The Washington herald., 1907-10-20

geneous divisions. but 70 establish those
branches Of the main fund safely up0n
( this basis would not only be a most diff
F hcult task. but would probably not prove
/ as satisfactory a solution of the problem
as the proposed scheme
Compulsory Savings Account.
'The foundation Of the proposed re-
tirement plan is a compulsory saving ae-
count for each government employe. 20
provide for himself in old age or in event
Of physical incapacity prior 10 date of
retirement A certain percentage Of the
monthly wage Of each person in the
classified branch Of the civil service. suf-
hclent 20 provide @ fund upon retirement.
Of IL per cent Of his annual salary for
every full year Of service shall be with
held and deposited I'm the United States
. Treasury. at Z per cent, compound in
? terest, per aunum, IN the name OF and
70 the credit OF the empl0ye Upon abb
solute. separation from the service before
reaching the age OF retirement. and only
in such event, the employe shall have the
privilege Of Withdrawing his accumulated
savings in one sum, or il the amount of
the fund % his credit be at least 81 .00J.
he shall have the option Of using his saw
ings to provide an annuity at his at
tanned age.
"Jn case Of the death Of an employe
while IN the service, the amount TO his
credit shall be paid 10 his estate Upon
attaining tie age. OF retirement. the en-
ploye may withdraw his savings in one
Of the following methods
Option J. In one sum
A ANN H.~r. az
oug life
Option 3 An annuity payable quarterly through
cut lie. with the provision that in case of the
dedtI o. the auuuitant before he has received IN
auuutics the amount q his savings the balance
shall be paid 70 his estate Plus interest credited
thereon.
Option f. An income payable certain for limited
term q years
The proper age for compulsory retire
ment in the civil service differs accord
ing 10 the particular division which Is
under observation. There are provided.
therefore. three groups into which va
riOus branches Of the service are to be
divided by the President Of the United
states, the age for the first being sixty
years, for the second sixty-fve years.
and for the third seventy years.
May Retain Expert Employees.
"As it is often to the advantage of the
service y retain an old empIoye because
Of his expert knowledge. it is provided
in the rules that In such case the en-
ploye may be retained, If he be willing
after the age Of retirement for two wears
and for successive periods Of two years
each, so long as in the opinion of
the head Of the department he continues
efficient
In order that the object Of the scheme
may not oe defeated in the case Of old
employees who viii not be able in the
years remaining before retirement 10 save
enough 70 provide a proper pension. il is /
necessary for the government to supple
ment the savings of these old employees
so that they may be retired upon a com
Portable competence. To attain this end
the plan contains the provision that an4
appropriation be made annually from
funds in the United States Treasury
which viii allow to pensioners in group
quarterly annuity equivalent to / per
cent OF the average salary received dur
ing the ten years preceding the date Of
introduction Of the system of savings for
each year Of service prior TO that date.
/ Ii per cent for group >, and / 1-2 per
cent for group g.
oldIlHS the plan DFieuY, therefore, the Z
employe is required TO provide for him [
self in old age by systematic saving dur /
ing his years of service, and the Federal I
government, as an aid 20 the scheme. /
guarantees an attractive rate Of interest. I
agrees to stand behind the plan, and TO
meet the expense Of operating it, and I
offers to help its present old employees I
who VIII not be able in the years remain /
ing before retirement 10 provide pen /
sions for themselves through their own /
efforts"