Evening star., 1926-03-28
Actuaries Provide for Flat
$500 Annuity Payment
by United States.
BOTH COMMITTEES READY
TO REPORT BILL SHORTLY
Hope of President Signing Measure
Before Adjournment Revived
as Result of Developments.

Hopes OF Government employees and
their friends for liberalized retirement
legislation at this session Of Congress
were revived and ran high last night
/ with the assurance that the actual ig-
ures on the cost of the liberalized pro-
| visions would be presented to House
| and Senate committees tomorrow.
Accom- panying these cost figures by
| the board of actuaries on the Civil
| Service retirement and disability fund
will be a brand new proposition put
| forward by the actuaries for fiat
| $500 contribution by the Government
| in addition to whatever annuity the
| individual employees own contribu-
tions may provide.
| Both House and Senate Civil
| Service committees are ready to re
! port the liberalized bill promptly. 1t
| is probable that the first action will
| como from the House committee
| whose subcommittee has drafted the
| bill. The full committee has gone
! carefully over it's provisions and ap
| proved it. Chairman Lehlbach sew
eral days ago issued a statement 10
! this effect. Since then Mr.. Lehlbach
has stated positively that he will re-
port the bill on receipt of the cost
iiS vi cS WHICH, dIG 10 Dc TIE Dd5lS VI
his report.
Senators in Agreement.
In the Senate the subcommittee
| has reached an agreement on the
legislative features of the bill, and
have discussed thoroughly the rates
and methods of computing annui
ties, but are awaiting the cost fig-
ures to complete drafting the
f1t. 70 6n1d oh fw
man of the subcommittee. has stated
that the subcommittee will be called
together to decide on bill as soon
as the actuaries report reaches him.
Renewed optimism for early action
on the measure in both House and
Senate was expressed in a statement
issued last night by Robert II. Alcorn,
chairman of the joint conference of
Civil Service employees on retirement,
who is in daily conference with mem
bers of both House and Senate COM
mitteeS.
Secretary Of the Interior Work said
last night that he will transmit to the
Civil Service committee Of Congress
tomorrow morning the report OF the
actuaries.
With the report will go a statement
from the Secretary himself, with
recommendations.
Flat $500 Contribution.
Figures contained in the voluminous
document from the board of actuaries
! have been kept a State secret, but it
! is known that there are six different
sets of figures. including one for the
| new plan evolved by the actuaries
themselves.
This new plan, which has been de-
veloped in comprehensive fashion. is
/ n include rarinHinal
| feature payment by the Federal Gov
| ernment to each employee regardless
| of his salary at retirement of a fiat
annuity of 5000. On top of this would
| be added the annuities which would
be forthcoming from the contributions
made by the employe into the retire
ment fund. This system Of a fiat sum
contribution by the Government, it is
believed by the actuaries, would pro-
vide an equitable relation between the
Federal Government and each en-
ploye, and at the same time allow
each contributor to the fund TO obtain
| from it more nearly what he had put
| in than under some other plans This
system, it is understood, would cost
no more than some OF the other pro-
posals for liberalization.
Such a plan, it is contended. would
serve also to insure the steady par
ticipation of the Federal Government,
along the principles laid down in the
act. which contemplates contributions
by the Government. So far the Gov
ernment has not paid out one cent for
retirement, all of the annuities having
come out of money paid in by the
clerks themselves.
Federal Debt ling Up.
Under the present procedure it is
estimated that the Government, in
stead of paying its $1S,000,000 an
nually into the fund, to be computed
at per cent compound interest, is
now about $100,000.O0O behind in its
payments With the rapid accumula-
| ton of the Governments debt to
ward retirement, it has been calculat-
| ed that unless change is made in the
present administration, a staggering
| load will suddenly be dumped onto
| the Federal budget theoretically some
| day in the future. Under the present
| law as constituted. employees. pay more
| than two-thirds of the cost of retire
ment. although at present they arc
| actually paying the entire cost.
| Computations of the six different
plans are based on the principle that
/ the load will be the heaviest for the
! first 80 years, but that beginning with
| the thirty first years all those who re-
| tire will have been paying into the
fund since the opening OF tnelr e'-'
ployment period. During the first 80
| years many persons will be retiring
who have paid into the fund for only
few years, since the enactment Of the
first retirement law Beginning al
the thirty.first year the figures are
based on what is known as the nor
| NAL cost"
l. Much Work Involved.
! The figures of the actuaries ara
! ba sed on a survey Of GovernmepA
personnel made through the Civil
Service Commission by the use of
! more than $50 900 cards. Data from
these cards was tabulated by the
Bureau of the Census, worked on at
the Bureau of Efficiency under direc-
tion of the board of actuaries, studied
here. sent to New York and returned
TO washington In time to be submit
| tied to Secretary Work at O'Clock
Friday afternoon.
| DIR. Work was occupied yesterda%
in drafting the report he is to make
| to Congress in submitting the volumi'
nous document Of the board OF actu
aries. The document will be printed
as soon as possible after submission
and the subcommittees will plunge
Continued on Page 2, Column 81