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United Stars. Congress. House Committee on tost
Office, and Civil Service. Subcommittee on
Retirement and Employee Benefits.
INCREASE IN GOVERNMENT'S CONTRIBUTION UNDER
FEDERAL EMPLOYEES HEALTH BENEFITS PROGRAM

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POST OFFICE AND CIVIL SERVICE
HOUSE OF REPRESENTATIVES

NINETY-FOURTH CONGRESS

FIRST SESSION

ON

H.R. 73

A BILL TO INCREASE THE CONTRIBUTION BY THE FED-
ERAL GOVERNMENT TO THE COSTS OF EMPLOYEES'
GROUP LIFE AND HEALTH BENEFITS INSURANCE

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(Ronald P. McCluskey, Assistant Counsel, Room B-345 (b), Rayburn Building-Ext. 56831)

(II)

112975

/08/10/75

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CONTENTS

Bowley, Edward L., legislative aide, American Postal Workers Union,

AFL-CIO, accompanied by Ben Evans, assistant director, APWU

Health Benefits Plan___

Rademacher, James H., president, National Association of Letter
Carriers, accompanied by Joseph Vacca, executive vice president;
Austin B. Carlson, vice president; and Jerome R. Waldie, assistant
for legislative affairs-

Scarborough, Freling H., Jr., president, National Association of Agri-
cultural Stabilization and Conservation Service County Employees

Tarr, Clarence M., vice president, National Association of Retired

Federal Employees, accompanied by Judy Park, legislative assistant.

Tinsley, Thomas A., Director, Bureau of Retirement, Insurance and

Occupational Health, U.S. Civil Service Commission...

Wolkomir, Dr. Nathan T., president, National Federation of Federal
Employees, accompanied by Irving Geller, general counsel

Webber, Clyde M., president, American Federation of Federal Em-

ployees, accompanied by Carl K. Sadler, legislative representative;

James H. Lynch, Jr., assistant legislative representative; and

Stephen Koczak, research director_..

Daniels, Hon. Dominick V., a Representative in Congress from the
State of New Jersey-

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Geller, Irving I., general counsel, National Federation of Federal
Employees, letter dated May 23, 1975....

55

Webber, Clyde M., national president, American Federation of
Government Einployees, letter dated May 15, 1975, with enclosures_

Administration reports received on H.R. 73 from-

Office of Management and Budget..

U.S. Civil Service Commission_..

Copy of H.R. 73__

IV

SUMMARY OF RECOMMENDATIONS ON H.R. 73

Mr. Clarence M. Tarr, vice president, National Association of Retired Federal Employees, April 22, 1975:

1. Amend H.R. 73 to include the provisions of H.R. 1913.

a. Reduce depreciation of life insurance policy value from 2 percent per month to 1 percent per month when the annuitant reaches age 65 or retires, whichever is later.

b. Depreciation would cease when the value reaches 50 percent of the amount in force before the reduction commenced instead of present bottom limit of 25 percent.

c. Annuitants whose policy values have been reduced to 25 percent of the amount in force before the initial reduction, restoration to 50 percent would be made.

Mr. James Rademacher, president, National Association of Letter Carriers, May 15, 1975:

1. Get employer to pay entire cost of health insurance.

a. This is the present trend as found in the private sector. 2. Make H.R. 73 into two separate bills, one for health insurance, one for life insurance.

a. It would be easier to get bill passed.

Mr. Edward L. Bowley, legislative aide, American Postal Workers Union, AFL-CIO, May 15, 1975:

1. Make government pay 100 percent of life and health insurance for employees.

a. Conform to current trend in private sector.

Dr. Nathan T. Wolkomir, president, National Federation of Federal Employees, May 14, 1975:

1. Make the Federal Government insurer of a nationwide noncontributory health insurance program for Federal employees. The Office of Workers' Compensation could be expanded to handle such a program.

a.

Mr. Clyde M. Webber, president, American Federation of Federal Employees:

1. Amend H.R. 73 to increase government's share of health premiums beyond 60 percent.

a. Increase to 75 percent in 1976, 80 percent in 1977 and 85 percent in 1978 by using money saved through holding pay increases to 5.5 percent in 1974 for Federal employees.

(IV)

94TH CONGRESS 1ST SESSION

H. R. 73

IN THE HOUSE OF REPRESENTATIVES

JANUARY 14, 1975

Mr. DOMINICK V. DANIELS introduced the following bill; which was referred to the Committee on Post Office and Civil Service

A BILL

To increase the contribution by the Federal Government to the costs of employees' group life and health benefits insurance.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) section 8707 of title 5, United States Code, is amended by striking out "66% percent" and inserting in lieu thereof "50 percent".

(b) Section 8708 (a) of title 5, United States Code,

is amended by striking out "one-half".

SEC. 2. Section 8906 (b) of title 5, United States Code, is amended by striking out "50 percent for applicable pay periods commencing in 1974 and 60 percent for applicable pay periods commencing in 1975" and inserting in lieu thereof "65 percent for applicable pay periods commencing in 1976, 70 percent for applicable pay periods commencing in 1977, and 75 percent for applicable pay periods commencing in 1978".

SEC. 3. The amendments made by this Act shall become effective at the beginning of the first applicable pay period which commences after December 31, 1975.

(V)

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