Evening star., 1927-04-03

| III the ClaIo bepdTlIuellI dS a CLFi
service employe, whatever his salary
might have been when he retired. ht
could not receive more than $1,000
under the present law.
1t should be stated that two reports
have been made to Congress on the
operation of the foreign service law
The first, dated April IS, 1926, /:
House Document No. 317. The sec
ond, dated March /, 1927 is House
Document No. I'll. The first repor
is for the fiscal year ended June 80
1925, and the second report for the
fiscal year ended June 80, 1925. The
act directs that these reports be sem
to Congress each year, but il does not
say at what time. In each year, Il
will be noticed that this report die
not reach Congress ~ thA opening
of a session, but near the close of the
session.
Make Good Deficits.
1t is interesting to consider these
two reports in comparison with
similar statements about the civil
service retirement fund, and how Con
gress will have to make good a deficit
in that fund, just as Congress will
have to make good a similar deficit
under the foreign service retirement
fund.
The first report covers the time be-
tween the time when the act went
into effect in May, 1924, and June 80,
1925. 1t shows the amount deducted
from salaries. of foreign service of
ficers, and several other items-$146,-
HOLE. 1t shows the amount paid out
in annuities and refunds-$59, ,S21.36.
1t shows the balance left-$86, ,288.76.
That is 40.9 per cent of the first
years deductions was used in paying
annuities. In that year "a persons
in the foreign service were placed
on the retirement list. The average
annuity which has been paid to these
"a persons was $1,752.48. The maxi
mum was $4,617 and the minimum
was $s21.89. That minimum annuity
was higher than was paid to any per-
son on the civil service retired list
in 1926, regardless of the amount of
salary received when retired.
Showing of Report.
For the fiscal year ended June 80,
1926, this report shows: Amount de-
Quoted from salaries of foreign serv-
ice officers and other items-$106,-
743.25. Disbursement of annuities and
refunds paid-$64, Asp. Balance
500, ,315.13. So we see that 40.2 per
cent of the total deductions were used
in paying annuities that year.
Therefore, the conclusion is drawn
by those who have been making the
comparative study that on the re-
tirement of "a persons in 1924-25, and
two additional in 1925-26, there has
been paid to them from this fund
$124,239.48. That amount of money
does not belong to the Government.
1t is owned by those who have had
deductions taken from their salaries
and placed in their fund. Those peo-
pie who can claim that money are
still on the active list. Therefore, the
Government must return that amount
of money to that fund at some future
time and add to that 4 per cent COM
pound interest for the interval of
time which elapses in which it does
not return it.
The majority of the Government
workers contributing to the retire.
ment fund under the civil service re-
tirement act do not even know about
this foreign service retirement sys-
tenn, but those who do and who have
been making comparisons argue that
as time goes on and as this foreign
service system grows it is going to
cost the Government more per per-
son by at least 20 per cent than will
the annuities under the civil service
retirement law.
Number to Grow.
The average retired pay of the SO
persons in the foreign service in the
two years reported upon was $1,734.38
per year. That is $734 more than the
maxiMum annuity which will be paid
to civil service employe, although
his salary may have been at the time
he was retired, and also his length of
service, the same as the average of
these 36 persons. They may be few
In number now, but the number is
going to grow larger because of the
low retiring age.
Let us next consider another re-
tirement act which covers employees in
the civil service. On June 80, 1918,
there was enacted law to authorize
aids in navigation and other works in
the Lighthouse Service. That act is
in the Statutes at Large. Vol. 40, page
sos. That law is entirely different in
it's provisions from either the foreign
service or the civil service retire
ment acts. The civilians who are re-
tired under the lighthouse law are
deduction from their salaries, which
money is ultimately to be used in
paying each of them a retired pay.
The Government itself pays every
cent of those annuities and has been
appropriating the money to do 1t with
since one year after the law went into
effect. The annuity or retired pay
under that law is computed as fol.
lows: 1t is equal to one-fortieth of
the annual salary for the past FIVE
years multiplied by the years of serv.
ice. That can amount to rs per cent
of the annual salary, but no more. AS
salaries In that service may be as high
as $4,000 per year, 1t is easy to figure
that an annuity of $2,700 may be
drawn. No publication is available
that gives the names of persons and
amounts received who have been put
on the retired list in accordance with
the lighthouse law.
Money Is Appropriated.
In the case of these annuitants, the
Government each year appropriates
the money needed to pay their an.
nuities. In 1923 the Government paid
$50, ,337.33; in 1924, sos ,3163 80; in 1925,
1921, ,674.42 in 1926. $157 .S39 .68-with
$3.50, 900 estimated for 1927 and S225..
900 estimated for 1928, and the records
showing that the estimates have
heretofore always been under the
amount actually appropriated and paid
by the Government. These figures
are found in the budget report for
these years. There has usually been
a deficiency that had to be asked for
and which Congress granted.
1t should be remembered, as pre-
viously stated, that not one dollar OF
that $461. .167.73. actually appropriated
and paid during the years 1923, 1924
1925 and 1925. was contributed by the
civilian employees to whom it has been
paid in the form of a retired pay Oh
annuity. 1t was paid by the Govern
ment from the moneys in the Treas
frxy