Evening star., 1942-01-20
Ready Accord
On Retirement
Changes Seen
LiberoIized Bill,
Amended in Senote,
Returned to House
BY J. A. O'LEARY.

ence the changes made by the Sen
ate late yesterday in passing the
liberalized retirement bill for Gov
ernment employees.
Senator Byrd, Democrat. of Vir-
ginia waged losing fight to re-
quire members of Congress to make
back payments covering the period
of their service before taking ad-
vantage of the option this bill gives
them for the first time to enter the
retirement system.
The Virginian was beaten by a
roll call of "a to %, which means
that as the bill now stands mem
bers of the House or Senate who
have reached 81 and have five or
more years of service may retire
without any back salary contribu-
tionS.
There are no major differences
between the two houses over the
main features of the bill. designed
TO give the thousands of civil serv-
ice employees more liberal optional
retirement opportunities, and final
enactment within a few days is
looked for. even if the House sends
It to conference instead Of concur
ing.
Passes, AZ to "a.
The Senate roll call on passage of
the bill was a to "A, but some of
the opposition votes were traceable
to the defeat of the Byrd amend
ment
Here is how the bill affects Gov
ernment employees generally:
Fixes 10 as the uniform age limit
for compulsory retirement, in place
of the present varying age limits OF
81 for mechanical groups, IS for
railway mail clerks and certain other
postal workers, and 10 for depart
mental employees.
Gives employees the option of re-
firing at 60 after 80 years of service
or at 81 after Is years and gives the
Government the option of asking
for the retirement of an employe at
these age limits, subject to hearing
by the Civil Service Commission.
Gives employees the option of re-
firing at SIS after 80 years of service
on a smaller annuity.
Makes it possible for an employe
with special qualifications to be con-
tinued in service after 10 by execu-
tive order, or to be called back into
service by a department head if he
has been automatically retired at
that age. If he is calleds back his
annuity would be resumed when his
services were no longer required.
Changes the formula for comput-
ing annuities to give employees above
the $2,400 salary bracket a retire.
ment benefit more in keeping with
the higher contributions they pay
into the fund.
Praises Workers Percentage.
Increases the employe contribu-
ton from 81 to per cent of salary
to meet part of the added cost of
the more liberal optional feature.
Provides that persons who give up
Government employment after at
least five years of service without
having become eligible for retire.
ment would leave their contribu-
tlons in the fund to be used to pay
them an annuity when they reach
81 instead OF drawing their contri-
buttons out when they leave
This bill provides for a minimum
annuity which will, the Civil Service
Committee reported, provide a
more equitable recognition of long
and faithful service of employees in
the higher-salaries group by the
granting of annuities more nearly
proportionate to their active-service
salaries"
The committee pointed out that
under the present law employees in
salary groups up to $1,000 a year
who have served 80 years are grant
ed annuities equal to IS per cent of
their basic salaries. Employees be-
tween $1,000 and $2,4O0 may receive
up to SO per cent of their salaries.
The percentage rate of annuities to
salaries in the higher grades is as
low as 20 per cent of salary under
present law.
New Formula Devised.
The new formula for computing
the annuity added to. the original
law by the bill provides that it Shall
not be less than an amount equal
to the average annual basic SAL
ary, pay or compensation received
by the employe during any five con-
secutive years of allowable service, at
the option OF the employe, multiplied
by the number of years of service.
not exceeding IS years, and divided
by 10.
These major provisions of the bill
we're overshadowed in the Senate de-
bate yesterday by the sharp con-
f1lct giving members of Congress
the option OF retiring without pay
ment of any back contributions for
past service.
As the bill came from committee.
any elected officer of the Federal
Government-which would take in
Senators, Representatives, Presi-
dent or Vice President-would have
had six months in which to decide
whether to voluntarily enter the re-
tirement system.
Taking an extreme case as an
Illustration. Senator Byrd contend
ed that a Senator or Representative
who was elected in 1907 and who
has reached 81 could retire January
!, 1943, by paying into the fund only
5000, representing per cent of his
salary for the last half of this year,
and receive Salts a year for life
without further payments.
Lfberalized Further.
Before the bill passed, however, it
was amended to give legislative off,
ciak all of the calendar year 1912 in
which to give notice of their inten-
ton to exercise the option of enter
ing the retirement system. Under
this provision lawmaker who wait
ed until near the end of the year to
join and then retired next Janu-
ary would pay in much less than the
5000 used by Senator Byrd in his
argument, depending on when the
notice was given.
A member Of Congress who was