Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-04
$1,000 ANNUITY BILL
PASSED AND 1880
RECEIVE W|NDF ALL
New Law Includes Several
Desirable Features From
Senate Measure.
CONFERENCE is CALLED
AT EMPLOYEES REQUEST
Agreement Is Made and Bill Is
Hastily Rushed Through Con-
gress and Signed.

OF any action before Congress ad-
journed to liberaliZe the civil service
retirement law, 12,500 retired Gov
ernment employees now on the annuity
roll received a last hour surprise
when Congress rushed a compromise
measure through yesterday and the
President signed it.
The new law contains the House
provision for a maximum annuity Of
$1,000 and an increase from 2h per
cent to az per cent in the employees
contribution, together with certain
desirable administrative features
taken from the Senate bill. The age
limits are unchanged.
The new law is retroa ctive to July
! in order to place operation of the
law on a fiscal year basis in aC-
cordance with one of the Senate
amendments.
While the present maximum an
nuity is 1920 for those who have
served 80 years, the average is only
$546. The new law represents 40
per cent increase for those receiving
the maximum, but this scales down
to as low as per cent. The average
Computation Method Changed.
Another advantage resulting from
the compromise is the provision
abolishing the present rule Of com
putting length of service as a basis
for annuities in three-year jumps.
The new law recognizes the actual
length of time the employe serves.
For example, at present an employe
who has served % years and II
months would have to take the
annuity as computed for 27 years
service. Under the new law the com
putation will be made on the full
29 years and IL months.
Leaders in both House and Senate
had prepared a resolution providing
| for a commission to make a thorough
study of the retirement law with a
view to recommen ndinS q new meas
ure that will be more satisfactory to
all interests concerned. This resOlu-
ton provides for a commission of
nine members, three Of whom would
be appointed by the President of the
Senate, three by the Speaker of the
House and three by the President.
and would carry an appropriation of
$4,000 for expenses of the com
mission. In the closing hours Of the
session, however, the resolution was
not acted upon. 1t will probably be
brought up early in the next session.
Welcomed by Employees.
Robert H. Alcorn, chairman Of the
executive committee of the Joint Con
ference on Retirement of Civil Serv-
ice Employees. stated last night that
while the measure enacted yesterday
is not as liberal as the employees had
hoped to obtain, it is generally re-
allied by the Government workers
that it will prove helpful and bene-
ficial'
Asked whether the employees would
renew their effort for a more salts
factory retirement plan at the next
session, Mr.. Alcorn said that was
question for the joint conference to
determine. and added that a meeting
would be called in the near future to
analyze the effects of the new law
and consider plans for the future.
Mr.. Alcorn pointed out that the i'm
prOvement in the administrative fea.
lures. which the House agreed to ac-
cept. constitute an advantage aside
from the increased annuities.
The checks for annuities go out to
the 1880 on the retired roll on the
u.
Those for July have already been sent
out. The retroactive feature of the
new law makes necessary a recompu.
tation of each annuity to be paid. 1t
will take considerable time to make
this new computation and additional
information will have to be sought in
a number of cases.
Will Get Back Annuities.
This work will occupy several weeks
and perhaps two months. AS soon as
the amount of increase each annuitant
on the roll is entitled to is computed
a check for the increase will be pre-
pared. AS many as possible of these
will be sent out August 2 and the
others on September l.
The basis for computing annuities
under the new law is the average
salary for the last 10 years of serv-
ice, multiplied by the number of years
served, divided by As. The maximum
salary to be used in computing annui-
ties is 81 500.
The bill as agreed upon eliminates
the Senate amendment which would
have fixed $720 ma ximum pay ment
for persons retired for disability after
Is years of service.
Up until yesterday morning the
Senate and House conferees had spent
weeks bargaining in an effort that
seemed hopeless to harmonic the
divergent views of the two houses.
The Senate had passed a bill raising
the annuity to $1,000 with a contribu
ton of 4 per cent of their salaries By
the employees and the advantage of
optional retirement several years
earlier than the age Of compulsory
retirement.
Senate Thought Law Unfair.
Senate leaders had steadfastly re-
fused to agree to the House bill. be-
cause they felt it was unfair to place
the entire cost of increasing the an
nuity of those already retired on the
shoulders of the active employees. The
House bill, which became law, and
which is the Budget Bureau plan,
makes the liability of the Government
s29 900 a year less than under the old
law, while the Senate plan would
have added several millions to the
Government share of cost.
Early yesterday morning. with only
a few hours left before adjournment,
81 group representing various Organi-
cations of employees conferred with
congressional leaders. with the result
that the Senate conferees accepted the
House plan of computing annuities In
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