The Washington times., 1907-07-27
K ee p Commissions
Proposal Goes to
President.
Government to Provide
For Those Now
in Service.

Uncle Sam, insurance agentl Why
not?
A subcommittee Of the Keep commits
sion has recently completed the draft OF
biz intended TO carry out an annuity
sy stem for Government clerks. This bill
has received the sanction OF the whole
commission. and will soon be sent to tae
President for his approval and sub1nis-
sion TO Congress.
Il Is claimed by those familiar with
the proposed plan that II Will be
happy solution Of the difficulties and OBJ
jections that have been pointed out in
the bills heretofore presented for ac-
comphshing the same purpose. and at
the same time will meet the persistent
agitation to provide old-age pensions.
or retiring allowances, for superan-
nuated employees.
Briefly stated. II Is proposed that
from the salary OF each employe an
amount sufficient TO purchase his own
insurance, or annuity on reaching the age
Of seventy, shall be deducted from his
monthly salary. the Government acting
as custodian aud being responsible for
the fund The amounts deducted from
salaries viii, OF course. vary with the
age OF entering the service. and with
the amount OF salary.
Explains Workings of Plan.
DR.. George ". Leadley. OF the Depart
ment Of Commerce and Labor, who has
made a study Of the retirement question,
and who IS a member OF che ,subccm-
mittee OF the Keep Commission which
drafted The new measure, today made
the following statement in reference 10
the proposed system:
The amounts deducted from salaries
will In no sense be assessments. un-
justly burdening the younger employees
for The benefit Of the older. Instead. II
is proposed that the sums shall be set
aside as savings 10 the United States
Treasury BY each individual empioye for
his own ultimate benefit, or that of his
family. and with the knowledge that
at compound interest. the total amount
Will. at the age Of seventy years, he
sufficient 10 purchase a reasonable an
nulty.
mo employe Will in any way contrib
ute to the retirement OF other employees.
nor will the savings of any employee De
diverted TO another's use. This fact
is thought to be one OF the strongest
points in favor OF the system.
Four Ways of Settlement.
on arriving at the age Of retirement.
the enploye may convert his savings
with the interest into one Of the fol-
lowing options: First, one cash sum;
second. an annuity payable throughout
life; third. an annuity payable through
out life, with the provision thar in
case Of death Of the annuitant before
he has received in annuities the amount
Of his savings with interest, the balance
shall be paid to his estate; fourth. an
annuity for a limited term of years
But II is not merely the empiove
that remains in the service until he
reaches the age Of retirement who will
benefit by tins measure. \ person sep
arated from tie service in any man
mr. before that age will have to his
credit a sum of money which he will
be free to withdraw. If It amounts To
$1,000. and he has been in the service
not less than twenty years, he NAV
withdraw IL under any one OF the fore
going options. In case of his deat,
in the service the amount OF his sa,-
inss with interest will be paid to his
estate.
Cares for Present Superannuated.
THE second part of the plan takes
care Of employees now in the service.
If aged employees are entitled to anv
assistance at all IN consideration of
their past services. or II the service
would be improved by their retirement.
the Government should provide the
funds. 1t is, therefore, proposed to give
Continued on Ninth Page.)