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The original documents are located in Box 30, folder "10/3/75 HR1401 Relief of Robert M
Johnston" of the White House Records Office: Legislation Case Files at the Gerald R. Ford
Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Exact duplicates within this folder were not digitized.
from Box 30 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library
APPROVED75
Signed 10/3
ACTION
THE WHITE HOUSE
WASHINGTON
Last Day: October 4
September 30, 1975
To archives
10/6
Partel
MEMORANDUM FOR THE PRESIDENT
10/6
FROM:
JIM CANNON
&
SUBJECT:
Enrolled Bill H.R. 1401 - For the
Relief of Robert M. Johnston
Attached for your consideration is H.R. 1401, sponsored
by Representative Holt, which provides that service
performed by Robert M. Johnston as a civilian faculty
member at the U.S. Navy Academy from July 1, 1946
through September 30, 1956, be creditable service
for the purpose of Civil Service Retirement.
Detailed information is provided in OMB's enrolled
bill report at Tab A.
OMB, Max Friedersdorf, Counsel's Office (Lazarus)
and I recommend approval of the enrolled bill.
RECOMMENDATION
That you sign H.R. 1401 at Tab B.
Ricdam Records office 10/4/95 10:30AM
Info to Press Offee 10/4/75 10:35AM
FORD & BERALD LIBRARY
PRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE
UNITED
OFFICE OF MANAGEMENT AND BUDGET
SENDITE
STATES
WASHINGTON, D.C. 20503
G
SEP 29 1975
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 1401 - For the relief of
Robert M. Johnston
Sponsor - Rep. Holt (R) Maryland
Last Day for Action
October 4, 1974 - Saturday
Purpose
Provides Mr. Johnston with the option of transferring to the
Civil Service Retirement System his retirement coverage from
July 1, 1946 through September 30, 1956 as a professor at
the U.S. Naval Academy.
Agency Recommendations
Office of Management and Budget
Approval
Department of the Navy
Approval
Civil Service Commission
Approval
Discussion
As of September 30, 1956, under provisions of P.L. 84-854,
faculty members at the U.S. Naval Academy were brought under
the Civil Service Retirement (CSR) System. Prior to that
time, they had a special retirement program with the Teachers
Insurance and Annuity Association (TIAA). At the time of the
changeover, all faculty members were given the option of
either retaining their vested rights under the earlier system
for their previous service, or transferring to the CSR system
full credit for their years of service and the contributions
made under the previous retirement program. The deadline for
this election was April 1, 1957.
2
Records of the Navy Department indicate that Professor Johnston
was the only active faculty member in 1956 who did not elect
to surrender his rights under the former program in return for
credit in the CSR system. H.R. 1401 would retroactively
provide Mr. Johnston with that option, providing he makes
the appropriate deposit in the CSR fund within one year after
enactment.
Background
According to the Navy Department, Mr. Johnston apparently
attempted in 1956 to elect to surrender his rights under
his TIAA retirement plan, but was unable to locate his policy.
Consequently, it was necessary for him to complete an
"Affidavit of Loss of Policy Contract" which required the
witnessed signatures of all of his children over 14 years
of age.
One of Professor Johnston's sons--an enlisted member of the
Marine Corps on active duty at the time--signed the affidavit
but failed to have his signature witnessed. Accordingly,
Mr. Johnston returned the form to his son so as to have the
signature witnessed, but his efforts to secure the necessary
witnessed signature were complicated by the fact that during
the period designated for making the election Mr. Johnston's
son was transferred to sea duty.
Mr. Johnston has indicated that he cannot recall being advised
of the passage of the April 1, 1957 cutoff date for making the
transfer, and has claimed that he was unaware until May 1972
of his ineligibility to transfer the TIAA policy to CSR. In
support of these assertions, the Navy Department has in its
records an affidavit from Mr. Johnston as well as other
supporting documents.
In reports to the Congress on predecessor bills, Navy supported
enactment, based on the circumstances explained above. The
Civil Service Commission (CSC), however, objected to the bill
because of the undesirable precedent of allowing employees to
revoke or revise previously irrevocable elections in benefit
programs which, for various reasons, ultimately prove to be
not to their advantage. Moreover, CSC was concerned about the
"windfall" aspects due to the significantly greater value of
the CSR annuity and the fact that there would be an additional
net cost to the CSR fund, which would not be recouped as a
result of the deposit Professor Johnston would be required to
make.
3
Given the arguments on both sides, the Congress determined
that this legislation is meritorious.
Recommendation
In its views letter on the enrolled bill, Navy continues
support of Mr. Johnston's claim and recommends approval.
CSC now also recommends approval.
Although we share CSC's objections to H.R. 1401, we do not
believe the information available to us in Professor Johnston's
case warrants disapproval and, accordingly, recommend approval.
James Assistant m. Director Trey for
Legislative Reference
Enclosures
DEPARTMENT OF THE NAVY
OF DEFINST
OFFICE OF THE SECRETARY
WASHINGTON. D. C. 20350
when UNITED =
September 25, 1975
Dear Mr. Lynn:
Your transmittal sheet dated September 24, 1975, enclosing a facsimile
of an enrolled bill of Congress, H.R. 1401, "For the relief of Robert M.
Johnston," and requesting comments of the Department of Defense, has
been referred to this Department for appropriate action.
The purpose of H.R. 1401 is to include service performed by Mr. Johnston
as a member of the civilian faculty of the U.S. Naval Academy from July 1,
1946, through September 30, 1956, as creditable service for purposes of
the civil service retirement system.
Public Law 74-417 (approved on January 16, 1936) established the retire-
ment system in effect for civilian members of the faculty at the U.S.
Naval Academy when Mr. Johnston joined that faculty in 1946. Each such
civilian faculty member participating in that retirement program was
required to carry a deferred annuity policy which could not include a
cash surrender or loan provision. Such faculty member paid the premium
for the annuity policy through a monthly allotment in an amount equal
to ten percent of his monthly basic salary. For each month the allot-
ment was in force, the pay account of such faculty member was credited
with an additional amount equal to five percent of his monthly basic
salary. (See Chapter 607 of title 10, United States Code, and the
annotations thereto.)
Pursuant to section 402 of P.L. 84-854 (approved on July 31, 1956),
contributions under the retirement system established by P.L. 74-417
were discontinued as of September 30, 1956. Although P.L. 84-854 did
not affect the rights of retired civilian faculty members, it did require
then current civilian faculty members to elect either (1) to retain their
vested rights under the retirement system created by P.L. 74-417 and
commence participation in the civil service retirement program or (2) to
transfer to the civil service retirement program with full credit
for the years of service and the contributions made under the system
created by P.L. 74-417.
From the information available to the Department of the Navy, it appears
that Mr. Johnston attempted in 1956 to elect to surrender his rights
under the system created by P.L. 74-417 in return for credit in the civil
service retirement system. Because Mr. Johnston was unable to locate
his policy with the association (Teachers Insurance and Annuity Associa-
tion of America) providing coverage pursuant to P.L. 74-417, it was
necessary for him to complete an "Affidavit of Loss of Policy Contract"
which required the signatures of all of his children over 14 years of age.
REVOLUTION
Unfortunately, one of Professor Johnston's sons, an active duty enlisted
member of the Marine Corps at the time, signed the affidavit but failed
AMERICAN
NTENNIAL
1776-1976
to have his signature witnessed. Mr. Johnston's attempt to obtain his
son's witnessed signature prior to the April 1, 1957, deadline for making
the election required by section 402 of P.L. 84-854 proved futile.
Mr. Johnston's efforts to secure the necessary witnessed signature were
complicated by the fact that, during the period designated for making
the election, his son was transferred to sea duty. Professor Johnston
has indicated that he is unable to recall that anyone advised him of the
passing of the election cutoff date in 1957 when he could have made a
more timely appeal. He has indicated further that he was unaware until
May 1972 of his ineligibility for transfer of credit from TIAA to the
civil service retirement system.
The principal effect of enactment of H.R. 1401 would be to permit
Mr. Johnston presently to make the election which he apparently initiated
in 1956 but was prevented from completing prior to the April 1, 1957,
deadline because of administrative difficulties.
In view of the foregoing, the Department of the Navy supports approval
of the enrolled enactment, H.R. 1401.
Sincerely yours,
J. William Middendorf II
Secretary of the Navy
Honorable James T. Lynn
Director, Office of Management
and Budget
Washington, D. C. 20503
2
UNITED
STATE
CIVIL SERVICE COMMISSION
UNITED STATES CIVIL SERVICE COMMISSION
WASHINGTON, D.C. 20415
CHAIRMAN
September 26, 1975
Honorable James T. Lynn
Director, Office of Management and Budget
Executive Office of the President
Washington, D. C. 20503
Attention: Assistant Director for
Legislative Reference
Dear Mr. Lynn:
This is in reply to your request for the Commission's views on enrolled
bill H.R. 1401, "For the relief of Robert M. Johnston."
H.R. 1401 would include service performed by Mr. Johnston as a civilian
faculty member at the U.S. Naval Academy from July 1, 1946, through
September 30, 1956, as creditable service for Civil Service Retirement
(CSR) providing Mr. Johnston makes the appropriate deposit in the Civil
Service Retirement and Disability Fund within one year after the bill's
enactment.
Originally, a retirement system was established for civilian members of
the faculty of the U.S. Naval Academy by Public Law 74-417 (approved on
January 16, 1936). Each participating member was required to purchase
from the Teachers Insurance and Annuity Association a deferred annuity
policy which could not include any provision for loan or cash surrender.
Premiums were paid through a monthly allotment in an amount equaling
ten percent of monthly basic salary. The Government shared the cost by
adding five percent to the monthly basic salary of participants.
Then, in 1956, civilian faculty members were required by section 402 of
Public Law 84-854 (approved on July 31, 1956) to elect either to retain
their vested rights under the TIAA program acquired by past service or
to transfer credit and contributions for that past service to the Civil
Service Retirement and Disability Fund. Irrespective of the election,
for all subsequent service participation in the CSR System was required.
Apparently, Mr. Johnston was the only active faculty member in 1956 who
did not take the necessary steps to surrender his vested rights under the
TIAA program in exchange for CSR credit.
2
Inasmuch as the creditability of service in this case is contingent upon
the making of the appropriate deposit in the Civil Service Retirement and
Disability Fund, and inasmuch as Mr. Johnston appears to be the only faculty
member active in 1956 who did not elect to exchange his vested rights under
the former system for credit under the Civil Service Retirement System, we
recommend that the President sign the enrolled bill.
By direction of the Commission:
Sincerely yours,
S
Chairman
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 408
Date: september 29, 1975
Time: 330pm
FOR ACTION:
NOC/S
cc (for information):
the
Jim Cavanaugh
Dick Parsons
Jack Marsh
Max Friedersdorfuh
Warren Hendriks
Ken Lazarus on
FROM THE STAFF SECRETARY
DUE: Date: September 30
Time: noon
SUBJECT:
H.R. 1401 - For the Relief of Robert M. Johnston
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
X
For Your Comments
Draft Remarks
REMARKS:
Please return to Judy Johnston, Ground Floor West Wing
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
K. R. COLE, JR.
telephone the Staff Secretary immediately.
For the President
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
RPF
SEP 29 1975
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 1401 - For the relief of
Robert M. Johnston
Sponsor - Rep. Holt (R) Maryland
Last Day for Action
October 4, 1974 - Saturday
Purpose
Provides Mr. Johnston with the option of transferring to the
Civil Service Retirement System his retirement coverage from
July 1, 1946 through September 30, 1956 as a professor at
the U.S. Naval Academy.
Agency Recommendations
Office of Management and Budget
Approval
Department of the Navy
Approval
Civil Service Commission
Approval
Discussion
As of September 30, 1956, under provisions of P.L. 84-854,
faculty members at the U.S. Naval Academy were brought under
the Civil Service Retirement (CSR) System. Prior to that
time, they had a special retirement program with the Teachers
Insurance and Annuity Association (TIAA). At the time of the
changeover, all faculty members were given the option of
either retaining their vested rights under the earlier system
for their previous service, or transferring to the CSR system
full credit for their years of service and the contributions
made under the previous retirement program. The deadline for
this election was April 1, 1957.
2
Records of the Navy Department indicate that Professor Johnston
was the only active faculty member in 1956 who did not elect
to surrender his rights under the former program in return for
credit in the CSR system. H.R. 1401 would retroactively
provide Mr. Johnston with that option, providing he makes
the appropriate deposit in the CSR fund within one year after
enactment.
Background
According to the Navy Department, Mr. Johnston apparently
attempted in 1956 to elect to surrender his rights under
his TIAA retirement plan, but was unable to locate his policy.
Consequently, it was necessary for him to complete an
"Affidavit of Loss of Policy Contract" which required the
witnessed signatures of all of his children over 14 years
of age.
One of Professor Johnston's sons--an enlisted member of the
Marine Corps on active duty at the time-signed the affidavit
but failed to have his signature witnessed. Accordingly,
Mr. Johnston returned the form to his son so as to have the
signature witnessed, but his efforts to secure the necessary
witnessed signature were complicated by the fact that during
the period designated for making the election Mr. Johnston's
son was transferred to sea duty.
Mr. Johnston has indicated that he cannot recall being advised
of the passage of the April 1, 1957 cutoff date for making the
transfer, and has claimed that he was unaware until May 1972
of his ineligibility to transfer the TIAA policy to CSR. In
support of these assertions, the Navy Department has in its
records an affidavit from Mr. Johnston as well as other
supporting documents.
In reports to the Congress on predecessor bills, Navy supported
enactment, based on the circumstances explained above. The
Civil Service Commission (CSC), however, objected to the bill
because of the undesirable precedent of allowing employees to
revoke or revise previously irrevocable elections in benefit
programs which, for various reasons, ultimately prove to be
not to their advantage. Moreover, CSC was concerned about the
"windfall" aspects due to the significantly greater value of
the CSR annuity and the fact that there would be an additional
net cost to the CSR fund, which would not be recouped as a
result of the deposit Professor Johnston would be required to
make.
3
Given the arguments on both sides, the Congress determined
that this legislation is meritorious.
Recommendation
5
In its views letter on the enrolled bill, Navy continues
support of Mr. Johnston's claim and recommends approval.
CSC now also recommends approval.
Although we share CSC's objections to H.R. 1401, we do not
believe the information available to us in Professor Johnston's
case warrants disapproval and, accordingly, recommend approval.
James Assistant m. Director Trey for
Legislative Reference
Enclosures
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 408
Date: september 29, 1975
Time: 330pm
FOR ACTION: NSC/S
CC (for information):
Jim Cavanaugh
Dick Parsons
Jack Marsh
Max Friedersdorf
Warren Hendriks
Ken Lazarus
FROM THE STAFF SECRETARY
DUE: Date: September 30
Time: noon
SUBJECT:
H.R. 1401 - For the Relief of Robert M. Johnston
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
X For Your Comments
Draft Remarks
REMARKS:
Please return to Judy Johnston, Ground Floor West Wing
Recommend approval. -- Ken Lazarus 9/30/75
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
telephone the Staff Secretary immediately.
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 408
Date: september 29, 1975
Time: 330pm
FOR ACTION: NSC/S
CC (for information):
Jim Cavanaugh
Dick Parsons
Jack Marsh
Max Friedersdorf
Warren Hendriks
Ken Lazarus
FROM THE STAFF SECRETARY
DUE: Date: September 30
Time: noon
SUBJECT:
H.R. 1401 - For the Relief of Robert M. Johnston
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
X For Your Comments
Draft Remarks
REMARKS:
Approve. RP
Please return to Judy Johnston, Ground Floor West Wing
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
telephone the Staff Secretary immediately.
THE WHITE HOUSE
WASHINGTON
September 30, 1975
MEMORANDUM FOR:
JIM CAVANAUGH
FROM:
MAX L. FRIEDERSDORF m.b.
SUBJECT:
H.R. 1401 - For the Relief of Robert M. Johnston
The Office of Legislative Affairs concurs with the agencies
that the
subject bill be signed.
Attachments
Calendar No. 377
94TH CONGRESS
SENATE
REPORT
1st Session
No. 94-384
ROBERT M. JOHNSTON
SEPTEMBER 18 (legislative day, SEPTEMBER 12), 1975.-Ordered to be printed
Mr. EASTLAND, from the Committee on the Judiciary,
submitted the following
REPORT
[To accompany H.R. 1401]
The Committee on the Judiciary, to which was referred the bill
(H.R. 1401), for the relief of Robert M. Johnston, having considered
the same, reports favorably thereon without amendment and recom-
mends that the bill do pass.
PURPOSE
The purpose of the proposed legislation is to include service per-
formed by Mr. Robert M. Johnston as a civilian faculty member at
the U.S. Naval Academy from July 1, 1946, through September 30,
1956, as creditable service for Civil Service Retirement (CSR) provid-
ing Mr. Johnston makes the appropriate deposit in the Civil Service
Retirement and Disability Fund within one year after the bill's
enactment.
STATEMENT
In reporting on an identical bill which Senator Mathias sponsored
in the 93d Congress, the Department of the Navy set out the facts of
this case as follows:
Public Law 74-417 (approved on January 16, 1936) estab-
lished the retirement system in effect for civilian members of
the faculty at the U.S. Naval Academy when Mr. Johnston
joined that faculty in 1946. Each such civilian faculty mem-
ber participating in that retirement program was required
to carry a deferred annuity policy which could not include a
57-010
3
2
cash surrender or loan provision. Such faculty member paid
ingly, recommends that H.R. 1401 be favorably considered.
Committee believes that this legislation is meritorious, and accord-
the premium for the annuity policy through a monthly allot-
ment in an amount equal to ten percent of his monthly basic
salary. For each month the allotment was in force, the pay
on legislation in the 93d Congress.
Attached this to and made a part of this report are the agency reports
account of such faculty member was credited with an addi-
DEPARTMENT OF THE NAVY,
tional amount equal to five percent of his monthly basic salary.
OFFICE OF LEGISLATIVE AFFAIRS,
(See Chapter 607 of title 10, United States Code, and the an-
notations thereto.)
Hon. JAMES O. EASTLAND,
Washington, D.C., September 25, 1974.
Pursuant to section 402 of Public Law 84-854 (approved
Chairman, Committee on the Judiciary,
on July 31, 1956), contributions under the retirement system of
U.S. Senate,
established by Public Law 74-417 were discontinued as
Washington, D.C.
September 30, 1956. Although Public Law 84-854 did not did
affect the rights of retired civilian faculty members, it
DEAR MR. CHAIRMAN: Reference is made to your letter to the Sec-
require then current civilian faculty members to elect either
retary of the Navy requesting comment on S. 2298, a bill "For the
relief of Robert M. Johnston."
(1) to retain their vested rights under the retirement system
S. 2298 would include service performed by Mr. Johnston as
created by Public Law 74-417 and commence participation
in the civil service retirement program or (2) to transfer to
the civil service retirement program with full credit for the
1946, of the through September 30, 1956, as creditable service for purposes 1,
ber of the civilian faculty of the U.S. Naval Academy from a July mem-
civil service retirement system.
years of service and the contributions made under the system
created by Public Law 74-417.
From the information available to the Department of the
Each Naval Academy when Mr. Johnston joined that faculty in 1946.
U.S. retirement system in effect for civilian members of the faculty at the
Public Law 74-417 (approved on January 16, 1936) established the
to surrender his rights under the system created by Public
Navy, it appears that Mr. Johnston attempted in 1956 to elect
such civilian faculty member participation in that retirement
Law 74-417 in return for credit in the civil service retirement
ment paid the in premium for the annuity policy through a monthly allot-
not include a cash surrender or loan provision. Such faculty member
program was required to carry a deferred annuity policy which could
Because Mr. Johnston was unable to locate his policy
system. with the association (Teachers Insurance and Annuity to
Association of America) providing coverage pursuant
For an amount equal to ten percent of his monthly basic salary.
"Affidavit of Loss of Policy Contract" which required the
Public Law 74-417, it was necessary for him to complete an
faculty member was credited with an additional amount equal to five
each month the allotment was in force, the pay account of such
signatures of all of his children over 14 years of age. Unfor-
percent United of his monthly basic salary. (See Chapter 607 of title 10,
States Code, and the annotations thereto.)
tunately, one of Professor Johnston's sons, an active duty the
enlisted member of the Marine Corps at the time, signed Mr.
Law 1956), contributions under the retirement system established by Public 31,
Pursuant to section 402 of Public Law 84-854 (approved on July
affidavit but failed to have his signature witnessed.
Johnston's attempt to obtain his son's witnessed signature election
Public 74-417 were discontinued as of September 30, 1956. Although
prior required by section 402 of Public Law 84-854 proved
to the April 1, 1959, deadline for making the futile.
members, it did require then current civilian faculty members to elect
Law 84-854 did not affect the rights of retired civilian faculty
Mr. Johnston's efforts to secure the necessary witnessed signa-
created by Public Law 74-417 and commence participation in the civil
either (1) to retain their vested rights under the retirement system
ture were complicated by the fact that, during transferred the period
service retirement program or (2) to transfer to the civil service re-
designated for making the election, his son was unable
tirement program with full credit for the years of service and the con-
duty. Professor Johnston has indicated that he is elec-
tributions made under the system created by Public Law 74-417.
to to sea recall that anyone advised him of the passing of the
tion cutoff date in 1957 when he could have made a more
From the information available to the Department of the Navy, it
appears that Mr. Johnston attempted in 1956 to elect to surrender his
timely appeal. He has indicated further that he was unaware from
rights under the system created by Public Law 74-417 in return for
until May 1972 of his ineligibility for transfer of credit
credit in the civil service retirement system. Because Mr. Johnston was
TIAA to the civil service retirement system.
The principal effect of enactment of S. 2298 would which be he to
unable to locate his policy with the association (Teachers Insurance
permit Mr. Johnston presently to make the election
and Annuity Association of America) providing coverage pursuant
to Public Law 74-417, it was necessary for him to complete an "Affi-
did not make 18 years ago.
The Department of the Navy supports enactment of S.
davit of Loss of Policy Contract" which required the signatures of
all of his children over 14 years of age. Unfortunately, one of Pro-
2298. an identical bill, S. 2298, passed the Senate in the The 93d
fessor Johnston's sons, an active duty enlisted member of the Marine
Corps at the time, signed the affidavit but failed to have his signature
Congress, Although no action was taken in the House of Representatives.
S.R. 384
S.R. 384
4
5
witnessed. Mr. Johnston's attempt to obtain his son's witnessed signa-
election, for all subsequent service participation in the CSR system
ture prior to the April 1, 1959, deadline for making the election re-
was required. Apparently, Mr. Johnston was the only active faculty
quired by section 402 of Public Law 84-854 proved futile. Mr. John-
member in 1956 who did not take the necessary steps to surrender his
ston's efforts to secure the necessary witnessed signature were compli-
vested rights under the TIAA program in exchange for CSR credit.
cated by the fact that, during the period designated for making the
If S. 2298 is enacted and Mr. Johnston is permitted to exchange his
election, his son was transferred to sea duty. Professor Johnston has
credit under the TIAA system (for the period July 1, 1946 through
indicated that he is unable to recall that anyone advised him of the
September 30, 1956) for credit under the CSR system, we calculate
passing of the election cutoff date in 1957 when he could have made
his annuity, based on an assumed retirement date of October 1, 1974,
a more timely appeal. He has indicated further that he was unaware
would be $1231 per month. If S. 2298 is not enacted and Mr. Johnston
until May 1972 of his ineligibility for transfer of credit from TIAA to
cannot receive CSR credit for that period, his annuity would be $839
the civil service retirement system.
per month under CSR (effective October 1, 1974) plus $100 per month
The principal effect of enactment of S. 2298 would be to permit
from TIAA which would not be effective until age 65 (July 24, 1976).
Mr. Johnston presently to make the election which he did not make
Enactment of a private bill to give Mr. Johnston a second election
18 years ago.
after his original election which, with the passage of time, turned out
The Department of the Navy supports enactment of S. 2298.
to be to his disadvantage, could generate similar demands from other
The Office of Management and Budget advises that, from the stand-
individuals for an opportunity to revoke or revise a previous irrevoca-
point of the Administration's program, there is no objection to the
ble election which, for various reasons, ultimately proved to be not to
presentation of this report for the consideration of the Committee.
their advantage.
For the Secretary of the Navy.
For example, individuals who elect not to participate in the Federal
Sincerely yours,
Employees Health Benefits Program during periods of good health
E. H. WILLETT,
are not permitted to change that election immediately upon the onset
Captain, U.S. Navy, Deputy Chief.
of illness or injury. Similarly, retirees who decline life insurance
coverage during their active service are not permitted to elect to begin
such coverage after retirement. Enactment of S. 2298 would lend
U.S. CIVIL SERVICE COMMISSION,
support to the efforts of people such as those cited in the examples to
Washington, D.C., September 20, 1974.
obtain another opportunity to acquire such benefits and would tend
Hon. JAMES O. EASTLAND,
to put Federal benefit programs in the position of indemnifying eni-
Chairman, Committee on the Judiciary,
ployees against imprudent elections.
U.S. Senate, Washington, D.C.
For these reasons, the Commission objects to the enactment of S.
DEAR MR. CHAIRMAN This is in further reply to your request for
2298.
the Commission's views on S. 2298, a bill "For the relief of Robert M.
The Office of Management and Budget advises that, from the stand-
Johnston."
point of the Administration's program, there is no objection to the
S. 2298 would include service performed by Mr. Johnston as a
submission of this report.
civilian faculty member at the U.S. Naval Academy from July 1, 1946,
By direction of the Commission:
through September 30, 1956, as creditable service for Civil Service
Sincerely yours,
Retirement (CSR) providing Mr. Johnston makes the appropriate
ROBERT HAMPTON, Chairman.
deposit in the Civil Service Retirement and Disability Fund within
one year after the bill's enactment.
Originally, a retirement system was established for civilian members
of the faculty of the U.S. Naval Academy by Public Law 74-417 (ap-
proved on January 16, 1936). Each participating member was re-
quired to purchase from the Teachers Insurance and Annuity Associa-
tion a deferred annuity policy which could not include any provision
for loan or cash surrender. Premiums were paid through a monthly
allotment in an amount equaling ten percent of monthly basic salary.
The Government shared the cost by adding five percent to the monthly
basic salary of participants.
Then, in 1956, civilian faculty members were required by section 402
of Public Law 84-854 (approved on July 31, 1956) to elect either to
retain their vested rights under the TIAA program acquired by past
service or to transfer credit and contributions for that past service to
the Civil Service Retirement and Disability Fund. Irrespective of the
S.R. 384
S.R. 384
94TH CONGRESS
HOUSE OF REPRESENTATIVES
REPORT
1st Session
No. 94-82
ROBERT M. JOHNSTON
MARCH 19, 1975.-Committed to the Committee of the Whole House and
ordered to be printed
Mr. FLOWERS, from the Committee on the Judiciary,
submitted the following
REPORT
[To accompany H.R. 1401]
The Committee on the Judiciary, to whom was referred the bill
(H.R. 1401) for the relief of Robert M. Johnston, having considered
the same, report favorably thereon without amendment and recom-
mend that the bill do pass.
PURPOSE
The purpose of the proposed legislation is to authorize the inclusion
of service performed by Mr. Johnston as a member of the civilian fac-
ulty of the U.S. Naval Academy from July 1, 1946, through Septem-
ber 30, 1956, as creditable service for purposes of the civil service
retirement system.
STATEMENT
The Department of the Navy in its report on the 93d Congress bill
stated that it supported enactment of the bill.
As is outlined in the Navy Department report, Public Law 74-417
(approved on January 16, 1936) established the retirement system in
effect for civilian members of the faculty at the U.S. Naval Academy
when Mr. Johnston joined that faculty in 1946. Each civilian faculty
member participating in that retirement program was required to
carry a deferred annuity policy which could not include cash surrender
or loan provision. The faculty member paid the premium for the an-
nuity policy through a monthly allotment in an amount equal to ten
percent of his monthly basic salary. For each month the allotment was
in force, the pay account of the faculty member was credited with an
additional amount equal to five percent of his monthly basic salary.¹
Under section 402 of P.L. 84-854 (approved on July 31, 1956), con-
tributions under the retirement system established by P.L. 74-417 were
discontinued as of September 30, 1956. Although P.L. 84-854 did not
1 See Chapter 607 of Title 10, United States Code, and the annotations thereto.
38 007
2
3
affect the rights of retired civilian faculty members, it did require then
not include a cash surrender or loan provision. Such faculty member
current civilian faculty members to elect either (1) to retain their
paid the premium for the annuity policy through a monthly allot-
vested rights under the retirement system created by P.L. 74-417 and
ment in an amount equal to ten percent of his monthly basic salary.
commence participation in the civil service retirement program or (2)
For each month the allotment was in force, the pay account of such
to transfer to the civil service retirement program with full credit for
faculty member was credited with an additional amount equal to five
the years of service and the contributions made under the system
percent of his monthly basic salary. (See Chapter 607 of title 10,
created by P.L. 74-417.
United States Code, and the annotations thereto.)
The Navy states that information it has obtained indicates that Mr.
Pursuant to section 402 of P.L. 84-854 (approved on July 31, 1956),
Johnston attempted in 1956 to elect to surrender his rights under the
contributions under the retirement system established by P.L. 74-417
system created by P.L. 74-417 in return for credit in: the civil service
were discontinued as of September 30, 1956. Although P.L. 84-854 did
retirement system. Mr. Johnston was unable to locate his policy with
not affect the rights of retired civilian faculty members, it did require
the association (Teachers Insurance and Annuity Association of
then current civilian faculty members to elect either (1) to retain
America) providing coverage pursuant to P.L. 74-417, SO it was neces-
their vested rights under the retirement system created by P.L. 74-417
sary for him to complete an "Affidavit of Loss of Policy Contract"
and commerce participation in the civil service retirement program or
which required the signatures of all of his children over 14 years of
(2) to transfer to the civil service retirement program with full credit
age.
for the years of service and the contributions made under the system
Unfortunately, one of Professor Johnston's sons, an active duty
created by P.L. 74-417.
enlisted member of the Marine Corps at the time, signed the affidavit
From the information available to the Department of the Navy, it
but failed to have his signature witnessed! Mr. Johnston's attempt to
appears that Mr. Johnston attempted in 1956 to elect to surrender his
obtain his son's witnessed signature prior to the April 1, 1957, deadline
rights under the system created by P.L. 74-417 in return for credit in
for making the election required by section 402 of P.L. 84-854 proved
the civil service retirement system. Because Mr. Johnston was unable
futile. Mr. Johnston's efforts to secure the necessary witnessed signa-
to locate his policy with the association (Teachers Insurance and
ture were complicated by the fact that, during the period designated
Annuity Association of America) providing coverage pursuant to P.L.
for making the election, his son was transferred to sea daty. Professor
74-417, it was necessary for him to complete an "Affidavit of Loss of
Johnston has indicated that he is unable to recall that anyone advised
Policy Contract" which required the signatures of all of his children
him of the passing of the election cutoff date in 1957 when he could
over 14 years of age. Unfortunately, one of Professor Johnston's sons,
have made a more timely appeal. He has indicated further that he was
an active duty enlisted member of the Marine Corps at the time, signed
unaware until May 1972 of his ineligibility for transfer of credit from
the affidavit but failed to have his signature witnessed. Mr. Johnston's
TIAA to the civil service retirement system.
attempt to obtain his son's witnessed signature prior to the April 1,
The Navy Department report summarizes the effect of the bill by
1957, deadline for making the election required by section 402 of P.L.
stating: "The principal effect of enactment of H.R. 12186 would be
84-854 proved futile. Mr. Johnston's efforts to secure the necessary
to perinit Mr. Johnston presently to make the election which he did not
witnessed signature were complicated by the fact that, during the
make 18 years ago."
period designated for making the election, his son was transferred to
It is recommended that the bill be considered favorably.
sea duty. Professor Johnston has indicated that he is unable to recall
DEPARTMENT OF THE NAVY,
that anyone advised him of the passing of the election cutoff date in
OFFICE OF LEGISLATIVE Affairs,
1957 when he could have made a more timely appeal. He has indicated
Washington, D.C., September 25, 1974.
further that he was unaware until May 1972 of his ineligibility for
Hon. PETER W. RODINO, Jr.,
transfer of credit from TIAA to the civil service retirement system.
Chairman, Committee on the Judiciary, House of Representatives,
The principal effect of enactment of H.R. 12186 would be to permit
Washington, D.C.
Mr. Johnston presently to make the election which he did not make
DEAR MR. CHAIRMAN Reference is made to your letter to the Secre-
18 years ago.
tary of the Navy requesting comment on H.R. 12186, a bill "For the
The Department of the Navy supports enactment of H.R. 12186.
The Office of Management and Budget advises that, from the stand-
relief of Robert M. Johnston."
H.R. 12186 would include service performed by Mr. Johnston as a
point of the Administration's program, there is no objection to the
member of the civilian faculty of the U.S. Naval Academy from July 1,
presentation of this report for the consideration of the Committee.
1946, through September 30, 1956, as creditable service for purposes of
For the Secretary of the Navy.
Sincerely yours,
the civil service retirement system!
E. H. WILLETT,
Public Law 74-417 (approved on January 16, 1936) established the
retirement system in effect for civilian members of the faculty at the
Captain, U.S. Navy,
U.S. Naval Academy when Mr. Johnston joined that faculty in 1946.
Deputy Chief.
Each such civilian faculty member participating in that retirement
program was required to carry a deferred annuity policy which could
H.R. 82
H.R. 82
H. R. 1401
Ainety-fourth Congress of the United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday, the fourteenth day of January,
one thousand nine hundred and seventy-five
An Act
For the relief of Robert M. Johnston.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That service per-
formed by Robert M. Johnston, of Annapolis, Maryland, from July 1,
1946, through September 30, 1956, as a member of the civilian faculty
of the United States Naval Academy, shall be included as creditable
service for purposes of subchapter III of chapter 83 of title 5, United
States Code (relating to civil service retirement annuities), if, within
one year after the date of enactment of this Act, Robert M. Johnston
deposits a sum equal to SO much of the repurchase price of his annuity
policy carried as required by the Act of January 16, 1936 (49 Stat.
1092), as amended, as is based on the monthly allotments which were
registered with the Navy Allotment Office toward the purchase of
that annuity. Such deposit shall be in lieu of the deposit provided under
section 8334(c) of such title 5.
SEC. 2. The Secretary of the Navy shall certify to the Civil
Service Commission the amount of the repurchase price of the annuity
referred to in the first section of this Act. The Civil Service Commis-
sion shall provide Robert M. Johnston such information as may be
necessary to carry out the purposes of this Act.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
September 23, 1975
Dear Mr. Director:
The following bills were received at the White
House on September 23rd:
H.R. 543
H.R. 1401
Please let the President have reports and
recommendations as to the approval of these
bills as soon as possible.
Sincerely,
Robert D. Linder
Chief Executive Clerk
The Honorable James T. Lynn
Director
Office of Management and Budget
Washington, D. C.