TESTIMONY OF FUND FOR ASSURING AN INDEPENDENT RETIREMENT (FAIR) BEFORE THE CIVIL SERVICE POST OFFICE AND GENERAL SERVICES SUBCOMMITTEE OF THE COMMITTEE ON GOVERNMENTAL AFFAIRS UNITED STATES SENATE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00338R000400480019-8
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 21, 2016
• Document Release Date: September 8, 2008
• Sequence Number: 19
• Publication Date: September 14, 1983
• Content Type: REPORT

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FUND FOR ASSURING AN INDEPENDENT Nt 1 It(C1viC1'1"
TESTIMONY OF
FUND FOR ASSURING AN INDEPENDENT RETIREMENT (FAIR)
before the
CIVIL SERVICE, POST OFFICE AND GENERAL SERVICES SUBCOMMITTEE
,of the
COMMITTEE ON GOVERNMENTAL AFFAIRS
UNITED STATES SENATE
September 14, 1983
Mr. Chairman. On behalf of the President and Chairman of the
Board, Vincent Sombrotto, we appear here today as representatives of
FAIR -- Fund for Assuring an Independent Retirement. Recently, the
26 member organizations voted unanimously to continue FAIR as a volun-
tary coalition of unions and employee organizations concerned with
legislative issues affecting all active and retired federal and postal
employees. At its June 7, 1983 Board of Directors meeting, new officers
were elected: Vincent Sombrotto, Chairman of the Board and President;
Kimberly C. Parker, Secretary; and Jerry Klepner, Treasurer. My name is
Jerry Klepner. With me this morning are Kimberly C. Parker, Secretary
of FAIR, and George Gould, Chairman of FAIR's Legislative Committee.
We are here today at your invitation to discuss FAIR's position on
the situation facing new federal and postal employees hired on or after
January 1, 1984. Under the present law, they will be required to pay 7%
into Civil Service Retirement and an additional 7% into Social Security.
As usual, Mr. Chairman, it is a pleasure to appear before you and
your Subcommittee. We appreciate the interest you have always shown and
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continue to show in the welfare of all government employees and retirees.
We realize the Chairman's time constraint, therefore, our statement is
as short as possible. With your permission, if necessary, we request the
opportunity to submit additional testimony for the record.
Mr. Chairman, as a coalition representing federal and postal
employees, we anticipated problems that could arise if Social Security
coverage was extended to new government employees. During the debate on
the Social Security bill this year, on many occasions we took the oppor-
.tunity to express our concerns that there would be a dichotomy between
new and present employees. That situation becomes a reality on January
1, 1984.
If a solution can be developed to resolve this dichotomy, we as a
coalition of 26 federal and postal unions and employee organizations
believe that any such solution must meet certain tests to be viable,
workable and acceptable.
And, if a solution is indeed going to be enacted into law, it is
essential it is agreed to by all interested parties.
Mr. Chairman, there are few, if any, Members of Congress more
knowedgeable in the legislative process than you. In dealing with issues
as sensitive as this one, it necessitates a consensus. To reach that
consensus it is necessary to thoroughly communicate among the involved
parties. That is why we appreciate these hearings which give us the
opportunity today to work with you and your staff on this issue.
Given that opportunity, we would like to discuss briefly some
tests that must be met if a solution is to be achieved. These tests are
consistent with FAIR's position since its inception; any variation from
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this runs contrary to that historical perspective.
First contributory funding for the Federal retirement trust
funds must continue. It is essential that there be no interruption and
no reduction in those contribution levels. Continuing contributions insure
that all options remain available, and insure the financial solvency and
integrity of the Federal retirement' trust funds.
Second, there must be equity between new employees and present
employees. Inequities in contribution levels could result in personnel
problems, declining morale, and drops in productivity. To have two employees
at the same pay level, doing the same job and yet one contributing 7% toward
Civil Service Retirement, and the other contributing 7% to Civil Service
Retirement and 7% to Social Security, is inherently inequitable.
For the government to work effectively, it must be able to attract
and retain qualified employees. As employee and retiree organizations,
we are concerned with the welfare of current employees and retirees whom
we represent.
As organizations dealing with the business of government, we are
also concerned that post-1983 hires be treated fairly. And, that there
be no fragmentation of the federal workforce.
Mr. Chairman, we welcome the opportunity to work with you and your
staff to develop a solution to the dichotomy between new and current federal
and postal employees.
I will be more than happy to answer any questions you may have.
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