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1669176
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1975/12/23 HR6851 Annuity Increase for Former Lighthouse Service Employees
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1669176
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1975/12/23 HR6851 Annuity Increase for Former Lighthouse Service Employees
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1975-12-31
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The original documents are located in Box 35, folder "12/23/75 HR6851 Annuity Increase for Former Lighthouse Service Employees" 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 Gerald R. Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections.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. Digitized from Box 35 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library APPROVED DEC 23 1975 ACTION THE WHITE HOUSE WASHINGTON Last Day: December 29 December 22, 1975 Posted in Colorado 12/23 MEMORANDUM FOR THE PRESIDENT 5/2/24 archives FROM: JIM CANNON SUBJECT: Enrolled Bill H.R. 6851 - Annuity Increase for Former Lighthouse Service Employees Attached for your consideration is H.R. 6851, sponsored by Representative Oberstar, which would grant 285 civilian retirees of the former Lighthouse Service an annual annuity increase of $270, starting in calendar year 1976. Additional discussion of the enrolled bill 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. 6851 at Tab B. FORD is LIBRARY DERALD A PRESIDENT EXECUTIVE OFFICE OF THE PRESIDENT UNITED OFFICE OF MANAGEMENT AND BUDGET STATES WASHINGTON, D.C. 20503 DEC 2 2 1975 MEMORANDUM FOR THE PRESIDENT Subject: Enrolled Bill H.R. 6851 - Annuity increase for former Lighthouse Service employees Sponsor - Rep. Oberstar (D) Minnesota Last Day for Action December 29, 1975 - Monday Purpose Increases annuities of retired civilian Lighthouse Service employees by $270 a year, effective January 1, 1976. Agency Recommendations Office of Management and Budget Approval Department of Transportation Approval Civil Service Commission Does not recommend veto Discussion The enrolled bill would grant 285 civilian retirees of the former Lighthouse Service an annual annuity increase of $270, starting in calendar year 1976. As explained below, this increase is intended to parallel an annual increase of $240 granted to comparable civil service retirees effective August 1, 1974. The extra $30 reflects the two cost-of-living ad- justments of 5.1% and 7.3% granted to civil service retirees during 1975. The Lighthouse Service Retirement Act applies to a small group of civilian lighthouse keepers who were not converted to military status when the former Lighthouse Service was merged with the Coast Guard in 1939. Nearly all eligible 2 employees under this non-contributory system have now retired. Only one or two eligible active employees remain, so that the system is now essentially a closed one. The benefits under the Lighthouse Service retirement system have generally been conformed to those of the civil service retirement system by "catch-up" legislation enacted from time to time. A 1972 amendment to the Lighthouse law libera- lized the annuity computation formula by permitting those who retired after its effective date to compute annuities based on a "high-3" average salary instead of "high-5." This change, identical with the 1969 liberalization for civil service retirement, produces a higher annuity. In 1974, the Congress provided a $20 per month ($240 per year) increase for pre-1969 civil service retirees to compensate for the lower annuity produced by the less generous formula applicable to them. The enrolled bill would provide the same increase for pre-1972 retirees under the Lighthouse system, adjusted to $22.50 a month ($270 per year) to reflect cost-of-living increases since 1974. The House Merchant Marine and Fisheries Committee report estimates the enrolled bill would cost $38,475 in fiscal year 1976, and $76,950 for each of the following 5 fiscal years. The Department of Transportation and the Civil Service Commission (CSC) supported enactment of a $240 increase in testimony, noting that such an increase would maintain desir- able conformity with the civil service retirement system. CSC in its views letter on the enrolled bill points out that the increase of $270 instead of $240 would exceed the civil service increase and erode the principle of conformity. CSC notes that the $240 was granted civil service retirees to compensate for specific liberalizations, without reference to cost-of-living adjustments. However, the Commission does not recommend veto of the enrolled bill. While it is true that the enrolled bill's recognition of cost-of-living adjustments paid subsequent to enactment of the $240 increase could be a precedent for similar changes in other "catch-up" legislation, we agree that the provision is not so objectionable as to warrant a veto. James Assistant m. Director Frey for Legislative Reference Enclosures OF TRANSPORTATION OFFICE OF THE SECRETARY OF TRANSPORTATION UNITED STATES OF AMERICA WASHINGTON, D.C. 20590 DEC 19 1975 Honorable James T. Lynn Director Office of Management and Budget Washington, D.C. 20503 Dear Mr. Lynn: Reference is made to your request for the views of the Department of Transportation concerning H.R. 6851, an enrolled bill "To increase the retired pay of certain members of the former Lighthouse Service." H.R. 6851 would increase the annual rate of retired pay of certain members of the former Lighthouse Service, under section 6 of the Act of June 20, 1918, as amended, by $270 per year. The Department of Transportation administers the laws relating to the retired pay of former Lighthouse Service employees; and we have proposed legislation similar to H.R. 6851 to amend the Act of June 20, 1918, under which former Lighthouse Service employees are retired. That Act was amended on October 2, 1972, to permit the annuity computation of a retiree on or after that date to be based on the average annual pay received for the last three, rather than the last five, years of service. This change followed a similar amendment in 1969 to the Civil Service Retirement System. In 1974, Public Law 93-273 authorized an increase of $20 per month for Civil Service employees who retired prior to October 20, 1969, the date the Civil Service Retirement System was amended to include the three vice five year averaging provision. H.R. 6851 extends to former Lighthouse Service employees who retired prior to October 2, 1972, the same benefits already provided Civil service retirees. Although our original proposal recommended an annual increase of $240, the enrolled bill would increase that amount to $270 in recognition of the 12.4 per cent automatic cost-of- living increases which Civil Service retirees received during 1975. We recommend that the President sign the enrolled bill. Sincerely, General Counsel UNITED STATE COMMISSION UNITED STATES CIVIL SERVICE COMMISSION WASHINGTON, D.C. 20415 CHAIRMAN December 19, 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. 6851, "To increase the retired pay of certain numbers of the former Lighthouse Service." H.R. 6851 would amend the Lighthouse Service Retirement Act (33 U.S.C. 763) which is applicable to civilian employees of the former Lighthouse Service. Specifically, the bill would authorize a $270 per year ($22.50 per month) increase in the retired pay of former Lighthouse Service civil- ian personnel who retired on or before October 1, 1972. From on and after October 2, 1972, annuities of Lighthouse Service personnel have been com- puted on the basis of "high-3" rather than "high-5" years average salary. This increase is similar to that granted Civil Service retirees by P.L. 93-273, enacted April 26, 1974 except that the $270 includes the 5.1% and the 7.3% cost-of-living annuity increases granted civil service annuitants since August 1, 1974, the effective date of the increase under P.L. 93-273. The Commission views conformity among Federal retirement systems as a desirable feature whenever possible. Civil service retirees were granted the $240 increase to compensate for two specific liberalizations for fu- ture retirees without reference to cost-of-living adjustments. The $270 proposed for Lighthouse retirees would exceed the civil service increase and erode the principle of conformity. The Lighthouse Service Retirement Act, however, is administered by the U.S. Coast Guard, Department of Transportation and enactment of H.R. 6851 would not affect any of the programs administered by the Commission. 2 Accordingly, the Commission does not recommend that the President veto enrolled bill, H.R. 6851. By direction of the Commission: Sincerely Robert Hongdon EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D.C. 20503 DEC 2 2 1975 MEMORANDUM FOR THE PRESIDENT Subject: Enrolled Bill H.R. 6851 - Annuity increase for former Lighthouse Service employees Sponsor - Rep. Oberstar (D) Minnesota Last Day for Action December 29, 1975 - Monday Purpose Increases annuities of retired civilian Lighthouse Service employees by $270 a year, effective January 1, 1976. Agency Recommendations Office of Management and Budget Approval Department of Transportation Approval Civil Service Commission Does not recommend veto Discussion The enrolled bill would grant 285 civilian retirees of the former Lighthouse Service an annual annuity increase of $270, starting in calendar year 1976. As explained below, this increase is intended to parallel an annual increase of $240 granted to comparable civil service retirees effective August 1, 1974. The extra $30 reflects the two cost-of-living ad- justments of 5.1% and 7.3% granted to civil service retirees during 1975. The Lighthouse Service Retirement Act applies to a small group of civilian lighthouse keepers who were not converted to military status when the former Lighthouse Service was merged with the Coast Guard in 1939. Nearly all eligible Attached document was not scanned because it is duplicated elsewhere in the document 94TH CONGRESS HOUSE OF REPRESENTATIVES REPORT 1st Session No. 94-663 LIGHTHOUSE SERVICE RETIRED PAY NOVEMBER 13, 1975.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed Mrs. SULLIVAN, from the Committee on Merchant Marine and Fisheries, submitted the following REPORT [To accompany H.R. 6851] The Committee on Merchant Marine and Fisheries, to whom was referred the bill (H.R. 6851) to increase the retired pay of certain members of the former Lighthouse Service, having considered the same, report favorably thereon with an amendment and recommend that the bill as amended do pass. The amendment is as follows: In line 8, strike "240.", and insert in lieu thereof "270.". BACKGROUND The former United States Lighthouse Service, which functioned in the Department of Commerce until 1939, was consolidated with the Coast Guard effective July 1, 1939, and at that time, provisions were made for the gradual replacement of the civilian personnel in the Lighthouse Service by Coast Guard military personnel. The officers and employees of the Lighthouse Service who retained their civilian status in the Coast Guard after the consolidation, con- tinued to be governed by the provisions of the basic Lighthouse Serv- ice Retirement Act, first passed in 1918, and amended several times since then. Basically that Act, as amended, provides for retirement benefits similar to the retirement benefits of Civil Service employees. The most recent amendment of the Lighthouse Service Retirement Act provided for computing a retiree's annuity on the basis of his average annual pay for his last three, rather than his last five, years of service. This change, enacted in 1972, followed a similar change to the Civil Service Retirement System, enacted in 1969. It applied only to those who retired on or after October 2, 1972, the date of enactment. Subse- quently, in 1974, Public Law 93-273 authorized an increase of $20 per month for former Civil Service personnel who retired prior to Octo- ber 20, 1969, the date the Civil Service Retirement System was 57-006 2 3 amended to include the three year, in lieu of the five year, averaging Budget Office, pursuant to Section 403 of the Congressional Budget provision. H.R. 6851 would provide for the same $20 per month in- Act of 1974; and crease for those former Lighthouse Service personnel who retired (D) The Committee has received no report from the Committee on prior to October 2, 1972, thus extending to those retirees the same Government Operations as to oversight findings and recommendations benefit provided in 1972 for Civil Service retirees. arrived at pursuant to Clause 2(b) (2) of rule X. COMMITTEE ACTION INFLATIONARY IMPACT STATEMENT Hearings were held before the Subcommittee on June 26, 1975, and Pursuant to clause 2(1) (4) of rule XI of the Rules of the House testimony was received from Mr. Oberstar, author of the bill, from of Representatives, the Committee has determined that the legisla- Thomas A. Tinsley, Director, Bureau of Retirement, Insurance and tion includes no potential for inflationary impact. Occupational Health U.S. Civil Service Commission, and from Rear Admiral Robert W. Durfey, Chief, Office of Personnel, U.S. Coast CHANGES IN EXISTING LAW Guard, accompanied by Lt. Michael C. Grace, Office of the Chief Counsel, U.S. Coast Guard. The testimony of all three witnesses was in If enacted, this bill would make no changes in existing law. support of the bill. During the course of his testimony on the bill, the sponsor recom- DEPARTMENTAL REPORTS mended an amendment, based upon the fact that, since the amendment to the Civil Service Retirement benefits in 1974 (which provided the H.R. 6851 was the subject of reports from the Civil Service Com- comparable increase for Civil Service retirees now proposed in H.R. mission and the Department of the Treasury. These reports follow 6851 for Lighthouse Service retirees), there have been two cost-of- herewith: living increases, the first of 7.3 percent, and the second of 5.1 percent. U.S. CIVIL SERVICE Commission, H.R. 6851 was considered by the Subcommittee in markup session on Washington, D.C., June 26, 1975. September 24, 1975. In accordance with the sponsor's recommendation, Hon. LEONOR K. (Mrs. John B.) SULLIVAN, the Subcommittee adopted an amendment and unanimously recom- Chairman, Committee on Merchant Marine and Fisheries, House of mended favorable Committee action on the bill, as SO amended. On Representatives, Washington, D.C. October 22, 1975, the bill, as amended, was ordered reported by the DEAR MRS. SULLIVAN: This is in further reply to your request for the Full Committee, by unanimous voice vote. Commission's views on H.R. 6851, a bill "To increase the retired pay of certain members of the former Lighthouse Service." COST OF THE LEGISLATION H.R. 6851 would amend the Lighthouse Service Retirement Act (33 U.S.C. 763) which is applicable to civilian employees of the former Pursuant to clause 7 of rule XIII of the Rules of the House of Rep- Lighthouse Service. Specifically, the bill would authorize a $20 per resentatives, the Committee estimates that the cost of the legislation month increase in the retired pay of former Lighthouse Service civilian will be $38,475 for fiscal year 1976, and $76,950 for each of the follow- personnel who retired on or before October 1, 1972. From on and after ing five fiscal years. This estimate is based upon the eligibility of 285 October 2, 1972, annuities of Lighthouse Service personnel have been retirees, the number eligible for the increase provided at the time of computed on the basis of "high-3" rather than "high-5" years average the hearings. The cost will be gradually reduced as the retirees are salary. removed from the retired roles. The estimate for fiscal year 1976 is The proposed increase is similar to that granted civil service retirees based upon passage of the legislation prior to January 1, 1976. by Public Law 93-273, enacted April 26, 1974. The Commission views conformity as a desirable feature whenever possible. Additionally, COMPLIANCE WITH CLAUSE 2(1) (3) OF RULE XI since retirement benefits for former Lighthouse Service civilian per- With respect to the requirements of Clause 2(1) (3) of rule XI of sonnel are administered by the United States Coast Guard, Depart- the Rules of the House of Representatives- ment of Transportation, enactment of H.R. 6851 would not affect any of the programs administered by the Civil Service Commission. Ac- (A) No oversight hearings on this subject have been held; cordingly, the Commission has no objection to enactment of H.R. 6851. (B) Pursuant to Section 308 of the Congressional Budget Act The Office of Management and Budget advises that from the stand- of 1974, the Committee reports that the additional expenditure of point of the Administration's program there is no objection to the sub- $38,475 in fiscal year 1976 was contained within the level of Committee mission of this report. Estimates submitted to the Committee on the Budget on March 14, By direction of the Commission: 1975; (C) No estimate and comparison of costs has been requested or re- Sincerely yours, ROBERT HAMPTON, ceived by the Committee from the Director of the Congressional Chairman. H.R. 663 H.R. 663 4 GENERAL COUNSEL OF THE TREASURY, Washington, D.C., June 27, 1975. Hon. LEONOR K. SULLIVAN, Chairman, Committee on Merchant Marine and Fisheries, House of Representatives, Washington, D.C. DEAR MADAM CHAIRMAN: Reference is made to your requests for the views of this Department on H.R. 1535, "To increase the amount of benefits payable to widows of certain former employees of the Lighthouse Service," and H.R. 6861, "To increase the retired pay of certain members of the former Lighthouse Service." H.R. 1535 would increase the amount of monthly benefits payable to widows of certain employees and former employees of the Light- house Service from $100 per month to $200 per month. H.R. 6851 would increase the annual retired pay of certain members of the Lighthouse Service by $240. The Department has no comment on the bills. The Department has been advised by the Office of Management and Budget that there is no objection from the standpoint of the Adminis- tration's program to the submission of this report to your Committee. Sincerely yours, RICHARD R. ALBRECHT, General Counsel. H.R. 663 H. R. 6851 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 Art To increase the retired pay of certain members of the former Lighthouse Service. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the annual rate of retired pay received by a person under section 6 of the Act of June 20, 1918, as amended and supplemented (33 U.S.C. 736-765), who was retired on or before October 1, 1972, shall, effective on the first day of the calendar month following enactment of this Act, be increased by $270. Speaker of the House of Representatives. Vice President of the United States and President of the Senate. 4 December 17, 1975 Dear Mr. Director: The following bills were received at the White House on December 17th: H.R. 1535 H.R. 5559 H.R. 6851 H.R. 6874 H.R. 8151 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 Nonorable James T. Lynn Director Office of Management and Budget Washington, D. C.