Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-06-26


|, mittee was adopted by the Senate
committee as it's own.
1.-THE Bureau of the Budget made
an examination of these bills and
it developed that their provisions
would increase the cost of the re-
tirement system to the Government
about 100000 annually, assuming
the Government liability to be met
in 80 equal annual payments. This
method of amortization has been
uniformly used in all the estimates.
Budget Director Objected.
THE director of the budget re-
ported to the President that such
amendment of the retirement system
at the present time would be con-
trary to the budgetary requirements
of the Government. He subsequently
submitted to the President a modi-
fled draft of the bills on the Sen
ate and House calendar which lin
tied the annuities to maximum of
$1,000 and reduced the percentage of
contributions by the employees from
per cent, carried in the reported
bills, to 312 per cent. This bill did
not increase the cost of the retire
ment system to the Government and
hence was within budgetary limits.
1t was known that the President
had no objection to the passage of
such bill
The leadership of the House, set
up by the ma jority and rejecting the
purposes of the majority, has consist
emily ,co-operated with the admins
tration in keeping legislation requir-
ing substantial expenditures within
budget limits. With this policy | am
in hearty accord.
For some time there has been an
undercurrent of criticism and dis
approval of the retirement system as
1t exists at present. There is appar-
emily no way of aScertaining definitely
what it is costing the Government
and what it will cost the Govern
ment in the future There is great
apprehension that the present policy
of paying annuitants with the contri-
buttons of the active employees will
pyramid liabilities which inevitably
must be met by the Government to
stupendous proportions.
Complaints of mequities.
"No suggestions have been consid.
cred as to when and in what manner
the Government should amortiZe this
accrued and accr-uing liability. Com
paints have been heard that the sys-
tenn resulted in inequities as between
classes of employees. 1t became more
apparent that an exhaustive study of
the retirement problem should be
made and d thorough revision under
taken. This view is held by substan-
TALLY every one who is in contact
with the retirement system. A reso-
luton to that effect has been intro
duced.
I'm view of this fact and in view
of budget requirements, those in con-
| troll of legislation in the House deem
ed it inadvisable to give by special
| rule a privileged status to the bill OH
| the calendar. Without such action it
| was apparent that the bill could not
be reached in the ordinary course of
| business during this session of Con
gress.
THE committee on the civil serv-
ice of the House deemed it extremely
desirable that some legislation in
creasing the annuities of those re-
| tired. or about to be retired, should
be enacted at this session instead of
waiting for the survey and revision
that was planned. Accordingly. the
| bill was recommitted to the commit
| tee and reported in the form the
director of the budget had recon-
mended it to the President.
Promised to Keep Cost Down.
After extensive consultations it
| was agreed that the Speaker recog-
| nize me to suspend the rules and pass