Evening star., 1921-12-19

Of retirement benefits and this lia-
hility may be added to pay roll ap-
propriations. If such accounts are
opened the true cost of the retirement
plan will be known from year to year
and basis will be made available for
checking the administration of the
system.
Plan ms 1t Now Stands.
At the. present time no account
whatever is taken of the accruing liza
bilities under the fund on the books
or the government. Contributions are
now being collected from employees
and placed to the credit of single
account in the Treasury. Every cent
of money collected in this manner
carries with 1t. under the law. the
right of the emDloye to have it re-
turned to him with interest.
The funds collected are, therefore.
the same as trust funds. Neverthe-
less, despite the rights of the en-
ployes to their contributions. the con-
tributions from employees in the serv-
ice are being paid to employees who
| have retired and who have already
withdrawn all of their own money, so
that not only are the deposits of the
employees not being credited with
proper interest, but the principal
itself is being dissipated. This prac-
tice is exceedingly dangerous to the
government because, unlike the liza
bilities for war pensions, which may
be expected to decrease. the liabilities
under the present fund will steadily
increase.
From the governments standpoint.
the present method of promising the
benefits without definite knowledge of
cost is unSound business practice and
is dangerous to the taxpayers. If
the true cost is not known the gen.
eral inclinati of the public will be
To hnv CT tr,o 70 nf o.
tirement system. and since no appro-
priations are Immediately required
the tendency may be to make the plan
slowly more liberal by the adoption
of costly benefits which would never
have been considered had proper cost
figures been available.
The board of actuaries believes 1t
unnecessary to develop the many
technical points which might be pre-
Sented in support of its recommends
ton, that accounts showing the LA
hilities of the fund be established. for
the advantages to be gained from
such accounts will be apparent. to
any one who gives consideration to
the present practice.
Would Continue Records.
The board of actuaries believes that
record of certain data regarding all
the employees covered by the retire.
ment and disability fund should be
maintained. which would be adequate
for use as basis for the actuarial
valuations and investigations into the
service experience of the participants
of the fund and upon which may be
predicated all estimates of cost. 1t is
not within the province of the board
to recommend which department
should maintain this record, which
would include the date OF birth, salary
changes and service record of all active
participants and the date and cause of
separation of all participants who
leave the service of the government.
That the government should main-
tain a retirement system of the i'm
portance of the civil service retire.
ment and disability fund without main
tanning in any department a roster of
all the members seems incredible.
Such. however. is the case. In fact,
it is not possible to secure even a
figure indicating the total number of
members from any one department of
the federal government.
The board of actuaries recommends
that Small star be created either in
the Civil Service Commission or in the
office of the commissioner OF pensions.
whose duty 1t shall be to maintain a
register and record of every member of
the fund and that this record be cor
such a record. because under the law