Evening star., 1938-01-19
LETTER CARRIERS
BACK CHANGE IN
RET|REMENTLAW
Head of National Body Tells
Senate Group Nicely Bill
Is Second Choice.
ASSOCIATION OPPOSES
7 RAMSPECK MEASURE
Civil Service Commission Asks
More Time to Study Cost
Figures.
By ]. A. O'LEARY.

"S Ss AA' " AAAASAs
d The option of retiring voluntarily
after 80 years of service without re-
gard to age was Endorsed by the Ma
tional Association of Letter Carriers,
through its president. Edward j.
Gainor as Senate subcommittee be-
gan hearings today on proposed
changes in the civil service retirement
law.
If the objection of added cost is
such as to prevent enactment OF that
plan, Mr.. Gainor said his organiza-
tion's next choice would be the Neely
bill, which would allow optional re-
tirement after 30 years at 81. 60 or
So, according to the nature of the en-
ployment.
FL Existing law grants the option of re-
firing at 68, 63 and so for the three
age groups into which all Federal
workers are divided. For each group
these present optional limits are two
; years earlier than the age limits for
compulsory retirement.
3, Against Ramspeck Bill.
Mr.. Gainor went on record against
the Bulow-R -Ramspeck bill, which, he
said, embodies provisions for which
there has been no demand. He said it
is not an amendment, but an entirely
new proposed law.
Although several other witnesses
testified today, most of the employe
organizations and the Civil Service
Commission itself asked for more
time to study the latest cost figures
for several pending plans, which did
not become available until Sunday, in
the annual report OF the Board OF
Actuaries
Louis H. Fisher chief of the Service
Record and Retirement Division of
the Civil Service Commission, said that
while the commissioners are not ready
to make recommendations on pending
legislation until they study the actu-
arial cost report, he pointed out they
have in the past recommended retire.
ment at 60 after 80 years service at
the option of either the employe or
the Government and at 81 after IS
years service.
He said that last year the commits
slpn had committee study the prob
lem of liberalizing the retirement law
and presented q bill which it thought
would meet budget requirements. The
bill which Senator Bulow and Rep
resentative Ranspeck introduced last
August has been regarded as embody-
ing suggestions of the commission at
that time.
= Cost Figures Presented.
Russell Reagh. a member of the
Board of Actuaries, gave the cost fig
ures, as published Sunday, for the
Nicely bill, the Ramspeck- -Bulow meas
ure and two alternate plans.
The proposal in one of the bills that
the Government be permitted to retire
employees at 55, when, through no
fault Of their own, they are no longer
able to perform their work efficiently,
was opposed by Mr.. Reagh. who as
serted 1t could not be administered
without excessive cost to the Govern
ment.
He also testified tina: the increase
from 312 to S per cent in the rate of
employees contribution, called for in
one or two of the bills, would not af-
feet the retirement cost to the Gov
ernment, because the employe would
Get interest on the full amount of his
contribution. At present 81 per month
Is taken from the employees own ac-
count as a tontine charge to help meet
the cost Of the basic 5000 Government
annuity. The retired employe receives
the basic 5000 annuity. plus whatever
annuity his own contributions entitle
him to. The proposal to make the
contribution 5 per cent of salary is
conditioned upon doing away with the
81 tontine deduction.
Contribution Not Increased.
The Nicely bill does not raise the
present employe contribution of 3lla
per cent.
Estimating that only one-third of
those who would have the opportunity
to do 50 would retire earlier than IS,
Mr.. Reagh said that if the Govern
ment Is going to invest about S.
900, 900 more in the retirement plan.
he would rather see the benefit spread
over . larger number by raising the
basis of figuring the pension instead
Of lowering the age limit below 65.
He suggested, for example, that the
length Of service record for computing
annuities could be made 33K instead
OF 80 years. which would make the
Governments basic annuity $1,000
instead Of 5000. The Neely bill would
cost about $7,3o0.o0 more than the
present law.
!. Robert H. Alcorn, chairman of the
Joint conference on retirement of civil
service employees, questioned Mr.. Fish
or and Mr.. Reagh ON details of the
various plans and will present various
witnesses in favor Of . more liberal
law when hearings are resumed in q
week or 10 days.