Daily press. [volume] (Newport News, Va.) 1896-current, 1907-08-02
WASHINGTON LETTER
IspecIal correspondence.l

u report un tuS TrlTetncllt ol ubcU anu
mcapncitated employees of the govern
mcnt. accompanied with a draft of
bill In proper form for submission TO
congress. The committee dlsnpproves
any proposal that pensions he paid to
retired employees wholly out of the
federal treasury and all measures pro-
vlding for uniform deduction OF Il
given per cent or Nat rate assessment
on salaries. all s'ich proving on analy-
els unfair either to taxpayers or en-
ployees.
In reference TO the plan recommend
cd by them. the members Of the com
mlttce say they hnvc taken pains not
only 10 study the details OF this plan,
as well MS many others. but TO submit
1t TO the criticism OF several expert
professional nctuuries and to have com.
putntions made So that I'LL necessary
data may he ut hand The general
idea OF their measure is that cach In
dlvldunl shall provide the necessary
fund for his own retirement.
Annuity on Reaching Seventy.
1t is proposed to pay every employee
In the civil service on retiring Mt the
age Of seventy years OF upward nu
annuity equal to 10 per cent OF his pay
for every year of service. To Illus
tratc, tnkc an employee who entered
the service ut twenty years of age and
received a salary OF $1,000 q year
through nifty years nnd retired at sew
cnty. One and one-hfth per cent of
$1,000 Is S1S. This amount multiplied
by fifty 0,ls ycnrs of serylcc) gives
5000. tho amount of his annuity for the
remainder OF his life. To provide the
fund from which to pny this annuity
n deduction will he made from the
monthly salary of the employee of such
amount ms Will be sufficient. with per
cent compound interest, to purchase
such annuity on the arrival OF the en-
ployec at the age of seventy years.
Calculating Monthly Reduction.
From accepted calculations of insur-
nncc companies 1t Is found that SCOTS
Is the sum which must he accumulated
TO purchase nn annuity of 5000 for lie
for person seventy years of age. Tho
next step Is to determine whit sum
must DO set aside monthly to nccumu-
late Mt 4 per cent interest $6,GTS during
the employees fifty years of service.
y deposit of 81 per month for fifty
years, with interest compounded ut 4
per cent. amounts TO S1.S1l4S The
number of dollars per month necessary
to accumulate $G,G1S Is obtained by
dividing G,6IS by 1.S71.ls. This gives
S3.5I to be deducted from II salary OF
500 month to provide the annuity
of 5000.
The nrithmetical process above H.
Illustrated applied to all rates of salary
and all terms OF service Will result in
nm annuity for each person proper
toned to the amount OF his salary and
the number OF years he has served the
government.
Retirement Not Compulsory.
Proper provision is made for tho
withdrawal Of the employees nccumu-
lated savings with interest in cuse he
leaves the service before reaching the
age OF retirement. While the age of
retirement Is fixed ut seventy general
ly. yet In certain lines 1t Is recommend
ed TINT 1t he made sixty-fivc and sixty
=
compulsory. as competent persons mny
be retained as long rs they wish to
remain and can render adequate serv-
Ice
TO provide for the retirement OF en-
ployees who are In the service when
the bill Is passed II Is proposed that
the government shnll contribute the
amount necessary to represent their
denominations from the time they en-
tered the service. From the passage
of the bill they Will. of course, mako
their own contributions upon the ba-
sis above described.
Government to Aid.
The sum contributed by the govern
ment to make up the purchase money
for tue annuity of each employee can
not he withdrawn by the employee on
leaving the service before retirement,
nor can 1t be taken In cnsh upon re-
tlrement. but is to he used only for the
purpose OF his annuity. payable qunr-
terly during life. A table bnsed on
careful calculations shows that the to-
tai amount the government would con-
tribute the first year Is about S725.-
600. This increases gradually from
year to year till the thirt!eth year,
when 1t Is $1.7iG.5G1, from which point
1t gradually diminlshes to zero. and the
system becomes self supporting.
New Blue Book.
Director North OF the census bureau
is sending out circulars TO the heads OF
the government departments asking
for data which Will be used In the
publication of the governments blue
book
This book in recent years has grown
to enormous proportions. Before the