CATAWBA COLLEGE, Hon. JAMES I. DOLLIVER, Salisbury, N. C., June 16, 1949. House of Representatives, Washington, D. C. DEAR MR. DOLLIVER: You recently requested Dr. Jacob Ornstein to furnish affidavits from persons who know him personally and who are familiar with his handicap and resulting problems, supporting his request for reimbursement from the Federal Government for the automobile with special hand controls that he has bought. I have been asked by Dr. Ornstein to send you such a statement. As you are probably aware, Dr. Örnstein was striken with a very serious attack of infantile paralysis while overseas in the service of the United States Government. After many, many months of slow and tedious treatment, with recovery from complete helplessness to a state of health where he is able to support himself as a teacher, it was necessary for Dr. Ornstein to obtain a car. This car is essential for him to get about even in the local community where he teaches-to say nothing of trips to professional meetings and speaking engagements-because of the wheel chair, braces, crutches, and other necessary equipment that he needs constantly. It was my pleasure to be associated with Dr. Ornstein on the faculty here at Catawba College in the summer of 1948. In those 3 months he was a great and constant source of inspiration to both faculty and students by his indomitable courage in continuing his efforts to further overcome his handicap. A favorable action on his request for assistance would be small recompense on the part of the United States Government for one who gave so much, yet it would mean a great deal to him in his efforts to continue to be a self-supporting citizen. Sincerely yours, DAVID J. SESSOMS, Jr., Assistant Professor of Commerce and Political Science. Subscribed and sworn to before me this 16th day of June 1949. My commission expires February 8, 1950. О JANIE E. ANDERSON, Notary Public. GRACE L. ELSER JULY 7, 1949.-Committed to the Committee of the Whole House and ordered to be printed Mr. JENNINGS, from the Committee on the Judiciary, submitted the following REPORT [To accompany H. R. 2594) The Committee on the Judiciary, to whom was referred the bill (H. R. 2594) for the relief of Grace L. Elser, having considered the same, report favorably thereon without amendment and recommend that the bill do pass. The purpose of the proposed legislation is to authorize the Civil Service Commission to pay out of any money in the civil-service retirement and disability fund to Grace L. Elser, the widow of Wilbur L. Elser, formerly a soil conservationist with the United States Department of Agriculture, an annuity equal in amount to the annuity which she would have been entitled to receive had the retirement of the said Wilbur L. Elser become effective on May 15, 1947, and had he elected in writing, at the time of such retirement, to receive a reduced annuity equal to such reduced annuity payable after his death to the said Grace L. Elser, as surviving beneficiary. STATEMENT OF FACTS It appears that Wilbur L. Elser, the husband of Grace L. Elser, was employed as soil conservationist in the Soil Conservation Service up to June 22, 1947, the date of his death. Mr. Elser was eligible for optional retirement since he was 60 years old and had over 35 years of creditable service. After these long years of work in the service of Agriculture, he became seriously ill and submitted to a major operation. The operation disclosed that he was in a critical state due to cancer. His doctor and his family apparently kept this information from him, and he never did know just how critically ill he was. Knowing only that he was becoming worse, he requested and signed, on May 27, 1947, an application for optional civil service retirement. On June 7, 1947, he completed the application papers by signing his H. Repts., 81-1, vol. 5- -10 "Application for Joint and Survivorship Annuity." His one concern during this time was making sure that his wife and small children would be taken care of in case he died. However, with his extended illness they were also in need of ready cash and he wanted, naturally enough, to remain on the rolls as long as possible. As evidence of this, he originally indicated his wish to have his retirement effective August 1, 1947, but later changed that date to July 1, 1947. Mr. Elser died on June 22, 1947, just 26 days after he signed his application for retirement. If his retirement had been consummated on May 27, 1947, the then current provision of law would have defeated the right of his widow to the survivorship benefit. This proviso reads as follows: "Provided, That no election in lieu of the lief annuity provided herein shall become effective in case an employee dies within 30 days after the effective date of his retirement, and in the event of such death within this period, such death shall be considered as a death in active service." Under this proviso, Mr. Elser's widow became entitled to receive only the amount of his own retirement account, plus accrued interest, instead of the estimated $1,796 per annum that she would have been entitled to as a survivorship benefit. Mr. Elser died, still believing that his wife would, without question, receive the survivorship annuity in the event of his death. A similar bill, H. R. 1396, for the relief of Anne Loacker was enacted and became Private Law No. 41 of the Seventy-ninth Congress. Therefore, your committee recommends favorable consideration. 1. Wilbur L. Elser was employed as Soil Conservationist, P-5 at the time of his death on June 22, 1947. 2. He had approximately 26 years and 2 months of creditable Federal service. He would have been 61 years of age on July 17, 1947. He was thus eligible for optional retirement. 3. His death on June 22, 1947, followed a serious illness of several months. However, neither he nor his physician thought that his trouble was as immediately critical as it proved to be. 4. On May 27, 1947, Mr. Elser applied for a joint and survivorship annuity, "Option A," a right which he had earned through his more than 36 years of meritorious Federal service. He elected an annuity in constant amount, payable as long as either he or his wife, Grace L. Elser, might live, to begin effective June 1, 1947. This election was made under section 4 (d) of the Retirement Act. 5. He originally applied for this annuity effective August 1, 1947, but changed the effective date to July 1 when his condition became more serious. 6. His wife, Grace L. Elser, was 46 years of age on October 3, 1946. They had two small children, aged 3 and 9. It seemed probable that Mr. Elser would not recover from this illness, and the Joint and Survivorship Annuity, Option A, would give his wife the best possible income-required for subsistence and for rearing and educating their children. 7. Merely because Mr. Elser died before July 1, 1947, (date of death, June 22, 1947), his elected annuity did not become effective. This is due to the following provision in section 4 (d) of the Retirement Act: Provided, That no election in lieu of the life annuity provided herein shall become effective in case an employee dies within thirty days after the effective date of retirement, and in the event of such death within this period, such death shall be considered as a death in active service. 8. Had Mr. Elser lived just 8 days longer, his elected joint and survivorship annuity would have become effective. Mrs. Elser would then have received an annuity estimated at $1,769 per annum, for as long as she lived. This income is badly needed for the maintenance of her family of two small children. 9. At age 46, Mrs. Elser's life expectancy is approximately 25 years. Her total expected income from this annuity may thus be estimated at $43,900. 10. Because, under the quoted provision of the Retirement Act, Mr. Elser's death is regarded as a "death in active service", Mrs. Elser has been informed that she now may receive payment of only $7,120 the estimated amount in Mr. Elser's retirement account. This represents only his accumulated retirement deductions, plus accrued interest. This does not at all represent the assured income to which Mr. Elser and his wife very properly thought Mrs. Esler would be entitled. DEPARTMENT OF AGRICULTURE, Washington, June 3, 1949, Hon. EMANUEL CELLER, Chairman, Committee on the Judiciary, House of Representatives. Dear Mr. CELLER: This is in reply to your request of April 7, 1949, for a report on H. R. 2594, a bill for the relief of Grace L. Elser. This bill would provide a survivorship annuity to Mrs. Elser in an amount equal to the annuity she would have been entitled to receive had the retirement of her husband, Wilbur L. Elser, a former employee in the Soil Conservation Service, become effective on May 15, 1947, and had he elected in writing, at the time of such retirement, to receive a reduced annuity equal to such reduced annuity payable after his death to the said Grace L. Elser, as surviving beneficiary. Our records show that Wilbur L. Elser, the husband of Grace L. Elser, was employed as soil conservationist in the Soil Conservation Service up to June 22, 1947, the date of his death. Mr. Elser was eligible for optional retirement since he was 60 years old and had had over 35 years of creditable service. After these long years of work in the service of Agriculture, he became seriously ill and submitted to a major operation. The operation disclosed that he was in a critical state due to cancer. His doctor and his family apparently kept this information from him, and he never did know just how critically ill he was. Knowing only that he was becoming worse, he requested and signed, on May 27, 1947, an application for optional civil service retirement. On June 7, 1947, he completed the application papers by signing his "Application for Joint and Survivorship Annuity." His one concern during this time was making sure that his wife and small children would be taken care of in case he died. However, with his extended illness they were also in need of ready cash and he wanted, naturally enough, to remain on the rolls as long as possible. As evidence of this, he originally indicated his wish to have his retirement effective August 1, 1947, but later changed that date to July 1, 1947. Mr. Elser died on June 22, 1947, just 26 days after he signed his application for retirement. If his retirement had been consummated on May 27, 1947, the then-current provision of law would have defeated the right of his widow to the survivorship benefit. This proviso reads as follows: "Provided, That no election in lieu of the life annuity provided herein shall become effective in case an employee dies within 30 days after the effective date of his retirement, and in the event of such death within this period, such death shall be considered as a death in active service." Under this proviso, Mr. Elser's widow became entitled to receive only the amount in his own retirement account, plus accrued interest, instead of the estimated $1,796 per annum that she would have been entitled to as a survivorship benefit. Mr. Elser died, still believing that his wife would without question, receive the survivorship annuity in the event of his death. The Department feels that this case illustrates the situations which the Congress, in the interest of employee welfare and in the interest of Government service as a whole, has been very much interested in correcting. This has been accomplished to a great extent by the approval February 28, 1948, of the new retirement act. Situations such as the Elser case will have no chance of developing after the effective date of that act. Favorable action on H. R. 2594 for the relief of Mrs. Grace L. Elser, would be extending to the survivor of a faithful employee of the Department with long years of competent service, benefits which Congress has now clearly indicated to be part of Government-wide personnel policy. For these reasons this Department recommends favorable action on the bill H. R. 2594, and recommends also that legislation be enacted which would provide relief for any other similar cases which may exist throughout the Federal service. The Bureau of the Budget advises that it has no objection to the submission of this report. Sincerely yours, CHARLES F. BRANNAN, Secretary. Hon. EMANUEL CELLER, UNITED STATES CIVIL SERVICE COMMISSION, Chairman, Committee on the Judiciary, House of Representatives. DEAR MR. CELLER: Further reference is made to your communication of May 3, 1949, transmitting copy of H. R. 2594, a bill "For the relief of Grace L. Elser.' The proposal would direct the Civil Service Commission to pay to Grace L. Elser, widow of Wilbur L. Elser, an annuity equal in amount to the annuity which she would have been entitled to receive had his retirement become effective on May 15, 1947, and had he elected in writing, at the time of such retirement, to receive a reduced annuity payable after his death to Grace L. Elser as surviving beneficiary. Section 4 (d) of the Civil Service Retirement Act of May 29, 1930, as amended, which was in effect at the time of Mr. Elser's death, provided: "Any employee retiring under the provisions of section 1 of this Act may at the time of his retirement elect to receive in lieu of the life annuity described herein a reduced annuity payable to him during his life, and an annuity after his death payable to his beneficiary, duly designated in writing and filed with the Civil Service Commission at the time of his retirement, during the life of such beneficiary (a) equal to or (b) 50 per centum of such reduced annuity and upon the death of such surviving beneficiary all payments shall cease and no further annuity shall be due or payable. The amounts of the two annuities shall be such that their combined actuarial value on the date of retirement as determined by the Civil Service Commission shall be the same as the actuarial value of the single life increased annuity with forfeiture provided by this section: Provided, That no election in lieu of the life annuity provided herein shall become effective in case an employee dies within thirty days after the effective date of the retirement, and in the event of such death within this period, such death shall be considered as a death in active service." On June 7, 1947, Mr. Elser executed an application for annuity, electing therein a joint and survivorship annuity and naming Grace L. Elser, wife, as his survivor annuitant. By his own election, he set June 30, 1947, as the date of separation from service for purposes of retirement. Since he was not retired, the annuity application was never forwarded to the Commission but was retained by the Department in his personnel file. He was properly being carried on the rolls of the Department of Agriculture on June 22, 1947, the date of his death, and was paid salary to that date. In order to meet the conditions stipulated in the law for vesting of annuitable title in his widow, it would have been necessary that he have lived until July 30, 1947. Inasmuch as he died prior to that date, his widow is entitled only to the sum contributed by him to the retirement fund with interest. The 30-day waiting period was placed in the retirement law to prevent, to a certain extent, adverse elections against the retirement fund by employees on their deathbed. Special legislation which would grant Mrs. Elser the benefits of this survivorship provision would undoubtedly establish a precedent which would open the way for numerous other similar claims of equal merit. The Commission has consistently recommended against the enactment of private relief legislation which would grant in a particular case annuity benefits to which other persons similarly situated are not entitled. The Commission therefore recommends that adverse action be taken on H. R. 2594. The Bureau of the Budget advises that there would be no objection to the presentation of this report to your committee. By direction of the Commission: Very sincerely yours, HARRY B. MITCHELL, President. о |