Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-05-16
Situation Is Complicated.

naiuistratiOn plan, and the House lead
ers arc determined that this Is the
plan that must 20 through They do
not intend to permit this hin 70 hc fur
Their libcralized IN the House at the
time that the Senate is seeking 10 lilo
erauze 1t. and thus send Il liberal hill
passed by each house Of Congress to
Conference.
So. the h1s';.v revised program OF
the House leaders il TO wait and see
just wnat sort Of bill the Senate
pass s before allowing the House to
commit Itself. OF course, this may be
altered o. overnight conferences, but
his is not probable.
Although there are some who be-
Hove the Senate may pass the bill
carrying the $1,000 annuity and the
privilege Of optional retirement at age
limits lower than the age of compul'
sorry retirement. Il determined effort
will he made TO have the Senate &C
cept the Budget Bureau plan by Sena.
tors who feel that bill represents all
the Government should do at this
time toward increasing annuities.
Senate Vote Uncertain.
There We're no reliable indications
AZ the Capitol yesterday as TO which
plan would carry when II vote is
reached in the Senate. The debate
will be resumed tomorrow afternoon
and il Is possible a decision may be
reached before adjournment.
Those who think the Senate Will ap-
prove the more liberal of the two
plans base their hopes on the fact
that n similar measure passed the
Senate last year and on the further
fact that the civil service committee
Of the Senate reported out the $1,000
bill. On the other hand, there are
Senators who take the view that ii
is better to pass the bill approved
by the Budget Bureau than to run the
risk of getting no retirement legISla
ton through at this session.
When the Senate resumes considera
ton Of the question tomorrow Senator
Smoot. Republican, OF Utah will offer
a substitute for the committee bill
which will embody $1,000 maximum
annuity, arrived at by using $1,000
as the maximum salary for compute
ton multiplied by the number of
years of service and divided by %.
Senator Smoot believes this is as
far as Congress should go at this time
in changing the retirement law, and
1t is expected he will make a strong
effort to have the Senate accept this
substitute.
Stanfleld to Defend Bill.
Senator Stanfleld, Republican, OF
Oregon will defend the bill, which he
reported from committee, carrying
the 81 200 maximum annuity and the
following provision for voluntary re
tirement: The group that is auto
matically retired at the age of &c
may retire voluntarily at 65 after 80
years OF service: the group that is
automatically retired at Go may retire
voluntarily at 60, while the group re-
tired automatically at 81 would re-
ceive no optional advantage.
During the Senate debate Friday
Senator Snloot went into details tt
show that the method of computing
annuities. both under the existing law
and the pending bills, results ir
Inequalities between employees who
enter the service early in life and re
main 40 or SO years and employees who
are appointed in middle age and retire
after q shorter period of service.
Senator Smoot said he was not pre-
pared at this time to work out a solu
ton for these discrepancies, because
it would require careful study. He
predicted, however. that some day d
more equitable method of computing
annuities would be worked out $50
that every employee, no matter
whether he gets $3.50 per annum OF
1900 per annum, will all be on the
same basis as to annuity"
In analyzing what he termed the
discrepancies in the present method
of computing annuities, Senator Smoot
gave illustrations to show that In
many cases employees would get more
out OF the retirement system by
resigning from the service Just before
arriving at the age of retirement and
drawing out their refund than by re
firing and taking the annuity.