New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-07-28
OLD AGE PENSION PLAN.
WOULD AID 100, 900 CLERKS.
Keep Commissions Proposal for
CiJH Serrice Employees.
rFrom The Tribune Bureau.I il,

-
Washington, July 21-The Keep Commission
has finally completed Its project to provide for
the age retirement of the hundred thousand
classified clerks in the federal service through
out the country, and the project will now to
the President for incorporation in his annual
message 10 Congress in December
Briefly, it is proposed that from the salary
of each empoye an amount sufficient to pur-
chase his own insurance annuity. reach
ing the retiring age of seventy, shall bc de
Quoted monthly, the government acting GUS
todian and being responsible for the fund, The
amounts deducted from salaries will of course
vary with the age of entering the service and
with the amount of salary
A member of the ub-committee which made
the final revision of the proposed law explained
IT to-day
The amounts deducted from salaries" he
said. will in no sense be assessments. unjust
ly burdening the younger employees for the ben
eht of the older. Instead. 1t is proposed that
the sums shall be set aside as savings in the
United States Treasury by each Individual EN-
ploye for his ultimate benefit. or that Of
his family. and with the knowledge that at
compound interest the total amount Will at the
age of seventy years, be sufficient to purchase
reasonable annuity
NO employe will in any way contribute TO the
retirement fund Of other employees, nor will the
avings of any emplOyc be diverted to anOther's
strongest points IN favor of the system
"On arriving at the age of retirement tho en-
ploye may convert his savings with the inter-
est. into one of the following options: First.
one cash sum; second an annuity payable
throughout life: third annuity payable
throughout life, with the provision that IN event
Of the death Of the annuitant before he has re-
ccived in annuities the amount Of his savings
with interest, the balance shall he paid 10 his
estate. and fourth. an annuity for a limited term
of years.
But II is not merely the empioye that remains
i'm the service until he reaches the age Of re-
trement who Will benefit by this measure. \
person separated from the service in any man
nor before that age will have to his credit a
sum of money which he Will be free 10 with
draw. II It amounts to 81 600 and he has been
lin the service not less than twenty years he
may withdraw IT under any one of the foregoing
options In case Of his death in the service the
amount of his savings. with interest. viii Ice
paid TO his estate
The second part Of the plan takes care Of
employees now in the service. II aged employees
arc entitled to any assistance at all in consider
alton of their past services. or II the service
would be improved by their retirement the gov
crnmeut should provide the funds. It Is. there
fore proposed TO give every cmpioye now i'm the
classified service. AT government expense. an
annuity on reaching the age of seventy.
AN employe forty years of age. who has been
IA the service fifteen years at the tjWe OF The
enactment Of this plan into law, would on retire
ment thirty years hence. be entitled 20 receive
an annuity from the government of ID per cent
Of his pay for each year of service up To tho
passage OF such "a las. or 30 I-r cent plus tia
amount Of his own savings from the time the
Law went into effect until his retirement. after
thirty years at the age Of seventy. Suppos,
that this employe receives salary of Sl,2oo per
anuum throughout the term Of his service. ON
retiring at the age Of seventy ne would be en-
titled 10 an annuity OF $50 FOR the remainder oi
his life S270 from the government, or 10 per
cent Of his salary for the fifteen years he served
prior To the passage OF the retirement law. and
SOLO as the annuity from his own savings
that is IL per cent Of his salary for every Yea:
- service after the passage Of the law
Under the plan submitted th" annuity from
the government-the $2I0-Would have no cash
surrender value. It could be taken only as an
annuity. and could only be obtained in case the
. elnplove remained in the service until ne reached
. the age Of seventy. The 500 on the other mana
. which represents his own savings, plus interest
could bo converted into the cash sum necessary
IN bIy that annuity S4oN7. He can always on
. leaving the service. withdraw his own mone5
lint the contribution of the government for ser
vices rendered prior to tn" passage OF 'hs ac'
+ must alwavs he taken in the form of an annuity
None Of these funds. whether the savings oi
! the ernpIove or the contribution Of the govern
raeut. viii be subject To attachment or othsf
/ legal process"