Evening star., 1927-04-03
STUDY OF RETIREMENT
PROBLEM is NEEDED
Leaders in Congress Anticipate Passage
of Resolution Setting Up Body
To Investigate.
By WILL p. KENNEDY.
EFT us have all of the facts
regarding retirement pay to
worn out Government employees,

regarding retirement pay to
worn out Government employees
IL and on that basis of fact let
us establish for the first time
a business-like retirement fund, al
1owances from which will be equitable
and just to all beneficiarics.
Leaders in Congress expect that the
next session of Congress will pass the
Dale Hudson resolution. or some
modification thereof, providing Tor
a joint commission from the House,
from the Senate and appointed by the
President to make a study OF the
operation of the law concerning the
retirement of civil service employees
and kindred matters, with view to
recommending whatever changes In
the law seem desirable.
Such a study is from all viewpoints
eXtremely desirable: For the Govern
ment, that it may definitely know just
what it's financial obligation is going
Ito be and make regular pay-as-you-go
Representations to meet it; for the In
4dividuaI employe that his contribution
to the fund may be properly proper
toned, that it may be properly pro-
NtActed, and that there may be sub
stantive law which will prevent the
Government at any time it sees fit
from discontinuing the retirement
system.
No Adequate Legislation.
ore of the very grave omissions is
that there is not in existence today
any law which authorizes the Gov
ernment to pay back into the civil
service retirement fund the amount
of money which has already been
paid out in annuities from moneys
actually contributed solely by the
employes themselves. AT the present
time it is simply a ''gentleman's s
agreement" While it is not anticf-
pated that the Government would
repudiate it's moral obligation, leav.
Ting the older employees who have con-
tributed for years in the prospect OF
getting a better retirement allowance
than they could have bought from an
Insurance company, in desperate
situation when they are too old and
physically unfit to pass an insurance
Examination or to buy insurance at
b reasonable figure.
The Government today actually
owes this fund 100000, and that
does not include the compound inter
lest Shat must ultimately be paid upon
1t, nor does it even indicate the mil
Hons upon millions for which the
Government has morally obligated it.
workers now in service, as well as
the other millions who will year after
lyear enter the service.
Now Making Study.
In anticipation that Congress will
% act, it is now being advocated that
the inquiry under the Dale Hudson
RESOLUTION should be hroadened over
the limits defined in the resolution
so as to include the retirement system
which is under the Rodgers foreign
service law, as well as another system
which is in operation in the Light
&House Service. All three of these sys-
TENS, from one point Of view, embrace
within their provisions persons whose
positions have been secured through
civil service examinations in the ma
tjority of cases.
For the past seven years the board
! Of actuaries has made annually an
actuarial study of the civil service re-
'tirement laws operation, and has
drawn conclusions and made recon-
mendations to Congress, some of the
hnore important of which have never
been carried out. The United States
Bureau Of Efficiency is now making
study of the police and firemen's PEN
sions and the school teachers retire
nsent systems in the District of Column
.bia, and is about to undertake an
analytical study Of the operation of
.the retirement system under the
Rodgers foreign service law and in
the Light House Service.
Rodgers Law Plan.
1t is pointed out that the Rodgers
law; (which passed Congress in May.
h924. was for the purpose of reorgan-
izing the consular and diplomatic
service. That is the law that started
Lawrence Dennis, charge d'affairs at
Nicaragua. kicking about what 1T did
Nor him. This law first sets up a re-
classification OF salaries paid those
holding positions in the consular and
diplomatic service up to the grade of
minister or ambassador. The maxi
mum salary in that classification is
te 900 and the minimum is 81 500. The
salary paid does not any longer de-
fpend upon the place to which the
1agent of the Government is assigned,
but depends upon the man holding
the position In another part of the
act ,there has been set up retire
meDt system for persons in the for
'eign service. In preparing that part
of the act, provisions which are IN the
civil service retirement act have been
used as the foundation upon which to
build. and In some instances we find
In 1t expressions which have been
taken in their entirety from the civil
service law.
Another important point seems to
BE- that this foreign service, retire
ment law has a provision in it by
which a minister or ambassador of
this country could be placed on the
Foreign service retired list. In fact,
BINDER certain circumstances an AS
sistant Secretary of State, or even the
Secretary himself, might also be
placed on the same list. Members Of
Congress protest ignorance of such a
provision.
; Per Cent Deduction.
Under the civil service retirement
law the deduction which is made from
the salary of each employe is 3h per
Gent per year. In the foreign service
that deduction is per cent per year
f1n the latter service they retire at 65
I|years Of age and after Is years of
|Eservice. They can be continued be-
|Iyond that age.
The injustice seen by those who
have made comparative study is in
1.-THE amount of retired pay foreign
seervtce officer receives as against that
. osiuSA tHe civil service retirement
sact. The foreign service law says
#that II an employe has had 30 years
OF service TO his credit. he receives
50 per cent of his pay. whatever it
might be. To show how this actually
works out in comparison with the
fcivil service law:
Assume a candidate is appointed
TO the Department of State here in
Washington. after having passed the
usual civil service examination. He
enters upon his duties and 3h per
cent Of his salary is deducted each
year. which is placed in a civil service
retirement fund so that when he re.
tires he viii receive an annuity, part