The Washington herald., 1908-02-22
PENSION REPORT IN
Congress Gets Opinion of
Bill from Committee.
FOR GOVERNMENT EMPLOYEES
Declares that Good of Service and
Justice to the Employees Unite I'm
Demanding Adoption of Some Ade-i
quafe Retirement PIan-Oners
Measure to Meet All Objections.

The President yesterday submitted tn
Congress the report of the committee on
department methods on the subject Of
pensions for aged employees in the classi-
fed civil service.
The committee, which consists Of Law
renee o. Murray and Clifford Pinchot.
with its report submits a draft Of pro-
posed bill which provides for the payment
Of annuities 10 such employees upon re-
tirement.
1t is declared in the report that such
provision for the maintenance of en-
ployes after they have become incapable
of further service is desirable on two
grounds: That it will aid in the improve
ment OF the government service, and is
also an act Of justice to the employees
themselves.
Answers Some Objections.
The report says, in meeting the objec-
tiOns made TO the retirement plan:
The salaries paid are seldom sufficient
to admit OF laying aside anything for old
age. especially in Washington. where the
expenses Of living are now out II all pro-
portion TO the compensation received. The
average salary paid by the government,
according to Census Bulletin No. u is
only sl,o72. a sum sufficient perhaps for
celibates that cherish. but a paltry ambi-
ton, but most sssuredly not adequate for
persons OF commendsble aspirations or
encumbered with the responsibilities and
obligations OF family ties.
And your subcommittee believes that
a provision for retirement can be made
efficient. just, and successful only by re-
serving TO the government itself the ad-
ministration Of the plan.
1T has been urged that the government
keep clear Of association with any IN
dertaking OF retirement on the ground
that a measure for that purpose would
be used as an entering wedge, or it's ruins
would form a stepping-stone. for the es-
tablishment OF civil pension law. and
because the government ought not 10 en-
gage in the insurance business.
Must Have Federal Authority.
But retirement would be impossible
expect by Federal law, and We do NOT
discern any likelihood whatever that a
well-formulated- plan of retirement upon
a proper basis would ever lead to or pave
by the government. and We do not see
any reason why the government should
not in fuTtherance OF its own interests
assume supervision and intimate control
and management Of those features Of the
affairs OF its employees that so directly
affect its own welfare and are inseparable
therefrom-
Many efforts have been made to de-
wise a measure which would afford the
necessary relief al once 10 the service and
the employees, and scores Of bills on the
subject have been introduced IN Congress
None has succeeded. because each and
every one shows on analysis that il is un-
fair either TO the employer or 10 the tax
payer. or else that IL discriminates. IN
justly between different classes Of en-
ployes."
Provisions of Proposed BILL
The first and principal section Of the
proposed bill is as follows:
That, beginning with the hrst da7 Of July next
following the passage Of this act. there shall be de-
Quoted from the monthly sslary, psy OF compeusa-
tion of every oeer or employe q the United States
20 whom this act applies amount that would be
sufficient with interest thereon AZ 1 per centsm
per snnum compounded annually 10 purchase from
the United States. under the provisions Of this act.
I
the age Of retirement hereirafer provided equal
10 ~ per certnm u has annual salary pay. or CON
penSation for every full year Of serice. er major
fraction thereof between the date Of passage Of this
act and the arrival OF the employc at the age Of
retirement The Necessary deduction hereby provided
fer shall Be based slch annuity table the Secre-
tsry q the Treasury direct. and interest al the
rate Of per oentum per anDum compounded an
uually Such deductions shall be varied TO CORE
spond WITH any change in the salary Of the empoye
Treasury nS Their Bank
The funds so withheld are to be depos-
tied in the Treasury OF the United States
and be invested from time to time by the
Secretary OF the Treasury in State, mu-
nicipal. railroad. or other bonds approved
by him, the interest received therefrom
TO be returned TO the Treasury and rein
vested in the same manner. The earnings
are to be annually credited TO the indi-
vidual accounts OF the employees from
whose salaries the amounts invested
have been deducted. and the principal and
interest received from investment are to
be held and invested by the government
during the service of the employees TO
whom the money belongs while they re-
main in the service, and after retirement
as required for the payment OF the an
nuity II they select that option.
Upon retirement the employe may with
draw the money accruing to his account
under one Of two options. In one sum, or
in an annuity payable throughout life. in
quarterly installments. Should an en-
ploye so insured leave the service before
retirement. he may withdraw in one sum