Evening star., 1938-04-26
RETIREMENT BILL
PUT ON CALENDAR
Senate Measure Libera|izes
Civil Service Law in
Several Particulars.
BY ]. A. OLEARY.

Seven important changes in the
Government employees retirement law,
including the option Of retiring at
earlier age limits, were placed on the
Senate calendar today with favorable
report from the Civil Service Com
mittee. Efforts will be made to obtain
action on the measure before this
Congress adjourns.
Although based primarily on the
Nicely bill to liberalize the optional age
limits, the committee report recon-
mends certain features of other pro-
posed retirement bills. Two OF these
added features would enable employees
to increase voluntarily their contribu-
tions, to buy larger annuity, and
also to adopt joint nt-survivorship plan,
so that their widows would continue
to receive an annuity.
As outlined by the committee re-
port, filed by Senator Nicely. Democrat.
OF West Virginia, the seven changes
IN existing law are:
!. Allow employees who have served
for 80 years the option of retiring at
81, so or So, depending upon which age
group is applied to their position. At
present the optional ages are So, So
and go, which. in each case is two
years earlier than the ages for auto
matte retirement, namely, 10, IS
and 81.
Extensions Provided.
2. Provides for three one-year ex-
tensions beyond the retirement age
when desired by the employe and ap-
proved by the Civil Service Commits
sion. 1t also allows the President, by
Executive order, to grant further one
year extensions when. in his judgment,
the public service requires the con-
tinued services of an employe with
expert knowledge.
3. Broadens the present law to per-
NIT the employe to select one of two
joint survivorship annuity plans, also
referred to as widows annuity
plan"
4. Provides that employees who are
retired for disability would be kept
on the retirement rolls for IL months
after complete recovery and while
they are endeavoring to get reinstated
in the service, instead of 80 days
under present law.
5. Increases the employe contribu-
ton to the fund from 3la per cent
to 4 per cent of basic salary. The
Board of Actuaries estimates this y
per cent increase will result in an
annual saving to the Government of
s508,0o0, the committee reported.
Up to 10 Per Cent of Salary.
6. Adds provision to the existing
law permitting employees to increase
their contributions to the fund by
multiples of l per cent, but not to
exceed 10 per cent of their salary,
in order to purchase larger annuities,
and these deposits would draw per
cent interest compounded annually.
Z. Changes the existing law for re-
funding salary deductions when en-
ployes leave the service. If separated
involuntarily, the employe would get
back all deductions with interest COM
pounded annually at 4 per cent.
If an employe resigns voluntarily
or is removed for cause, he would get
back deductions prior to July /, 1888,
with 4 per cent interest, while deduc-
tons after that date would be re-
turned with 3 per cent. At present
4 per cent is paid on all refunds at
separation from the service.
The committee stated that the Civil
Service Commission favors all of the
bill except Section l, which is al
most unanimously supported by the
various employe organizations"