Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-07-22
ANNU|TIES FOR CLERKS
Or. LeadIy Discusses Schemes
of Retirement Pay.
THE PLAN MOST FAVORED
Each Employe Contributes Only to His
Own Pension.
GOVERNMENT AID NECESSARY
Recommendations Of Subcommittee Of
the Keep Commission Received
With Approval
GOVERNMENT AID NECESSARY

DR.. George w. Leadley. chief of the ap-
pointment division of the Department of
Commerce and Labor. has made very
careful study of various plans for the re-
tirement of employees of the government
and of plans providing for pensions. DR..
Leadlcy is one of the committee which
acted as assistant committee to the
Keep commission in working up the ap-
prove plan for retirement.
Among the government employees in par
ticular." said DR.. Leadley today. 1.-THE new
measure seems to have been very favorably
received. and the consensus of opinion is
that it will be happy solution of the diff
fculties and objections that have been
pointed out IN the bills heretofore presented
for accomplishing the same purpose and
at the same time will adequately meet the
persistent agitation to provide old age PEN
sfons or retiring allowances for superan-
nlratcd employees.
''The principal measures that have here
toforc been proposed are the outright civil
pension list, old age pension fund
based upon assessments of the salaries of
employees and the Australian form of a de-
ferred annuity policy which persons nomi-
mated for appointment shall be required to
take out in some company before final ap-
pointment is made.
Civil Pension List Opposed.
t''The outright civil pension list has Sc
cured but little support. especially in Con-
gress, and its adoption in other countries
has been the source of considerable abuse.
There has been a tendency to favor the
employees at the expense of the govern
xnent and 1t has been practically impOs-
sfble to curtail the system when oNce put
into operation. In an exhaustive report
made by special committee of the Ma
tional Civil Service Reform League it is
claimed that If this government should
establish a civil pension list on the same
h0SiG hot In i
cost Sl9OOO0OO a year, If limited in its APP
plication to those In the classified service
and S25O000OO IL applied to the whole serv-
ice. The very statement of these figures
shows how absolutely impossible such a
plan would be for u.s.
The advocates of the plan involving an
old-age pension list, based upon assess
ments of the salaries of employees claim
that fund could be raised without cost
TO the government which will provide for
the employees as fast they become super
animated OF course it would require but
q; reasonable assessment upon those here
after entering the service to establish a
fund sufficient to provide pensions for those
particular employees when they reach the
contemplate either that all those now in the
service who have reached the retiring age
shall be Immediately pensloned. or that
the commencement of the pension shall be
postponed not more than three years from
the date the law becomes enacted. This
feature of the proposed measure is strong
ly opposed BY the younger employees who
quite naturally, look with dsfavor upon
any plan which would require them to sup
port the employees now superannuated and
those who can contribute toward the fund
but a few years more. Attempts have
been made to overcome the opposition of
the younger element to the heavy assess
ment required by this plan by extolling to
them the prospects of earlier promotion
with consequent increase of compensation,
but careful analysis shows that these
prospects are somewhat. IL not almost en-
tirely illusory
Old-Age Pension Fund.
S'This plan for old-age pension fund
established by assessments upon salaries
presents two distinct propositions. by one
Of which there Is. and by the other of which
there is not in the case of removal, resig-
nation OF DEATH refund of the assess
ments which have been paid. The United
States civil service commission has given
Careful consideration to the plan which
provides for refunds in the event of separa-
lions. and has reached the conclusion that
the cost of any retirement scheme which
provides for immediate pensions to those
now superannuated and the return to en-
ployes or their estates of their assess
ments upon separation before the retiring
age is prohibitlve. A special committee Of
The National Civil Service Reform League
has also carefully considered this plan. as
embodied In the Perkins bill. introduced In
the Senate in May. 1906. and reached the
conclusion later that after all allowances.
1t seems impossible that the per cent
assessments (stipulated in the bill, can be
much more than half of what would be re-
CURED Where no refund Is made In the
case of removal. resignation or death be-
fore reaching the retiring age the adyan-
tage Is wholly with those who survive and |
remain in the service. and an injustice is
done to the families Of those who die be-
TORE reaching the age OF retirement.
Deferred Annuity Policy.
The chief objection to the Australian
plan Of a deferred annuity policy to be
taken out at the time of appointment, which
Is commended by the special committee
OF the Civil Service Reform League ia that |
The plan does not care for the present old |
enpinyes who are superannuated, or about |
to become superannuated and that II will |
not come into general operation for a |
period OF about fortytwo years or so AS |
n & rnporary expedient to cover the cases of
those Siperannuated. or about to become !
suPerannuated. the committee recommends
that record be kept of the amount OF
work done by all employees over sixty-five
years OF age. and that their salary be re-
duced in proportion to the amount by which
their work falls short of that of a thor
oughiy efficient employe. Theoretically
speaking. this would save nearly all loss to
the government: but is 1t fair to those who
have devoted their lives to the service?
Moreover 1t Is obvious from past ex-
pericnce that regardless of fixed regulations
In this respect. the higher officials of the
government service would hesitate. and
In tie ma jorty of cases might fail. for hu-
mane and sympathetic reasons. to recon-
mend a reduction in the salary of EN-
ployes who had become incapacitated after
years Of faithful and efficient service.
Kindness OF heart might. in the future as
In the past, induce those in charge to rate
the work performed by the old employees
above It's actual Importance. Why should
a rich government like ours attempt to get
rid Of faithful superannuated employees
without expense to itself and by system
which fails to recognize honorable and eff
fcient service rendered prior to the occur
renee Of physical incapacity brought on by
laboriOus duties and old age?
Plan Recommended
In The plan presented by the subcommit-
tee az the Keep committee provision is
made. first. for those whose service begins
after The enactment of the proposed law
and. second. for those who have been in
the civil service. al the time of the passage
of TIE law, for longer shorter period
1t Is proposed to pay every employe in the
civ! service on arriving at the age of
enty years an annuity equal to 1.5 per cent
OF his pay for every year of service. For
the purpose of illustration, assume that an