Paragraph (2) of subsection (k) increases the annuity of a widow and widower of a deceased member (dropping the dependency requirement in the case of widowers) whose death was other than in performance of duty, or of a former member who dies after retirement. At present, the annuity of a widow or dependent widow is the greater amount of (1) $1,800 per year ($150 per month), or (2) 30% of the member's basic salary at the time of his death or of the basis upon which the former member's annuity at the time of death was computed. The amendment would increase this survivor annuity to an amount at least equal to 40% of the corresponding salary for step C, subclass (a), Class 1 of the Police and Firemen's Salary Act salary schedule currently in effect at the time of the member's death (presently $10,300). The resultant minimum annuity would be $4,120 per year, or slightly more than $343 per month.

Although the District strongly favors increased annuities for widows and widowers, the District cannot support this proposed method of computation of annuities. The District proposes, instead, a formula which would produce annuities more nearly consistent with civil service and District teachers' survivors annuities. Therefore, the District recommends that paragraph (2) of subsection (k), in lines 6 through 21 on page 5 of the bill, be amended to read as follows:

"(2) In the case of the death of any member before retirement, or of any former member after retirement, leaving a widow or widower, such widow or widower shall be entitled to receive an annuity in the greater amount of (1) $2796 or (2) 35% of the member's basic salary at time of death or of the basis upon which the former member's annuity at the time of his death was computed."

This proposal of the District would result in a monthly increase in minimum annuities of $83, and cost comparatively less than the proposal in S. 2695, as is demonstrated by the following table:

Paragraph (3) of subsection (k) provides for an annuity of a child or studentchild of a member killed in performance of duty who is not survived by a wife or husband, such annuity being equal to the smaller of (1) 25% of such member's basic salary at time of death, or (2) such member's basic salary, divided by the number of eligible children. The proposal is estimated to cost $7,000 for the first year with an ultimate cost of $19,300 per year.

Since the District's proposal for a lump sum payment of $50,000 divided among all dependents of a policeman or fireman killed in the performance of duty covers dependent children, the District recommends that subsection (k) (3) be deleted and that the following subsections be renumbered accordingly.

Paragraph (4) of subsection (k) provides for an increased annuity to a child (including a student-child) of a deceased member (whose death was other than in performance of duty), or of a former member who dies after retirement, leaving a wife or husband, such increased annuity to be in an amount equal to the smaller of (A) 10% of the corresponding salary for Step C, Subclass (a), Class 1 of the Police and Firemen's Salary Act salary schedule currently in effect at the time of the member's death, or (B) 30% of such salary, divided by the number of eligible children. If the member or former member is not survived by a wife or husband, the increased annuity of the child (or student-child) would be an amount equal to the smaller of (i) 15% of such salary, or (ii) 45% of such salary, divided by the number of eligible children.

The resultant annuity for an only child with a surviving parent would be $1,030 per year or approximately $86 per month. For each child without a surviving parent, the annuity would be $1,545 per year or approximately $129 per month. The cost of these provisions of the proposed subsection (k) (4) is estimated at $3,600 for the first year, with an ultimate yearly cost of $60,400.

The present annuity of each surviving child of a member or former member who also is survived by a wife or husband is equal to the smallest of (1) 40% of the member's basic salary at the time of death or of the basis upon which the former member's annuity at the time of death was computed, divided by the number of

children; (2) $600 per year; or (3) $1,800 per year divided by the number of children. Thus, an only child with a surviving parent now receives $50 a month. For each surviving child of a member who is not survived by a wife or husband, the present annuity is equal to the smallest of (1) 50% of the member's basic salary at time of death or of the basis upon which the former member's annuity at time of death was computed, divided by the number of children; (2) $720 per year; or (3) $2,160 per year, divided by the number of children. Thus, an only child without surviving parent receives $60 a month under present law.

The District of Columbia Government supports higher annuities for surviving children of police and firemen but cannot support the method of computation contained in this bill. The District proposes, instead, a method of computation of annuities similar to that in effect for civil service employees and District teachers. The District's proposal would result in a monthly annuity of $79 for an only child with a surviving parent and $95 for an only child without a surviving parent. The cost of the District's proposal, as compared to the proposal contained in the bill, is demonstrated by the following table:

Accordingly, the District recommends that the proposed subsection (k) (4), lines 6 through 25 on page 6 and 1 through 16 on page 7 (which would be renumbered subsection (k)(3) if preceding District recommendations are adopted), be amended to read as follows:

"(3) Each surviving child or student-child of any member who dies before retirement, or of any former member who dies after retirement, shall be entitled to receive an annuity equal to the smallest of (1) 60% of the member's basic salary at the time of his death or of the basis upon which the former member's annuity at the time of his death was computed, divided by the number of eligible children; (2) $948 per year; or (3) $2,844 per year, divided by the number of eligible children: Provided, That such member or former member is survived by a wife or husband. If such member or former member is not survived by a wife or husband, each surviving child or student-child shall be paid an annuity equal to the smallest of (1) 75% of the member's basic salary at the time of his death or of the basis upon which the former member's annuity at the time of his death was computed, divided by the number of eligible children; (2) $1,140 per year; or (3) $3,420 per year, divided by the number of eligible children."

Paragraph (5) of subsection (k) provides that each widow, widower, or child who, on the effective date of this legislation, was receiving an annuity, would have such annuity recomputed as provided in the proposed subsections (k) (2) and (k)(4). In accordance with the District's opposition to the proposed subsections (k) (2) and (k)(4), the District also opposes the proposed subsection (k) (5). The District believes that the annuities of widows, dependent widowers, and children of members should be raised, but it cannot support a recomputation on the basis provided in this bill. Such a recomputation would result in a first year estimated cost in excess of $1,482,000, with gradually reduced yearly costs thereafter.

The District proposes that the annuities of adult survivors be raised to the District's proposed minimum of $233 per month, and those of child annuitants be raised as provided in the District's proposed subsection (k) (3). The District proposal is estimated to cost approximately $528,800 for the first year, with gradually reduced yearly costs thereafter.

Therefore, the District recommends that the proposed subsection (k) (5) (which would be renumbered (k) (4) in accordance with the District's previous recommendations) be amended to read as follows:

"(4) Each widow, widower, or child who, on the effective date of the Policemen and Firemen's Retirement and Disability Act Amendments of 1969, was receiving relief or annuity computed in accordance with the provisions of this subsection, shall be entitled to benefits computed in accordance with the provisions of paragraph (2) or (3) of this subsection." Paragraph (6) of subsection (k) adds a new provision enabling a policewoman, at the time of retirement, to elect to receive a 10% reduction in annuity in order to give her nondependent husband, if he survives her, an annuity equal to 40% of the

full annuity to which she was entitled. If the retired policewoman survives her husband, she would then be entitled to her full annuity payments. This subsection is unnecessary since the subsection presently designated (k) (9) of the bill authorizes these salary deductions by all retirees, including policewomen.

Paragraph (7) of subsection (k) provides for the restoration of annuity payments to widows or widowers whose annuities were terminated upon their remarriage, when such remarriage is terminated by death, annulment or divorce. This provision would also enable a student-child to receive an annuity as long as he remains an unmarried student, up to age 22.

The District supports these provisions as being consistent with those of the retirement systems of civil service employees and District teachers. However, these systems permit a widow or widower over sixty years of age to continue to receive an annuity after remarriage. The District recommends the incorporation of this provision in the police and firemen's retirement system by inserting "before age sixty" in line 2 of page 9, immediately after "remarriage".

These provisions are estimated to cost $8,200 for the first year, with an ultimate annual cost of $329,600.

Paragraph (8) of subsection (k) adds a new provision to enable each surviving child or student-child of a member killed in the performance of duty to be paid an annuity as provided in subsection (k) (3) upon the death or remarriage of the surviving wife or husband of such member. The District has opposed the inclusion of the provisions of subsections (k) (1) and (k)(3) relating to special annuities in cases of death in the performance of duty. Accordingly, the District opposes subsection (k) (8). The cost has been estimated to be negligible.

Paragraph (9) of subsection (k) is substantially similar to present law (D.C. Code, sec. 4-531(3)) except that a provision is added to permit a retired member who elects to receive a reduced annuity to be entitled later to full annuity payments should he survive the person he had designated to receive an increased survivor's annuity upon such member's death. Such a provision is clearly equitable and its cost would be negligible. However, the District recommends that this paragraph be amended to reflect changes in numbering of other subsections as follows: On page 11, line 5, strike "(9)"; line 7, strike "(2), (4), or (8)" and insert in lieu thereof (2) or (3)"; line 10, strike "(2), (4), (7), and (8)” and insert in lieu thereof “(2), (3), and (5)”.

Paragraph (10) of subsection (k) provides for automatic increases in annuities in proportion to salary increases for the active duty members of the Police and Fire Departments. The District of Columbia favors periodic automatic survivor annuity adjustments but does not believe it to be appropriate or relevant that such increases be tied to the salaries of active duty members. Instead, the District favors annuity adjustments based on cost-of-living increases. Such provisions are contained in the legislation governing the annuities of retired civil service employees and District teachers.

Therefore, the District recommends that paragraph (10) of subsection (k) (to be renumbered paragraph (7)) be amended to read as follows:

"(7) (i) Each month after the effective date of this subsection the Commissioner shall determine the per centum change in the price index. On the basis of this determination, and effective the first day of the third month which begins after the price index shall have equaled a rise of at least 3 per centum for three consecutive months over the price index for the base month, each annuity payable under this subsection which has a commencing date not later than such effective date shall be increased by 1 per centum plus the percentum rise in the price index (calculated on the highest level of the price index during the three consecutive months) adjusted to the nearest one-tenth of 1 per centum.

"(ii) The monthly installment of annuity after adjustment under this subsection shall be fixed at the nearest dollar, except that such installment shall after adjustment reflect an increase of at least $1.

"(iii) For purposes of this subsection, the term 'price index' shall mean the Consumer Price Index (all items United States city average) published monthly by the Bureau of Labor Statistics. The term 'base month' shall mean the month for which the price index showed a per centum rise, forming the basis for a cost-of-living annuity increase."

The proposal contained in the bill would cost $210,000 for each 10% increase in the salaries of police and firemen, while the District's proposal would cost $81,900 for a 3.9% cost-of-living increase. Both costs would, of course, be future costs. Section 2 of S. 2695 authorizes the legislation to be cited as the "Policemen and Firemen's Retirement and Disability Act Amendments of 1969". The year should, of course, be changed to "1970".

A comparison of the estimated first year costs of the provisions of this bill, $1,550,500, with those of the bill if amended as recommended by the District, $734,300, indicates a difference of $816,200. Since the increased salary deduction from 62% to 7% of basic salary provided by the proposed subsection (d) (1) is estimated to produce an additional $292,000 to the credit of the District if the legislation is enacted with the amendments recommended by the District, the net cost to the District for the first year would be $442,300.

Charts I and II are attached showing the estimated yearly costs of the provisions of S. 2695, as introduced and if amended as recommended by the District of Columbia.

CHART 1.-ESTIMATED COST OF BENEFITS UNDER S. 2695

CHART II.-ESTIMATED COST OF BENEFITS UNDER S. 2695 IF AMENDED AS RECOMMENDED BY THE DISTRICT

(a) (4) Dropping of term "dependent widower".

(a) (4) Removal of support requirement for children. (a) (5) Application of (k) (4) to (a) (5)..

(a) (6) Student-child provision..

(d) (4) Next of kin benefit after retirement..

(g) (1) and (2) 21⁄2 percent for disability not in line of duty (3% minimum-70 percent maximum)...

(h) (1) and (3) optional retirement, no age requirement, 21⁄2 percent-80 percent maximum..

(i) (1) Disability recovery cut-off (age 50)..

(k) (1) $50,000 lump sum payment to dependents of policeman

or fireman killed in performance of duty..

(k) (2) Adult survivor annuity..

(k) (3) Minimum benefit for surviving children (with and with

out living parent).

(k) (4) Application of (k) (2) and (k) (3) to current rolls..
(k) (5) Continuation of survivor annuities after 60 and restora-
tion before 60.

24.7 794.9

41.2 156.7 838.5 1,073.6

329.6 1,347.4

(k) (7) Adjustment of survivor annuities based on cost-ofliving increases.

1 No significant cost.

2 Increase of $81.9 per year for each 3.9 percent increase in cost of living, plus $21 per year for the additional 1 percent increase provided by the District's proposal,

GOVERNMENT OF THE DISTRICT OF COLUMBIA,

EXECUTIVE OFFICE, Washington, D.C., February 26, 1970.

Hon. JOSEPH D. TYDINGS, Chairman, Committee on the District of Columbia, U.S. Senate, Washington, D.C. DEAR SENATOR TYDINGS: The Commissioner of the District of Columbia has for report H.R. 4183, a bill "To provide that the widow of a retired officer or member of the Metropolitan Police Department or the Fire Department of the District of Columbia who married such officer or member after his retirement may qualify for survivor benefits", passed by the House of Representatives July 14, 1969.

The bill redefines the term "widow" as used in the Policemen and Firemen's Retirement and Disability Act to extend the term to include a person who married a retired policeman (including a member of the Metropolitan Police force, White House Police force, or Park Police force) or fireman at least two years immediately preceding his death or who is the mother of issue by the marriage. The present definition is limited to the surviving wife of a policeman or fireman who was married to such individual before his retirement.

This legislation would be effective as to the payment of benefits on the first day of the first pay period beginning on or after July 1, 1969, and would be applicable to all widows of police and firemen, irrespective of whether the wife became a "widow" prior to, on, or after the date of the enactment of the bill. Although the District has no indication as to how many widows of retired police and firemen might be affected by this legislation, it is not thought that the number is large or that the cost of this legislation would be substantial.

The retirement legislation for public school teachers in the District of Columbia and the civil service retirement legislation, which covers a large percentage of District employees, both require that the widow must have been married to the employee before retirement in order to be eligible for an annuity.

The Commissioner believes that, in this respect, the Policemen and Firemen's Retirement and Disability Act should remain comparable to legislation affecting District teachers and other employees as well as most Federal employees. The Commissioner accordingly opposes the enactment of H.R. 4183.

Sincerely yours,

GRAHAM W. WATT,
Assistant to the Commissioner

(For WALTER E. WASHINGTON, Commissioner.)

GOVERNMENT OF THE DISTRICT OF COLUMBIA,

Hon. JOSEPH D. TYDINGS,

EXECUTIVE OFFICE, Washington, D.C., February 26, 1970.

Chairman, Committee on the District of Columbia,
U.S. Senate, Washington, D.C.

DEAR SENATOR TYDINGS: The Commissioner of the District of Columbia has for report H.R. 4184, a bill "To equalize the retirement benefits for officers and members of the Metropolitan Police force and the Fire Department of the District of Columbia who are retired for permanent total disability", passed by the House of Representatives July 14, 1969.

The bill provides that on and after the first pay period which begins after July 1, 1969 the retirement benefits of police and firemen (and of officers and members of the United States Park Police force, White House Police force, and the Secret Service) who retired prior to October 1, 1956, for permanent total disability rated at 100 per centum at the time of retirement, shall be computed and paid under the present Policemen and Firemen's Retirement and Disability Act, which became effective October 1, 1956. It is estimated that this legislation would affect approximately 146 retirees. Under provisions of the retirement law applicable to police and firemen who retired prior to October 1, 1956, these retirees initially received in retirement compensation 50 per centum of the annual salary they had been receiving immediately prior to their retirement. The Act effective in 1956 provides that retirement compensation shall be a minimum of 6633 % and a maximum of 70% of the annual salary received by a retiree immediately prior to his retirement.