Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-05-06
ANNUITIES NOT EXCEEDING
$500 ARE PROVIDED
Employees to Contribute From Sal
aries to Provide Fund.
WILL BE SAVING EVENTUALLY
Cost During Twenty Years Will
Be $227 900 Annually in Ex-
cess Of Loss Now Sustained
by Superannuation.

President Taft sent to Congress
today a message approving the
plan of the commission on ecen-
omy and efficiency to retire all
government employees upon reach
ing the age of seventy years on
annuities of one-half of their sal
aries. with a maximum OF 5000.
The plan provides that employees
entering the service after adoption
of the superannuation scheme
shall make annual contributions
from their salaries to provide a
retirement fund.
The commission estimated that
while the plan would cost the gov
ernment $4,000 year during
the next twenty years in excess
of the loss sustained now by super
annuation, the saving to the gov
ernment during the succeeding
sixteen years would equal the en-
tire cost Of inaugurating the
scheme.
Text Of the Message.
The message reads as follows:
ITO the Senate and House of Representa-
tives:
Il transmit herewith a report of the
commission on economy and efficiency on
the subject OF the retirement from the
classified civil service of superannuated
employees. To the plan proposed in this
report, and set forth in detail I'm the ac-
companying draft Of bill. l give my un-
qualified approval. because l believe il
to be sound in principle and just both to
the government and to its employees.
1T Is unnecessary at this time to dis
cuss at length the necessity for adopting
some plan by which the service may be
relieved of the loss from the inefficency
of the personnel caused by the retention
on the rolls. after long and faithful sery-
ice, of those who have passed the age
when they can perform a full days
work. The subject Is one with which all
administrative officers are familiar. Ii
has been referred TO in several messages
which l have sent to the Congress and
In many reports of the heads OF depart
ments. 1t Is conceded by every one ac-
quainted with the situation that some
action must be taken.
Under present conditions the loss TO
the government will continue to increase.
Some method other llan the summary
discharge of employees when they become
inefficient on account of age must De
adopted. The present practice OF re-
tanning such employees on the rolls and,
as they grow Older, expecting from them
a smaller quantity and lower grade OF
work cannot continue indefinitely with
out seriously impairing the efficiency OF
the entire service and imposing upon
the government cost that VIII be IN eA-
cess of the expense TO be incurred by the
adoption of a reasonable plan for remedy
ing existing conditions.
Proposed Plan of Retirement.
1.-The plan submitted by the commission
contemplates that each employe In the
classified service in the executive de-
partments and establishments at Wash
ington shall be retired as soon as he
reaches the age OF seventy years, ana
shall receive thereafter an annuity equal
TO one-half for his annual salary, with
the provision that no annuity shall ex-
ceed 5000.
Il invite particular attention to the
fact that the plan provides that each
person hereafter entering the service
shall pay the entire expense of his own
retirement by contributions from his
salary so that when he reaches the
age of seventy years the fund he has
accumulated will provide his retire
ment allowance. In such case the
only contributions OF the government.
IL any, will be the difference between
the interest earned by his savings de-
posted in the Treasury and Invested
by the government. and the rate or
per cent per annum. So lar as concerns
This class OF persons, there certainly
can be no reasonable objection TO the
plan, and l doubt il any plan more
beneficial both TO the government and
to the employe could be devised.
Employees Now in the Service.
.It is evident that the application of
the plan only to those who hereafter
enter the service would not relieve the
present condition due to approximation
nor save the government from the con-
stantly increasing loss from that cause.
II is not practicable for those now
seventy years of age, or for those near
ing that age. to provide the cost of re-
tirement entirely at their own expense.
To meet the existing situation and to
put retirement plan into effect i'm
mediately there must be some contribu-
ton by the government rms contri-
gregate than is now the government
loss from inefflciency due to superan-
nuation After a comparatively short
made by the government will be less
than the loss 1t would sustain If no
plan were adopted.
cit is proposed that an employe now in
the service who has reached the age OF
seventy years shall be retired and be paid
by the United States an annuity equal to
one-hsh Of his average annual pay for
the last FIVE years. but no such annuity
to exceed 5000 As to an employe less
than seventy years Of age II is proposed
that he shall be retired when he reaches
seventy on an annuity equal to one-half
of his average annual pay for the entire
period Of his service (no annuity to ex-
ceed 5000: and that there shall be de-
Quoted from his pay until he reaches
seventy years such an amount, not ex-
ceeding per cent OF his pay. as, with
per cent interest, will purchase his an
nuity. In the case OF IN enploye who