Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-07-02
Plans for Creation Of
List Completed.
Federal Employees to Be Re-
tired at Seventy Years.
Government Will Ultimately Be Re-
Iieved Of Expense.

washington. July Full details of
the Administration plan for the crea-
ton of 4 civil pension list are now
completed. 1t IS proposed IN general 10
retire civil employees at the age oi
seventy years, to pay them PENSIONS
based on the length of their service
and the amount of compensation at the
time of retirement, and to institute
system of assessments by which the
Government will ultimately be relieved
of all expense. 1t is estimated that the
first year of it's operation the system
would entail an expense on the GoV-
eminent of $725,000, that this expense
would increase annually until, at the
end of thirty years. it attained the
maximum of s1,746,561, after which
there would be a steady decrease until
ultimately the assessments would de-
fray the entire cost. These figures are
based on careful calculations, which
have been supervised by expert actu-
aries.
Apart from the humane cOnsldcra-
| tionS, it is believed by those who have
given careful study to the reorganiZa-
| ton Of the Federal service that it
| would so far make for increased effi-
| cheney as to render it an economical IN
veetment. An experience in the Cen
| cral Land Office illustrates this arSu-
ment. Until the recent reorganization
| undertaken by Judge Ballingcr, it has
! been the custom to have all land
patents and their records prepared in
long hand. The highest record of eff
ciency was thirty patents a day.
Judge Ballinger recently dismissed a
number of the oldest employees and
| filed their places with expert type
writer's. Now it is not uncommon for
Il single operator to write 12o patents
in a day. together with an equal num-
Der of records.
The subject of personnel. including
| the difficult question of replacing
surcrannuatcd employees with young
CT clerks. was confided to sub-com-
mittCc of the Keep Commission. In its
final report this committee disap-
proved equally any proposal that pen
SionS be paid to retired employees
wholly out of the Federal Treasury,
| and al measures providing for a uni
form deduction Of a given per cent or
| fiat rate" assessment on salaries. All
| such prove on analysis unfair either to
| taxpayers or employees, it declares.
The members Of the committee say
they have taken pains not ONLY to
study the details of the plan recon-
| mcndcd by them, as we'll as many 9th
crs. but to submit it to the criticism
of several expert professional actua-
rieS. and to have computations made
so that all necessary data NAV he Mt
hand. The general idea of their meas
urc is that each individual shall pro-
vide the necessary fund for his own
retirement
II is proposed to pay every employee
IN the civil service on retiring at the
age of seventy years or upward an
annuity equal to Is per cent of his
pay for every year IF service. To illus
tfat", take an employee who entered
the service at twenty years of age, re-
IceiNjnS a salary of $1,000 Il year through
nifty Years and retired ut seventy One
ana onc-nalf per cent of $1,000 is SIS
rms amount multiplied by fifty (his
years of scrvice) gives $500. the
amount of his annuity for the remain.
der OF his life. To provide the fund
from which to pay this annuity de.
duction will be made from tho monthly
salary of the employee of an amount
winch Will b" sufficient, with four ne,
cent compound interest. to purchase
such annuity on his arrival at the age
Of seventy years.
From accepted calculation of insur
ance companies il is found that s6.f1S i
the sum which mist be accumulated t.
purchase an annuity of 5000 for life TO
Il person seventy years of age TIL
next step is to determine what sun
must be set aside monthly to nc
cumulate at four per cent. interes
. s6.6lS during the employees fifty year
of service. A deposit Of 81 a montI
for fifty years, with interest com
| pounded at four per cent. amounts t.
sl,S.l.R The number of dollars ;
: month necessary to accumulate 1857
is obtained by dividing 667S by 1S71.as
This gives S3.51 to be deducted from ;
salary of 800 month to provide tn,
annuity of 5000 year
The arithmetical process. applied t,
all rates of salary and all terms %
service. will result in an annuity 70
each person proportional to tn
amount Of his salary and the numbc
of years he has served the Government
Proper provision is made for the with
dr2Wal of the employees accumulated
savings with interest in case he leave
the service before reaching the age o
retirement While the age OF retire
mont i fixed az seventy. generally il
, be made sixty-fve or sixty years Re