Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1912-04-20
SENATE COMMITTEE IN
!. CHARGE FAvoRAsLv DISPOSED
Measure Provides For Government Aid
Until System 10 Perfected and in
Working Order Two Retirement
Groups Providsd-hew Funds Are to
Be Handled.

Will provide for a system OF pension
and retirement. In few days it is
expected that favorable report will
be made to the senate from the civil
service committee on the bill of Sena-
tor Cummins providing for the retire.
ment and pensioning OF superannuated
clerks and other employees in the gov
eminent service. This will not mean
that the legislation proposed necessar-
lily is to be adopted, but it will mark
step on a road never yet travelled
A favorable report for the Cummins
bill by the civil service committee will
be gain for the friends Of a retire
ment system. The obstacle that stands
in the way of legislation is that many
members of congress have a prejudice
against civil pension list They point
to the military pension list as heavy
drain on the government, and insist 1t
would be all wrong to provide for a
civil pension list. Many Of them, too.
take the view that the government
clerks and employees as whole are we'll
paid and that they ought to lay up in
their younger age snug sums for relief
in their old age.
Support For Both Plans.
In the agitation of the pension and
retirement system. there has been
strong support for a pension fund built
up by contributions of the employees
themselves. and appropriation for
straight government Appropriation for
pension purposes. 1t is plain that con-
gress will never pass straight pension
measure for the civil employees. 1t Is
equally plain, II an effective system Is
to be started, that the government must
stand some expense to get the system
on its feet This is the view taken by
Senator Cummins in framing his Dill.
It is a; combination of a contributory
plan and a plan for direct appropri-
alton by the federal government.
Mr.. Cummins groups the civil service
employees, except postmasters, into two
groups, one Of which is required to re-
tire at IS and the other at 20 years. In
the group retiring at 65 are the railway
mail clerks, city letter carriers. rurai
letter carries, and mechanics. All other
employees are in the group retiring at
the age Of 10.
As to employees who enter the service
hereafter. they are to be required to
nav into a fund, or. rather. there IS to
be deducted from their monthly COM
pensation an amount which. computed
at per cent compound interest. VIII
he sufficient to accumulate for each
employe. on arriving at retiring~age,
* 600. No deduction is to be over III
per cent.
Machinery For Handling Fund.
The machinery for the handling OF
to, III.
AS to employees already in the service,
it is provided that each one who retires
on account of age within year a1ter
the act takes effect shall receive $4,000.
This applies, of course, to employees ~
years of age and over; or. II m the
group retiring at IS. to those who are
65 and over. AS to employees no" IN
the service who retire in two years,
they are to receive $4,000, less $loo' OIL
rect from the government; those VINO
retire in three years. $4,000 less $aoo'
and so on, the amount growing less
by $3.50 each year: SO that, at the emu
of twenty years, no employe, either now
in the service or entering 1t later, would
receive any money for pension purposes
direct from the government AS LOT
employees under so years. now IN the
service. they Will get their pensions
solely from contributions, Just as IN
the case Of employees entering the ser
vice hereafter. And employees 50 years
old or over. In addition to getting Ger
tain sums direct from the treasury, VIII
he allowed to contribute, II they SO
elect. to retirement fund and will get
this in addition to the amount the gov
eminent pays them out Of its own pock-
ct when they retire.
The burden on the government OF
setting this system in motion 1t Is !
argued, will not be great. 1t Will
amount roughly to $42,00o,o0O in twenty
years. or a little more than $2,ooo,ooo
a wear. After that, it is insisted, 1T Will
cost the government nothing. because
the pensions would come solely from
the contributions Of the clerks and
other employees.