Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-28
DISCUSS INSURANCE
TO BENEFIT
FEDERAL EMPLOYEES
Congress May Be Asked to
Amend War Risk Measure
to Include Civilians.
PROPOSE GOVERNMENT
UNDERWRITE POLICIES
Maj. Erck Will Confer With Chief
Clerks on Suggestions
September 6.

The possibility that Congress may be
! asked to amend the war risk insurance
act so as to bring within its scope the
half million civilian employees of the
Government was discussed today In
connection with proposals that low
premium sick and death benefits be
made available throughout the Gov
eminent service.
The subject of group insurance will
be discussed at the next meeting of the
interdepartmental board on Septem-
Der 6. at which its chairman, Mai
Alfred H. Erck of the chief CO.
ordinators Office will confer with the
II Federal chief clerks who compose
the group.
The board has been asked to con-
slider suggestion that group insurance
be arranged for and administered by
the Government along the lines OF
agreements by which large corporations
obtain sick and death benefits for their
employees. Proposals have been made
that the Government underwrite a
blanket policy and authorize deductions
from the individual salaries as supple
mental to the retirement fund and
administered in the same manner.
Board Asked to Consider Plan.
The interdepartmental board was
asked to consider the subject by a bust
ness organization of Federal employees
in the New York co-ordinator division
and the meeting in September will de-
side, 1t was said today. whether the
suggestion is worth carrying further
with a view to obtaining agreements
among various departments or any legis-
Ia tim fn hn iv1fo
effect
It became known in connection with
discussion of the matter that approx
mately $4,000 Government employees now
have group insurance with private
concern, and one Of the phases the
bSard will consider Is whether the Gov
eminent could furnish group protection
at lower rates. Seven Government de-
partments now are protected by the
concern, according to l.. E. Harris, its
Washington representative. who said to-
day that effective September Is approx
mately 5000 employees in the Agricul-
ture Department would swell the total
to $4,000.
The terms on which this insurance is
made available makes it possible for
each policy holder to obtain protection
in varying amounts, at the fiat rate OF
20 cents per person per month. The
Government departments under con-
tract with the company, he said, are the
Interstate Commerce Commission, Fed
eral Trade Commission. Internal In
terror Department, Veterans Bureau,
Navy Department and, beginning Sep
TENDER IS, the Agriculture Department
With the exception Of the Veterans
Bureau, where the group. Of employees
representing policy holders charges the
actual cost of the insurance, all the
groups charge each policy holder 81
Harris said. and put the extra 30 Genus
in surplus fund for use. should the
rate be increased. Each policy Is Of one
years duration, with renewal privilege,
but is issued with the understanding
that the rate may increase or decrease.
Protection Varies.
Statements that the Government
should be able to furnish sick and death
benefits on the basis of a cost of 10
cents per 81 900 do not take into con-
sideration, it was said, that each policy
holder among the 10000 Government
employees now holding group insurance
does not obtain 81 900 protection. The
protection varies according to age, not
higher than $1,000 and as low as $3.50,
but the premium is 10 cents for each
policyholder per month. The surplus
CTcdJSu IL tIlc PdyuhCAu VA oily
increase that might result.
The thought now being discussed is
that the Government might enter into
agreements with privately owned COM
panies by underwriting a blanket policy,
and administer the payment OF policies
and collection of premiums by deducting
from the individuals salary with his
permission.
1t also has been suggested that the
Government plan and administer the
insurance of its own liability, paying
the cost Of administration out Of public
funds as its contribution to employees.
The possibility of amending the war
risk insurance act has been mentioned
as a means of bringing the administra-
ton of such an activity under the Pen
sion Bureau, thus imposing upon the
Government the cost Of carrying out
the program.
Compulsory Plan Unwise.
J. Boyd Dexter, president Of the En-
ployes' Welfare Association of the Vet
erans' Bureau, expressed the opinion
that it would be unwiSe to make the
taking Of insurance compulsory among
Government employees, but that an ar
rangement might be made whereby de-
partment heads would sanction taking
the premiums from the employees sal
ary in cases where 1t was satisfactory
to the employee.
In the preliminary discussion, In
terest has centered on the proposition
that the Government meet any cost
growing out of administering a group
insurance plan. The opinion has been
expressed that the Government will not
take the position Of being in compete
ton with insurance companies, but that
a program might be worked out whereby
an association of Government depart
ments might accept bids from various
companies, contract with the lowest
bidder, and; by having the Government
assume administration Of the program
through the Pension ONCE, escape all
expense excepting actual payment Of
premiums.
Mai. Erck and members of the inter-
departmental board and other officials
throughout the Government depart
ments have expressed interest in the
subject, but the Office Of Maj. Erck
pointed out that there had been no
committals and that the board would
first pass on the feasibility Of the sug-
gestion. !.