Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-01-15
ANNU|T|ES TO0L0W,
WITNESSES ASSERT,
IN PENSION HEARING
Postal Workers. Spokesman
FaVors More Liberal Re-
firing Pay.
SEES LAW STABILIZsNG
STATUS OF EMPLOYEES
Representative German Scores
Amounts Now Paid-Asks Sup
port for Bill.

amounts NOW fd1Q-hSKS sup
port for Bill.
The inadequacy of annuities paid
retired Government employees under
existing law again was stressed by
witnesses who appeared today before
he joint hearing Of the Senate ard
House committees considering more
liberal retirement legislation.
Represe natives German of Illinois.
-upportins the Lehlbac ch- -Stanfield bill
rold the Joint committee that amounts
now paid retired employees are TOO
low, and do. not provide for a decent
standard of American living. as point
cd out in reports made by several Of
The departments. He said the pro-
posed legislation provides more equi.
table basis of computing annuities,
and expressed the hope that both the
Senate and House will give serious
consideration 10 this legislation.
Thomas F. F'laherty, representing
the National Federation of Post once
Clerks. testified today in support of
the Lehlbach-S -Stanfeld bill. II is no
longer necessary. he said, to defend
the philosophy Of retirement lestsla-
ton. because during the five years i
has been in effect il has demonstrated
its value both to the Government and
employees He expressed the belief thai
the retirement law has stabilized
Government employment conditions
and removed tho haunting fear from
the minds of Federal workers of be
ing in want in their old age.
Inadeuuary of Annuities.
Mr.. Flahertv added however, thai
the past five years has also demor-
strated the inadeduacy Of annuitieS
under the original law. He recalled
that the average annuity now being
paid is S555 year. or about Sio.7h
: week He said that during the last
fiscal wear 2.05S employees who had
reached retirement age sought eXten-
sions of time. indicating. in his optr-
ion, that the annuities were TOO n1ea-
ger TO enable them to leave the serv-
ice. Mr. Flaherty said he spoke for
40 900 post Office employees.
Members OF the committee question
ed Mr.. Flaherty as TO what would be
the avera ge- age at which employees
would be able 10 retire If the bill IS
enacted TO permit optional retirement
after 80 years of service without any
age limit being specified.
The witness replied that the aver
age age at which persons enter the
Government service is said TO be IS
years and that in the postal service
the average age of entrance is %
years which would mean that the
S0-year option would make it possible
for some TO retire at 55 or 58 years
Of age. Representative Manlove OF
: Missouri brought out the fact that
since persons may enter the Govern
ment service at IS. they might retire
at As
55-Year Age Restriction.
Mr.. Flaherty said such would I've
an extreme case. He said that last
year the House specified So years as
a minimum requirement for retire
ment after 80 years service, and that
the Senate inserted an age limit of
s. wears in order to take advantage
Of the 5o-year option. This 62-year re
quirement also is written into the
CARRIER Harreid bill, which is being
urged by the Pension Bureau of the
Interior Department.
Mr. Flaherty said he thought the
employees would be satisfied II the
committees should report out a bill
carrying 55-year age restriction in
connection with the optional retire
ment.
Al this point Representative Lehl-
bach chairman. announced that a
survey is being made to show the av-
eraSe ages of the employees of the
Government and would be available
before the committees of Congress
complete consideration of the ques-
ton.
1t was learned today that several
nrSa nizations, including the United
National Association of Post Once
I Clerks, and groups of supervisory em-
ployes in the postal service. are pre-
. pared TO advocate the bill of Represent
! ative Hudson. which would provide
a sliding scale of pensions more nearly
| in proportion to the amount paid into
the retirement fund. Under existing
law. al employees are limited to
/ maximum of $40 a year. and under
{ the proposed legislation the maximum
annuity would be ST 200 a year.
Sliding Scale Plan.
The Lehlbach- -Stanfeld bill COM
putes the annuities on a maximum
salary of $1,000 a year.
c. p. FranciScus of the United Ma
I tional Association OF Post Office
) Clerks will testify in support of the
sliding scale method provided for In
the Hudson bill.
Mr.. F'laherty told the committee
he thought that the fear of the high
er paid employees in regard to the
amount of annuity they should re-
ceive was more fancied than real. Nj.
F'laherty said that Of all the employees
now retired. only per cent received
salary in excess of S1,s00 year,
which is the maximum used in com.
putting annuity,
! Mr. Hudson asked Mr.. F'laherty
why in the proposed legislation the
amount to be paid into the retire
ment fund by employees is increased
from 212 per cent to per cent of
! salary.
Maximum Annuities.
Mr.. Flaherty replied the only rea-
/ son for doing so was in the hope of
obtaining passage of the bill, express
( ing the belief that the economy pro-
gram of the Government might work
! against passage of the bill otherwise.
! Mr. F'laherty added that If we have
underestimated the generosity of Con-
! gress we humbly apologize and assure
you 1t will not happen again"
Senator Mckeller OF Tennessee
asked the witness what the average
annuity would be under the proposed
new legislation. Mr.. Flaherty re-
| piled that in the postal service it
! would not be many years before all
would be in the 81 200 maximum class.