Evening star., 1926-04-03
Slight Changes in Measure
Believed to Bring 1t Beyond
His Objections.
COMMITTEE TO PRESENT
REAL COST TO PRESIDENT
Maximum Annuity Raised to
$1,000, and Figure 40 Is Chosen
as Divisor to Be Used.
BY WILL p. KENNEDY.

The lberalized retirement bill or
dered favora blv reported to the
House Yesterday by the committee
on the civil service. and which is ~
be reported on Monday. In it's most
important provisions meets the
wishes Of the Government emplovee
as urged by the Joint conference on
civil service retirement which has
heen working for more than -
years-frst 10 get the retirement
principle accepted by the Govern
ment and then IN get the ifberaliz-
ing and eauslizinE provisions ap-
proved.
The chairman and members of the
committee believe that President
Coolidge has been advised as 10
The cost OF liberalizing provisions and
they express confidence that when
the actual figures are shown him he
will find the bill as reported not in
conflict with his financial policy.
Several Changes Made.
They believe that this is especially
true, because the committee YESTERDAY
made several minor amendments TO
the bill which have the effect of re-
duclnE. by several million dollars. the
obligation that the Government as
sumes and generally lowering the cost
TO the Government materially.
Chairman Lehlbach and other mem
bers of the House civil service com
mittee are TO confer with the Presi-
dent and with the director Of the BIZ
reau OF the Budget to show what thev
figure will be the actual cost of the
liberalized retirement bill.
The liberalized retirement bill would
apply from the date il becomes eff
fective (which is the first day of the
second month next following the pa 3
age of the acO 10 the benefit of the
more than 10000 persons now on the
retirement roll, many of whom are in
actual need.
There are now 3ss.622 Government
employees under the purview of the
retirement law. according TO the
actuaries report. who would be di.
rectlS benefited by the Iiberalized pro
visions. II previously was estimated
that there were $4,000 affected by the
retirement act.
nlil as reported the House COM
mittee are:
ID An increase in the maximum
annuity from So unoer the present
law. 10 $1,000 with rroportionate in
creases all alone the line.
CD Acceptance OF the figure 4n
as dlvlsor In -Onpuing annuities
instead or As. The salary of an en-
ploye for the last 10 year- of his en-
ployment by the nun = Of years Of
service and then divided by 40 to com
pute the annuity. This change to the
4o divisor is of great importance.
especially to the low-salaried en-
ployes
Age Limits Are Fixed.
tS) The age for optional retirement
after 80 years of service. Is placed AZ
so years for railway mail clerks. So
for mechanics. letter carriers and Ia
oorers. and 65 for departmental. There
is no provision in the present law for
optional retirement.
D The retirement age in the pres
law Is 81 for railway mail clerks. SIS
Tor mechanics, letter carriers. post
Office clerks and Iaborers. and 70 for
the departmental clerical forces. The
bill to be reported makes no change
In this retirement age. This is gen.
orally referred 10 as compulsory re-
tirement"
The new bill was designed to cover
in the retirement law certain Sroups
of employees who have not heretofore
been within the purView Of the law.
These include the American EMPLOYEES
or the Panama Railroad in the Pan
anna Canal Zone which is Government
owned and operated: employees in the
offices OF the solicitors for the several
departments Of the Government: the
employees of the office of the Register
OF Wills and the Recorder of Deeds.
Present Weakness Cited.
1t was brought out at the hearings
before the joint committee of House
and Senate on the question Of liberal
zing the present law that the neaser
now provided in a large de.
gree defeat the real purpose Of the act.
This was laid TO the fact that when
employees reach the retirement age or
become disabled. realizing the meager
annuity they would be entitled to. use
avery influence they can to remain In
The service.
Administrative officials in a report
eplying to a QUESTIONABLE Of the Civil
Service Commission four years ago
testified that the law defeats its pur.
pose by not making the Federal serv-
Ice attractive to the type of workers
who should prove valuable to the
II they could be induced
TO make Government service their life
work. and because it tends TO retain in
the service those who have outlived
their usefulness.
VIII H. Hays, then Postmaster Cen
eral, said. The retirement law has
not had that stabilizing effect that
might have been expected by reason at
The fact that the maximum amount v1
the annuity is so low as to be entirely
Inadequate to provide for the neces-
sites OF the annuitant and those de-
pendent upon him for support"
Outside Competition Keen.
The chief of finance OF the War De-
oartment reported that the induce
nents in the way of annuities are too
ow to hold the younger employees II
opportunity arises for employment In
concerns"
The lowest annuity at present is
lbout IS a month: many run from SIS
o $50. which is held quite evidently
lot enough. The maximum annuity is
low S720, for those who have received
Il 200 for the last 10 years of their
ervice, and have served 80 years.
The maximum under the proposed
lberalized act would be $1,000, while
he minimum annuity would be s1s
month, with proportionate increases
II up the line.
The committee has agreed upon 40
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