Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-31

worth what it costs to the Governments
| Let us as best We can, use present con-
| ditionS for concrete illustration. Is
1t worth to the Government $4,000 900
Tor % years to purchase q retirement
system that will cost 1000 600 a year
to perpetuate? OF course, as a matter
or hard, cold economy, that depends
upon what the Government receives in
return. 1t depends upon whether the
| Government can transact its business
| without loss of efficiency that much
cheaper because Of a retirement system.
Did time or discretion permit, one who
observed could narrate the deplorable
conditions in the Government service,
especially in the District of Columbia
10 years and more ago. There needs no
prophet come from the grave to tell us
the economic loss to the Government
| or carrying men and women on the
pay roll until they expire from disability
or age.
But the question of economy has for
| long been the study Of actuarieS. There
! is an expert Government actuary in
| whom I have all confidence. He has
made public statements as to better CON-
ditionS in the Government service be-
cause of the retirement law. His state
ments have been approved by trained
Investigators. 1t Is the concurrent
opinion of such experts that the I'M
proved conditions in Government sarv-
Ice resulting directly from the retire.
nnent law represent conservatively a
cash saving of per centum of the
Government pay roll. None will under
take to prove that estimate to be ex-
treme. On the pay roll Of $500, 900 900
5 per centrum Is $40 100000. That Is
az times as much as the system has
cost In any one year to date.
The committee on appropriations Of
4 the House of Representatives has the
reputation for making estimates Of the
cost Of projects for which II appro.
PIRATES high enough TO save the COM
mittee from just censure. An able
/ member of that committee stated two
years ago that he thought it fair to
1 assume that within the next 80 or 40
years the annuities and refunds may
increase to $40 ,000.0 900 q year. That Is
/ quite probable. but through the inter-
| vening years the pay roll will increase
| propoFtiopally with the charge on the
Government But1f there could be
such condition as that the pay roll were
to remain where 1t is and that no con-
1 tTibCtioTis were to be made by the en-
ployes and that the whole expense OF
/ $40, 600 900 per year were to be borne by
the Government perpetually-even so,
| it would not exceed the economic saving
of 5 per centum of the pay roll.
ice Per Cent Good Economy.
Somebody has warned the country
that the retirement system viii cost
the Government in the next so years
| an aggregate Of six hundred million
dollars. That sounds alarming but
taking the premises and facts on which
that conclusion rests and applying to
them the per centum saving IS eSti.
mated, and it creates resultant saving
4 l.
! penditure Of six hundred million dollars
to save six hundred million dollars is
still hundred per centum measure OF
good economy.
Two years ago the Bureau Of Labor
! Statistics made an inquiry into the
| retirement System. Beyond their intent,
their findings are helpful in their appli-
cation to the question OF economy.
They report in detail upon 10 retire.
ment systems. In two of those the
| employees make all the contributions, III
seven they make none and in others
the contributions are joint. But In the
| application OF each and all through the
broad latitude Of methods Of contribu-
ton economy Is purpose and result.
| In the light Of general information
| and experience, scarcely any person Will
| question that the most liberal retire.
ment system is an economic benefit 10
the Governmela.. 1t Is not assertion,
but the statement of well known facts,
to say that there is not q. civilized
nation in the world, not big insurance
: company or railroad or employer Of
labor, that does not provide retirement
| for its employees as matter Of good,
sound, practical economy.
The question of economy runs directly
| to that OF efficiency. II an eFnploye Is
up to the standard in efficiency, it is, of
course, economy TO keep him in the
service, but the per cent that he falls
below . standard that another could
| maintain is that much loss to the Gov
eminent. For example, If at present
out of eight hundred million dollars
i paid In salaries the Government Is pay.
ing even twelve million dollars to
employees who are only one-third under
standard Of efficiency, that loss to the
! Government Is one-third of twelve mill
| lion dollars, or four million dollars. and
that equals the whole amount of the
| Governments share of the normal cost
OF the system. 1t Is easily made evident
that 1t Is most essential to efficiency
that employees who are incapacitated he
retired.
Policy to Keep Employees In Service.
On the other hand it is good pub
lie policy, as well as efficiency, to keep
employees in the service as long as they
| can keep ND TO standard. To keep the
service up to standard is not humanity
possible It would at first seem that
this might be appropriated by giving
some individual or commission author
ity to remove employees arbitrarily. But
experience has demonstrated the Ills
of such q provision. To allow any of1i-
cial, or group of officials, to select the
employe and AK the time of his re-
tirement IS contrary to the established
theories of the American Government.
Great Britain experimental with that
method for time, but has largely
abandoned 1t.
Some governing rule must, however,
be adopted and unless the matter Is
left discretionary, it must be governed
by the term Of service the age attained,
or the two In some way co-Ordinated.
Under our existing law, all employees
Il who have rendered at least IS years
service, may retire ON annuity based on
the number of years service when they
reach the age of 20 years: provided
! that letter carriers and others In Q
group fixed. may retire at age 65, end
. railway postal clerks and others In Q
, group fxed to cover hazardous occupa.
! ton, may retire at the age of 90. Up 70
the present time employees who have
reached retirement age as fixed by Law
may be continued in the service per-
; petually on two-year periods OF extern
sion on certthcation by q stated ON
| cial with approval OF the Civil SERVES
! Commission. That proysglan however
expires on August 20 Of tn&nE year anc