Evening star., 1939-07-15
House Adds Benefits,
Votes Bill Improving
Retirement System
Ages Raised, Survivor
Annuities Approved;
Congress Pension Loses

Raising retirement ages, provid-
ing for survivor annuities, and rails
ing the employe contribution from
3D. to 5 per cent. the House late
yesterday passed the Eamspeck bill
to liberalize the pension system for
Government workers. 1t voted down
proposal to bring members of Con-
gress within its scope.
Sponsored by Representative Rams
peck, Democrat, CT Georgia, chair
man of the House Civil Service
Committee, the measure rewrites
that of Senator Nicely, Democrat, of
West Virginia, passed by the Senate
in March. 1t now goes back to the
Senate
The legislation would be effective
January next.
Representative Ramspeck esti-
mated the bill as passed by the
House will cost the Federal Govern
ment not more than half a million
dollars more annually for the re-
tlrement system. Last year $82,-
100000 was appropriated to pay the
Federal Government share in the
retirement system and $50 1000 900
has been appropriated for the pres
ent fiscal year.
The grants are heavy now because
for years the Government financed
the retirement system entirely from
the employees contributions.
Only two minor amendments were
made on the floor, both in the in
terest of fairness to a few employees
A committee amendment offered by
Chairman Ramspeck takes care OF
a small number of employees in So
called hazardous occupations, such
as railway mail and Navy yard work.
ers, who would reach the retire.
ment age of 62 before the date when
the revised law goes into effect.
The bill brings into the retire
ment system all postmasters. The
compulsory retirement ages are set
at IS and 70-after Is years of serv-
ice-instead of 81, 65 and 10. Op-
tlonal retirement is allowed at sc
years after 80 years service or at
62 after IS years service. The
Nicely bill allows retirement at So.
Employees are granted the right
of appeal and hearing before the
Civil Service Commission on pro-
posed retirement for disqualified
ton.
An additional month period
is allowed legislative employees to
exercise the option of participat-
ing in the retirement and disability
fund
Provision is made whereby an
employe can protect his widow or
other dependents by taking option
at the time of retirement for
reduced amount for life with pay
ments continued to duly desig-
mated beneficiary in an equal
amount, or one-half of the amount
received by the employe.
1t prohibits the continuance of
employees in the service beyond the
compulsory age for automatic sep
aration from service except by ex-
ecutlve order and excludes from any
compulsory separation age certain
officers and employees in the legis-
lative and judicial services.
1t also provides that employees
who leave the Government and who
are subsequently employed in in
dustry under Social Security Act
protection will obtain the benefits
afforded by both the Retirement
Act and the Social Security Act
without the expensive, cumbersome
and complicated method of trans
ferring credits between the two
funds.
Questioned on Other Employees.
Representative Voorhis, Democrat,
of California asked what was being
done about bringing under the re-
tlrement system those Government
employees not now included. Mr..
Ramspeck replied that that was the
subject of special study at this time
by Senate and House leaders, and
expressed the opinion that under
this bill the President could do it
by executive order. Only workers
with civic service status are pro-
tected by retirement.
Passage Of the bill was hailed with
great satisfaction" by Luther G.
Steward, president of the National
Federation of Federal Employees, who
SAID he hoped the Senate would act
promptly on the measure.