Evening star., 1921-12-18
ASK FOUR CHANGES
IN Retirement ACT
FOR U. S. EMPLOYEES
CONTINUED from First Page.)

NAL salary increases, provide 50 per
cent of the cost of his service allow
ance. while if he entered on the SAL
ary of about $1,000 he would con-
tribute NOR than his entire retirement
benefit would cost.
This condition could be rectified,
the board says, by limiting the con-
of an employe which is not in excess
of $1,000 or preferably by providing
definite allowance on the part of
the government and allowing an ad-
ditional benefit to the employees equal
to the value Of his accumulated con-
tributions with interest.
In explaining the second proposed
change in the law. that the ages fixed
for retirement on account Of age
should be adjusted, SO that the only
distinction made between groups
would be on the basis of the service
experience in order to make the nor
NAL cost the same for all occupational
groups. the board points out.
Condition i'm Mail Service.
Railway postal employees have the
most favorable conditions, because re-
tirement is permitted at the age of
sixty-two, while the great majority
or employees must remain in service to
the age OF seventy unless they are
disabled. The unfairness in this pro-
VISION Is shown in table which gives
the normal rate required to provide
oenents at the various ages Of retire.
menL The table shows that prin-
clpally because of the difference in
the age of retirement, the average
raiiway postal clerk pays ~ per cent
OF the cost of his benefits, while postal
cierks IN other departments pay 62
per cent of the cost Of their benefits.
Inc board of actuaries recommends
.mat tne retirement ages Of the vari-
GUS occupational groups be set so
that the conditions for retirement for
one group will be no different from
those for another, except when service
conditions would warrant a difference
rms would result in the adoption Of
ages very nearly the same for all
fhe uhs isw IL II the ages as now set in
factory. then 1t would seem as II the
contribution rate for employees ought
70 De adjusted. SO that those retiring
az earlier ages would make higher
contrioutions or elss the contributions
OF those retiring at the more ad.
present plan of requiring certain em-
ployes TO continue in service until
tney are seventy years of age be-
1ore they become eligible for retire.
ment: and requiring them to con-
tribute as heavily as those who have
tne right to retire at the ages Of
slxty-two or sixty-five, is objectfona BILE,
Reason for Repeal.
The board in explaining its reason
FOR recommending the third change
that the action of the law providing
for increase in annuities on comple-
tion of terms of service which are
multiples of three should be repealed
says:
The present law makes certain
classif1cations Of employees according
to length of service. Employees, with
IN class A, and are entitled to an
annuity of 60 per cent Of salary.
Those with twenty-seven or more
years OF service. but less than thirty
years. are in class B, and are entitled
to 81 per cent of salary. and SO on
classes are evidentally defined in the
bill to facilitate the calculation Of
the retirement annuity. The result
Of such classification is the pyramidine
or retirements on the first year in
each class. because Of the lack Of
medlately following entrance into any
class class and the strong incentive to
higher class to remain in service.
The board Of actuaries recommends
that the allowance increase with
each year Of service and that to facfi-
itate the calculation of the amount
OF the annuity the commissioner Of
pensions should be authorized to dis
regard fractions Of a month of ser
vice in his calculations ana that he
adjust all annuities to the nearest
multiple of twelve in order that ali
allowances may be readily paid in
monthly installments.
Benefit to Employees.
The group of changes proposed in
the fourth recommendation Of the
board, namely. that the law should
be amended to provide greater safe
guards on disability retirements: to
give authority to a member to nom
mate a beneficiary: to recover the
amount Of his accumulated contribu-
tlons In the event Of his death: to
require the head of each department
or Independent bureau to furnish an
nually the information necessary
concerning the employees under his
supervision for the use Of the COM
missioner Of pensions. are in order
that If the bill is amended for anv
purpose the points enumerated may
be taken into account with a re.
sult1ng benefit to both the govern
ment and the EMPLOYEES