Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-31
URGES LIBERAL
Retirement LAW
Senator Dale Explains Rea-
sons in National Radio Forum
Address Last Night.
Continued From First Page)


men and women on the pay roll after
their health had failed, he said, anc
their efficiency had been consequently
impaired.
aAny man or woman who has come
down through long years of service tc
the Government has a well earned right
to consideration" he said. ITO concede
that right is not charity, but Justice"
Senator Dale'S address, in full, fol-
lows:
Associates in the Civil Service and La
dies and Gentlemen of the Public We
Try to Serve: Every enlightened citizen
takes interest in the welfare of the Gov
eminent. He would have his Govern
nent in all respects that Of which he
could be proud. He would have his GOV
eminent administer its affairs humanely
efdciently and economically. No Gov
eminent can at this time be humane
efacient or economical without q well
regulated system of retirement Of its
employees Therefore, all enlightened
citizens Of the Republic are interested in
retirement legislation. All such legis-
1ation, however. Is of comparatively re-
cent date. All the civilized nations OF
the world adopted or extended theiE
ayStem following the World War.
Our own country has had q retire.
ment system in operation for nine COM
plete years. Chiefly because of good
conditions in the service, as compared
with other countries, and for the reason
that employees were not dismissed when
they had become incapacitated, our Con-
gress did not enact this legislation until
AL other civilized governments had
adopted 1t.
Approves Employees Contribution.
Under existing law, the employees con-
tribute seven-eights of the normal cost
OF the retirement system. Largely
because 1t keeps the employe on q
plane of self respect and retains to
him the unqualified right to his an
nuities. I approve generous contrihu-
ton from the employe toward the
operation Of the system.
one phase OF our system Is excellent.
It is provided that all the contribu-
lions paid by the employees into the
retirement fund shall be refunded to
the employees, or their heirs, with 4
Per cent interest compounded. II the
service of an empl0ye terminates be-
fore he reaches retirement age, the full
amount that he has paid into the fund.
with per cent interest compounded
Is paid back to him or to his heirs. If
he reaches retirement age, he may
elect to take all he has spaid In, with
interest, in one adjustment. or to take
an assured annuity during his life time.
II he accepts the latter and he does not
survive long enough to use up IN an
nuities all that he has contributed to
the fund, with interest. the unused ball
ance Is paid TO his heirs.
That part Of the retirement law is
clear and simple. All the employe
pays in is paid back with interest
Government Guarantees Fund.
As to those refunds. there is no la
hility. real or assumed, on the part of
the Government save this: The Gov
eTnnent guarantees the fund with in
terest at per cent which it can do
to ifs advantage, as it can employ the
funds at a higher rate Of interest than
II pays. Under that phase Of the law
all the employees who do not reach re-
tirqn1ent age, all who do reach the ace
and select a refund Of what they have
paid in, and all who become annuitaflts
and do not survive long enough to use
Up what they paid in with interest-all
those groups do not cost the Govern
ment dollar.
It is natural to ask. For what is the
Government liable2 There Is an as
sunaed liability on the part Of the Gov
eminent to pay annuitants the amount
OF their annuity beyond the amount
with interest which the annuitant paii
OF the Government. That is, II annuity
Is paid $1,000 annuitant two years, It
win amount to $4,000: If the annuitant
had paid in with interest $1,000, the
cost to the Government would be the
difference between what the annuitant
bad paid into the fund and the amount
ne took out In annuity, which IN that
case would be $500.
That is the nature &c the liability
he nV4l-.
liability became q CHI ge on the Cow
eminent the day the initial retirement
bill became effective, more than nine
years ago. As to the annuities that have
been paid to this date: First, the an
nutties paid to the large number of
employees who were at once retired,
nine years ago, for disability or age,
and all Of whom had paid nothing into
the fund, have been wholly paid by the
Government. All who have since then
retired Tor disability or age have also
been paid by the Government all that
they have drawn over the amount that
they had paid in during the part of the
nine years before they were retired.
There were about $500 annuitants ON
the list at the close Of the first year.
AT the close Of the eighth year since
then, or June 80, 1929, of all who had
gone on the list during the nine years
about $500 were living. It is estimated
that the list viii increase until the
number carried perpetually will be APP
proNmately 10000 When that conttii-
uing number has been reached, each of
the annuitants will have paid into the
1und through the years on which his
annuity Is based, and the operation of
She system will have become normal.
Employees Pay Seven Eighths.
It is estimated that the normal op-
Grafton Of the existing law could be
perpetuated by joint contributions from
the employees Of 3lz per centum Of their
salaries, and from the Government Of
an amount slightly less than y of l
per centum of the total Of the salaries
of the employees. Those are the per-
centages they are each paying at the
present time. On the present salary
roll of $500, 000. 900, those contributions
for the normal cost would amount TO
$4,000, 600 for the employees and to
$4,000. 900 for the Government. That
Is what they each paid last year. That
Is. Of the normal cost of the operation
of the retirement system, the employees
pay seven-eighths and the Government
pays one-eighth.
But the cost of putting the system
into normal operation is the larger ex-
penditure which the Government has
assumed. And that expenditure 1t will
sustain until that cost Is liquidated.
That expenditure is for the annuities
over and above what the employees pay
I'm until the time of the normal opera
ton.
Congress did not appropriate money
20 pay that cost as it accrued during
the first eight years of the operation OF
the law. It is now estimated that To
Gay that accrued liability, and all thai
viii accrue until 1t is all liquidated, viii
require an appropriation each year Of
an amount equal TO 2 per centum oil
@laa eotaI nav roll To disrhar~A thai