Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-03-16
EARLY REPORT HOPED
Cummins Clerks Retirement
Bill Sent to Committee.
SOON TO BE TAKEN UP
Pension Based on Deductions From
Employees Salaries.
COMPOUND INTEREST ADDED
Measure the Result of Two Years.
Study-Congressional Ap-
proval Counted On.
COMPOUND INTEREST ADDEI

proval Counted On. .
Following the introduction yesterday
afternoon of his comprehensive bill for
the retirement of government employees
Senator Cummins hopes shortly to put in
bill for the general reorganization of
the civil service and providing regula-
tons for the promotion, demotion and
dismissal Of those on the government pay
roll
The retirement bill. put in yesterday,
was referred to the Senate committee on
civil service and retrenchment, of which
Senator Cummins is chairman. He an
| nounced today that he would call an
early meeting of the committee to con-
| slider the measure, and hoped to get a
report on it before the Senate without
protracted delay.
The retirement bill which Mr.. Cummins
has introduced has required about two
years of study. He. has held frequent
| consultations with experts in and out of
the government service: and he has re-
ceived help and data from the President S
efficiency and economy commission. The
measure differs from any which has here
tofore been proposed for civil service re-
tirement. AS it requires no contributions
from the. government after it has been
started, Mr.. Cummins has strong hopes
of getting congressional approval.
Clerks Grouped in Two Glasses.
Section one of the bill provides for the
classification of civil service employees,
and generally for their compulsory re-
tirement as follows:
That from and after the date at which
this act takes effect the employees of the
permanent classified civil service of the
United States, except postmasters, shall,
for the purposes of this section, be divid-
ed into two groups as follows, to wit:
Group one shall consist of the follow
ing described employees, to wit: Railway
mail clerks. city letter carriers, rural let
ter carriers and mechanics.
Group two shall consist of the follow
ing described employees. to wit: All en-
ployes not in group one.
THAT each employee falling within group
one shall retire from the classified civil
service of the United States upon arriv
ing at the age of sixty-five years, and
each employe falling within group two
shall retire from such service upon ar
irving at the age of seventy years.
Provided, however, That if within
tnlrty DAYS DeIOre any Sucn employe
reaches the retiring age the head of
the department or Independent office
in which he is employed certities to the
Secretary Of the Treasury that by rea-
son of special efficiency and his will
ingnesS to remain in the service con-
tinuance of such employe therein would
be advantageous to the public service,
such emplOye may be retained for a
term not exceeding two years, and at
the end of the two years he may, by
ifti1 no
an additional two years, and SO on;
provided, however, that after the first
day of July. 1916, no person belonging to
any of the classes of employees enumer-
section shall be continued in the serv-
ice beyond the ages of retirement as
herein provided
Deductions From Pay.
Section makes provision for the con-
tributions from employees as follows:
That beginning with the first month
after this act takes effect, and monthly
thereafter. there shall be deducted and
withheld from the salary, pay or COM
pensation of every employee in the CLASH
fled civil service of the United States. ex-
cept postma sters, who shall enter the
service after such date, an amount, COM
puted to the nearest tenth of dollar that
will be sufficient, with interest thereon
at per centum per annum, compounded
annually, to accumulate for each such
employe on arriving at the age of retire
ment. as hereinbefore provided, the sum
of $500. Provided, that no deduction
shall he made from any such employe
while receiving less than $1,000 per year.
And provided further, that no deduction
shall be more than 10 per centum."
Deposit of Contributions.
Section 3 specifies that the con-
tributions shall be deposited, in indi-
credited. with compound interest at 1
per cent. to the individual employe. But
the money, it is provided, may be de-
posted in savings banks designated by
Secretary of Treasury, providing that
the banks pay not less than compound
interest of per cent and furnish as
security United States or other ac-
credited and approved bonds. If saw
ings banks will not take the money
at the interest rate specified, the money
may be invested in the securities speci-
fled in the bill.
To aid the Secretary Of the Treasury
in depositing or investing the retire.
ment funds. provision is made for a
beard of investment. composed Of the
Treasurer of the United States, the
controller of the currency and two per-
sons designated by the President from
among the classified civil service en-
ployes.
Payment on Retirement.
Continuing the bill nroyides.