A BILL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP74B00415R000600030028-9
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• Document Creation Date: December 12, 2016
• Document Release Date: January 2, 2002
• Sequence Number: 28
• Content Type: REGULATION

V, Approved For Release 2002/01/23 : CIA-RDP74B00415R000600030028-9
To amend the Central Intelligence Agency Retirement Act of 1964
for Certain Employees, as amended, and for other purposes.
Be it enacted by the Senate and House of Representatives of. the United
States of America in Congress assembled, That
section 291(b) of the Central Intelligence Agency Retirement Act (50 U. S. C,
403 note), is amended by renumbering paragraphs (1) and (2) as paragraphs
(2) and (3), respectively, and by inserting the following new paragraph:
(1) An annuity (except a deferred annuity under section 234) which -
' (A) is payable from the fund to a participant who retires, or to
the widow or widower of a deceased participant under section 232;
and
' (B) has a commencing date after the effective date of the then
last preceding annuity increase under section 291(a)(2) ;
shall not be less than the annuity which would have been payable if the
commencing date of such annuity had been the effective date of the then
last preceding annuity increase under section 291(a)(2). In the administration
of this paragraph, a participant or a deceased participant shall be deemed, for
the purposes of section 221 (h), to have to his credit, on the
effective date of the then last preceding annuity increase under subsection
Z91 (a)(2), a number of days of unused sick leave equal to the number
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of days of unused sick leave to his credit on the date of his separation from
the service. ".
SEC. 2. The amendments made by this Act shall apply only with respect to
annuities which have a commencing date after the effective date of the first
annuity increase under section 29l(a)(2) which occurs on or after the date of
enactment of this Act.
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 S 6892 CONGRESSIONAL RECORD - SENATE May 14, 1971
Navy, and in the Marine Corps which
had been placed on the Secretary's desk.
The ACTING PRESIDENT pro teln-
pore.. Without objection, the nomina-
tions are considered and confirmed on
bloc.
Mr. MANSFIELD. Mr. President, I
ask unanimous consent that the Presi-
dent be immediately notified of the con-
firmation of these nominations.
The ACTING PRESIDENT pro tem- .
pore. Without objection, it is so ordered.
LEGISLATIVE SESSION
Mr. MANSFIELD. Mr. President, I
move that the Senate resume the con-
sideration of legislative business.
The motion was agreed to, and the
Senate resumed the consideration of
legislative business.
LAW DAY
Mr. MANSFIELD. Mr. President, the
editor and publisher of the Western
News of Libby, Mont., an old friend of
many years standing, Paul E. Verdon,
has written an editorial in the April 29,
without law is a nation without freedom or In the administration of this paragraph, an
liberty." Montanans wore urged to "support employee or a deceased employee shall be
the courts and agencies of law enforcement deemed, for the purposes of section 8339(m)
and to utilize the resources of law to im- of this title, to have to his credit, on the
prove the quality of life for all Americans." effective date of the then last preceding
Law-wisely written, impartially interpre- annuity increase under subsection (b) of
ted, vigorously enforced-is the prerequisite this section, a number of days of unused sick
of an orderly society. Without law, there is leave equal to the number of days of unused
no justice, no freedom. sick leave to his credit on the date of his
Working within the political system, re- separation from the service.".
specting the law and following its precepts, SEC. 2. The amendments made by this Act
all manner of social, economic and govern- shall apply only with respect to annuities
mental improvement is possible. Extremist which have a commencing date after the
groups who function outside of or above the effective date of the first annuity increase
law, or who subvert it, cause only chaos. They under section 8340(b) of title 5, United
contribute nothing to orderly solution of the States Code, which occurs on or after the
1971, issue of that newspaper. CIVIL SERVICE RETIREMENT
It is entitled "Editorially Speaking,"
with the subhead "Change Within the Mr. MANSFIELD. Mr. President, I ask
Law." unanimous consent that the Senate pro-
It is a most fitting editorial as it ap- ceed to the consideration of Calendar No.
plies to Law Day and as it applies to 104, S. 1681.
situations which have developed in the The ACTING PRESIDENT pro tem-
Nation's Capital in recent weeks and pore. The bill will be stated by title.
throughout the Nation. The assistant legislative clerk read as
Mr. President, I ask unanimous con- follows:
sent that this editorial-a commentary, S. 1681. To liberalize eligibility for cost-of-
really-be printed in the RECORD, living increases in civil service retirement
There being no objection, the editorial annuities.
was ordered to be printed in the RECORD, The ACTING PRESIDENT pro tem-
as follows: pore. Is there objection. to the present
CHANGE WITHIN THE LAW consideration of the bill?
Before law existed, man was a snarling, There being no objection, the Senate
thieving, head-bashing savage who lived en- proceeded to consider the bill which had
direly by his strength and his wits. Survival been reported from the Committee on
indeed was enjoyed only by the fittest. ? ,,, .-,m.... ?a r+,.,;i Car"rinn wifli an
gave birth to tribal mores. These strictures
against the most elementary forms of mis-
conduct were refined, expanded, and modified
as human society became more complex.
Development of alphabets and systems of
writing made it possible to record the rules,
to interpret them, and to disseminate knowl-
edge of them more widely. In the Far East
marl nrn?nd the Merl iterranean'Sea. civiliza-
problems of our times. date of enactment of this Act.
Within the law-both constitutional and -The amendment was agreed to.
statutory-are the avenues of change.
To dissent within the law is acceptable and
encouraged. Changes of lasting benefit will
result from orderly processes.
Violent protest only antagonizes the pub-'
lie and makes change more difficult to at-
tain.
No reasonable person will argue that our
system is perfect. But our' lawfully, consti-
tuted government is subject to legitimate
change, which has been accomplished every
time the need was proved.
Preservation of the law is our only assur-
for a third reading, was read the third
time, and passed.
Mr. MANSFIELD. Mr. President, I
ask unanimous consent to have printed in
the RECORD an excerpt from the report
(No. 92-103), explaining the purposes
of the measure.
There being no objection, the excerpt
was ordered to be printed in the RECORD,
as follows:
alIwItu[nwil . Wil Nttbo i+++. ?? ?. s
the words "is payable from the"; strike
the word "fund" and insert the word
"Fund", so as to make the bill read:
S. 1681
Be it enacted by the Senate and House of
Representatives of the United States of
America in Congress assembled, That section
8340(c) of title 5, United States Code, is
existence almost 50 centuries ago.
So, Law Day, slated to be observed Satur-
day throughout all the nation, has a cul-
tural background rooted in the distant be-
ginning of man's search for a system of regu-
lations that will insure a peaceful society
and human freedom and dignity.
Though far from perfect, the American'
system of justice represents man's farthest
advance along the path to full equality of
every individual before the law and equal
protection for every person.
For 14 years, the legal profession of the
United States has joined with others eon-
ii) oy reilaliluvjm6 ywa nsauy.aa ~a/ -
(2) thereof as paragraphs (2) and (3), re-
spectively; and
(2) by inserting immediately, above para-
graph (2) (renumbered as such by paragraph
(1) of this section), the following new para-
graph: .
"(1) An annuity (except a deferred
annuity under section 8338 of this title or
any other provision of law) which-
"(A) is payable from the Fund to an, em-
ployee or Member who retires, or to the
widow or widower of a deceased employee or For example, employee A retires 1 day
Member; and before the effective date of a cost-of-living
"(B) has a commencing date after the Increase and receives an annuity of $985 a
dom to observe Law Day on May 1, a day effective date of the then last preceding month. Employee B, not eligible until 1
when Communist countries stage their annuity increase under subsection (b) of month later, retires on an annuity of $966,
grandest festivals. this section; or $29 a month less. Employee B would have
Montana's Law Day proclamation, issued shall not be less than the annuity which to continue working for approximately 6
this year by Lt. Gov. Tom Judge, acting for would have been payable if the commencing months in order to recover the amount lost
the bsent Forrest Andersso ,mid .''`hlib- date of'such annuity had been the effective because he was not eligible to retire by the
erty t and freedo tAr0 s use 20QWG4423ep GIAi ?R 4M#A $RO?OOQ 00 ~bq increase. This legislation
only through the rule of law , . . A people crease under subsection (b) of this section. woul perm emp oyee B to retire after the
This legislation would permit an employee
or Member of Congress eligible for an im-
mediate, retirement annuity after a cost-
of-living increase is effective, but before the
next cost-of-living increase effective date,
to retire and receive an annuity not less than
it would have been had he been eligible and
retired before the effective date. Also, the
survivor annuity of an employee or Member
who dies after the cost-of-living increase
effective date would not be less than it
would have. been had it commenced on or
before the effective date.
JUSTIFICATION
The Civil Service Retirement Act provides
that whenever the Consumer Price Index
shows a 3-percent increase for each of 3
consecutive months over the index for the
base month, annuities are adjusted upward
by the highest percentage of any of the 3
months plus 1 percent. The increase becomes
effective on the first day of the third month
following the end of the 3-month period and
applies only to annuities commencing on or
before the effective date. A survivor annuity
is increased the same as an annuity of a re-
tired employee.
Therefore, an employee must be eligible
to retire and his annuity must commence on
or before the effective date of a cost-of-living
increase in order to receive the increase. This
bill would permit an employee to retire after
the effective date, but prior to the next cost-
of-living increase, and receive an annuity not
less than it would have been if he had retired
prior to the effective date.
An employee who retires on or before the
effective date receives a larger annuity than
an employee who does not retire until a few
days following the effective date, even though
both may have the same service beginning
date and high 3-year average salary. The
same situation exists in computing the sur-
vivor annuities for the survivor of an em-
ployee who dies immediately prior to the in-
crease date and an employee who dies im-
 Approved For Release 2002/01/23 : CIA-RDP74B00415R000600030028-9 GB~~
May 14, .1971 CONGRESSIONAL. RECORD-SENATE S effective date and receive not less than he as well as our deterrent against a big- long . been advocmod by ar-sighted citi-
would have received had he retired by the power war in the Middle East.
effective date. Mr. MANSFIELD. if the assistant mi- over the last several decades have led to
The present cost-of-living provisions, pro- nority leader will yield, may I say that strong recommendations for consolida-
viding that the employee must retire prior I was interested in the proposal made by tion.
to the effective date, always produce a great
Influx of retirement applications immediate- Premier Brezhnev, which I only became But these pleas have fallen on deaf t has ly before the effective date. For example, aware of just before the Senate con-
ecars. Often ver OgiC&1rsuCh all &'aangerilenttlnigllt
the last two increases, effective on Novem- vened this morning.
her 1, 1969, and August 1, 1970, produced Let me express the hope that this pro- be, the necessary extensive changes
25,000 and 19,800, retirement applications posal be pursued expeditiously by the would inflict unacceptable wounds on
over the normal number of applications re- administration. If I know President the conservation establishment.
't 11 be viewed Despite such opposition, however, the
l
h
t
ceived.
This places tremendous burden On the
Civil Service Commission to process these
forms. A result is delayed annuity payments
at a time when they are most needed by
annuitants. S. 1681, by permitting an em-
ployee to delay retirement, would distribute
more evenly ped the processing iof'
thereby speed retirement ap-
plications.
Employing agencies would also benefit by
the enactment of this legislation. As a re-
sult of present "bunching" of retirements
atmany are reemployed asetan-
date, many y p
nuitants to complete projects and permit the
agency to secure replacements.
COST
Assuming that a 5 percent cost-of-living
annuity increase is effective in each fiscal
year 1971 through 1980, the unfunded lia-
bility would be increased by a little over $92
million. The annual cumulative interest pay-
ment due the fund from the Secretary of
the Treasury at the end of fiscal year 1981
ORDER OF BUSINESS
The ACTING PRESIDENT pro tem-
desire toe be recognized under the stand-
ing order?
Mr. GRIFFIN. Yes, Mr. President.
MILITARY SELECTIVE SERVICE
ACT-SENATOR MANSFIELD'S
AMENDMENT NO. 86
Mr. GRIFFIN. Mr. President, although
I have the greatest respect and affection
for the majority leader, I must say that
the timing of the Mansfield amendment
could not have been more unfortunate
or inappropriate. This Senate is in dan-
ger of going down in history as a Senate
which derailed the most promising dis-
armament talks of our times.
1 w
a
Nixon, I am certain t
with the most serious consideration and pressure of events has moved us in that
good faith. It is indeed encouraging and, direction.
if ultimately successful, it will bring I have discussed previously in the
about a major achievement which the Chamber the evolution of the Depart-
President and many of us here have ment of the Interior. Originally, it was
been seeking to obtain. a catchall for agencies handling domestic
At the same time, I would hope that problems. It has evolved, however, into
my amendment would be considered on an organization chiefly concerned with
its own. By itself, I believe it has over- management, protection, and adminis-
whelming merit. I think it should be ae- tration of natural resources-timber,
cepted by the Senate, forage, water, minerals, wildlife, and
Mr. MATHIAS.-Mr. President, will the with the marketing of power and the
Senator from -Michigan yield? promotion of outdoor recreation oppor-
Mr. GRIFFIN. I yield to the Senator tunities. The recent Secretaries-Udall,
from Maryland. Hickel, and Morton-have looked upon
Mr. MATHIAS. I want to join the dis- their organization as a resources depart-
tinguished Senator from Michigan, the ment. But they have lacked the authority
acting minority leader, in the views that and the designated responsibility to
he has just voiced on the impact of the make it one, since resource functions of
Brezhnev statement. This has a signifi- great magnitude have remained outside
cant bearing on the pending business of Interior. They have been generals com-
The other
s
oo
lf the t
.
p
r
the Senate. manding only ha
I think it gives us a new view and a new half have been deployed elsewhere on the
hope that mutual and balanced force field, ordered by different officers.
reductions are a possibility. I do not President Nixon's support of the con-
believe that we want to pursue any will- cept of a Department of Natural Re-
ortunity to
i
i
n
ng opp
o'-the-wisp, but the fact that this has sources offers a sh
come about at this moment is a fortu- begin anew-to start at the beginning, so
I do not believe it should be eitner
undervalued or overvalued but should be
placed in its proper perspective and, as
the assistant Republican leader has just
said, we should review it as it is.
ORDER OF BUSINESS
The ACTING PRESIDENT pro tem-
pore. The time of the assistant minority
leader has expired.
Under the previous order, the Senator
from Utah (Mr. Moss) is recognized for
not to exceed 15 minutes.
DEPARTMENT OF NATURAL RE-
SOURCES AND ENVIRONMENT
ACT-AMENDMENT
AMENDMENT NO. Si
Mr. MOSS. Mr. President, beginning
with the 89th Congress, I have intro-
duced bills to establish a Department of
Natural Resources and Environment,
and I did so again this year.
Today I submit an amended version of
that bill. Its provisions differ. somewhat
from those of its predecessors, but the
essential structure remains the same.
The purpose of submitting an amend-
ment to the bill is to make it conform in
a number ofparticulars with the Natural
Resources Department bill submitted by
Only this morning, Soviet Party Leader
Brezhnev spoke of his interest in nego-
tiating troop withdrawals in central
Europe. What possible incentive would
he have to pledge Warsaw Pact with-
drawals if the 'Mansfield amendment
should be adopted?
Many people may not realize it, but
a 50-percent reduction in American
forces in Europe would probably require
a thin-out of our 6th Fleet. The `Presi-
dent simply could not draw down the
entire cut from ground forces in Europe.
But in any event, such a sudden cut
would drastically and unilaterally
weaken our military position with respect
to the Middle East just at a most promis-
i.-.
.v.r.
ent in the long quest for neace
g
m
--
Fundamental considerations support
the establishment of a Federal resources
department.
First, perhaps is the terrible toll Amer-
ican' progress has exacted from the
natural environment.
Just 167 years ago, Lewis and Clark
bade goodbye to St. Louis and began their
8,000-mile journey through the wilder-
ness.
St. Louis was then the last outpost of
civilization. The existence of the awe-
some barrier of the Rocky Mountains
was hardly suspected. A prime object of
their mission was to locate the "Great
River of the West," which, it was mis-
takenly believed, emptied into the Pacific
Ocean and completed a navigable route
across the continent.
In the next 110 years, we drove the
Indian and the buffalo from the plains,
the beaver from the mountain streams,
and the passenger pigeon from the air.
We spanned the continent with rails and
built a mature industrial economy.
In the 60 following years we increased
the number of automobiles from 540,000
to 71,500,000-157 times increase. And
we completed the settlement of 123 mil-
lion persons west of the Appalachians.
Having done so much in so little time,
it is little wonder that we have skinned
and exhausted the land-to use Theodore
between Lsraei and bne nraua. ., ---.---- .?------------
The Mansfield amendment is a pro- The amended provisions will be dis- Roosevelt's phrase.
cussed later. The Senate has heard all too often the
Aides, crowded national
most importanAPP1S@ Fri ele~se 200 0 ~
overseas alliance system-our deterrent execute a na ural reso r
against conventional warfare in Europe sibilities of the Federal Government has parks, disappearing wetlands, and en-
 113962
ment Operations Committee unani-
mously.
Mr. Speaker, I want to fully endorse
the statement of the distinguished
chairman of the Government Operations
Committee in support of H.R. 4848
which he and I Introduced.
Chairman HoLIFIELD and I have long
been associated with efforts "to promote
ill i 1d ffectiveness in
nc
a1
CONGRESSIONAL RECORD - HOUSE May 17, 1971
GENERAL LEAVE TO EXTEND
Mr. HOLIFIELD. Mr. Speaker, I ask
unanimous consent that all Members may
have 5 legislative days In which to extend
their remarks on the bill just passed.
The SPEAKER. Is there objection to
the request of the gentleman from Cali-
fornia?
There was no objection.
y,
e
economy, e c e
the procurement of goods, services, and
facilities by and for,the executive branch LIBERALIZATION OF ELIGIBILITY
of the Federal Government" as the FOR COST-OF-LIVING INCREASES
policy statement reads in the act estab- IN CIVIL SERVICE RETIREMENT
lishing the Commission on Government ANNUITIES
Procurement. Upon the establishment of Mr. WALDIE. Mr. Speaker, I move to
the Commission, he and I were appoint- suspend the rules and pass the bill (H.R.
ed to it by the Speaker of the House. 7964) to liberalize eligibility for cost-of-
see Since that then, the we have Commission done our performed best as to living increases in civil service retirement
annuities, as amended.
well as possible the difficult assignment The Clerk read as follows:
with which it was charged by the Con-
gress. H.R. 7964
As the chairman pointed out, the or- Be it enacted by the Senate and House
ganization of the Commission, the devel- of Representatives of the United States of
opment of its study.program, and the America in Congress assembled, That sehtton
establishment of its study groups took 8340(c) of title 5, United States (;ode, is
longer than originally anticipated. On Ara#nded,
basis of my close observation of the (2) (1) thereof ereaf renumbering
as paragraphs (2) ) an and (3 ((3 and
(), re-
performance to date of the Commission specitively; and
and staff, I can report unequivocally (2) by inserting immediately above para-
that there has been no undue wastage graph (2) (renumbered as such by pam-
of effort or resources. Indeed, I feel the graph (1) of this section), the following new
Commission and staff have done an ex- paragraph:
cellent job of structuring the study ef- "(1) An annuity (except a deferred an-
fort, I believe the extra time required nutty under section 8336 of this title or any
for these initial phases of the Com- other provision of law) which-
mission's work was absolutely essential "(A) Is payable from the Fund to an em-
if we are to receive from the Commission ployee or Member who retires, or to the widow
the quality effort required, or widower of a deceased employee or Mem-
Mr. Speaker and my colleagues, we bee; and
need the detailed study being planned "(B) has a commencing date after the ef-
fective date of the then last preceding an-
by the Commission if we are to have nutty increase under subsection (b) of this
"economy, efficiency, and effectiveness" section;
in Federal procurement. I urge the shall not be less than the annuity which
House to pass H.R. 4848, which will allow would have been payable If the commencing
the Commission the time necessary to date of such annuity had been the effective
,prepare its report. date of the then last (preceding annuity in-
Mr. Speaker, I urge my colleagues to crease under subsection (b) of this section.
support and approve the extension as In the administration of this paragraph, an
employee or a deceased employee shall be
contained in the bill H.R. 4848. deemed, for the purposes of section 8339(m)
Mrs. DWYER. Mr. Speaker, I rise in of this title, to have to his credit, on the
support of H.R. 4848, to provide for an effective date of the then last preceding an-
extension of the date on which the Com- nutty increase under subsection (b) of this
mission on Government Procurement section, a number of days of unused sick
shall submit its final report. This bill has leave equal to the number of days of unused
the unanimous support of the Govern- sick leave to his credit on the date of his
&9paratio
meet Operations Committee on which I n from the service,",
have the honor of serving as ranking Sec. 2. Section 8348 of title 5, United States
Code, is amended by adding at the end
minority member. I wish also to express thereof the following new subsection:
my complete faith and trust in the work "(h) (1) Notwithstanding any other pro-
of the two Members of_ the House, the vision of law, the United States Postal Serv-
gentleman from California (Mr. HoLI- ice shall be 4able for that portion of any
FIELD), and the gentleman from New estimated increase in the unfunded liability
York (Mr. HORTON), who have given so of the Fund which is attributable to any
much of their time and effort to the leg- benefits payable from the Fund to active
islation establishing the Commission, and retired Postal Service officers and em-
ployees, and to their survivors, when such
and, now that they are members of the, increase results from an employee-manage-
Commission, to the work of that body. ment agreement under title 39, or any ad-
Their presence on the Commission as- ministrative action taken pursuant to law,
sures us of a high-quality report, which authorizes increases in pay on which
The SPEAKER. The question is on the such benefits are computed.
motion of the gentleman from California "(2) The estimated increase in the un-
that the House suspend the rules and funded liability, referred to in paragraph
pass the bill H.R. 4848. (1) of .this subsection, shall be determined by
the Civil Service Commission. The United
The question was taken; and-two- States Postal Service shall pay the amount
thirds having voted in favor thereof- so determined to the Commission in thirty and retires some months later, he may
the rules were suspended and the bill was equal annual installments with interest com- receive an annuity benefit smaller than
passed. Approved For RI ~ 2 ~ ~-~m opt 0 I A6 8is n payable had
"~ ~^ ~?^nnciAar was laid on the Svatem, with the first payment thereof due he retired on May 31. Although his addi-
n,,, tics ai se4 vice and 1111'r4er t`cverane s21,1ary
Approved For Release 2002/01/23 : CIA-RDP74B00415R000600030028-9
fiscal year in which an increase in pay be-
comes effective.".
Sec. 3. Section 10061(d) of title 39, United
States Code, is amended by adding at the
end thereof the following new sentence:
"The Postal Service shall pay into the Civil
Service Retirement and Disability Fund the
amounts determined by the Civil Service
Commission under section 8848(h),(2) of title
5.".
SEc. 4. The amendments made by the first-
aeotiosf"6f this Act shall apply only with'
'"respect- to annuities which have a com-
mencing date after the effective date of the
first annuity increase under section 8340(b)
of.title 6, United States Code, which occurs
on or after the date of enactment of this
Act1 The amendment made by section 3 of
this Act to section 1005(d) of title 39, United
States Code, as enacted by the Postal Re-
organization Act (84 Stat. 732; Public Law
91-375), shall become effective on that date
on which the other provisions of such see-
tion 1005(d) become effective.
The SPEAKER. Is a second demanded?
Mr. SCOTT. Mr. Speaker, I demand
a second.
The SPEAKER. Without objection, a
second will be considered as ordered.
There was no objection.
Mr. WALDIE. Mr. Speaker, I yield my-
self such time as I may consume.
(Mr. WALDIE asked and was given
permission to revise and extend his re-
marks.)
Mr. WALDIE. Mr. Speaker, I take this
time to briefly explain the dual purpose
of the legislation under consideration,
and to urge its unanimous adoption and
early enactment.
The bill before the. House is based, in
part, upon an administration recom-
mendation. By letter dated March 25,
1971, addressed to the Speaker of the
House, the Chairman of the U.S. Civil
Service Commission submitted for the
consideration of the Congress, and rec-
ommenqed favorable and expeditious ac-
tion on a proposal which is incorporated
In the first section of H.R. 7964, S. 1681,
a bill which is devoted solely to the mat-
-ter covered by the first section of H.R.
7964, was passed by the Senate last Fri-
day.
The civil service retirement law pro-
vides for the automatic upward adjust-
ment of annuities when the cost of liv-
ing, as determined by the Bureau of
Labor Statistics' nationwide Consumer
Price Index, goes up at least 3 percent
over the price index for the month used
as the basis for the most recent adjust-
ment, and stays at or exceeds 3 percent
for 3 successive months. Since this fea-
ture of the law become operable In 1965,
six cost-of-living Increases have already
been authorized, with the seventh in-
crease scheduled the first of next month,
June 1, 1971.
Under existing law, in order to be eligi-
ble to receive any such increase, an em-
ployee must retire no later. than the
last day of the month preceding the
month in which the particular increase
becomes effective. For example, in order
to get the upcoming June 1, 1971, in-
crease In annuity, an employee must re-
tire no later than May 31, 1971. However,
if he continues to work after that date
 Approved For Release 200 / P7 9 ? R000600030028-9O,,.,
May 17, 1971 CONGRESSI ?
will result in a larger "earned benefit" suit from increases in pay upon which retirements immediately before the of-
than would otherwise have been earned "annuities are computed shall be fully festive date of every -of-living an-
on May 31, it will take him from 3 to 10 financed. When enacting pay legislation nutty increase. This "bunching" results
months, depending upon his particular the Congress recognizes the resultant in-administrative problems and heavy ex-
service history, to recoup the 41/2-pereent costs which accrue to the retirement sys-, pense by the Commission in attempting
increase he could receive by retiring on ten and, by amortization, assumes the to cope with the abnormal number of re-
May 31. responsibility of paying for them in equal tirements.
Similarly, for a widow to receive the annual appropriation installments over The retirement at one time of a num-
41/2-percent increase in her annuity, her 30-year periods. Adherence to that policy, ber of key personnel also works hardships
employee-husband must' die before June where the Congress controls the paying- on Government agencies.
1. Should his death occur on or after fixing machinery, precludes further in- ' The costs resulting from this modiflca-
enne 1, the widow, ironically, will not be to the enactment of the financing provi-
entitled to the increase. offset y reduced expense incurred by the
One Onof the purposes of H.R. 7964 is sions of Public Law 91-93. Civil Service Commission.
The Commission has estimated that in-
to eliminate the anomaly of an employee However, since the recently enacted
who is separated for retirement-either Postal Reorganization Act transfers the terest payments on the additional un-
voluntarily, involuntarily by reductions pay-fixing authority for postal employees funded liability in the retirement fund
2
in force, on account of disability-on or to the new Postal Service, the Congress will begin at $53,0 000 in fihighestscalexpense year 197of
soon after the effective date of an in- has no control over nor any longer has re-
cre$se receiving a smaller annuity than sponsibilitY for costs resulting from nego- $265,000 in fiscal year 1980. The Commis-hat th
e off set
wil
costs
agency. Al- by a savingstof some $e 250 000 in admin-
desp retires that he maythave aas tionsdof agreements or that independent administrative
much or more service and an equivalent though postal employees will continue to istrative expenses which must be in-
or larger average salary. The parallel participate in the civil service retirement curred at every cost-of-living annuity
anomaly with respect to widows of de- system, the Postal Reorganization Act increase, due to the "bunching" of re-
ceased employees will likewise be re- was somewhat deficient in failing to re- tirements by personnel who, retire before
moved. The bill corrects this inequitable quire the Postal Service to be liable for the effective date of the increase in or-
condition by guaranteeing that an em- funding of the retirement costs asso- der to gaua nd~g ithe subcommittee-re-
ployee who retires on or after the effec- elated with its pay-fixing authority. . In tive cost-
full
ported
our
that
er respect
Committee the spouse aof an ofemployee-living who des m ttee's versiontof the legis ation differs Office and C vthe il Servi e cl a rifles and on-
thereafter, will receive an. annuity at from the Senate-passed version. It is the firms the principle to which the Congress
least as large as would have been paid consensus of our committee, however, subscribed in enacting the Retirement
had retirement or death occurred im- that the Postal Service, -as a self-sufli- Financing Amendments of 1969, and enti
the
ency
defic
a
res
, should
Postal mediately prior pre e to effective date. to sibility fortadd t onal etire ent cosslit organ ation Actlof 970. The Po tal Re-
Add tonally p
self upufficion
Service becoming premised
"clusterier" an abnormal number of re- incurs to the retirement fund by virtue organization
tirements immediately prior to the ef- of its own actions. etwith Congress no longer playing
em-
role with the pay of postal y ng
fcctive date of every cost-of-living- in- Accordingly, the committee amend- entity,
crease. Normally, the normal flow of re- ment will require the Postal Service to a toles.
tirements from Government service pay into the retirement fund, in a man- p Although employees of tPostal Serv-
ect Postal civil
ice will ugh oo es of the
However, average about 5,000 each month. ner similar to that by which the Con- Alth
However, in practice, employees who gress fulfills its obligations, moneys to service etirement program, and the
postalliabilities
salaryhin- Postal Service, as the employer, will con-
had been. contemplating retiring within ad- area -attributable unfunded
6 months hs or retirement so after such an event nt before ribute its share of the normal costs of
the a theitheir ate sas tt Just borcrMr. Speaker, this legislation was the program, no financing provision was
costst-ofso-living to increase. a derive To the unanimously approved by the committee. made in Reorganization Act to cover any ,
benefit effective of the date
beunfunded liabilities that will be created
illustrate, the most recent increase, I, therefore, urge its unanimous adop- by that liabendententity in granting
which was triggered last August 1, pro. tion by the House. byture salary increases under its pang
duced approximately five times the num- Mr. CHAPPELL. Mr. Speaker, will the future salary in.
mal of oat h. Similar s that eoccur in a xperience is g. Mr. WALDIE. I yield to the gentleman. The committee amendment remedies
real mnt Siexperience e re- (Mr. CHAPPELL asked and was given that particular deficiency, and restates
fleeted on all such occasions, kid results permission to revise and extend his re- the intent of the Congress that any newly
to placing a burdensome workload upon created unfunded liabilities in the retire-
of f claims; adju caurseess m'ar Mr. . CHAPPELL. Mr. Speaker, as the ment system which arise from increases
eating Civil a peak Service load Commission
sat
months of delay in the issuance of an. ranking member of the Retirement Sub- in nd emptheloyees' amo pay paya shall be principle fully funded
adopted
enacting title I
nutty awards and benefit payments; in- committee, and having had the privilege u the 91st Congress
creases the administrative costs of the of chairing the subcommittee's hearing by Public Law 91-93.
program by requiring overtime pay to on this legislation, I rise in wholehearted . I ubli c Law dual purpose of the to -the
process the workloads; and adversely af- support of H.R. 7964. the House
fects the operations of Federal agencies As the gentleman from California has bill, lend Mr. Speaker, and s I urge
support to use
when an inordinate number of em- indicated, because of the anomaly of the togi endoit this
ployees suddenly decide to retire. present law, an employee who retires le.
Mr. Speaker, I yield my-
these legislation will serve to alleviate soon after the effective date of a cost-of- Mrself r. minutes SCCOTOTT..
these adverse effects by moderating the living increase receives a smaller annuity
peaking of retirements just before in- than does an employee with the same Mr. Speaker, I rise in support of the
creases become effective, and by reduc- service beginning date and 3-year salary bill, H.R. 7964, and join the distinguished
ing the disruption in agency operations average who retires on or before the chairman of the subcommittee in the
on such future occasions. effective date. Thus, even though the em- remarks he has made in favor of its
The committee has amended the intro- ployee who retires after the effective enactment.
duced bill to reaffirm and strengthen the date has more service--he receives a Mr. Speaker, this measure was recom-
policy it laid down in the last Congress lesser annuity. . mended by the Civil Service Commission.
with respect to the financial stability of This, of course, is patently unfair and Thereafter it was unanimously wpassed of "
the civil service retirement fund. By en- should be corrected. our the committee was adi e difference of
acting the Dante] McGee Act of 1969,. The Civil Service Commission, in ad- opinion ommite ch the amendmene
the Congress estA vmooEoiofRedeasec2oo2/4gMn - } 5F Q ~ 11 committee. How-
the policy that the costs of future un- sage of H.R. 7964, bias ter i ed
funded liabilities in the Fund which re- present law produces a "bunching" of ever, the reporting of the bill, as amended
 11 3964 Approved For Relea g~/ ,Ai k3I. r ,0,80600030028-9 May 1'/', 1971
by the committee, was by a unanimous
vote of 19 to 0.
Mr. Speaker, as the Members know,
under the present law there is a cost-of-
living increase every time the cost of
living rises by 3 percent or more, and an
additional 1 percent is added for the
delay in effecting the change in the cost-
of-living increase.
At the present time it is expected that
on June 10 of this year there will be a
cost-of-living increase, but in order for
a government employee to obtain this
cost-of-living increase, he must retire not
later than May 31. This results in a large
number of people retiring on the last day
that they can retire and still obtain
this cost-of-living increase in compen-
sation.
The proposals before us now would
change this requirement and would
spread the time within which an em-
ployee could retire and still obtain the
cost-of-living increase.
The measure provides that after the
effective date of the bill no one retiring
after the day that the cost-cf-living in-
crease is effective shall receives less in
retirement pay than they would have re-
ceived had they retired prior to the
effective date.
Enactment of this bill will help the
Civil Service Commission In computing
annuities in that they can do this over
a wider period of time. It will also help
the executive departments and independ-
ten agencies in that they will not have a
large number of employees retiring at
the same time. This will mean that work
within the departments and agencies can
proceed in a normal way without being
handicapped by a large number of re-
tirements within,a short period of time.
Mr. Speaker, I believe this Is a good
bill and I again join the chairman of the
subcommittee in urging that we have a
unanimous vote in favor of the passage
of this proposal.
Mr. Speaker, the second phase of the
bill relates to the postal service. It pro-
vides that the postal service shall con-
tribute to the unfunded liability in the
same manner In which the Congress,
through its appropriations committee,
contributes on behalf of other civilian
Government employees when additional
benefits are provided. This is something,
I believe, our committee and the Con-
gress neglected to do when the postal
reform measure was passed during the
91st Congress.
There are roughly one-fourth of all
Government employees, amounting to
something rover 700,000 Government em-
ployees, who work for the postal service.
We tried during the 91st Congress to
make the retirement fund ? actuarially
sound. I think we did a good job on
that, but now we are faced with the pos-
sibility that the new postal service will
not contribute its portion to the un-
funded liability. This is just a part of
plugging the leak In the present law so
that we will keep the fund sound.
I think it is a sound measure because
If,we are going to have a retirement fund,
the last Congress in providing for the
soundness of the retirement fund. I urge
the approval of this bill.
Mr. Speaker, I yield to the gentleman
from Maryland.
Mr. HOGAN. Mr. Speaker, I appreciate
the gentleman's yielding, and I com-
mend him for his remarks.
Mr. Speaker, I rise in support of H.R.
7964, which will correct an anomaly that
exists with respect to cost-of-living ad-
justments in civil service retirement and
survivor annuities.
This legislation has the support of the
Nixon administration as well as the
unanimous support of our Post Office and
Civil Service Committee. It has been co-
sponsored by the distinguished chairman
of our committee, Mr. DULSKI, myself,
and many of our committee members.
Mr. Speaker, this' is good, common
sense legislation, and will aid the U.S.
Civil Service Commission to handle its
administrative duties better and at the
same time assure Federal employees who
retire after the effective date of a cost-
of-living annuity adjustment to. insure
that their civil service annuity shall not
be less than the increased annuity which
would have been payable had the em-
ployee retired immediately prior to the
effective date of that adjustment.
For too long a period now under the
present cost-of-living provision, em-
ployees and the Commission have shared
in a most unfortunate situation. Certain
employees who retired after the effective
date of the cost of living adjustment
have received an annuity less than that
of another Government employee who
has identical service, tenure and salary
base but who retired on or prior to the
effective date of the cost of living ad-
justment. The Commission on the other
hand has had the burdensome and cost-
ly problem of administering an inordi-
nate number of applications prior to the
effective date of the cost-of-living ad-
j ustment.
As an example, August 1, 1970, the
latest cost-of-living adjustment pro-
duced 19,000 retirements in addition to
the 5,000 or less that occur in a normal
month. This bunching of retirements
also creates a major problem in the Fed-
eral agencies throughout the.Govern-
ment because valued employees working
on current projects who retire must be,
rehired on a consultant basis to finish
their work.
Mr. Speaker, enactment of this legis-
lation will help to eliminate these prob-
lems.
I urge prompt passage of.H.R. 7964.
(Mr. HOGAN asked and was given per-
mission to revise and extend his re-
marks.)
Mr. SCOTT. Mr. Speaker, I yield to
the gentleman from Illinois (Mr. DER-
WINSKI) .
Mr. DERWINSKI. Mr. Speaker, it Is
My views, as contained in the commit-
tee report follow:
SUPPLEMENTAL VIEWS OF HON. EDWARD J.
DERWINBKI ON H.R. 7964
I appreciate the fact that when this legis-
lation is considered on the Floor, the main
thrust of discussion will probably be directed
at the Committee amendment which re-
quires the Postal Service to assume the re-
sponsibility for any increases in the un-
funded liability of the Civil Service Retire-
mont Fund as a result of negotiated pay in-
creases. However, I wish to alert the Mem-
bers to the basic policy concept embraced by
the bill, with the thought that the path we
are taking should be clearly outlined.
In simple terms, the bill allows an em-
ployee to retire after the effective date of
a cost of living increase and still receive an
adjusted annuity which would be no less
than the one he would have received had
he retired prior to the effective date of the
cost of living adjustment.
In practicality, what we are doing is eras-
ing any differential between the active and
retired employee so far as cost of living ad-
justments are concerned. This is the point
I hope that all the Members will understand.
Admittedly, the Civil Service Commission
justifies this action on the ground that it
Would level out the peaking of retirements
which are triggered by cost of living an-
nuity increases.
Be that as it may, consideration should be
given to whether cost of living increases
should only go to retired Federal employees
living on fixed incomes and who are the real
victims of inflation.
The history of cost of living annuity in-
creases may throw some light on the answer.
In 1962, when the cost of living increase
language originated, there was an actual
requirement, because of the wording of the
law, that an annuitant be on the rolls for at
least 15 months in order to qualify for the
increase.
Then, in 1965, along with other amend-
ments to the Retirement law, we eliminated
this 16-month requirement and, in effect,
permitted the cost of living allowance to go
to all employees who are on the rolls the
day before the increase becomes effective.
One of the results of the 1965 change was
that this type of "bonus increase" encour-
aged eligible employees to retire on a given
date and clear out on a periodic basis em-
ployees who would otherwise hang on in-
definitely.
Now, with this bill, we change that policy
and remove the incentive to the employee
to fix it retirement date.
While I supported the amended bill as it
come from the Committee, the three-day
span in which the legislation was considered
in public hearings, subcommittee markup,
and full committee markup was certainly
not sufficient time to thoroughly air this pol-
icy change. Therefore, I take this means to
alert the Members in the event that we are
faced with troublesome consequences some-
time in the future.
EDWARD J. DERWINSKI, M. C.
(Mr. DERWINSKI asked and was
given permission to revise and extend his
remarks.)
Mr. WALDIE. Mr. Speaker, I yield to
the distinguished chairman of the Post
Office and Civil Service Committee, the
gentleman from New York (Mr.
DULSKI).
(Mr. DULSKI asked and was given per-
mission to revise and extend his re-
marks.)
,
.
.
.
pea
er,
r
se in
we need to have the money available to supplemental views to the committee re- support of H.R. 7964, which liberalizes
th ti
er
not my intention to in any way' inter-
fere with the processing of this bill which
I supported in committee, and do so here
this afternoon. However
I submitted
Mr
DULSKI
Mr
S
k
I
i
e ree~ l~ c)~e~/~ /$ ? A P E ?tl6tR0096 00 0112 irements for cost-of-
eral y
service. C o at wan o em ers to questions which I feel, to living Increases In civil service retire-
to reverse the congressional action of this moment, have been unanswered. ment annuities. I sponsored this bill on
 Approved For Release 2002/01/23 : CIA-RDP74B00415R000600030028-9
May 17, 1971 CONGRESSIONAL RECORD ---HOUSE ja 6 ruj
the basis of an'official recommendation until hearings can be scheduled' and
by the Chairman of the United States testimony received from the Civil Serv-
Civil Service Commission. The bill was ice Commission, the Postal Service, em-
ordered reported by our committee with ployee representatives and representa-
an amendment by a record vote of 19 tives of mailers. A copy of the Post-
to 0. master General's letter dated May 14,
The primary purpose of this bill is to 1971, will be inserted at the end of my
eliminate the inequity that exists 'under statement.
the present Civil Service Retirement Mr. Speaker, our committee held
Law in connection with cost-of-living months of hearings in 1969 before the
adjustments in annuities, and adminis- congressional policy on the obligation of
trative problems that have arisen when- the Postal Service was established. I
ever such adjustments are made. feel sure that the members will agree
Under existing law, an employee who that this policy would not be changed
retires soon after the effective date of a by scheduling additional hearings on
cost-of-living increase actually receives this proposal, I see no reason to delay
a smaller annuity than does an employee enactment on these provisions to sched-
of the same age, length of service, and ule such hearings.
average salary who retires before the Mr. Speaker, I also received a corn-
effective date of that increase. munication this morning from the presi-
The present law produces a "bunch- dent of the Board of Education of the
ing" of retirements. immediately before District of Columbia recommending that
the effective date of every cost-of-living this legislation include an amendment
increase, This bunching of retirement extending the same cost-of-living annu-
applications adversely affects the admin- ity benefits to teachers of the District
istration of the Civil Service Retirement of Columbia. The teachers have a retire-
System and results in additional admin- ment system that is practically identical
istrative expenses of approximately to the civil service retirement system
$250,000 each time there is a cost-of- and without such amendment the teach-
living annuity increase. The additional ers who wish to have the benefits of the
expense is due mainly to the overtime cost-of-living increase effective June 1
which is necessary to process the in- must retire on or before May 31 prior
creased number of retirement applica- to completion of the full school year
tions. during June. Mr. Speaker, had I known
The provisions contained in the first of this inequity I would have consulted
section of H.R. 7964 will operate to elimi- with the District of Columbia Commit-
nate this problem. tee, which has jurisdiction over District
Another purpose of the bill under sec- of Columbia teachers' retirement system,
tions 2 and 3, which were added by the, and if they had agreed I would have fa-
committee amendment, it to require the vored adding an amendment to this leg-
Postal Service to pay into the retirement islation, Unfortunately, it is too late
fund amounts necessary to cover the now to add such an amendment to the
unfunded liability which occurs when- legislation. A copy of the letter from
ever Postal Service employees are the president of the Board of Education
granted an increase in pay. of the District of Columbia is attached
I supported the committee amendment to my statement.
on the basis that it is consistent with The statement and letter follows:
the congressional policy 'established un- THE POSTMASTER GENERAL,
Washington, D.C., May 14, 1971.
der the Postal Reorganization Act. That Hon. THADDEUS J. DvLSKr,
policy is that all costs of postal opera- Chairman, Committee on Post Office and
tions are to be an obligation of the Pos- Civil Service, House of Representatives,
tal Service to be covered by postal rates Washington, D.C.
and fees or appropriations made specifi- DEAR MR. CHAIRMAN: This is in response
cally to the Postal Service. to your request for a report on an amend-
ment this policy any new increase in ment offered by Mr. Gross to H.R. 7964, a
Y bill "To liberalize eligibility for cost-of-liv-
the unfunded liability of the civil service lag increases in civil service retirement
retirement fund occasioned by pay annuities."
increases for postal employees should be The amendment to the bill would require
an obligation of the Postal Service, but the Postal Service to make 30 equal annual
the existing law does not require such payments to the Civil service Retirement
obligation to be paid by the Postal Serv- Fund to cover increases in the unfunded lia-
ice. Sections 2 and 3 of the reported bill bility of the Fund due to pay increases
granted postal employees as a result of em-
will correct this omission in the Postal ployee -management agreements or as a result
Reorganization Act. For each dollar in- of other administrative action.
crease in pay for Postal Service employ- The amounts the Postal Service would be
ees the unfunded liability in the civil required to pay under the amendment could
service retirement fund increases by reach very large proportions. Under condi-
$2.61, Each 1 percent increase in postal tions prevailing at the present time, accord-
prox- ing to information provided by the chief
pay increases the payroll cost by a
p
imately $65.5 million, and the unfunded Actuary of the Civil Service Commission,
liability by $17 .3 million. Under this each one percent of it pay increase will
cause a liability to the Fund of approxi-
legislation, the increase in unfunded lia- mately $9 million per year for thirty years.
bility resulting from each 1-percent in We appreciate this opportunity to com-
crease in postal pay will require pay- . ment on the amendment to H.R. 7964. How-
ments by the Postal Service at the rate ever, we believe that because of the impor-
of $9 million per year for 30 years. tance of this amendment to the Postal Serv-
of mailers should be received and considered
before final action is taken. Regardless of
what policy the Congress ultimately decides
to adopt on this subject, careful considera-
tion of legislation in this area would appear
to be warranted.
Accordingly, for the reasons indicated, we
respectfully recommend that action on the
amendment to H.R. 7964 be deferred until
hearings have been held and interested
parties have been given an opportunity to ex-
press their views.
The Office of Management and Budget has
advised that there is no objection to the sub-
mission of this report to the Committee from
the standpoint of the Administration's pro-
graii.
Sincerely,
WINTON M. BLOUNT,
BOARD 6F EDUCATION OF THE
DISTRICT OF COLUMBIA,
Washington, D.C., May 13, 1971,
Hon. THADDEUS J. DULSICI,
Chairman, Committee on Post Office and
Civil Service, House of Representatives,
Washington, D.C.
DEAR CONGRESSMAN DULsm: Although the
District of Columbia Teachers' Retirement
System is separate from the Civil Service
Retirement System, it is practically identi-
cal to the Civil Service System and as a mat-
ter of Congressional policy, it - is kept con-
sistent with the Civil Service System. [See
Senate Report No. 91-839 and House Report
No. 91-849 on the District of Columbia Re-
tirement Amendments of 1970 (P.L. 91-
263) 1. Thus under present law, Teacher
Retirement Act annuities as well as Civil
Service annuities are adjusted whenever the
Consumer Price Index shows a three percent
increase over the base amounts for three
consecutive months. Such adjustment is
scheduled for June 1, 1971, Present em-
ployees who have sufficient credit to retire
must retire on or before May 31 in order to
be entitled to this cost-of-living adjustment.
The school educational employee who is
eligible to retire is currently placed in a very
unfortunate position. It would be to his
monetary advantage to retire on or before
May 31, but it is to the advantage of the
school system to have such person complete
the full school year. It is, therefore, strongly
,recommended that in the best interest of the
school system legislation should be enacted
which would allow employees who retire on
or after June 1, 1971, to receive the same
annuity increment as granted those who re-
tire prier to June 1.
Enactment of such legislation will remove
an arbitrary cut-off date and thereby allow
school employees to retire at the conclu-
sion of the school year without loss in retire-
ment benefits.
Because of the Congressional policy of
keeping benefits under the District of Colum-
bia Teachers' Retirement Act consistent
with those afforded the classified employees
of the Federal and District of Columbia Gov-
ernment by the Civil Service Retirement Act,
I would like to urge your committee to
include appropriate D.C. Teachers' Retire-
ment Act amendments in the same bill which
amends the Civil Service Retirement Act. In
this way, the D.C. Teachers' Retirement Act
amendments could become effective at the
same time as the Civil Service Retirement
Act amendments.
In this particular case, a change In the D.C.
Teachers' Retirement Act would need to be
made almost concurrently with amendments
to the Civil Service Retirement Act if school
employees are to have the same benefits as
are available to Civil Service employees. If
there is a time lag in passage, some teachers
will have had to make their retirement deci-
t
out h
on this Suggestied leg-
e op
.i,m morning i received a repor>; from
hundreds of millions of dollars, hearings islation ~rovide
the Postmaster Gen
AL`' gg o egg g t coq i dpq 415SRA0H@ti1J3 028>b9consideration be
sion. He does not op,Q ~ tb ~SVi Set6i'~IO i~i s'3ah,'#he F~oslal erv7ce, given to In- wouldp or ti 1
or
a
t
p
ng n
o the Civil Service
but recommends that action be deferred employee representatives, and representatives Retirement amendments, identical amend-
 AA 39 66
Approved For Rel i/,001/3 I,~1RQf~TTQ.Q4,,1i5 9Q600030028-9 iF1 af 1, id ii
ments to the District of Columbia Teachers' be required to have been an annuitant costs which will ultimately result from
Retirement Act so that the latter act may for 15 months, 1 year, 6 months, or less, negotiated wage agreements and admin-
be amended as expeditiously as possible in in order to enjoy the benefit of the istrative salary increases in that inde-
conformity with Congressional policy to pro- changes proposed? After thoroughly con- pendent agency.
vide school personnel with the same retire-
It is to this particular problem that
ment benefits as civil service employees. sidering various alternatives, it was the
the committee's amendment to the in-
Sincerely yours, consensus of the Members of the 89th
troduced bill is addressed. I wish to com-
(Mrs.) ANITA F. ALLEN, Congress that the question of applica-
mend and congratulate the distinguished
President, Board of Education.
administratively feasible manner- gentleman from Iowa (Mr. GROGG), the
WALDIE. Mr. Speaker, I yield 5
Mr. ranking minority member of the com-
to the distinguished gentleman
minutes mittee, for his foresight and good judg-
Subcommittee on Retirement, adjustments. plied bility or to namely, be all. that before By resolved the any in annuities such the effective prescribing most which such increases dates a liberal be of ap- commence and policy the
Jersey (Mr. DANIELS) , chair-
from New nlent in offering the amendment which
man of the remedies a deficiency in the Postal Re-
Insurance and Health Benefits.
organization Act and reaffirms the com-
DANIELS of New Jersey. Mr.
Mr. mittee's policy, as subscribed to under
having had the honor of chair-
Speaker, Public Law 91-93, that any new un-
judgment In-
ing the Subcommittee on funded liabilities which result from in-
of Hwe.R. ation liberal his being 796we option appropriate judgment placed able as to policy are to the to and retire which . make when his employee it gives attempting in to a own rise advantageous Essentially, to might to it be the is alleviate position situ- considered this by exercise most
and Health Benefits in the three
surance, creases in salaries shall be recognized
and, thus, having
previous Congresses and paid for by the party responsible for
role in the enactment of
played a large their creation. Under the amendment,
updating the automatic cost-
legislation the costs so incurred will, and properly
4.
-living and financing provisions of the
so, be borne by the U.S. Postal Service.
Second, the 91st Congress addressed
civil service retirement law, I rise in sup-
Mr. Speaker, I urge the unanimous
itself to a long-standing problemr-the
H.R. 7964, as amended by the
port of adoption of H.R. 7964.
financial condition of the Civil Service
Post Office and Civil
Committee on The SPEAKER. The time of the gen-
Retirement System. The enactment of
Service. tleman from New Jersey has expired.
Public Law 91-93, on October 20, 1969,
brief review of the legisla-
Perhaps a Mr. WALDIE. Mr. Speaker, I yield the
established a three-pronged program de-
history underlying the particular
tive gentleman 2 additional minutes.
signed to provide in full for the perma-
address-
provisions to which we are today Mr. GROSS. Mr. Speaker, will the gen-
nent financing of the system, so as to
be of assistance in
ing ourselves may tleman yield?
assure that the necessary money is avail-
evaluating the merits of the Committee's
Mr. DANIELS of New Jersey. I am
able when needed to pay the annuities
proposal. pleased to yield to the gentleman from
of Government retirees and survivor an-
First, the cost-of-living annuity ad-
Iowa, the ranking minority member of
nuitants-in full and on time.
justment feature of the law was initially
the committee.
One of the major provisions of that
established by the 1962 amendments to
Mr. GROSS. I should like to commend
legislation dealt with the recognition of
the Retirement Act. It provided that
the gentleman for the excellent job he
currently accruing retirement costs, such
the Consumer Price Index of
whenever and his subcommittee did in the last
as the costs of future incremental un-
of Labor Statistics shall have
the Bureau Congress, when he and his subcommittee
funded liabilities which will result from
of 3 percent or more
risen by an average secured the enactment of Public Law 91-
general salary increases for the active
full calendar year above its average
for a 93.
work force. In essence, the Congress takes
1962, a comparable percentage in-
for I would also like to ask the gentleman
cognizance of the fact, when enacting
have become effective on
crease would if it is not true that if the amendment
salary increase legislation, that each dol-
April 1 of the following year. It also
to this bill is not passed the Postal Serv-
lar of increased pay has an eventual re-
increases when a like
provided similar ice will not be paying the true cost of
tirement cost of more than $2.50. By
future pay raises given to postal em-
increase in living costs might occur in
recognizing such related costs, the Con-
any
subsequent years, but stipulated that ployees?
gress assumes full responsibility for the
Mr. DANIELS of New Jersey. I would
such increases would apply only to those
additional deficiencies it thus creates in
who had been on the retirement
persons say the gentleman's observation is ab-
the retirement fund. It fulfills that re-
rolls at the beginning of the calendar
solutely correct.
sponsibility by authorizing direct appro-
the year in which the in-
year preceding Mr. GROSS. Is it also not true, because
priations to the fund, amortizing those
would become effective-a period
crease of the specific wording of Public Law
additional costs in equal annual install-
of 15 months. 91-93, that some interpretation could
ments over 30-year periods. The effect of
particular funding practice pre- now be made that the future unfunded
pre-
By mid-1965 it became apparent that this
the cost-of-living provision had not op- cludes further deficiencies that would liabilities created by the Postal Service
erated as effectively as was anticipated otherwise result, as distinct from growth might not be paid at all?
in 1962, and that while living costs were of the existing unfunded liability at- Mr. DANIELS of New Jersey. I agree
steadily rising, annuitants would receive tributable to legislation enacted in the that such an interpretation could be
no increase until April of 1966. As its first past and for which adequate financing made. The committee amendment, of
order of business, the newly created Sub- was not provided. course, is specifically designed to preclude
committee on Retirement, Insurance, and Since the' enactment of Public Law 91- such a possibility.
Health Benefits devoted its attention to 93 the Congress, through its appropria- I want to compliment and congratulate
correcting that obviously disappointing tions process, has been living up to its the gentleman from Iowa for his good
result by approving legislation to accele- commitments to amortize the retirement ? judgment in proposing the amendment
rate the effective application of the cost- costs it incurs by granting salary in- to this bill.
of-living principle to a more sensitive creases. In other words, we are exercis- Mr. GROSS. And I am sure the gentle-
monthly price index indicator, in lieu of ing fiscal responsibility with respect to man from New Jersey is fully aware of
the existent unrealistic average calendar our own actions-actions over which the the bonuses which the Postmaster Gen-
year indicator. The revision, subse- Congress is able. to exercise a control. eral intends to give to all postal employ-
quently enacted as Public Law 89-205, However, passage of the Postal Reorga- ees in the headquarters and regions who
provided for reflecting cost-of-living ad- nization Act last year divested the Con- retire between May 15 and June 16, and
justments more currently-or whenever gress of its control over the pay-fixing that these bonuses are in addition to the
the Consumer Price Index rises by 3 per- authority for employees of the new 4V2-percent cost-of-living increase. Does
cent or more for 3 consecutive months Postal Service. Such authority is now the gentleman not agree if the Postal
after any previous increase resulting vested in the U.S. Postal Service, with Service can find the money to pay these
from this feature. Congress no longer being a party to pay unwarranted and unearned bonuses that
However, gearing the provision to a increases negotiated by employee-man- it can find the money to pay its own
monthly indicator gave rise to the ques- agement agreements or by administrative debts to the Civil Service retirement
tion of appli aA11n~b is a to ~~y t e part a ~Pgstal Service. fund?
should a perb~~l3~df~~Q `dW ; e Ft~ RQ00CYQQ08a ,~ of New Jersey. I do
before he or she might derive the benefit self, at least by implication, of any re- understand, from what I heard over the
of a cost-of-living 'increase? Should he sponsibility for financing the retirement weekend, that the Postmaster General
 a 17 1 y71 Approved For(''?y 'gy~3ji, 748 R000600030028-9
ii-ty
does propose to'pay a half-year's salary
to those employees who are involved in
his reduction in force.
I wholeheartedly agree with the gen-
tleman that provision should be made
in this law that future unfunded liability
should be paid by the Postal Service.
Again I commend the gentleman for his
foresight and good judgment in propos-
ing the amendment which would make
it specifically clear as'to the liability of
the new Postal Corporation.
Mr. GROSS. I thank the gentleman
very much.
Mr. WALDIE. Mr. Speaker, I have no
requests for additional time.
Mr. SCOTT. Mr. Speaker, I yield 3
minutes to the gentleman from Vir-
ginia (Mr. BROYHILL).
Mr. BROYHILL of Virginia. Mr.
Speaker, I rise in support of H.R. 7964.
I am one of the cosponsors of this legis-
lation, and I was one of the original
proponents of the purpose of the bill,
having first introduced similar legisla-
tion in 1969.
I am speaking mainly, Mr. Speaker,
about section 1 of the bill, which corrects
a very serious inequity in existing law.
It is a rather silly and ridiculous in-
equity.
When Congress first provided for
automatic increases in civil service an-
nuities whenever the cost of living, as
determined by the nationwide Consumer
Price Index, equals a rise of at least 3
percent over the index for the month on
which the most recent increase was
based, we overlooked an inequity we were
creating which has adversely affected
thousands of our retired civil servants
since that year, 1965.
Under the automatic cost-of-living
statute, increases were authorized in
1965, 1967, 1968, twice in 1969, and 1970.
Another increase of 4.5 percent is sched-
uled for June of this year. But in order
to be eligible for this coming increase,
an employee must, under existing law,
retire no later than May 31. Similarly,
-for the widow of an active employee to
be entitled to the increase, her husband,
must die before June 1. For if an em-
ployee continues in Federal employment
beyond May 31 and retired or dies there-
after, he or his widow will receive an
annuity benefit smaller than they would
have received before the May 31 increase.
The present law has proven injurious
to both the Government and the retirees
adversely affected. On each occasion
when a cost-of-living adjustment as been
triggered, many employees who planned
to retire at an indefinite period within
the next few months, have pushed their
retirement date forward in order to ob-
tain the additional benefits, causing a
tremendous workload on the Civil Serv-
ice Commission in processing retire-
ments, serious delays in adjudication of
annuity claims and commencement of
benefit payments, and sudden loss in
many agencies of too many valuable em-
ployees who decide to retire on short no-
tice without completing projects on
which they are working, I understand
that during the 2 months period immedi-
If an employee, because of devotion to
his Government and to the project on
which he is working, chooses to remain
to its completion, he not only loses the
benefit of the cost-of-living adjustment
initially, but it may be up to 10 months
or more before his increa'sed' service and
probably larger high 3-year average
would offset the adjustment he has lost.
Mr, Speaker, I had hoped this legis-
lation would reach the floor under a
rule permitting amendments, as I have
heard many expressions of concern from
teachers in the District of Columbia who
would like to have been included in its
provisions. Were it possible for me to do
so, I would have offered an amendment
to include them, as they are particular-
ularly vulnerable to the provisions of the
existing laws because their contracts
terminate each June 30, making it
necessary for them to either retire 1
month before the end of the school year
or be penalized for not doing so. I am
hopeful that our colleagues in the other
body will have time to consider their
plight, and will be able to include them
along with our Federal employees .in the
provisions of this legislation.
Mr. Speaker, I believe this is a good
bill, and long overdue. And I urge its
enactment.
Mr. SCOTT. Mr. Speaker, I yield the
gentleman from Iowa (Mr. Gaols) such
time as he may consume.
(Mr. GROSS asked and was given
permission to revise and extend his
remarks.)
Mr. GROSS. Mr. Speaker, I will take
but little time on this bill. The bill and
the committee amendment have been
adequately explained and, as indicated,
the amended bill was reported unani-
mously from our committee by a record
vote of 19 yeas and no nays.
With respect to the committee amend-
ment, I would like to simply observe that
its intent is strictly in line with the gen
eral intent of the Postal Reorganization
Act-that the Postal Service be self-
sustaining. Certainly, it is entirely, con-
sistent with all of the numerous public
statements made by the Postmaster Gen-
eral that the new Postal Service should
not in any way be subsidized through the
use of general funds of the Treasury. In
fact, the limited public service and "rev-
enue foregone" appropriations that were
authorized in the legislation finally en-
acted were included over his strenuous
objections. Therefore, it would seem to
me that if the Postmaster General were
to be entirely consistent, he would en-
dorse the committee amendment instead
of opposing it, which I understand he is
now doing.
In this connection, I might also point
out that there has been some speculation
in the press and elsewhere that the com-
mittee amendment might delay the bill
so that it cannot be enacted and become
effective prior to the June 1 cost-of-liv-
ing annuity increase. Since :the Senate
has already passed the bill, I see only one
possible reason why this legislation can-
not be enacted and sent to the President
for his signature prior to June 1, That
nutty Increase under subsection (b) of this
ately prior to the August increase last reason is the refusal of the Senate o a of unused sick
year, there were 29 i~Tede art eI@ & 20g*4d i L-AA 1DP7 4w1M, r of days of un-
compared to an averag to 10,000 every of opposition to it by the Postmaster used sick leave to his credit on the date of
2 months fl-
!1390
I hope that such is not the case and
that the Postmaster General will not now
oppose the self-sustaining concept for
the Postal Service that he so vigorously
and consistently -advocated over a period
of nearly 2 years.
However, if by opposing the amend-
ment and a conference is required with
the Senate and if the legislation is de-
layed beyond June 1, then I think it is
most appropriate that -the blame be
placed where it rightly belongs. The rec-
ord is certainly clear that the House is
acting promptly and responsibly.
Mr. SCOT'T'. Mr. Speaker, I have no
further requests for time.
Mr. WALDIE. Mr. Speaker, I have no
further requests for time.
The SPEAKER. The question is on the
motion offered by the gentleman from
California (Mr. WALDIE) that the House
suspend the rules and pass the bill H.R.
7964, as amended.
The question was taken; and (two-
thirds having voted in favor thereof) the
rules were suspended and the bill was
passed.
A motion to reconsider was laid on the
table.
Mr. WALDIE. Mr. Speaker, I ask
unanimous consent for the immediate
consideration of a similar Senate bill (S.
1681) to liberalize eligibility for cost-of-
living increases in civil service retirement
annuities.
The Clerk read the title of the Senate
bill.
The SPEAKER. Is there objection to
the request of the gentleman from Cali-
fornia?
There was no objection.
The Clerk read the Senate bill as fol-
lows:
,s. 1681
An act to liberalize eligibility for cost-of-
living increases: in civil service retirement
annuities
Be it enacted by the Senate and House
of Representatives of the United States of
America in Congress assembled, That section
8340(c) of title 5, United States Code, is
amended-
(1) by renumbering paragraphs (1) and
(2) thereof as paragraphs (2) and (3), re-
spectively; and
(2) by inserting immediately above para-
graph (2) (renumbered as such by paragraph
(1) of this section), the following new para-
graph:
"(1) An annuity (except a deferred an-
nuity under section 8338 of this title or any
other provision of law) which-
"(A) is payable from the Fund to an em-
ployee or Member who retires, or to the
widow or widower of a deceased employee or
Member; and
"(B) has a commencing date after the ef-
fective date of the then last preceding an-
nuity increase under subsection (b) of this
section;
shall not be less than the annuity which
would have been payable if the commencing
date of such annuity had been the effective
date of the then last preceding annuity in-
crease under subsection (b) of this section.
In the administration of this paragraph, an
employee or a deceased employee shall be
deemed, for the -purposes of section 8339(m)
of this title, to have to his credit, on the
effective date of the then last preceding an.-
his separation from the service.".
 l Approved For Rele ".L R1/2 IA- P ~4B0041S~F2~OQ4600030028-9 lvlc~y 1 ', 1: 71 3968 Y 3'k Y i i0 Y Y 1.
SEC. 2. The amendments made by this Act reliable, appropriate, and useful in decision- "(5) develop, establish, and maintain, as
shall apply only with respect to annuities making in environmental affairs. necessary, general standards which will per-
which have a commencing date after the ef- "SEC. 303. (a) There is hereby established mit and facilitate the compatibility and In-
fective date of the first annuity increase a National Environmental Data System. tegration of existing and new information
under section 8340(b) of title 5, United "(b) The purpose of the Data System is to systems bearing on the environment to make
States Code, which occurs on or after the serve as the central national coordinating them consonant and cooperative with the
date of enactment of this Act. facility for the selection, storage, analysis, central facility established by this Act, and
AMENDMENT OFFERED BY MR. WALDIE retrieval, and dissemination of information, "(6) develop and publish from time to
knowledge, and data relating to the envi- time environmental quality indicators for
Mr. Speaker, I offer an amendment. ronment so as to provide information needed all regions of the United States, including
The Clerk read as follows: to support environmental decisions in a its coastal and contiguous zones, and for in-
Amendment offered by Mr. WALDIE: Strike timely manner and in a usable form. Such in- ternationally significant environments such
out all after the enacting clause of S. 16d1 formation as shall be deemed appropriate and as the atmosphere and the oceans.
and insert in lieu thereof the provisions of useful for the achievement of the purpose "(c) In carrying out his functions under
H.R. 7964 as passed by the House. of the system shall be made available by all this Act, the Director shall, to the fullest ex-
Federal agencies, private institutions, uni- tent possible, provide the Council with sta-
The amendment was agreed to. versitios, and colleges, State and local govern- tistical data and other information necessary
'rho Senate bill was ordered to be read monts, Individuals, and any other source of for the preparation of the annual report of
a third time, was read the third time, and reliable Information, the Council requriod under section 201 of
passed, and a motion to reconsider was "(c) Information and data Shall also be this Act, and in the development of long-
laid on the table. sought from international sources such as range programs for the enhancement of the
A similar House bill (H.R. 7964) was foreign governments, the United Nations, environment.
and other international institutions; and the "SEC. 306. (a) The Director may employ
laid on the table. President is encouraged to enter into such such other officers and .employees as may be
agreements as may be necessary to accam- (necessary (1) for the efficient administration,
GENERAL LEAVE plish this purpose. operation, and maintenance of the Data Sys-
"SEC. 304, (a) The information, knowl- tem, and (2) to carry out his functions under
Mr. WALDIE. Mr. Speaker, I ask edge, and data in the Data System and the this title.
unanimous consent that all Members analysis thereof shall be made available on "(b) The Director is authorized to pro-
have 5 legislative days in which to request without charge- vide such lawful incentives as may be re-
may "(1) to the Congress and all the agencies quired to achieve the purposes of this Act.
revise and extend their remarks on the of the legislative and executive branches of These incentives may include, but shall not
bill H.R. 7964 and to Include extraneous the Federal Government, and be limited to, grants of money, exchanges of
matter in connection therewith. "(2) to all States and political subdivisions information, sharing of facilities, specialized
The SPEAKER. Is there objection to thereof, except that, in any case where it is advice, programs and formats, and other like
the request of the gentleman from determined that the service requested is sub- incentives. The Director shall also be author-
California? stantial, the payment of such fees and ized to enter into contracts with universities,
There was no objection. charges may be required as may be necessary individuals, and State and local governments,
to recover all, or any part, of the cost of pro- when needed, and to purchase information,
viding such retrieval service. data, and personal services as required to
TO PROVIDE FOR A NATIONAL EN- . ' "(b) The information, knowledge, and fulfill its purposes. He is also authorized to
VIRONMENTAL DATA SYSTEM data in the Data System and the analysis employ consultants. as required.
thereof shall be made available to private, "SEC. 307. (a) The head of each depart-
Mr. DINGELL. Mr. Speaker, I move persons and entities- ment, agency, or instrumentality in the exec-
to suspend the rules and pass the bill "(1) upon payment of reasonable fees and utive branch of the United States Govern-
(H.R. 56) to amend the National En- charges as may be established as necessary ment shall make available to the Data Sys-
vironmental Policy Act of 1969, to pro- to recover the cost of providing such retrieval tem such Information, knowledge, and data
service; and on the environment which such department,
vide for a national environmental data "(2) subject to such terms and conditions agency, or instrumentality may have as a
system, as amended. as is deemed necessary to protect the inter- result of its operations. Such Information,
The Clerk read as follows: ests of the United States. knowledge, and data shall be made available
H:R. 56 "(c) In all Instances the Data System shall for incorporation into the Data System, as
Be it enacted by the Senate and House perform its functions so as to protect secret. the Director deems appropriate as soon as
resentatives of the united States of and national security information from un- possible after it becomes known to such
of ReAmeripca in Congress assembled, That the authorized dissemination and application. department, agency, or instrumentality.
National Environmental Policy Act of 1969 "SEC. 305. (a) There is hereby created the "(b) In the administration of all Federal
(Public Law 91-190) is amended by adding position of National Environmental Data 91-programs in financial study or any
the President to serve at his pleasure, by and State, political subdivision, or other public
"TITLE III with the advice and consent of the Senate. or private entity, and, in all contracts in
"NATIONAL ENVIRONMENTAL DATA SYSTEM The Director shall be a person who, as a re- which the United States is a party, the head
"SEC. 301, This title may be cited as the sult of his training, experience, and attain- of the department, agency, or instrumentality
'National Environmental Data System Act'. ment, is exceptionally well qualified to administering such program, on entering
"SEC. 302. For the purpose of this title- analyze and interpret environmental data of into such contract, shall take such action as
"(1) The term 'Data System' means the all kinds and to appreciate its significance may be necessary to insure that information,
National Environmental Data System estab- in the management of natural resources as knowledge, and data on the environment
lished by this title. The system shall include required for the purpose of this Act. He shall which either directly or indirectly results
an appropriate network of new and existing serve full time and be compensated at the from such Federal financial assistance or
information processing or computer facil- rate provided for level V of the Executive contract will be made available to the Data
ities both private and public in various areas Schedule pay rates (5 U.S.C. 5313). System as soon as possible after it becomes
of the United States, which, through a sys-. "(b) It shall be the function of the Direc- known. In respect to federally assisted en-
tem of interconnections, are in communica- tor to- vironmental programs conducted by foreign
tion with a central facility for input, access, "(1) administer and manage, under the nations, it shall be the policy of the United
and general management. It shall also in- guidance of the Council, the operations of States Government to encourage, to the full-
and all of the ancillary software and sup- the Data System in all of its ramifications, est extent possible the availability to the
required for effective Data System of such information, knowledge,
port services usually "(2) institute a study to evaluate and and data arising from these programs which
information system operation. monitor the state of the art of information is appropriate to the purposes of the system.
"(2) The term 'Council' means the Coun- technology and utilize to best advantage new
agency,
oil on Environmental Quality established in and improved techniques for accomplishing and "(e) instrumentality head of each department, branch
title II of this Act. the purposes of this Act, nted States In the of f the United States Government shall, to
"(3) The term 'environmental quality in- "(3) utilize knowledge developed during the fullest extent possible, permit the Data
dicators' means quantifiable descriptors of such study to develop criteria and. guidelines System Director to use, on a mutually agree-
environmental characteristics which will to govern the selection of data as to scope, able basis, including the payment of com-
measure the quality of the environment. scientific validity, quantity, and quality, to pensatio?n, personnel, facilities, computers,
"(3) The term 'environmental quality in- be incorporated into the National Environ- data processing, and other equipment within
dicators' means quantifiable descriptiors of mental Data System network, including the such department, agency, or instrumentality
environmental characteristics which will development of predictive ecological models, in carrying out its functions under this title;
measure the ( Q Q~$ y x1ent possible, such com-
"(4) The ter"informationPkna 3geeaUU1 Q(~ ari~ifiain~diri-tli~8n41i I~r,ing, another equipment
and data' shall be interpreted as including formation network anticipated to accomplish shall be made compatible with all others in,
those facts which are significant, accurate, the purposes of this Act, and available for use by, the Data System.
 STATI N
STATI N
^ UNCLASSMEBroved
ROUTING AND RECORD SHEET
SUBJECT: (Optional)
FROM:
EXTENSION
NO.
Office of Legislative Counsel
DATE
L
20 / 5/ 71 STATI
TO: (Officer designation, room number, and
building)
DATE
OFFICER'S
COMMENTS (Number each comment to show from whom
L
RECEIVED
FORWARDED
INITIALS
to whom. Draw a line across column after each comment.)
1.
~
On 30 April you were sent
2.
proposed draft language to paral-
f
lel the cost-of-living amendments
b
id
i
d i
C
e
ng cons
ere
n
ongress.
3.
The language in that draft was
taken from the CSC draft bill
4.
cleared with us by OMB and intro-
duced by Chairman Dulski as
H. R. 7027.
5.
Attached is new proposed
amendments for CIARDS based on
6.
a revision of the CSC legislation
as it passed the Senate and the
7.
House.
May we have your comments
8.
or concurrences on the attached.
(For your information, we are
9.
attaching the language of the
Senate and House passed measure
as it appeared in the Cong ression
10.
Record. )
11.
12.
(Copy of attached also sent to
STATI
13.
14.
15.
Approved For Rele
se 2002
01/23:
IA-RDP7
B00415R000600030028-9
3--62 610 USED~ Io SU5 ^
SECRET ^ CONFIDENTIAL ^ USE INTERNAL ON Y ^ UNCLASSIFIED
MM 2002/01/23: CIA-RDPEP0q p 30028-9 ^ SECRET
USE ONLY
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