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    "title": "1975/10/03 HR1401 Relief of Robert M Johnston",
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    "ocrText": "The original documents are located in Box 30, folder \"10/3/75 HR1401 Relief of Robert M\nJohnston\" of the White House Records Office: Legislation Case Files at the Gerald R. Ford\nPresidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nExact duplicates within this folder were not digitized.\nfrom Box 30 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library\nAPPROVED75\nSigned 10/3\nACTION\nTHE WHITE HOUSE\nWASHINGTON\nLast Day: October 4\nSeptember 30, 1975\nTo archives\n10/6\nPartel\nMEMORANDUM FOR THE PRESIDENT\n10/6\nFROM:\nJIM CANNON\n&\nSUBJECT:\nEnrolled Bill H.R. 1401 - For the\nRelief of Robert M. Johnston\nAttached for your consideration is H.R. 1401, sponsored\nby Representative Holt, which provides that service\nperformed by Robert M. Johnston as a civilian faculty\nmember at the U.S. Navy Academy from July 1, 1946\nthrough September 30, 1956, be creditable service\nfor the purpose of Civil Service Retirement.\nDetailed information is provided in OMB's enrolled\nbill report at Tab A.\nOMB, Max Friedersdorf, Counsel's Office (Lazarus)\nand I recommend approval of the enrolled bill.\nRECOMMENDATION\nThat you sign H.R. 1401 at Tab B.\nRicdam Records office 10/4/95 10:30AM\nInfo to Press Offee 10/4/75 10:35AM\nFORD & BERALD LIBRARY\nPRESIDENT\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE\nUNITED\nOFFICE OF MANAGEMENT AND BUDGET\nSENDITE\nSTATES\nWASHINGTON, D.C. 20503\nG\nSEP 29 1975\nMEMORANDUM FOR THE PRESIDENT\nSubject: Enrolled Bill H.R. 1401 - For the relief of\nRobert M. Johnston\nSponsor - Rep. Holt (R) Maryland\nLast Day for Action\nOctober 4, 1974 - Saturday\nPurpose\nProvides Mr. Johnston with the option of transferring to the\nCivil Service Retirement System his retirement coverage from\nJuly 1, 1946 through September 30, 1956 as a professor at\nthe U.S. Naval Academy.\nAgency Recommendations\nOffice of Management and Budget\nApproval\nDepartment of the Navy\nApproval\nCivil Service Commission\nApproval\nDiscussion\nAs of September 30, 1956, under provisions of P.L. 84-854,\nfaculty members at the U.S. Naval Academy were brought under\nthe Civil Service Retirement (CSR) System. Prior to that\ntime, they had a special retirement program with the Teachers\nInsurance and Annuity Association (TIAA). At the time of the\nchangeover, all faculty members were given the option of\neither retaining their vested rights under the earlier system\nfor their previous service, or transferring to the CSR system\nfull credit for their years of service and the contributions\nmade under the previous retirement program. The deadline for\nthis election was April 1, 1957.\n2\nRecords of the Navy Department indicate that Professor Johnston\nwas the only active faculty member in 1956 who did not elect\nto surrender his rights under the former program in return for\ncredit in the CSR system. H.R. 1401 would retroactively\nprovide Mr. Johnston with that option, providing he makes\nthe appropriate deposit in the CSR fund within one year after\nenactment.\nBackground\nAccording to the Navy Department, Mr. Johnston apparently\nattempted in 1956 to elect to surrender his rights under\nhis TIAA retirement plan, but was unable to locate his policy.\nConsequently, it was necessary for him to complete an\n\"Affidavit of Loss of Policy Contract\" which required the\nwitnessed signatures of all of his children over 14 years\nof age.\nOne of Professor Johnston's sons--an enlisted member of the\nMarine Corps on active duty at the time--signed the affidavit\nbut failed to have his signature witnessed. Accordingly,\nMr. Johnston returned the form to his son so as to have the\nsignature witnessed, but his efforts to secure the necessary\nwitnessed signature were complicated by the fact that during\nthe period designated for making the election Mr. Johnston's\nson was transferred to sea duty.\nMr. Johnston has indicated that he cannot recall being advised\nof the passage of the April 1, 1957 cutoff date for making the\ntransfer, and has claimed that he was unaware until May 1972\nof his ineligibility to transfer the TIAA policy to CSR. In\nsupport of these assertions, the Navy Department has in its\nrecords an affidavit from Mr. Johnston as well as other\nsupporting documents.\nIn reports to the Congress on predecessor bills, Navy supported\nenactment, based on the circumstances explained above. The\nCivil Service Commission (CSC), however, objected to the bill\nbecause of the undesirable precedent of allowing employees to\nrevoke or revise previously irrevocable elections in benefit\nprograms which, for various reasons, ultimately prove to be\nnot to their advantage. Moreover, CSC was concerned about the\n\"windfall\" aspects due to the significantly greater value of\nthe CSR annuity and the fact that there would be an additional\nnet cost to the CSR fund, which would not be recouped as a\nresult of the deposit Professor Johnston would be required to\nmake.\n3\nGiven the arguments on both sides, the Congress determined\nthat this legislation is meritorious.\nRecommendation\nIn its views letter on the enrolled bill, Navy continues\nsupport of Mr. Johnston's claim and recommends approval.\nCSC now also recommends approval.\nAlthough we share CSC's objections to H.R. 1401, we do not\nbelieve the information available to us in Professor Johnston's\ncase warrants disapproval and, accordingly, recommend approval.\nJames Assistant m. Director Trey for\nLegislative Reference\nEnclosures\nDEPARTMENT OF THE NAVY\nOF DEFINST\nOFFICE OF THE SECRETARY\nWASHINGTON. D. C. 20350\nwhen UNITED =\nSeptember 25, 1975\nDear Mr. Lynn:\nYour transmittal sheet dated September 24, 1975, enclosing a facsimile\nof an enrolled bill of Congress, H.R. 1401, \"For the relief of Robert M.\nJohnston,\" and requesting comments of the Department of Defense, has\nbeen referred to this Department for appropriate action.\nThe purpose of H.R. 1401 is to include service performed by Mr. Johnston\nas a member of the civilian faculty of the U.S. Naval Academy from July 1,\n1946, through September 30, 1956, as creditable service for purposes of\nthe civil service retirement system.\nPublic Law 74-417 (approved on January 16, 1936) established the retire-\nment system in effect for civilian members of the faculty at the U.S.\nNaval Academy when Mr. Johnston joined that faculty in 1946. Each such\ncivilian faculty member participating in that retirement program was\nrequired to carry a deferred annuity policy which could not include a\ncash surrender or loan provision. Such faculty member paid the premium\nfor the annuity policy through a monthly allotment in an amount equal\nto ten percent of his monthly basic salary. For each month the allot-\nment was in force, the pay account of such faculty member was credited\nwith an additional amount equal to five percent of his monthly basic\nsalary. (See Chapter 607 of title 10, United States Code, and the\nannotations thereto.)\nPursuant to section 402 of P.L. 84-854 (approved on July 31, 1956),\ncontributions under the retirement system established by P.L. 74-417\nwere discontinued as of September 30, 1956. Although P.L. 84-854 did\nnot affect the rights of retired civilian faculty members, it did require\nthen current civilian faculty members to elect either (1) to retain their\nvested rights under the retirement system created by P.L. 74-417 and\ncommence participation in the civil service retirement program or (2) to\ntransfer to the civil service retirement program with full credit\nfor the years of service and the contributions made under the system\ncreated by P.L. 74-417.\nFrom the information available to the Department of the Navy, it appears\nthat Mr. Johnston attempted in 1956 to elect to surrender his rights\nunder the system created by P.L. 74-417 in return for credit in the civil\nservice retirement system. Because Mr. Johnston was unable to locate\nhis policy with the association (Teachers Insurance and Annuity Associa-\ntion of America) providing coverage pursuant to P.L. 74-417, it was\nnecessary for him to complete an \"Affidavit of Loss of Policy Contract\"\nwhich required the signatures of all of his children over 14 years of age.\nREVOLUTION\nUnfortunately, one of Professor Johnston's sons, an active duty enlisted\nmember of the Marine Corps at the time, signed the affidavit but failed\nAMERICAN\nNTENNIAL\n1776-1976\nto have his signature witnessed. Mr. Johnston's attempt to obtain his\nson's witnessed signature prior to the April 1, 1957, deadline for making\nthe election required by section 402 of P.L. 84-854 proved futile.\nMr. Johnston's efforts to secure the necessary witnessed signature were\ncomplicated by the fact that, during the period designated for making\nthe election, his son was transferred to sea duty. Professor Johnston\nhas indicated that he is unable to recall that anyone advised him of the\npassing of the election cutoff date in 1957 when he could have made a\nmore timely appeal. He has indicated further that he was unaware until\nMay 1972 of his ineligibility for transfer of credit from TIAA to the\ncivil service retirement system.\nThe principal effect of enactment of H.R. 1401 would be to permit\nMr. Johnston presently to make the election which he apparently initiated\nin 1956 but was prevented from completing prior to the April 1, 1957,\ndeadline because of administrative difficulties.\nIn view of the foregoing, the Department of the Navy supports approval\nof the enrolled enactment, H.R. 1401.\nSincerely yours,\nJ. William Middendorf II\nSecretary of the Navy\nHonorable James T. Lynn\nDirector, Office of Management\nand Budget\nWashington, D. C. 20503\n2\nUNITED\nSTATE\nCIVIL SERVICE COMMISSION\nUNITED STATES CIVIL SERVICE COMMISSION\nWASHINGTON, D.C. 20415\nCHAIRMAN\nSeptember 26, 1975\nHonorable James T. Lynn\nDirector, Office of Management and Budget\nExecutive Office of the President\nWashington, D. C. 20503\nAttention: Assistant Director for\nLegislative Reference\nDear Mr. Lynn:\nThis is in reply to your request for the Commission's views on enrolled\nbill H.R. 1401, \"For the relief of Robert M. Johnston.\"\nH.R. 1401 would include service performed by Mr. Johnston as a civilian\nfaculty member at the U.S. Naval Academy from July 1, 1946, through\nSeptember 30, 1956, as creditable service for Civil Service Retirement\n(CSR) providing Mr. Johnston makes the appropriate deposit in the Civil\nService Retirement and Disability Fund within one year after the bill's\nenactment.\nOriginally, a retirement system was established for civilian members of\nthe faculty of the U.S. Naval Academy by Public Law 74-417 (approved on\nJanuary 16, 1936). Each participating member was required to purchase\nfrom the Teachers Insurance and Annuity Association a deferred annuity\npolicy which could not include any provision for loan or cash surrender.\nPremiums were paid through a monthly allotment in an amount equaling\nten percent of monthly basic salary. The Government shared the cost by\nadding five percent to the monthly basic salary of participants.\nThen, in 1956, civilian faculty members were required by section 402 of\nPublic Law 84-854 (approved on July 31, 1956) to elect either to retain\ntheir vested rights under the TIAA program acquired by past service or\nto transfer credit and contributions for that past service to the Civil\nService Retirement and Disability Fund. Irrespective of the election,\nfor all subsequent service participation in the CSR System was required.\nApparently, Mr. Johnston was the only active faculty member in 1956 who\ndid not take the necessary steps to surrender his vested rights under the\nTIAA program in exchange for CSR credit.\n2\nInasmuch as the creditability of service in this case is contingent upon\nthe making of the appropriate deposit in the Civil Service Retirement and\nDisability Fund, and inasmuch as Mr. Johnston appears to be the only faculty\nmember active in 1956 who did not elect to exchange his vested rights under\nthe former system for credit under the Civil Service Retirement System, we\nrecommend that the President sign the enrolled bill.\nBy direction of the Commission:\nSincerely yours,\nS\nChairman\nTHE WHITE HOUSE\nACTION MEMORANDUM\nWASHINGTON\nLOG NO.: 408\nDate: september 29, 1975\nTime: 330pm\nFOR ACTION:\nNOC/S\ncc (for information):\nthe\nJim Cavanaugh\nDick Parsons\nJack Marsh\nMax Friedersdorfuh\nWarren Hendriks\nKen Lazarus on\nFROM THE STAFF SECRETARY\nDUE: Date: September 30\nTime: noon\nSUBJECT:\nH.R. 1401 - For the Relief of Robert M. Johnston\nACTION REQUESTED:\nFor Necessary Action\nFor Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nX\nFor Your Comments\nDraft Remarks\nREMARKS:\nPlease return to Judy Johnston, Ground Floor West Wing\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\ndelay in submitting the required material, please\nK. R. COLE, JR.\ntelephone the Staff Secretary immediately.\nFor the President\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nWASHINGTON, D.C. 20503\nRPF\nSEP 29 1975\nMEMORANDUM FOR THE PRESIDENT\nSubject: Enrolled Bill H.R. 1401 - For the relief of\nRobert M. Johnston\nSponsor - Rep. Holt (R) Maryland\nLast Day for Action\nOctober 4, 1974 - Saturday\nPurpose\nProvides Mr. Johnston with the option of transferring to the\nCivil Service Retirement System his retirement coverage from\nJuly 1, 1946 through September 30, 1956 as a professor at\nthe U.S. Naval Academy.\nAgency Recommendations\nOffice of Management and Budget\nApproval\nDepartment of the Navy\nApproval\nCivil Service Commission\nApproval\nDiscussion\nAs of September 30, 1956, under provisions of P.L. 84-854,\nfaculty members at the U.S. Naval Academy were brought under\nthe Civil Service Retirement (CSR) System. Prior to that\ntime, they had a special retirement program with the Teachers\nInsurance and Annuity Association (TIAA). At the time of the\nchangeover, all faculty members were given the option of\neither retaining their vested rights under the earlier system\nfor their previous service, or transferring to the CSR system\nfull credit for their years of service and the contributions\nmade under the previous retirement program. The deadline for\nthis election was April 1, 1957.\n2\nRecords of the Navy Department indicate that Professor Johnston\nwas the only active faculty member in 1956 who did not elect\nto surrender his rights under the former program in return for\ncredit in the CSR system. H.R. 1401 would retroactively\nprovide Mr. Johnston with that option, providing he makes\nthe appropriate deposit in the CSR fund within one year after\nenactment.\nBackground\nAccording to the Navy Department, Mr. Johnston apparently\nattempted in 1956 to elect to surrender his rights under\nhis TIAA retirement plan, but was unable to locate his policy.\nConsequently, it was necessary for him to complete an\n\"Affidavit of Loss of Policy Contract\" which required the\nwitnessed signatures of all of his children over 14 years\nof age.\nOne of Professor Johnston's sons--an enlisted member of the\nMarine Corps on active duty at the time-signed the affidavit\nbut failed to have his signature witnessed. Accordingly,\nMr. Johnston returned the form to his son so as to have the\nsignature witnessed, but his efforts to secure the necessary\nwitnessed signature were complicated by the fact that during\nthe period designated for making the election Mr. Johnston's\nson was transferred to sea duty.\nMr. Johnston has indicated that he cannot recall being advised\nof the passage of the April 1, 1957 cutoff date for making the\ntransfer, and has claimed that he was unaware until May 1972\nof his ineligibility to transfer the TIAA policy to CSR. In\nsupport of these assertions, the Navy Department has in its\nrecords an affidavit from Mr. Johnston as well as other\nsupporting documents.\nIn reports to the Congress on predecessor bills, Navy supported\nenactment, based on the circumstances explained above. The\nCivil Service Commission (CSC), however, objected to the bill\nbecause of the undesirable precedent of allowing employees to\nrevoke or revise previously irrevocable elections in benefit\nprograms which, for various reasons, ultimately prove to be\nnot to their advantage. Moreover, CSC was concerned about the\n\"windfall\" aspects due to the significantly greater value of\nthe CSR annuity and the fact that there would be an additional\nnet cost to the CSR fund, which would not be recouped as a\nresult of the deposit Professor Johnston would be required to\nmake.\n3\nGiven the arguments on both sides, the Congress determined\nthat this legislation is meritorious.\nRecommendation\n5\nIn its views letter on the enrolled bill, Navy continues\nsupport of Mr. Johnston's claim and recommends approval.\nCSC now also recommends approval.\nAlthough we share CSC's objections to H.R. 1401, we do not\nbelieve the information available to us in Professor Johnston's\ncase warrants disapproval and, accordingly, recommend approval.\nJames Assistant m. Director Trey for\nLegislative Reference\nEnclosures\nTHE WHITE HOUSE\nACTION MEMORANDUM\nWASHINGTON\nLOG NO.: 408\nDate: september 29, 1975\nTime: 330pm\nFOR ACTION: NSC/S\nCC (for information):\nJim Cavanaugh\nDick Parsons\nJack Marsh\nMax Friedersdorf\nWarren Hendriks\nKen Lazarus\nFROM THE STAFF SECRETARY\nDUE: Date: September 30\nTime: noon\nSUBJECT:\nH.R. 1401 - For the Relief of Robert M. Johnston\nACTION REQUESTED:\nFor Necessary Action\nFor Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nX For Your Comments\nDraft Remarks\nREMARKS:\nPlease return to Judy Johnston, Ground Floor West Wing\nRecommend approval. -- Ken Lazarus 9/30/75\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\ndelay in submitting the required material, please\ntelephone the Staff Secretary immediately.\nTHE WHITE HOUSE\nACTION MEMORANDUM\nWASHINGTON\nLOG NO.: 408\nDate: september 29, 1975\nTime: 330pm\nFOR ACTION: NSC/S\nCC (for information):\nJim Cavanaugh\nDick Parsons\nJack Marsh\nMax Friedersdorf\nWarren Hendriks\nKen Lazarus\nFROM THE STAFF SECRETARY\nDUE: Date: September 30\nTime: noon\nSUBJECT:\nH.R. 1401 - For the Relief of Robert M. Johnston\nACTION REQUESTED:\nFor Necessary Action\nFor Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nX For Your Comments\nDraft Remarks\nREMARKS:\nApprove. RP\nPlease return to Judy Johnston, Ground Floor West Wing\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\ndelay in submitting the required material, please\ntelephone the Staff Secretary immediately.\nTHE WHITE HOUSE\nWASHINGTON\nSeptember 30, 1975\nMEMORANDUM FOR:\nJIM CAVANAUGH\nFROM:\nMAX L. FRIEDERSDORF m.b.\nSUBJECT:\nH.R. 1401 - For the Relief of Robert M. Johnston\nThe Office of Legislative Affairs concurs with the agencies\nthat the\nsubject bill be signed.\nAttachments\nCalendar No. 377\n94TH CONGRESS\nSENATE\nREPORT\n1st Session\nNo. 94-384\nROBERT M. JOHNSTON\nSEPTEMBER 18 (legislative day, SEPTEMBER 12), 1975.-Ordered to be printed\nMr. EASTLAND, from the Committee on the Judiciary,\nsubmitted the following\nREPORT\n[To accompany H.R. 1401]\nThe Committee on the Judiciary, to which was referred the bill\n(H.R. 1401), for the relief of Robert M. Johnston, having considered\nthe same, reports favorably thereon without amendment and recom-\nmends that the bill do pass.\nPURPOSE\nThe purpose of the proposed legislation is to include service per-\nformed by Mr. Robert M. Johnston as a civilian faculty member at\nthe U.S. Naval Academy from July 1, 1946, through September 30,\n1956, as creditable service for Civil Service Retirement (CSR) provid-\ning Mr. Johnston makes the appropriate deposit in the Civil Service\nRetirement and Disability Fund within one year after the bill's\nenactment.\nSTATEMENT\nIn reporting on an identical bill which Senator Mathias sponsored\nin the 93d Congress, the Department of the Navy set out the facts of\nthis case as follows:\nPublic Law 74-417 (approved on January 16, 1936) estab-\nlished the retirement system in effect for civilian members of\nthe faculty at the U.S. Naval Academy when Mr. Johnston\njoined that faculty in 1946. Each such civilian faculty mem-\nber participating in that retirement program was required\nto carry a deferred annuity policy which could not include a\n57-010\n3\n2\ncash surrender or loan provision. Such faculty member paid\ningly, recommends that H.R. 1401 be favorably considered.\nCommittee believes that this legislation is meritorious, and accord-\nthe premium for the annuity policy through a monthly allot-\nment in an amount equal to ten percent of his monthly basic\nsalary. For each month the allotment was in force, the pay\non legislation in the 93d Congress.\nAttached this to and made a part of this report are the agency reports\naccount of such faculty member was credited with an addi-\nDEPARTMENT OF THE NAVY,\ntional amount equal to five percent of his monthly basic salary.\nOFFICE OF LEGISLATIVE AFFAIRS,\n(See Chapter 607 of title 10, United States Code, and the an-\nnotations thereto.)\nHon. JAMES O. EASTLAND,\nWashington, D.C., September 25, 1974.\nPursuant to section 402 of Public Law 84-854 (approved\nChairman, Committee on the Judiciary,\non July 31, 1956), contributions under the retirement system of\nU.S. Senate,\nestablished by Public Law 74-417 were discontinued as\nWashington, D.C.\nSeptember 30, 1956. Although Public Law 84-854 did not did\naffect the rights of retired civilian faculty members, it\nDEAR MR. CHAIRMAN: Reference is made to your letter to the Sec-\nrequire then current civilian faculty members to elect either\nretary of the Navy requesting comment on S. 2298, a bill \"For the\nrelief of Robert M. Johnston.\"\n(1) to retain their vested rights under the retirement system\nS. 2298 would include service performed by Mr. Johnston as\ncreated by Public Law 74-417 and commence participation\nin the civil service retirement program or (2) to transfer to\nthe civil service retirement program with full credit for the\n1946, of the through September 30, 1956, as creditable service for purposes 1,\nber of the civilian faculty of the U.S. Naval Academy from a July mem-\ncivil service retirement system.\nyears of service and the contributions made under the system\ncreated by Public Law 74-417.\nFrom the information available to the Department of the\nEach Naval Academy when Mr. Johnston joined that faculty in 1946.\nU.S. retirement system in effect for civilian members of the faculty at the\nPublic Law 74-417 (approved on January 16, 1936) established the\nto surrender his rights under the system created by Public\nNavy, it appears that Mr. Johnston attempted in 1956 to elect\nsuch civilian faculty member participation in that retirement\nLaw 74-417 in return for credit in the civil service retirement\nment paid the in premium for the annuity policy through a monthly allot-\nnot include a cash surrender or loan provision. Such faculty member\nprogram was required to carry a deferred annuity policy which could\nBecause Mr. Johnston was unable to locate his policy\nsystem. with the association (Teachers Insurance and Annuity to\nAssociation of America) providing coverage pursuant\nFor an amount equal to ten percent of his monthly basic salary.\n\"Affidavit of Loss of Policy Contract\" which required the\nPublic Law 74-417, it was necessary for him to complete an\nfaculty member was credited with an additional amount equal to five\neach month the allotment was in force, the pay account of such\nsignatures of all of his children over 14 years of age. Unfor-\npercent United of his monthly basic salary. (See Chapter 607 of title 10,\nStates Code, and the annotations thereto.)\ntunately, one of Professor Johnston's sons, an active duty the\nenlisted member of the Marine Corps at the time, signed Mr.\nLaw 1956), contributions under the retirement system established by Public 31,\nPursuant to section 402 of Public Law 84-854 (approved on July\naffidavit but failed to have his signature witnessed.\nJohnston's attempt to obtain his son's witnessed signature election\nPublic 74-417 were discontinued as of September 30, 1956. Although\nprior required by section 402 of Public Law 84-854 proved\nto the April 1, 1959, deadline for making the futile.\nmembers, it did require then current civilian faculty members to elect\nLaw 84-854 did not affect the rights of retired civilian faculty\nMr. Johnston's efforts to secure the necessary witnessed signa-\ncreated by Public Law 74-417 and commence participation in the civil\neither (1) to retain their vested rights under the retirement system\nture were complicated by the fact that, during transferred the period\nservice retirement program or (2) to transfer to the civil service re-\ndesignated for making the election, his son was unable\ntirement program with full credit for the years of service and the con-\nduty. Professor Johnston has indicated that he is elec-\ntributions made under the system created by Public Law 74-417.\nto to sea recall that anyone advised him of the passing of the\ntion cutoff date in 1957 when he could have made a more\nFrom the information available to the Department of the Navy, it\nappears that Mr. Johnston attempted in 1956 to elect to surrender his\ntimely appeal. He has indicated further that he was unaware from\nrights under the system created by Public Law 74-417 in return for\nuntil May 1972 of his ineligibility for transfer of credit\ncredit in the civil service retirement system. Because Mr. Johnston was\nTIAA to the civil service retirement system.\nThe principal effect of enactment of S. 2298 would which be he to\nunable to locate his policy with the association (Teachers Insurance\npermit Mr. Johnston presently to make the election\nand Annuity Association of America) providing coverage pursuant\nto Public Law 74-417, it was necessary for him to complete an \"Affi-\ndid not make 18 years ago.\nThe Department of the Navy supports enactment of S.\ndavit of Loss of Policy Contract\" which required the signatures of\nall of his children over 14 years of age. Unfortunately, one of Pro-\n2298. an identical bill, S. 2298, passed the Senate in the The 93d\nfessor Johnston's sons, an active duty enlisted member of the Marine\nCorps at the time, signed the affidavit but failed to have his signature\nCongress, Although no action was taken in the House of Representatives.\nS.R. 384\nS.R. 384\n4\n5\nwitnessed. Mr. Johnston's attempt to obtain his son's witnessed signa-\nelection, for all subsequent service participation in the CSR system\nture prior to the April 1, 1959, deadline for making the election re-\nwas required. Apparently, Mr. Johnston was the only active faculty\nquired by section 402 of Public Law 84-854 proved futile. Mr. John-\nmember in 1956 who did not take the necessary steps to surrender his\nston's efforts to secure the necessary witnessed signature were compli-\nvested rights under the TIAA program in exchange for CSR credit.\ncated by the fact that, during the period designated for making the\nIf S. 2298 is enacted and Mr. Johnston is permitted to exchange his\nelection, his son was transferred to sea duty. Professor Johnston has\ncredit under the TIAA system (for the period July 1, 1946 through\nindicated that he is unable to recall that anyone advised him of the\nSeptember 30, 1956) for credit under the CSR system, we calculate\npassing of the election cutoff date in 1957 when he could have made\nhis annuity, based on an assumed retirement date of October 1, 1974,\na more timely appeal. He has indicated further that he was unaware\nwould be $1231 per month. If S. 2298 is not enacted and Mr. Johnston\nuntil May 1972 of his ineligibility for transfer of credit from TIAA to\ncannot receive CSR credit for that period, his annuity would be $839\nthe civil service retirement system.\nper month under CSR (effective October 1, 1974) plus $100 per month\nThe principal effect of enactment of S. 2298 would be to permit\nfrom TIAA which would not be effective until age 65 (July 24, 1976).\nMr. Johnston presently to make the election which he did not make\nEnactment of a private bill to give Mr. Johnston a second election\n18 years ago.\nafter his original election which, with the passage of time, turned out\nThe Department of the Navy supports enactment of S. 2298.\nto be to his disadvantage, could generate similar demands from other\nThe Office of Management and Budget advises that, from the stand-\nindividuals for an opportunity to revoke or revise a previous irrevoca-\npoint of the Administration's program, there is no objection to the\nble election which, for various reasons, ultimately proved to be not to\npresentation of this report for the consideration of the Committee.\ntheir advantage.\nFor the Secretary of the Navy.\nFor example, individuals who elect not to participate in the Federal\nSincerely yours,\nEmployees Health Benefits Program during periods of good health\nE. H. WILLETT,\nare not permitted to change that election immediately upon the onset\nCaptain, U.S. Navy, Deputy Chief.\nof illness or injury. Similarly, retirees who decline life insurance\ncoverage during their active service are not permitted to elect to begin\nsuch coverage after retirement. Enactment of S. 2298 would lend\nU.S. CIVIL SERVICE COMMISSION,\nsupport to the efforts of people such as those cited in the examples to\nWashington, D.C., September 20, 1974.\nobtain another opportunity to acquire such benefits and would tend\nHon. JAMES O. EASTLAND,\nto put Federal benefit programs in the position of indemnifying eni-\nChairman, Committee on the Judiciary,\nployees against imprudent elections.\nU.S. Senate, Washington, D.C.\nFor these reasons, the Commission objects to the enactment of S.\nDEAR MR. CHAIRMAN This is in further reply to your request for\n2298.\nthe Commission's views on S. 2298, a bill \"For the relief of Robert M.\nThe Office of Management and Budget advises that, from the stand-\nJohnston.\"\npoint of the Administration's program, there is no objection to the\nS. 2298 would include service performed by Mr. Johnston as a\nsubmission of this report.\ncivilian faculty member at the U.S. Naval Academy from July 1, 1946,\nBy direction of the Commission:\nthrough September 30, 1956, as creditable service for Civil Service\nSincerely yours,\nRetirement (CSR) providing Mr. Johnston makes the appropriate\nROBERT HAMPTON, Chairman.\ndeposit in the Civil Service Retirement and Disability Fund within\none year after the bill's enactment.\nOriginally, a retirement system was established for civilian members\nof the faculty of the U.S. Naval Academy by Public Law 74-417 (ap-\nproved on January 16, 1936). Each participating member was re-\nquired to purchase from the Teachers Insurance and Annuity Associa-\ntion a deferred annuity policy which could not include any provision\nfor loan or cash surrender. Premiums were paid through a monthly\nallotment in an amount equaling ten percent of monthly basic salary.\nThe Government shared the cost by adding five percent to the monthly\nbasic salary of participants.\nThen, in 1956, civilian faculty members were required by section 402\nof Public Law 84-854 (approved on July 31, 1956) to elect either to\nretain their vested rights under the TIAA program acquired by past\nservice or to transfer credit and contributions for that past service to\nthe Civil Service Retirement and Disability Fund. Irrespective of the\nS.R. 384\nS.R. 384\n94TH CONGRESS\nHOUSE OF REPRESENTATIVES\nREPORT\n1st Session\nNo. 94-82\nROBERT M. JOHNSTON\nMARCH 19, 1975.-Committed to the Committee of the Whole House and\nordered to be printed\nMr. FLOWERS, from the Committee on the Judiciary,\nsubmitted the following\nREPORT\n[To accompany H.R. 1401]\nThe Committee on the Judiciary, to whom was referred the bill\n(H.R. 1401) for the relief of Robert M. Johnston, having considered\nthe same, report favorably thereon without amendment and recom-\nmend that the bill do pass.\nPURPOSE\nThe purpose of the proposed legislation is to authorize the inclusion\nof service performed by Mr. Johnston as a member of the civilian fac-\nulty of the U.S. Naval Academy from July 1, 1946, through Septem-\nber 30, 1956, as creditable service for purposes of the civil service\nretirement system.\nSTATEMENT\nThe Department of the Navy in its report on the 93d Congress bill\nstated that it supported enactment of the bill.\nAs is outlined in the Navy Department report, Public Law 74-417\n(approved on January 16, 1936) established the retirement system in\neffect for civilian members of the faculty at the U.S. Naval Academy\nwhen Mr. Johnston joined that faculty in 1946. Each civilian faculty\nmember participating in that retirement program was required to\ncarry a deferred annuity policy which could not include cash surrender\nor loan provision. The faculty member paid the premium for the an-\nnuity policy through a monthly allotment in an amount equal to ten\npercent of his monthly basic salary. For each month the allotment was\nin force, the pay account of the faculty member was credited with an\nadditional amount equal to five percent of his monthly basic salary.¹\nUnder section 402 of P.L. 84-854 (approved on July 31, 1956), con-\ntributions under the retirement system established by P.L. 74-417 were\ndiscontinued as of September 30, 1956. Although P.L. 84-854 did not\n1 See Chapter 607 of Title 10, United States Code, and the annotations thereto.\n38 007\n2\n3\naffect the rights of retired civilian faculty members, it did require then\nnot include a cash surrender or loan provision. Such faculty member\ncurrent civilian faculty members to elect either (1) to retain their\npaid the premium for the annuity policy through a monthly allot-\nvested rights under the retirement system created by P.L. 74-417 and\nment in an amount equal to ten percent of his monthly basic salary.\ncommence participation in the civil service retirement program or (2)\nFor each month the allotment was in force, the pay account of such\nto transfer to the civil service retirement program with full credit for\nfaculty member was credited with an additional amount equal to five\nthe years of service and the contributions made under the system\npercent of his monthly basic salary. (See Chapter 607 of title 10,\ncreated by P.L. 74-417.\nUnited States Code, and the annotations thereto.)\nThe Navy states that information it has obtained indicates that Mr.\nPursuant to section 402 of P.L. 84-854 (approved on July 31, 1956),\nJohnston attempted in 1956 to elect to surrender his rights under the\ncontributions under the retirement system established by P.L. 74-417\nsystem created by P.L. 74-417 in return for credit in: the civil service\nwere discontinued as of September 30, 1956. Although P.L. 84-854 did\nretirement system. Mr. Johnston was unable to locate his policy with\nnot affect the rights of retired civilian faculty members, it did require\nthe association (Teachers Insurance and Annuity Association of\nthen current civilian faculty members to elect either (1) to retain\nAmerica) providing coverage pursuant to P.L. 74-417, SO it was neces-\ntheir vested rights under the retirement system created by P.L. 74-417\nsary for him to complete an \"Affidavit of Loss of Policy Contract\"\nand commerce participation in the civil service retirement program or\nwhich required the signatures of all of his children over 14 years of\n(2) to transfer to the civil service retirement program with full credit\nage.\nfor the years of service and the contributions made under the system\nUnfortunately, one of Professor Johnston's sons, an active duty\ncreated by P.L. 74-417.\nenlisted member of the Marine Corps at the time, signed the affidavit\nFrom the information available to the Department of the Navy, it\nbut failed to have his signature witnessed! Mr. Johnston's attempt to\nappears that Mr. Johnston attempted in 1956 to elect to surrender his\nobtain his son's witnessed signature prior to the April 1, 1957, deadline\nrights under the system created by P.L. 74-417 in return for credit in\nfor making the election required by section 402 of P.L. 84-854 proved\nthe civil service retirement system. Because Mr. Johnston was unable\nfutile. Mr. Johnston's efforts to secure the necessary witnessed signa-\nto locate his policy with the association (Teachers Insurance and\nture were complicated by the fact that, during the period designated\nAnnuity Association of America) providing coverage pursuant to P.L.\nfor making the election, his son was transferred to sea daty. Professor\n74-417, it was necessary for him to complete an \"Affidavit of Loss of\nJohnston has indicated that he is unable to recall that anyone advised\nPolicy Contract\" which required the signatures of all of his children\nhim of the passing of the election cutoff date in 1957 when he could\nover 14 years of age. Unfortunately, one of Professor Johnston's sons,\nhave made a more timely appeal. He has indicated further that he was\nan active duty enlisted member of the Marine Corps at the time, signed\nunaware until May 1972 of his ineligibility for transfer of credit from\nthe affidavit but failed to have his signature witnessed. Mr. Johnston's\nTIAA to the civil service retirement system.\nattempt to obtain his son's witnessed signature prior to the April 1,\nThe Navy Department report summarizes the effect of the bill by\n1957, deadline for making the election required by section 402 of P.L.\nstating: \"The principal effect of enactment of H.R. 12186 would be\n84-854 proved futile. Mr. Johnston's efforts to secure the necessary\nto perinit Mr. Johnston presently to make the election which he did not\nwitnessed signature were complicated by the fact that, during the\nmake 18 years ago.\"\nperiod designated for making the election, his son was transferred to\nIt is recommended that the bill be considered favorably.\nsea duty. Professor Johnston has indicated that he is unable to recall\nDEPARTMENT OF THE NAVY,\nthat anyone advised him of the passing of the election cutoff date in\nOFFICE OF LEGISLATIVE Affairs,\n1957 when he could have made a more timely appeal. He has indicated\nWashington, D.C., September 25, 1974.\nfurther that he was unaware until May 1972 of his ineligibility for\nHon. PETER W. RODINO, Jr.,\ntransfer of credit from TIAA to the civil service retirement system.\nChairman, Committee on the Judiciary, House of Representatives,\nThe principal effect of enactment of H.R. 12186 would be to permit\nWashington, D.C.\nMr. Johnston presently to make the election which he did not make\nDEAR MR. CHAIRMAN Reference is made to your letter to the Secre-\n18 years ago.\ntary of the Navy requesting comment on H.R. 12186, a bill \"For the\nThe Department of the Navy supports enactment of H.R. 12186.\nThe Office of Management and Budget advises that, from the stand-\nrelief of Robert M. Johnston.\"\nH.R. 12186 would include service performed by Mr. Johnston as a\npoint of the Administration's program, there is no objection to the\nmember of the civilian faculty of the U.S. Naval Academy from July 1,\npresentation of this report for the consideration of the Committee.\n1946, through September 30, 1956, as creditable service for purposes of\nFor the Secretary of the Navy.\nSincerely yours,\nthe civil service retirement system!\nE. H. WILLETT,\nPublic Law 74-417 (approved on January 16, 1936) established the\nretirement system in effect for civilian members of the faculty at the\nCaptain, U.S. Navy,\nU.S. Naval Academy when Mr. Johnston joined that faculty in 1946.\nDeputy Chief.\nEach such civilian faculty member participating in that retirement\nprogram was required to carry a deferred annuity policy which could\nH.R. 82\nH.R. 82\nH. R. 1401\nAinety-fourth Congress of the United States of America\nAT THE FIRST SESSION\nBegun and held at the City of Washington on Tuesday, the fourteenth day of January,\none thousand nine hundred and seventy-five\nAn Act\nFor the relief of Robert M. Johnston.\nBe it enacted by the Senate and House of Representatives of the\nUnited States of America in Congress assembled, That service per-\nformed by Robert M. Johnston, of Annapolis, Maryland, from July 1,\n1946, through September 30, 1956, as a member of the civilian faculty\nof the United States Naval Academy, shall be included as creditable\nservice for purposes of subchapter III of chapter 83 of title 5, United\nStates Code (relating to civil service retirement annuities), if, within\none year after the date of enactment of this Act, Robert M. Johnston\ndeposits a sum equal to SO much of the repurchase price of his annuity\npolicy carried as required by the Act of January 16, 1936 (49 Stat.\n1092), as amended, as is based on the monthly allotments which were\nregistered with the Navy Allotment Office toward the purchase of\nthat annuity. Such deposit shall be in lieu of the deposit provided under\nsection 8334(c) of such title 5.\nSEC. 2. The Secretary of the Navy shall certify to the Civil\nService Commission the amount of the repurchase price of the annuity\nreferred to in the first section of this Act. The Civil Service Commis-\nsion shall provide Robert M. Johnston such information as may be\nnecessary to carry out the purposes of this Act.\nSpeaker of the House of Representatives.\nVice President of the United States and\nPresident of the Senate.\nSeptember 23, 1975\nDear Mr. Director:\nThe following bills were received at the White\nHouse on September 23rd:\nH.R. 543\nH.R. 1401\nPlease let the President have reports and\nrecommendations as to the approval of these\nbills as soon as possible.\nSincerely,\nRobert D. Linder\nChief Executive Clerk\nThe Honorable James T. Lynn\nDirector\nOffice of Management and Budget\nWashington, D. C."
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