The Washington times., 1910-01-15

ihat contributory annuity plan Is
the only advisable method Of retiring
superannuated Government clerks is the
conclusion reached in the report sent
to the Senate today by Commissioner Of
Labor Nein on the approximation sys-
TEN Of Great Britain.
The reEert. which was prepared by
Herbert D Brown, actusry to the
House and Senate Committees on Re
form in the Civil Service, shows that
England's century OF experience with
the retirement Of its government en-
Dloyes. first by conuibutory plan, and
then by a straight civil pension list. has
Ted TO the final conclusion that. for the
good Of the service and the employees.
the contribUtory plan is the better Of
the two.
England only few months ago made
practical return TO the contr1butory
plan
After sketching Great BrItain's vari-'
Gus experiences, the report rpekes these
conclusions
Century Of Experience.
The conclusions 20 be drawn from
Great Britain's century Of experience
an peusiOning its civil employees are
very definite That experience shows
that pensions paid out Of the public
treasury as pure sratuities are certain
70 be taken into account In fixing sal
aries, and a pension system thus be
comes in effect, a contributory sys-
TEN As soon as the employees realize
that they are contributing 10 their own
pension they at once demand that, on
separation from the service for any
cause whatever. the value Of their con-
tri5utiOns shall be returned 10 them in
some form.
II is in recognition Of the reluctance Of
human nature 10 give something for
noJninE-shown first by the officers OF
me Government IN taking the pension
INTO account in fixing salaries, and
next Dy The employees IN their unwilling
ness 10 forfeit their contributions under
any clCcl5flstance-thaL the pension IS
tenn Of England was modified bv me
act Of Septembe %. 1899.
The 1ull significance Of the final ar
lon OF parliament in amending the var
-p-s experimentation acts. especially the
act OF 1873 by the act Of 1905 Is MOI
brought out IN the parliamentary de-
oateS- ~ iS really more than merely
q redistribution scheme" as character-
lied By Atr- HobhoUse in the house or
commons for 10 comedies the right Of
employees 70 the return OF theoretical
contributions Actual deductions from
salary Of employees were not couterT-
Plated by the former law
Figured n Salaries.
IN the recognition Jy the government
Of The fact that contributions are viz
tUaliy oxaCted from employees through
the practice Of taking pensions into &C
count 81 fixing salaries. lies the siEuff-
canoe OF this last legislation In this
last act the government puts ? legal
stamp on the tTannuatiOn scheme Of
England as CoutTlbutory plan and not
a pension system at all in the strlCtest
dictionary nearing Of the term pension
as "a regular stipend paid By govern
meut, that Is paid out Of common
treasury
The first lesson for other countries
seeking light from the history Of Eng
lisH approximation schemes is there
fore this
The logical plan 70 adopt is a coutri-
butOTE plan since a pension system Is
certain TO be treated as 70 COntrfburory
system and since Il is also far more
costly Better than a COntributSry plan
III the beginning worked out on scien-
tine lines with definite -Slationship
between contributions and benefits 10
make II equitable as between all classes
Of employees rather than a pension in
the beginning anu EHssfly a Datched-up
arrangement the fairness OF which is
open 10 question.
otneT valuable lessons may be learned
from Great Britain-s experience in re
firing civil employees. II has teen shown
that not all contributor plans are good.
To De satisfactory a cOntribrtor- rlars
must be based OF certain fundamental
principles
Placed It Interest.
The contribution: should be placed in
fund and invested at interest under
guarantee Of the government. separ-
ate account being kept with each con
tributor- Failure &c fund the contribu-
tons Of the employees under the plan
or 1884 led 10 unnecessary znisspprehen-
sion and discomfort.
No account having been kept Of the
amounts received BY the government IN
contributions from the employees and the
amounts returned to them in pensions, it
was not known whether the government
had gained OF lost by the transaction.
Nursing the belief that they had paid
in more than was ever returned 70