Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-05-16
Acceding to Demand of Bud
get Bureau, City Heads Set
$1,000 Maximum.
DISTRICT CONTRIBUTION
TO BE SIS PER YEAR
Payment Over 30-Year Period to
Yield $3.50 Annually-Teachers'
Shares to Produce 5000.

The District Commissioners yester-
day dealt a stunning blow at legisla-
ton pending in Congress to provide
generous annuities to retired public
school teachers.
Acting on the advice Of the Bureau
Of the Budget. the Commissioners sent
to the chairmen of the Senate and
House District committees a report
on the two identical teacher retire
ment bills before each committee, EN-
bodying several amendments seeking
TO reduce the Governments contribu-
ton as now provided In these meas
ures from $500 to $3.50 a year and at
the same time cut down the maximum
pension from $1,000 to 81 $50 annual
ly. These reductions were suggested
by the Budget Bureau. it was en-
phasized, on the ground that any
higher annuities would be in conflict
with the Presidents financial pro
gram.
Daniel j. Donovan, District auditor.
has previously recommended as
substitute to the annuities in the
Congressional bills. a scale which
would make the Government contri-
button $40 a year, with a maximum
pension of $1,140. Under the present
law the contribution from the District
amounts TO $500 a year, and the max
imum pension is $3.50.
Propose 3O-Year Limit.
The maximum annuity payable to d
teacher under existing law is based
upon 80 years of service, the teacher
contributing $3.50, or 60 per cent. and
CT int
Under the two congressional bills the
maximum annuity based on 80 years
service would be $1,000, the teacher
contributing $500 and the District
$500. Auditor Donovans substitute
would provide a maximum annuity
for 80 years service of $1,140, the
teacher contributing $500 or s. Der
cent, and the District $40, or Al
| per cent.
The substitute amendment approved
by the Budget Bureau would make the
| maximum annuity for 80 years serv-
ice, $1,O50, the teacher contributing
$500, or 81 per cent. and the District
$3.50. or 43 per cent. Also. after 80
years service, the District would no
longer contribute to the annuity of
a teacher. but the teachers contribu.
ton will continue until retirement
The increase In the amount of the
annuity after 80 years Is, therefore,
the increase represented solely by the
teachers continued contributions.
Donovan Plan Opposed.
Another modification sought by the
Commissioners would change the
existing practice of appropriating for
teachers retirement annuities from
year TO year so as to have the ap-
preparations made to the fund each
year that will liquidate on a given
time the Districts accrued liability.
plus an additional appropriation for
each year to take care of the Dis
trict's normal contribution. This
change is necessary, the Commission
ers pointed out. If the teachers re-
tirement fund is to be placed on a
sound financial basis.
The Commissioners also explained
that Herbert d. Brown, chief Of the
United States Bureau of Efficiency,
as we'll as members of the Board of
Education, Superintendent of Schools
Frank w. Ballou and representatives
Of the teachers. were in complete ac-
cord with Mr.. Donovan's substitute
scale. THE director Of the Bureau
of the Budget. however" the Com
missioners declared, has informed
the Commissioners that the govern
ments DiStrict) contribution of SIS
a year for each year of teaching serv-
ice. but not exceeding 80 years. must
be reduced to SIS a year for not ex-
ceeding 80 years. sa as not to be in
conflict with the financial program of
the President"