Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-01-17
LARGER ANNU|T|ES
NEED IS CHARGED TO
DOLLAR SHR|NKAGE
Research Chairman of Joint
Conference Points Out
Moneys Value.

The shrinkage in the purchasing
power of the dollar since 1913 and the
fact that annuities of retired Govern.
ment employees are computed on the
average salary for the past 10 years
were cited as the real reasons why a
more liberal retirement law is needed
by Clrey j. Biller, testifying before
the joint committee Of the Senate and
House yesterday afternoon
AS chairman of the research com.
mittee Of the joint conference of civil
service employees. Mr.. Biiler presented
to the members of Congress an ex-
haustive analysis of how the retire
ment law has worked since it's pas
sage in 1920.
With the taking Of Mr.. Biller's tes-
timony, the hearings, which lasted
three days, were completed, and the
Senate and House committees on
civil service will now take under ad-
visement the question OF just how the
retirement act is to be liberalized.
Representatives of the various
groups of Government employees were
confident as the hearing ended that
the Senate and House committees
would report out a bill in ample time
to be acted upon at this session of
Congress.
There were strong indications yes
terday that the legislation finally ap-
proved by the committees will specify
some age limit that must be attained
by an employe before he can exercise
the option of voluntary retirement
after 80 years of service.
The employees have advocated op-
tional retirement after 80 years serv-
Ice regardless of age, but some MEM
bers Of Congress indicated during the
hearings that they wanted some age
restriction to prevent a person who
enters the service at the age of Is or
20 years from retiring at the age of
AZ or 90 years and then seek other
employment while drawing an an
nuity.
Agree On Computation.
1t was generally agreed by wit
nesses at the hearings that the an.
nufties should be based on the average
salary for the last five instead Of the
last 10 years of service but there
was a difference of opinion among
those who testified over the other
elements that should enter into the
fixing Of annuities.
One proposed bill would use the
aver dse sdldTy OF the employe up to
$1,000, multiplied by the years of
service and divided by As. The other
bill would use the average salary up
to $4,000. multiplied by the years of
| service and divided by 40. This is
one Of the important features that
must be passed on by the committee
Another important point to be de-
cided In committee is whether the
present law permitting department
heads to grant employees extension of
time after they have reached retire
ment age should be retained or abol.
ished.
1t is hardly likely that the commit.
tees will be in a position to make a
report before some time in February.
Shrinkage Of Dollar.
The outstanding point in Mr.. Bill
ler's testimony was his compa rison of
the dollar today and in 1913 in relation
to the annuity of a retired employe. He
said:
THE present annuities are based on
the average salaries for the last 10
years of service, and as the retirement
law became effective on August 21
1920, the salaries involved extended
back to 1910. 1t should be noted. too
that 43 per cent of those retired were
placed on the roll within the first wear
the law was in operation.
AS the cost of living since 1913 has
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