The Washington times., 1912-05-06
PRESIDENT FAVORS
RETIREMENT PLAN
/ FOR AGED CLERKS
Sends Special Message to
Congress Concerning Treat
ment of Employees.
Continued from First Page

that the plan provides thai each per-
son hereafter entering the service shall
Ipav the entire expense of lis own re-
tirenent contributions from his salary,
So that when he reaches the age Of
Etvcnty years the fund he has accu-
mulat'd will provide his retirement al
lCwance. In such a case the only con-
trlbution or the Government. II any,
VIII be the he hference betw een the in; n
In the Treasury and invested BY the
Government and the rate OF 4 per cent
1'er annum. SO far 1s ccncerns this
no reasonable objection to the plan,
and l doubt If any plan more benenclai
both to thc Government and to the en-
ploye could be devised.
Now In the Service.
1T 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.
1t is not practicable for those now sew
Cnty years of age, or for those nearing
that age, to provide the cost of retire
ment entirely at their own expense. To
NEE the existing situation and to put a
retirement plan into effect Immediately
there must be some contribution by the
Government. This contribution need be
little more in the aggregate than is now
the Governments loss from inefficiency
due to approximation. After a com
paratively short period Of years the an
nual payments made by the Govern
ment will be less than the loss 1t would
Sustain IL no plan were adopted.
1T Is proposed than 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-half of his average annual
pay for the last five years, but no such
ploye less than seventy years of age,
1t Is proposed that he shall be retired
when he reaches seventy on an annuity
equal to or. one-haif of his average annual annual
(no annuity to exceed 5000, and that
there shall be deducted from his pay
until he reaches seventy years such an
pay, as with / per cent interest, will
purchase his annuity. In the case of an
oSnploye who has but few years to
serve before reaching seventy, some
contribution by the Government will be
necessary to supplement his savings in
order to provide an annuity Of rea-
sonable amount.
Limited to $500.
"A retirement plan Is only a means to
an end, and that end is an increase Of
Iinefficiency in the public service. The
Government Is not required to take
charge Of an employees finances. nor Is
1t justified in doing so except so far as
It Is necessary to protect the Govern
ment against the inefficiency of the
my opinion. therefore. that a plan OF
retirement should be 50 adjusted as to
make the least possible demand upon
draw from his personal control as little
Of an employees money as possible. Tae
proposed plan meets these requirements.
not sufficient to provide the luxuries
OF life. 1t is enough to insure an en-
ploye against want. even II he has been
o&ther OF I' provision for or his hi declining @ T Years. w
II is sufficient also to render Intellectual
the appeals SO often made to the SYM
4SeY HsY' attempt & 'riaH to remove from Office an
employe who has become inefficient
through old age; At the same time the
salary in order to provide row his annuity
in complaining that they are being de-
Income which they could Invest more
prof1tably.
Rate of Interest.
In any compulsory saving plan it is
but just that the Government should
guarantee a reasonable rate of interest
to its employees. Four per cent Is the
rate now paid to the Government on de-
posts of enlisted men Of the army an
navy. and 1t is the rate paid by many
savings banks. The plan recommended
by the commission contemplates the in
vestment Of the savings Of employees In
the highest class Of securities and tina,
the United States shall contribute such
amount II any, as may be needed to in
sure the employees receiving per cent
per annum.
IT am convinced that the application
of the plan should be limited for the
present to the classified civil service In
the executive departments and Offices
at Washington, where the loss from
superannuation Is the greatest. While
any plan is in its experimental stage II
should be kept within narrow limits
II successful In operation in Washing
ton It can be extended as the needs o.
the service require.
1T being conceded that no immediate
benefit to the Government could &C
crue without some temporary help from
omy and Efficiency to make an investi-
cation of the loss due to superannua-
tion in the service at Washington. It's
report sets forth in detail the results
of this investigation.
Report on Efficiency.
TT has involved an examination Of the
efficiency of 22754 employees, as such
efficiency was reported by the depart
ments. At no other time has such a
thorough investigation been made OF
the service in Washington. An earnest
effort was made to ascertain and to
state in money the financial loss which
is sustained from the inefficency OF
aged persons in the service. While the