Evening star., 1926-04-26
Lord Retirement Proposal
Submitted by President to
StanfieId Today.
CONSIDERED COMPROMISE
Between TWO VIEWS
Measure Aimed to Liberalize Law
Keeping Within $17,815,930
Limit of Cost to U. S.


budget, was presented to Senator
Stanfield or. Oregon by President
Coolidge today. Senator Stanfield is
sponsor for a measure now pending
in the Senate to lIberalize the present
retirement law. 49,, p
The Lord proposal would increase
the maximum annuity from $720, the
present ma ximum, to $1,000. zt4EEj
1t would increase the annual deduc-
ton from salaries of Government
employees from 21a. the present rate.
to 81 per cent.
It would increase the employees an
nual contribution by 40 per cent and
raise the total payments to employees
by 80 per cent.
Present retirement ages of 70, 65
optional extension of four years in
each case.
Divis0r of 48 Provided.
1t would provide for computation of
annuities with a divisor of As.
The Lord measure, as laid before
the President, would not increase the
total cost of retirement payments by
the Government beyond $17,s15,93O,
the present figure.
The Board of Actuaries has esti-
mated $17,Sl5.9 $50 as the annual cost"
the proposal presented to Senator
Stanfield said "On the same basis
of amortization the annual cost would
not exceed that figure" The measure
does not consider the less important
provisions of the Sianfeld and Lehl-
bach measures that relate chiefly to
administration features.
Government employees with salaries
from 81 500 up would receive the same
annual annuity under the Lord pro-
posal as under the Lehlbach bill.
Those with salaries below 81 800 would
receive less under the Lord proposals
than under the Lehlbach bill. ,--
Stanfield to Compare Bills.
Senator Stanfield said he would lay
the administration proposals before
the Senate, although he did not see
how the bin could provide greater
liberalization of the present law and
still keep within the limit of $4,000
900, as figured by the Board of Ac-
tuaries as the annual cost to the Gov
ernment. He indicated that he did
not favor the Lord measure, but said
that before he made up his mind fully
he would investigate 1t and compare
it with both his own mea sure and the
Lehlbach bill.
The general retirement age for
clerks in the Government service now
is 20 years. For mechanics, laborers
and others who perform hard manual
labor the retirement age is 65. while
for railway mail clerks and others
- r1d
classed as hazardous, the retirement
age is 62 years. The retirement ages
would not be changed under the Lord
proposals. s.,.s..s.
Amortization Not Touched.
This amendment" the proposal
submitted to Senator Stanfleld said,
would make unnecessary any pre-
scription in the law defining how the
fund is to be amortized and would
leave the matter of amortization for
recommendation by the President to
Congress in the budget"
Two weeks ago, reporting on the
Stanfield bill, Secretary Of the Interior
nual annuity of $3.50. The annuity
recommended in the Lord proposal Is
5000 less than the maximum recon-
mended in both the Stanfield and Lehl-
bach measures.
President Coolidge is said to have
approved generally the principles en-
bodied in both measures, but thought
their total annual cost to the Govern
ment was too high. He has also reg
istered opposition to the proposal to
retire employees under 20 years Of age.
He has told groups and individuals
who have conferred with him on re-
tirement legislation that as a result of
the tax reductions the Government Is
close to a deficit and some thought
must be given to every piece of legis-
lation which would authorize expendi-
ture of public money, especially If the
authorization Is to be for an annual
expenditure for an indefinite future
period.
StanfieId Sees President.
Senator Stanfield was with the Pres
ident a quarter Of an hour, going over
with him all angles on retirement leg
islation. The Senator gave no indica-
tion when he left the executive Offices
whether he believes some form of re-
tirement legislation will be enacted at
the present session. He said he was
not opposed to the Lord proposal be-
fore he had studied it, but did not
believe it would accomplish the dou-
bile purpose of liberalization without
greater expenditure of public money.
Officials of the budget bureau felt
today that the Lord proposal would
offer common meeting ground for
those who favor the higher annuities
and those who are against increasing
the annual payments above 5000.