Special Message to the Congress on Contributory Group Life Insurance for Federal Employees.

To the Congress of the United States:

I propose for the consideration of the Congress a plan of contributory group fife insurance for Federal civilian employees.

Three months ago I expressed my conviction that a well-rounded personnel program was needed to benefit the Federal career system and its workers and to increase the administrative efficiency of the government. A program was envisaged that would combine the best practices of progressive, private employers with the special requirements of public service.

With this type of personnel program as our objective, thorough studies were made to determine how best to provide its necessary elements, and most of these have been recommended to the Congress. An additional essential element is contributory group life insurance. Such a plan I now recommend to the Congress.

Excepting those excluded by their own request or for administrative reasons, this plan would provide all civilian employees of the legislative, executive and judicial branches with group life insurance approximately equal in amount to one year's salary during active service prior to age 65, and with reduced benefits thereafter. The amount would be doubled if the employee should die by accidental means. Employees retiring on an immediate annuity, after fifteen years of service, would have insurance protection without further cost to them. Others terminating their employment would be able, without medical examination, to convert their insurance to individual policies at rates applicable to their attained age.

By means of this plan government workers could supplement their own insurance programs at minimum expense. The cost of the plan would be shared by the government and participating employees, each agency paying from existing appropriations about half of its employees' costs. Thus employees could take advantage of the low contribution rate of twenty-five cents bi-weekly for each one thousand dollars of life insurance.

In order to have advantages under this plan that are normally available to private employers, it is proposed that the insurance be cooperatively underwritten through the facilities of a large group of life insurance companies having experience in employee group insurance benefits. These companies would establish a single administrative office to assure the utmost economy in the operation of the plan.

The functions normally performed by the employer in a group insurance plan would, under this plan, be performed in the government by the Civil Service Commission. A Council on Group Insurance, consisting of the Secretaries of the Treasury and Labor and Director of the Bureau of the Budget, would be established to review the program and advise the Commission on policy matters.

In summary, two predominant features make this plan especially advantageous to the government and its personnel. First, employees are better enabled by this low-cost life insurance protection to carry out their responsibilities to their families. Second, the plan is another essential element in the development of a comprehensive personnel program that applies to government service the best practices of progressive, private employers.

A draft bill to effectuate this plan has been prepared by the Civil Service Commission and is being submitted to the Congress. I earnestly recommend that the Congress give this plan early favorable consideration.

DWIGHT D. EISENHOWER