CIVIL SERVICE RETIREMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP72-00337R000400020022-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 11
• Document Creation Date: December 16, 2016
• Document Release Date: June 1, 2005
• Sequence Number: 22
• Publication Date: October 2, 1969
• Content Type: OPEN

October 2, 19~9proved For ~ ~ WRA%00400020022-9 S 11789
managers of the bill and the other Sen-
ators who have labored so long on this
legislation.
I have had recent opportunity to talk
with Virginia miners-some of them vic-
tims of accidents, others of lung disease
resulting from their occupation.
The Senate has taken a step today
toward improving the conditions for
safety in the mines and reducing the
chances.for contraction of pneumoconi-
osis by workers in the coal mines.
Mr. MANSFIELD. Mr. President, while
I was unable to attend the opening
sessions of the debate on this measure
which is designed to up-date our coal
mine industry and provide miners with
long-needed protection, it was. with great
pleasure that I witnessed the highly
thoughtful debate today. The over-
whelming passage of this measure rep-
sents a splendid achievement for the
miners of our Nation.
Much of the credit, I must say, be-
longs to the distinguished Senator from
New. Jersey (Mr. WILLIAMS). All of us
appreciate the long hours he devoted to
preparing this measure both in commit-
tee and while it was pending before the
Senate. The high caliber of that prepa-
ration was exhibited in the wide accep-
tance of the proposal. We are grateful.
Our thanks go also to the distinguished
senior Senator from New York (Mr. JAV-
ITS) who joined constructively and with
characteristic cooperation to assure this
fine success. Other Senators played vital
roles, as well. Noteworthy was the
contribution of the distinguished Sen-
ators from West Virginia (Mr. RAN-
DOLPH and Mr..BYRD). Representing a
great. mining State they understand well
the grave problems. of unsafe mines. and
mining operations. They contributed Im-
mensely to the discussion.
Of course, the distinguished senior
Senator from Kentucky (Mr. COOPER)
must be singled out for his contribution.
Though his views differed to some extent
with some. features of the proposal, he
urged his position with great advocacy
and the deep sincerity which was always
welcome. The same may be said for his
colleague, the distinguished junior Sen-
ator from Kentucky (Mr. CooK). The
Senator from Vermont (Mr.. PROUTY)
also deserves our gratitude for his con-
tribution to the discussion and for co-
opearting to assure final disposition with
such efficiency.
. Finally, I wish to thank all Members
of the Senate for their cooperation. I
think each of us may take great pride
in the passage of this measure. We have
gone on record unequivocally in support
of this great issue.
Mr. KENNEDY. Mr, President, I. con-
gratulate the Senator from New Jersey.
(Mr. WILLIAMS) for his outstanding
leadership as he has led this important
legislation through to passage today. His
activities, and the final result today, are
very impressive. I commend, as well, the
Senator from. New York (Mr. JAVITS),
the Senator from Kentucky (Mr.
COOPER), the Senator from Vermont
(Mr. PROUTY), and the Senators from
West. Virginia (Mr. RANDOLPH and Mr.
BYRD).-
CIVIL SERVICE RETIREMENT
Mr. MANSFIELD. Mr. President, I ask
unanimous consent that the Senate pro-
ceed to the consideration of Calendar No.
333, S. 2754.
The PRESIDING OFFICER. The bill
will be stated by title.
The ASSISTANT LEGISLATIVE CLERK. A
bill (S. 2754) to amend subchapter III
of chapter 83 of title 5, United States
Code, relating to civil service retirement,
and for other purposes.
The PRESIDING OFFICER. Without
objection, the Senate will proceed to its
consideration.
Mr. MANSFIELD. Mr. President, with
the concurrence of the distinguished
chairman of the committee, I should like
to yield at this time to the distinguished
minority leader.
LEGISLATIVE PROGRAM
Mr. SCOTT. Mr. President, may I ask
the distinguished majority leader what
is the order of business from here on
out? What is to be done on the pending
measure, and what does the majority
leader plan thereafter?
Mr. MANSFIELD. Mr. President, in
response to the questions raised by my
distinguished colleague, the minority
leader, there is a hope-how good it is
I do not know--tthat we might be able
to finish the pending business tonight.
Whether or not we finish it tonight or
tomorrow, it will be followed by the John
F. Kennedy Center bill, Calendar No. 316,
and that, in turn, will be followed by the
District of Columbia revenue bill, Calen-
dar No. 427, and that in turn by S. 7,
Calenader No. 346, the water pollution
control bill..
It is anticipated that either tonight or
tomorrow morning, we will bring up for
reconsideration the Peace Corps'meas-
ure, which I understand has been cleared
all around.
That, to the best of my knowledge, is
the situation as we see it.
Mr. SCOTT. I thank the distinguished
majority leader.
CIVIL SERVICE RETIREMENT
The Senate resumed the consideration
of the bill (S. 2754) to amend subchapter
III of chapter 83 of title V, United States
Code, relating to civil service retirement,
and for other purposes.
Mr. McGEE. Mr. President, I sent to
the desk amendments to the pending
measure, S. 2754, and ask unanimous
consent that the amendments be agreed
to en bloc. These are perfecting amend-
ments in language, or updating of dates,
recommended by the administration, and
have nothing to do with the substance or
any controversial parts of the bill. I ask
unanimous consent that they be agreed
to en bloc.
The PRESIDING OFFICER. The clerk
will state the amendments.
The assistant legislative clerk pro-
ceeded to read. the amendments.
Mr. McGEE. Mr. President, I ask
unanimous consent that further reading
of the amendments be dispensed with.
The PRESIDING OFFICER. Without
objection, it is so ordered. The amend-
ments will be printed in the RECORD.
The amendments are as follows:
On page 8, line 7, change the section desig-
nation from "SEC. 201." to "SEC. 201. (a) ".
On page 8, line 12, strike out the words
"period of" and insert in lieu thereof the
word "total".
On page 8, line 12, insert the following new
subsection "(b)":
"(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
have been deducted or deposited with respect
to his last five years of civilian service, or, in
the case of a survivor annuity under section
8341(d) or (e) (1) of this chapter, with re-
spect to his total service."
On page 12, in lines 1 and 16, strike out
the word "consecutive".
On page 14, beginning on line 6, strike out
all down through line 14 and insert in lieu
thereof the following:
"(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 provision of any
prior law, or who hereafter becomes 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
recomputation of any such annuity. This
paragraph shall not operate to reduce any
annuity."
Mr. McGEE. Mr. President, the pend-
ing legislation relates to civil service
retirement.
The PRESIDING OFFICER. The Chair
would inquire of the Senator from Wyo-
ming if he wishes that these amendments
be agreed to prior to his presentation.
Mr. McGEE. If that is in order, Mr.
President.
The PRESIDING OFFICER. Without
objection, the amendments are agreed to
en bloc.
The Senator from Wyoming may pro-
ceed.
Mr. McGEE. Mr. President, this legis-
lation is a result of neary 3 years of care-
ful study and recommendation by the
Committees on Post Office and Civil
Service to enact legislation resolving the
financial difficulties of the civil service
retirement and disability fund and to
make certain Improvements in the bene-
fits offered employees of the Federal
Government through the retirement
plan.
Each Senator has on his desk a copy
of the public hearings which our Sub-
committee on Retirement held on this
legislation, as well as a copy of the com-
mittee report recommending enactment;
so I will not dwell at length on the in-
tricacies of the bill except to describe
briefly the major purposes involved.
Title I relates to resolving the long-
standing problem of adequately financ-
ing the civil service retirement system.
Ever since its creation in 1920,.the sys-
tem has had a financial liability which
was not properly funded. This was caused
originally by permitting credit for all.
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civil service performed prior to August
1. 1920, and it has over the years ac-
cumulated a total unfunded liability of
$57.7 billion. It is "unfunded" because
the amount of money collected from the
employees and contributed by the Gov-
ernment, when invested at interest, will
not pay the debt which the Government
owes to all employees.
Let me point out that none of this
liability results from any failure on the
part of our civil service employees to pay
their share. They have always paid what-
ever the law required, originally 2.5 per-
cent of their gross salary, and now 6.5
percent of their gross salary.
The liability is solely the result of the
Government's failure to live up to its
part of the bargain. In the early years,
no money was contributed by the Gov-
ernment to the fund. After 1928 the
amount contributed was not sufficient
to meet fully the future costs, and it
was not until 1957 that Congress by law
required agency contributions at a rate
equal to the employee's contribution. So
all that time, the fund lost earnings on
money that would have been invested
had it been contributed by the Govern-
ment, and we call that the "lost interest
on the unfunded liability." In addition,
changes in the retirement law, statutory
salary increases, inclusions of new groups
of employees, and other liberal changes
in the law create additional unfunded
liability because no contribution is made
to pay the cost of crediting past serv-
ice.
Title I seeks to resolve this problem
permanently. In the first place, the lost
interest on the unfunded liability as well
as the amount of annual annuity pay-
ments based on military service will be
paid directly from the Treasury into the
retirement fund. To soften the impact
upon the budget, we will start at 10 per-
cent and gradually move up to full pay-
ment over a 10-year period. By fiscal
year 1980, the Treasury will pay di-
rectly to the fund approximately $3 bil-
lion each year, and at that time the
unfunded liability will cease to grow any
larger on account of the loss of interest.
Second, title I authorizes the Con-
gress to appropriate each year whatever
amount of money is necessary to prevent
an increase in the unfunded liability re-
sulting from statutory changes In the re-
tirement law or salary increases which
affect the future liability of the fund.
These payments would be amortized over
a 30-year period at a level rate. At the
end of 30 years, the payments would
come to an end and because of the pay-
nments, the unfunded liability would not
have increased.
That is title I in a nutshell. Our com-
mittee has worked for several years on
this problem. The status of the fund has
been a serious problem. We must act now
to insure the future stability of the re-
tirement program so that those who re-
tire from the Federal service will never
have their annuities jeopardized. The
Bureau of the Budget, the Civil Service
Commission, the House of Representa-
tive's Committee on Post Office and Civil
Service. all of the members of the House
Appropriations Subcommittee on Inde-
pendent Offices, and the Senate Com-
mittee on Post Office and Civil Service
endorse and support this remedy for the
unfunded liability.
The requirement that the Treasury
pay the annual cost of crediting military
service for civil service retirement pur-
poses was given our very careful consid-
eration. The idea first arose some years
ago when the then chairman of the Sen-
ate Committee, Senator Olin Johnston,
recommended that the Department of
Defense he required to reimburse the
fund for the military service added to
en employee's retirement credit. Our
committee considered that proposal and
we also considered charging the cost to
the Veterans' Administration. But in the
last analysis, we determined that the cost
for military service should not be borne
by any one agency of the Government. It
is a benefit to those who have served in
the Armed Forces, which is a general
responsibility of the Government. Origi-
nally, Congress idea was to credit such
service for men who had their career
In the Federal civil service Interrupted
()it account of war. Congress deemed that
they should not lose retirement credit
under such circumstances if they re-
turned to the Government and retired on
a civil service annuity. There are thou-
sands of employees in those circum-
stances; but there are also thousands of
employees whose career was military
rather than civilian, and who retire after
30 years in the Army or the Navy, and
carne into the civil service. Subsequently,
alter 5 years' civilian service, they may
be eligible to retire and have their entire
military service credited toward civil
service retirement if they give up their
military retired pay, or if they were re-
tired from the military on account of a
combat-connected disability.
The result is that nonveteran em-
ployees pay a portion of their contribu-
tion for a retirement benefit which they
do not receive and which in many cases
will pay a retirement benefit to a retired
oltlcer or enlisted man who spent 20 or
25 or 30 years in the Aimed Forces. I am
sure my colleagues have heard a number
of complaints from constituents concern-
ing this particular quirk in the law. With
that in mind, our committee recom-
mends that the Government generally
pay this cost, that it not be charged to
the Army or the Navy or the Veterans'
Administration or the retirement fund
itself. As in the case of the interest on
the unfunded liability, the impact of the
payment would be softened by amortiz-
ing it over a 10-year period, beginning at
about $9.5 million and increasing to
about $195 million over a 10-year period.
Finally. Mr. President, title I increases
the amount of contribution by employees
and each agency of the Government.
Presently, employees, including congres-
sional employees, pay 6.5 percent of the
gross annual pay into the retirement
program, and each agency contributes
6.5 percent of its payroll into the system.
Members of Congress pay 7.5 percent
of their annual salary, and an equal
amount Is contributed by the appropria-
tions available for congressional opera-
tions.
tinder the new rate, each employee
will contribute 7 percent of pay, effective
in January 1971. each congressional em-
ployee will contribute 7.5 percent, and
each Member will contribute 8 percent.
The total additional contribution into
the system will be about $240 million-a
year, based on next year's payroll. The
total contribution will be 14 percent, and
the total cost of the program after the
effective date of the amendments in title
IT, will be 13.98 percent of payroll.
Title II makes certain very basic
changes in the Civil Service Retirement
Act to improve the system. Five of these
were included in the bill which passed
the House a couple of weeks ago:
First, changing the high 5 to the high 3
for computing civil service annuities;
Second. including accumulated sick
leave as service for an employee who re-
tires with sick leave to his credit;
Third, adding 1 percent to the cost-of-
living adjustments for annuitants which
are made from time to time on the basis
of Consumer Price Index.
Fourth, permits the widow of a Federal
employee who died or retired before the
act of July 18, 1966, to remarry and con-
tinue to receive her annuity if she is
past 60 years of age; and
Fifth, permits an employee of the Con-
gress to receive the 2.5-percent computa-
tion formula for all years of service. He
would pay an additional 1 percent for
this improved formula.
In addition to these changes the Sen-
ate bill exempts up to $3,000 of civil
service annuity from Federal income tax-
ation, and improves the survivor annuity
protection for employees or disability-
retired employees.
Some of these features are well known
to all Members. Changing the high 5 to
the high 3 is an effort to make more rele-
vant the annuity which an employee re-
ceives in relation to the salary he was re-
ceiving at the time of his retirement.
There is not anything magic about the
high 5. It has been in the law for 39
years, and it is time to recognize that re-
tirement annuities should be as closely
related to the standard of living the em-
ployee was purchasing and enjoying at
the time of his retirement as we can
make them.
Adding sick leave to an employee's re-
tirement credit resolves a very basic
problem, because although employees are
paid for their accumulated annual leave
at the time of retirement, they give up
all of their sick leave. One result is that
employees tend to call in sick quite fre-
quently in the last year or two before they
retire. When an employee retires on dis-
ability, it is standard practice to use up
all of his sick leave before leaving office.
So the Government pays at full value for
accumulated sick leave in many cases.
In other cases, an employee who has en-
joyed good health and good conscience
gives up 2.000 hours or so of accumulated
sick leave for which he receives no credit
or compensation.
The additional 1-percent adjustment
in annuities recognizes that our national
productivity continues to increase, and
that there is more to maintaining a rea-
sonable standard of living after retire-
ment than just chasing after the con-
sumer price indicators.
The change in the retirement compu-
tation for the employees of the Congress
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S 11791
makes their retirement computation The amendments provide that when this huge deficit, now totaling $61,000,-
identical to that of Members of Con- an employee dies after completing 18 000,000, and the committee's proposal to
gress-2.5 percent for congressional serv- months' service under the Civil Service correct the present intolerable situation
ice, and 2.5 percent for up to 5 years of Retirement Act; he has a vested annuity which if allowed to continue will bank-
military service. For this they will pay for survivor annuity purposes only. His rupt the Federal retirement fund in 1.8
an extra 1 percent each year. widow is entitled to at least 55 percent years.
The exclusion of up to $3,000 of civil of 40 percent of his average salary or 55 The Federal retirement fund was es-
service annuities from Federal income percent of his annuity projected to age tablished in 1920 to provide retirement
taxation is a goal that retired civil service 60, whichever is less; and his children income for all Federal employees. The
employees have sought for many years. would be entitled to the lesser of $900, initial employee contribution of 21/2 per-
It is just hard to explain to people back 60 percent of his average salary divided cent was to be matched by Federal Gov-
home that civil service annuities are by the number of children, or $2,700 di- ernment contribution of an equal
taxed as ordinary income, while social se- vided by the number of children. The amount. The 2'/2 percent employee-
curity is tax free, railroad retirement is effect of our amendments are to make agency contribution was increased peri-
tax free, and income from investments very substantial improvements in the odically until in 1956 the present 6Up.-per -
on municipal bonds is tax free. That survivor annuity protection offered an cent contribution rate became effective.
does not create a very good impression employee who has at least 18 months' During the entire history of the Federal
upon a retired civil service employee who service, but not more than 22 years of retirement system, all Federal employee
is trying to get by on $2,000 or $3,000 a service. This is where the retirement pro- contributions have been paid in full and
year and is paying taxes on it. This is an gram for civil service employees is now have approximated one-half the normal
amendment to the Civil Service Retire- gravely deficient and that is where we cost.
rnent Act and is very similar, except for have aimed our corrections. In contrast to the specific requirements
the dollar amount, to the bill, S. 2087, The cost of the bill as reported from for employee contributions, the act, prior
which I introduced on May 8, 1969, and the committee is about $205 million in to 1958, stated in effect that the Fed-
which was referred to the Committee on direct transfer from the Treasury to the eral Government's share would be fi-
Post Office and Civil Service. civil service retirement fund in the corn- nanced by the submission of appropria-
This exclusion of up to $3,000 would ing fiscal year, that is fiscal year 1971. tion estimates to Congress necessary to
be in lieu of the retirement credit now The normal cost of the system is in- finance the system and to continue the
provided by the Internal Revenue Code. creased by about one-fifth of 1 percent act in full force and effect. As a result,
Under that law, any pension or annuity of Federal payroll. One percent of Fed- a number of different methods were em-
payment which is not taxed must be eral payroll was about $22 billion as of ployed over the 48 years the plan has
subtracted from the retirement credit. June 30, so the extra cost which, of been in existence to take care of the
The effect of our amendment, therefore, course, will be fully paid for under the Government's contributions.
would be to replace the retirement credit financing portion of the bill is $44 mil- During the first 8 years of the plan,
for civil service annuitants only, thus lion a year. That is $2 million a year less no agency appropriations were enacted
giving them a tax benefit equal to the than the provision of the bill passed by and benefit disbursements were financed
difference between the $3,000 exclusion the House of Representatives. The dif- entirely by employee contributions. From
and the tax credit they now receive, ference relates primarily to changing the 1929 to the end of World War II, al-
which is now a maximum of $228. The method of financing military service though Government contributions were
impact on revenue would not be substan- credit. generally recommended by the President
tial because retired employees past 65 The unfunded liability of the system in amounts sufficient to cover normal
who are married to a spouse past 65 would be increased by $1.4 billion as a costs and to amortize the unfunded lia-
have very little taxable income anyway. result of the liberalizations in title II, bility then existing, the amounts actu-
Finally, the bill revises very substan- but the overall liability of the fund ally appropriated varied. Congress en-
tially the survivor annuity benefits for a would be reduced because of the direct acted lower appropriations than those
widow of a Federal employee who dies or Treasury funding for military service recommended by the President on five
who has retired on account of physical credit. The net result would he a decrease occasions, higher amounts twice, and on
disability and thereafter dies. in the liability of the fund of about $3.3 one occasion approved the full amount
Under existing law, the widow and billion. requested by the President in his budget.
children of an employee who has less Mr. FONG. Mr. President, will the In 1958, the present funding proce-
than 5 years' service receives no benefit Senator yield? dures were enacted. Under it, each Fed-
at all if her husband dies. If an employee Mr. McGEE. I yield. eral agency contributes to the fund from
has 5 years of service, his widow is en- Mr. FONG. Mr. President, I congratu- its appropriations for payment of sal-
titled to a percentage of his earned an- late the distinguished Senator from Wyo- aries, amounts equal to deductions from
nuity; and since civil service retirement ming for his leadership in bringing to the salaries of its employees for retire-
is a system based on long service and the Senate this very constructive bill. ment at the rate of 61/2 percent. This
average salary, the earned annuity of a This bill really stabilizes, for the first achieved the objective of assuring annual
young employee is very small, After 10 time, the retirement, system and assures income approximating normal cost.
years, his earned annuity is just 161/4 that our civil service employees will be
percent of his average salary. After 20 paid in the future. It also adds a few meet fully the these Gbecause vern Government's portion of
years, it is just 361/4 percent of his aver- changes to the law that are very de- he mentt''s portn of
age salary; and when you give the widow sirable. retirement
reduce tirement the costs unfunded i is did nothing
55 percent of that, she will not get rich. Mr. President, the Civil Service Re- by d liability caused
The examples cited on pages 6 and 7 of tirement Amendments of 1969, contained by insufficient appropriations in previ-
The
committee report indicate how dras- in S. 2754 and presently under debate, ous years.
tic the financial impact of the death of contains critical and very necessary A review of the system shows that the
a short-term employee is upon his wife changes in the U.S. civil service retire- major causes for the present unfunded
and children. ment system and fund. The bill was liability of approximately $61 billion
reported out unanimously by the Sen- have been; First, creditable service for
For some time our committee has at- which neither the employee nor the em-
tempted to work out legislation accept- ate Committee on Post Office and Civil
able to all to provide for a transfer of Service. player contributed, such as military serv-
credit between civil service retirement I strongly urge my Senate colleagues to ice creditable for civilian retirement;
second, social security. Nothing acceptable approve the proposed legislation, suit in general
benefits efts based wage increases
higher pat re-
tern
least
has been developed. We shall continue For 22 year's the U.S. Civil Service of in than that t upon on apon hi which hich at le
of salaries l
ast
that effort, butin the meantime, we must Commission has urged Congress to ap- a portion of contributions is based; third,
resolve the problem for the survivors prove legislation eliminating or stabil- liberalizations applying to benefits based
now. Our bill does this, and I think it is izing. the Federal retirement fund's un- on past and/or future service without a
a most significant improvement in the funded liability. The Senate report on commensurate increase in contributions;
retirement program.. S. 2754 explains in detail the reasons for and fourth, loss of compounded interest
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me which would have been earned If this interest. However, for the first year an overaii amount 01 $3,000 and not
.-C accrued liability had been fully the Secretary of the Treasury would $3,000 per year,
anded, transfer to the retirement fund a sum Mr. McGEE. No; this would be from
sccause employee contributions dur- equivalent to 10 percent of the interest income in a given year.
,:.rt the 1930's and 1940's exceeded bene- on the then-existing unfunded liability ; Mr. HOLLAND. Does the Senator
:t payments, the potential impact of an and thereafter an additional 10 percent mean $3,000 in every year would bo
an unded liability was obscured. How- for each successive fiscal year until 1980. exempted?
,'ver, with stabilized employment. [Wade- After 1980, the amount transferred an- Mr. McGEE. Would be exempted from
ttuate employer contributions and in- nuaally will be the equivalent of the full the income tax; yes.
creased benefit payments, the annual interest thereon. Mr. HOLLAND. The bill is not clear
trust lurid revenues within the foresee- This formula, though not reducing the on that. It does not say that this exemp-
itble future would be unable to meet unfunded liability, will provide the in- tion takes effect every year. It appears
'benefit payments. trre,t to make the fund operationally from the way the bill reads-at least to
Under the present funding practices soisent. This :s the tlirue?t of title I of this Senator-that it is an overall, one-
the assets of the fund which presently tilt- bill, time exemption.
total $20,500,000,000 will increase to $-3 Snotrid iuture incremental unfunded Mr. McGEE. I am having the stall
billion in 1975 while the def;ciency will liabilities result from benefit liberaliza- check the language in the bill, and then
simultaneously approach $80 billion. In ti(-tis, general salary increases. extension I will respond to the Senator.
1975 the disbursements will begin to ex- o; coverage to new groups of employees. Mr. HOLLAND. My second question
creed the annual income o[ $3.8 billion. or newly authorized annuity increases, on the same point, which I think the
Thereafter, disbursements will continue tnsg. would be fully financed by the Fed- Senator can answer while that is being
to escalate over a relatively static income erai Government through direct appro- checked, is this: Does this provision af-
and will result in a declining fund bal- prrations to the fund, in equal annual fect the provision of the present law
ante. At that time, in order to meet bent:- in,taliments, over 30-year periods. The under which there is exempt from in-
!it payments, all disbursements in ex- kJo ernment would assume full responsi- come tax the full amount that any Mem-
cess of current income will have to come briity for additional deficiencies thus ber of Congress has paid in up to the
from the fund balance. Without addi- created. and. by amortization, preclude time that that amount is fully paid?
tional funding, that balance will be de- f:rrtiier itrcre