The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1906-05-22
PENSIONS URCEO
FOR AGED CLERKS
Bill Introduced by Congress
man Fowler Would Make
Provision for Them
LIMIT 70 BE $1,000 A YEAR
TO CREATE THE NECESSARY
FUND FIVE PER CENT WILL BE
DEDUCTED FROM THE sALA-
RIEs OF GOVERNMENT EN-
PLOYEEs.


PLOYEEs.
WASHINGTON, May 81, 1906.-Rep-
resentative Fowler of Elizabeth, has in
traluced bill for the retirement of gov
ernment employees, which represents five
years of hard work by the United States
1t is expected similar bill will be intro
duced in Senate by Senator Perkins. of
California. What action will be taken
However, since the money for the re
tirement pensions will come from the sal
aries of the clerks, there should be no
objection to the measures.
In order to create a fund to pay the
retirement pensions there will be per
cent? deducted from the salaries of the
government employees in the classified
every month, and it win be held in trust
service. This deduction will be made
by the Treasury Department. and what
is not required to pay the retirements
by the Treasury Department, and what
will be invested in interest-bearing bonds
by the Secretary Of the Treasury.
BY the provisions of the bill retire
ments will begin three years after the
first payment shall have been made. The
Secretary of the Treasury is authorized
to make all needful regulations to carry
out the provisions of the bill. All per
sons holding absolute appointments in the
reached the age Of 70 years, shall be re-
tired from service, and shall receive an
annual retirement pay equal to one-eight-
ieth of the average annual salary re-
ceived during the last ten years of serv-
ice for each year of service, but no one
shall be paid greater amount than
s., 600 year, and all salaries in excess
of $1,000 a year shall b considered as
$1,000 for all purposes of the act.
Provision is made for the retention in
the service of employees of 10 years of
age by reason of expert or technical
knowledge. The extension may be from
one to FIVE years upon application of the
chief. The maximum length of service
as basis of computing retirement pay is
fixed at 40 years, which precludes the
payment to a retired employee of more
! than one-half of his regular salary. Per-
sons becoming mentally or physically in
| capab Bile of performing ordinary duty after
ten years may be coInpulsorily retired.
The calculations upon which the
scheme for the retirement fund is based
were made by A. w. Skunk, formerly
chief of the division of vital statistics
| 1t was shown that the number of en-
ployees in the government service is
122, 1865, and their annual compensation
amounts to $15, ,421, ,961. At the end Of
| twenty years it is calculated the fund
would amount too $35, ,024, 300.
The actuary states further: 1T would
appear from the estimate that there will
| be on hand at the end of tAe twentieth
year asuf1cient fund to carry the retired
Ill G,-o -,oons lon,ar ~, ~ Al, and of
the twenty-ffth year, without any fur
ther assessments being collected, and it
is believed, after a careful inspection of
the basic figures, that the maxImuso ex-
pense will have been passed before that
time has elapsed.
1T is TO be remarked that the system
of retirement proposed in the bill under
consideration is not a system of self-pro-
vided annuities. but it is a system in
which the younger element of the class
| provides the retired pay for the older
with the expectation that it in turn, when
it becomes older, will be provided for by
others, and that consequently annuity
rates or annuity tables cannot be ap-
piled with satisfactory results to any es-
innate concerning that system,
1T is believed that the estimate given
| is a maximum amount for the expenses,
and maximum of the receipts. and that
5 per cent is likely in the course of time
to yield more than is necessary for the
tirement fund. To met such contin-
gency it is suggested that provision for
the reduction of the rate of assessment
in case it is found that it can be safely
reduced, should be Incorporated in the
bill.'
GREAT WINTER RESORT ROUTE
AZ