Evening star., 1926-04-14
WORK ADVOCATES
RETIREMENT AT 70
Suggests IS as Optional,
With Maximum Annuity
of $500.

Criticizing several provisions OF a
retirement bill prepared by the Sen
ate subcommittee on civil service,
Secretary of the Interior Work, in a
letter today to Chairman Stanfield of
the committee, recommended com
pulsory retirement at 10, optional re-
tirement at 65 for persons in all
branches of the service, a maximum
annuity of $3.50 and increase in de-
ductions from salaries from the pres
ent 21s per cent to 3ia per cent.
The Secretary.s recommendations,
he believes, would relieve the Federal
Government from any contributions
whatever to the retirement fund for
period much longer than the %
years which 1t is now estimated the
fund would support itself entirely
from Government workers contribu-
tions.
Sees Gain of $5,2O8,000.
Secretary Works recommendations.
he said, based on the increased de-
ductions from employees salaries,
would bring a net gain into the retire
ment fund of $5,208,000 annually.
There are now 10000 annuitants
on the roll" he said. with an average
annuity of $544, requiring an annual
expenditure of $652S 900. If the max
imum annuity should be increa.N,d
from $720 to $3.50 per annum, it is
estimated that the average annuity
would then be in the neighSorhood of
$725. which would make the average
annuity equal to the present maxi
mum annuity.
1.-The 10000 annuitants now on the
roll. therefore, would receive a total
of $S,700,00 annually. The conclu-
sion as to the new average annuity
is based on the present ratio of the
average annuity to the maximum by
increasing the maximum annuity 33h
per cent, 1t would seem to follow that
the average annuity would be in
creased by 331s per cent"
One of the principal points of differ
ence between Secretary Work and the
committee was over the matter of
graduated retirement age. favored
by the latter. Secretary Work favored
IS as a uniform retirement age The
Secretary also disapproved the pro-
posal to give deferred retirement
status to employees involuntarily
separated from service after As years.
The present age for involuntary
separation is SIS years.
Keeping of Accounts.
The duty of establishing and main.
tanning an account showing liabilities
of the Government, which the COM
mittee thought should devolve upon
the controller general Of the United
States, should, in the opinion of Sec
retary Work, remain in the Treasury
Department, where accounts of the re.
tirement fund are kept at present.
Secretary Works recommendation
were said to follow the general line of
the recent pronouncement from the
White House, in which it was indi-
Gated that President Coolidge felt
there should be less burden laid upon
Government expenditures in any new
retirement act, although the Chief
Executive was in favor Of liberalized
retirement.
The maximum annuity fixed by
Secretary Work at $500 stands in mid
die ground between the present max
imum annuity of $720 and the COM
mtttee'S proposal of $1,000
Secretary Works proposal for a
fiat retirement age at 65 for all en-
ployes differs from both the present
law, which is graduated into three
groups, and the committee recon-
mendations. The present graduation,
he explained in his letter is 81 years
for railway mail clerks, IS years for
mechanics. letter carriers and post Of
flee clerks; and 10 years for clerks and
others. The total number of EMPLOYEES
at present affected by the retirement
law, he said, was 38S,622.