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The original documents are located in Box 11, folder "1974/10/26 S628 Civil Service
Survivor Annuities" 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States of America his copyrights in all of his unpublished writings in National Archives collections.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
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copyright claim, please contact the Gerald R. Ford Presidential Library.
Exact duplicates within this folder were not digitized.
Digitized from Box 11 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library
THE WHITE HOUSE
ACTION
WASHINGTON
Last Day - October 29
October 25, 1974
MEMORANDUM FOR:
THE PRESIDENT
FROM:
KEN COLE
SUBJECT:
Enrolled Bill S. 628
Civil Service Survivor
Annuities
Attached for your consideration is Senate bill, S. 628,
sponsored by Senator Moss, which provides that a civil
service retirement annuity which had been reduced to
provide for survivor benefits may be recomputed to allow
full annuity to the retiree during period of non-marriage.
Roy Ash recommends approval and provides you with additional
background information in his enrolled bill report (Tab A).
We have checked with the Counsel's office (Chapman) and
Bill Timmons who both recommend approval.
RECOMMENDATION
That you sign Senate bill, S. 628 (Tab B).
EXECUTIVE OFFICE OF THE PRESIDENT
APPROVED OCT 26 1974
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
OCT 2 2 197
MEMORANDUM FOR THE PRESIDENT
Postal
Subject: Enrolled Bill S. 628 - Civil service survivor
annuities
Sponsor - Sen. Moss (D) Utah, and 5 others
10/28
Tarching
Last Day for Action
To
October 29, 1974 - Tuesday
1/29
Purpose
Provides that a civil service retirement annuity which had
been reduced to provide for survivor benefits may be
recomputed to allow full annuity to the retiree during
periods of non-marriage.
Agency Recommendations
Office of Management and Budget
Approval
Civil Service Commission
Does not
recommend veto
Discussion
Under civil service retirement law, the annuity of a
retiring married Federal employee or Member of Congress
is automatically reduced to provide survivor benefits to
a widow or widower, unless at the time of retirement the
employee elects in writing to receive an unreduced
"single-life" annuity. If the employee or Member takes a
reduced annuity, the designated survivor is entitled to
55 percent of the retiree's annuity upon his death.
The election which the employee makes at the time of
retirement is irrevocable under current law. Accordingly,
a reduction in annuity continues whether or not the
retiree's spouse dies or the marriage is dissolved by
FORD is BERALD LIBRARY
2
divorce. The result is that if the retiree does not sub-
sequently remarry, he continues to get a reduced annuity
to provide a survivor benefit when there is no survivor.
(If he does remarry and the marriage lasts at least one
year immediately before his death, or the spouse is the
parent of a child by marriage to the retiree, this
subsequent spouse qualifies for the survivor benefit.)
S. 628 would provide that if the marriage relationship
upon which the survivor benefit rights were based is
dissolved by the spouse's death or by divorce, the
retiree's reduced annuity would be recomputed to the
full single-life amount during any full months of
non-marriage. This provision would apply to all
annuities, existing and future, but any increase in
payments as a result of recomputation would apply only
prospectively.
The enrolled bill would also provide that upon remarriage
of the retired employee or Member, the annuity would
again be reduced by the same percentage reductions as
were in effect at the time of retirement.
During congressional consideration, the Administration was
opposed to S. 628, citing a lack of sufficient justifica-
tion for restoring full annuity to warrant the accompanying
increase in retirement costs. The Civil Service Commission
pointed out that originally the reduction for survivor
benefits was equal to the full actuarial cost of the
survivor protection, taking into account that there would
be instances where there would be no survivor beneficiary.
However, this reduction has been decreased five times until
now it is a nominal amount and equals only a fraction of
the cost of the survivor protection. The reduction is now
2-1/2 percent of the first $3,600 plus 10 percent of the
remainder.
S. 628 as enrolled would increase the unfunded liability
of the Civil Service Retirement Fund by $137 million,
requiring annual payments by Treasury to the Fund of
$8.5 million over 30 years to amortize the cost. Added
budget outlays for the remainder of fiscal year 1975 are
estimated at $3.9 million. In fiscal year 1976, budget
outlays would be increased by $7.1 million, rising to
$8.6 million in fiscal year 1980.
3
As passed by the House of Representatives, this legislation
contained a number of costly amendments, including the
complete elimination of the reduction in annuity. The
House-passed bill would have increased the unfunded
liability of the Civil Service Retirement Fund by an
estimated $5.85 billion and would have required an estimated
$202 million in added budget outlays during the first year.
The Administration strongly opposed the House amendments,
and they were deleted in conference.
Recommendations
CSC does not recommend a veto, although it reported
adversely on similar legislation in the past. The Commis-
sion states that "The enrolled bill will eliminate a
continuing source of complaints from annuitants whose
spouses have predeceased them and who feel they are paying
a part of their annuity for nothing." CSC also indicates
that the bill will reduce the difficult decision that now
needs to be made by retiring employees on whether to take
a permanent reduction in annuity.
*****
S. 628 would provide the third liberalization within the
past year in the already liberal civil service retirement
system. Moreover, while the cost of this bill in itself
is relatively small, its approval may well lead to enactment
of a similar and more costly liberalization in survivor
benefits provided by the military retirement system, which
are patterned after the civil service system.
On the other hand, we believe the present situation is
inequitable to annuitants who continue to receive a reduced
annuity to provide a survivor benefit when there is, in
fact, no survivor. In addition, the Congress has recognized
the need for fiscal restraint by removing the very costly
House amendments before final passage.
On balance, therefore, we recommend approval of S. 628.
Wilfred H Rommel
Assistant Director for
Legislative Reference
Enclosures
UNITED
STATE
CIVIL SENTE
UNITED STATES CIVIL SERVICE COMMISSION
WASHINGTON, D.C. 20415
CHAIRMAN
October 21, 1974
Honorable Roy L. Ash
Director, Office of Management and Budget
Executive Office of the President
Washington, D. C. 20503
Attention: Assistant Director for
Legislative Reference
Dear Mr. Ash:
This is in reply to your request for the Commission's views on enrolled
bill, S. 628, "To amend chapter 83 of title 5, United States Code, to
eliminate the annuity reduction made, in order to provide a surviving
spouse with an annuity, during periods when the annuitant is not
married.' If
Enrolled bill S. 628 would provide for recomputing existing and future
annuities that have been reduced to provide benefits to a surviving
spouse as if the annuity had not been reduced, and, effective on or after
the date of enactment, pay the recomputed amount during any full months
in which the annuitant is not married. If the retiree remarries, the
annuity would be reduced by the same percentage reductions as were in
effect at the time of his (or her) retirement.
We estimate that if the enrolled bill becomes law, the unfunded liability
of the Civil Service Retirement and Disability Fund would be increased by
$137 million, and the normal cost would be increased by .01% of payroll.
Under the provisions of section 8348(f) of title 5, United States Code,
this amount would be amortized by 30 equal annual installments of approx-
imately $8.5 million each.
We estimate additional outlays from the Civil Service Retirement Fund over
the next five years to be:
Fiscal Year
Outlay
1975
$3,900,000
1976
7,100,000
Transition
1,900,000
1977
7,400,000
1978
7,800,000
1979
8,200,000
1980
8,600,000
2
Although we have reported adversely on similar legislation in the past,
there are several arguments in favor of this enrolled bill.
1. The enrolled bill will reduce the difficult decisions
that need to be made by those retiring employees whose
spouses are likely to predecease them because of their
relatively older age or ill health. They understandably
hesitate to gamble on a permanent reduction in annuity
to provide what might be very temporary protection.
2. The enrolled bill will eliminate a continuing source of
complaints from annuitants whose spouses have predeceased
them and who feel they are paying a part of their annuity
for nothing.
3.
The enrolled bill has strong Congressional support. In
fact, the House, on a much more liberal (and costly) bill
which would have eliminated the reduction altogether,
voted 296 for, 102 against, enactment.
4.
Compared to the House-passed bill, the cost of the enrolled
bill is small, $8.5 million a year versus $358 million a
year.
Accordingly, while we did not support the enrolled bill, we do not recom-
ment that it be vetoed by the President.
By direction of the Commission:
Sincerely yours,
Robert Chairman Hampton
ACTION
Last Day - October 29
DRANDUM FOR:
THE PRESIDENT
FROM
KEN COLE
SUBJECT:
Enrolled Bill S. 628
Civil Service Survivor
Annuities
Attached for your consideration is Senate bill, S. 628,
sponsored by Senator Moss, which provides that a civil
service retirement annuity which had been reduced to
provide for survivor benefits may be recomputed to allow
full annuity to the retiree during period of non-marriage.
Roy Ash recommends approval and provides you with additional
background information in his enrolled bill report (Tab A).
We have checked with the Counsel's office (Chapman) and
Bill Timmons who both recommend approval.
RECOMMENDATION
That you sign Senate bill, S. 628 (Tab B).
ACTION
Last Day - October 29
MEMORANDUM FOR:
THE PRESIDENT
FROM:
KEN COLE
SUBJECT:
Enrolled Bill S. 628
Civil Service Survivor
Annuities
Attached for your consideration is Senate bill, S. 628,
sponsored by Senator Moss, which provides that a civil
service retirement annuity which had been reduced to
provide for survivor benefits may be recomputed to allow
full annuity to the retiree during period of non-marriage.
Roy Ash recommends approval and provides you with additional
background information in his enrolled bill report (Tab A).
We have checked with the Counsel's office (Chapman) and
Bill Timmons who both recommend approval.
RECOMMENDATION
That you sign Senate bill, S. 628 (Tab B).
ACTION
Last Day - October 29
MEMORANDUM FOR:
THE PRESIDENT
FROM:
KEN COLE
SUBJECT:
Enrolled Bill 8. 628
Civil Service Survivor
Annuities
Attached for your consideration is Senate bill, 8. 628,
sponsored by Senator Noss, which provides that a civil
service retirement annuity which had been reduced to
provide for surviver benefits may be recomputed to allow
full annuity to the retires during period of non-marriage.
Boy Ash recommends approval and provides you with additional
background information in his enrolled bill report (Tab A).
We have checked with the Counsel's office (Chapman) and
Bill Timmons who both recommend approval.
RECOMMENDATION
That you sign Senate bill, S. 628 (Tab B).
THE WHITE HOUSE
WASHINGTON
October 23, 1974
MEMORANDUM FOR: MR. WARREN HENDRIKS
FROM:
WILLIAM E. TIMMONS
pd
SUBJECT:
Action Memorandum - - Log No. 688
Enrolled Bill S. 628 - Civil Service Survivor
Annuities
The Office of Legislative Affairs concurs in the attached
proposal and has no additional recommendations.
Attachment
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 688
Date:
October 22, 1974
Time:
6:30 p.m.
FOR ACTION:
Geoff Shepard
CC (for information):
Warren K. Hendriks
Phil Buchen
Jerry Jones
Bill Timmons
Paul Theis
FROM THE STAFF SECRETARY
DUE: Date:
Friday, October 25, 1974 Time: 2:00 p.m.
SUBJECT:
Enrolled Bill S. 628 - Civil service survivor
annuities
ACTION REQUESTED:
For Necessary Action
XX
For Your Recommendations
Prepare Agenda and Brief
Droft Reply
For Your Comments
Draft Remarks
REMARKS:
Please return to Kathy Tindle - West Wing
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required malerial, please
Warren K. Hendriks
ielephone the Staff Secretary immediately.
For the President
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 688
Date:
October 22 1974
Time:
6:30 p.m.
FOR ACTION:
Geoff Shepard
CC (for information):
Warren K. Hendriks
Phil Buchen
Jerry Jones
Bill Timmons
Paul Theis
FROM THE STAFF SECRETARY
DUE: Date:
Friday, October 25, 1974 Time: 2:00 p.m.
SUBJECT:
Enrolled Bill S. 628 - Civil service survivor
annuities
ACTION REQUESTED:
For Necessary Action
XX
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
For Your Comments
Draft Remarks
REMARKS:
Please return to Kathy Tindle - West Wing
No objection
D.C.
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
Warren K. Hendriks
telephone the Staff Secretary immediately.
For the President
recd 10/23
THE WHITE HOUSE
-
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 688
Date:
October 22, 1974
Time:
6:30 p.m.
FOR ACTION: Geoff Shepard
CC (for information): Warren K. Hendriks
Phil Buchen
Jerry Jones
Bill Timmons
Paul Theis
FROM THE STAFF SECRETARY
DUE: Date:
Friday, October 25, 1974 Time: 2:00 p.m.
SUBJECT:
Enrolled Bill S. 628 Civil service survivor
annuities
ACTION REQUESTED:
For Necessary Action
XX For Your Recommendations
Prepare Agenda and Brief
Draft Reply
For Your Comments
Draft Remarks
REMARKS:
Please return to Kathy Tindle - West Wing
Recommond Arproval 1 can For bes
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
Warren K. Hendriks
telephone the Staff Secretary immediately.
For the President
THE WHITE HOUSE
WASHINGTON
10/22/74
TO: WARREN HENDRIKS
RDLx.
Robert D. Linder
MEMORANDUM
ACTION
THE WHITE HOUSE
WASHINGTON
Last Day - October 29
MEMORANDUM FOR:
THE PRESIDENT
FROM:
KEN COLE
SUBJECT:
Enrolled Bill S. 628
Civil Service Survivor
Annuities
Attached for your consideration is Senate bill, S. 628,
sponsored by Senator Moss, which provides that a civil
service retirement annuity which had been reduced to
provide for survivor benefits may be recomputed to allow
full annuity to the retiree during periods of non-marriage.
Roy Ash recommends approval etc.
We have checked with the Counsel's office (Chapman) and
Bill Timmons who both recommend approval.
RECOMMENDATION
That you sign Senate bill S. 628 (Tab B).
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 688
Date:
October 22, 1974
Time:
6:30 p.m.
FOR ACTION: Geoff Shepard
CC (for information): Warren K. Hendriks
Phil Buchen
Jerry Jones
Bill Timmons
Paul Theis
FROM THE STAFF SECRETARY
DUE: Date:
Friday, October 25, 1974 Time: 2:00 p.m.
SUBJECT:
Enrolled Bill S. 628 Civil service survivor
annuities
ACTION REQUESTED:
For Necessary Action
XX For Your Recommendations
Prepare Agenda and Brief
Draft Reply
For Your Comments
Draft Remarks
REMARKS:
Please return to Kathy Tindle - 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
Warren Nadrika
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
OCT 22 1974
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill S. 628 - Civil service survivor
annuities
Sponsor - Sen. Moss (D) Utah, and 5 others
Last Day for Action
October 29, 1974 - Tuesday
Purpose
Provides that a civil service retirement annuity which had
been reduced to provide for survivor benefits may be
recomputed to allow full annuity to the retiree during
periods of non-marriage.
Agency Recommendations
Office of Management and Budget
Approval
Civil Service Commission
Does not
recommend veto
Discussion
Under civil service retirement law, the annuity of a
retiring married Federal employee or Member of Congress
is automatically reduced to provide survivor benefits to
a widow or widower, unless at the time of retirement the
employee elects in writing to receive an unreduced
"single-life" annuity. If the employee or Member takes a
reduced annuity, the designated survivor is entitled to
55 percent of the retiree's annuity upon his death.
The election which the employee makes at the time of
retirement is irrevocable under current law. Accordingly,
a reduction in annuity continues whether or not the
retiree's spouse dies or the marriage is dissolved by
Calendar No. 333
93D CONGRESS
SENATE
REPORT
1st Session
No. 93-351
SURVIVOR ANNUITIES OF CIVIL SERVICE RETIREES
JULY 27, 1973.-Ordered to be printed
Mr. McGEE, from the Committee on Post Office and Civil Service,
submitted the following
REPORT
[To accompany S. 628]
The Committee on Post Office and Civil Service, to which was
referred the bill (S. 628) to amend chapter 83 of title 5, United States
Code, to eliminate the annuity reduction made, in order to provide a
surviving spouse with an annuity, during periods when the annuitant
is not married having considered the same, reports favorably thereon
without amendment and recommends that the bill do pass.
STATEMENT AND JUSTIFICATION
Under the present civil service retirement law, a Federal employee
is allowed to name a survivor beneficiary at the time of retirement.
The designated survivor, usually the spouse, is then entitled to 55
percent of the retiree's annuity upon his death. The election which the
employee makes at the time of his retirement is irrevocable and the
reduction in annuity continues regardless of whether he or his spouse
dies first. About 65 times out of 100, a male retiree dies before his wife
dies; but more than one-third of the time, a male retiree will outlive
his wife and will continue to pay a reduction in his annuity to provide
a survivor benefit for which there is, by law, no beneficiary. The
problem of providing adequate income for older citizens is national
in scope.
The Committee believes that it is in the best interest of the govern-
ment and the civil service retirement system to amend existing law to
allow full annuity to an annuitant during periods when he is not
married. This recommendation is consistent with previous policy
established by the Congress in regard to survivor annuities.
In 1966, Congress changed the Civil Service Retirement Act to
eliminate the termination of survivor annuity in the case of a spouse
who remarried after her husband's death; and since the enactment of
99-010
2
3
that change, the provision was made partially retroactive to insure
an unreduced single-life annuity. The employee's decision in this
equitable treatment for all surviving spouses whose remarriage oc-
matter is irrevocable; the law does not permit him to change his
curred on or after July 18, 1966.
reduced survivor annuity to an unreduced single-life annuity should
In 1971 Congress enacted Public Law 91-658, which provided that
the marriage relationship upon-which the survivor right was based be
when a spouse who had been designated a survivor to a civil service
dissolved. However, a subsequent spouse of a retiree who elected a
annuity dies first, the surviving spouse could designate a second spouse
reduced annuity with survivor benefit to a spouse who is the parent of
to receive those benefits, provided that marriage had been in effect
a child by marriage to the retiree, or who has been married to the
two years at the death of the retiree. The bill likewise provided that if
retiree for at least two years, will qualify for the survivor benefit.
a survivor spouse died, the retiree could begin receiving a full annuity
S. 628 would add to this survivor annuity option the proviso that if
instead of a reduced annuity. The first part of the bill was passed and
the marriage relationship is dissolved, the retiree's reduced annuity
became public law, but the second part of the bill was dropped. It is
would be recomputed, under the law in effect at the time he retired, as
the Committee's belief that enactment of S. 628 will complete an un-
though he had not provided a survivor benefit for his spouse.
finished project of the 91st Congress.
Originally, the reduction was equal to the full actuarial cost of the
survivor protection computed over the lifetime of the retiree, taking
HEARINGS
into account that there will be instances where the survivor benefit
will never be payable due to intervening death or divorce of the named
A hearing was held on S. 628 on June 6, 1973. Hearings were also
survivor. As shown in the following table, though, this reduction has
held on similar bills in the 91st and 92d Congresses.
been decreased five times SO that it now equals only a fraction of the
cost of the survivor protection.
COST
Retired between-
If S. 628 was enacted, the unfunded liability would be increased by
Reduction in retiree's annuity
Benefit to spouse named at retirement
an estimated $137 million with 30 equal annual installments of $8.5
Jan. 1, 1940 and Mar. 31, 1948
Full actuarial
50 or 100 percent of retiree's re-
million each. The normal cost would be increased by 0.01 percent.
duced annuity.
Apr. 1, 1948 and Sept. 29, 1949
10 percent, plus 8/4 of 1 percent for any
50 percent of retiree's unreduced
years spouse under age 60.
annuity.
AGENCY VIEWS
Sept. 30, 1949 and Sept. 30, 1956
5 percent of first $1,500 and 10 percent
Do.
of remainder, plus 3/4 of 1 percent
for any years spouse under age 60.
UNITED STATES CIVIL SERVICE COMMISSION,
Oct. 1, 1956 and Oct. 10, 1962
23/2 percent of first $2,400 and 10 per-
50 percent of the amount used as
cent of any added amount used as
survivor base.
Washington, D.C., June 6, 1973.
base for survivor benefit.
Hon. GALE W. McGEE,
Oct. 11, 1962 to present
2½ percent of first $3,600 and 10 per-
55
percent
of
the
amount
used
as
of any added amount used as base
survivor base.
Chairman, Committee on Post Office and Civil Service,
for survivor benefit.
U.S. Senate, Washington, D.C.
DEAR MR. CHAIRMAN: This refers to your request for the Com-
Furthermore, the amount payable to a subsequent spouse is the
mission's views on S. 626, a bill to provide increases in certain annuities
same as would have been payable to the spouse designated at the time
payable under chapter 83 of title 5, United States Code, and for other
of retirement.
purposes, and S. 628, a bill to amend chapter 83 of title 5, United
We estimate that if this bill is enacted the unfunded liability of the
States Code, to eliminate the annuity reduction made, in order to
Civil Service Retirement and Disability Fund would be increased by
provide a surviving spouse with an annuity, during periods when the
$137 million, and the normal cost would be increased by .01% of
annuitant is not married. The Subcommittee on Compensation and
payroll. Under the provisions of section 8348(f) of title 5, United
Employee Benefits of the Senate Committee on Post Office and Civil
States Code, this amount would be amortized by 30 equal installments
Service has requested us to testify before them on June 6, 1973,
of approximately $85 million.
concerning these two bills as well as S. 1866, a bill with the same title
The Commission does not believe there is sufficient justification for
as (and rather similar to) S. 626. Accordingly, we are voluntarily
restoring full annuity to warrant this accompanying increase in
including our views on S. 1866 in this report.
retirement costs.
In summary, the Commission opposes enactment of S. 626, S. 628,
S. 628
and S. 1866 for the reasons discussed in this report.
In advising with respect to H.R. 1262 a House bill identical to S.
As indicated earlier in this report, S. 628 would eliminate the re-
626 and similar to S. 1866, the Office of Management and Budget
duction in annuity that a retiree takes to provide survivor benefits for
advised that enactment would not belin accord with the program of
his spouse during periods of nonmarriage.
the President.
Under the Civil Service Retirement law, the annuity of a retiring
By direction of the Commission:
married employee is automatically reduced in order to offset a portion
Sincerely yours,
of the cost of providing survivor benefits for his wife (or her husband),
ROBERT HAMPTON,
unless at time of retirement the employee elects in writing to receive
Chairman.
S. Rept. 93-351
S. Rept. 93-351
4
CHANGES IN EXISTING LAW
In compliance with subsection 4 of rule XXIX of the Standing
Rules of the Senate, changes in existing law made by the bill as
reported are shown as follows (existing law in which no change is
proposed is shown in roman; existing law proposed to be omitted is.
enclosed in black brackets; new matter is shown in italic):
TITLE 5, UNITED STATES CODE
*
*
*
*
*
*
*
§ 8339. Computation of annuity
(a) Except as otherwise provided by this section, the annuity of an
employee retiring under this subchapter is-
(1) 1½ percent of his average pay multiplied by SO much of his.
total service as does not exceed 5 years; plus
(2) 13/4 percent of his average pay multiplied by SO much of his
total service as exceeds 5 years but does not exceed 10 years; plus.
(3) 2 percent of his average pay multiplied by SO much of his
total service as exceeds 10 years.
However, when it results in a larger annuity, 1 percent of his average
pay plus $25 is substituted for the percentage specified by paragraph
(1), (2), or (3) of this subsection, or any combination thereof.
*
*
*
*
*
*
*
(j) The annuity computed under subsections (a)-(i) of this section
for a married employee or Member retiring under this subchapter, or
any portion of that annuity designated in writing for the purpose of
section 8341 (b) of this title by the employee or Member at the time
of retirement, is reduced, for any month during which that employee or
Member is married for any portion of the month, by 2½ percent of SO
much thereof as does not exceed $3,600 and by 10 percent of so much
thereof as exceeds $3,600, unless the employee or Member notifies the
Civil Service Commission in writing at the time of retirement that he
does not desire any spouse surviving him to receive an annuity under
section 8341 (b) of this title.
S. Rept. 93-351
93D CONGRESS
HOUSE OF REPRESENTATIVES
REPORT
2d Session
No. 93-915
SURVIVING SPOUSE CIVIL SERVICE RETIREMENT AN-
NUITIES WITHOUT REDUCTION IN PRINCIPAL
ANNUITIES
MARCH 19, 1974.-Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Mr. WALDIE, from the Committee on Post Office and Civil Service,
submitted the following
REPORT
[To accompany S. 628]
The Committee on Post Office and Civil Service, to whom was re-
ferred the bill (S. 628) to amend chapter 83 of title 5, United States
Code, to eliminate the annuity reduction made, in order to provide
a surviving spouse with an annuity, during periods when the annuitant
is not married, having considered the same, report favorably thereon
with amendments and recommend that the bill as amended do pass.
The amendment to the text of the bill strikes out all after the
enacting clause and inserts in lieu thereof a substitute which appears
in the reported bill in italic type.
The other amendment modifies the title of the bill to make it con-
form to the changes made by the amendment to the text.
EXPLANATION OF AMENDMENTS
As passed by the Senate, S. 628 would eliminate, during periods
when an annuitant is not married, the reduction in annuity that he
accepts upon retirement in order to provide an annuity for his sur-
viving spouse.
The Committee amendment to S. 628 substitutes an entirely new text
which makes several substantive changes in the civil service retire-
ment provisions. The title of the bill is amended to conform to the
substitute text.
The explanation of the provisions of the substitute text is contained
in the explanation of the bill as set forth hereinafter in this report.
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benefit earned during reemployment, and an automatic increase in the
PURPOSE
survivor benefit attributable to such reemployment.
With respect to the unmarried retiree who elects a reduced annuity
The primary purposes of this legislation are:
in order to provide a survivor annuity for an individual having an
of a future civil service retiree without any reduction in the re-
(1) To provide an automatic annuity to the surviving spouse
insurable interest, the reductions prescribed by present law (section
8339 (k) (1) of title 5, United States Code, redesignated as 8339
tiring employee's annuity;
by this Act) are retained. However, the provision under which such
eliminate the reduction in annuity which the retiree had
(2) To recompute the annuity of a current retiree so elected as to
retiree may substitute a subsequently acquired spouse as the survivor
annuitant and accept a lesser reduction in his annuity (section 8339
in order to provide his spouse a survivor annuity;
(3) To provide an automatic annuity to the spouse of a current
(k) (2), redesignated as 89(j) by this Act), is changed by the bill
retiree who did not have the opportunity or failed to provide an
to authorize payment of a single life rate of annuity. Rather than
recomputing and reducing such & retiree's annuity by 21/2 percent of
annuity for his surviving spouse; and
shall equal 55 percent of the retiree's single life rate of annuity, 55
(4) To provide that the basic annuity of a surviving spouse
$3,600 and 10 percent of the excess, the annuity would be recom-
puted to eliminate any reduction to provide a benefit for his spouse.
including survivor annuitants whose annuities are less than
Present retirees.-The majority of married retirees have accepted
reductions in their annuities SO as to provide continuing retirement
percent under existing vested rights.
incomes to their spouses subsequent to their deaths. Such reductions
amount to hundreds of dollars each year, with many of the older re-
COMMITTEE ACTION
tirees having forfeited up to 25 percent of their annuity payments to
S. 628, as amended, was unanimously approved by the Subcom-
guarantee their dependent spouses survivor benefits. In fact, in some
mittee on Retirement and Employee Benefits and ordered reported by
cases the cumulative amounts forfeited during the lifetime of the
unanimous voice vote of the full Committee. A hearing (Hearing
retiree exceed the total amount of annuity paid during the remainder
No. a 93-11) on H.R. 30, a bill similar to S. 628, as passed by the Senate,
of the surviving spouse's lifetime.
Acceptance of the reduced benefit is irrevocable under present law
was held on June 28, 1973.
and the reduction in annuity continues irrespective of whether the
EXPLANATION OF S. 628
spouse predeceases the retiree or the marriage is terminated by divorce.
In one out of three cases a male retiree survives his designated wife and
Future retirees.-Existing law (section 8339 of title 5, United
continues to suffer a reduction in annuity even though a survivor
States Code) provides a retiring married employee or Member widow two
benefit will never become payable (unless he subsequently remarries).
of annuities; a reduced annuity with survivor benefit benefit. to a
The bill would extend to present retirees the same benefits accorded
types or widower or an unreduced annuity without survivor
by the bill to future retirees. The annuity of a present retiree who is
The married retiree is automatically granted an annuity with survivor sur-
drawing a reduced benefit in order to provide an annuity for a surviv-
vivor benefit unless he elects, in writing, an annuity without to
ing spouse, regardless of the provisions of law in effect upon his retire-
benefit. By electing the latter, he precludes payment of a benefit any
ment, would be recomputed by eliminating the percentage reduction
spouse surviving him.
which was applied upon retirement. The annuity would be payable at
base the rate of survivor annuity, the retiree may elect to use a
In lieu of using the single-life rate of his annuity upon which only to
the single rate, plus any statutory or cost living increases appli-
cable thereto which were authorized prior to the date of enactment of
portion of his annuity. as a base for survivor purposes.
this legislation.
His single life rate of annuity, or any portion of that rate desig- of
Similar treatment is proposed by the bill for a retiree who has sub-
nated for survivor purposes; currently is reduced by 21/2 percent much so
stituted, or may in the future substitute, a spouse acquired after retire-
much thereof as does not exceed $3,600 and by 10 percent of se
ment in lieu of a person with an insurable interest. Such an annuitant's
thereof exceeds $3,600.
benefit will be recomputed, effective upon enactment of this legislation
reducedy The single life rate or 55 percent of the amount elected by
surviving as spouse's annuity is 55 percent of the retirees un- the
or the first day of the month after a change in election is executed,
whichever is later, to eliminate any reduction for surviving spouse
retiring employee as a base for survivor benefits.
annuity purposes.
The reported bill proposes to repeal this requirement for reducing for
Surviving spouses' benefits.-For survivor annuity purposes, exist-
the annuity and eliminates the provisions under which the married amount
of a retiree in order to provide a survivor annuity retiree a
ing law- (section 8341 of title 5, United Statés Code) defines a
widow or widower the surviving wife or husband of an employee
spouse either deny his spouse a survivor benefit or provide amends an the
who was married to him (or her). for at least two years immediately
may than that based upon his maximum rate. It also United
before his death, or is the mother or. father of issue by that marriage.
less annuuity provisions (section 8344 of title 5, annuity
Either requirement must be met by the survivor of an employee whose
"supplemental" States Code) to grant a reemployed annuitant an unreduced
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death occurs in service or the survivor of a post-retirement marriage in
order to qualify for an annuity benefit.
ship protection. Additionally, those separated with entitlement to de-
However, the surviving spouse of a retiree, married at the time
annuity. ferred annuity were precluded by law from providing a survivor
of retirement, does not have to fulfill either requirement for
entitlement.
However, the right to a survivor annuity granted under the bill
The bill proposes to modify these requirements with respect to the
would vest only in the spouse-of an annuitant who dies on or after
spouses of employees or members who die in service, or after retiring
the date of enactment. No benefits would be payable to a spouse who
from service, on or after the date of enactment. To qualify for a sur-
otherwise had no entitlement if the annuitant has died prior to the
date of enactment.
vivor annuity the spouse would have to have been married to the em-
ployes or retiree for at least one year prior to his death (or be the
STATEMENT
parent of issue by that marriage).
Thus, the existing two-year marriage requirement would be reduced
The joint and survivorship annuity option was first added to the
to a one-year requirement. The present provisions which grants a sur-
to provide survivor annuity entitlement. The option has been
required a full actuarial reduction in the retired employee's annuity
civil service retirement law effective January 1, 1940, and originally
vivor annuity to a spouse who was married to the retiree on the date
of his retirement will be revised so as to require that such marriage
be in effect for at least one year preceding the retired employee's death.
cost to the retiree:
amended, as follows, to progressively decrease the annuity reduction
Accordingly, a uniform one-year length of marriage requirement will
apply in cases of employees and present and future retirees whose
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deaths occur on or after the date of enactment, except that a spouse
Amendment
Retired between
Reduction in retiree's annuity
Benefit to spouse
who was married to a retiree at the time of his retirement before en-
named at retirement
actment would not be required to meet the one-year requirement in
Public Law 76-263 Aug. 4, 1939
Jan. 1, 1940 to
Full setuaded
order to receive a survivor annuity.
Mar. 31, 1948.
50 or 100 percent of
retiree's reduced
Under present law (section 8341 (b) of title 5, United States Code)
Public Law 80-426 Feb. 28, 1948
Apr. 1 1948 to
annuity.
Sept. 29, 1949.
10 percent, plus 3/4 of 1 percent
50 percent of
the eligible spouse is generally entitled to a survivor annuity equal to
for any years spouse under
retiree's unre-
Public Law 81-310, Sept. 30, 1949
age 60.
55 percent of the single life rate which would have been payable to the
Sept. 30, 1949 to
5 percent of 1st $1,500 and 10
duced annuity.
Sept. 30, 1956.
Do.
deceased retiree, or 55 pereent of such portion thereof as he may have
percent of remainder, plus 8/4
of 1 percent for any years
designated for survivorship purposes.
Public Law 84-854, July 31, 1956
Oct. 1, 1956 to
spouse under age 60.
Oct. 10, 1962.
2½ percent of 1st $2,400 and 10
The bill amends the present provision to provide that the annuity
50 percent of the
percent of any added amount
amount used as
payable to an eligible spouse will be equal to 55 percent of the annuity
used as base for survivor
Public Law 87-793, Oct. 11, 1962
benefit.
survivor base.
Oct. 11, 1962 to
otherwise payable to the employee who retires on or after the date of
2½ percent of 1st $3,600 and 10
present.
55 percent of the
percent of any added amount
enactment. As under existing law, no survivor annuity would be paid
amount used as
used as base for survivor
benefit.
survivor base.
to the spouse acquired after retirement in the case of the retiree who
which makes several substantive changes in the civil service retire-
interest.
Such change would also apply to present survivor annuitants whose
The foregoing table is indicative of the direction in which the
basic benefits are equal to less than 55 percent of the deceased retiree's
tion has been going toward providing automatic, cost-free survivor- op-
single life rate of annuity, regardless of the provisions of law in effect
ship protection to retirees, comparable to the existing provisions under
upon the retirees' separation from service. The basic annuities of such
where death occurs while actively employed.
which automatic payment of survivor annuity is made to spouses
surviving spouses would be recomputed, if necessary, and paid in an
amount equal to 55 percent of the maximum rate of annuity to which
It is the consensus of the Committee that its amendment makes
the deceased employee or retiree would have been entitled, plus any an-
nuity increases applicable to such survivor annuity which were pre-
While restoration of the full, single life rate of annuity would be
economic sense than the provisions of S. 628, as passed by the Senate. more
viously authorized by law.
whose marriage otherwise has been terminated, the Committee
a valuable benefit for the retiree whose spouse has predeceased him, or
This change applies equally to the surviving spouses of amuitants
who retired or separated before the date of enactment and whose
deaths occur subsequent thereto. Not only would the change affect
benefits to the retiree alone than had been paid to him during his
nizes that such restoration would result in the payment of higher recog- total
those spouses with vested rights to future annuities, but it will vest
spouse's lifetime; thus, creating the anomalous situation of providing
the retiree more benefits at a time when his economic need is less.
entitlement in certain spouses who presently have no annuity rights.
With respect to the latter, in many instances-particularly in cases
Further, the Committee considers it amomalous to provide the
of separations prior to October 1, 1956-annuity computation formu-
spouse of a Federal employee automatic survivor annuity protection
las were so low and survivorship reduction percentages SO high that
tion of his earnings, to require the retirement income to be reduced
in the event of his death in service, but, upon retiring on only a por-
the retiring employee could not afford to provide his spouse survivor-
further in order to continue to furnish such protection.
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In the judgment of the Committee, the improvements proposed in
Paragraph (3) of subsection (a) amends the redesignated subsec-
the amended bill are consistent with the trend developing in private
tion (j) of section 8339, formerly subsection (k).
pension plans and more closely parallel recent liberalizations in related
No change is made in the provisions of paragraph (1) of subsec-
provisions of the social security program. Although this legislation
tion (j), formerly (k), which permit an unmarried employee or Mem-
will not grant the civil service retiree a dependent's "allowance", it
ber to elect, at the time of retirement, a reduced annuity in order to
will permit him to have the full annuity during a period of marriage
provide a survivor annuity under section 8341 (c) of title 5 for an
as well as during periods when he may not be married.
individual having an insurable interest in the retiring employee or
Member. The annuity of an employee or Member who makes such an
SECTION ANALYSIS
election is reduced by 10 percent, and by five percent for each full five
years the individual having the insurable interest is younger than the
retiring employee or Member.
FIRST SECTION
As a result of the repeal of the existing subsection (j) of section
Subsection (a) of the first section of the bill consists of several
8339, discussed above, paragraph (2) of the redesignated subsection
amendments to section 8339 of title 5, United States Code, relating to
(j), formerly (k), is amended to eliminate that language which now
the computation of civil service retirement annuities.
provides for a reduction in the annuity of a retired employee or Mem-
Paragraph (1) of subsection (a) repeals the existing provisions of
ber who acquires a spouse after retirement and who elects to provide
subsection (j) of section 8339. Under those provisions, the annuity of
a survivor annuity for that spouse in lieu of the survivor benefit
a married employee or Member retiring under subchapter III (Civil
which he previously elected under paragraph (1) for a person having
Service Retirement) of chapter 83 of title 5, automatically is reduced
an insurable interest.
by 21/2 percent of the first $3,600 of such annuity and by 10 percent of
Under existing law (section 8339 (k) (2)), the annuity of a retired
any amount in excess of $3,600, unless the employee or Member noti-
employee or Member who elects to provide a survivor annuity for
fies the Civil Service Commission in writing at the time of retirement
his newly acquired spouse in lieu of the annuity for a person with an
that he does not wish to provide an annuity under section 8341 (b) of
insurable interest is reduced in accordance with the existing provisions
title 5 for any spouse surviving him. Under the current provisions of
of section 8339 Of course, such reduction is less than that re-
subsection (j) the retiring employee or Member is granted the option
quired under the existing section 8339 (k) (1). Under the amended
of using the single-life rate of his annuity as the basis for computing
provisions of subsection (j) (2), formerly (k) (2), the annuity of an
a survivor annuity or using only a portion of his annuity for survivor
employee or Member who makes such an election will be restored to
annuity purposes. The percentage reductions discussed above are ap-
the full single-life rate. Such reduced annuity is effective the first day
plied against whatever portion of his annuity the retiring employee
of the month after the employee's or Member's election is received
or Member elects to use as a basis for a survivor annuity. The decision
by the Civil Service Commission.
of a married employee or Member to accept a reduced annuity with
Paragraph (4) of subsection (a) makes a technical correction in
survivor benefit or an unreduced annuity with no survivor benefit is
the language of the redesignated subsection (k), formerly subsection
irrevocable under existing law. If the married employee or Member de-
(1), of section 8339. The correction is necessitated by the repeal of
cides at the time of retirement to accept a reduced annuity with sur-
section 8339 (j).
vivor benefit, such reduction continues in effect irrespective of whether
Subsection (b) of the first section of the bill consists of several
his spouse predeceases him or the marriage is terminated by divorce.
amendments to section 8341 of title 5, United States Code, relating
The effect of repealing subsection (j) of section 8339 is to eliminate
to survivor annuities.
from the law those provisions which now require a reduction in the
Paragraph (1) of subsection (b) deletes the existing paragraphs
annuity of a retiring employee or Member who desires to provide an
(1) and (2) of section 8341 (a) and inserts a new paragraph (1) in
annuity for his surviving spouse and those provisions which now per-
lieu thereof.
mit a retiring employee or Member to deny his spouse entitlement to a
Paragraphs (1) and (2) of section 8341 (a) now define the terms
survivor annuity. This amendment will apply to employees or Mem-
"widow" and "widower" for the purposes of the survivor annuity
bers who separate with title to a deferred annuity under 5 U.S.C.
provisions. Under existing law the widow or widower of an employee
8338, or retire with an immediate annuity under subchapter III of
or Member who dies in service, or of an annuitant who acquires a
tion. Under section 2 of the bill, discussed below, benefits are provided
chapter 83 of title 5, on or after the date of enactment of this legisla-
spouse after retirement, is entitled to a survivor annuity only if such
widow or widower had been married to the employee, Member, or
for annuitants who currently are receiving reduced annuities and for
annuitant for at least two years immediately preceding his death or is
employees who separated under 5 U.S.C. 8338 prior to the date of
the parent of issue by that marriage. A spouse to whom an annuitant
enactment of this legislation.
was married at the time of retirement does not have to satisfy either
Paragraph (2) of subsection (a) redesignates subsections (k) to (n)
of such requirements and is entitled to a survivor annuity (unless the
of section 8339 as subsections (j) to (m), respectively. This is a techni-
retiring employee has elected not to provide such an annuity) regard-
cal change made necessary by the repeal of section 8339 (j) under par-
less of the duration of the marriage relationship.
agraph (1) of subsection (a), discussed above.
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The amendment made by paragraph (1) of subsection (b) substi-
The amendments. made by paragraphs (4), (5), (6), and (7) of
subsection (b) are technical changes which are necessitated by the
tutes a definition of "spouse" in lieu of the definitions of "widow" and
substantive amendments made by provisions of the bill discussed above.
"widower". The term "spouse" is defined as meaning the surviving
Subsection (c) of the first section of the bill deletes that provision
wife or husband of any employee, Member, or annuitant who was
in section 8344 (a) of title 5. (annuities and pay on reemployment)
married to the employee, Member, or annuitant for at least one year
which now requires a ten percent reduction in the supplemental an-
immediately before the death of the employee, Member, or annuitant
nuity earned by a reemployed annuitant who is receiving a reduced
or who is the parent of issue by that marriage. The effect of this
annuity and provides for an increase in the survivor annuity pay-
amendment is to require any surviving spouse, including a spouse to
able under section 8341 (b), unless the reemployed annuitant notifies
whom an annuitant was married at the time of retirement, to satisfy
the Civil Service Commission that he does not desire the survivor an-
at least one of the two conditions specified in the new definition in
nuity to be increased. In lieu of that provision, subsection (c) inserts
order to be eligible for entitlement to a survivor annuity. The appli-
new language which, in effect, provides an unreduced benefit for the
cation of this amendment is discussed below under the analysis of
annuitant based on his period of reemployment and increases the sur-
section 2 of the bill.
vivor annuity by 55 percent of the supplemental annuity earned by the
Paragraph (2) of subsection (b) is a technical amendment redesig-
reemployed annuitant,
nating paragraph (3) of section 8341(a) as paragraph (2) of such
SECTION 2
section. Paragraph (3) of subsection (b) deletes the exisiting paragraphs
Generally, the rights and benefits of employees who retire under the
(1) and (2) of section 8341 (b) and substitutes a new paragraph (1)
civil service retirement provisions, and the rights and benefits of their
in place thereof. Under the existing paragraph (1) of section 8341 (b),
survivors, are governed by the provisions of law which are in effect at
the surviving spouse of an employee or Member who dies after having
the time of retirement or at the time of separation with title to a de-
retired is entitled to an annuity equal to 55 percent (or 50 percent if
ferred annuity. Therefore, in the absence of provisions to the contrary,
the employee or Member retired before October 11, 1962) of the single-
the amendments made by the first section of this bill would apply only
life rate of annuity which was payable to the deceased employee or
to those employees or Members who separate or retire on or after the
Member or 55 percent of such portion thereof as the employee or
date of enactment of this legislation. However, it is the Committee's
Member may have designated for survivorship purposes under the
intent to extend certain of the benefits authorized under this legisla-
existing provisions of section 8339(j), unless the employee or Member
tion to annuitants and certain survivors of annuitants who retired or
elected at the time of retirement not to provide an annuity for his
separated prior to the date of enactment. Section 2 of the bill con-
surviving spouse.
tains the provisions necessary to carry out the Committee's intent.
The existing provisions of paragraph (2) of section 8341 (b) pro-
Subsection (a) of section 2 applies to annuitants who presently are
vide that the widow or widower of an annuitant who retired before
receiving reduced annuities in order to provide annuities for their
April 1, 1948, or an annuitant who elected a reduced annuity under
surviving spouses. Under subsection (a), the annuity of a retired
paragraph (2) of section 8339(k), is entitled to an annuity in an
employee or Member who, immediately before the date of enactment
amount which would have been paid had the annuitant been married
of this Act, was receiving such a reduced annuity shall be recomputed
to such widow or widower at the time of retirement.
and paid as if the annuity had not been SO reduced. The intent of this
In lieu of the existing paragraphs (1) and (2) of section 8341 (b),
provision merely is to eliminate the percentage reduction in the retired
the new paragraph (1) provides that when an annuitant dies and is
employee's annuity which is required under existing law in order to
survived by a spouse, the spouse is entitled to an annuity equal to 55
provide a survivor benefit for a surviving spouse. This provision cor-
percent of the maximum annuity to which the annuitant was entitled
responds to the amendment made by paragraph (1) of subsection (a)
as computed under section 8389 (a) (i) of title 5. However, no annuity
of the first section of the bill which repeals section 8339 of title 5.
is payable to the surviving spouse of an annuitant who failed to elect
The annuities covered under this provision will be recomputed to elim-
to provide a survivor annuity for his spouse under section 8339(j)
inate the reductions which were in effect, but no increase resulting
(2), as amended by this bill, in lieu of a surivior benefit for a person
from such recomputation will be paid for any period prior to date of
having an insurable interest.
enactment of this legislation.
This amendment will apply to the surviving spouse of any annuitant
Subsection (b) of section 2 applies to an employee or Member who
who separates with title to a deferred annuity under 5 U.S.C. 8338,
separated with title to a deferred annuity under 5 U.S.C. 8338 (or any
or who retires under subchapter III of chapter 83 of title 5, on or
prior applicable provision of law) prior to the enactment date of this
after the date of enactment of this legislation. However, under sec-
legislation but whose annuity commences on or after such date of en-
tion 2 of this bill, discussed below, comparable benefits are provided
actment. Under existing law (section 8339(j) of title 5) the annuity
for surviving spouses who currently are in receipt of survivor annu-
of such an employee or Member would be reduced unless he elects at
ities and surviving spouses of annitants who retired or separated prior
the time of retirement not to provide an annuity for his surviving
to the date of enactment of this legislation and who die on or after
spouse.
such date of enactment.
H. Rept. 93-915-2
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This subsection provides that the annuity of an employee or Mem-
Member was entitled at the time of his retirement or separation plus
ber covered under the subsection shall be paid as if the amendment
any annuity cost-of-living adjustments applicable to such survivor
made by paragraph (1) of subsection (a) of the first section of this
annuity which were authorized by law prior to the date of enactment
Act (i.e. the repeal of section 8339 (j) of title 5) had been in effect at
of this Act.
the time of the employee's or Member's separation. Thus, such an
Under existing law an eligible surviving spouse generally is entitled
employee or Member will be entitled to receive an unreduced annuity
to a survivor annuity equal to 55 percent of the single-life rate of an-
with survivor benefits payable to his spouse.
nuity to which the deceased retiree was entitled or 55 percent of such
Subsection (c) of section 2 provides that the amendments made by
portion thereof as the retiree may have designated for survivorship
paragraph (3) of subsection (a) of the first section of this Act shall
purposes. Under this subsection of section 2, all existing surviving
apply to annuities commencing before, on, or after the date of enact-
spouse annuities will be recomputed, where necessary, and paid in an
ment of the Act. Paragraph (3) of subsection (a) amends the redesig-
amount equal to 55 percent of the maximum rate of annuity to which
nated subsection (j) of section 8339, formerly subsection (k). As
the retiree would have been entitled at the time of retirement plus any
discussed above, paragraph (2) of the redesignated subsection (j)
cost-of-living adjustments applicable to such survivor annuity which
was amended to eliminate that language which now provides for a
were authorized by law prior to the date of enactment of this legisla-
reduction in the annuity of a retired employee or Member who ac-
tion. Thus, in effect, the surviving spouses covered under this subsec-
quires a spouse after retirement and who elects to provide a survivor
tion will be entitled to annuities in an amount which would have been
annuity for such spouse in lieu of the survivor annuity which he
paid if the amendments made by the first section of this bill had been
previously elected under paragraph (1) for a person having an in-
in effect at the time of the former employee's or Member's separation
surable interest. Under the amended language of the new subsection
or retirement. Increases resulting from the recomputation of annuities
(j) (2), the annuity of an employee or Member who makes such an
under this subsection will not be paid for any period prior to the date
election will be restored to the full single-life rate. Under the provi-
of enactment of this legislation.
sions of subsection (c) of section 2, the above-discussed amendment
Subsection (f) of section 2 applies to spouses of annuitants who re-
will apply to any retired employee or Member regardless of the com-
tired or separated prior to the date of enactment of this legislation
mencing date of his annuity. If the retired employee or Member cur-
and who die on or after such date of enactment. Under this subsection
rently is receiving a reduced annuity under the existing provisions
such a spouse is entitled to an annuity equal to 55 percent of the max-
of section 8339 (k) (2), the annuity will be recomputed to eliminate
imum annuity to which the former employee or Member was entitled
such reduction, but no increase resulting from such recomputation will
at the time of his retirement or separation plus any cost-of-living ad-
be paid for any period prior to the date of enactment of this Act.
justments applicable to the former employee's or Member's annuity
Subsection (d) of section 2 provides that the amendment made by
which were authorized by law prior to the enactment date of this
paragraph (1) of subsection (b) of the first section of this Act shall
Act. The right to a survivor annuity under this subsection is not lim-
apply in the cases of employees, Members, or annuitants who die
ited to those spouses who currently have a vested right to a survivor
on or after the date of enactment of the Act. However, the amend-
annuity under existing law but extends to certain spouses who now
ment does not apply to a spouse to whom an annuitant was married
have no annuity entitlement. For example, the spouse of an annuitant
at the time of retirement if such retirement occurred prior to the date
who elected not to provide an annuity for a surviving spouse at the
of enactment. The amendment made by paragraph (1) of subsection
time of his retirement, or the spouse of an annuitant who was precluded
(b) substitutes a definition of "spouse" in lieu of the definitions of
by law from providing a survivor annuity, nevertheless will be en-
"widow" and "widower" for survivor annuity purposes. Since the
titled to a survivor annuity under this subsection if the annuitant
term "spouse", as defined under the amendment, includes require-
dies on or after the date of enactment of this Act. No benefits are pay-
ments which under existing law do not have to be met by a spouse
able under this subsection to the spouse of an annuitant who dies prior
to whom an annuitant was married at the time of retirement, the
to the enactment date of this Act.
amendment has been made inapplicable to such a spouse of an an-
For the purpose of subsection (f) the term "spouse" is defined to
nuitant who retired prior to the date of enactment of this Act. The
mean the surviving wife or husband, (1) to whom an annuitant was
amendment will apply to all other surviving spouses of employees,
married at the time of his retirement; (2) to whom an annuitant was
Members, or annuitants who die on or after the date of enactment.
married for at least one year immediately before his death; or (3) who
Subsection (e) of section 2 authorized recomputation of annuities
is the parent of issue by the marriage to the annuitant.
of surviving spouses who currently are receiving survivor annuities.
Subsection (g) of section 2 provides that no annuity or increase in
Specifically, subsection (e) provides that the annuity of a surviving
annuity resulting from the application of any of the provisions of
spouse who, immediately before the date of enactment of this Act was
section 2 of this Act shall be paid for any period before the date
receiving a survivor annuity under subchapter III of chapter 83 of
of enactment of this Act or for any period before the commencing
title 5, United States Code, or any prior applicable provision of law,
date of an annuity, whichever is later. Thus, while the provisions of
shall be recomputed, if necessary, and paid in an amount equal to 55
section 2 retroactively vest entitlement to new or increased benefits in
percent of the maximum annuity to which the former employee or
certain annuitants and surviving spouses, the actual payment of such
benefits will be made prospectively only from the date of enactment.
12
13
COST
Benefit to spouse named
Retired between
Reduction in retiree's annuity
at retirement
It is estimated that the bill, as amended, will increase the unfunded
liability of the Civil Service Retirement System by approximately
Jan. 1, 1940 and Mar. 31, 1948
Full actuarial
50 or 100 percent of retiree's reduced
$5.85 billion. Amortization of such amount, including the interest,
annuity.
Apr. 1, 1948 and Sept. 29, 1949
10 percent, plus 3/4 of 1 percent for any years
50 percent of retiree's unreduced
would require annual appropriations of approximately $362 million in
spouse under age 60.
annuity.
Sept. 30, 1949 and Sept. 30, 1956.
5 percent of first $1,500 and 10 percent of re-
50 percent of retiree's unreduced
each of the 30 years following enactment.
mainder, plus 3/4 of 1 percent for any years
annuity.
The normal cost of the system would be increased by an estimated
spouse under age 60.
Oct. 1, 1956 and Oct. 10, 1962
2½ percent of first $2,400 and 10 percent of
50 percent of the amount used as
0.37 percent of payroll.
any added amount used as base for survivor
survivor base.
benefit.
AGENCY REPORTS
Oct. 11, 1962 and present
2½ percent of first $3,600 and 10 percent of
55 percent of the amount used as
any added amount used as base for survivor
survivor base.
benefit.
The reports of the United States Civil Service Commission and the
Office of Management and Budget on S. 628, as passed by the Senate,
and the report of the United States Civil Service Commission dated
Furthermore, the amount payable to a subsequent spouse is the
February 7, 1974, on the Committee amendment thereto, are set forth
same as would have been payable to the spouse designated at the time
below:
of retirement.
We estimate that if the bill is enacted the unfunded liability of the
U.S. CIVIL SERVICE COMMISSION,
Civil Service Retirement and Disability Fund would be increased by
Washington, D.C., October 4, 1973.
Hon. THADDEUS J. DULSKI,
$136.7 million and the normal cost would be increased by .01% of
Chairman, Committee on Post Office and Civil Service, House of
payroll. Under the provisions of section 8348 (f) of title 5, United
Representatives, Washington, D.C.
States Code, this amount would be amortized by 30 equal installments
of approximately $8.5 million.
DEAR MR. CHAIRMAN This is in further reply to your request for
In conclusion, the Commission opposes enactment of S. 628. We be-
the Commission's views on S. 628, a bill "To amend chapter 83 of title
lieve there is not sufficient justification for restoring full annuity, to
5, United States Code, to eliminate the annuity reduction made, in
warrant the accompanying increase in retirement costs.
order to provide a surviving spouse with an annuity, during periods
The Office of Management and budget advises that from the stand-
when the annuitant is not married." S. 628 passed the Senate on
point of the Administration's program there is no objection to the
July 31, 1973.
submission of this report.
Under the Civil Service Retirement law, the annuity of a retiring
Sincerely yours,
married employee is automatically reduced in order to offset a portion
ROBERT HAMPTON,
of the cost of providing survivor benefits for his wife (or her hus-
Chairman.
band), unless at time of retirement the employee elects in writing to
receive an unreduced single-life annuity. The employee's decision in
EXECUTIVE OFFICE OF THE PRESIDENT,
this matter is irrevocable; the law does not permit him to change his
OFFICE OF MANAGEMENT AND BUDGET,
reduced survivor annuity to an unreduced single-life annuity should
Washington, D.C., November 5, 1973.
the marriage relationship upon which the survivor right was based be-
Hon. THADDEUS J. DULSKI,
dissolved. However, a subsequent spouse of a retiree who elected a
Chairman, Committee on Post Office and Civil Service, House of
reduced annuity with survivor benefit to a spouse who is the parent of
Representatives, 207 Cannon House Office Building, Washing-
a child by marriage to the retiree, or who has been married to the
ton, D.C.
retiree for at least two years, will qualify for the survivor benefit.
DEAR MR. CHAIRMAN This is in reply to the Committee's request
S. 628 would, in effect, provide that if the marriage relationship is dis-
for the views of this Office on S. 628, "To amend chapter 83 of title 5,
solved, the retiree's reduced annuity would be recomputed, under the
United States Code, to eliminate the annuity reduction made, in order
law in effect at the time he retired, as though he had not provided a
survivor benefit for his spouse.
to provide a surviving spouse with an annuity, during periods when
Originally the reduction was equal to the full actuarial cost of the
the annuitant is not married," as passed the Senate July 31, 1973.
survivor protection computed over the lifetime of the retiree, taking
S. 628 would allow the annuity of a retired employee who originally
into account that there will be instances where the survivor benefit will
elected a reduced annuity on behalf of a surviving spouse, to be recom-
never be payable due to intervening death or divorce of the named
puted and paid as a single-life, unreduced annuity where the marriage
survivor. As shown in the following table, though, this reduction has
has been dissolved. In its report, the Civil Service Commission states
been decreased five times SO that it now equals only a fraction of the
its reasons for opposing enactment of S. 628.
We concur in the views expressed by the Civil Service Commission
cost of the survivor protection.
and, accordingly, recommend against enactment of S. 628.
Sincerely,
WILFRED H. ROMMEL,
Assistant Director for Legislative Reference.
14
15
U.S. CIVIL SERVICE Commission,
survivor protection computed over the lifetime of the retiree, taking
Washington, D.C., February 7, 1974.
into account that there will be instances where the survivor benefit will
Hon. THADDEUS J. DULSKI,
never be payable due to intervening death or divorce of the named
Chairman, Committee on Post Office and Civil Service, House of
survivor. As shown in the following table, though, this reduction has
Representatives, Washington, D.C.
been decreased five times SO that it now equals only a fraction of the
cost of the survivor protection.
DEAR MR. CHAIRMAN: This is in further reply to your request for
the Commission's views on S. 628 (as amended), a bill "To amend
title 5, United States Code, to provide for annuities for surviving
Benefit to spouse named at
Retired between
Reduction in retiree's annuity
retirement
spouses under the civil service retirement system without reduction in
principal annuities, and for other purposes."
Jan. 1, 1940 and Mar. 31, 1948
Full actuarial
50 or 100 percent of retiree's reduced
The main features of S. 628 would:
annuity.
Apr. 1, 1948 and Sept. 29, 1949
10 percent, plus S/4 of 1 percent for any years
50 percent of retiree's unreduced
1. Provide for automatic survivor benefit to a surviving spouse
spouse under age 60.
annuity.
Sept. 30, 1949 and Sept. 30, 1956
5 percent of first $1,500 and 10 percent of
50 percent of retiree's unreduced
after 1 year (now generally 2 years) of marriage;
remainder plus 3/4 of 1 percent for any
annuity.
years spouse under age 60.
2. Eliminate the reduction in annuity (now 21/2% of the first
Oct. 1 1956 and Oct. 10, 1962
2½ percent of first $2,400 and 10 percent of
50 percent of the amount used as
$3,600 plus 10% of the remainder) that a retiree takes in order to
any added amount used as base for survivor
survivor base.
benefit.
provide a survivor benefit for a spouse;
Oct. 11, 1962 and present
2½ percent of first $3,600 and 10 percent of
55 percent of the amount used as
any added amount used as base for survivor
survivor base.
3. Prospectively restore the full single-life annuity for any
benefit.
already-retired annuitant whose benefit had been reduced to pro-
vide survivor annuity for a spouse; and
4. Prospectively increase the basic amount upon which the an-
Federal salary rates have been raised substantially in recent years
nuity is computed for any surviving spouse currently receiving
because of the adoption of the comparability principle. As a result of
an annuity based on less than the maximum amount which the
these salary increases and retirement law liberalizations (for example,
deceased annuitant could have elected.
a high-3 instead of a high-5 average salary is now used in computing
With respect to the first feature mentioned above, the 2-year mar-
annuities), the amounts of primary, as well as survivor annuities, have
riage requirement now imposed by law applies to surviving spouses of
also increased. Also, since 1962 the retirement law has provided for
(1) employees who die in service and (2) annuitants who marry after
cost-of-living adjustments which have resulted in annuity increases
of 61.8% for primary and survivor annuitants. The most recent cost-
retirement. No duration-of-marriage requirement applies to the sur-
viving spouse of a deceased annuitant if the marriage existed on the
of-living increase of 5.5% became effective just last January 1. Thus
date the annuitant retired. As we construe the 1-year marriage re-
the purchasing power of all original annuities has been maintained
quirement in section 1(b) of S. 628, it would apply to all surviving
and the Commission sees no compelling reason for substantially in-
spouses and therefore would have the effect of deliberalizing the dura-
creasing past and future annuities at this time by eliminating the
tion-of-marriage requirement for a surviving spouse who was married
reduction for survivor protection at prohibitive cost to taxpayers.
to the deceased annuitant at the time of retirement. The Commission
Insofar as cost is concerned, enactment of S. 628 (as amended)
would increase the unfunded liability of the Civil Service Retirement
is not opposed to reducing the duration-of-marriage requirement
from 2 years to 1 year but because of the deliberalizing effect of sec-
System by an estimated $5.85 billion. Under the provisions of sec-
tion 1(b) of S. 628, we prefer that S. 2174 be enacted. S. 2174 simply
tion 8348(f) of title 5, United States Code, this amount would be
amortized by 30 equal installments of approximately $362 million. S.
reduces the 2-year requirement to 1 year only in cases where the re-
628 (as amended) would increase the normal cost of providing future
quirement is now applicable:
The third and fourth features of S. 628 mentioned above are predi-
retirement benefits by 0.37% of payroll.
cated on the second, which would, for a future retiree, eliminate the
The President again emphasized the urgent need for budgetary
discipline in his January 30, 1974 message on the State of the Union
reduction in the primary annuity now required when the retiree ac-
in which Congress was urged to cooperate in holding down the cost of
cepts an annuity with a surviving spouse benefit based wholly or par-
Government to help win the fight against inflation. In view of the
tially on the primary annuity. The third and fourth features would
very substantial (almost $6 billion) cost of this proposal, as well as
prospectively put past retirees and their surviving spouses in the same
as the equities involved, the Commission very strongly opposes enact-
position as future retirees. The Commission, however, very strongly
ment of S. 628, as amended.
objects to the second feature-elimination of the reduction for future
retirees-and, it follows, to the last two features which are premised
The Office of Management and Budget advises that from the stand-
point of the Administration's program, there is no objection to the
on it.
The Commission believes that the present reduction in annuity
submission of this report.
which a retiree takes in order to provide survivor benefits for a spouse
By direction of the Commission
represents an equitable sharing of the cost of survivor protection.
Sincerely yours,
Originally, the reduction was equal to the full actuarial cost of the
ROBERT HAMPTON,
Chairman.
16
17
CHANGES IN EXISTING LAW MADE BY THE BILL, As REPORTED
(d) The annuity of an employee retiring under section 8336 of
this title is 2 percent of his average pay multiplied by his total service.
In compliance with clause 3 of Rule XIII of the Rules of the House
(e) The annuity of an employee retiring under section 8336(e) of
of Representatives, changes in existing law made by the bill, as re-
this title is computed under subsection (a) of this section. That an-
ported, are shown as follows (existing law proposed to be omitted
nuity may not be less than 50 percent of the average pay of the
is enclosed in black brackets, new matter is printed in italics, existing
employee.
law in which no change is proposed is shown in roman)
(f) The annuity computed under subsections (a)-(e) of this sec-
tion may not exceed 80 percent of-
TITLE 5, UNITED STATES CODE
(1) the average pay of the employee; or
(2) the greater of-
(A) the final basic pay of the Member; or
CHAPTER 83-RETIREMENT
(B) the final basic pay of the appointive position of a
former Member who elects to have his annuity computed or
recomputed under section 8344(b) (1) of this title.
(g) The annuity of an employee or Member retiring under section
SUBCHAPTER III-CIVIL SERVICE RETIREMENT
8337 of this title is at least the smaller of-
*
(1) 40 percent of his average pay; or
(2) the sum obtained under subsections (a)-(c) of this section
§ 8339. Computation of annuity
after increasing his service of the type last performed by the
(a) Except as otherwise provided by this section, the annuity of
period elapsing between the date of separation and the date he
an employee retiring under this subchapter is-
becomes 60 years of age.
(1) 1½ percent of his average pay multiplied by SO much of his
(h) The annuity computed under subsections (a), (b), and (f) of
total service as does not exceed 5 years; plus
this section for an employee retiring under section 8336 (d) of this
(2) 13/4 percent of his average pay multiplied by SO much of his
title is reduced by 1/6 of 1 percent for each full month the employee is
total service as exceeds 5 years but does not exceed 10 years; plus
under 55 years of age at the date of separation. The annuity computed
(3) 2 percent of his average pay multiplied by SO much of his
under subsections (c) and (f) of this section for a Member retiring
total service as exceeds 10 years.
under the second or third sentence of section 8336 (g) of this title or
However, when it results in a larger annuity, 1 percent of his average
the third sentence of section 8338 (b) of this title is reduced by 1/12 of
pay plus $25 is substituted for the percentage specified by paragraph
1 percent for each full month not in excess of 60 months, and 1/6 of 1
(1), (2), or (3) of this subsection, or any combination thereof.
percent for each full month in excess of 60 months, the Member is
(b) The annuity of a Congressional employee, or former Congres-
under 60 years of age at the date of separation.
sional employee, retiring under this subchapter is computed under
(i) The annuity computed under subsections (a)-(h) of this
subsection (a) of this section, except, if he has had-
section is reduced by 10 percent of a deposit described by section
(1) at least 5 years' service as a Congressional employee or
8334(c) of this title remaining unpaid, unless the employee or Mem-
Member or any combination thereof; and
ber elects to eliminate the service involved for the purpose of annuity
(2) deductions withhheld from his pay or has made deposit cov-
computation.
ering his last 5 years of civilian service;
[(j) The annuity computed under subsections (a)-(i) of this sec-
his annuity is computed, with respect to his service as a Congressional
tion for a married employee or Member retiring under this subchap-
employee, his military service not exceeding 5 years, and any Member
ter, or any portion of that annuity designated in writing for the pur-
service, by multiplying 21/2 percent of his average pay by the years
pose of section 8341 (b) of this title by the employee or Member at
of that service.
the time of retirement, is reduced by 2½ percent of SO much thereof
(c) The annuity of a Member, or former Member with title to
as does not exceed $3,600 and by 10 percent of SO much thereof as
Member annuity, retiring under this subchapter is computed under
exceeds $3,600, unless the employee or Member notifies the Civil Serv-
subsection (a) of this section, except, if he has had at least 5 years'
ice Commission in writing at the time of retirement that he does not
service as a Member or Congressional employee or any combination
desire any spouse surviving him to receive an annuity under section
thereof, his annuity is computed with respect to—
8341 (b) of this title.]
(1) his service as a Member and SO much of his military serv-
[(k) (1): (j) (1) At the time of retiring under section 8336 or 8338
ice as is creditable for the purpose of this paragraph; and
of this title, an unmarried employee or Member who is found to be in
(2) his Congressional employee service;
good health:by the Commission may elect a reduced annuity instead of
by multiplying 21/2 percent of his average pay by the years of that
an annuity computed under subsections (a)-(i) of this section and
service.
name in writing an individual having an insurable interest in the em-
ployee or Member to receive an annuity under section 8341 (c) of this
H. Rept. 93-915-3
18
19
title after the death of the retired employee or Member. The annuity
(1) "spouse" means the surviving wife or husband of any em-
of the employee or Member making the election is reduced by 10 per-
ployee, M ember, or annuitant who-
cent, and by 5 percent for each full 5 years the individual named is
(A) was married to the employee, Member, or annuitant
younger than the retiring employee or Member. However, the total
for at least 1 year immediately before the death of the em-
reduction may not exceed 40 percent.
ployee, Member, orannuitant; or
(2) An employee or Member, who [is unmarried] at the time of
(B) is the parent of issue by that marriage; and
retiring under [a provision of law which permits election of a reduced
[3] (2) "child" means—
annuity with a survivor annuity payable to his spouse and who] sec-
(A) an unmarried child under 18 years of age, including
tion 8336 or 8338 of this title elects a reduced annuity under paragraph
(i) an adopted child, and (ii) a stepchild or recognized nat-
(1) of this subsection and later marries, may irrevocably elect, in a
ural child who lived with the employee or Member in a reg-
signed writing received in the Commission within 1 year after [he
ular parent-child relationship, and (iii) a child who lived
marries, a reduction in his current annuity as provided in subsection
with and for whom a petition of adoption was filed by an
(j)] the marriage, and annuity computed under sections (a)-(i) of
employee or Member, and who is adopted by the surviving
this section. [His reduced annuity is effective the first day of the month
spouse of the employee or Member after his death;
after his] Such latter annuity is effective the first day of the month
(B) such unmarried child regardless of age who is inca-
after such elections is received in the Commission. The election voids
pable of self-support because of mental or physical disability
prospectively any election previously made under paragraph (1) of
incurred before age 18; or
this subsection.
(C) such unmarried child between 18 and 22 years of age
[(1)] (k) The annuity computed under subsections (a)-[(k)] (j)
who is a student regularly pursuing a full-time course of study
of this section for an employee who is a citizen of the United States is
or training in residence in a high school, trade school, tech-
increased by $36 for each year of service in the employ of-
nical or vocational institute, junior college, college, university,
(1) the Alaska Engineering Commision, or The Alaska Rail-
or comparable recognized educational institution.
road, in Alaska between March 12, 1914, and July 1, 1923; or
For the purpose of this paragraph and subsection (e) of this sec-
(2) The Isthmian Canal Commision, or the Panama Railroad
tion, a child whose 22nd birthday occurs before July 1 or after
Company on the Isthmus of Panama between May 4, 1904, and
August 31 of a calendar year, and while he is regularly pursuing
April 1. 1914.
such a course of study or training, is deemed to have become 22
[(m)] (l) In determining service for the purpose of computing an
years of age on the first day of July after that birthday. A child
annuity under each paragraph of this section, 45 per centum of each
who is a student is deemed not to have ceased to be a student during
year, or fraction thereof, of service referred to in section 8332 (b) (6)
an interim between school years if the interim is not more than
which was performed prior to the effective date of the National Guard
5 months and if he shows to the satisfaction of the Civil Service
Technicians Act of 1968 shall be disregarded.
Commission that he has a bona fide intention of continuing to
[(n)] (m) In computing any annuity under subsections (a)-(e) of
pursue a course of study or training in the same or different school
this section, the total service of an employee who retires on an imme-
during the school semester (or other period into which the school
diate annuity or dies leaving a survivor or survivors entitled to annu-
year is divided) immediately after the interim.
ity includes, without regard to the limitations imposed by subsection
[(b) (1) Except as provided in paragraph (2) of this subsection,
(f) of this section, the days of unused sick leave to his credit under a
if an employee or Member dies after having retired under this sub-
formal leave system, except that these days will not be counted in
chapter and is survived by a spouse to whom he was married at the
determining average pay or annuity eligibility under this subchapter.
time of retirement, or by a widow or widower whom he married after
retirement, the spouse, widow, or widower is entitled to an annuity
8341. Survivor annunities
equal to 55 percent, or 50 percent if retired before October 11 1962,
of an annuity computed under section 8339(a)-(i) of this title as
(a) For the purpose of this section-
may apply with respect to the annuitant, or of such portion thereof
[(1) "widow" means the surviving wife of an employee or
as may have been designated for this purpose under section 8339 (j)
Member who—
of this title, unless the employee or Member has notified the Commis-
[(A) was married to him for at least 2 years immediately
sion in writing at the time of retirement that he does not desire any
before his death; or
[(B) is the mother of issue by that marriage;
spouse surviving him to receive his annuity.
[(2) "widower" means the surviving husband of an employee
[(2) If an annuitant-
or Member who-
[(A) who retired before April 1, 1948; or
[(A) was married to her for at least 2 years immediately
[(B) who elected a reduced annuity provided in paragraph
before her death; or
(2) of section 8339 (k) of this title;
[(B) is the father of issue by that marriage; and]
dies and is survived by a widow or widower, the widow or widower is
entitled to an annuity in an amount which would have been paid had
20
21
the annuitant been married to the widow or widower at the time of
serving, in an appointive or elective position, his service on and after
retirement.]
the date he was or is SO employed is covered by this subchapter. Deduc-
(b) (1) When an annuitant, except an annuitant who did not elect
tions for the Fund may not be withheld from his pay. An amount
an annuity as provided in paragraph (2) of section 8339(j) of this
equal to the annuity allocable to the period of actual employment
title, dies and is survived by a spouse, the spouse is entitled to an
shall be deducted from his pay, except for lump-sum leave payment
annuity equal to 55 percent of an annuity computed under section
purposes under section 5551 of this title. If the annuitant serves on a
8339(a)-(i) of this title as may apply with respect to the annuitant.
full-time basis, except as President, for at least 1 year in employment
[(8)] (2) A spouse acquired after retirement is entitled to a sur-
not excluding him from coverage under section 8331 (1) (i) or (ii) of
vivor annuity under this subsection only upon electing this annuity
this title-
instead of any other survivor benefit to which he may be entitled under
(A) his annuity on termination of employment is increased by
this subchapter or another retirement system for Government em-
an annuity computed under section 8339 (a), (b), (d), (e), (h),
ployees. The annuity of the spouse [, widow, or widower under this
and (i) of this title as may apply based on the period of employ-
subsection commences on the day after the annuitant dies. This annuity
ment and the basic pay, before deduction, averaged during that
and the right thereto terminate on the last day of the month before
employment; and
the spouse [, widow, or widower]-
(B) his lump-sum credit may not be reduced by annuity paid
(A) dies; or
during that employment.
(B) remarries before becoming 60 years of age.
[If the annuitant is receving a reduced annuity as provided in section
(c) The annuity of a survivor named under section [8339 (k):
8339 or section 8339 (k) (2) of this title, the increase in annuity
8339(j) (1) of this title is 55 percent of the reduced annuity of the
payable under subparagraph (A) of this subsection is reduced by 10
retired employee or Member. The annuity of the survivor commences
percent and the survivor annuity payable under section 8341 (b) of this
on the day after the retired employee or Member dies. This annuity
title is increased by 55 percent of the increase in annuity payable under
and the right thereto terminate on the last day of the month before
such subparagraph (A), unless, at the time of claiming the increase
the survivor dies.
payable under such subparagraph (A), the annuitant notifies the
(d) If an employee or Member dies after completing at least 18
Commission in writing that he does not desire the survivor annuity to
months of civilian service, his [widow or widower] spouse is entitled
be increased. When an annuity is increased under subparagraph (4)
to an annuity equal to 55 percent of an annuity computed under
of this subsection, then the survivor annuity payable under section
section 8339(a)-(f) and (i) of this title as may apply with respect to
8341 (b) of this title is increased by 55 percent of that increase payable
the employee or Member, except that, in computation of the annuity
under such subparagraph (A). If the annuitant dies while still re-
under such section, the annuity of the employee or Member shall be
employed, the survivor annuity payable is increased as though the
at least the smaller of-
reemployment had otherwise terminated. If the annuitant dies while
(1) 40 percent of his average pay; or
still reemployed and the described reemployment had continued for at
(2) the sum obtained under such section after increasing his
least 5 years, the person entitled to survivor annuity under section
service of the type last performed by the period elapsing between
8341 (b) of this title may elect to deposit in the Fund and have his
the date of death and the date he would have become 60 years of
rights redetermined under this subchapter.
age.
The annuity of the [widow or widower] spouse commences on the day
after the employee or Member dies. This annuity and the right thereto
terminate on the last day of the month before the [widow or widower]
spouse-
(A) dies; or
(B) remarries before becoming 60 years of age.
§ 8344. Annuities and pay on reemployment
(a) If an annuitant receiving annuity from the Fund, except-
(1) a disability annuitant whose annuity is terminated because
of his recovery or restoration of earning capacity;
(2) an annuitant whose annuity is based on an involuntary
separation from the service other than an automatic separation;
or
(3) a Member receiving annuity from the Fund;
becomes employed after September 30, 1956, or on July 31, 1956, was
93D CONGRESS
HOUSE OF REPRESENTATIVES
REPORT
2d Session
No. 93-1431
SURVIVING SPOUSE ANNUITIES
OCTOBER 7, 1974.-Ordered to be printed
Mr. DULSKI, from the committee of conference,
submitted the following
CONFERENCE REPORT
[To accompany S. 628]
The committee of conference on the disagreeing votes of the two
Houses on the amendments of the House to the bill (S. 628) to amend
chapter 83 of title 5, United States Code, to eliminate the annuity re-
duction made, in order to provide a surviving spouse with an annuity,
during periods when the annuitant is not married, having met, after
full and free conference, have agreed to recommend and do recommend
to their respective Houses as follows:
That the Senate recede from its disagreement to the amendment of
the House to the text of the bill and agree to the same with an amend-
ment as follows:
In lieu of the matter proposed to be inserted by the House amend-
ment insert the following:
That section 8339 (j) of title 5, United States Code, is amended by
adding at the end thereof the following : " An annuity which is reduced
under this subsection or any similar prior provision of law shall, for
each full month during which a retired employee or Member is not
married, be recomputed and paid as if the annuity had not been so
reduced. Upon remarriage of the retired employee or Member, the
annuity shall be reduced by the same percentage reductions which
were in effect at the time of retirement.".
Sec. 2. The amendment made by this Act shall apply to annuities
which commence before, on, or after the date of enactment of this Act,
but no increase in annuity shall be paid for any period prior to the first
day of the first month which begins on or after the date of enactment
of this Act.
38-006
2
And the House agree to the same.
That the House recede from its amendment to the title of the bill.
THADDEUS J. DULSKI,
DAVID N. HENDERSON,
DOMINICK V. DANIELS,
JEROME R. WALDIE,
JOINT EXPLANATORY STATEMENT OF THE
LAWRENCE J. HOGAN,
COMMITTEE OF CONFERENCE
Managers on the Part of the House.
GALE W. McGEE,
The managers on the part of the House and the Senate at the con-
QUENTIN BURDICK,
ference on the disagreeing votes of the two Houses on the amendments
TED STEVENS,
of the House to the bill (S. 628) to amend chapter 83 of title 5, United
Managers on the Part of the Senate,
States Code, to eliminate the annuity reduction made, in order to pro-
vide a surviving spouse with an annuity, during periods when the
annuitant is not married, submit the following joint statement to the
House and the Senate in explanation of the effect of the action agreed
upon by the managers and recommended in the accompanying con-
ference report:
The House amendments struck out all of the Senate bill after the
enacting clause and inserted a substitute text and provided a new
title for the Senate bill, and the Senate disagreed to the House amend-
ments.
The committee of conference recommends that the Senate recede
from its disagreement to the amendment of the House to the text of
the bill, with an amendment to the text of the bill. The committee of
conference also recommends that the House recede from its amendment
to the title of the bill.
The differences between the text of the Senate bill, the House
amendment, and the amendment agreed to in conference are noted
below.
ELIMINATION OF ANNUITY REDUCTION FOR SURVIVING SPOUSE
ANNUITY PURPOSES
SENATE BILL
The first section of the Senate bill amended section 8339 (j) of title
5, United States Code, SO as to eliminate for any month during which
an annuitant is not married the reduction in annuity that a retiring
employee or Member accepts upon retirement in order to provide
survivor benefits for his or her spouse. If the annuitant subsequently
remarried, his or her annuity again would have been reduced in accord-
ance with the percentage reductions specified in section 8339(j).
HOUSE AMENDMENT
Subsection (a) of the first section of the House amendment repealed
section 8339 (j) of title 5, United States Code. The effect of repealing
section 8339 (j) would have been to eliminate from the law those pro-
visions which now require a reduction in the annuity of a retiring
employee or Member who desires to provide an annuity for his or her
surviving spouse and those provisions which now permit a retiring
employee or Member to deny his or her spouse entitlement to a sur-
(3)
H.R. 1431
H.R. 1431
4
5
vivor annuity. Thus, an automatic annuity would have been provided
provided that no annuity or annuity increase resulting from the appli-
for a surviving spouse without any reduction in the retiring em-
cation of that section shall be paid for any period before the date of
ployee's annuity.
enactment of the Act, or the commencing date of annuity, whichever
Subsection (b) of the first section of the House amendment amended
is later.
section 8341 (a) of title 5 by eliminating the definitions of the terms
CONFERENCE SUBSTITUTE
"widow and widower" and substituting in lieu thereof a definition of
the term "spouse". The effect of the House amendment would have
The conference substitute provides that the amendment made by the
been to require any surviving spouse of an employee, Member. or an-
Act shall apply to any annuity, regardless of its commencing date, but
nuitant, including a spouse to whom an annuitant was married at the
no increase in such annuity resulting from the application of the
time of retirement, to have been married to the employee. Member, or
amendment shall be paid for any month commencing prior to the
annuitant for at least one year immediately before the death of the
date of enactment of the Act.
employee, Member, or annuitant. or to be the parent of issue by that
THADDEUS J. DULSKI,
marriage, in order to be eligible for entitlement to a survivor annuity.
DAVID N. HENDERSON,
The first section of the House bill also contained numerous conform-
DOMINICK V. DANIELS,
ing amendments to the retirement provisions of title 5 which were
JEROME R. WALDIE,
necessitated by the two substantive amendments discussed above.
LAWRENCE J. HOGAN,
Managers on the Part of the House.
CONFERENCE SUBSTITUTE
GALE W. McGEE,
QUENTIN BURDICK,
The conference substitute is substantially the same as the Senate bill
TED STEVENS,
in that it eliminates the annuity reduction for surviving spouse bene-
Managers on the Part of the Senate.
fits only for months during which the annuitant is not married. How-
ever, the substitute provides that upon remarriage of the retired em-
ployee or Member, his or her annuity shall be reduced by the same
percentage reductions which were in effect at the time of retirement.
This provision takes cognizance of the fact that annuitants who re-
tired prior to October 11, 1962, were subject to higher reduction rates
for survivor annuity purposes. The conferees agreed that the annuity
of a retiree who remarries after having his or her annuity restored to
the full single-life rate should again be reduced by the same percent-
age formula that was in effect at the time of his or her retirement.
EFFECTIVE DATE
SENATE BILL
Section 2 of the Senate bill provided that the amendment made by
the first section of the bill shall apply only with respect to monthly
payments of annuities that are paid for any month commencing on or
after the date of enactment of the Act. Thus, the amendment would
be applicable to any annuity, regardless of its commencing date, but
no increase in such annuity resulting from the application of the
amendment would be paid for any month commencing prior to the
date of enactment.
HOUSE AMENDMENT
Section 2 of the House amendment provided for the recomputation
of annuities of present retirees and surviving spouses in accordance
with the amendments made by the first section of the House amend-
ment. In addition, annuities were provided for the spouses of retirees
who did not have the opportunity or failed to provide annuities for
their surviving spouses. Section 2 of the House amendment further
H.R. 1431
H.R. 1431
93D CONGRESS
SENATE
REPORT
2d Session
No. 93-1241
SURVIVING SPOUSE ANNUITIES
OCTOBER 7, 1974.-Ordered to be printed
Mr. McGEE, from the committee of conference,
submitted the following
CONFERENCE REPORT
[To accompany S. 628]
The committee of conference on the disagreeing votes of the two
Houses on the amendments of the House to the bill (S. 628) to amend
chapter 83 of title 5, United States Code, to eliminate the annuity
reduction made, in order to provide a surviving spouse with an
annuity, during periods when the annuitant is not married, having
met, after full and free conference, have agreed to recommend and
do recommend to their respective Houses as follows:
That the Senate recede from its disagreement to the amendment of
the House to the text of the bill and agree to the same with an amend-
ment as follows:
In lieu of the matter proposed to be inserted by the House amend-
ment insert the following:
That section 8339 (j) of title 5, United States Code, is amended by
adding at the end thereof the following: "An annuity which as
reduced under this subsection or any similar prior provision of law
shall, for each full month during which a retired employee or Member
is not married, be recomputed and paid as if the annuity had not been
so reduced. U pon remarriage of the retired employee or Member, the
annuity shall be reduced by the same percentage reductions which
were in effect at the time of retirement.".
SEC. 2. The amendment made by this Act shall apply to annuities
which commence before, on, or after the date of enactment of this
Act. but no increase in annuity shall be paid for any period prior
to the first day of the first month which begins on or after the date of
enactment of this Act.
And the House agree to the same.
38-010
2
That the House recede from its amendment to the title of the bill.
GALE W. McGEE,
QUENTIN BURDICK,
TED STEVENS,
Managers on the Part of the Senate.
THADDEUS J. DULSKI,
JOINT EXPLANATORY STATEMENT OF THE
DAVID N. HENDERSON,
COMMITTEE OF CONFERENCE
DOMINICK V. DANIELS,
JEROME R. WALDIE,
The managers on the part of the House and the Senate at the con-
LAWRENCE J. HOGAN,
ference on the disagreeing votes of the two Houses on the amendments
Managers on the Part of the House.
of the House to the bill (S. 628) to amend chapter 83 of title 5, United
States Code, to eliminate the annuity reduction made, in order to pro-
vide a surviving spouse with an annuity, during periods when the
annuitant is not married, submit the following joint statement to the
House and the Senate in explanation of the effect of the action agreed
upon by the managers and recommended in the accompanying con-
ference report:
The House amendments struck out all of the Senate bill after the
enacting clause and inserted a substitute text and provided a new title
for the Senate bill, and the Senate disagreed to the House amend-
ments.
The committee of conference recommends that the Senate recede
from its disagreement to the amendment of the House to the text of
the bill, with an amendment to the text of the bill. The committee of
conference also recommends that the House recede from its amend-
ment to the title of the bill.
The differences between the text of the Senate bill, the House amend-
ment, and the amendment agreed to in conference are noted below.
ELIMINATION OF ANNUITY REDUCTION FOR SURVIVING SPOUSE
ANNUITY PURPOSES
Senate Bill
The first section of the Senate bill amended section 8339 (j) of title
5, United States Code, SO as to eliminate for any month during which
an annuitant is not married the reduction in annuity that a retiring
employee or Member accepts upon retirement in order to provide sur-
vivor benefits for his or her spouse. If the annuitant subsequently re-
married, his or her annuity again would have been reduced in accord-
ance with the percentage reductions specified in section 8339(j).
House Amendment
Subsection (a) of the first section of the House amendment repealed
section 8339 (j) of title 5, United States Code. The effect of repealing
section 8339 (j) would have been to eliminate from the law those pro-
visions which now require a reduction in the annuity of a retiring
employee or Member who desires to provide an annuity for his or her
surviving spouse and those provisions which now permit a retiring
employee or Member to deny his or her spouse entitlement to a sur-
vivor annuity. Thus, an automatic annuity would have been provided
for a surviving spouse without any reduction in the retiring employ-
ee's annuity.
(3)
S.R. 1241
S.R. 1241
4
5
Subsection (b) of the first section of the House amendment amended
Conference Substitute
section 8341 (a) of title 5 by eliminating the definitions of the terms
The conference substitute provides that the amendment made by
"widow and widower" and substituting in lieu thereof a definition
the Act shall apply to any annuity, regardless of its commencing date,
of the term "spouse". The effect of the House amendment would
but no increase in such annuity resulting from the application of the
have been to require any surviving spouse of an employee, Member,
amendment shall be paid for any month commencing prior to the
or annuitant, including a spouse to whom an annuitant was married
date of enactment of the Act.
at the time of retirement, to have been married to the employee,
member. or annuitant for at least one year immediately before the
GALE W. McGEE,
death of the employee, Member, or annuitant. or to be the parent of
QUENTIN BURDICK,
issue by that marriage, in order to be eligible for entitlement to a
TED STEVENS.
survivor annuity.
Managers on the Part of the Senate.
The first section of the House bill also contained numerous con-
THADDEUS J. DULSKI,
forming amendments to the retirement provisions of title 5 which
DAVID N. HENDERSON,
were necessitated by the two substantive amendments discussed above.
DOMINICK V. DANIELS,
Conference Substitute
JEROME R. WALDIE,
LAWRENCE J. HOGAN,
The conference substitute is substantially the same as the Senate
bill in that it eliminates the annuity reduction for surviving spouse
Managers on the Part of the House.
benefits only for months during which the annuitant is not married.
However, the substitute provides that upon remarriage of the retired
employee or Member, his or her annuity shall be reduced by the same
percentage reductions which were in effect at the time of retirement.
This provision takes cognizance of the fact that annuitants who retired
prior to October 11, 1962, were subject to higher reduction rates for
survivor annuity purposes. The conferees agreed that the annuity
of a retiree who remarries after having his or her annuity restored to
the full single-life rate should again be reduced by the same percent-
age formula that was in effect at the time of his or her retirement.
EFFECTIVE DATE
Senate Bill
Section 2 of the Senate bill provided that the amendment made by
the first section of the bill shall apply only with respect to monthly
payments of annuities that are paid for any month commencing on
or after the date of enactment of the Act. Thus, the amendment would
be applicable to any annuity, regardless of its commencing date, but
no increase in such annuity resulting from the application of the
amendment would be paid for any month commencing prior to the
date of enactment.
House Amendment
Section 2 of the House amendment provided for the recomputation
of annities of present retirees and surviving spouses in accordance with
the amendments made by the first section of the House amendment. In
addition, annuities were provided for the spouses of retirees who did
not have the opportunity or failed to provide annuities for their sur-
viving spouses. Section 2 of the House amendment further provided
that no annuity or annuity increase resulting from the application of
that section shall be paid for any period before the date of enactment
of the Act, or the commencing date of annuity, whichever is later.
S.R. 1241
S.R. 1241
S. 628
Ainety-third Congress of the United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday, the twenty-first day of January,
one thousand nine hundred and seventy-four
An Act
To amend chapter 83 of title 5, United States Code, to eliminate the annuity
reduction made, in order to provide a surviving spouse with an annuity, during
periods when the annuitant is not married.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That section 8339 (j)
of title 5, United States Code, is amended by adding at the end thereof
the following: "An annuity which is reduced under this subsection
or any similar prior provision of law shall, for each full month dur-
ing which a retired employee or Member is not married, be recomputed
and paid as if the annuity had not been SO reduced. Upon remarriage
of the retired employee or Member, the annuity shall be reduced by
the same percentage reductions which were in effect at the time of
retirement.".
SEC. 2. The amendment made by this Act shall apply to annuities
which commence before, on, or after the date of enactment of this
Act, but no increase in annuity shall be paid for any period prior to
the first day of the first month which begins on or after the date of
enactment of this Act.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
HI
October 17, 1974
Dear Mr. Director:
The following bills were received at the White House on
October 17th:
S.J. Res. 236
S. 2840
H.R. 7768
H.R. 14225
S.J. Res. 250
S. 3007
H.R. 7780
H.R. 14597
S.J. Res. 251
S. 3234
H.R. 11221
H.R. 15148
S. 355
S. 3473
H.R. 11251
H.R. 15427
S. 605
S. 3698
H.R. 11452
H.R. 15540
S. 628
S. 3792
H.R. 11830!
H.R. 15643
S. 1411
S. 3838
H.R. 12035
H.R. 16857
S. 1412
S. 3979
H.R. 12281
H.R. 17027
S. 1769
H.R. 6624
H.R. 13561
S. 2348
H.R. 6642
H.R. 13631
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 Roy L. Ash
Director
Office of Management and Budget
Washington, D. C.