Evening star., 1940-05-09
Ramspeck Sees U. 5.
Workers Retirement
Plan as Jeopardized
Urges 5 Pct. Payments
To Meet Crisis
Focing System

Declaring that the civil service re-
tirement law faces 4 serious crisis
and warning that Z move later may
be made in Congress to merge it
with the system Of old age benefits
under the Social Security Act, Rep
resentative Ramspeck, chairman OF
the House Civil Service Committee,
at meeting Of retirement groups at
tho Interior Department last night,
recommended an increase from az
to S per cent in the contribution by
Federal workers to the retirement
annuities II they are to get addi-
tional benefits.
Repeating that he favors the bill
which calls for optional retirement
at age 60 after 80 years service and
mandatory retirement at 10, Mr..
Ramspeck said that this would cost
the Government $6,S00, 900 more an
nually than is now being expended
for retirement payments, and that
1t was the most inexpensive Of the
several proposals that have been In.
troduced. He expressed the belief
that this legislation, with provision
for increasing the employee payment
to 5 per cent OF their salary, was the
only sort that had Z chance to ret
by at this session Of Congress.
Approximately 10000 900 men and
women are now covered by the old
age benefits of the Social Security
Act, Mr.. Ramspeck pointed out.
They contribute, through deductions
In their pay, so per cent Of the funds
that are being accumulated under
the Social Security Act for their old
age retirement allowances. Gov
ernment employees are contributing
far less, In proportion, to the Federal
retirement fund. The present Fed
eral retirement system. Mr.. RAM
speck declared, is actuarily unsound.
In an election year it would be dim
cult for members Of Congress to de-
fend the system, he said.
Would Check Attack.
IF we don't put ourselves in q
position where We can face our
critics by showing that We are trying
to make the system actuarilly sound,
we will be all the weaker when the
crisis actually comes" the commit
tee chairman warned. 1T Is impor-
tant that we do whatever We can to
prevent the possibility Of 4 move to
end the present Federal retirement
system and merge 1t with the social
security benefits"
The maximum retirement pay
ments under the Social Security Act
are $S5 a month, he pointed out.
Retirement payments for Federal
workers start at 500 q month.
Abolition Of the retirement system,
he said, would be = great loss to
civil service employees.
Leaders OF organizations Of Fed.
eral workers, Mr.. Ramspeck de-
clared, should lay the real facts
about the retirement situation be.
fore their members. 1T Is my duty
to lay the facts before you rs zee
them," he said.
Despite the wide interest In re-
tirement, few Government employees
and few members Of Congress have
taken the trouble to acquaint them.
selves with the technical aspects Of
the subject. Mr.. Ramspeck asserted.
Seem Unfair to Taxpayer.
This year marks the 20th anniver.
sary OF the passage by Congress Of
the Retirement Act. In 1870 Con.
gress changed the system ana since
then the Federal Government has
undertaken to pay $50 for every year
of service. The present system, be.
sides being unsound from the actu.
arial viewpoint, is unfair to the tax
payers, he said.
Last nights meeting was attended
by about 100 members Of the Joint
Conference, the Retirement Fedora.
ton and other groups. Robert H.
Alcorn presided and introduced Mr..
Ramspeck.