Evening star., 1924-05-22
EARLY ACTION SEEN
ON RETIREMENT BILL
Stanfield Will Attempt to Have
Measure Made Special Order
of Business.
CALLS PASSAGE ASSURED
Increases Annuities for Retired
U. S. Workers. -

Favorable action by the Senate on
the bill liberalizing the civil service
retirement act, which has been report
ed to the Senate. before the close of
the present session of Congress, was
predicted today by Senator StanfieId
of Oregon, chairman of the civil serv-
ice committee.
Senator Stanfield said that he hoped
to have the bill made special order
of business. A canvass of the senti-
ment OF the Senate, he said, indi-
Gated clearly that the bill would be
passed if 1T can be brought up for
consideration.
The bill increases the annuities
which may be paid to the retired en-
ployes OF the government, and re-
duces the age of retirement.
Emphasizes Savings.
The saving to the government
through the operation of the Civil
Service retirement was emphasized
in a statement made yesterday by
Joseph $. Mccoy. government actuary.
There have been retired l2,185
employees said Mr.. Mccoy, Ito
whom was granted an average an
nuity of S551.64. That is. instead of
receiving an average of from $1,000
to $1,000 per year in salary, they are
government, who borrows the neces-
sary cash from the fund held in trust
for those now contributing-th2t is,
the government saves in salary, an
average of over $500 a year on every
oemploye retired. Before retirement
these employees cost the government
over $15,00O,000 per annum. After
retirement, the cost, as long as they
live, is less than one-half of this
amount. or about s7,oo0,0oo of bor-
rowed money. 1t is true that when
this $15,OO0,o0O was paid them, the
three or four million dollars worth
of service in return. Again, the
mortality among those retired is very
great-some 90 per cent of those
heretofore retired having dieo.
Let this matter be considered from
as cold-blooded and money -grasping
point of view as is possible, and un-
der the provisions of pending bills We
have the following results: suppose
that the average annuity 70 DE paid
is $1,000. This would save the gov
ernment directly about $500 year
But, in addition, of this 81 ,006 annuity
the employees normally would them
selves contribute some $500. thus saw
ing some $500 to the government
much more than the value of their
services Immediately prior to retire
mert.
so. normally, instead of costing
the government retirement will be
saving it money. Those now on the
retired list will be costing the gov
ernment from 5000 to $500 less per
year than before retirement. OF
course. with retirement under thu
proposed legislation, probably three
or four times as many will be re-
tired before being practically worth.
less to the government. This would
make the average Immediate cost to
the government of the retirement Of
those who have not contributed or
contributed only for a limited time
more than the saving in retirement
This is somewhat in the nature of the
original capital invested in a profit
able business capital that Will later
earn enormous profits.
"Retirement VIII weed the service
of all the inefficient and enable the
employe to devote his undivided eff
continually thinking of the future of
himself and Of his dear ones-his fu-
ture being guaranteed, and this at
no additional cost TO the government
Is this not an attractive, cold -blooded
business proposition?
Throughout the country large en-
ployers of men and women are find
ing it cheaper to have liberal retire
ment systems than il would be with
out them. This action is being fol-
ties, especially as to school teachers,
police, firemen, municipal employees
etc. This all tends to a better gov
ernment and a more contented and
prosperous people. There is no
charity in it. Not only does it cost
nothing, but it actually saves money
to the employer The old and inca
pacitated give way to the young and
energetic. with the result that taxes
need not be increased, as there is no
increased cost of the government
while the taxes necessary to support
eleemosynary and penal institutions
will be reduced.
THE United States is always proud
of its record of being the first and
most generous to help the hungry or
the afflicted in all parts Of the world
the Armenians, the Greeks, the
Russians, the German children, the
japanese. All of which is commend
able charity and fills the headlines.
On the other hand. this suggested
way Of helping those, together with
their dependents, who have become
incapacitated through long service
for the United States, is not charity
and is practically without cost. There
fore, why deny it?"