
Addabbo
Alexander
Anderson,
Calif.
Anderson, Ill.
Andrews, Ala.
Andrews,
N. Dak.
Annunzio
Arends
Ashbrook
Ashley
Aspinall
Ayres
Baring
Barrett
Beall, Md.
Belcher
Bell, Calif.
Bennett
Betts
Bevill
Biaggi
Biester
Blackburn
Blanton
Blatnik
Boggs
Boland
Bolling
Bow
Brademas
Bray
Brinkley
Brock
Broomfield
Brotzman
Brown, Mich.
Brown, Ohio
Broyhill, N.C.
Broyhill, Va.
Buchanan
Y11S-384
Burke,:Fla. Dennis
Burke,Vass. Dent
Burleso Tex. Derwinski
Burlison,+o. Dickinson
Burton, Cal,,f. Diggs
Bush Dingell
Button . Donohue
Byrne, Pa. 'porn
Byrnes, Wis. ?Rowdy
Cabell
Caffery
Camp
Carter
Casey
Cederberg
Celler
Chamberlain
Chappell
Clancy
Clark
Clausen,
Don H.
Clawson, Del
Clay
Cleveland
Cohelan
Collier
Collins
Colmer
Copable
Conte
Conyers
Corbett
Corman
Coughlin
Cowger
Cramer
Culver
Daddario
Daniel, Va.
Daniels, N.J.
Davis, Ga.
de la Garza
Delaney
Dellenback
Dkwning
Dulipki
Dun'aan
Dwye .
Eckhaikl
Edmondson
Edwards, Ala.
Edwards, Calif.
Edwards, La.-.
Eilberg
Erlenborn
Each
Eshleman
Evans, Colo.
Evins, Tenn.
Fallon
Farbstein
Fascell
Feighan
Findley
Fish
Fisher
Flood
Flowers
Foley
Ford, Gerald R.
Ford,
William D.
Fountain
Fraser
Frelinghuysen
Frey
Friedel
Fulton, Pa.
Fulton, Tenn.
Fuqua
Galiflanakis
McMillan
Rooney, Pa.
Gallagher
Macdonald,
Rostenkowski
Garmatz
Mass.
Roth
Gaydos
MacGregor
Roudebush
Gettys
Madden
Roybal
Giaimo
Mahon
Ruppe
Gibbons
Mailliard
Ruth
Gilbert
Marsh
Ryan
Gonzalez
Martin
St Germain
Goodling
Mathias
Sandman
Gray
Matsunaga
Satterfield
Green, Oreg.
May
Schadeberg
Green, Pa.
Mayne
Scherle
Griffin
Meeds
Scheuer
Griffiths
Melcher
Schwengel
Grover
Meskill
Scott
Gubser
Michel
Sebelius
Gude
Mikva
Shipley
Hagan
Miller, Calif.
Shriver
Haley
Miller, Ohio
Sikes
Hamilton
Mills
Sisk
Hammer-
Minish
Skubitz
schmidt
Mink
Slack
Hanley
Minshall
Smith, Calif.
Hanna
Mize
Smith, Iowa
Hansen, Idaho
Mizell
Smith, N.Y.
Hansen, Wash.
Mollohan
Snyder
Harsha
Monagan
Springer
Harvey
Montgomery
Stafford
Hathaway
Moorhead
Staggers
Hawkins
Morgan
Stanton
Hays
Morse
Steed
Hechler, W. Va. Morton
Steiger, Ariz.
Heckler, Mass.
Mosher
Steiger, Wis.
Helstoski
Moss
Stokes
Henderson
Murphy, Ill.
Stratton
Hicks
Murphy, N.Y.
Stubblefield
Hogan
Myers
Sullivan
Holifield
Natcher
Symington
Horton
Nedzi
Taft
Hosmer
Nelsen
Talcott
Hull
Nichols
Taylor
Hungate
Nix
Teague, Calif.
Hunt
Obey
Teague, Tex.
Hutchinson
O'Hara
Thompson, Ga.
Ichord
Olsen
Thompson, N.J.
Jacobs
O'Neal, Ga.
Thomson, Wis.
Jarman
O'Neill, Mass.
Tiernan
Johnson, Calif.
Ottinger
Udall
Johnson, Pa.
Passman
Ullman
Jonas
Patman
Utt
Jones, Ala.
Patten
Van Deerlin
Jones, N.C.
Pepper
Vander Jagt
Jones, Tenn.
Perkins
Vanik
Karth
Pettis
Vigorito
Kastenmeier
Philbin
Waggonner
Kazen
Pickle
Waldie
Keith
Pike
Wampler
King
Pirnie
Watkins
Kleppe
Poage
Watson
Kluczynski
Podell
Watts
Koch
Poff
Weicker
Kuykendall
Pollock
Whalen
Kyl
Preyer, N.C.
White
Kyros
Price, Ill.
Whitehurst
Landrum
Price, Tex.
Whitten
Langen
Pryor, Ark.
Widnall
Latta
Pucinski
Wiggins
Leggett
Purcell
Williams
Lennon
Quie
Wilson, Bob
Lloyd
Quillen
Wilson,
Long, La.
Railsback
Charles H.
Long, Md.
Randall
Winn
Lowenstein
Rarick
Weld
Lujan
Reid, Ill.
Wolff
Lukens
Reid, N.Y.
Wright
McCarthy
Reifel
Wyatt
McClory
Reuss
Wydler
McCloskey
Riegle
Wylie
McCulloch
Rivers
Wyman
McDade
Roberts
Yates
McDonald,
Robison
Young
Mich.
Rodino
Zablocki
McEwen
Rogers, Colo.
Zion
McFall
Rogers, Fla.
Zwach
McKneally
Rooney, N.Y.
NAYS-5
Devine
Hall
Gross
O'Konski
NOT VOTING-42
Abbitt
Dawson
Mann
Albert
Denney
Pelly
Anderson,
Flynt
Powell
Tenn.
Foreman
Rees
Berry
Goldwater
Rhodes
Bingham
Halpern
Rosenthal
Brasco
Harrington
St. Onge
Brooks
Hastings
Schneebelt
Brown, Calif.
Hebert
Stephens
Burton, Utah
' Howard
Stuckey
Cahill
Kee
Tunney
Carey
Kirwan
Whalley
Chisholm
Landgrebe
Yatron
Cunningham
Lipscomb
Davis, Wis.
McClure
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October 7, 1969 CONGRESSIONAL RECORD-HOUSE
Strike out all after the enacting clause and
insert: That this Act may be cited as the
"Civil Service Retirement Amendments of
1969".
TITLE I-CIVIL SERVICE RETIREMENT
FINANCING
SEC. 101. Section 8331 of title 5, United
States Code, is amended-
(1) by striking out "and" at the end of
paragraph (15);
(2) by striking out the period-at the end
of paragraph (16) and inserting a semicolon
in lieu thereof; and
(3) by adding immediately below para-
graph (16) the following new paragraphs:
"(17) 'normal cost' means the entry-age
normal cost computed by the Civil Service
Commission in accordance with generally ac-
cepted actuarial practice and expressed as a
level percentage of aggregate basic pay;
"(18) 'Fund balance' means the sum of-
"(A) the investments of the Fund calcu-
lated at par value; and
"(B) the cash balance of the Fund on the
books of the Treasury; and
"(19) 'unfunded liabilty' means the esti-
mated excess of the present value of all
benefits payable from the Fund to employees
and Members and former employees and
Members, subject to this subchapter, and to
their survivors, over the sum of-
"(A) the present value of deductions to be
withheld from the future basic pay of em-
ployees and Members currently subject to
this subchapter and of future agency con-
tributions to be made in their behalf; plus
"(B) the present value of Government
payments to the Fund under section 8348(f)
of this title; plus
"(C) the Fund balance as of the date the
unfunded liability is determined.".
SEC. 102. (a) Section 8334 of title 5, United
States Code, is amended-
(1) by amending subsection (a) to read
as follows:
"(a) (1) The employing agency shall de-
duct and withhold 7 percent of the basic pay
of an employee, 71/2 percent of the basic pay
of a Congressional employee, and 8 percent
of the basic pay of a Member. An equal
amount shall be contributed froin the ap-
propriation or fund used to pay the employee
or, in the case of an elected official, from an
appropriation or fund available for payment
of other salaries of the same office or estab-
lishment. When an employee in the legis-
lative branch is paid by the Clerk of the
House of Representatives, the Clerk may pay
from the contingent fund of the House the
contribution that otherwise would be con-
tributed from the appropriation or fund
used to pay the employee.
"(2) The amounts so deducted and with-
held, together with the amounts so contrib-
uted, shall be deposited in the Treasury of
the United States to the credit of the Fund
under such procedures as the Comptroller
General of the United States may prescribe.
Deposits made by an employee or Member
also shall be credited to the Fund."; and
(2) by amending subsection (c) to read as
follows:
"(c) Each employee or Member credited
with civilian service after July 31, 1920, for
which retirement deductions or deposits
have not been made, may deposit with in-
terest an amount equal to the following
percentages of his basic pay received for
that service:
"Percentage of basic pay:
Employee: Service period
21/2 ----- August 1, 1920, to June 30, 1926.
31/2----- July 1, 1926, to June 30, 1942.
5------- July 1, 1942, to June 30, 1948.
6------- July 1, 1948, to October 31,
1956.
61/2 ----- November 1, 1956, to Decem-
ber 31, 1969.
7------- After December 31, 1969.
Member or employee for congressional em-
ployee service:
21/2----- August 1, 1920, to June 30, 1926.
31/2----- July 1, 1926, to June 30, 1942.
5------- July 1, 1942, to June 30, 1948.
6------- July 1, 1948, to October 31,
1956.
61/2 ----- November 1, 1956, to Decem-
ber 31, 1969.
71/2----- After December 31, 1969.
Member for Member service:
21/2 ----- August 1, 1920, to June 30, 1926.
31/2 ----- July 1, 1926, to June 30, 1942.
5------- July 1, 1942, to August 1, 1946.
6------- August 2, 1946, to October 31,
1956.
71/2----- November 1, 1956, to Decem-
ber 31, 1969.
8------- After December 31, 1969.
Notwithstanding the foregoing provisions of
this subsection, the deposit with respect to a
period of service referred to in section 8332
(b) (6) of this title performed before Janu-
aay 1, 1969, shall be an amount equal to 55
percent of a deposit computed in accordance
with such provisions.".
(b) The amendment made by subsection
(a) (1) of this section shall become effective
at the beginning of the first applicable pay
period beginning after December 31, 1969.
SEC. 103. (a) Section 8348 of title 5, United
States Code, is amended-
(1) by amending subsection (a) to read
as follows:
"(a) There is a Civil Service Retirement
and Disability Fund. The Fund-
(1) is appropriated for the payment of-
"(A) benefits as provided by this sub-
chapter; and
"(B) administrative expenses incurred by
the Civil Service Commission in placing in
effect each annuity adjustment granted un-
der section 8340 of'this title; and
"(2) is made available, subject to such an-
nual limitation as the Congress may pre-
scribe, for any expenses incurred by the
Commission in connection with the admin-
istration of this chapter and other retire-
ment and annuity statutes."; and
(2) by striking out subsections (f) and
(g) and inserting in lieu thereof:
"(f) Any statute which authorizes-
"(1) new or liberalized benefits payable
from the Fund, including annuity increases
other than under section 8340 of this title;
"(2) extension of the coverage of this sub-
chapter to new groups of employees; or
"(3) increases in pay on which benefits
are computed;
Is deemed to authorize appropriations to the
Fund to finance the unfunded liability
created by that statute, in 30 equal annual
installments with interest computed at the
rate used in the then most recent valuation
of the Civil Service Retirement System and
with the first payment thereof due as of the
end of the fiscal year in which each new or
liberalized benefit, extension of coverage, or
increase in pay is effective.
"(g) At the end of each fiscal year, the
Commission shall notify the Secretary of the
Treasury of the amount equivalent to (1)
interest on the unfunded liability computed
for that year at the interest rate used in the
then must recent valuation of the System,
and (2) that portion of disbursement for an-
nuities for that year which the Commission
estimates is attributable to credit allowed for
military service. Before closing the accounts
for each fiscal year, the Secretary shall credit
to the Fund, as a Government contribution,
out of any money in the Treasury of the
United States not otherwise appropriated,
the following percentages of such amounts:
10 percent for 1971; 20 percent for 1972; 30
percent for 1973; 40 percent for 1974; 50 per-
cent for 1975; 60 percent for 1976; 70 per-
cent for 1977; 80 percent for 1978; 90 per-
H 9163
cent for 1979; and 100 percent for 1980 and
for each fiscal year thereafter. The Commis-
sion shall report to the President and to the
Congress the sums credited to the Fund un-
der this subsection.".
(b) (1) The provisions of subsection (g)
of section 8348 of title 5, United States
Code, as contained in the amendment made
by subsection (a) (2) of this section, shall
become effective at the beginning of the
fiscal year which ends on June 30, 1971.
(2) Paragraph (1) of this subsection shall
not be held or considered to continue in
effect after the enactment of this Act the
provisions of section 8348(g) of title 5,
United States Code, as in effect immediately
prior to such enactment.
SEC. 104. Section 1308(c) of title 5, United
States Code, is amended by striking out
"on a normal cost plus interest basis".
SEC, 105. The proviso under the heading
"Civil Service Commission" and under the
subheading "Payment to Civil Service Re-
tirement and Disability Fund" in title I of
the Independent Offices Appropriation Act,
1962 (75 Stat. 345; Public Law 87-141), is
repealed.
TITLE II-CIVIL SERVICE RETIREMENT
BENEFITS
SEC, 201. (a) Paragraph (4) (A) of sec-
tion 8331 of title 5, United States Code, is
amended to read as follows:
"(A) over any 3 consecutive years of cred-
itable service or, in the case of an annuity
under subsection (d) or (e) (1) of section
8341 of this title based on service of less
than 3 years, over the total service; or".
(b) Subsection (c) of section 8333 of
title 5, United States Code, is amended to
read as follows:
"(c) A Member or his survivor is eligible
for an annuity under this subchapter only
if the amounts named by section 8334 of
title 5 have been deducted or deposited with
respect to his last five years of civilian serv-
ice, or, in the case of a survivor annuity
under section 8341(d) or (e) (1) of this chap-
ter, with respect to his total service."
SEC. 202. Subsection (g) of section 8334 of
title 5, United States Code, is amended-
(1) by striking out the word "or" at the
end of paragraph (3) ;
(2) by striking out the period at the end of
paragraph (4) and inserting in lieu thereof
a semicolon and the word "or"; and
(3) by adding the following new paragraph
immediately below paragraph (4) :
"(5) days of unused sick leave credited
under section 8339 (m) of this title".
SEC. 203. Section 8339 of title 6, United
States Code, is amended-
(1) by striking out of subsection (b) the
words "so much of his service as a Congres-
sional employee and his military service as
does not exceed a total of 15 years" and in-
serting in lieu thereof "his service as a Con-
gressional employee, his military service not
exceeding 5 years,";
(2) by amending subsection (c) (2) to read
as follows:
"(2) his Congressional employee service;";
(3) by striking out the last full sentence
of subsection (f);
(4) by striking out "(excluding any in-
crease because of retirement under section
8337 of this title)" in subsection (1); and
(5) by adding at the end thereof the fol-
lowing new subsection:
"(m) In computing any annuity under
subsections (a)-(d) of this section, the total
service of an employee who retires on an im-
mediate annuity or dies leaving a survivor or
survivors entitled to annuity includes, with-
out regard to the limitations imposed by sub-
section (e) of this section, the days of un-
used sick leave to his credit under a formal
leave system, except that these days will not
be counted in determining average pay or
annuity eligibility under this subchapter.".
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CONGRESSIONAL RECORD- HOUSE October 7, 1969
SEc. 204. (a) Subsection (b) of section "(B) $900; or
8340 of title 5, United States Code, is amend- "(C) $2,700 divided by the number of chil-
ad by inserting "1 percent plus" immediately dren; subject to section 8340 of this title. It
after the word "by". the employee or Member is not survived by a
(b) Subsection (c) (2) of such section is spouse, each surviving child is entitled to an
amended to read as follows: annuity equal to the smallest of-
"(2) For the purpose of computing the an- "(1) 75 percent of the average pay of the
nuity of a child under section 8341 (e) of employee or Member divided by the number
this title that commences on or after the first of children;
day of the first month that begins on or "(11) $1,080; or
after the date of enactment of the Civil "(iii) $3,240 divided by the number of
Service rletirement Amendments of 1969, the children; subject to section 8340 of this title."
Items $900, $1,080, $2,700, and $3,240 ap- SEC. 207. (a) The amendments made by
pearing in section 8341(e) of this title shall sections 201, 202, 203, and 206(a) of this Act
be increased by the total percent increases
allowed and in force under this section on or
after such day and, in case of a deceased an-
nuitant, the items 60 percent and 75 percent
appearing in section 8341(e) of this title shall
be increased by the total percent allowed
and in force to the annuitant under this sec-
tion on or after such day."
SEc, 205. The provisions of subsection (b)
(1), (d) (3), and (g) of section 8341 of title
5, United States Code, also shall apply in
the case of any widow or widower-
(1) of an employee who died, retired, or
was otherwise finally separated before July 18,
1966;
(2) who shall have remarried on or after
such date; and
(3) who; immediately before such remar-
riage, was receiving annuity from the Civil
Service Retirement and Disability Fund;
except that no annuity shall be paid by
reason of this section for any period prior to
the enactment of this section. No annuity
shall be terminated solely by reason of the
enactment of this section. Notwithstanding
the prohibition contained In the first sen-
tence of this section on the payment of an-
nuity for any period prior to the enactment
of this section, in any case in which the Civil
Service Commission determines that-
(1) the remarriage of any widow or
widower described in such sentence was en-
tered into by the widow or widower in good
faith and in reliance on erroneous informa-
tion provided by Government authority prior
to that remarriage that the then existing
survivor annuity of the widow or widower
-would not be terminated because of the re-
marriage; and
(2) such annuity was terminated by law
because of that remarriage;
then payment of annuity may be made by
reason of this section in such case, beginning
as of the effective date of the termination
because of the remarriage.
SEc. 206. (a) The first sentence of subsec-
tion (d) of section 8341 of title 5, United
States Code, is amended to read as follows:
"If an employee of Member dies after com-
pleting at least 18 months of civilian service,
the widow or dependent widower of the em-
ployee or Member is entitled to an annuity
equal to 55 percent of an annuity computed
tinder section 8339 (a)-(e) and (h) of this
title as may apply with respect to the em-
ployee or Member, except that in the compu-
tation of the annuity under such section, the
annuity of the employee or Member shall be
at least the smaller of (i) 40 percent of his
average pay, or (ii) the sum obtained under
such section after increasing his service of
the type last performed by the period elapsing
between the date of death and the date he
would have become 60 years of age."
(b) Subsection (e) (1) of such section is
amended to read as follows:
"(e) (1) If an employee or member dies
after completing at least 18 months of civilian
service, or an employee or Member dies after
retiring under this subchapter, and is sur-
vived by a spouse, each surviving child is
entitled to an annuity egtral to the smallest
of-
"(A) 60 percent of the average pay of the
employee or Member divided by the number
of children;
shall not apply in the cases of persons re-
tired or otherwise separated prior to the date
of enactment of this Act, and the rights of
such persons and their survivors shall can-
tinue in the same manner and to the same
extent as if such sections had not been
enacted.
(b) The amendments made by section
204(a) of this Act to section 8340 of title 5,
United States Code, shall apply only to an-
nuity increases which become effective un-
der such section 8340 after the date of
enactment of this Act.
(c) (1) The amendment made by section
206(b) of this Act shall become effective on
the first day of the first month which begins
on or after the date of enactment of this
Act.
(2) The annuity of each surviving child
who, immediately prior to the effective date
of such amendment is receiving an annuity
under section 8341(e) of title 5, United
States Code, or under a comparable provi-
sion of any prior law, or who hereafter be-
comes entitled to receive annuity under the
Act of May 29, 1930, as amended from and
after February 28, 1948, shall be recomputed
effective on such date, or computed from
commencing date if later, in accordance
with such amendment. No increase allowed
and in force prior to such date shall be
included in the computation or recomputa-
tion of any such annuity. This paragraph
shall not operate to reduce any annuity.
Mr. DANIELS of New Jersey (during
the reading). Mr. Speaker, I ask unani-
mous consent that the further reading
of the Senate amendment be dispensed
with and that it be printed in the RECORD.
The SPEAKER. Without objection, it
is so ordered.
There was no objection.
The SPEAKER. Is there objection to
the request of the gentleman from New
Jersey (Mr. DANIELS) ?
Mr. GROSS. Mr. Speaker, reserving
the right to object, and I do so in order
that we may have an explanation of the
action of the other body with respect to
this legislation and to ask a few questions
of the gentleman from New Jersey.
Particularly, Mr. Speaker, I would like
to know what additional benefits the
other body put into this bill and whether
the costs of the additional benefits are
covered?
Mr. DANIELS of New Jersey. Mr.
Speaker, will the gentleman yield?
Mr. GROSS. I yield to the gentleman.
Mr. DANIELS of New Jersey. I shall
be happy to explain.
The Senate amended the House bill,
H.R. 9825, by striking all language fol-
lowing the enacting clause and inserting
the language of S. 2754, as amended.
The Senate amendment retains all of
the provisions of the House-passed bill,
except minor technical and perfecting
changes. Exclusive of the liberalized sur-
vivor provisions and additional funding
mechanism added by the Senate amend-
relent, the only substantive change in the
House-passed version is with respect to
the rate of contribution applicable to
Members of Congress. The House version
continues the Members' contribution
rate at the present 7.5 percent whereas
the Senate version raises it to 8 per-
cent-no attempt being made in the Sen-
ate to retain the rate of 7.5 percent.
The Senate amendment made changes
in other respects, as to costs of crediting
military service, surviving spouses' bene-
fits, and surviving children's benefits.
With respect to costs, the total con-
tributions will amount to 14 percent,
and under the Senate-passed amend-
ments the normal costs will come to 13.98
percent, leaving a surplus of 0.02 percent.
Under the present cost operating sys-
tem, normal costs come to 13.86 percent
and, by virtue of the change made by the
State, the normal cost will be reduced
by 0.22 percent so that the new normal
cost of present benefits comes to 13.64
percent.
However, the House provisions would
add thirteen one-hundredths of 1 per-
cent and, by virtue of the liberalized
benefits added by the Senate, which
amount to twenty-one one-hundredths
of 1 percent, we arrive at a total new
normal cost of 13.98 percent of payroll,
which is 0.01 percent under the House-
passed bill.
The Senate amendment to title I pro-
vides that the cost of crediting military
service be financed by annual transfers
from the Treasury, out of money not
otherwise appropriated, to the retire-
ment fund in the same manner as it is
proposed to finance the interest on the
existing unfunded liability. Ten percent
of such costs would begin to be paid
starting in 1971, increasing by an addi-
tional 10 percent each year until, in 1980
and thereafter, the total costs would be
funded by direct transfer. These pay-
ments would begin at about $10 million,
rise proportionately over the i1ext. 20
years, and peak at approximately $300
million. Thereafter, these costs will
gradually decline to a relatively negli-
gible amount since military service
performed after 1956 will, generally, be
creditable under the social security sys-
tem. By so funding, the normal cost of
the benefit structure of the civil service
retirement system will be reduced by
0.22 percent of payroll, reducing present
normal cost from 13.86 percent to 13.64
percent. It will also result in reducing
the system's unfunded liability by $4.7
billion.
Under existing law an employee who
retires on disability---after completing
at least 5 years of service-is guaranteed
a minimum benefit of the smaller of (A)
40 percent of the average salary or (13)
the rate obtained under the general for-
mula after increasing the actual service
by the time remaining between the date
of disability retirement and the attain-
ment of age 60, if either (A) or (B) pro-
duces a greater rate than is earned by
virtue of his actual service. However,
the law stipulates that such guaranteed
rate is payable only to the disabled em-
ployee, and is not applicable in determin-
ing his spouse's survivor rate. Her bene-
fit is 55 percent of only his earned rate.
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October 7, 1969 CONGRESSIONAL RECORD - HOUSE H 9165
The Senate amendment removes the lat-
ter restriction, and extends to the sur-
viving spouse an annuity based upon the
higher guaranteed minimum benefit,
where applicable.
Under existing law the spouse and chil-
dren of an employee have survivor pro-
tection only in the event of his death
after completing at least 5 years' of serv-
ice. The Senate amendment would pro-
vide such protection upon the employ-
ee's death occurring after a total of 18
months of service-similar to the mini-
mum coverage requirement of the social
security system.
The amendment extends to the sur-
viving children of such short-term de-
cedents the same dollar benefits pro-
vided to children of over-5-years em-
ployees. However, its greatest effect is
with respect to the spouse's benefit. It
grants to the eligible spouse'the same
computation formula extended to the
spouse of a disability retiree; that is,
her rate would be computed on the basis
of 55 percent of a guaranteed minimum
disability benefit, if it exceeds the basic
earned annuity. In other words, the basic
rate would be determined as though the
employee had retired on disability as
of the date of his death in active service.
Present law grants basic survivor
annuity benefits to eligible children of
the smallest of: First, $50 per month per
child, second, $150 per month divided
by the number of children, or third, 40
percent of the employee's average salary.
Orphaned children's basic rates are, re-
spectively: First, $60 per month per`
child, second, $180 per month divided
by the number of children, or third, 50
percent of the average salary, whichever
is smallest. These basic rates are subject
to all automatic cost-of-living adjust-
ments occurring since 1965. Generally,
the current maximum monthly rates are
$61 and $183 for children with one
parent, and $72 and $216 for orphans.
The Senate amendment proposes a
fresh start principle by increasing the
respective children's basic amounts of
$50, $150, and 40 percent to $75, $225,
and 60 percent, and orphan's basic
amounts of $60, $180, and 50 percent re-
spectively to $90, $270, and 75 percent.
In application the present actual average
rates of $61 and $183 would be increased
to $75 and $225; the present actual aver-
age rates of $72 and $216 would be in-
creased to $90 and $270; and these new
basic rates would be further increased
by the percentage of all future cost-of-
living increases.
Mr. GROSS. Mr. Speaker, I thank the
gentleman for his explanation and say
to Members of the House that I am still
opposed f6-some provisions of this bill,
but if I read the signs correctly-and I
believe I do-there is no point in going
to conference with it.
I accept the fate of having been de-
feated on this issue when the measure
was originally before the House. I said
then, as I now reiterate, that this legis-
lation had the original worthy purpose
of bringing order out of chaos in the
funding of the Government employees
retirement fund, but was then converted
into a Christmas tree with goodies for
.almost everyone.
Let me repeat my belief that it would
be futile to attempt to overturn in a
conference the action of the House and
Senate. However, I still strongly oppose
enactment of this legislation in its pres-
entform.
Mr. Speaker, I withdraw my reserva-
tion of objection.
The SPEAKER. Is there objection to
the request of the gentleman from New
Jersey?
Mr. DERWINSKI. Mr. Speaker, reserv-
ing the right to object. The gentleman
from New Jersey has made an explana-
tion, but like my distinguished colleague,
the gentleman from Iowa, I recognize the
facts of life and feel that there is no
further point in debating this bill except
merely to clarify some things for the
Members. Does the gentleman have any
idea as to what cost will now be attributed
to the high 3-year-service feature, cal-
culated as to the impact on immediate
retirement of many people in the service?
Does the gentleman have any figures to
show the possibilities in that area?
Mr. DANIELS of New Jersey. I under-
stand a number of people will be retir-
ing shortly after enactment of the bill,
if that be the will of the President; I
have received many, many inquiries from
Members as to the status of this bill, both
after the House passed it and while ac-
tion was pending thereon in the Senate,
and since last week when the Senate
passed this bill. I believe there will be a
considerable number who will retire. This
bill will save, perhaps, the administra-
tion some embarrassment of firing peo-
ple to out back defense spending. Be-
cause by people retiring, it will also open
the doors for many young people to come
into the Government service, and for
younger employees to move up the ladder.
Mr. DERWINSKI. It is not my pur-
pose to go into unnecessary speculation
about the acts of this administration
unless we in Congress exercise some
leadership in this bureaucracy in doing
away with many of the programs we
have started. But like the gentleman
from Iowa, I feel that the Senate version
is an improvement on the bill passed
in the House. I think the gentleman
from New Jersey is correct in recom-
mending that we accept the Senate ver-
sion.
Mr. Speaker, now that the Senate has
worked its will on the civil service retire-
ment bill, H.R. 9825, and it is obviously
moving toward enactment, I would be de-
linquent if I did not make some observa-
tions which I feel are pertinent at this
point.
I first want to commend our distin-
guished colleagues in the other body for
improving in two instances a bill which
I did not favor as it passed the House.
One improvement is the increase from
71/2 percent to 8 percent of the retire-
ment deduction rate for Members of
Congress. Fairness dictates that if we
insist that all other Federal employees
pay an additional one-half percent into
the retirement fund that Members of
Congress should do the same.
I also admire the Senate action in
amending the bill so that costs attribut-
able to the crediting of military service
be financed annually by the same method
as the financing of interest on the un-
funded liability of the retirement fund.
It was, after all, the idea of Congress to
permit credit for military service and so
the cost should not be charged to the
fund as a whole, as It has in the past,
but should be covered by annual pay-
ments by the Government.
I must, however, restate my strong dis-
agreement with the provision remaining
in the bill which permits retirement serv-
ice credit for the calendar value of un-
used sick leave. This is a departure from
the basic concept that has governed the
use of sick leave since its inception in
the Federal system. The basis for sick
leave under our system is to insure
against the loss of income during periods
of illness. All employees have the same
right to draw upon sick leave if neces-
sary, but nothing is owed the employee
who enjoys good health and does not
have to draw upon his reserve. This sick
leave provision, as it becomes law, will
discriminate against the employee who
happened to be burdened with illness.
Mr. Speaker, I withdraw my reserva-
tion of objection.
The SPEAKER. Is there objection to
the request of the gentleman from New
Jersey?
Mr. MICHEL. Mr. Speaker, further re-
serving the right to object, did I cor-
rectly understand the gentleman to say
that under the bill about to be accepted,
if it is, that our contribution as Members
of Congress to the retirement fund will
be increased from 71/2 percent to 8 per-
cent?
Mr. DANIELS of New Jersey. Mr.
Speaker, will the gentleman yield?
Mr. MICHEL. I yield to the gentleman
from New Jersey.
Mr. DANIELS of New Jersey. Your un-
derstanding is correct. Our contribution
will be increased from 71/2 percent to 8
percent, with the Government contribut-
ing a similar sum into the retirement
fund.
Mr. MICHEL. Further reserving the
right to object, I should like to make the
observation that some of the newspapers
at home carry front-page accounts about
how we are raising our salary again,
raising our annuities. I have been op-
posed, frankly, to liberalizing that 5-year
high base to 3 years. Personally, I do
not like to see the increase from 71/2 per-
cent to 8 percent. I am grateful for what
I may get someday and I do not think it
ought'to be increased. The thought oc-
curs to me that our late senior Senator,
who died a few weeks ago, was a Member
of this body and a Member of the other
body since 1932, except for 2 years. Over
that vast expanse of years he contributed
to this retirement fund. In that particu-
lar kind of case, the Senator contributed
into the fund for 37 years and died with-
out realizing an annuity. Now his widow
qualifies, as I understand the system, for
a 55-percent survivorship of what the
Senator earned, but if she is in the twi-
light of her years, she may-never realize
in benefits anywhere near the amount
her husband had contributed to the fund.
There is provision, I believe, for the bal-
ance of premiums paid in to go to one's
estate, but that is it.
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H 9166 CONGRESSIONAL RECORD - HOUSE
Certainly it is not any real bonanza,
when one considers the amount of the
contributions over some 32 years.
Have there been any studies made of
the number of senior Members of this
body and the, other body who die after
contributing over a period of 20 or 30 or
40 years to this program and never fully
realize what they paid for in their 71/2 or
now 8 percent of salary deductions?
Mr. DANIELS of New Jersey. Mr.
Speaker, will the gentleman yield?
Mr. MICHEL. I yield to the gentle-
man from New Jersey.
Mr. DANIELS of New Jersey. Mr.
Chairman, I agree with the gentleman
from Illinois. There is no real bonanza
for the Members of Congress.
Our subcommittee did not go into the
particular subject matter the gentleman
has discussed, but I understand another
subcommittee did go into this matter
in considering the retirement benefits
for the civil employees of the Foreign
Service. I am not familiar with what that
study showed, but I fully agree with the
gentleman, that there are no "bundles
for Congress" in this bill, regardless of
what the news media says.
Mr. MICHEL. Mr. Speaker, I am
happy to hear the gentleman's response
to that question.
Mr. HAYS. Mr. Speaker, will the gen-
tleman yield?
Mr. MICHEL. I yield to the gentleman
from Ohio (Mr. HAYS).
Mr. HAYS. Mr. Speaker, I chaired the
subcommittee that went into this mat-
ter. As I said before, during the debate
on this bill earlier, this fund for Mem-
bers of Congress, if it were separated out
and stood alone, would show it has ac-
cumulated a bonanza for the Govern-
ment, in spite of the fact that when it
was passed everybody was blanketed in
without any prior contributions or with-
out having to go back and pay for prior
years of service, and in spite of the fact
that for about half the time or more of
the time, the Government did not.put its
share of contributions in.
I do not recall the figure off the top
of my head at this moment, but I think
it was approximately $12 million.or $16
million more which was paid in than has
ever been paid out-and that in spite of
the fact the Government did not make
its contribution and In spite of the fact
the people who were here in 1946, when
it was passed, and who had been here
for 20 or 30 or 40 years were blanketed
in. So there has not been really any steal
from the taxpayers at all.
Mr. MICHEL. I thank the gentleman.
Mr. Speaker, I withdraw my reserva-
tion of objection.
Mr. HOGAN. Mr. Speaker, I am very
pleased to have been a cosponsor of this
legislation which will resolve the financial
crisis facing the retirement fund today.
At the same time we are fulfilling an ob-
ligation long overdue our civil servants
by committing the Government to main-
taining the integrity of the civil service
retirement fund and insuring that there
will always be enough money in the fund
to permit payment of all benefits-in full
and on time-to ,all past, present, and
future Federal employees.
I urge the Members of this body to
give our Government workers one more
vote of confidence by unanimously ac-
cepting the Senate amendments to H.R.
9225, permitting prompt transmittal of
this measure to the President for his
signature into law, a moment long
awaited by civil service employees of the
Fifth District of Maryland.
The SPEAKER. Is there objection to
the request of the gentleman from New
Jersey?
There was no objection.
The Senate amendment was concurred
in.
A motion to reconsider was laid on
the table.
GENERAL LEAVE TO EXTEND
Mr. DANIELS of New Jersey. Mr.
Speaker, I ask unanimous consent that
all Members may have 5 legislative days
in which to extend their remarks on
H.R. 9825.
The SPEAKER. Is there objection to
the request of the gentleman from New
Jersey?
There was no objection.
RESIGNATION AS MEMBER OF NA-
TIONAL COMMISSION ON REFORM
OF FEDERAL CRIMINAL LAWS
The SPEAKER laid before the House
the following communication, which
was read :
OCTOBER 1, 1969.
Hon. JOHN W. MCCORMACK,
Speaker of the House of Representatives,
The Capitol.
DEAR MR. SPEAKER: It is with regret that
that I respectfully submit my resignation
as a member of the National Commission on
Reform of Federal Criminal Laws. As you
know, Mr. Speaker, I do not plan to run for
reelection to Congress and I think it appro-
priate that I be replaced at this time by an-
other Member of the House of Representa-
tives.
I enjoyed my service on the National Com-
mission on Reform of Federal Criminal Laws
with its distinguished Chairman, The Hon-
orable Edmund G. Brown.
Sincerely,
DON EDWARDS,
Member of Congress.
APPOINTMENT AS MEMBER OF
NATIONAL COMMISSION ON RE-
FORM OF FEDERAL CRIMINAL
LAWS
The SPEAKER. Pursuant to the pro-
visions of section 2(a), Public Law 89-
801, the Chair appoints as a member of
the National Commission on Reform of
Federal Criminal Laws the gentleman
from Illinois, Mr. MIKVA, to fill the exist-
ing vacancy thereon.
Mr. DULSKI. Mr. Speaker, I was ab-
sent from the House session on Monday,
October 6, because of a death in our
family in Buffalo, N.Y.
Had I been present and voting, I would
have voted "yea" on rollcalls Nos. 203,
204, and 205. On rollcall 202, I would
have voted "nay."
ANTI-INFLATION CAMPAIGN
(Mr. O'HARA asked and was given
permission to address the House for 1
October 7, 1969
minute and to revise and extend his
remarks.)
Mr. O'HARA. Mr. Speaker, on June 2,
I read into the RECORD a newspaper ar-
ticle describing how the Advertising
Council, an offshoot of the U.S. Chamber
of Commerce, was hoping to launch an
anti-inflation campaign to "condition
the collective mind so that when some-
thing is done, they will know it to be in
their best interests," The quote is from
an official of the Advertising Council.
Well, this administration has been
doing its best to fight inflation. And yes-
terday, the Bureau of Labor Statistics
of the U.S. Department of Labor an-
nounced that unemployment had risen
to its highest level in 2 years. The in-
crease-equal to one-half of 1 percent of
the entire labor force-was the biggest
monthly increase since the last time the
Republicans were in office.
We are told by the Washington Post:
Some administration economists, most
notably Assistant Treasury Secretary Murray
L. Weldenbaum, viewed the increase in job-
lessness as evidence the Government's anti-
inflation program is beginning to take hold.
Mr. Speaker, I do not think the people
of this country have yet had their col-
lective mind conditioned by the adver-
tising council to the point where they are
going to accept the administration's view
that a little unemployment is good for
you.
Prices continue to rise. The President
opposes tax relief for the middle-
income taxpayer, but supports more tax
relief for those who already have most
of the loopholes. The Federal Reserve
Board continues with its policies of in-
creasing the prices the banks can-charge
us to use our money.
Taken as a whole, Mr. Speaker, one
can only agree with the Assistant Secre-
tary of the Treasury. The administra-
tion's anti-inflation fight has indeed
begun to "take hold."
It has begun to reduce full employ-
ment so that business can keep labor in
line through fear of unemployment. It
has begun to generate public pressure
against domestic programs which might
improve the position of those most in
need. And it has done so without holding
down prices and profits for the natural
supporters of the Republican Party.
Mr. Speaker, I have a modest pro-
posal. If increased unemployment is go-
ing to be sold to us as an anti-inflation
measure, may I suggest that the unem-
ployment start with the guy who thought
up that argument?
RAILS, RULES, AND RUIN AT
FORT ROBINSON
(Mr. ADAMS asked and was given
permission to address the House for 1
minute, to revise and extend his remarks
and include extraneous matter.)
Mr. ADAMS. Mr. Speaker, the prob-
lem of inadequate rail service for pas-
sengers was the subject of a special
order last month and over 90 Members
have joined with me in sponsoring a
bill to authorize the Interstate Com-
merce Commission to require adequate
standards of service on the Nation's
passenger trains. This is a proposed so-
lution to part of the whole problem of
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 October 1, 1968
stance, article 14.01, Texas Code of
Criminal Procedure. I have qualms about
this proliferation of arrest without war-
rant.
I am willing to extend authority to
postal inspectors to make arrests in con-
nection with acts "directly injurious to
the Central , Government,"' and I would
give careful, and perhaps favorable, con-
sideration to extending it In the area
covered by the Post Office Code of 1872.
But I think to extend full police author-
ity to postal inspectors in the ' whole
range of offenses in which use of the
mail is one instance of 'Federal juris-
diction is to create a new, general Fed-
eral police force. This is too serious an
extension to donsider as merely inciden-
tal to a prohibition against mailing mas-
ter automobile keys.
Mr. DULSKI. Mr. Speaker, I yield 3
minutes to the gentleman from Pennsyl-
vania [Mr. Nix].
Mr. NIX. Mr. Speaker, I rise to express
my unqualified support of the conference
report on the bill, H.R. 14935, and urge
its adoption.
Mr. Speaker, I ask unanimous consent
to extend my remarks at that point in
the RECORD immediately following the re-
marks of the gentleman from New York
[Mr. DULSKZI.
The SPEAKER pro tempore (Mr. AL-
BERT). Without objection, it is so ordered.
There was no objection.
Mr. DULSKI. 1Vjr. Speaker, I move the
previous question on the conference re-
port.
The previous question was ordered.
The SPEAKER pro tempore. The ques-
tion is on the conference report.
The question was taken; and the
Speaker pro tempore announced that the
ayes appeared to have it.
Mr. GROSS. Mr. Speaker, I object to
the vote on the ground that quorum is
not present and make the point of order
that a quorum is not present.
The SPEAKER pro tempore. Evidently
a quorum is not present,
The Doorkeeper will close the doors,
the Sergeant at Arms will notify absent
Members, and the Clerk will call the roll.
The question was taken; and there
were-yeas 251, nays 62, answered
"present"-1, not voting 117, as follows:
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H9317
Fulton, Pa. McClory
Robison
Long, La. Pollock Sisk
Fuqua McCloskey
Rodino
McCarthy Pucinski Skubitz
Galifianakis McCulloch
Rosenthal
McDade Rarick Smith, Okla.
Garmatz McEwen
Roth
McMillan Reifel Snyder
Gettys McFall
Roybal
Macdonald, Reinecke Stanton
Giaimo MacGregor
St. Onge
Mass: Resnick Stratton
Gibbons Machen
Saylor
Mathias, Md. Reuss Taft
Gonzalez Madden
Schadeberg
Matsunaga Rogers, Colo. Teague, Calif.
Goodling Mahon
Schneebeli
May Ronan Tenzer
Gray Mailliard
Schweiker
Michel Rooney, N.Y. Thompson, N.J.
Green, Oreg. Martin
Schwengel
Minshall Rooney, Pa. Tunney
Green, Pa. Mathias, Calif.
Scott
Moore Rostenkowski Utt
Griffin Mayne
Shipley
Moss Roudebush Van Deerlin
Griffiths Meeds
Shriver
Murphy, N.Y. Roush Walker
Grover Meskill
Sikes
O'Hara, Ill. Rumsfeld Wilson, Bob
Gude Miller, Calif...
Slack
O'Konski Ruppe Wilson,
Hagan Miller, Ohip
Smith, Calif.
Olsen Ryan Charles H.
Halpern Mills
Smith, Iowa
Pepper St Germain Wolff
Hanley Minisli
Smith, N.Y.
Pettis Sandman Wyatt
Hanna Minjs
Springer
Pickle Satterfield Zablocki
Hansen, Wash. Mize
Stafford
Podell Scheuer
Harsha onagan
Staggers
Harvey Moorhead
J
Steed
So the conference report was agreed
Morgan
Hathaway '
Stephens
to.
Hawkins Morris, N. Mex.
Stubblefield
The Clerk announced the following
Hechler, W. &a. Morse, Mass.
Sullivan
airs
Heckler
Mips.
Mosher
Taylor
p
:
,
Henderson ;
Murphy, Ill.
Thompson, Ga.
On this vote:
Herlong
Natcher
Tiernan
Mr. St Germain for, with
Mr. Stuckey
Hicks
Nedzi
Tuck
.
against.
Horton
Nix
Udall
Hosmer
O'Hara, Mich.
Ullman
Until further notice:
Howard
O'Neal, Ga.
Vanik
Mr
Hebert with Mr
Gerald R
Ford
Hull
Hunt
O'Neill, Mass.
Ottinger
Vigorito
Waldie
.
.
.
.
Mr. Holifield with Mr. Utt.
Ichord
"Patman
Wampler
Mr. Aspinall with Mr. Teague of California.
Irwin
Patten
Watkins
Mr. Boggs with Mr. Adair.
Joelson
Pelly
Watson
Mr. Brademas with Mr. Snyder.
Johnson, Calif. Perkfr
Watts
Mr. Long of Louisiana with Mr. Cramer.
Johnson, Pa.
Philbin
Whalen
Mr. llelstoski with Mrs
Dwyer.
Jones, Ala.
Pike
Whalley
.
Mr. Brooks with Mr
Minshall
Jones, N.C.
Pirnie
White
.
.
Mr. Hamilton with Mr
Belcher
Karth
Kastenmeier
Poff
Price. Ill.
Whitener
idnall
.
.
Mr. Gilbert with Mrs. May.
Mr. Leggett with Mr. Bob Wilson.
Kelly
Purcell
William
Mr. Pucinski with Mr. Brown of Ohio.
King, N.Y.
Quie
Willis
Mr. Pepper with Mr. McDade.
Kluczynski
Quillen
Winn
Mr. Hungate with Mr. Pettis.
Kornegay
Rallsback
Wright
Ashmore with Mr. Berry.
Kyros
Randall
Wydler
itty, Kirwan with Mr. Pollock.
Latta
Rees
Wylie
Mr
Murphy of New York with Mr
Halleck
Lennon
Lipscomb
Reid, N.Y.
Rhodes, Ariz,
Wyman
Yates
.
.
.
Mr, Colmer with Mr. Brock.
Lloyd
Rhodes, Pa.
Young
Mr. Davis of Georgia with Mr. Keith.
Long, Md.
Rivers
Zion
Mr. Matsunaga with Mr. Reifel.
Lukens
Roberts
Zwach
Mr. Olsen with Mr. Bell.
NAYS-62
Mr. Farbstein with Mr., Michel.
Mr. Fisher with Mr. Refnecke.
Abernethy
Esch
Morton
Mr, Reuss with Mr. Rumsfeld.
Andrews, Ala.
Fountain
Myers
Mr
Rogers of Colorado with Mr
Cowger
Ashbrook
Ayres
Gathings
Gross
Nelsen
Nichols
.
.
.
Mr. Rostenkowski with Mr. Ruppe.
Battin
Gubser
Passman
Mr. Stratton with Mr. Sandman.
Bow
Haley
Poage
Mr. Rooney of New York with Mr. Stanton.
Bray
Hall
Price, Tex.
Mr. Edwards of Louisiana with Mr. Black-
Buchanan
Hammer-
Reid, Ill.
burn.
Burton., Utah
schmidt
Riegle
Mr. Evans of Colorado with Mr. Skubitz.
Bush
Harrison
Rogers, Fla.
Mr. Jarman with Mr
Wyatt
Byrnes, Wis.
Cederberg
Hutchinson
Jonas
Scherle
Selden
.
.
Mr. Thompson of New Jersey with Mr.
Chamberlain
Kleppe
Steiger, Ariz.
Brown of Michigan.
Clawson, Del
Kuykendall
Steiger, Wis.
Mr. Tenzer with Mr. Taft.
Cleveland
Kyl
Talcott
Mr. Walker with Mr. Smith of Oklahoma.
Collier
Laird
Teague, Tex.
Mr. Landrum with Mr. Burke of Florida..
Curtis
Langen
Thomson, Wis.
Mr. Wolff with Mr. O'Konski.
Davis, Wis.
McClure
Vander Jagt
Mr. Moss with Mr. Kupferman.
Denney
McDonald,
Waggonner
Mr. Tunney with Mr. Gurney.
Derwinski
Mich.
Whitten
Mr. Ashley with Mr. Gardner.
Devine
Marsh
Mr. Jacobs with Mr. Hansen of 'Idaho
Eckhardt
Montgomery
.
Mr. Macdonald of Massachusetts with Mr.
YEAS-251
Abbitt
Burke, Mass.
Dingell
Adams
Burleson
Dole
Addabbo
Burton, Calif.
Donohue
Albert
Button
Dorn
Anderson, il.
Byrne, Pa.
Dow
Anderson,
Cabell
Dowdy
Tenn.
Cahill
Downing
Andrews,
Carey
Dulski
N. Dak.
Carter
Duncan
Annunzio
Casey
Edmondson
Arends
Clancy
Edwards, Ala.
Barrett
Clark
Edwards, Calif.
Bates
Clausen,
Ellberg
Bennett
Don H.
Erlenborn
Betts
Cohelan
Eshleman
Bevill
Collins
Everett
Blester
Conable
Evins, Tenn.
Bingham
Conte
Fallon
Blanton
Corbett
Fascell
Blatnik
Corman
Feighan
Boland
Culver
Findley
Bolling
Cunningham
Fino
Bolton
Daddario
Flood
Brasco
Daniels
Flynt
Brinkley
de la Garza
Foley
Broomfield
Delaney
Ford,
Brotzman
Dellenback
William D.
Broyhill, N.C.
Dent
Frelinghuysen
Broyhill, Va.
Dickinson
Friedel
ANSWERED "PRESENT"-l
Mathias of Maryland.
Stuckey
Mr. Zablocki with Mr. Moore.
-
Mr. Van Deerlin with Mr,
Roudebush.
NOT VOTING-117
Mr. Charles H. Wilson with Mr. McMillan.
Adair
Conyers
Hamilton
Mr. McCarthy with Mr. King of California.
Ashley
Cowger
Hansen, Idaho
Mr. Kee with Mr. Icafsten.
Ashmore
Cramer
Hardy
Mr. Pickle with Mr. Podell.
Aspinall
Davis, Ga.
Hays
Mr. Fulton of Tennessee with Mr
Fraser
Baring
Belcher
Dawson
Diggs
Hebert
Helstoski
.
.
Mr. Gallagher with Mr. Diggs.
Bell
Dwyer
Holifield
Mr. Brown of California with Mr. Conyers.
Berry
Edwards, La.
Hungate
Mr. "nays with Mr. Hardy.
Blackburn
Evans, Colo.
Jacobs
1M1r. Ryan with Mr. Dawson.
Boggs
Farbstein
Jarman
Mr. Sisk with Mr. Scheuer.
Brademas
Fisher
Jones, Mo.
Mr
Roush with Mr
Resnick
Brock
Ford, Gerald R. Ka tezf
.
.
.
Mr
Ronan with Mr
Rarick
Brooks
Fraser
.Kee
.
.
.
Brown, Calif.
Fulton, Tenn`
Keith
Mr. Rooney of Pennsylvania with Mr.
Brown, Mich.
Gallagher
King, Calif.
Satterfield.
Brown
Ohio
Gardner
Kirwan
,
Burke, Fla.
Gilbert
Kupferman
Mr. CHAMBERLAIN and Mr. CEDER-
Celler
Gurney
Landrum
BERG changed their votes from "yea"
Colmer
Halleck
Leggett
to "nay."
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H 9318 CONGRESSIONAL RECORD - HOUSE October 1, 1968
Mr. SMITH of California changed his
vote from "nay" to "yea."
Mr. STUCKEY. Mr. Speaker, I have a
live pair with the gentleman from Rhode
Island [Mr. ST GERMAIN] If he had been
prese>;it he would have voted "yea." I
voted "nay." I withdraw my vote and
vote "present."
The result of the vote was announced
as above recorded.
The doors were opened.
A motion to reconsider was laid on the
table.
PERSONAL EzPLANATION
Mr. CUNNINGHAM. Mr. Speaker, I
wholeheartedly, support the conference
report to accompany H.R. 14935, just con-
cluded. I originally introduced legisla-
tion placing restrictions on the mail or-
der movement of master car keys which
passed the House overwhelmingly. The
Senate added a provision which caused
the matter to go to conference, and I
wish to add that I also wholeheartedly
support the addition to the bill made by
the Senate committee and adopted by
the conference committee. I was named
a conferee on this legislation.. The con-
ferees met on a Monday and r was in my
district on Saturday and Sunday preced-
ing the conference. I fully intended to be
Present to vote in favor of this confer-
ence report, but due to travel irregular-
ities I was not able to return in time. Had
I been present I would have, as noted,
agreed to the, conference report and
would have signed the report.
Having introduced legislation to stop
the mail-order traffic in master car keys,
which keys have greatly added to the
number of car thefts in the Nation, I was
pleased that this measure originally
passed the House by a comfortable mar-
gin. I also was thoroughly familiar with
the problem involving the wage board
employees, which provision was added by
the other body. I thoroughly support this
provision, as noted above, and had it not
been for my travel difficulties I would
have been at the conference and signed
the conference report.
CIVIL SERVICE RETIREMENT
FINANCING
Mr. DANIELS. Mr. Speaker, I move
that the House resolve itself into the
Committee of the Whole House on the
State of the Union for the consideration
of the bill (_R. to amend sub-
chapter, III o f czapte r 83 of title 5,
United States Code, relating to civil serv-
ice retirement, and for other purposes.
The SPEAKER pro tempore.. The ques-
tion is on the motion offered by the gen-
tleman from New Jersey.
The motion was agreed to.
IN THE COMMrrrrz OF THE WHOLE
Accordingly the House resolved itself
into the Committee of the Whole House
on the State of the Union for the consid-
eration of the bill H.R. 17682, with Mr.
McFALL In the chair.
The Clerk read the title of the bill.
By unanimous consent, the first read-
ing of the bill was dispensed with.
Mr. McFALL. Under the rule, the gen-
tleman from New Jersey [Mr. DANIELS]
will be recognized for 30 minutes, and
the gentleman from Pennsylvania [Mr.
CORBETT], will be recognized for 30 min-
utes. The Chair recognizes the gentleman
from New Jersey [Mr. DANIELS).
Mr. DANIELS. Mr. Chairman, I yield
myself such time as I may require.
(Mr. DANIELS asked and was given
permission to revise and extend his re-
marks.)
Mr. DANIELS. Mr. Chairman. I rise to
urge my colleagues on both sides of the
aisle, Democrats and Republicans, to give
their strong support to the legislation
before you today, H.R. 17682, the major
purpose of which is to improve the fi-
nancing and funding practices of the
civil service retirement system, and to
provide certain limited, but needed, im-
provements in the benefits structure of
the system within the framework of the
new financing approach.
It is a good bill, a sound bill, and the
product of several months of intense
work, study and consideration by the
House Subcommittee on Retirement, In-
surance, and Health Benefits in conduct-
ing extensive public hearings, executive
sessions and conferences with official
representatives of agencies of the legis-
lative and executive branches:
The Honorable John W. Macy, Jr.,
Chairman of the U.S. Civil Service Com-
mission.
The Honorable Philip S. Hughes,
Deputy Director of the Bureau of the
Budget.
The Honorable Elmer B. Staats, Comp-
troller General of the United States, and
others.
This bill contains a six-pronged fi-
nancing approach, the first three of
which-dealing with normal cost, future
unfunded liability, and the present un-
funded liability-are the recommenda-
tions-the unanimous recommenda-
tions-of the honorable gentlemen whose
names I just mentioned.
The remaining three provisions of the
financing proposal dealing with future
cost of living adjustments, Department
of Defense reimbursement for military
service, and Government agency reim-
bursement for unused sick leave, are the
recommendations-the unanimous rec-
ommendations-of the members of the
subcommittee which gave this legislation
serious study and consideration.. Also, I
think the Members of this House should
know that this bill was reported favor-
ably by the full Committee on Post Office
and Civil Service without a dissenting
vote.
Therefore, H.R. 17682 is the product,
in part, of the common effort of the of-
ficials of the Civil Service Commission,
the Bureau of the Budget, and the Gen-
eral Accounting Office; and, in part, by
the members of the Retirement Subcom-
mittee whose devoted attention and ener-
gies have been directed to a most in-
volved and complex subject.
During the debate on the rule for con-
sideration of this legislation, the House's
attention was directed to certain por-
tions of Chairman Macy's views on the
reported bill, as set forth in his letter
of June 12, 1968.
I would invite the House's attention to
the letter from the Chairman of the Civil
Service Commission dated March 22,
1968, which appears on page 29 of the
report; and to that portion of his letter
of June 12, 1968, appearing on page 31
of the report from which I quote:
Title I of the bill H.R. 17682 includes pro-
visions for (a) employee-agency sharing of
full normal costs, (b) 30-year amortization
of newly created unfunded liability, and (c)
permanent indefinite appropriations equal
to interest on the unfunded liability at-
tributable to already er;4eted legislation. If
H.R. 17682 contained only these financing
proposals, the Commission would endorse
the bill and urge its eal:y enactment.
Accordingly, the Commission, the
Budget Bureau, and the Comptroller
General support the major financing
proposals of this bill. However, the com-
mittee does not concur with Chairman
Macy's statement that the subcommit-
tee's additional financing provisions do
not strengthen the administration's pro-
posals. As pointed out on page 16 of the
report, the financin provisions added
by the committee will have the effect of
further increasing income to the fund
and decreasing disbursements from the
fund beyond that contemplated in the
administration's approach. The fund
balance will grow proportionately and
the growth in the unfunded liability will
become stabilized at an earlier date than
otherwise anticipated.
I would also direct .your attention to
page 24 of the report which states:
The Civil Service Commission estimates
that present employee-agency contributions
of 13 percent of total payroll fall short by
0.86 percent of payroll in covering the normal
cost of present benefits. By increasing the
combined contribution rate to 14 percent (7
percent each from employees and agencies),
annual income to the fund will be increased
by approximately $220 million ($110 million
from employees and agencies, respectively);
$190 million thereof is necessary to cover
present normal cost, and $30 million thereof
will be sufficient to fully finance the normal
cost of benefit liberalizations provided
herein.
It is emphasized that any additional
unfunded liabilities incurred under the
provisions of title II of the bill will be
covered by section 103(g) of the bill.
I want to publicly commend the-rank-
ing majority and minority members of
the subcommittee-the gentlemen from
North Carolina, Congressmen HENnER-
SON and BROYHILL, the gentleman from
New York, Congressman HANLEY, the
gentleman from Pennsylvania, Congress-
man JOHNSON, and the gentleman from
Georgia, Mr. THOMrsoN, for their contri-
butions toward the development of a
good and sound piece of, legislation--
H.R. 17682.
The Committee on Post Office and
Civil Service believes that the civil serv-
ice retirement system is one of its most
important responsibilities. It is an es-
sential part of a modern employment
system designed to attract and retain
employees of the caliber to conduct the
complex business of government. It
contributes importantly to the financial
security of millions of past, present and
future Federal employees and their de-
pendents. There should never exist the
slightest doubt of the system's ability to
meet its commitments to these people.
The results of an in-depth study con-
ducted by our standing Subcommittee on
Retirement, Insurance, and Health
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CONGRESSIONAL RECORD - HOUSE
Benefits over an extended period of time
most assuredly attest to the fact that
any doubt which exists as to the sys-
tem's ability to meet future commit-
ments is attributable to funding prac-
tices which have been grossly inadequate
since the, program's very inception in
1920.
Federal employees have always con-
tributed the full amount set by law, but,
while the Government has contributed
substantial amounts to the trust fund,
it has failed to appropriate regularly
and systematically, on a concurrent
basis, sufficient funds to met the ultimate
cost not covered by employees' contribu-
tions.
Retirement system financing has been
a problem of continuing concern to the
Congress, to its respective committees,
and to officials of the executive branch.
The history of actuarial reports has in-
dicated successively for a long time past
an increasingly pessimistic view with re-
spect to actuarial costs and liabilities
under the escalating benefits and other
liberalizations in the specifics of the re-
tirement programs. In past years, several
methods for determining appropriations
to meet the Government's obligation to
the system have been considered, and
some have been adopted. However, the
attitudes of various administrations,
Congresses, and respective congressional
committees has changed from time to
time, but facing the problem realistical-
ly has been long delayed.
At the end of the fiscal year 1968 the
unfunded liability of the system ap-
proached $55 billion dollars. Under pres-
ent 'financing practices, the unfunded
liability will continue to grow by more
than $2 billion every year, sometimes
much more. Upon full implementation-
in the fiscal year 1970-of the latest sal-
ary statute, and subsequent cost-of-liv-
ing annuity adjustments, the deficiency
is expected to exceed $60 billion dollars.
By 1975 the disbursements will begin to
exceed annual income of $31/2 billion.
Thereafter disbursements will continue
to escalate appreciably under a rela-
tively static income, and result in a de-
clining fund balance. Consequently, to
meet benefit payments, all disburse-
ments in excess of current income will
have to be met from the fund balance.
Without additional funding, that bal-
ance will be totally exhausted by 1988.
Immediately thereafter, disbursements
will exceed income by $31/2 billion, and
will require direct appropriation to meet
benefit payments.
During ensuing years, progressively
higher amounts would be required until,
at the turn of the century, the necessary
direct appropriations will exceed $41/2
billion. These substantial sums, it is em-
phasized, will be an addition to the ap-
proximate .$31/2 billion income received
by the trust fund from then-active em-
ployee and agency contributions.
The historical pattern of employee-
employer contributions to the retirement
fund supports the conclusion that de-
ficiencies-that is, accrued liability for
which contributions to the fund have
not been made-are the responsibility of
the Government as the employer. The
major causes of such deficiencies have
been:
First. Creditable service for which
neither the employee nor the employer
contributed-such as free credit for mil-
itary service, and for Federal civilian
service during which the employee was
not currently subject to the program.
Second, general wage increases which
result in benefits based on a higher pat-
tern of salaries than that upon which at
least a portion of contributions is based.
Third, liberalizations applying to ben-
fits based on past and/or future service
without a commensurate increase in con-
tributions.
Fourth, loss of compounded interest
income which would have been earned if
the accrued liability had been fully
funded.
The Committee on Post Office and
Civil Service feels strongly that, in fur-
therance of the objective of prudent
management of the Government's finan-
cial affairs, it is important that the Con-
gress provide a definite plan to improve
the system's financing.
The major purpose of the legislation is
to improve funding practices so as to
maintain confidence in the soundness of
the civil service retirement and dis-
ability fund, and to assure that the nec-
essary money is available when needed to
pay the annuities of Federal retirees and
survivor annuitants-in full and on time.
The legislation also provides certain
limited, but needed, improvements in the
benefit structure of the program within
the limits of the new financing approach.
The bill contains a six-pronged ap-
proach, as follows:
First. Normal cost financing through
equal employee-agency contributions is
retained. Because of the inadequacy of
current contributions, implementation of
normal cost financing of the existing
benefit structure-including the legisla-
tion contained in title II-requires an
immediate 1-percent increase in the
combined contribution rate from 13 to 14
percent of payroll, in the case of em-
ployees, and from 15 to 16 percent of pay-
roll in the case of Members, effective in
January 1969.
Further, the Civil Service Commission
is authorized, when it determines an ad-
justment in contributions is necessary in
the future to meet full normal cost at-
tributable, primarily, to further liberal-
izations of benefits applicable to active
employees, to notify the Congress of the
proposed increase. The higher percentage
rates, fixed at the nearest one-fourth of
1 percent, will become effective following
90 days of continuous session of Congress
after such notice is given, unless before
then either the House or the Senate has
passed a bill providing a different adjust-
ment or sharing ratio-which would pre-
clude the contemplated action-or either
body has passed a resolution specifically
disapproving the proposed increase.
Second. The costs of future incremen-
tal unfunded liabilities which will result
from benefit liberalizations for the active
work force are to be fully financed by
the Government through direct appro-
priations to the fund, in equal annual in-
stallments, over 30-year periods.
Third. Direct appropriations, under
permanent indefinite authority, will be
made to meet the Government's obliga-
tion for the presently increasing un-
H[ 9319
funded liability which arises from legis-
lation already enacted, including, that
created in title II of this legislation, in
amounts equivalent to interest on the
future accrued defliencies. This respon-
sibility will be fulfilled by transfers of
moneys from the Treasury, beginning on
a modest scale in 1971 and progressively
increasing by 10 percent each subsequent
year. In 1980 and thereafter, the amounts
will equal the full equivalent of interest
on the unfunded liability.
Fourth. Any future automatic cost-of-
living adjustments and newly authorized
annuity increases will be paid from the
fund only until the end of the fiscal year
which follows the ficsal year in which
they may become effective. Direct an-
nual appropriations will be required to
continue their payment beyond that time.
Fifth. The Department of Defense, be-
ginning in 1970, will be required to reim-
burse the fund annually for annuity costs
attributable to crediting periods of mili-
tary service.
Sixth. Employing agencies will be re-
quired to finance, as a payroll cost, the
full cost of granting retirement service
credit for unused sick leave-as provided
in section 204 of the bill-by depositing
into the fund the commuted retirement
value of accrual estimated to be equal
to 25 percent of cash value.
In the committee's judgment, this ap-
proach, while somewhat new in concept
and mechanics, is sound and will accom-
plish the desired results by providing in
full for the permanent financing of the
civil service retirement system.
The legislation also provides for limited
improvements in certain areas of the
benefit structure of the retirement pro-
grain. The normal cost and future fi-
nancing of these changes are attainable
within the realm of the preceding fi-
nancing provisions:
First. To include as basic pay com-
pensation given in addition to the normal
base pay of a civilian position. It con-
templates inclusion of all remuneration
for personnel services-overtime, differ-
entials, premium pay, and so forth-for
purposes of deductions, agency contribu-
tions, and the computing of the average
salary.
Second. To modify the average salary
computation period from 5 to 3 years.
Third. To include for service com-
putation purposes the length of service
represented by the calendar value of un-
used sick leave to the credit of a retiring
employee, or an employee dying in serv-
ice and leaving a spouse or survivor eligi-
ble for annuity benefits.
Fourth. To add 1 percent to all future
automatic cost-of-living percentage ad-
justments so as to compensate for the
5-month period elapsing between the
Consumer Price Index attainment of a
rise of 3 percent and the subsequent pay-
ment of the increase.
Fifth. To extend to all survivor annui-
tants whose remarriages occur on and
after July 18, 1966, the amendment in
Public Law 89504.
Mr. Chairman, the magnitude of the
problem of retirement financing is such
that it is imperative that Congress take
action toward a prompt and positive
solution. While the budgetary impact of
this legislation will be sudden and sharp,
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It will, nevertheless, be far less drastic
than if present financing practices con-
tine _t richanged.
In view of the urgency to enact a def-
inite program of action to insure the
system's; ability to fulfill its future obli-
gations, I strongly urge the adoption of
MR. 17682.
Mr. CORBETT. Mr. Chairman, I yield
myself such time as I may consume.
(Mr. CORBE TT asked and was given
permission to revise and extend his
.remarks.) -
Mr. CORBETT. Mr. Chairman, I wish
to compliment the distinguished gentle-
man from New Jersey [Mr. DANIELS] for
The fine work that he and his subcom-
mittee have performed on this very com-
:Plex problem and I further wish to urge
the House to overwhelmingly pass this
bill, even in the face of assurances that
it is not going to be taken up in the
other body.
Mr. Chairman, there; is no need of our
getting into a long hard debate on this
bill, because I am afraid that the job will
have to be done all over again next year.
Mr. Chairman, there is no question
that the retirement scheme of the
financing must be overhauled and it must
be made- certain that payments to re-
tirees are guaranteed in perpetuity.
Mr. Chairman, there are many con-
ilicting opinions as to how the refinanc-
ing program should be changed. How-
ever, every agency concerned agrees that
it can work with this bill if it becomes
law. And, again, I strongly urge that it
be adopted.
Mr. Chairman, there will be an amend-
ment or two offered, one with which I
am familiar and will support whole-
heartedly; that is the one which takes
away from the Civil Service Commission
the power to change-the rate of employee
contributions when it deems it necessary
or desirable.
Mr. Chairman, in many respects this
is a day of reckoning for the Congress. As
with anyone who consistently spends far
in excess of income, and who neglects to
provide for future contingencies, the day
comes when he either faces up, gets his
affairs in order, or suffers the con-
sequences.
At the moment we must face up to the
unpleasant prospect that a vital Federal
employee fringe benefit, one which holds
the promise for the future for many mil-
lions of persons, faces complete bank-
ruptcy.
We must face up to the fact that the
civil service retirement fund is $55 bil-
lion in the red. The unfunded liability
is growing by more than $2 billion every
year, and by 1975 disbursements will ex-
ceed annual income. The cash balance in
the fund will be totally exhausted by
1988. Thereafter, if we are to continue to
meet our, responsibilities and obligations
under the retirement program, we will
have to make direct appropriations be-
ginning with $31/2 billion a year, and
escalating upward to nearly $5 billion a
year, 40 years from now.
We have also got to face up to the fact
that this situation did not develop over-
night, and that it is the product of years
of inadequate financing, neglect, and
mismanagement. While employees have
always paid their full, fair shares of re-
tirement costs set by law, the Govern-
ment has not done so.
We have, indeed, appropriated moneys
to the fund from time to time, but we
have not done so regularly and system-
atically, or in amounts sufficient to meet
the Government's share of operating the
program. Additionally, over the years we
have enacted a succession of benefit
liberalizations and pay raises for which
we made no plans whatsoever to pay
either the normal cost or the unfunded
liability.
As a result of all this, we now must
get our affairs in order, as contemplated
by this bill, or suffer the consequences.
H.R. 17682 is the product of many
months of study and work by the mem-
bers of the Committee on Post Office and
Civil Service. It is our answer to the
many expressions of concern about the
fund which have been voiced in this
Chamber, and elsewhere, over the past
few years, and it represents our commit-
ment that the integrity of the civil serv-
ice retirement system will be maintained,
and that there will always be enough
money in the retirement fund to permit
payment of all benefits, in full and on
time, to all past, present, and future
Federal employees.
Mr. Chairman, there are probably as
many methods, and schools of thought,
with respect to financing the civil serv-
ice retirement system as there are actu-
aries and economists in the country.
Therefore, I think it is important to
note that the major financing proposals
contained in H.R. 17682 were carefully
worked out with, and approved by, the
Bureau of the Budget, the Department
of the Treasury, the Comptroller Gen-
eral, and the Civil Service Commission.
In the final analysis, these are the agen-
cies which will have to live and work
with any plan we enact.
I personally have reservations with
regard to some of the proposals con-
tained in this bill, and I must admit
that I am not too optimistic that future
Congresses will appropriate the massive
sums of money every year that this bill
contemplates. However, I do feel this
legislation is a giant step forward in get-
ting our affairs in shape, and I urge
its prompt approval.
(Mr. MATHIAS of Maryland (at the
request of Mr. CORBETT) was granted
permission to extend his remarks at this
point in the RECORD.)
Mr. MATHIAS of Maryland. Mr.
Chairman, on June 19, 1968, I intro-
duced several bills to improve the civil
service retirement system; namely, H.R.
17983, H.R. 17984, and H.R. 17985, which
were referred to the Committee on Post
Office and Civil Service. I wish to add
some comments at this time which un-
derscore the need for action in this area.
H.R. 17983 would provide new length-
of-service requirements for Federal em-
ployees who, retire after age 55 and be-
fore age 60. Under present law, an em-
ployee may retire at age 55 with 30 years
of service and at age 60 with 20 years
of service. Thirty years of service is re-
quired between these ages. Thus, an em-
ployee, age 59, needs 30 years of service
to retire while an employee, age 60, can
retire after 20 years of service. This situ-
ation is remedied by H.R. 17983 which
provides a sliding scale; for those retir-
ing between age 55 and 60, as follows:
Service required
Age: Years
55----------------------------------- 30
56 -------------------- --------------- 28
57----------------- --------------------- -------------- 26
58---------------------------------- 24
59---------------------------------- 22
60---- ----------------------------- 20
H.R. 17682 as reported to the House
by the Committee on Post Office and
Civil Service contains no provision for
new length-of-service requirements for
Federal employees who retire after age
55 and before age 60. 1 submit that the
need for such legislation is apparent and
would be beneficial both to the Govern-
ment and to the employees. More em-
ployees would choose to retire thus
making room for younger people and in-
creasing possibilities for advancement.
H.R. 17682 as reported by the commit-
tee is a constructive measure in many
respects and reflects the careful study of
the committee. However, my own studies
as well as the views of Federal employee
union leaders whose judgment I respect
have indicated the need for prompt
action in areas either not covered or
covered partially by H.R. 17682. For that
reason I have introduced these bills to
plug up the loopholes-in fairness to the
employees and survivors concerned as
well as the best interests of the Govern-
ment as an employer.
The next bill which I introduced on
June 19, 1968, was H.R. 17984. Under
present law, when an employee retires
he must elect to receive a reduced an-
nuity if he wishes to provide a survivor's
annuity for his spouse. If his. spouse
should die first, he continues to receive
the reduced annuity after his spouse's
death. H.R. 17984 would provide for re-
storing the full-rate retirement annuity
to the retired employee after the death
of his spouse. It seems to me that it is
highly improper to continue to collect
from the retired employee for a benefit
which would be inapplicable in his
situation. In addition to the empty lone-
liness of being without his spouse, the re-
tired employee must continue to pay for a
survivor annuity under existing law.
H.R. 17984 is based upon the principles
of fairness and justice and corrects this
obvious inequity. My bill also provides
that if the retired employee subsequently
remarries, he could provide a survivor's
annuity for his new spouse by again
electing to receive a reduced annuity and
repaying the increased amounts paid to
him after the death of his first spouse.
H.R. 17682 contains some excellent re-
tirement liberalizations: however, there
are no similar provisions to cover these
situations.
Mr. Chairman, the last of my current
bills on this subject introduced an
June 19, 1968, was H.R. 17985. This legis-
lation would provide that retirement
annuities of Federal employees would be
computed on the basis of a high 3-year-
average salary rather than on the high
5-year-average salary under present law.
H.R. 17682 as reported to the House by
the Committee on Post Office and Civil
Service contains a similar provision. The
plight of elderly retired Federal em-
ployees who are attempting to maintain
themselves and their dependents after a
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lifetime of dedicated public service on Government. There is inequity in a situ- or liberalized benefits, increases in an-
their annuities points to the need for ation where the, law permits one widow nuities, interest on the unfunded liability,
improvement in the present method of to remarry and retain her annuity but and the cost of crediting military service.
ti
iti
compu
ng annu
es. Various costs which demands another widow to refrain from
hit these retirees the hardest are for marriage or suffer the loss of her annu-
such items ,.s drugs, medical services and ity,solely, on the basis of a calendar date.
surgical appliances, among many others. My bill corrects this inequity.
Many retirees and survivors are existing I regard liberalization of Federal se-
at a marginal level because of inadequate tirement benefits as essential if the Gov-
annuities and rising living costs. Upon ernment wishes to retain qualified per-
retirement Federal employees should be
assured of decent annuities,. Under the
present law, basic annuities are based
upon the following formula:
First, 1.5 percent of average salary
multiplied by first 5 years of service, plus,
second, 1.75 percent of average salary
multiplied by second 5 years of service,
plus, third, 2 percent of the .average sal-
ary multiplied by years of service in ex-
cess of 10 years.
H.R. 17985 would compute the basic
annuities on a straight 2 percent of the
average service multiplied by years of
service. H.R. 17682 does not contain such
provision. The computation on a straight
2-percent basis would provide the Fed-
eral employee with an annuity more ade-
quate to maintain him and his depend-
ents during his retirement years. The
employee who is engaged in hazardous
occupations has his annuity presently
computed on the basis of 2 percent and
to follow the same ratio of the rate of
computation my bill would increase the
'rate to 2.5 percent. This provision is not
included in H.R. 17682,
ployee's annuity on a 2.5-percent basis
cannot exceed a total of 15 years of serv-
ice. My bill would remove this inequitable
restriction. H.R. 17682 has no such
provision.
H.R. 17682 would, make a number of
changes designed to improve the financ-
ing _of the retirement program of the
Federal civilian service as well as to pro
vide fringe retirement benefits. In order
to meet the future increases in the cost of
the retirement program H.R. 17682 would
increase the contribution rate from 6.5 to
7 percent. My bill, H.R. 17985, would like-
method of stabilizing the unfunded lia-
bility of the retirement fund. .
Benefits to annuitants under the civil
service retirement system are improved
in several ways under this legislation.
A key feature is a reduction from the
highest-5- to the highest-3-year earning
period determining average salary for
annuity computation purposes, The re-
sultant annuities under this formula will
be more favorable and in my opinion are
completely justified and overdue.
This legislation also provides that over-
time and other compensation payments
be included in determining an employee's
basic pay. I fully agree with the commit-
tee that overtime, differentials, and pre-
mium pay should rightfully be included
in determining the average pay in the
computation of the annuity benefit.
In addition to these improvements,
H.R. 17682 creates a system of crediting
unused sick leave for retirement purposes
and provides for the continuation or res-
toration of a survivor annuity when the
survivor is remarried on or after July 18,
1966. This latter feature eliminates a
troublesome inequity in present law.
Mr. Chairman, I believe that H.R.
17682 reflects sound legislative action to
stabilize and preserve the integrity of the
civil service retirement fund and I
strongly recommend its prompt approval.
Mr. DANIELS. Mr. Chairman, I yield
3 minutes to the distinguished gentle-
man from North Carolina [Mr. HENDER-
SON].
(Mr. HENDERSON asked and was
given permission to revise and extend his
remarks.)
Mr. HENDERSON. Mr. Chairman, the
chairman of the Subcommittee on Re-
tirement, Insurance, and Health Bene-
fits, the gentleman from New Jersey [Mr.
DANIELS], indeed, deserves the gratitude
of all Federal employees and annuitants
who have a vested interest in their re-
tirement system, for the deep concern
and great courage he has displayed in
dealing with a serious and complex mat
ve always
e over wheiiiuug majority or Federal the Government's share, over the years the `atleague has described in detail
employees would be willing to pay their for one reason or another, has fallen the features of the committee's proposal
share for added retirement benefits. short of the necessary amount to meet for the remen system, and the civil
serv-
modest
share feature of H.R. 17985 Is that the ultimate costs of all of the benefits ice retirement system, and the modeit would apply the benefits of the Federal payable under the system. improvements in benefits proposed
Salary and Fringe Benefits Act of 1966 As the committee report aptly points therein.
to all remarriages, of. the spouse regard- out, the historic pattern of employee-em- The real problem of retirement financ-
less of when the remarriage occurred or ployer contribution to the retirement ing, as I see it, is primarily one of budg-
when Federal employment terminated. fund supports the conclusion that defi- etary and legislative responsibility. Re-
The said 1966 act contained provisions ciencies are the responsibility of the Gov- sponsible procedures require that the
under which the.survivor annuity of a ernment as an employer. full retirement system costs involved in
spouse would not terminate because of This legislation would improve the fi- Federal program and legislative actions
remarriage after age 60 or if the survivor nancial structure of the system through be fully disclosed and the necessary steps
annuity is terminated because of remar- the following steps: be taken to cover those costs when pro-
riage before age 60, the annuity may be Employee and agency matching con- gram and legislative decisions. are made.
reinstated if the marriage is later ter- tributions are increased from 61/2 to 7 It is useful, I believe, in considering
minated. These provisions apply under percent, effective in January 1969; the budgetary and overall financial as-
the present law if the employee was The Civil Service Commission is au- pects of H.R. 17682, to think of it in
working for the Federal Government on thorized to adjust the rate of contribu- three basic parts:
or after July 18, 1966, and the remarri- tion as necessary to meet the normal cost First, current service liabilities. Each
age occurs on or after July 18, 1966. H.R. of retirement benefits, subject to veto ac- year's service by each Federal employee
17682 would also apply the provision to tion by the Congress; adds to the future benefits which the re-
all remarriages which occur on or after The Government shall through appro- tirement system must eventually pay out.
July 18, 1966, regardless of when the em- priations hereafter pay the increases in Since the employee only contributes part
ployee stopped working for the Federal the unfunded liability created by any new of these benefits through a payroll de-
sonnel now and in the years ahead. The
-bills which I introduced on June 19, 1968,
would provide for improvements in the
Federal retirement system which are
vitally needed to update the system. My
bills recognize that employees who have
given years of faithful service to the
Government are entitled to fair and de-
cent annuities at the end of their careers.
Mr. CORBETT. Mr. Chairman, I yield
5 minutes to the distinguished gentleman
from North Carolina CMr. BROYHILL],
the ranking member of the subcommittee
that handled this bill.
(Mr. BROYHILL of North Carolina
asked and was given permission to revise
and extend his remarks.)
Mr. BROYHILL of North Carolina. Mr.
Chairman, the legislation before us, H.R.
17682, charts a sound and studied course
to stabilize the financing and funding
practices of the civil service retirement
system, and I urge approval of the meas-
ure.
The major purpose of this legislation is
to insure the integrity of the retirement
fund so that the Government's obliga-
tions to Federal retirees and survivor an-
nuitants will be met in full and on time.
The construction of this bill, which is the
result of extensive hearings, conferences,
and executive committee sessions, fully
meets that purpose.
The legislation also adds significant
and needed improvements in the benefit
structure of the retirement system.
The present condition of the retire-
ment fund which has a current unfunded
liability of more than $55 billion and
which will have exhausted its balance by
1987 at the present rate of benefit pay-
ments is the result of inattention and in-
adequate financing practically since its
While Federal employees ha
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duotion, the remainder must be paid by ployee amounts to 13.86 percent of his taken to meet it each time legislation is
the Federal Government. salary. Further changes in the system proposed and enacted. H.R. 17682 makes
Each Mari-year of Federal employ- recommended by the Committee on Post provision for handling this situation by
meat, therefore, has a retirement. cost at- Office and Civil Service will raise normal amortizing such additional costs by ap-
tached to it which is just as truly an cost to 13.93 percent. The combined propriation payments into the fund
employment cost as the wages and sal- agency-employee contribution amounts scheduled to relatively coincide with out-
axles currently paid out. To the extent to 13 percent, almost a full percentage flow from the fund.
that the sum of the Federal and em- point lower than full-cost coverage would Of paramount importance is that as-
ployee current contribution rate covers require. As a consequence, the bill speci- pect relating to the unfunded liability
actuarial costs, the retirement benefits fies a contribution rate of 7 percent for which has already been incurred, and to
covered by each current man-year of Federal agencies and 7 percent for em- be further incurred, by failure to prac-
employment "pay for themselves" and ployees, and a corresponding one-half- tice full-cost funding in prior years. As
acid nothing to the unfunded liability of of-l-percent increase with respect to pointed out in the committee's report on
the retirement fund. Members of Congress, to cover the full this legislation, the system's existing $55
Second, the potential increase in un- normal cost of present benefits and those billion unfunded liability, while being
funded liability for past service, caused contemplated in this legislation, begin- substantially affected by consistent lib-
by pay raises and liberalizations of re- ning in January 1969. Thereafter, the eralizations, recurring salary increases,
tirement benefits. Every time a Federal committee's recommendation provides and annuity adjustments, is largely at-
pity raise is enacted, the retirement value, for future contribution adjustment which tributable to the loss of interest on the
and the cost, of the past servic! of Fed- imposes a discipline whereby the normal deficiency-an amount that today ap-
eral employees is increased. After a pay cost of future liberalizations will be rec- proximates $1 and three-fourths an-
raise, all the past years of service will .be ognized and financed on a pay-as-you-go nually.
multiplied against a new and increased basis. The Board of Actuaries of the civil
high average salary in determining re- This latter provision has given rise to service retirement system has repeatedly
tirement benefits. Automatically, the some expressions of fear that the Civil recommended that the Government, with
cost to the Federal Government of future Service Commission may arbitrarily pro- respect to the system's deficiency, do no
retirement payments increases, and none pose further increases in employee con- less than appropriate the amount of ac-
of the Increase is covered by employee tributions-a fear which, in my opinion, cruing interest thereon. The committee
contributions. Similarly, when benefit has no foundation. It is inconceivable, does, indeed, concur with the actuaries
liberalizations are enacted, or current within the terms of this particular pro- that the existing unfunded liability
annuitants given a benefit increase, or vision, that the Commission could justify should not be allowed to continue to soar
new groups blanketed into the retire- a proposed increase without explicitly by reason of the system's not being fully
ment system, the value of future retire- attributing such justification to a subse- funded in terms of complete actuarial
ment payments Increases. Unlike the quent and specific action of the Con- costs. H.R. 17682 provides for minimizing
first category---currently accruing liabil- gress. Moreover, any possible arbitrary further "loss of interest" growth, and for
ities-these costs are not related to the motivation would necessarily be tem- the stabilization of those deficiencies
current level of employment, but simply pered, first of all, by the fact that agency within the next decade.
reflect the impact of pay raises or bene- contributions would be proportionately Mr. Chairman, the Government's fi-
fit liberalizations on past service. It is increased; and, secondly, by the Possi- nancial obligation is clear. The Govern-
vrorthy of noting that each $1. of gen- bility-as contemplated in the bill-that ment's recognition of, and action to meet,
eral pay increase entails a retirement Congress may prescribe a sharing ratio that obligation is imperative. The situ-
cost of $2.50. other than 50-50 on such an occasion. ation has been studied intensively during
- Third, the unfunded liability which It is emphasized that requiring em- the past few years by the Civil Service
now exists because the civil service retire- ployees to share the normal cost on an Commission, the Bureau of the Budget,
rient system was not adequately funded equal basis does not mean that em- the Cabinet Committee on Federal Staff
In past years. Even if the Federal and ployees are paying half the cost of the Retirement Systems, and the Board of
employee contribution rates were suffi- retirement system. Continuing improve- Actuaries and has been discussed ex-
cient to cover fully the currently accru- ments in salary rates and benefit liberal- tensively with congressional committees.
ing liabilities, and even if appropriations izations have increased-and undoubted- it is time, now, that Congress face the
were made to cover the increase in un- ly will continue to increase-the retire- problem realistically and adopt a definite
funded liabilities due to future pay raises ment value of past service, whose cost the program to meet that problem. Such a
or benefit liberalizations, the retirement Federal Government bears fully. program is offered in this bill. I urge this
system would still have a large and grow- The principle of full-cost coverage for body's full support and unanimous adop-
Ing unfunded liability. This arises from currently accruing service liabilities is tion of H.R. 17682.
the fact that in prior years the retire- not so much a matter of financing, but Mr. CORBETT. Mr. Chairman, I now
ment system was not funded to cover its of full-cost disclosure. We ought to know yield 2 minutes to the gentleman from
full actuarial costs. And since the fund is what the full costs of any Federal pro- Washington [Mr. PELLY] .
far below the full actuarial level, it fore- gram are. Even if the entire Federal re- (Mr. PELLY asked and was given per-
goes interest payments each year which tirement system were on a "pay as you mission to revise and extend his re-
add still further to the actuarial deficit. go" basis, principles of good budgeting marks.).
There, then, are the three major would require that in making evaluations Mr. PELLY. Mr. Chairman, H.R. 17682
:3naneing aspects of the retirement fund, of Federal programs we "impute" a re- is to strengthen the financial soundness
and each of these aspects is covered by tirement cost of each Federal employee of the civil service retirement system.
this legislation, in the light of sound hired. For years, I have advocated some such
oudgetary and financial principles. Of equal importance is that aspect of action. When I started calling for the
It is essential to good budgeting that funding which relates to increases in Government to meet its obligation to the
each Federal program be judged and past service liabilities. Here again, full- retirement system, the fund was owed
evaluated In the light of its full costs. cost disclosure Is important. When the some $40 billion by the Government, and
Each man-year of civil service employ- Executive considers, for transmission to since then Federal payments are further
ment represents a cost to the Federal Congress, and when the Congress itself behind so that Uncle Sam is delinquent
Government, not only in terms of direct considers pay increase or benefit liber- at least $55 billion. So, I strongly favor
wages and salaries, but also in terms of alization legislation, these considerations the estabilshment of a plan to restore
what that man-year of employment adds should be based on a full awareness of the integrity of the civil service retire-
to the cost of the retirement system. Fed- the future costs to the taxpayer of the ment system.
eral agency contributions, together with increased retirement payment which will I note that both the Civil Service Com-
employee contributions, should therefore result from the proposed actions. Every mission and the Bureau of the Budget,
cover the full amount of what each cur- pay raise and benefit liberalization has a which in reality is the President, oppose
rent year's service by a Federal employee pricetag for increased retirement pay- this bill in its present form. For this
adds to retirement costs. ments on past service. Those additional reason, I am sure it will never be en-
At the present time, the normal cost payments will be a cost to the taxpayer. acted into law. I note too, that during
of each year's service by a Federal em- The pricetag should be known and action consideration of the rulemaking this bill
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in order, it was stated that any action To control, and eventually stop, growth Yet, we have been able to carry that
load plus adding to the survivor benefits.
by the House would be a complete exer- of the unfunded liability;
cise in futility because the Senate has To keep fund receipts ahead of dis- We have been able to carry that load
not even held committee hearings on it, bursements, and prevent depletion of the with the payments made by the Congress,
lus in our own in-
ur
till h
d
nor is any such hearigh intended before fund;
the close of the 90th Congress. For these To prevent excessive buildup of the
and other reasons, I did not support the fund in advance of actual need for the
rule. money; and
However, since 'I approve of much To assure payment of earned benefits,
which this bill would accomplish, and in full and on time, without awaiting
slnee the legislative record of today's de- appropriation action to provide funds for
bate may implement action in the next benefits already due.
Congress, I intend to support this bill Our colleague, the chairman of the
today. Perhaps passage of this measure subcommittee, has cogently set forth the
will point up, if nothing else, the dire dimensions of the critical problem of fi-
need for Congress to come up with a nancing this important program, and has
long range proposal to fund the civil presented, concisely, and clearly, the
service retirement and disability fund. committee's program of action to resolve
Meanwhile, I regret that the Johnson- that problem.
Humphrey administration has failed to Mr. Chairman, I urge the adoption of
offer and support a program along the this vitally important legislation.
lines of H.R. 17682. Mr. DANIEL& Mr. Chairman, I yield 3
Finally, I believe increased benefits for minutes to the gentleman from Penn-
retired civil service workers, as provided Sylvania [Mr. DENT].
In this bill, are very much needed. (Mr. DENT asked and was given per-
T urge passage of H.R. 17682, mission to revise and extend his re-
Mr. DANIELS. Mr. Chairman, I yield marks.)
such time as he may consume to the dis- Mr. DENT. Mr. Chairman, I have asked
tiiiguished chairman of the committee, for these three minutes first of all to
the gentleman from New York [Mr. say that I am supporting the proposal
DULsKI], as it is before us. However, I would say
(Mr. DULSKI asked and was given that the time has come when we must
permission 'to revise and extend his re- do a little straight thinking on the mat-
marks.) ter of improved governmental pensions
Mr. DULSKI. Mr. Chairman, I rise in as we differentiate between Government
support of H.R. 17682. First, I wish to pensions, service pensions, pensions in
commend the distinguished chairman of private enterprise, and pensions in in-
the Subcommittee on Retirement, Insur- dividual annuity plans.
ante, and Health Benefits, the gentle- As chairman of the General Labor
man from New Jersey, Congressman Subcommittee, I have the duty to study
DokrgxcK V. DANIELS, for the leadership and to research the 1,255,000 individual
he has demonstrated in bringing before private and industrial pensions plans in
the House a bill which embodies the the United States, and I find that there
aCommittee's major legislative effort of are many differences in the plans and
this session of the 90th Congress. The that each of them have at least two or
bill was reported by the Committee on three different principles and concepts
Post Office and Civil Service without a that make them questionable as to
dissenting vote. whether those who are'paying into the
The continual deficiency increases in funds are receiving their just return.
the civil service retirement and disabil- In making these studies we were asked
ity fund ultimately will deplete the fund if we would look into the so-called mem-
unless action is taken to forestall this ber's pension fund. In looking over the
tragedy. Thereafter, direct appropria- member's pension fund, we discovered
tions will be required each year, in ad- some very strange figures that seem to
dittlon to employee and employing agency have escaped the notice of those who
contributions, in order to meet benefit have the authority over the civil service
payments as they fall due. Unless steps funds.
are taken to eliminate, or at least halt Out of over 800,000 pensioners right
the growth of the unfunded liability, the now under the Government pension plan
fund balances will be drawn down and there are only 235 Members of Con-
substantial direct appropriations will be gress who are retired.
required to meet future obligations. In figuring out the amount of money
H.R. 17682 proposes- paid in, I find that in the 21 years which
A system to meet full estimated costs we have the statistics on, for the first
of retirement, including costs of present 91/2 years the Government did not pay
benefits, costs of benefits already earned one cent of its contribution to the Mem-
but due to be paid in the future; hers' pension fund. Yet, we have been
To provide for costs of benefits result- able by contributions of Members alone
ing from future legislation, including to have carried the load to the extent
general pay increases, and ease the im- we have paid $15,214,000 in benefit pay-
pact of these costs on the budget for sev- ments to all the retirees and their fami-
oral.years into the future; lies we have paid from the fund.
To increase contribution rates of em- In the meantime we have also in-
ployees and agencies in January of 1969, creased the payments to retirees who
and thereafter as required ,by future lib- were under contract prior to the in-
eralizations, to cover normal cost of the creased benefit payments under the 1957
benefits in effect; amendments and 'we find we increased
, Ta provide a measure of "braking" ef- the payments to those who retired prior
few on pressures for undue liberaliza- to 1959 by over 55 percent without any
additional contributions being made.
p
ave a s
an
s
dividual fund at the same time of well
over $12,000,000.
If you study these figures-and I had
the civil service people themselves make
out this evaluation-if the Government
had paid its share into the Members'
fund, separate and distinct from the re-
gular civil service fund, which incident-
ally can be figured a little more realis-
tically than ours can be simply because
there is a measure of security in employ-
ment in the civil service whereas there
is no guarantee or tenure in the Con-
gress-if they were to pay their share-
and if we would have had a 5-percent in-
terest rate during those years, which
was available-we would have had a
surplus at this time of $25,800,000 in the
Members' fund.
This Committee should study the
Members' fund separately, in my humble
opinion, while they are doing the job
they are trying to do to bring the public
employees fund into what they call a
fiscal responsible basis. They must also
recognize there should be a separation
of the two funds, because there is little
relationship between the Members' fund
and its payments in and out of the total
fund and the public employees fund as
it is operated under the civil service. We
are now receiving an interest rate, mind
you in 1967, of 3.81 percent and we re-
ceived 3.94- percent in 1947 when we
started. We receive less interest and it is
not compounded but is an annual rate of
interest than what we received 21 years
ago when they started the fund.
Study will show that the pension of
Members should be separated and it
ought to be made solvent and not based
upon the theory of private insurance
companies because private insurance
companies sign an annuity contract on
the basis that every person who takes
out the contract is going to live the full
number of years and receive the full ben-
efits. Congress does not operate on that
basis.
Congress and other public funds do
not operate to make profits for stock-
holders are not used to build up port-
folios, equity holdings, and other capital
acquisitions which allow the payment of
interest to policyholders and dividends
to stockholders.
A public service fund need not carry
the full insurance reserve that stock
companies carry.
The public funds can and will operate
soundly on a flat reserve of a limited
number of years benefits in the fund re-
serve and an automatic increase in con-
tributions if the fund drops below a set
floor of reserves.
It must be a pay-as-you-go plan such
as social security and most State plans
now in existance.
Mr. CORBETT. Mr. Chairman, I yield
5 minutes to the gentleman from Vir-
ginia [Mr. SCOTT], a member of the Sub-
committee on Census and Statistics.
(Mr. SCOTT asked and was given
permission to revise and extend his
remarks.)
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1119324 CONGRESSIONAL RECORD - HOUSE October 1, 1968
Mr. SCOTT. Mr. Chairman, I rise in tirees, and their families, have a vital First, require Government and em-
favor of the bill. stake. ployees to share normal costs, including
I do not think there is any doubt All of the Government's several staff those resulting from future liberalization
among the membership of this body that retirement systems are costly and, even of benefit provisions;
its retirement fund should be actuarially without the liberalizations advocated by Second, identify clearly and recognize
sound. Certainly, few of us can disagree employees and retirees, costs are soarin