Evening star., 1939-10-15
RetirementFund
Sliding Scale
Study Urged
BuIow Tells Mitchell
He Is Confident of
Congress Favor
By ]. A. O'LEARY.


The Civil Service Commission was
asked yesterday by Chairman Bu-
low of the Senate Civil Service
Committee to study the feasibility
of fixing the contributions of Gov
ernment employees to the retirement
fund on sliding scale, based on
salary levels, as possible means
of obtaining more liberal age linn
its for optional retirement.
In a letter to Harry B. Mitchell,
president of the commission. Sen
ator Bulow expressed confidence
Congress is willing to lower the
optional age limits if it can be
done without materially increas-
ing the cost to the Government or
the employees"
In the existing law, the employe
contribution is at the uniform rate
Of 81 per cent.
Step in Consideration.
Senator Bulow's letter to the
commission is the first step look
ing toward further consideration of
the subject of more liberal optional
features at the regular session in
January. Summing up the stu
alton, the Senator wrote:
"As you know, at the last session
Of the Congress efforts to reduce
the optional age provisions Of the
civil service retirement law ran
into a snag because of a difference
of opinion, chiefly among repre-
sentatives of employees groups, as to
the amount of deductions that
should be made from the employees
salaries.
THE amended retirement bill, as
1t passed the Senate, provided for a
deduction of 4 per cent, which was
changed in the House to per cent.
The latter amount was strongly op-
posed by representative of certain
organizations on the grounds that a
S per cent deduction would work a
hardship on the lower -salaried peo-
pie in the service who, of course,
make up the large majority of en-
ployes. They also contended that
the provisions of the Senate bill (the
so-called Nicely bilD with its per
cent deduction were as liberal as the
House bill, which called for 5 per
cent deductions, and that the cost
to the Government under the Senate
bill would be no greater.
Strong Disagreement Exists.
II am convinced that both Houses
of Congress are willing to provide
lower optional retirement benefits
if this can be accomplished without
materially increasing the cost to the
Government or the employees. How
ever, with the strong disagreement
existing among the various employees
groups as to the best plan. the Sen.
ate and House conferees, in an effort
to save other desirable features in
the bill, struck out all reference to
optional retirement. 1t was agreed
at the time to give the matter fur
ther study.
With that thought in mind I am
writing you and the representatives
of the various employe groups for
suggestions and comments as to how
this proposal might be accomplished.
"One proposal which has been
made to me and which has met
with considerable favorable COM
ment from employees with whom I
have talked would provide for grad
uated" deductions based on salary.
For example 312 per cent deductions
on salaries up to S1,500, 4 per cent
from $500 to $4,000, Az per cent
from $4,000 to $500 and above
s2,500 per year per cent.
These suggested divisions are, of
| course, subject to change, and I have
merely presented them here to give
you some idea of the proposition
AS understand it, this proposal
would be to make deductions some
what on the basis of salary. Under
it the lower -salaried groups would
not be expected to make a con-
tribution which would work hard
ship on them while those making
more money would make contribu-
tions somewhat commensurate with
their higher salaries. The whole idea
is based on ability to pay and does
not OF course work to the disad-
vantage of any one, since each per-
son at retirement gets back all his
contributions, with interest COM
pounded annually.
Il appreciate that it may be q
difficult if not impossible task to
draft an amendment to the retire.
ment law providing for any mate
rial reductions in optional age
provisions without also greatly in
creasing the cost of retirement to
either or both the Government and
the employe."
Proposals Welcomed.
Senator Bulow invited the COM
mission to submit any proposals it
may have in mind on the subject,
however, for further study.
Robert H. Alcorn, chairman of the
joint conference on retirement of
civil service employees, said last
night:
II am very glad to know that
Senator Bulow is making this sug-
gestion, and while the conference
has not had chance to pass on the
subject, my thought is that it may
help in finding a way to meet the
question of increased contributions,
to take care of added cost In con-
nection with proposed changes In
the retirement law.
Il know that Senator Bulow is
willing to help to advance this
thought or any other thought that
will open the way for a better re-
tirement- law, This Is also true
with Senator Nicely and Represen-
tative Ramspeck."
Chairman Ramspeck of the House
Civil Service Committee and Sena-
tor Nicely, Democrat, of West, Wiz.
ginia sponsored the two plans con-
sidered in the last session foY
liberalizing the optional age limits,
and Mr.. Alcorn said he believed they
will do their best to help bring
about the desired results in the
session which meets in January"
Mr.. Alcorn said the subject will be