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1975/12/23 HR6851 Annuity Increase for Former Lighthouse Service Employees
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1975/12/23 HR6851 Annuity Increase for Former Lighthouse Service Employees
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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States of America his copyrights in all of his unpublished writings in National Archives collections.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.