Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-04-21


paid to the legal heirs in case of death.
Representative Gillett of Massachusetts.
chairman OF the committee, will call the
bill up in the House at the first oppor-
tunity. He Is firmly convinced that the
expense Of the system would be more
than made up by the increased efficiency
OF the service.
Not Civil Pension System.
The report Of the committee, white or.
dered yesterday. was not made until this
afternoon.
This BILL" says the report, which is
made by Chairman Gillett of the commit
tee. is measure to retire employees sc
far as possible at their own expense and
Is not intended to be a means of establish
ing civil pensions. It provides for retiring
on annuities those employees whose ad-
vanced years have decreased their capac-
fty for service, to provide for the
payment OF these annuitfes by
deduction from the salaries of the
each employe all deductions from all his
own salary so that IL an employe resigns
from the service he may have all OF the
fund he himself accumulated. and that
his heirs may have in case OF death.
In providing the annuities for those en-
plOyes who are now superannuated or
soon will be, and from whose salaries
the necessary deductions cannot be made.
In effect the plan Is compulsory savings
account for each employe.
The existence OF approximation In
the civil service to q serious extent has
long been admitted and has been sllm-
marized In report made by this COM
tieth Congress In reporting retire
ment bill similar to this one.
President TAFT In his annual message
In December, 1900. commented upon the
nNo oAfA Frx-, ks~~-~ -
almost every member Of the cabinet in
cluded q discussion OF the situation in
his last annual report.
THE four steps which can be taken
to meet the situation are: First. q
straight civil pension: second, gen.
eral fund to which employees and pos
sibly the government Will contribute,
out OF which pensions may be paid !;
third. the substitute plan OF retiring an
employe at half pay and hiring a sub
q compulsory savings plan. separate
account for each employe, every tub
on its own bottom
Straight Civil Pensions.
"The apparent advantages of a straight
civil pension plan are its simplicity In
meeting the problem and the attraction
which 1t gives to the service: Several
objections are raised to this plan. The
first IL cost. The cost In England amounts
to more than Is per cent OF the annual
pay roll.
'-The second objection is that such
pension soon gives the employees the be-
lief that the coming pension is right,
and once that pension Is partially earned
by some years of service, II Is unjust to
prevent earning OF the pension. 1t Is
charged, rightly or wrongly, that the con-
seQuent clogging of the service with dead
wood is worse than the superannuation
evil itself.
Another objection is raised that Con-
gress would consider such a pension in
fixing salaries. and consequently en-
ployes would be paying for pensions.
salaries. A fourth objection ia the ques-
tion whether public sentiment will per-
NIT such plan
Flat Rate Deductions.
The report says that the advantages
Of a. plan whereby all contributions by
the employees and the government are
ing deducted from ali salaries. and
then all pensions being. paid out Of this
fund, are so obvious that 1t is always
tho first to receive consideration But
according to the report. are its actuarial
unsoundness and the strong objections
Of the employees after It has once be-
gun to work out results.
The committee says that 80 many
are evident to the substitute
plan that II has not been advanced by
any careful student OF the problem.
England, it is pointed out. had dis
astrous experience with this plan fifty
years ago. TT would disorganize the
service, the report says. make 1t diff
ficult to get good clerks-impossible
in the lower grades-and work inJus-
tice in almost every instance.
The Plan Reported. Il
Concerning the compulsory savings plan
embraced by the bill favorably reported.
the report says:
ings plan is to deduct from each mans
salary an amount each month which.
with interest. will be sufficient to buy
him a fair annuity at the age OF retire
ment, but which savings he may have at
any time upon leaving the service or
which would go to his heirs in case OF
death.
It's great advantage is that every man
gets back what he puts in and nobody
profits at the expense OF another. Such
a plan is actuarily sound and it could
at any time be ended or merged into
another plan without injustice to any
one or any difficulty or confusion. It
would not give a vested right to a job,
but would make 1t possible for chiefs
to dismiss employees for cause, with no
fear Of throwing the employees out to
starye. -
"a number of objections are made to-
this plan, the strongest being that the
immediate deduction from salaries. in
some cases as high as to 10 per cent
would be a great burden Ito the employees
to which they could not; adjust them-
selves. 1t has been suggested by ssome
that such plan would Eventually result
In general increase of salaries Some
Of the employees are opposed to it more
especially outside OF the District of Coz
lumbla. The diniculty. of caring for. So
called past Service IL another roint
made .,s-sesss-