Daily press. [volume] (Newport News, Va.) 1896-current, 1907-06-30

operation of which the government
peDse. III the meantime In order to
enable clerks to take immediate adj
vantage of the system, 1t is suggested
that the government should provide
the necessary funds until the plan
becomes sclf-sustaining, and that as
sessments be withhold monthly from
the pay OF the clerks until the plan
shall be sanctioned by Congress. The
subcommittee after giving much
thought to the matter, has decided
against any proposal that pensions be
paid to retired employees wholly out
of the Federal Treasury, and against
propositions providing for uniform
deduction of given per cent or flat
rate assessment on salaries, holding
that all such would be unfair either
TO taxpayers or employees.
Speaking generally. it is proposed
TO retire employees In the federal
civil service OH reaching the age of
seventy years. Such retirement is
not to be altogether compulsory for
1t is proposed that competent persons
may be retained as long as they wish
To remain and can render adequate
service. On the other hand in some
cases 1t is suggested that the age of
retirement be fixed at sixty-fiye years.
rho eIhnonoittoo l,c .,,i,r,;ttoJ az,
plan to the criticism of expert pro-
iessional actuaries and has had COM
putations made upon which some of
the detailed arrangements proposed
lty them are based. AS regards the
fiscal arrangement, it is proposed to
pay every employee in the civil ser
vice on retiring at the age of seventy
years or upward an annuity equal to
LIS per cent. of his salary for every
year of service. The fund from
which to pay this annuity is to be
provided, by making a deduction from
the monthly salary of the employee
of an amount which will be sufficient
with 4 per cent. compound interest,
to purchase such an annuity at the
age of seventy years. This amount
is to be arrived ut in accordance with
accepted methods in making calcu-
lations of this kind.
In some cases. of course, il will
happen that employees will leave the
service before reaching the age of
retirement, To meet such cases pro.
vision Is to be made for the with
drawal of the employees accumuat-
cd savings or assessments with in
terest. AS indicated above 1t is pro
posed that the government shall pro.
vide at the outset an amount suffi.
cient to put the plan in immediate
operation. 1t Is proposed, however.
that the sum contributed by the gov
eminent to make UP the purchase
money for the annuity of each en-
ployee cannot be withdrawn by the
employee on leaving the service be-
fore retirement, nor be taken in cash
upon retirement. but will be used only
io' thc pun CiluSt Ol HIS annuity, pay
able quarterly during life. Such are
the general features of the plan now
awaiting the Judgment OF the full
commission. 1t is estimated that it
VIII entail an expense on the govern
ment of about $725,OO0 in the first
year of It's operation and that this
expense will gradually increase until
1t reaches a maximum of about ST.
100000 at the end of thirty years, af
ter which it is expected that the
amount will steadily decline until fin
ally the assessments will defray the
entire cost The plan is recon-
mended not only upon humanitarian
grounds, as affording a reasonable
provision for the old age of faithful
public servants, but as tending to in.
crease Ii, efficiency of the civil SER
vice ag, e. Somewhat similar
n e