The Washington herald., 1908-04-26

Representative Giuett, of Massachu-
sets, yesterday introduced a bill pro-
viding for the retirement Of superannu-
ated employees Of the government. This
bin is the result OF several weeks of
hearings before the House Committee on
Reform in the Civil Service, and has been
drawn, it is understood, in conformity
with the testimony of experts who testi-
fed at these hearings.
The bill provides: THAT, beginning
with the 1st day OF July. next following
its passage, there shall be deducted from
the monthly salary of every classified
officer OF employe an amount. COM
puted to the nearest tenth of a dollar
that viii be sufficient. with interest there
on Al 80 per cent per annum, compound
ed annually. TO purchase from the United
States an annuity payable quarterly
throughout life. for every such employe
on arrival at the age Of retirement. equal
TO 10 per cent OF his annual salary for
every four years Of service or major
traction thereof, between the date of the
passage Of this act and the arrival OF
the employe at the age of retirement"
Are Based on Tables.
The deductions are to be based on such
annuity tables as the Secretary of the
Treasury may make UP. All amounts de-
Quoted are 10 be deposited in the United
States Treasury, and shall be credited
with interest. TO an individual account
of the employe from whose salary the
deductions have been made. From time
To time the money deducted and the In
come therein may be deposited In savings
banks selected by the Secretary Of the
Treasury. These savings banks must
pay at least II per cent interest d
year compounded annually, on these de
Posits. Savings banks SO selected must
give bond as they are required by the
Secretary of the Treasury. The money
may also be invested in railroad and
municipal bonds approved by the Secre-
tary Of the Treasury. Any deficiency in
the fund created under the bill shall
be paid out OF the Treasury
That upon retiring at the age Of re-
tiTement. says the bill, the employe
may withdraw his savings with the in
crement Of interest under any one Of the
three following options: In one sum, in
an annuity payable quarterly through
out life, in an annuity certain for a linn
tied term of years, payable quarterly.
IF after retirement, the employe 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 year on the original sum so
left on deposit, shall be credited for
not more than twenty years and if not
then withdrawn the money shall be COW
cred into the Treasury.
The measure further provides that when
an emplOye absolutely separates from the
clvl service prior 10 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 receive in
addition II per cent interest on his saw
ings. In case his savings amount 10 at
least 81. 900 and he has been in the serv-
lee not less than twenty years, he may
withdraw his money under any one Of the
mentioned options. In case of the death
OF an employe while In the service it is
provided that his savings and interest
shall be paid to his legal heirs.
One New Feature,
one Of the new features Of the measure
is the provision under section that be
ginning with July /, following the pas
sage Of this act. there shall be deducted
and withheld from the monthly salary
Of every person entering the classified
service 10 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 de-
posted IN the United States Treasury TO
the credit Of a special account which.
under the terms Of the bill. viii be used
10 defray the expenses Of immediate re-
tirements for superannuation.
Section provides that all promotions Of
persons affected by the provisions of this
bin shall not take effect until three
months from the time they are made
known and the difference between the old
rate Of pay and the new for these three
months shall likewise be deposited 70 the
credit Of the special account.
The retirement age is fixed at sixty-five
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 inclusion
in the groups.
Beginning with the first of July follow
ing the passage Of the act, every en-
ploye shall be entitled to retire upon
reaching the designated age, and in addi-
ton 20 the annuity provided for by his or
her own contributions OF salary, 20 re-
ceive from the fund an annuity equal TO
IL per cent OF the total compensation re-
celved 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 receipts
and disbursements under the act
This bill, it is believed, viii be reported
70 the House this season, although it is
doubtful If It can pass at so late a day
It has all the merits required in a super
annuation measure. but it is not a civil
service pension bill.
It IS asserted by friends Of the bill that
its passage VIII settle forever the bug
abOo of a civil service pension, which IS
continually staring Congress In the face.