Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-06
NEW RETIREMENT
PLAN GIVEN HOOVER
Proposal Providing for
Greater Benefits Is Ex-
planned by LehIbach.

Chairman Lehlbach of the House
civil service committee in a conference
with President Hoover at the White
House today explained to him a new
plan for a complete revision of the civil
service retirement law which he said
will bring much greater benefits to the
veteran employees than is provided for
in the pending Dale-Lehlbach bill. He
laid before the President estimates Of
cost under the new plan and balanced
against those the benefits to the en-
ployes.
ON his return to the Capitol Repre-
sentative Lehlbach said he would intro
duce this bill Just as soon as it can be
drafted.
In Representative Lehlbach's new
plan the contributions Of the Govern
ment employees towards their annuities
will remain exactly as at present, 31a
per cent of their salaries. The $45, O00,-
600 fund already to the credit of the
employees will remain to their credit
with each employe having an individual
account showing exactly what he has
paid in with interest.
Minimum Would Be $3.50.
Annuitants would receive $50 q year
for each year of service not to exceed
80 years, so that the minimum would
be $3.50, which is 80 times Is, the
lowest length of service on which any
one can get an annuity in the Govern
ment service. There is no maximum
annuity.
In addition to receiving $50 a year
for each year of service the annuitant
would get whatever annuity could be
bought with the amount his savings
account with the Government shows
from his contributions Of Sh per cent
with compound interest. As time goes
on this money to the credit of the in
d1v1dual employees will amount to very
substantial sum, Representative Lehl-
bach emphasized.
In his bill he Incorporates minimums
to cover over the period until these
separate accounts have reached a SUBJ
stantial figure These minimumS are
the provisions of the Dale-Lehlbach
bill, that Is as a salary not to exceed
81 500 multiplied by the number of
years of service not to exceed 80, and
the result divided by 20, so that Gov
eminent employe at salary Of $1,000
or over would get an annuity Of 1900.
This provision is included by Mr..
Lehlbach in order not to limit the en-
ployeS during the next few years to a
maximum of 5000 resulting from pay
ment of $50 year for each year of SER
vice, not to exceed 80.
Fund to Be Established.
There must be established a fund
out of which the $50 year is to be
paid. To build up this fund 81 a month,
or $12 year, is to be taken. out OF the
31A per cent contribution of each Gov
eminent employee. Representative Lehl-
back says it Is estimated that in
this way the employees would pay one
third and the Government would pay
two-thirds OF the cost of this basic an
nuity.
The remainder of the employees con-
tribution after deducting 81 a month
would be treated as heretofore, except
that q separate account viii be set up
for each employe as q saving account
AS heretofore on death or separation
from service without annuity, the en-
ploye or his heirs gets whatever is to
his credit in this savings account. For
example, an employe of $4,000 con-
| tributes SITS a year out of which $l2
is deducted for the fund and $163 is
| placed to his credit in the savings
account. When 1t comes time for him
to retire, assuming he has been in the
! service 80 years, he gets 5000 plus
whatever his accumulation at the rate
of $163 year with compound interest
will buy as an annuity. So that there
,, is no maximum in the Lehlbach plan
and at the same time no one can re-
, ceiVe an annuity less than $3.50 a wear.
Representative Lehlbach will discuss
the new plan thoroughly with the ON
cial representatives of the various en-
ployes' associations. "I expect to put
this bill through" said Representative
Lehlbach. II can't see any possible OBJ
lection to 1t from any source. The
employees will be very substantially
benefited above the provisions of the
Dale-Lehlbach bill"