Evening star., 1920-06-25
RETIREMENT FUND
TObE TAKEN LUMP
SUM IN ADVANCE
Controller Warwick Renders
Decision Affecting Gov
ernment Employees.

l
! The retirement fund is to be built w
by the direct transfer of . u per cent
of the salaries of federal employees tc
the fund from the appropriations un.
der which pay rolls are paid. accord
ling to. "a decision today by Judge w
/ w Warwick, controller of the Treas
ury.
| This method of direct transfer OF
the books of the Treasury Department
| is recommended to the Secretary OF
the Treasury in lieu of carrying the
! deductions to the retirement funl
| through the medium of the pay rolls
lara deposits by the disbursing officers
paying such rolls.
Money in Lump sum.
| Under Controller Warwick's decision
| il is the duty of the Secretary of the
i Treasury to have placed to the credi,
of the retirement fund. or or before
! August l. 1920 Substantially all the
money that will represent 21a per cent OF
| the money to be spent from August /
| 1920, to June 80, 1921. for basic salary
pay or compensation of persons to
whom the act applies"
! The decision means that instead of
| the disbursing officers of the various
departments and independent estab b.
! lishments being required to deduct 2 y
! per cent of employees salaries from the
, salaries every month, the whole sum
cue the retirement fund will be put to
| its credit August l.
Less in Monthly Envelopes.
Thereafter employees of the govern
ment will, in fact, be paid but 9712 per
cent of their salaries each month: that
is, an employe drawing $100 per month
will receive but $3.50. and that is the
sum which will be credited to him by
the diSburSng officer.
A tremendous amount of labor will
be saved by this method. it is believed,
| both to disbursing officers and all Of
ficials in charge of the retirement leg
islation. The plan of directly trans
ferring the 214 per cent to the retire
ment fund from the appropriations un-
der which pay rolls are paid will mean
an involuntary saving by all employees
of Uncle Sam to whom the retirement
law applies.
Controllers Statement.
After quoting sections and 13 of
the retirement act, Controller Warwick
says:
The first requirement of section
8, to withhold monthly sum equal
to q. per cent of the basic salary.
pay or compensation of the employe.
relates to the payment to be made to
the eHploye II can Only De cOHD1eQ
with by paying no more than 81 u
per cent of the basic salary, pay or
compensation to the employe, when
ever paid, the monthly requirement
rot being SO mandatory as to require
such action once month only. The
I.pay roll is concerned with THE amount
to be paid the employe and with moth
ing further.
THE direction of the act that the
Secretary of the Treasury shall cease
said deductions to be withheld from
specific appropriated cns and allotments
out of lump-sum appropriation for
payment of salary, etc, operates di-
rectly upon the appropriations re-
ferred to. This appears from the di
rection to transfer the sums on the
books of the Treasury to the credit of
rhe special fund created by the act
the retirement fund.
Methods of Accomplishment.
This is a matter which can readily
be accomplished by having all the
executive departments, government
eStab ShmentS, etc. report to the
Secretary of the Treasury at once,
and thereafter Immediately following
an appropriation being made by Con-
greSS, of the amounts for salary, etc,
of such appropriations. and under
lump-sum appropriations the amount
of the aliotments for salary, etc, of
those subject to the act These re-
ports. if approved by the Secretary of
the Treasury, may be referred to the
proper auditor for adjustment of the
appropria tionS and the special fund,
subject to the time when the appro-
priation becomes available. By hav-
| ing the adjustments made through
auditors settlements the books of
the Treasury will show the amounts
transferred to the special fund as
expenditures under the respective ap-
preparations, as in other cases
although section would seem
the books of the Treasury Depart
ment-to be accomplished by a sim
| pie appropriation transfer warrant
| yet / see no objection, except delay
and unnecessary work, to the pro-
cedure of action by the auditors if
F., you think that best suited to main
| tanning your record of receipts and
expenditures. but 1 do not recommend
/ it. At any rate. it is clearly the duty
| of the Secretary of the Treasury to
have placed to the credit of the re-
| tirement fund on or before August
! l, 1920, substantially all the money
that will represent az per cent OF
| l, 1920, to June 80, 1921 for basic
salary, pay or compensation of per
sons to whom the act applies.
Hourly or Piecework Basfs.
IT may become necessary under
| lump-sum appropriations where those
| 10 Whom the act applies are paid on
| an hourly or piecework basis and
allotments are made from time to
time and for a lesser period than the
| fiscal year, to have reports made ac-
| cordingly, but as a general rule the
reports should be once for the f,scaI
year, and no refunds be made from
the special fund by reason of re-
| duction in allotments Iapsed sal
aries. etc, subsequent increases in
allotments to be reported for deduc-
tions accordingly. The requirement.
of monthly deductions relates to paw
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