Evening star., 1923-04-02
MPLOYES' PENSION
SHOULD Be RAISED,
STERLING ASSERTS
Chairman of Senate Commit
tee to Offer Bill for In
crease of AnnuitieS.
FUND HAS GROWN RAPIDLY
SINCE FOUNDATION IN 1920
Total of $17,OO0,00 Is Now Twice
Larger Than Promoters
Expected.

The maximum and minimum annul-
ties paid to the civil service en-
ployes of the government under the
civil service retirement act would
be materially increased under bill
which Senator Sterling, chairman OF
the Senate civil service committee.
will draft and introduce at the next
session of Congress.
Senator Sterling, who returned to
Washington today from Florida, said
that under his proposed plan the
maximum annuity paid the employees
on retirement would be Increased
from s720-the present fgure-to
$3.50 or $1,000 year. The minimum
annuity would be increased from
$3.50 to S240.
Two factors enter into the question
of these proposed increases, Senator
Sterling said. In the first place. the
purchasing power of the dollar is less
than 1t was. and unless the cost OF
living is reduced, there seems little
likelihood of its being increased. and
s12O. while great help. is not cal
culated to support a man, perhaps
with dependents, upon his retirement.
Would Raise Annuities.
In the second place. the retirement
fund, built up under the operation Of
increased to an extent far beyond the
expectations Of those who foStered
the retirement.
The act has been in operation since
August 1920. and the fund is now
something like Sl7.o00,000. II was eX-
pected that after the first year or two
the fund would amount only TO $4,000
| 900 or perhaps SIC, 900, 900.
1siI Cd 30 fa
retirement fund, built up by the per
centage payments of the employees
themselves, Senator Sterling said,
warrants in his opinion, an increase
in the size of the annuities paid. The
employees themselves, while grateful
for the aid given under the retire
ment act as 1t now stands, believe
that there should be some increases
In the annuities paid, because Of the
amount of the fund developed.
1t is recognized that eventually. g
more and more of the employees are
placed on the retirement roll, the
government will have to contribute
from its general fund to keep up the
payment of the annuities. In fact,
it was contemplated that eventually
the government would be contribu
ting one-half of the amount needed
and the employees one-half. But the
increase in efficiency would more than
i make up the loss to the government
EmpIOycs Contributions.
Under the law as it stands today, all
the employees contribute 28 per cent
of their salaries to the fund. But the
! maximum annuity paid after thirty
| years service upon reaching the age
| of retirement is $120. no matter
| ing $1,000 a year or $4,000. Senator
! Sterling said that his proposed bill
might make provision for graduating
the annuities paid so as 70 correspond
/ somewhat with the size OF the con
! tributions by the employees.
| Since becoming chairman of the
] civil service committee. about four
| years ago. Senator Sterling has sue
cessfully. .h9 aided in the Senate two
major pieces of legislation for the
! civil service employes-the civil
| service retirement act and the reclas-
sification act. He believes that the
| rally improved. and will be mate
| rally improved. through the opera
| tion of both these laws.
Senator Sterling called attention to
J the so-called Rogers bill passed by
! the House last session, but not acted
! upon in the Senate. which would con-
solidate the diplomatic and consular
services of the United States into the
| foreign service"
! This bill. he said, provides for put
ting employees of the proposed for
eign service under the operation OF
! the civil service retirement act.
House Bill Hardly Fair.
"As the bill came from the House
| said Senator Sterling, 1T was not
| quite fair to the other employees of
| the government included in the oper-
alton of the retirement act. While
| it fixed the contributions to be made
! by the employees of the foreign serv-
! Ice to the retirement fund at per
! cent of their salaries il fixed the
| minimum annuity to be paid after
thirty years service at $3.50 and the
! maximum at $1,000.
THE minimum, 1t will he observed
was higher than the maximum OF the
other employees of the government.
| and the maximum was beyond all
reason. in my opinion. Furthermore,
a number of the employees of the for
eign service would have been eligible
| for retirement Immediately, and it
was proposed to take their annuities
! out of the general fund created by
the rest of the employees OF the gov
ernment, without any further appro-
priation. This would have been mani
| festly unfair"
! Senator Sterling said that he had
! opposed the Rogers bill for those rea-
| sons. He added, however, that with
some modification, he believed the
Rogers bill could go through at the
next Congress.
|