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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 Gerald R. Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections.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.