The Washington herald., 1908-03-11
CUTS GORDIAN KNOT
Superannuated Cared for i'll
Proposed Law.
IS FAVORED BY coNGRESSMEN
Bills Introduced Yesterday TO Care
for Retired Government Employees
SRiG To EmbOdy All Essential Ideas
for Placing Big Expense on Uncle
sam for Civil service PensfOnN-

Two bills. identical in character and
both aimed at the practical solution OF
the eYer-yexing problem Of the care of
superannuated clerks in the departments
of the government, were introduced in
Congress yesterday, while the House
Committee on Reform in the Civil Service
also considered means of cutting this
GOrdian knot
The method Of caring for the old clerks.
as proposed in the legislation introduced
yesterday, VIII, it is understood, enectu-
ally provide for all old clerks without
putting upon the government tine burden
of civil service pension fund.
These measures, which are practically
the same as the one recommended by the
Keep Commission, are practical and will.
it is believed. receive the support OF both
branches Of Congress. 1t was pointed out
In this connection that the scheme OF
Herbert D. Brown, former employe of
the Department OF Commerce and Labor
which was for all intents that recon-
mended by the Keep Comniission-obvi-
ates. after a certain number of years, the
necessity Of any considerable amount of
government aid.
Question Has Interfered.
This question of government aid. or
rather government pensions has always
interfered with the passage OF a bill
which had similar end in view. With
model bill once brought before Con-
gress, and with influential members in
favor of its passage, II IS said that the
matter will ultimately be solved along
the lines laid out IN the Keep Commis-
sion's report and in the bills referred TO.
The hearings Of the committee were de-
voted principally TO the testimony OF Mr.
Brown. The committee seemed to be
much in favor of the speedy solution Of
the question Of the care OF the old gov
ernnent clerks and will take up the work
Of finding a solution to-day
The bills were introduced by Represent
ative Gillett, OF Massachusetts. and Sena-
tor Perkins. The first section Of the Gil
lett bill reads as follows:
THAT beginning with tie first day Of
July next. following the passage OF this
act, there shall be deducted and withheld
from the monthly salary pay compensa-
tion of every officer or emplOye Of the
United States to whom this act applies
an amount that viii be sufficient, with in
terest thereon at 4 per centum per annum.
compounded annually. 20 purchase from
the United States under the provision OF
this act. an annuity for every such en-
plOye. on arrival at tho age OF retirement
as hereinafter provided. equal TO 11z per
centum Of his annual salary. pay. or com
pensation for every fun wear or service.
or major fraction thereof. between the
date Of the passage Of this act and the
arrival of the employe at the age of re-
tirement The deductions hereby provided
for shall be based on such annuity table
as the Secretary OF the Treasury may d.
rect, and interest at the rate Of 4 per
centum per annum. compounded annu-
ally. and shall be varied 20 correspond to
any change in the salary OF the emplOye.
To Invest the Money.
The Secretary of the Treasury is di-
rected TO invest the money thus secured
in government bonds. State or municipal
bonds or railroad securities answering
certain definite requirements as to inter
est, dividends. and general value. Any
deficiency ia the fund thus created to
carry out the provisions Of the act is to
be paid out OF the treasury
On the retirement Of an employe the
money he has saved. with the interest
may be drawn out Of the treasury in one
sum or as a quarterly annuity through
life or as a quarterly annuity with the
balance at death 10 80 20 the estate or
as a quarterly annuity for a certain lin
ited term Of years An emplOye who
leaves the service is entitled to withdraw
his savings with interest
The retirement age is Sfxtv wears for
employees in group l. sixty-five years in
and the President is empowered TO desig-
nate the branches Of the service 10 be
included in each group.
In addition 10 the amount already pro-
vided from his own contributions. the re-
tired emplOye is given in the bin FOR the
remainder Of his life an annuity equal TO
1 per cent for groupe /. IA per cent for
grouqe 2. and 1i2 per cent for groupe 8 of
his average salary during the last ten
years of service for every year he shall
/ have been in the service prior 10 the
/ passage of the act In cases where the
/ salary OF an emplove is more than $500
/ a year the annuity IS 20 be calculated on
a basis Of $500.
The sum Of S50.00o IS carried in the bnl
! TO pay the expense or carrying II into
effect the act Of the fiscal year Of 1909.
! The Secretary of the Treasury is en-
powered TO keep all necessary tables,
/ records compute the various annuities
( and amounts 70 be deducted from sal
aries and TO otherwles carry out the
provisions OF the act The act Is made
/ 10 apply TO all executive civil service
employees. except persons appointed by
| the President and confirmed by the Sen