Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-07-13

Hill NPtRn ~ P10NUEt11.j
selves may be averse to retiring Therefore,
the arbitrary retirement of all who have
reached the age of seventy is not contem-
plated but provision is made for consider
ing the of those who competent
and who wish to remain in the service after
that age.
The foregoing statement describes the
first part of the plan-i e., the basis on
which all government employees will be re-
tired after about fifty years when practi-
away. If this were all it would be open to
criticism as unjust to the older employees,
who are too advanced in years to provide
funds for their own retirement.
Employees Nowin Service.
THE second part of the plan takes care of
employees in the service. If aged employees
are entitled to any assistance at all in
consideration of their past services or If
the service would be improved by their re-
urement the government should provide
the funds for their annuities. Proceeding
on this premise a scheme is proposed
which contempates the treatment of all
employees alike that are now in the CLASH
ned service IN proportion to their years of
service by giving every employee, at govern
ment expense, an annuity on arrival at the
age OF seventy equal to 1.J per cent of his
average salary during the last ten years
OF service for every year of service up to
the enactment of this retirement measl1re
provided Ell remains in the service until he
reaches that age.
1t is not contemplated that the govern
ment annuties payable under the second
part OF this plan shall be based on salaries
above 2.Oe per annum. All salaries above
that sum shall be reckoned as salaries of
s2,oD The amount deducted henceforth
pioyes own retirement fund would how
ever, be based on the full amount of his
saia-y
Postal Clerks Especially Considered.
I'm view of the more strenuous demands
made on their physical strength, it is
proper to make the government annuites
due railway postal clerks for previous serv-
ice available at the age of sixty rather
than seventy. 1t is also proposed to make
the government annuities due letter carriers
available at the age of sixty-fve rather
than seventy The annuities paid in these
cases would be relatively smaller than
those given other employees at seventy
Similar treatment will also be granted to
other classes of employees whose work
srable.
THE plan provides that the period of
service upon which the annuity to be paid
by the government is based shall be COM
puted from the original employment
whether as a classified unclassified en-
ploye. This may include service in one or
more departments of the government and
periods of service at different times.
How much will the adoption of this plan
cost the government? From the time of
the passage of such a law all employees
would begin to provide for themselves. so
that utlmat ely the plan would be no ey-
penSe to the government beyond the pay
ment Of salaries to the necessary clerical
force to handle the accounts and the pay
ment of interest for the use of the funds
In the meantime. however the government
would have to take care of the old en-
ployes as they reach retiring age. for serv-
ices rendered prior to the adoption of the
plan, until about fifty years from now.
when the last one would have been paid
off. The sum required to do this annually
would gradually increase for a few years.
reaching its maximum about thirty years
after the passage of the law From the
twenty-ffth to the thirty-secOnd year after
the adoption of the plan the amount each
year is about the same. After the thirty
third year the amount each year drops off
very rapidly until in fifty years the plan
would be selfsustainng. and there would
be no more need of making appropriations
for the superannuated.
Reliable Statistics Gathered.
I'm this connection it is interesting to
note that one of the valuable features OF
the plan is the array of reliable statistics
concerning a large body of representative
people VINO VIII gradually be collected If
this retirement plan is adopted In handling
the accounts of the employees under this plan
records will necessarily be kept showing the
mortality experience of the employees in the
various branches of the service and in diff
ferent localities throughout the country. the
rate OF withdrawal from the classified civil
service and much similar information that
may he OF value and serve as a guide in
future valuations and adjustments of any
retirement plan and in reducing the cost
not only to the employees, but to the gov
eminent we'll
The records will eventually become of
great interest to every individual in the
united States who contemplates taking out
life insurance policy for the government
experience will prove conclusvely whether
the rates charged by insurance companies
are reasonable. At present it is impossible
TO say absolutely. They are usually based
on table known as the American expert
"nce table of mortality, compiled by the
Mutual Life Insurance Company OF New
York which was made up from obserVa-
ton of about 60 900 selected lives. The pro-
posed retirement plan for government en-
poyees will secure a record Of at least
twice that many lives at once, and prob
ably three times that number before long,
under various but classified conditions. The
value of such an authoritative record would
in itself justify the expenditure OF the mod
crate sum necessary for the conduct of such
IN Office.