Evening star., 1926-03-29

limits to which they would be in
creased If the actual costs of each
increase required an immediate IN
crease in the appropriations, rather
than further losses to be repaid by
future taxpayers.
The existing act should proVlde
for the maintenance of adequate
records which will protect the in
terests of both the members and the
Government. and which Will AFFORD
a basis by which the liabilities of the
Government may be >ascertalned
periodically as a safeguard on the
continued economical administration
Of the fund.
Four Plans Analysed.
Taking up the various amendments
to the existing act, the board SUD
mits figures showing the cost OF the
proposals now before the joint COM
mittee of Congress having retirement
legislation under consideration. The
four plans are analyzed on 30-year
basis and cost figures are given Tor
each of them in tabulated form.
The tabulation' under the proposed
plan of amendment. with the mini
mum superannuatioA retirement age
fixed at 60 years for all employees,
shows the total cost on q basis OF
LAO for each year of service at ST.
120,22 ,573, of which the Government
would be required to appropriate
$769, ,3SO,375. The board estimates
the annual cost of this TNan at $40
08O,976 of which $26,19S9S5 would
be payable by the employees and $43,-
881 ,991 by the Government.
Under the second plan. baSed on
Las for each year of service and the
retirement age at 60 years for all em-
ployes, the cost is fixed by the board
at $1,012, ,779 ,871, of which the Govern
ment would be required to contribute
$661 ,93G,671. The board estimates the
annual cost of this plan at $63 SAG 27o,
of which the employees will contribxte
26,198985 and the Government
$37,347 ,293
The tabulation under the third plan.
which fixes the minimum superannu-
alton retirement age at So for postal
employees and mechanics, and 60 for
other employees, shows a total cost on
a basis of 40 for each year of service
at $1,224.236, ,691. requiring appropria-
tions from the Government amounting
to $87S,601 1874 The board estimates
the annual cost of this plan at $780,
III ,437, of which the employees would
pay $26,19S,985 and the Government
50,518452.
the basis of las for each year of
service, according to the boards esti-
mate, is $1,104 658,4S9, the appropria-
tions required by the Government be
ing fixed at 1859 ,022, 1922. The board
estimates the annual cost of this plan
at $69, ,371, 100. of which $26,l9S,98J
would be payable by employees and
$43,l72,2 ,205 by the Government.
To Set As Retirement Age.
IAN the proposed plans" the report
goes on, permit retirement at age
60, provided the employees have had
80 years of service. The first two
proposals provide that age 60 shall
be the minimum for all groups, while
the second proposal sets age 55 as
the minimum age for postal employees
and mechanics. 1t is believed that a
minimum retirement age may be con
sldered fair to all groups of employees,
and would eliminate the present dis
elimination against the general EN-
ployeS who are required to remain
in service TO age 20 Unless disabled.
A uniform minimum retirement age
of 60 makes the plan very simple Of
operation. places the Government in
a position to retire employees at any
time after they have attained that
age and is not unreasonablY costly
The report states that the four pro
posals would eliminate what the
board regards as the present unfair
method of increasing the annuities
only upon the completion of three
year periods, but points out that il
would not result in making the bene.
fit exactly proportionate to years of
service.
Each year of service" continues
the report, rendered up to 80 years
would increase the annuity of an EN-
ploye, but after 80 years there would
be no increase whatever in the amount
| of benefit, and consequently no in
centive for the emplOye to continue
| in service. Furthermore, that part
of the average salary in excess OF
| 81 800 would not be considered, so that
under the committees proposal, as ir
the case of the existing plan, the bene
| Nts would not be adequate for thc
| higher Salaried employees"
Would Set 75 Per Cent Limit.
The board in it's report suggests
| that the benefit be changed to con
sist of an annuity of l per cent OF
the average annual basic salary re
ceived by the employe during the
| last 10 years of service, with ne
limit multiplied by the number oi
years of service, with no limit, plus
I ~ appu;t1. of con nor xaar for aa oh