Evening star., 1939-07-26
Emp|oye Groups
Hit for Loss Of
Bills Benefits
Retirement Measure
Proposals Killed
In Compromise

Loss of virtually all proposed
benefits for Government employees
under the liberalized civil service re-
tlrement bill was blamed today on
certain short-sighted groups Of
Federal employees"
Luther c. Steward, president of
the National Federation of Fed
eral Employees, said these groups
were unwilling to agree to the in
creased contributions from en-
ployes' salaries Notwithstanding the
very substantial increased benefits to
oe granted in return"
The proposed benefits were killed
IN the compromise late yesterday of
House and Senate conferees on the
bill.
Saying the action was "a matter
OF sincere regret" to all interested in
improving the Federal retirement
system, Mr.. Steward added that the
results mean that the campaign of
education OF Federal employees as to
what is their real best interest must
continue with increased vigor."
Insisted on Per Cent.
Charles I. Stengle, president of
the American Federation of Govern
ment Employees. likewise attributed
the failure to the refusal of some
groups Of Government employees to
agree to AZ per cent deduction
from their salaries, as a compromise
between the per cent proposed in
the Nicely bill and the per cent
proposed in the Ramspeck bill. He
pointed out that the groups oppos-
ing a higher deduction insisted
upon the per cent or no bill"
1T is my honest judgment, based
upon close contact with Govern
ment employees" Mr.. Stengle said,
that the general sentiment through
out the service was in favor of pay
ing an increased deduction in order
to obtain the iberalized optional
retirement features in both bills"
The conferees' action means that
the Federal Government will save
approximately $1,500,OO0 which it
would have been called upon to pay
under the proposed liberalized op-
tlonal retirement provisions in re-
ducing the retirement ages. hTe
employees will be saved about $500,000
which they would have had to pay
into increased deductions
The employees lost their greatest
benefit when the conferees elm
mated all reference to discontinued
benefits The liberalized bill car
ried provision that when a worker
was separated from the Govern
ment service after five years of serv-
ice he might allow his contribution
to the annuity fund to remain at 8
per cent interest and subsequently,
buy an annuity when he had reached
the retirement age.
Eliminate Benefits and Charge.
1t was to bear the cost of this
discontinued benefits" feature that
the deductions from the salaries of
employees would have had to have
been raised from 31a per cent, as at
present, to per cent. The conferees
eliminated both the discontinued
benefits and the increased deduc-
tions. The employees, under the bill
agreed upon, now withdraw their
accumulated deductions when sep
arated from the service before
reaching retirement age.
Congress has already appropriated
$86 900, 900 to pay the Federal share
in the civil service retirement svs-
tenn during the current fiscal wear.
A feature which the conferees did
agree to retain in the bill Is for
Joint survivorship." This gives the
employe at the time of his retire
ment two options which allow him
a chance to divide the annuity with
dependents or other main benefici-
aries.
Another feature retained in the
bill permits the employe to pay in
from to 10 per cent in addition to
the 312 per cent deduction. This
would allow total deduction of 1871
per cent of his salary-the extra 10
per cent to draw interest from the
Government at 3 per cent. The
employe on retirement could get
whatever annuity his accumulated
savings in the retirement fund could
purchase.
Allows Year of Disability.
The disability provisions were
changed to allow an employe to re-
main on the Government rolls for
one year instead of 80 days to be put
back to work after recovering from a
disability.
AS agreed upon in conference, the
bill carries no double option The
lberalized bill provided for double
option, both for the employe and the
Government, to choose the time of
retirement, whether 5 or 10 years.
between the optional age of so and
the proposed minimum compulsory
retirement ages of IS and 10.
AS agreed upon by the conferees.
the compulsory retirement ages con-
tinue as at present-62, '65 and 10
years.
Robert H. Alcorn, chairman of the
Joint Conference on Retirement, who
represents employees of navy yards
and arsenals, said the conferees'
agreement is mot what we hoped
for, but not altogether bad break"