Evening star., 1926-05-15
RETIREMENT BILLS
STIR WARM DEBATE
Nature of Senate Action Mon.
day Still in Doubt After
Long Discussion.

Liberalized retirement legislation
for Government employees is due to
pass the Senate Monday. but whether
the maximum annuity will be raised
to $1,000 or $1,000 remained a doubt
full factor after several hours of lively
debate yesterday afternoon. The
House also is expected to take up re-
tirement legislation Monday.
The lower substitute, prepared by
the Budget Bureau. is regarded AS the
one most likely 10 be enacted and
while there is a possibility the $1,000
plan may receive the approval of the
Senate, those who have followed the
situation believe the House will psss
the measure fixing a 81. 900 maximum.
This would put the question up to the
conferees for adjustment
Stanf1eld for First Bill.
Supported by a number of Demo.
Gratis. Senator Stanfield, Republican
Of Oregon. in charge of retireme mt
legislation. yesterday defended the bill
approved by the Senate civil service
committee. which raises the maximum
annuity from $720 to $1,000 and per.
mits 30-year voluntary retirement be
fore the age Of compulsory retireme Mt
is reached.
Although he backed the more lib
eral committee bill. Senator Stanfield
called attention to the substitute
measure lying on the table, which EN-.
bodies the plan of the Budget Bureau
for 81 900 maximum and a slightly
different basis for computing the an.
nuity.
III
cized Senator Stanfield for filing the
substitute bill prepared by Budget
Director Lord. after the civil service
committee had approved more lib.
eral plan. Senator Stanfield asserted
he was not in favor of the substitute
and hoped the committee bill would
pass. At this stage of the discus
sion, Senator Smoot, chairman of the
finance committee, and one OF the
Republican leaders in the Senate, an
nounced that he would sponsor the
81 900 substitute bill.
Lower Cost Cited.
In his opening explanation of the
two propositions. Senator Stanheld
emphasized the point that the modified
plan of Gen. Lord would cost the
Government less than the existing
law by $4,000. He said:
I'VE have spoken of this amend =
ment proposed to the existing law
as a liberalization of retirement. all
having in mind. | think, that the
Government would contribute to that
liberalization. Under the proposals
made bv the director Of the budget
to the President of the United states
the bill does not work out as llber-
allZation of the present law except
ing as the employees contribute &c
the fund to liberalize the law for the
benefit of those employees who nave
been retired or who may hereafter
retire. Those who retired under the
act in 1920. and about that time
never contributed to the fund. Ineli
annuity was entirely In the form OF
a pension paid by the Government
BY adopting the provisions, II they
shall be adopted, as proposed by tne
director of the budget, the cost tc
the Government would be lesseneo
$4,000 a year: the increased annuity
would be borne by the contributions
of the present and future employees
which would he increased from ~:
to 81, per cent. or 40 per cent. the
average increase of the annuity vii
be 80 per cent and the employees con
tribution will be increased 40 pei
cert. so they will receive the diff
ference in the ratio of 80 to 40: tha'
is, the employees will pay that mucf
more. which. If the provisions pro
posed by the director of the budge'
shall be accepted. will lessen tnt
total cost to the Government $29'3o'
annually"
Answering questions put by Sena
tor Willis, Republican, of Ohio, Sen
ator Stanfield explained the cost tc
the Government under the Lord SUB.
stitute would be $17,786,59S, ant
under the $1,000 committee bill Il
would be $24,1S7,919, or approx
mately $7,000.o00 more.
Payment Time Argued.
Since the original retirement Ia"
was enacted the contributions OF tht
employees have been ample to NEE
annuities, and the debate yesterday
developed a wide difference of opln
ion as to how soon the Government
would have to begin actually put
ting up its share.
Senator Stanfield said it would bt
from 20 to 80 years before the funt
| built up by the workers would have
to be augmented by the Govern
ment's contribution. but Senator
Smoot insisted the Governmen
Continued on Page 5. Column Sd