Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-11
BY DONALD A. CRAIG.

BY DONALD A. CRAIG.
Both Senator Porter H. Dale Of Yer
mont and Representative Frederick r.
Lehlbach of New Jersey, chairmen Of the
Senate and House committees on the
Civil Service and sponsors of the Dale
Lehlbach bill to increase the annuities
of retired Government employees, are
hopeful that this measure will be en-
acted into law and signed by President
Hoover before the end of the present
long session of Congress. 1t was passed
by the Senate several days ago and is
now in the House.
'It is a plain. economical business
proposition for the Government and
fair insurance investment for the en-
ployes," said Senator Dale, summing
up a brief explanation Of the measure
in an interview with the writer.
MY experience leads me to believe"
said Representative Lehlbach, that 1t
will receive favorable consideration in
the House"
Senator Dale says the public is apt apt
to get the impression that the bill
means a $1,000 annuity to all retired
Government employees"
THE fact is" continues Senator Dale,
that, out of some 1000 annuitantS now
on the roll, less than one-fourth of
them draw the maximum of $1,000,
about one-fourth draw a half, or less.
of that amount, and the other half fall
between $500 and the maximum, the
average for all being less than $780,"
Senator Dale then went on to ex-
plain that the present bill increases the
maximum annuity from 81 900 to 1900
and the amounts received by other an
nuitants proportionately.
Annuity, Not Pension.
1.-THE public is apt also to get the i'm
preston that the annuity Is pension, a"
continued Senator Dale. "The fact is
that the employees are paying now the
total cost, and if the extremely liberal
estimates of the Government actuaries
are ever reached in deferred liability,
the Government will then pay only
| about one-fourth Of the cost. whereas
the saving by increased efficiency is
estimated at some six times that cost
If 1t ever comeS-so that il was stated
in 1924 by one of the Government ac-
| tuaries that had the total expense been
borne by the Government that year
the saving would even then have been
in excess Of 100000 to the Govern
ment.
When the increased efficiency Of the
| employees in service, because Of height
/ ened interest in their work and antic-
| ipation of the old-age annuity, is con-
| sidered, it cannot in any sense be call
| ed pension and it Is in fact scarcely
| possible to find even an element of
philanthropy in the system-it is a
plain, economical, business proposition
for the Government and a fair insur-
| ance investment for the employees"
After expressing his hope that Con-
gresS will act favorably on the measure
at this session, Representative Lehlbach
| said there were some misconceptions
| about its purpose and the underlying
theory of the retirement system.
The purpose Of the bill, as intro
duced by me and Endorsed by what is
known as the joint conference on re-
| tirement," said Mr.. Lehlbach, lis, first,
| to increase the maximum annuity from
$1,000 to $1,000. carrying with it, of
course, proportionate raises all along
the line. This applies to the annuities
Of those already retired as we'll as those
! who will retire in the future.
The bill also provides for voluntary
| retirement at somewhat earlier ages,
| after 80 years of service, than the ages
now fixed in the law. In the course of
committee elaboration and the perfec-
| ton of the bill before its report, there
may be embodied some other incidental
! provisions, but the purposes above stated
are the major ones sought to be &C
complished by the legislation.
! Cost to Treasury.
"It must be borne in mind that an
| apprectable cost of the retirement sys-
tenn is borne by the Treasury. The
actuaries have figured out what, under
the existing provisions, it will require,
and accordingly for two years appro-
priations have been made of 1880 900
/ annually. OF course, with an increase
of the benefits and their enjoyment at
an earlier age, the cost of the retire
ment system to the Government will be
materially increased, and this increase
must be annually appropriated for.
Should the earlier policy Of simply
borrowing the money for annuities and
Withdrawals from the contributions of
active employees be continued, the habil-
| ity of the Government would be multi
piled to such an extent that the cost
Of the system would be staggering
burden to future generations.
THE contention that because there
exists an appreciate cash balance in
the retirement fund sometimes errone-
ously called a surplus, the system is
not costing the Government anything.
is fallacy that has been time and
again exposed.
"The annuities are computed by a
mathematical calculation, which Is
based upon length of service and
amount of salary, but in making such
computation all salary in excess of
81 500, under the pending bill, will be
disregarded. 1t is obvious that conse-
quently those in the higher ranges Of
salaries will receive benefits proper
tionately less to the amount of their
contributions than those in the lower
ranges of salary"
] At the end of the last fiscal year
June 80, 1929, there were 16,501 annu-
tants on the roll The numbers receiv-
ing various rates of annuities, accord
ing to the commissioner Of pensions,
! were as follows: