Seventh, it will provide increased minimum annual annuities for child survivors of deceased teachers or teacher retirees. The increases recommended for child survivors when there is a surviving spouse are an annual minimum of (a) $900, from $600, a year, or (b) 60 percent, from 40 percent, of the average salary divided by the number of children, or (c) $2,700, from $1,800, divided by the number of children, whichever is less.

The annual benefits for child survivors when the employee is not survived by a spouse would also be increased, to: (a) 75 percent of the average pay of the employee, divided by the number of children; or (b) $1,080; or (c) $3,240, divided by the number of children, whichever is less. Existing law allows a benefit of $720 a year, or 50 percent of the employee's average salary, divided by the number of children, or $2,100 a year, divided by the number of children, whichever is less. The increases proposed to this bill are more consistent with present-day economic conditions.

Eighth, it will eliminate the requirement that a child must receive more than one-half his support from the deceased parent in order to receive a survivor's annuity.

The requirement that a child must have received more than one-half his support from the deceased parent in order to receive a survivor annuity was eliminated from the Civil Service Retirement Act by Public Law 89-504. Public Law 90-231 was designated to grant Teachers' Retirement Act personnel the same benefits as granted civil service personnel by Public Law 89-504. Unfortunately, the provision regarding the 50-percent requirement apparently was overlooked at that time. Since this was an obvious oversight, we believe that it should be eliminated.

Ninth, it will increase the survivorship annuity of widows, widowers, and dependent widowers of teachers who died or retired prior to October 24, 1962, the effective date of Public Law 87-881, from 50 to 55 percent.

Survivors of employees under the Teachers' Retirement Act who retired or died prior to October 24, 1962, received only 50 percent of the employee's annuity, while both survivors of teachers who retired after that date and survivors of all Federal and District civil service retirees receive 55 percent of such annuities. I shall attempt to explain the history of this inequity.

Prior to 1962, the survivors of both teachers and civil service retirees were entitled to receive an annuity equal to 50 percent of the employee's annuity. However, in 1962, the percentage for survivorships was raised from 50 to 55 percent for the civil service system and for the teachers' retirement system. This was accomplished for the civil service system by an act of Congress, approved October 11, 1962, and for the District of Columbia Teachers' retirement system by Public Law 89-881, approved October 24, 1962. Neither of these amendments was made retroactive at that time, thus both groups of survivors of annuitants retiring before the enactment of these laws were still limited to 50 percent of the annuity.

However, Public Law 89-504, approved July 18, 1966, increased the survivorships of civil service annuitants who had retired before October 11, 1962, by 10 percent. This was equivalent to increasing the maximum percentage of annuities for survivors from 50 to 55 percent.

Public Law 90-821, approved December 29, 1967, was modeled after the benefits provided civil service annuitants in Public Law 89-504. However, the teachers' retirement amendments did not include a provision similar to the one I just discussed.

Therefore, while survivors of civil service retirees are eligible to receive a maximum of 55 percent of the employee's annuity, regardless of when the employee retired, and surivivors of teachers who retired after October 24, 1962, enjoy the same benefits, the survivors of teachers who retired before October 24, 1962, are singularly excluded from this 5-percent increase benefit. This, in our judgment, should be corrected in H.R. 15980.

Tenth, the bill authorizes an increase in the employee's contribution from 6.5 to 7 percent. This is the same employee contribution increase as contained in Public Law 91-93 for civil service employees. As H.R. 15980 is patterned after civil service benefits, the increase is fair in light of the similar benefits to be provided.

Eleventh, it will authorize creditable service for retirement purposes for periods of authorized leave without pay for teachers serving as officers of employee organizations. A similar provision was included in the Civil Service Retirement Act in 1965, title V, section 503, Public Law 89-504, approved July 18, 1965.

However, presently there is no such provision for teachers serving as officers of employee organizations. Under the language of this bill, teachers may count as creditable service for retirement purposes all periods of authorized leave without pay while serving as officers of employee organizations. Such employees of the board of education would be required, of course, to pay the entire cost of that part of their annuities accruing from that period of creditable service, as required of employees under the civil service retirement system under these same circumstances.

We see no reason why our teachers should not have this same benefit already afforded civil service employees.

Twelfth, it will modify the formula for the District of Columbia government's annual contribution to the District of Columbia teachers retirement fund.

This provision was included in the bill by the House upon the recommendation of the Bureau of the Budget and the Mayor. It is my understanding that the chief advantage of this provision is that it allows some District funds which otherwise would simply accumulate in the retirement fund to be used for pressing current programs in the District of Columbia.

I am informed that this provision is not based on a similar provision in the Civil Service Retirement Act. However, we have been assured that the reduced funding level is a safe one. As an added safety feature, I am advised that the provision contains language stipulating that in the case of an emergency, the teachers' retirement fund would have a claim on District of Columbia revenues.

We are also mindful that the enactment of this legislation will simply give legislative sanction to the formula which has been in use for the past several years through permission of the Appropriation Committees of Congress.

Therefore, in the light of these assurances, we offer no objection to this provision.

Mr. Chairman, we are aware that the recent Civil Service Retirement Act amendments make retroactive certain remarriage provisions of widows of Federal and District civil service employees who died or retired before July 18, 1966, and who remarry on or after that date. I am informed by District officials that, under the teachers' retirement law, our teachers are entitled to this benefit; therefore, similar provisions are not necessary in this bill.

We strongly favor the benefits provided in H.R. 15980. All the benefits in this bill are ones which classified employees in the Federal and District Governments already enjoy. Thus, not only are we supportive of the benefits proposed here this morning on their own merits, but we are also supportive of the proposed benefits because of the accepted policy of keeping teacher retirement benefits at least equal to those of Federal and District classified personnel.

We therefore strongly urge that H.R. 15980 be favorably approved by Congress as soon as possible in order that the comparability of benefits be maintained between the two retirement systems.

Permit me to thank you for letting me make this statement this morning in behalf of the bill to amend the Retirement Act.

Senator EAGLETON. Thank you very much, Mrs. Allen. We appreciate your thorough statement, which spells out the history of the legislation and the need thereof.

Dr. Henley, do you have anything you wish to add?

STATEMENT OF DR. BENJAMIN J. HENLEY, ACTING SUPERINTENDENT OF SCHOOLS

Dr. HENLEY. I have prepared an overall statement which would just be an amendment to Mrs. Allen's. I would just like to submit that. Senator EAGLETON. Fine. It will be made a part of the record. Thank you very much.

(The prepared statement of Dr. Benjamin Henley is as follows:)

PREPARED STATEMENT OF Dr. Benjamin J. HENLEY, Acting SuperinTENDENT OF SCHOOLS

Mr. Chairman and Members of the Subcommittee, we appreciate the opportunity to appear before you this morning on behalf of H.R. 15980, a bill liberalizing the Teachers' Retirement Act.

We appreciate, Mr. Chairman, the concern and assistance you have demonstrated with regard to teacher retirement legislation by scheduling a hearing this morning.

Mr. Chairman, the teachers' retirement legislation being dicussed here this morning is extremely important to our Teachers' Retirement Act personnel. Too often we stress starting and maximum salaries in considering benefits our employees earn and do not pay as much attention as we should to the overall financial security of our employees and their families. This bill though it does not go as far as employee groups advocate, is a progressive step toward providing more humane benefits for an annuitant and his survivors. Our employees, after serving years of very demanding and dedicated public service should be allowed to retire with a sufficient retirement annuity to live without the constant threat of being unable to meet the costs of the necessities of life. Our employees should have the assurance and confidence that should they die, their surviving dependents will be able to live in at least a very modest way. This bill would provide increased benefits for the annuitant and his survivors which in our judgment merit your approval. We also believe that unless our Teachers' Retirement Act employees receive retirement benefits equal to those provided Civil Service Retirement Act employees, there is a serious possibility that our employees may transfer to positions to which the Civil Retirement Service Act applies. This could mean that our

public school system will lose some of its most experienced teachers for reasons which one could not help but have some sympathy.

Without the enactment of the bill, we believe that teacher morale will further suffer. We would like to emphasize the fact that our temporary teachers are covered under the Civil Service Retirement Act and our permanent teachers under the Teachers' Retirement Act. Currently, the Civil Service Retirement provisions are considerably more liberal than those of the Teachers' Retirement Act. You can well imagine the morale problem this is causing for our permanent teachers staff.

The retirement inequity is aggravated by the fact that Civil Service personnel in our school system have received a substantial increase in salary in addition to liberalized retirement provisions while teachers have received no salary increase and with the exception of the temporary employees, no increased retirement benefits.

For the reasons I have just given and the justifications contained in Mrs. Allen's testimony, the school administration strongly urges the adoption of the bill. The benefits provided in this bill are no more than those currently enjoyed by Civil Service Retirement Act personnel. We are most desirous that Congressional action be completed on this legislation as soon as possible.

Senator EAGLETON. The District of Columbia representatives, we have about six or seven names on the list, if they will come forward? Mr. Moyer, Assistant Corporation Counsel.

STATEMENT OF THOMAS F. MOYER, ASSISTANT CORPORATION COUNSEL, DISTRICT OF COLUMBIA GOVERNMENT; ACCOMPANIED BY CEDRIC KROLL, GOVERNMENT ACTUARY, DEPARTMENT OF THE TREASURY; DONALD WEINBERG, CHIEF, PAY SYSTEMS AND LABOR RELATIONS DIVISION, DISTRICT OF COLUMBIA PERSONNEL OFFICE; STANLEY EHRLICH, DISTRICT OF COLUMBIA PERSONNEL OFFICE; JOSEPH D. HALEY, CHIEF, RESOURCES AND FINANCIAL MANAGEMENT SYSTEMS DEVELOPMENT, OFFICE OF BUDGET AND EXECUTIVE MANAGEMENT; ORESTE F. MALTOGLIATI, CHIEF, ACCOUNTING DIVISION, DISTRICT OF COLUMBIA FINANCE OFFICE; AND JORIER H. YOST, SUPERVISOR, PAYROLL AND RETIREMENT SECTION, ACCOUNTING DIVISION, DISTRICT OF COLUMBIA FINANCE OFFICE

Mr. MOYER. Mr. Chairman, I am accompanied by a representative of the Treasury Department and several representatives of the District government who will be available to answer specific questions relating to the provisions of the bill and its estimated costs.

These representatives are Mr. Cedric Kroll, government actuary of the Department of the Treasury; Mr. Donald Weinberg, Chief of the Pay Systems and Labor Relations Division of the Personnel Office; Mr. Stanley Ehrlich of the Personnel Office; Mr. Joseph D. Haley, Chief, Resources and Financial Management Systems Development of the Office of Budget and Executive Management; Mr. Oreste F. Maltogliati, Chief of the Accounting Division of the Finance Office; and Mr. Jorier H. Yost, Supervisor of the Payroll and Retirement Section of the Accounting Division of the Finance Office.

The report of the Assistant to the Commissioner to the chairman of the committee, dated March 13, 1970, recognizes that the primary purpose of this bill is to conform the legislation for the retirement of District of Columbia public school teachers more closely to civil service retirement legislation. The Commissioner notes that teachers'

retirement legislation was initially patterned after civil service retirement legislation and that Congress has consistently maintained comparability in benefits of Government employees and teachers in amendments to these respective pieces of legislation. The Commissioner supports this comparability and accordingly recommends the enactment of this bill.

Mr. Chairman, I might say here that the next couple of pages of my statement are a summarization of the provisions of the bill, which has already been well done by Mrs. Allen.

Senator EAGLETON. Your full prepared statement will be included in the record, as submitted, and you may add to it as you desire.

(The prepared statement of Mr. Thomas F. Moyer is as follows:) PREPARED STATEMENT OF THOMAS F. MOYER, Assistant CorpORATION COUNSEL, DISTRICT OF COLUMBIA GOVERNMENT

Mr. Chairman, I am accompanied by a representative of the Treasury Department and several representatives of the District Government who will be available to answer specific questions relating to the provisions of the bill and its estimated costs. These representatives are Mr. Cedric Kroll, Government Actuary of the Department of the Treasury, Mr. Donald Weinberg, Chief of the Pay Systems and Labor Relations Division of the Personnel Office, Mr. Stanley Ehrlich of the Personnel Office, Mr. Joseph D. Haley, Chief, Resources and Financial Management Systems Development of the Office of Budget and Executive Management, Mr. Oreste F. Maltogliati, Chief of the Accounting Division of the Finance Office and Mr. Jorier H. Yost, Supervisor of the Payroll and Retirement Section of the Accounting Division of the Finance Office.

The report of the Assistant to the Commissioner to the Chairman of the Committee dated March 13, 1970 recognizes that the primary purpose of this bill is to conform the legislation for the retirement of District of Columbia public school teachers more closely to civil service retirement legislation. The Commissioner notes that teachers' retirement legislation was initially patterned after civil service retirement legislation and that Congress has consistently maintained comparability in benefits of government employees and teachers in amendments to these respective pieces of legislation. The Commissioner supports this comparability and accordingly recommends the enactment of this bill.

The bill contains a number of provisions comparable to provisions of the Civil Service Retirement Amendments of 1969, including: (1) reduction from five years to three years the period of time used in computing an employee's average salary for retirement purposes; (2) service credit for unused sick leave for retirement purposes; (3) addition of 1 percent to increases in annuities based on rises in the consumer price index; (4) increase in salary deductions for retirement from 62 percent to 7 percent; (5) reduction in minimum service requirement from 5 years to 18 months; (6) guaranteed minimum yearly annuity for adult survivors; (7) increased yearly annuity for child survivors; and (8) increased yearly annuity for widows and widowers of disability annuitants.

In addition, the bill extends to teachers several other benefits which are now applicable to federal employees such as: (1) the dropping of the requirement that a child survivor of a deceased teacher must have received more than half his support from the teacher; (2) increasing the survivor annuity of widows and widowers of teachers from 50 percent of the retirement annuity to 55 percent; and (3) authority for a teacher to count as creditable service for retirement purposes all periods of authorized leave without pay when serving as an officer of an employee organization.

In addition to these conforming amendments, the bill also adjusts the District's contributions to the teacher retirement fund in order that teacher equity can be maintained with a minimum impact on the fiscal resources of the District. This provision would relieve the District of the requirement that it pay interest on the unfunded accrued liability of the fund, thus freeing District revenues for more immediate expenditure needs. This amendment requires that the present balance in the fund and future teacher equity both be protected..

The Commissioner believes that all of these amendments of H.R. 15980 are desirable additions to the teacher retirement legislation and recommends their favorable consideration by your Committee.