Evening star., 1928-04-02
RETIREMENT BILL
IS GIVEN TO SENATE
Amendment Raising Maxi
mum Annuity to $1,000 Is
Favorably Reported.

The Senate civil service committee to-
day filed in the Senate its favorable re-
port on the bill to amend the Govern
ment employees retirement law by rails
ing the maximum annuity from $1,000
to 81 200 year and to permit optional
retirement after 30 years of service and
slightly reduce the age limit.
The report was made by Senator Dale,
Republican, Of Vermont chairman Of
the committee. and goes to the Senate
calendar, TO be t.sen UP at later date.
In addition to increasing the an
nuity the bill makes the following
changes as to age limit:
Clerks and other employees who are
permitted under the present law TO re-
tire at the age of 20. after Is years of
service, would be allowed the option Of
retiring at 68. providing they have
served 80 years.
Letter carriers and post Office clerks,
who now are eligible for retirement
retire al 90 II they have served 80
years.
Railway mail clerks and all those
In hazardous positions, who are now
eligible at 50, could have optional re-
| tirement at so. after 80 years Of
service
OFeater neneHtS kfOViueus
The bill, which is understood TO be
more conservative than the measure
being discussed by members OF the
House. also changes the method OF
computing the annuity In order TO
give greater benefits to the lower paid
| employees At present the annuity Is
| arrived at by multiplying the average
pay during the last 10 years OF service.
hxr
of years of service, not TO exceed 80
years. and dividing the product by Is.
This method is intended to produce
an annuity which shall be two-thirds
OF the average pay for the stated
period, not TO exceed. however. the
maximum Of $1,000.
The bill favorably reported today pro-
vides for computing the annuity py
multiplying the average pay during the
| last five years OF service, not to exceed
81, 900, by 80 years and dividing the
| product by 40. This Is intended to pto-
duce an annuity which shall be three
fourths of the average pay for the
stated period. not TO exceed. however.
the maximum Of $1,000.
Although this bill provides maxi
mum annuity OF 81 200. it Is stated that
the average of all retired employees
WVuiA bG ARPANAAhteNSAy $otN
Government Cost Increased.
Senator Dale's report contains the
estimates of the actuary as 70 the ad-
ditional cost TO the Government, but
emphasizes the statement that even
with this additional cost the Govern
ment still would be contributing far
less To the retirement fund than the
employees themselves. On this subject
the report states:
Under the proposed amendments the
increase to the Government is estimated
at seven -tenths of per cent OF the
pay roll, making the comparative pro-
| Il8 per cent by the Government
committee Is unanimously OF the opin-
ion that the bill should pass"
| After pointing out that under the
| present law the Government pays
| forty y-eight one hundredths of one per
| cent on the pay roll toward the normal
costs of retirement. while the employees
| pay 3la per cent. the report explains
how the pending bill would change the
| normal cost as follows:
Reference Is made first to the SO
called deferred liability occasioned by
the retirement of employees who became
beneficiaries at the start OF the present
law and who have or who will retire
before paying into the fund through
the complete period required OF those
who have come into the service since
the law went into operation. That per
annum cost under the present law Is
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