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    "label": "1975/12/23 HR6851 Annuity Increase for Former Lighthouse Service Employees",
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    "title": "1975/12/23 HR6851 Annuity Increase for Former Lighthouse Service Employees",
    "citationUrl": "https://catalog.archives.gov/id/1669176",
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    "ocrText": "The original documents are located in Box 35, folder \"12/23/75 HR6851 Annuity Increase\nfor Former Lighthouse Service Employees\" of the White House Records Office: Legislation\nCase Files at the Gerald R. Ford Presidential 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 Gerald R. Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain.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.\nDigitized from Box 35 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library\nAPPROVED DEC 23 1975\nACTION\nTHE WHITE HOUSE\nWASHINGTON\nLast Day: December 29\nDecember 22, 1975\nPosted in\nColorado 12/23\nMEMORANDUM FOR\nTHE PRESIDENT\n5/2/24 archives FROM:\nJIM CANNON\nSUBJECT:\nEnrolled Bill H.R. 6851 - Annuity Increase\nfor Former Lighthouse Service Employees\nAttached for your consideration is H.R. 6851, sponsored by\nRepresentative Oberstar, which would grant 285 civilian\nretirees of the former Lighthouse Service an annual annuity\nincrease of $270, starting in calendar year 1976.\nAdditional discussion of the enrolled bill is provided in\nOMB's enrolled bill report at Tab A.\nOMB, Max Friedersdorf, Counsel's Office (Lazarus) and I\nrecommend approval of the enrolled bill.\nRECOMMENDATION\nThat you sign H.R. 6851 at Tab B.\nFORD is LIBRARY DERALD\nA\nPRESIDENT\nEXECUTIVE OFFICE OF THE PRESIDENT\nUNITED\nOFFICE OF MANAGEMENT AND BUDGET\nSTATES\nWASHINGTON, D.C. 20503\nDEC 2 2 1975\nMEMORANDUM FOR THE PRESIDENT\nSubject: Enrolled Bill H.R. 6851 - Annuity increase for\nformer Lighthouse Service employees\nSponsor - Rep. Oberstar (D) Minnesota\nLast Day for Action\nDecember 29, 1975 - Monday\nPurpose\nIncreases annuities of retired civilian Lighthouse Service\nemployees by $270 a year, effective January 1, 1976.\nAgency Recommendations\nOffice of Management and Budget\nApproval\nDepartment of Transportation\nApproval\nCivil Service Commission\nDoes not recommend\nveto\nDiscussion\nThe enrolled bill would grant 285 civilian retirees of the\nformer Lighthouse Service an annual annuity increase of $270,\nstarting in calendar year 1976. As explained below, this\nincrease is intended to parallel an annual increase of $240\ngranted to comparable civil service retirees effective August\n1, 1974. The extra $30 reflects the two cost-of-living ad-\njustments of 5.1% and 7.3% granted to civil service retirees\nduring 1975.\nThe Lighthouse Service Retirement Act applies to a small\ngroup of civilian lighthouse keepers who were not converted\nto military status when the former Lighthouse Service was\nmerged with the Coast Guard in 1939. Nearly all eligible\n2\nemployees under this non-contributory system have now retired.\nOnly one or two eligible active employees remain, so that the\nsystem is now essentially a closed one.\nThe benefits under the Lighthouse Service retirement system\nhave generally been conformed to those of the civil service\nretirement system by \"catch-up\" legislation enacted from\ntime to time. A 1972 amendment to the Lighthouse law libera-\nlized the annuity computation formula by permitting those who\nretired after its effective date to compute annuities based\non a \"high-3\" average salary instead of \"high-5.\" This change,\nidentical with the 1969 liberalization for civil service\nretirement, produces a higher annuity. In 1974, the Congress\nprovided a $20 per month ($240 per year) increase for pre-1969\ncivil service retirees to compensate for the lower annuity\nproduced by the less generous formula applicable to them. The\nenrolled bill would provide the same increase for pre-1972\nretirees under the Lighthouse system, adjusted to $22.50 a\nmonth ($270 per year) to reflect cost-of-living increases\nsince 1974.\nThe House Merchant Marine and Fisheries Committee report\nestimates the enrolled bill would cost $38,475 in fiscal year\n1976, and $76,950 for each of the following 5 fiscal years.\nThe Department of Transportation and the Civil Service\nCommission (CSC) supported enactment of a $240 increase in\ntestimony, noting that such an increase would maintain desir-\nable conformity with the civil service retirement system.\nCSC in its views letter on the enrolled bill points out that\nthe increase of $270 instead of $240 would exceed the civil\nservice increase and erode the principle of conformity. CSC\nnotes that the $240 was granted civil service retirees to\ncompensate for specific liberalizations, without reference to\ncost-of-living adjustments. However, the Commission does not\nrecommend veto of the enrolled bill.\nWhile it is true that the enrolled bill's recognition of\ncost-of-living adjustments paid subsequent to enactment of\nthe $240 increase could be a precedent for similar changes\nin other \"catch-up\" legislation, we agree that the provision\nis not so objectionable as to warrant a veto.\nJames Assistant m. Director Frey\nfor\nLegislative Reference\nEnclosures\nOF TRANSPORTATION\nOFFICE OF THE SECRETARY OF TRANSPORTATION\nUNITED STATES OF AMERICA\nWASHINGTON, D.C. 20590\nDEC 19 1975\nHonorable James T. Lynn\nDirector\nOffice of Management and Budget\nWashington, D.C. 20503\nDear Mr. Lynn:\nReference is made to your request for the views of the\nDepartment of Transportation concerning H.R. 6851, an enrolled\nbill\n\"To increase the retired pay of certain\nmembers of the former Lighthouse Service.\"\nH.R. 6851 would increase the annual rate of retired pay of\ncertain members of the former Lighthouse Service, under\nsection 6 of the Act of June 20, 1918, as amended, by $270\nper year.\nThe Department of Transportation administers the laws relating\nto the retired pay of former Lighthouse Service employees;\nand we have proposed legislation similar to H.R. 6851 to\namend the Act of June 20, 1918, under which former Lighthouse\nService employees are retired. That Act was amended on\nOctober 2, 1972, to permit the annuity computation of a\nretiree on or after that date to be based on the average\nannual pay received for the last three, rather than the last\nfive, years of service. This change followed a similar\namendment in 1969 to the Civil Service Retirement System.\nIn 1974, Public Law 93-273 authorized an increase of $20 per\nmonth for Civil Service employees who retired prior to\nOctober 20, 1969, the date the Civil Service Retirement\nSystem was amended to include the three vice five year\naveraging provision. H.R. 6851 extends to former Lighthouse\nService employees who retired prior to October 2, 1972, the\nsame benefits already provided Civil service retirees.\nAlthough our original proposal recommended an annual increase\nof $240, the enrolled bill would increase that amount to\n$270 in recognition of the 12.4 per cent automatic cost-of-\nliving increases which Civil Service retirees received\nduring 1975.\nWe recommend that the President sign the enrolled bill.\nSincerely,\nGeneral Counsel\nUNITED\nSTATE COMMISSION\nUNITED STATES CIVIL SERVICE COMMISSION\nWASHINGTON, D.C. 20415\nCHAIRMAN\nDecember 19, 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\nenrolled bill, H.R. 6851, \"To increase the retired pay of certain\nnumbers of the former Lighthouse Service.\"\nH.R. 6851 would amend the Lighthouse Service Retirement Act (33 U.S.C.\n763) which is applicable to civilian employees of the former Lighthouse\nService. Specifically, the bill would authorize a $270 per year ($22.50\nper month) increase in the retired pay of former Lighthouse Service civil-\nian personnel who retired on or before October 1, 1972. From on and after\nOctober 2, 1972, annuities of Lighthouse Service personnel have been com-\nputed on the basis of \"high-3\" rather than \"high-5\" years average salary.\nThis increase is similar to that granted Civil Service retirees by\nP.L. 93-273, enacted April 26, 1974 except that the $270 includes the\n5.1% and the 7.3% cost-of-living annuity increases granted civil service\nannuitants since August 1, 1974, the effective date of the increase under\nP.L. 93-273.\nThe Commission views conformity among Federal retirement systems as a\ndesirable feature whenever possible. Civil service retirees were granted\nthe $240 increase to compensate for two specific liberalizations for fu-\nture retirees without reference to cost-of-living adjustments. The $270\nproposed for Lighthouse retirees would exceed the civil service increase\nand erode the principle of conformity. The Lighthouse Service Retirement\nAct, however, is administered by the U.S. Coast Guard, Department of\nTransportation and enactment of H.R. 6851 would not affect any of the\nprograms administered by the Commission.\n2\nAccordingly, the Commission does not recommend that the President veto\nenrolled bill, H.R. 6851.\nBy direction of the Commission:\nSincerely\nRobert Hongdon\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nWASHINGTON, D.C. 20503\nDEC 2 2 1975\nMEMORANDUM FOR THE PRESIDENT\nSubject: Enrolled Bill H.R. 6851 - Annuity increase for\nformer Lighthouse Service employees\nSponsor - Rep. Oberstar (D) Minnesota\nLast Day for Action\nDecember 29, 1975 - Monday\nPurpose\nIncreases annuities of retired civilian Lighthouse Service\nemployees by $270 a year, effective January 1, 1976.\nAgency Recommendations\nOffice of Management and Budget\nApproval\nDepartment of Transportation\nApproval\nCivil Service Commission\nDoes not recommend\nveto\nDiscussion\nThe enrolled bill would grant 285 civilian retirees of the\nformer Lighthouse Service an annual annuity increase of $270,\nstarting in calendar year 1976. As explained below, this\nincrease is intended to parallel an annual increase of $240\ngranted to comparable civil service retirees effective August\n1, 1974. The extra $30 reflects the two cost-of-living ad-\njustments of 5.1% and 7.3% granted to civil service retirees\nduring 1975.\nThe Lighthouse Service Retirement Act applies to a small\ngroup of civilian lighthouse keepers who were not converted\nto military status when the former Lighthouse Service was\nmerged with the Coast Guard in 1939. Nearly all eligible\nAttached document was not scanned because it is duplicated elsewhere in the document\n94TH CONGRESS\nHOUSE OF REPRESENTATIVES\nREPORT\n1st Session\nNo. 94-663\nLIGHTHOUSE SERVICE RETIRED PAY\nNOVEMBER 13, 1975.-Committed to the Committee of the Whole House on the\nState of the Union and ordered to be printed\nMrs. SULLIVAN, from the Committee on Merchant Marine and\nFisheries, submitted the following\nREPORT\n[To accompany H.R. 6851]\nThe Committee on Merchant Marine and Fisheries, to whom was\nreferred the bill (H.R. 6851) to increase the retired pay of certain\nmembers of the former Lighthouse Service, having considered the\nsame, report favorably thereon with an amendment and recommend\nthat the bill as amended do pass.\nThe amendment is as follows:\nIn line 8, strike \"240.\", and insert in lieu thereof \"270.\".\nBACKGROUND\nThe former United States Lighthouse Service, which functioned in\nthe Department of Commerce until 1939, was consolidated with the\nCoast Guard effective July 1, 1939, and at that time, provisions were\nmade for the gradual replacement of the civilian personnel in the\nLighthouse Service by Coast Guard military personnel.\nThe officers and employees of the Lighthouse Service who retained\ntheir civilian status in the Coast Guard after the consolidation, con-\ntinued to be governed by the provisions of the basic Lighthouse Serv-\nice Retirement Act, first passed in 1918, and amended several times\nsince then. Basically that Act, as amended, provides for retirement\nbenefits similar to the retirement benefits of Civil Service employees.\nThe most recent amendment of the Lighthouse Service Retirement Act\nprovided for computing a retiree's annuity on the basis of his average\nannual pay for his last three, rather than his last five, years of service.\nThis change, enacted in 1972, followed a similar change to the Civil\nService Retirement System, enacted in 1969. It applied only to those\nwho retired on or after October 2, 1972, the date of enactment. Subse-\nquently, in 1974, Public Law 93-273 authorized an increase of $20 per\nmonth for former Civil Service personnel who retired prior to Octo-\nber 20, 1969, the date the Civil Service Retirement System was\n57-006\n2\n3\namended to include the three year, in lieu of the five year, averaging\nBudget Office, pursuant to Section 403 of the Congressional Budget\nprovision. H.R. 6851 would provide for the same $20 per month in-\nAct of 1974; and\ncrease for those former Lighthouse Service personnel who retired\n(D) The Committee has received no report from the Committee on\nprior to October 2, 1972, thus extending to those retirees the same\nGovernment Operations as to oversight findings and recommendations\nbenefit provided in 1972 for Civil Service retirees.\narrived at pursuant to Clause 2(b) (2) of rule X.\nCOMMITTEE ACTION\nINFLATIONARY IMPACT STATEMENT\nHearings were held before the Subcommittee on June 26, 1975, and\nPursuant to clause 2(1) (4) of rule XI of the Rules of the House\ntestimony was received from Mr. Oberstar, author of the bill, from\nof Representatives, the Committee has determined that the legisla-\nThomas A. Tinsley, Director, Bureau of Retirement, Insurance and\ntion includes no potential for inflationary impact.\nOccupational Health U.S. Civil Service Commission, and from Rear\nAdmiral Robert W. Durfey, Chief, Office of Personnel, U.S. Coast\nCHANGES IN EXISTING LAW\nGuard, accompanied by Lt. Michael C. Grace, Office of the Chief\nCounsel, U.S. Coast Guard. The testimony of all three witnesses was in\nIf enacted, this bill would make no changes in existing law.\nsupport of the bill.\nDuring the course of his testimony on the bill, the sponsor recom-\nDEPARTMENTAL REPORTS\nmended an amendment, based upon the fact that, since the amendment\nto the Civil Service Retirement benefits in 1974 (which provided the\nH.R. 6851 was the subject of reports from the Civil Service Com-\ncomparable increase for Civil Service retirees now proposed in H.R.\nmission and the Department of the Treasury. These reports follow\n6851 for Lighthouse Service retirees), there have been two cost-of-\nherewith:\nliving increases, the first of 7.3 percent, and the second of 5.1 percent.\nU.S. CIVIL SERVICE Commission,\nH.R. 6851 was considered by the Subcommittee in markup session on\nWashington, D.C., June 26, 1975.\nSeptember 24, 1975. In accordance with the sponsor's recommendation,\nHon. LEONOR K. (Mrs. John B.) SULLIVAN,\nthe Subcommittee adopted an amendment and unanimously recom-\nChairman, Committee on Merchant Marine and Fisheries, House of\nmended favorable Committee action on the bill, as SO amended. On\nRepresentatives, Washington, D.C.\nOctober 22, 1975, the bill, as amended, was ordered reported by the\nDEAR MRS. SULLIVAN: This is in further reply to your request for the\nFull Committee, by unanimous voice vote.\nCommission's views on H.R. 6851, a bill \"To increase the retired pay\nof certain members of the former Lighthouse Service.\"\nCOST OF THE LEGISLATION\nH.R. 6851 would amend the Lighthouse Service Retirement Act (33\nU.S.C. 763) which is applicable to civilian employees of the former\nPursuant to clause 7 of rule XIII of the Rules of the House of Rep-\nLighthouse Service. Specifically, the bill would authorize a $20 per\nresentatives, the Committee estimates that the cost of the legislation\nmonth increase in the retired pay of former Lighthouse Service civilian\nwill be $38,475 for fiscal year 1976, and $76,950 for each of the follow-\npersonnel who retired on or before October 1, 1972. From on and after\ning five fiscal years. This estimate is based upon the eligibility of 285\nOctober 2, 1972, annuities of Lighthouse Service personnel have been\nretirees, the number eligible for the increase provided at the time of\ncomputed on the basis of \"high-3\" rather than \"high-5\" years average\nthe hearings. The cost will be gradually reduced as the retirees are\nsalary.\nremoved from the retired roles. The estimate for fiscal year 1976 is\nThe proposed increase is similar to that granted civil service retirees\nbased upon passage of the legislation prior to January 1, 1976.\nby Public Law 93-273, enacted April 26, 1974. The Commission views\nconformity as a desirable feature whenever possible. Additionally,\nCOMPLIANCE WITH CLAUSE 2(1) (3) OF RULE XI\nsince retirement benefits for former Lighthouse Service civilian per-\nWith respect to the requirements of Clause 2(1) (3) of rule XI of\nsonnel are administered by the United States Coast Guard, Depart-\nthe Rules of the House of Representatives-\nment of Transportation, enactment of H.R. 6851 would not affect any\nof the programs administered by the Civil Service Commission. Ac-\n(A) No oversight hearings on this subject have been held;\ncordingly, the Commission has no objection to enactment of H.R. 6851.\n(B) Pursuant to Section 308 of the Congressional Budget Act\nThe Office of Management and Budget advises that from the stand-\nof 1974, the Committee reports that the additional expenditure of\npoint of the Administration's program there is no objection to the sub-\n$38,475 in fiscal year 1976 was contained within the level of Committee\nmission of this report.\nEstimates submitted to the Committee on the Budget on March 14,\nBy direction of the Commission:\n1975;\n(C) No estimate and comparison of costs has been requested or re-\nSincerely yours,\nROBERT HAMPTON,\nceived by the Committee from the Director of the Congressional\nChairman.\nH.R. 663\nH.R. 663\n4\nGENERAL COUNSEL OF THE TREASURY,\nWashington, D.C., June 27, 1975.\nHon. LEONOR K. SULLIVAN,\nChairman, Committee on Merchant Marine and Fisheries, House of\nRepresentatives, Washington, D.C.\nDEAR MADAM CHAIRMAN: Reference is made to your requests for\nthe views of this Department on H.R. 1535, \"To increase the amount\nof benefits payable to widows of certain former employees of the\nLighthouse Service,\" and H.R. 6861, \"To increase the retired pay of\ncertain members of the former Lighthouse Service.\"\nH.R. 1535 would increase the amount of monthly benefits payable\nto widows of certain employees and former employees of the Light-\nhouse Service from $100 per month to $200 per month.\nH.R. 6851 would increase the annual retired pay of certain members\nof the Lighthouse Service by $240.\nThe Department has no comment on the bills.\nThe Department has been advised by the Office of Management and\nBudget that there is no objection from the standpoint of the Adminis-\ntration's program to the submission of this report to your Committee.\nSincerely yours,\nRICHARD R. ALBRECHT,\nGeneral Counsel.\nH.R. 663\nH. R. 6851\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 Art\nTo increase the retired pay of certain members of the former Lighthouse Service.\nBe it enacted by the Senate and House of Representatives of the\nUnited States of America in Congress assembled, That the annual rate\nof retired pay received by a person under section 6 of the Act of\nJune 20, 1918, as amended and supplemented (33 U.S.C. 736-765),\nwho was retired on or before October 1, 1972, shall, effective on the\nfirst day of the calendar month following enactment of this Act, be\nincreased by $270.\nSpeaker of the House of Representatives.\nVice President of the United States and\nPresident of the Senate.\n4\nDecember 17, 1975\nDear Mr. Director:\nThe following bills were received at the White\nHouse on December 17th:\nH.R. 1535\nH.R. 5559\nH.R. 6851\nH.R. 6874\nH.R. 8151\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 Nonorable James T. Lynn\nDirector\nOffice of Management and Budget\nWashington, D. C."
}