Evening star., 1925-11-15

in installing the system. 1t Is as
Sumed by some that there is an inn
piled obligation on the part Of the
Government to do so. But at least 15
years experience has shown conclu-
sively that Congress will not provide
adequate annuities on that basis.
Therefore, the question is not what
Congress ought to do, but what Con
gress can be induced to do to provide
adequate annuitieS.
Government employees want ade-
quate annuities. They are not only
willing but anxious to have enough
deducted from current pay to provide
them-all needed.
AS it seems that adequate annuities
cannot be had otherwise, they insist
that they be allowed to assume and
meet the deficit due to installing the
system, and they demur to the system
that puts more than half of the deduc-
ton into a fund and provides only
grossly inadequate annuities. And
they also demur to the allowance of
only 4 per cent interest on refunds
and insist that the current rate, per
cent, be paid-and they want to pay
that out of their own money. The
100000 employees always will be able
to pay all needed on that basis.
Peak to Come in 1882.
Calculation based on experience to
date shows that, as the expectation of
life at 70.years of age is S1a years, the
peak number of annuitants will be
reached about 1892. when deaths will
equal additions, and that the number
then will be under $4,000. If annui-
ties averaged two and a half times
what they now are, the total outgo
would then be about S21 900, 900 q
year. This would increase a little as
the years passed and refunds became
larger, the peak of refunds being
reached about 1880
In framing a rational, business-like,
democratic and adequate annuity pro-
vision the percentage deduction sys-
tenn would be abolished and a uniform
deduction made from each, regardless
of amount of pay. Annuities must be
based only on age at retirement and
length of service. The travesty on
decency of starvation annuities to the
lowpaid would then cease.
The Adequate Annuity Association
of Federal Employees has prepared a
bill. as follows:
Section /. That to provide ade.
quately for the retirement of employees
In the classified civil service at their
own expense at all times hereafter, as
a condition of employment 81 per
month shall be withheld from the pay
of each employe covered by this act
and added to the retirement and dis
ability fund beginning on the last day
of the month after the passage of this
act; and whenever necessary to meet
expenditures from such fund the
amount withheld shall be increased 81
per month by order of the Secretary
of the Treasury.
Higher Interest Asked.
Section . That upon the termina-
ton of the service Of any such en-
ploye who is not retired, he or she
shall be entitled to receive all sums SO
withheld, with accumulated interest
thereon at the rate of l per centum
for each two months. to be computed
and compounded for each two months,
to be taken from the retirement and
disability fund.
Section 8. That each employe re-
tired shall receive monthly through
out life a sum to be taken from the
and disability fund as
shown by his or her nearest age and
years of service in the following table,
the first such payment to be made at
the end of the month next after the
passage of this act
The table gives the respective an
nuities provided for ages 80 to 10
years and length of service Is to 80
years, and ranges from SIS for Is
years service at the age Of 80 years
to S129 for 80 years service at the age
of 70 years.
1t would increase annultieS as fol-
lows: $40 to s129: $50 to S129; s27 to
$105; $54 to S12O; S24 to S84; s48 to s9s.
$21 to $64: s42 to ST.; SIS to s4s: $50
to s5S; SIS to s3S; $50 to $44-the
smaller rates being due to short serv-
ice alone, and regardless of amount of
former pay.
For year ending June 80. 1926
1853 annuitants; annuities S6.235,s30:
refunds s2,713,452; total SS,949.2s2
Added to retirement fund S11,O79,585;
total fund, s44 .665,778
June 80, 1S26-about 1900 annui-
tants; annuities $500 900; refunds So
800, 200; total S960O,OO0; deductions
$4,000 900; interest 50 700, 900: total in
come Se0,7o0,oO0; fund $4,000, 600
Total Increases.
If our bill then becomes law. So each
from 430,o0O employees is S10,32O,00
interest s2,700, 900; 3total $4,000, 900.
Then
June 80, 1927-about 13,40O annui-
tants: annuities and refunds $40 ,O0O.-
900; fund $4S, 900, 900.
June 80, 1930-about ID 500 annui-
tants; annuitieS and refunds S21 OOO-
900; fund S23,O0O,00
Then. If deduction is increased to
S3-total with interest S17,OO0O0O.
June 80. 1933-about 14,700 annui.
tants; annuities and refunds S21 900.
600; fund S11 100000
A "a deduction would then about bal
ance outgo. and the fund would gradu-
ally deplete as refunds increased: but
1t would be quite long time before
a IS deduction would be needed.
In order to provide such annuities
for all, we will gladly pay whatever
deduction is necessary at any time. If
at any time deductions should become
so large that they cannot be endured
by the lowpaid, then their paw should
be increased enough to allow it. as It
is unthinkable that our Government
Will not pay enough to allow adequate
provision to be made for old age.
Our proposed law to provide larger
and more equitable annuities and to
eliminate starvation annuities is an
proved by nearly every one who learns
about 1t. Some assume that II is onIv
necessary to ask a congressman to
have such a bill considered and that il
will be forthwith passed because of its
great merit and the extreme necessity
for its immediate enactment. But
such is not the case Congress will
not even give 1t serious consideration
unless 1t is we'll supported by the peo-
pie concerned, and to assure its en-.
49,