JULY 31, 1968.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed Mr. HÉBERT, from the Committee on Armed Services, REPORT [To accompany S. 3865] The Committee on Armed Services, to whom was referred the bill (S. 3865) to clarify the status of National Guard technicians, and for other purposes, having considered the same, report favorably thereon without amendment and recommend that the bill do pass. PURPOSE OF LEGISLATION. In authorizing Federal employee status for the National Guard technicians, the purpose of this legislation is— (a) To provide a retirement and fringe benefit program which will be both uniform and adequate; (b) To recognize the military requirements and the State characteristics of the National Guard by providing for certain statutory administrative authority at the State level with respect to the technician program; (c) To clarify the technician's legal status which in certain areas has been the subiect of conflicting court decisions, especially on the matter of whether technicians are covered under the Federal Tort Claims Act regarding third party actions against the U.S. Government. BASIC PROBLEM JUSTIFYING LEGISLATION The technicians, now numbering about 42,000, are full-time civilian employees of the National Guard whose salaries are paid in full by the Federal Government and who must meet all the mental and physical standards as well as professional qualifications prescribed by the military departments. About 95 percent of the technicians are required to hold concurrent National Guard membership as a condi tion for their civilian employment. The concept of the technician program is that the technicians will serve concurrently in three different ways: (a) Perform full-time civilian work in their units; (b) perform military training and duty in their units; and (c) be available to enter active Federal service at any time their units are called. Despite uniformity with respect to salaries and required standards there has been no program, on a uniform national basis for a retirement and fringe benefits program for technicians. The technicians except for those in the District of Columbia, are considered State employees. About 16,000 or 40 percent are covered under Federal retirement systems which may be combined with the social security program. About 24,000 depend on social security alone for their civilian retirement coverage. It should be noted that a total of 92 percent of the technicians, however, are covered under social security which may be combined with State retirement programs. The fringe benefit program of technicians, such as group health and group life insurance, is dependent solely on coverage which may vary from no coverage to whatever may be provided for other State employees. In addition there is the matter of clarifying the precise legal status of the technicians to prevent conflicting court decisions regarding third party claims against the Government arising out of accidents within the scope of employment. LEGISLATIVE BACKGROUND The House of Representatives, on February 20, 1967, passed H.R. 2, the so-called Reserve bill of rights, which included, as title II, provisions which would have provided National Guard technicians with a Federal employee status, thus making them eligible for Federal civil service retirement benefits as well as other related Federal employee fringe benefits. The Senate, in acting on H. R. 2, refused to accept title II of the bill as passed by the House of Representatives. The House conferees were unable to persuade the Senate conferees to restore the provisions of title II to H.R. 2 and consequently, H.R. 2, the Reserve bill of rights was enacted into law as Public Law 90-168 without a resolution of the National Guard technician problem. The conference report on H.R. 2, House Report No. 925 dated November 14, 1967, stated as follows: The House conferees were unanimous in their view that an effective and adequate retirement program for technicians in the National Guard is long overdue. Therefore, the House conferees were unwilling to accept elimination of this title of the bill without an assurance that the Senate Armed Services Committee would give prompt and full consideration to this problem early in 1968. The Senate conferees agreed that the matter would be taken up for disposition in the early months of the next session of the Congress and, therefore, the House conferees reluctantly receded from their position and accepted the Senate action. L. MENDEL RIVERS, PORTER HARDY, Jr., Managers on the Part of the House. S. 3865, then, is the response of the Senate to the insistence of the House conferees and represents, in effect, full and complete agreement with the House action with respect to the need for this legislation. SUMMARY OF LEGISLATION This bill implements the purpose by converting the technicians to Federal employee status with certain controls on administration and supervision which would as a matter of law remain at the State level. In effect, the technicians will become Federal employees receiving the salaries, fringe and retirement benefits, but with certain administrative control regarding employment supervision remaining with the adjutants general of the jurisdiction concerned under regulations prescribed by the Secretary concerned. The principal features of this bill which are later discussed in detail may be summarized by item as follows: (a) A broadened statutory scope of the technician employment program thereby eliminating the permanet provisions of law relating to "caretakers and clerks" which have been suspended by various appropriation acts. (b) Conversion of National Guard technicians to a Federal employee status with the authority for requiring National Guard emembership as a condition for civilian employment. About 95 percent of the technician force would be in this latter category. Federal status would be in the noncompetitive category for this group. (c) Conversion of technican positions to classified or wage board Federal positions. (d) Requirement for adjutants general to be the sole agent for employment and administration of technicain program under regulations prescribed by the Secretary concerned. (e) Provision for final level of appeal in adjutants general for all technicians for certain adverse personnel actions. (f) Provision for termination of civilian employment upon loss of Guard membership, failure to meet military security standards, or separation for cause, with requirement of 30 days' notice by adjutants general prior to termination. (g) Provision for nonapplication of veterans preference provisions for technicians because of the military nature of the National Guard program. (h) Provision for compensatory time off in lieu of overtime and differential pay for technicians (other than those assigned to operational duties at air defense sites) which is the practice under the present program. Credit for past technician service for Federal employee purposes with respect to leave, Federal employee death and injury compensation, group health and life insurance, severance pay, tenure, and status. (5) Credit for past technician service in full for civil service retirement eligibility purposes but with a limit of 55 percent for retirement computation purposes. (k) Provision of election to remain under a State retirement system with the consent of the State in lieu of coming under Federal civil service system. (1) Permissive authority to retain technician Reserve officers until age 60. (m) Provision requiring technicians to be in the program either now or in the future in order to receive credit for past technician service. (n) An effective date of Jan. 1, 1969, for legislation. PRESENT TECHNICIAN EMPLOYMENT AND Legal status RETIREMENT PROGRAM Except for those in the District of Columbia National Guard, technicians are considered employees of the State. Their salaries, however, are paid from Federal funds based on comparable classified and blue-collar Federal rates. By regulations about 95 percent of the technicians are required to be militTry members of the National Guard as a condition for their civilian technician employment. Number of technicians as of January 1, 1968 There were 40,546 technicians employed throughout the various States on a full-time civilian basis with about 95 percent required to hold dual status in the National Guard as a condition for employment. Of this total approximately 18,000 occupied positions comparable to the general schedule rates with about 22,000 holding so-called blue-collar positions and receiving pay under rates comparable to the Federal wage board schedules. Salaries of technicians For the technicians paid at comparable general schedule rates, the range is from the equivalent of GS-1 through GS-14. As of July 1, 1968, this range is from GS-1 ($3,889 to $5,057) to GS-14 ($16,946 to $22,031). The average salary for all technicians (male and female) as of January 1, 1968, was $7,696. With regard to special pay, overtime, differential and premium pay, none is authorized under the present system, only compensatory time off. Federal employee compensation coverage and other benefits All technicians are presently covered under the Federal Employees Compensation Act providing for injury and death benefits occurring within the scope of employment. (This coverage began in 1938 under a Labor Department ruling.) A number of the technicians are also covered under various State plans for the purpose of health insurance, life insurance, and other fringe benefits. PRESENT RETIREMENT PROGRAM Social security coverage The following factors should be noted regarding the social security |