Evening star., 1939-07-30
Retirement Plan
Geared 10 Pay
Is Proposed
House Approves
Conference Report;
Senate to Act
BY J. A. O'LEARY.

A new plan under which the con-
tributions of Government employees
to the civil service retirement sys-
tenn would be graduated according
to salary level was proposed yester-
day by Chairman Bulow of the SEN
ate Civil Service Committee for
study during the recess, as a pos
sible basis for working out more
liberal optional age limits at the
next session of Congress.
Meanwhile, the Senate is expected
to take final action tomorrow on
the pending bill, making several
on-controversial improvements in
the retirement law, but with all
provisions to liberalize the optional
age limits eliminated. The House
ratified the conference agreement
on these limited changes yesterday,
and Senate approval tomorrow
would send the bill to the White
House.
Conferees Fail to Agree.
The more liberal optional retire
ment age limits were dropped after
conferees found themselves unable
to agree on the extent to which the
rate OF employe contribution should
be increased to help cover the added
cost. AS result, under the bill
about to be passed, the employe con-
trlbution remains unchanged at 31a
per cent OF salary, and present age
limits are unchanged, both for OPP
tional and automatic retirement.
The original Senate bill proposed
to raise the employe contribution to
4 per cent of salary, while the
House bill sought to make it per
cent, with each branch advocating
different optional age limits
1t was this dispute over the fiat
rate of contribution that caused
Senator Bulow to advance the sug-
gestion last night that study be
given to graduated scale of rates
when the question is reopened in
the next session.
Not Committed to Idea.
The South Dakota Senator en-
phasized he is not committed to the
idea, pointing out he has not had
time to find out from the actuaries
whether sliding scale could be
worked out on a practical basis.
1T might even be found possible,
the Senator said, to reduce the
present 3l2 per cent contribution
for employees in the lowest salary
brackets and have the rate advance
gradually in proportion to salary.
The limited bill approved by the
House yesterday, and which the
Senate is expected to accept to-
morrow, makes the following four
changes in existing law:
Gives employees the option of
adopting joint survivorship plan,
under which the retired worker
would receive lower annuity while
he lives in order that the benefit
payment would continue to his
widow or other beneficiary.
Extends the retirement system to
approximately $4,000 postmasters of
the first, second, third and fourth
classes, all of whom are now under
civil service.
Additional Annuities Possible.
Provides that an employe may
purchase an additional annunity in
multiples of $25 by voluntarily in
creasing his contribution above the
3l2 per cent fiat rate, but not to
exceed 10 per cent of his salary.
Provides that when an employe
who was retired for disability, re-
covers, he could be carried on the
retirement roll for one year, while
seeking unemployment, instead of
the 90-day limit in existing law.
These changes would take effect
January l, 1910. The conference
agreement will be called up in the
Senate by Senator Nicely, Democrat,
of West Virginia, co-author of
the legislation, with Representative
Ramspeck, Democrat, of Georgia
sponsoring it in the House.
Age limits under the present law,
which are not changed by the pend
ing bill, are:
Office workers generally-Auto-
matte retirement at 10, with the
option of retiring at 68 after the
required length of service.
Letter carriers, post Office clerks,
master mechanics and printers
Automatic at IS, optional at 50.
Navy Yard employees, railway mail
clerks and employees in the tropics
Automatic at 81, optional at 80.
The provisions dropped by the
eonferees would have 1Ouered thece