Evening star., 1941-06-11
Ramspeck Opposes
Boost in Annuities
For Top Brackets
Fears Retirement Plon
Would Be Burden
On Government
BY ]. A. FOX,


The Reed Committee proposal for
graduating retirement benefits in
accordance with salary rates in or
der to give higher-paid Federal en-
ployes larger annuities when they
retire is opposed by Chairman
Ramspeck of the House Civil Serv-
ice Committee. it was disclosed today
as the committee neared the end of
a hearing on iberalized retirement
legislation.
Citing that under the principal
bill before the committee. the Rams
peck Bill. which would raise the en-
ploye contribution from 3l2 per cent
to ) per cent of salary, an employe
in the $4,000 bracket would receive
an annuity of s2,O96 90 upon reach
ing the mandatory retirement age
of 10, Mr.. Ramspeck said the Gov
ernment would be paying so per
cent of this. and personally, l
don't believe the Government should
pay more, especially in the higher
brackets
The Chairman'S comment was
prompted by the testimony of S. B.
Fracker. representing professional
employees of the Agriculture De-
partment. who said he presented the
viewpoint of about $1,000 employees
Mr.. Fracker proposed that the re-
tirement pay be at least so per cent
of the average salary for five years
for the upper-bracket employees. to
avoid the very serious economic
shock" he said they suffer now when
their income is reduced by retire
ment.
Support in Other Quarters.
This same principle was advanced
by the Reed Committee which some
weeks ago completed a civil service
study for President Roosevelt, and
it has also found support in other
quarters.
Mr.. Fracker said employees m the
$500 group now draw but 80 per
cent of their pay on retirement.
while those in the $500 group get
"A per cent, and in the 50 600 group,
so per cent.
The Government set up a guar
antee for lower-paid employees in
1880, Chairman Ramspeck COM
mented. land that has run up enor-
nous cost" He added that the re-
tirement cost to the Government
now Appropriated 9 per cent of the
pay roll, and I don't see how any
one can justify a larger Federal
contribution.
Mr.. Fracker said the maximum
cost of his proposal would be s70O.-
900 year, and that it would de-
crease.
The only other witness today was
Paul Stone of the C. I. O., United
Federal Workers, who took ex-
ception to all the major provisions
of the bill which previously has
been indorsed by the American
Federation of Government EMPLOYEES
and the National Federation of
Federal Employees.
U. F. w. Views Outlined.
Mr.. Stone said the U. F. w.
favored optional retirement after
80 years service. without regard to
the age of the annuitant, where the
bill establishing a new principle sets
a minimum age limit of 55 to so;
opposed the provision to give the
Government the right to require
inefficient workers to retire, and
also opposed the increase in employe
contributions, saying it would work
a definite hardship on employees
getting from $1,000 to s1500."
Chairman Ramspeck replied that
he considered very helpful the
enforced retirement feature, and
he also emphasized the necessity
of increased employe contributions
to finance the liberalization features.
Mr.. RamSpeck said the only fur
ther testimony to be taken was
from Lewis Fl. Fisher, head of the
Retirement Division of the Civil
Service Commission, who will come
before the committee next week for
discussion Of the actuarial aspects
of the Ramspeck bill and other
measures, including one to grant
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