Evening star. [volume] (Washington, D.C.) 1854-1972, 1908-04-26
.e|llEH RETIREMENT BILL
INTRODUCED YESTERDAY
AFTER MANY HEARINGS.
It's New Provisions-Are Limits
From IS to 70 Years-Methods
Of Withdrawal.

Representative Gillett Of Massachusetts,
yesterday introduced a bill providing for
the retirement Of superannuated en-
ployes OF the government. This bill is
the result OF several weeks OF hearings
before the House committee on reform In
the civil service. and has been drawn, II
ID understood, in conformity with the tes-
timony OF experts who testified at these
hearings.
The bill provides: THAT, beginning
with the first day OF July. next following
Its passage. there shall be deducted from
the monthly salary Of every classified off,
Ger or employe an amount, computed to
the nearest tenth OF q dollar. that will be
sumctent. with interest thereon at 3Iz
per cent per annum. compounded annual
~. 10 purchase from the United States
an annuity payable quarterly throughout
life, for every such employee on arrival at
the age OF retirement as hereinafter pro-
vided. equal to " per cent Of his annual
salary Tor every four years Of service or
major fraction thereof. between the date
OF the passage OF this act and the arrival
or the employe at the age OF retirement"
The deductions are to be based on such
an annuity table as the Secretary OF the
Treasury may make up. All amounts de-
Quoted are to be deposited In the United
states Treasury, and shall be credited,
with interest, to an individual account
OF the employe from whose salary the de-
auctions have been made. From time to
time the money deducted and the income
thereon may be deposited in savings
banks selected by the Secretary Of the
Treasury.
These savings banks must pay at least
on these deposits. Savings banks so Sc
lecfed must give bond, as they are re-
quired by the Secretary of the Treasury.
The money may also be invested in rail-.
yNNQA 10 nrA f-f>
the Secretary of the Treasury Any de-
hciency In the fund created under the bill
shall: be paid out Of the Treasury.
Method Of Withdrawal.
Upon retiring at the age OF retirement
the employe may withdraw his savings
with the increment Of interest under any
sum. in an annuity payable quarterly
throughout life. in an annuity certain for
q limited term Of years payable quarterly
II after retirement the employee does
not avail himself OF one of the foregoing
options. but leaves the amount due him on
deposit. interest at the rate OF per cent
q year on the original sum so left on de-
post Is to be credited for not more than
twenty years, and If not then withdrawn
the money shall be covered into the
Treasury.
The measure further provides that when
an employe absolutely separates from
the civil service prior to the retirement
age he may withdraw his savings in one
sum. and In case he has been In the
service not less than six years he may
on his savings. In case his savings
amount to at least 81 900 and he has been
In the service not less than twenty years
he may withdraw his money under any
one Of the mentioned options. In case OF
the death of an employee while in the
service 1t Is provided that his savings
and interest shall be paid to his legal
heirs.
A New Feature.
One Of the new features of this SUPER
annuation measure is the provision under
section 6 that beginning with the first
day Of July following the passage of the
act there shall be deducted and withheld
from the monthly salary of every person
entering the classified service to whom
this act applies during the first six
months of his employment an amount
equal to one-sixth of his monthly salary
for each of the six months. and the
amounts so deducted shall be deposited in
the United States Treasury to the credit
Of a special account" which, under the
terms of the bill. will be used to defray
the expenses of immediate requirements
for approximation.
Section seven provides that all promo
tions Of persons affected by the provisions
of this bill shall not take effect until three
months from the time they are made. and
the difference between the old rate of pay
and the new for these three months shall
likewise be deposited to the credit OF the
special account.
Retirement Age.
The retirement age is fixed at sixty-hve
years for group one. sixty-five for group
two and seventy years for group three.
The various branches of the service to
be designated by the President for inclu-
sion In the groups.
Beginning with the first of July, fol-
lowing the passage Of the act every EN-
ploye shall be entitled to retire upon
the designated age, and. in add
dition to the annuity provided for by his
or her own contributions Of salary. to
receive from the fund an annuity equal
to / " per cent Of the total compensa-
ton received during his or her service
up to the date of the passage OF the
act.
1t Is provided that the Secretary OF
the Treasury shall make detailed reports
to Congress annually showing all re-
ceipts and disbursements under the act