The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1910-12-29
Retirement AS Provided In
Gillett Bill Covers Every
Contingency.
NO CHANCE FOR CLERK
TO LOSE SINGLE CENT
Every Penny Paid In viii Come
Back TO Employe With
Interest.
CCondnued from FRS, Page3

the deposits Of others so that each
employee shah receive fun return on
the money set aside ~ him. 1t IS
important that the amount set aside
should be sufficient 10 buy An ade-
Quate annuity, else the condition OF
the EUperannuated emplOye viii be
little improved, and the aid OF the
Government ultimately be solicited
Third-The annustIes to be paid
employees on retirement should be
graduated according TO the length Of
service and amount OF salary and in
such manner that the monthly de-
posts required from employees for
the creation OF such annuities shall
be in no case excessive
Fourth-The fund necessary for
the payment Of aunUities on ser
vices rendered prior 20 the adoption
OF the plan should De paid by the
Government. rather than by any
form Of tax upon the younger en-
plOyes-
Best Principles Adopted.
These four principles have been adopt
ed as essential 70 the construction Of
q correct plan, such as embodied in the
Gillett bill, after study Of the various
schemes which have been brought 70
the attention OF Congress during the
past twenty years. and those which
have been tried by other governments
What Congress VIII adopt Is a recfre-
r1ent plan that IS most economical and.
at the same time just and equitable 10
al the employees such a plan is most
nearly found IN the Perkins or Giuett
pills, both Of which are based on the
oontributory idea as outlined in the four
principles.
The plan can be put in immediate
operation without increasing the annual
expenditures Of the Government by one
lois -.
mathematician 10 see that paying the
annuities for back service and thus es-
tablishing = seIf-suppOrting plan Of re-
ti-ement Whioh would DO away with that
annual loss o. S1,200000. the Government
would effect an immediate and perma-
nent economy
II annuities are paid for services rem
dered prior TO the adoption OF the plan,
the obligation for their payment would
seem 70 rest with the Government which
has had the benefits Of those services
Thus IL would not be necessary 10 tax
other employees, the spirit Of the plan
being that each employee or his heirs
Method Of Payment.
On reaching the axe Of retirement, the
employe may take his or her savings in
one OF these three ways:
IN an annuity payable quarterly
throughout life, with the provision that
IN the case Of the death Of the an
nUitant before he has received IN an
nUities the amount Of his savings plus
the interest credited thereon, the bal
ance shall be paid 10 his legal heirs.
and IN one sum
The age Of retirement varies. the ser
vice being divided for this purpose into
three groups, the first group consisting
OF railway postal clerks, who may re-
tire at the age Of sixty the second group
consisting OF letter carriers 70 be re-
tired al sixty-six, and the third group
comprising al the remaining branches
age Of seventy
Since II is often to the advantage OF
the service that an old enploye be re-
tanned because Of some special knO7Tl-
edge or skill, provision is made for the
retention Of such emplOye after the age
Of retirement. for two years and Tor
on certificate Of the head Of the depart
meut in which he Is employed that he
Is efficient. and that his services are ad-
vantageous TO the Government
Before Retirement Aga
UPON absolute separation from the ser
vice before reaching the age Of retire
rnent. whether BY resignation or dis
u1IssaL and only in such event. the en-
ploye shall have the privilege Of with
drawing his Accommodations in one sum,
or. II the amount TO his credit be at
least 81 900 he may use his savings TO
provide an annuity at his attained age
In case OF the death Of an empIoye
while in the service. the amount TO his
credit shall be paid 10 his legal heirs.
These provisions are among the strong
est reasons why the contributory plan
should be preferred 10 the straight pen
sion, which means that an employe
must actually live 10 the age Of retire
Ynent before he can get one penny from
the pension fund, although this fund
consists in truth Of salary he was not
given because OF the pension
There is no contingency whereby an
enploye can lose q single cent he has
Bald into the contributory retirement
SVnd. whereas the employe loses every
Esing under the straight pension plan
81 he resigns OF IS dismissed from the
service
Under the coutributory plan the rela-
tives OF the employe-probably those de-
pendent upon him Tor support - would
receive all the contributions he had
made and interest thereon in the event
OF his death, whereas under the straight
pension plan his relatives receive moth
ing and perhaps be left destitute
Question Of Protection.
Which plan affords the greater protec-
ton 10 the employe and his dependent
family2 That is question to be
weighed.
Not one Of al the foreign retirement
schemes. so far as known offers TO the
United States a model. Germany, ike
England. grants q straight pension TO
its civil employees, while other countries
such as France. Holland. Belgium. Aus
tria. and Turkey have plans which re-
ouire fiat rate assessments on salaries
All civil pension and general fund as
sessment plans being discarded, the in
vestigator IS brought. by a process Of
elimination, TO consider as the sound
est the most equitable, and the most
expedient plan OF retirement for civil
service employees. a savings bank or
savings and annuity plan based on de-
auctions from salary that are sufficient,
In each case, for the purchase OF an
adequate annuity al the age OF retire