Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-08-09
EMPLOyESSTUDy
DEDUCTION RULING.
Hundreds in Higher-P aid
Grades, Eligible for Annuity,
Scan Records.

Hundreds of Government employees
in the higher-paid grades and few
in the lower grades were scanning
their service records today to find how
long they have been off the voluntary
deduction rolls for retirement annu'
tiles, following announcement of a
ruling by the Interior Department
that they are eligible for annuity. but
must repay to the retirement fund all
the sums they have failed to pay be-
tween the date of the withdrawal
from classified positions and the
present.
While the ruling does not affect the
rank and file of Government employees,
who are mostly in classified jobs under
the civil service. 1t does affect many
of the higher-paid administrative
posts and few of the lower paid posi-
tons. The ruling affects all presi'
dental and secretarial appointees.
and any employee who for one reason
or another Is still in the Government
service, although no longer in classl'
fed position. Many bureau chiefs.
assistants to department heads and
others in the higher.paid jobs are in
cluded under the ruling.
Pointing out that on January ,,
1925. the Interior Department, which
is charged with administration of the
retirement fund. called for the collec-
ton OF accumulated deductions under
the civil service retirement law, AS.
sistant Secretary Edwards of the de-
partment said that many employees
have not adjusted their accounts, al
though they are eligible for payment
of part of their salary into the retire
ment fund.
Affects Higher SaIaried Range.
ITO a great extent" he said, 1.-THE
EMPLOYEES involved are in the higher
salary ranges and the deductions due
at that time amounted to several hun
bred dollars each.
AS the controller general in a num-
Der of decisions has held that these
uncollected deductions do not bear in
terest. the retirement fund is losing
that benefit, and yet the employe,
whenever he makes payment OF the
principal sum, regardless of the period
Of delay, will have the same annuitable
status as one whose deductions were
taken correctly or as one who prompt
ly paid the back deductions when
called for.
las these items are of long stand.
ing. some of them dating back more
than five years, and as no penalty is
being incurred for delay in payment,
it would appear that some effective
action should be taken to enforce set
tlement.
I'm view of the above conditions,
this department has deemed 1t appro-
a. T. -
the several departments and indie.
pendent establishments the necessity
not only of making proper current de-
auctions from the pay of all employees
who are subject to the operation of
the act, but also the accrued deduc.
lions where they were not timely
taken"
Automatic Deductions Not Made.
Employees on the classified rolls
have no jurisdiction in the matter of
deductions for retirement pay. Under
the retirement law 3h per cent of
their pay Is automatically deducted,
and they have no voice in the mat
ter. But employees, who by reason of
special appointment, either by the
President. the department head or for
any other reason, are not in a classi.
fled status. do not have the auto
matte deductions made from their sal.
airy. They are, however, within the
purview of the retirement law and
may receive the benefits Of the law
by depositing with the Interior De.
partment all the accrued money they
would have paid had 1t been deducted
semi-monthly, as in the case of those
in the classified posts.
Controller General McCarl has ruled
that the employees paying into the
retirement fund the accrued money.
do not have to pay compound inter.
est on the accrual. thus imposing no
penalty for failure to meet the ordi.
nary requirements of retirement pay.