Evening star., 1937-12-30
RETIREMENT PLAN
CHANGES SOUGHT.
Senate Civil Service Group
to Hold Hearings on
Liberalization.
By ]. A, O'LEARY.

Proposals to liberalize the Govern
ment employees retirement system will
be one Of the first civil service prob
lens to receive attention at the i'm
pending session of Congress, 1t was
indicated today.
Chairman Bulow of the Senate Civil
Service Committee said he expects
hearings will be held on the subject
at an early date, at which differences
between two separate pending plans
probably will be analyzed and debated.
Robert H. Alcorn. chairman of the
Joint Conference on Retirement OF
Civil Service Employees, pointed out
today that this employe group prefers
the bill sponsored by Senator Nicely,
Democrat, of West Virginia, the main
provision of which would give en-
ployes the option of retiring after 30
years of service at lower age limits
than existing law. A similar measure
was introduced in the House recently
by Representative Jenckes, Democrat
of Indiana.
Another Plan Presented.
The other plan was prepared last
Summer by the Civil Service Com.
mission. It was presented to Chairman
Ramspeck and Bulow Of the House ane
Senate Civil Service Committees, re.
apectively. shortly before adjourn.
ment. There was no opportunity tt
study it at that time and both chair.
men decided to let it 60 over fol
hearings at the approaching regular
session.
Under existing Law automatic retire.
ment occurs at 81, IS or 70 years o
| age, depending on the nature Of tht
employment, and those with 80 year.
of service have the option of retiring
two years earlier than the automati,
age limits namely at 60, So or 6s. Tn
| first two age limits apply to mechanica
| groups. hazardous employment ane
some branches of the postal service
The maximum age limit applies te
departmental employees generally.
The Nicely bill would give employe!
with 80 years of service the option o
retiring at So in the 62-year auto
matte age group, at 60 in the 65-yeal
automatic group and at 81 for thos,
who would retire automatically at 10
Mandatory Retirement.
The Commission plan would provide
for mandatory retirement at the agt
of 70 for all groups, thereby doinf
away with the earlier limits of 81 anc
IS for certain types of work. 1t seek,
| - 1;eh
as follows:
Employees with Is or more years o
service, optional retirement at IS or
q full annuity.
Employees with 80 years Of service
optional retirement at age so, but with
a reduced annuity, based on the pres
ent value of q deferred annuity be.
ginning at IS.
The third feature would enable thu
Government, with the consent Of th'
employees, to retire workers on full
annuity at the age of SIS, after 81
years of service, If it is determined
that, for reasons beyond thei. control
employees are no longer able to per
form their duties satisfactorily.
One sharp difference, however, be-
tween the two pending plans is tina
the Commissions measure would rais'
the employees contribution to the re-
tirement system from 81 to per cen
Of their compensation and abolish th'
present rule under which 81 per month
Is deducted from the employees con-
tribution toward meeting the cost O.
the basic Government annuity. Th'
Neely bill does not change the 31:
per cent rate Of contribution.
It Is probable that early in the ses'
sion detailed cost figures on the alter
native plans will be submitted to thu
| Civil Service Committees.