Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-10-20
RETIREMENT
PART CONTR|BUT0RY
Bill for Government Clerks to
Be Based on Insurance
Systems.
STUDY OF THE PAY SCALES

When the United States bureau of eff
cheney frames for presentation to Con-
gress n civil service retirement bill, as
requested by Senator Mcclellan, chair
man of the committee on civil service
and retrenchment. the measure will
embody partly contributory plan.
This announcement has been made by
Herbert D. Brown, head of the bureau
and James D. Maddrill, bureau actuary
in conference with members of the re-
tirement committee OF the Washington
Federal Employees Union. The decision
Is based on a study of government and
private insurance systems now in oper-
alton.
Determination OF the proportion to be
contributed, not yet decided, will be
based on three factors. One Is the study
now being made Of the 100000 or more
cards filled in by government employees
The second hinges on survey just
started by the bureau, at the direction
of Congress, Of the relative pay scales
in the state. city and federal govern
ments. The third factor Is the cost OF
the system, which the bureau will be
able to determine exactly. upon the con-
clusion Of its study Of salaries, length
of service, rate of severance and lon
gevity of clerks.
Mr.. Brown Makes Statement.
It was pointed out that the recon-
mendation of a semi-contributory plan
did not necessarily mean that clerks
would be required to pay their portion
out Of their present salaries. In regard
to clerks pay Mr.. Brown made this
statement. which is regarded as Sig
nificant:
"If employees of the federal govern
ment were adequately paid before the
recent sharp increase in the cost OF
living. they are inadeQuately paid now.
II they were paid too much then, they
may be getting enough now. I am not
attempting to say which is the case, but
am pointing out that the government
pay scale has undergone radical
change in its relations to pay In private
employ"
Even II It were decided that the pres
emit salaries are SO small that the gov
eminent should pay the entire cost OF
pensions, Mr.. Brown stated. experience
has shown that it would be wiser to
raise salaries and allow the clerk to
contribute toward the cost Of his PEN
sion, or to set aside a certain amount
monthly in addition to his salary.
which would be turned over to him.
with accrued interest, when he left the
service.
Mr.. Brown said the straight PEN
sion" is equivalent to a tontine life in
permits collection only on stipulated
conditions. Issuance Of such policies
has been forbidden in every state in
the Union. A straight" pension gives
the government an autocratic control
over the employee, depriving him OF his
freedom of contract. II he would not
forfeit his right to his pension. On the
side of the government 1t has the dis
advantage Of keeping inefficient men In
the service. through their effort to
their pension claims.
Cost Proves Prohibitive.
Moreover. the cost Of such plans al
ways has proved prohibitive. In New
York city a tremendous liability was
port on that city's municipal pension
plan, with only a small fraction OF the
amount in assets.
Equally opposed to actuarial expert
ence. it was stated. is wholly con-
tributory arrangement. Either the con-
tributions are burdensome, or the bene-
Ats too small to meet the need of the
pensioners. After time the en-
ployes begin asking: Who is getting
the benefit?" and they realize that they
is of benefit to their employer in help
ing him to rid the system Of the super
ANIMATED employees. Moreover. this
system gives the employees a whip hand
in a situation in which, since both
benefit. both parties to the scheme.
employer and employe. should have a
say.
When the bureau evolves its plan 1t
will cover two questions. one tina, of
the accrued liabilities of the clerks now
in the system and the plan for future
operation in behalf of those who enter
the system from the time the retire.
ment law Is passed.
The considerations stated have been
on the part Of the government and the
employees in mass. Consideration also
is being given the individual and his
ability to pay. One way of taking up
this question Is to draw a service
curve" beginning at q low point along
a base line when the employee starts to
work. increasing 1t until it reaches its
high level. when he is forty-five or
fifty. and then rounding 1t down again
until the time Of his death.